RIL to begin CBM gas production in 2015-16.

Reliance Industries Ltd. (RIL) plans to start production of natural gas from coal seams, called coal-bed methane (CBM), in Madhya Pradesh from 2015-16.

In a presentation to analysts post Q3 earnings announcement, RIL said the first gas from its Sohagpur CBM blocks in Madhya Pradesh is 'targeted by FY16.'

It plans to produce 3.5 million standard cubic meters per day of gas from the two Sohagpur blocks.

RIL holds 3 CBM blocks - Sohagpur (East) and Sohagpur (West) in Madhya Pradesh and Sonhat in Chattisgarh. RIL has drilled over 40 crore holes on the 500 square kilometre Sohagpur West and 495 sq km Sohagpur East blocks and tested for gas content.

The process for acquiring land for well sites, market assessment & infrastructure for evacuation and transportation of gas has commenced.

'Phase-1 development envisages drilling and completion of 229 wells and installation of 2 gas gathering stations (GGS),' RIL said in the presentation, adding that land acquisition and engineering for surface facilities of the Phase-1 project was in progress.

BS