Reliance industries has sought bids from the buyers of coal gas produced from its coal-bed methane (CBM) blocks in Madhya Pradesh at a minimum price of about USD 6 at the current oil price. It sought bids for 0.82 million standard cubic metres per day (mmscmd) of gas from the Sohagpur CBM block. The bids have been sought for the supply of gas for one year beginning April 1, 2021. The gas can be used in industries as well as by city operators to supply compressed natural gas to automobiles and piped cooking gas to households.
Reliance had started commercial gas production from the CBM blocks in March 2017 and reached the peak of 3 mmscmd before the end of 2018. CBM refers to natural gas stored or absorbed in coal seams and contains 90-95 per cent methane.