Essar $100 Million Investment in Raniganj, West Bengal

Essar Oil and Gas Exploration & Production Ltd (EOGEPL), the upstream arm of the Essar Group, is set to make a fresh investment of around $100 million at its Raniganj East coal bed methane (CBM) block in West Bengal, marking the next phase of development at one of India’s most significant onshore gas assets.

Raniganj East is currently the largest CBM-producing block in the country, with natural gas production of about 1 million standard cubic metres per day (MMSCMD). Over the years, EOGEPL has invested more than ₹6,000 crore in developing the block, which includes drilling 454 wells and creating an extensive pipeline network of over 350 kilometres. In addition, the company has spent nearly ₹600 crore in recent years to drill around 100 new wells, all of which are now operational.

The block is estimated to hold nearly 4 trillion cubic feet (TCF) of in-place CBM resources. With existing surface facilities capable of handling around 3 MMSCMD of gas, the infrastructure already in place offers substantial headroom for scaling up production. The upcoming drilling programme is expected to focus not only on incremental CBM wells but also on pilot projects for horizontal CBM drilling, a technique increasingly used worldwide to unlock additional reserves and stabilise production over the long term.

EOGEPL is also evaluating the shale gas potential within the Raniganj block, which could further enhance the region’s contribution to India’s energy mix. According to the company, a combination of advanced drilling techniques, improved recovery methods and possible shale development could help increase production to around 5 MMSCMD by 2028.

The renewed investment underscores Raniganj’s growing importance as an energy hub and reinforces West Bengal’s role in supporting India’s energy security, industrial development and cleaner fuel transition. As large-scale infrastructure and technology-driven exploration continue in the region, Raniganj remains a key example of how eastern India is emerging as a critical player in the country’s energy landscape.