Essar Oil and Great Eastern Energy Corporation (GEECL) are selling coal bed methane (CBM) gas at a rate of $10-14 mbtu, as per the reports. These two firms produce CBM from their blocks in West Bengal. Essar Oil is currently producing about 100,000 standard cubic metres of gas per day, while GEECL is producing 0.57 mmscmd from the Raniganj (South) block in Asansol, West Bengal. It may be noted that this price is higher than the price of natural gas that may prevail once the Rangarajan committee formula comes into effect from April 2014. In CBM, only the minimum well head price is approved so as to protect the Government's royalty and production link payment.
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