RIL plans development of second CBM asset to boost gas output

Mumbai:Reliance Industries Limited (RIL) is preparing to begin exploration work in its eastern Sohagpur block in Madhya Pradesh, as the company looks to augment gas production from its coal bed methane blocks, said people familiar with the development. CBM is natural gas stored in coal seams, extracted by drilling wells into coal seams and used as compressed natural gas for various domestic and industrial purposes.

RIL has coal bed methane blocks in Sohagpur, spanning roughly 1,000 sq km across two separate concessions or licence areas, Sohagpur West and Sohagpur East blocks, each covering about 500 sq km. The company has so far concentrated development on the western block, which industry executives describe as the more geologically prolific of the two. With the western asset largely developed and delivering steady output, RIL will begin with a test-phase investment estimated in the range of ₹300-400 crore, aimed at establishing proof of concept before scaling up.

Queries emailed to RIL did not elicit a response till press time.

"RIL is producing CBM from block SP (West), with over 320 wells contributing to an average output of 0.88 million metric standard cubic metres per day in FY 2025-26, a 9.8% Y-o-Y increase. In the block SP (West), multilateral horizontal well (MLW) programmes (first of its kind in India) have been successfully implemented reversing the field decline," RIL said in its annual report for 2025-26.

"Some part of RIL's western block is constrained by forest-area restrictions, so not much can be done there. Therefore, the company is planning exploration of the eastern block," an industry executive familiar with the company's plans said on condition of anonymity, adding that the groundwork and planning for the block are currently underway but on-ground development activity has not yet commenced. Should early results prove encouraging, the company is expected to expand investment and move toward formalising a field development plan for the block.

In its annual report for 2025-26, RIL said it will prioritise sustaining existing production, expanding its CBM output and pursuing disciplined exploration to support future resource additions, a strategy that now appears to include a cautious, phased entry into the eastern Sohagpur concession.