The Directorate General of Hydrocarbons has written to the Steel Ministry seeking land from SAIL’s Durgapur Steel Plant (DSP) in West Bengal, “on a short-term basis” so that a private company, Essar Oil and Gas, can carry out exploration activities for coal-bed methane gas (CBM). The Directorate General of Hydrocarbons is under the Union Ministry of Petroleum & Natural Gas.
A land parcel of 50 meters by 50 meters has been sought; and three possible options have been identified in and around Raghunathpur village in Raniganj in West Bengal.
As per the letter by the Directorate, Essar has sought the land for drilling a core well, which belongs to SAIL. The land will be taken on short-term lease for a six-month period on “payment of applicable charges”.
A copy of the letter, from Additional Director General of Directorate of Hydrocarbons states that Essar Oil has dug 370-odd wells for exploration of CBM in one of their allotted blocks, RG (East) - CBM 200/1, “and has planned few exploratory core wells based on referentially positive geological studies for initial assessment.”
“Based on the studies, Essar has identified one such well location that falls within SAIL (DSP) land acreage. Drilling of core holes will enable Essar to determine the available reserves and techno-commercial viability,” the Directorate mentioned in its letter.
The letter has also sought intervention of the Ministry to ensure availability and also expedite the land handover process.
Reportedly, Essar Oil too has written to the local office of SAIL seeking possession of the land. The matter is under discussion since December 2022, Ministry officials aware of it said.
In a separate letter, Essar Oil pointed out it has been granted a Petroleum Mining Lease by the West Bengal State government; and it executed a long-term gas sales and purchase agreement with GAIL. It is also connected with the national gas grid through the Urja Ganga Pipeline.
The company is also a supplier of CBM gas to ASP unit of SAIL (through GAIL). It is planning to drill another 200 wells in its existing operating area, in the next 2 years. “A significant portion of the allotted block area is yet to be explored, which could have CBM potential in the deeper section.
