India has set a target to increase its Coal Bed Methane (CBM) production to 5.0 million metric standard cubic meters per day (MMSCMD) by 2027-28, aiming to strengthen domestic energy security and reduce reliance on imported natural gas, according to the Ministry of Petroleum and Natural Gas.
The CBM sector presents significant opportunities for both domestic and international energy companies, driven by strong policy support, technological advancements, and growing investments. With ongoing policy reforms and the adoption of advanced drilling technologies, CBM production is expected to grow substantially, helping reduce dependence on conventional fossil fuels.
The Indian government is actively working to develop CBM as a key energy source, creating new investment opportunities in the unconventional hydrocarbon sector. In 2021 and 2022, two special bid rounds resulted in the addition of seven new CBM blocks, bringing the total number of CBM blocks to 15. These new blocks are accompanied by a committed investment of USD 16.64 million for exploration, indicating strong interest from energy companies in India’s CBM reserves.
To further support CBM development, the government introduced the Policy for Exploration and Exploitation of Unconventional Hydrocarbons, which offers greater operational flexibility to companies. This is complemented by a Joint Standing Mechanism to address any overlaps between coal mining and CBM extraction, facilitating smoother operations and quicker implementation of CBM projects.
In addition, India is adopting Multi-Lateral Horizontal Well drilling, an advanced technique that is expected to increase CBM production by 30% compared to conventional methods. This innovation will improve gas extraction efficiency and enhance the commercial viability of CBM production.
Currently, India has 15 operational CBM blocks spanning 7,009 square kilometers. Of these, five blocks are in the exploration phase, six are in production, two are under development, and two are under a Petroleum Exploration License (PEL).
As of March 2024, the country’s CBM production rate stands at 2.2 MMSCMD, with a total investment of USD 2.6 billion. Cumulative CBM production reached 7.08 billion cubic meters (BCM) by February 2025.
For detailed information and further insights, please refer to BioEnergyTimes.com, which provides the latest news about the Biogas IndustryÂ
