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RIL Plans Development of CBM Block in Madhya Pradesh

Reliance Industries (RIL) is preparing to develop its Sohagpur East coal bed methane (CBM) block in Madhya Pradesh to strengthen its natural gas production portfolio.

The company has earmarked an initial investment of Rs 300-400 crore for the test phase, which will help establish the commercial viability of the eastern block before any large-scale development. RIL holds two CBM concessions in Sohagpur—Sohagpur West and Sohagpur East—covering nearly 1,000 sq km in total, with each block spanning around 500 sq km.

The company has so far focused on the Sohagpur West block, which is considered geologically more productive and is already delivering steady gas output. Coal bed methane is natural gas trapped in coal seams and is extracted through drilling wells. It is widely used as compressed natural gas (CNG) for domestic, transport and industrial applications.

With development of the western asset largely complete, RIL is now shifting attention to the eastern concession to strengthen its gas portfolio.

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