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Pipeline Commissioning Helps Essar Deliver Coal Gas To Fertiliser Plant

The company had last year reached a peak production capacity of 1.2 million standard cubic meters per day in the Raniganj asset.

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The commissioning of the Dhobi-Durgapur gas pipeline has helped Essar deliver gas it produces from coal seams to Durgapur fertiliser plant in West Bengal via GAIL, helping meet the urea requirement of the state.

The company said the pipeline will help evacuate gas from its Raniganj coal-bed methane (CBM) block to the Matix fertilizer plant at Durgapur.

Prime Minister Narendra Modi on Sunday inaugurated 348-km Dobhi-Durgapur natural gas pipeline built by GAIL.

Prashant Ruia, Director, Essar Capital, said, 'As Honourable Prime Minister Narendra Modi ji dedicates the Dhobi-Durgapur natural gas pipeline, a vision achieves reality. With investments of Rs 5,000 crore made towards our Raniganj block, it's an honour for Essar to be part of this vision of providing clean energy to India.' He went on to complement the government of West Bengal for its sustained development work over the years and taking strong steps to help the state transition to clean energy.

'With the commissioning of the Dhobi-Durgapur natural gas pipeline, gas from EOGEPL's Raniganj block will be made available to Matix by GAIL India, thereby helping the people of the region with the availability of best-in-class fertiliser,' he added.

EOGEPL stands for Essar Oil and Gas E&P Limited.

The company operates the Raniganj East Coal Bed Methane (CBM) Block in West Bengal. In August 2018, EOGEPL had signed a Gas Sale and Purchase Agreement (GSPA) to sell gas produced from the block to state-owned gas utility GAIL (India) Ltd for a 15-year period.

The company had last year reached a peak production capacity of 1.2 million standard cubic meters per day in the Raniganj asset. However, due to lack of a sustained gas market, it had to restrict the production.

Now with commissioning of the GAIL pipeline, the company is looking at ramping up the production to 1.6 mmscmd from the existing wells.

The company has plans to start the balance drilling and associated development task of around 250 additional wells as part of an expansion plan to achieve the sales volume of 2.6 mmscmd, according to information on its website.

B C Tripathi, Operating Partner, Essar Capital, described the event as a 'watershed moment' for the people of eastern India who will now get access to clean and green fuel.

'Essar will be one of the proud suppliers of gas via the Urja Ganga pipeline, and are confident that it will change the very economic landscape of the eastern region and bring in prosperity and growth in line with the government's Purvodaya initiative,' he said.

Santosh Chandra, CEO, EOGEPL, said the company is one of the primary partners of GAIL in eastern India for gas supply to the ambitious Urja Ganga pipeline, which was just inaugurated by the Prime Minister.

'I am confident that our PM's vision of making India a gas-based economy, together with Atmanirbhar Bharat, is on the right track, and we will contribute more and more of the indigenous gas to make clean energy transition happen through production of our coal bed methane gas,' he said.