Essar Oil has inked a pact with K K Bangur - controlled Graphite India (GIL) for the supply of 55,000 scmd (standard cubic metre a day) of coal-bed methane (CBM), latest by the fourth quarter of 2011. Gas will be supplied from Essar's CBM block near the industrial city of Durgapur in West Bengal. The Durgapur facility is the largest as well as the oldest of the GIL facilities in India (three) and abroad (one in Germany).
Essar for this has also recently approached the Petroleum and Natural Gas Regulatory Board (PNGRB) to build a 3-km dedicated pipeline connecting the graphite facility in Durgapur. The proposal is reportedly approved by the regulator.
Based on an expression of interest (EoI) submitted by Essar, PNGRB recently invited bids for laying a trunk pipeline from Asansol to Howrah (approximately 200 km) in the State. If implemented, it will be the first common carrier pipeline in the State as well as the Eastern region paving way for monetization of CBM assets in the coal bearing areas of Bengal and Jharkhand.
Essar produces coal-bed methane from 38 production wells. The company further hopes that the production is likely to reach between 40,000 and 60,000 scmd by end of March and would be ramped up to 80,000 - 1,00,000 scmd by July-September.
Essar Oil (EOL) offers a spectrum of products to bulk customers in the industrial and transport sectors. It supplies aviation turbine fuel to Indian Armed Forces. It the first private company in India to enter into petro-retailing sector through franchisee model.
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