India initiated the auction of three coal bed methane (CBM) blocks and 55 small discovered oil and gas fields, aiming to enhance domestic energy production and reduce reliance on imports. The announcement was made during a major energy sector event held in New Delhi.
Strategic Locations for CBM Development
The three CBM blocks are strategically located in regions rich in coal reserves: two in West Bengal and one in Gujarat. India holds an estimated 2,600 billion cubic meters of CBM reserves, presenting a significant opportunity to tap into this unconventional natural gas source. Experts suggest that utilizing even 10% of these reserves could significantly reduce the country’s energy import bill and contribute to lower carbon emissions.
Broader Efforts to Enhance Domestic Energy Output
In addition to the CBM auction, India signed contracts for previously offered oil and gas blocks under earlier licensing rounds. State-owned Oil and Natural Gas Corporation (ONGC) secured 11 blocks independently, one in collaboration with BP and Reliance Industries, and three in partnership with Oil India. Oil India acquired six blocks, while private firms such as Vedanta and Hindustan Oil Exploration Company obtained seven and one blocks, respectively.
These initiatives are part of India’s broader strategy to achieve energy self-sufficiency by diversifying its energy sources and increasing domestic production. By leveraging domestic resources like CBM, India aims to meet its growing energy demands sustainably and reduce its dependence on imported fuels.
The auction of CBM blocks and the signing of new exploration contracts underscore India’s commitment to bolstering energy security and fostering economic growth through enhanced domestic energy production.