Exploration & Production

Gail to buy CBM from Essar Oil block in West Bengal

India’s Gail has won a contract to buy CBM produced from Essar Oil’s Raniganj block in West Bengal.
By Staff reporter 15 February 2018 0 29606

India’s Gail has won a contract to buy CBM produced from Essar Oil’s Raniganj block in West Bengal, according to Business Standard.

The gas price will be based on the three-month daily average price of Brent, which works out at around $8/MMBtu.

This is more than double the government-set price of $2.9/MMBtu for conventional gas but favourable compared with LNG imports, which are currently around $11.5/MMBtu, according to a source quoted by Business Standard.

Based on current prices, the 15-year contract will cost around INR 7...