Reliance Industries to Develop Second CBM Asset for Higher Gas Output

In July 2026, Reliance Industries Limited (RIL) prepared to begin exploration activities in the Sohagpur East coal bed methane (CBM) block in Madhya Pradesh as part of its strategy to expand domestic natural gas production. The company plans to initiate a test-phase investment before scaling up to commercial operations. Coal bed methane (CBM) is natural gas that is trapped within coal seams. Producers extract the gas by drilling wells into the coal formations, after which it can be used for compressed natural gas (CNG), industrial fuel, power generation, and other various domestic applications.

Reliance plans to begin with a test-phase investment that is estimated at around ₹300-400 crore. The aim is to establish a proof of concept for commercial production before committing larger capital for full-scale development. This phased approach will thus allow the company to evaluate reservoir performance, production economics and infrastructure requirements before expanding operations.

If the Sohagpur East development proves to be successful, it could help increase Reliance Industries’ domestic natural gas production, strengthen India’s CBM output, support industrial and transportation fuel demand, reduce dependence on imported LNG, and enhance energy security. By initiating exploration in the Sohagpur East CBM block, Reliance Industries is taking the next step in expanding its coal bed methane operations in Madhya Pradesh. As reported by cpstesters.com, the planned ₹300-400 crore pilot investment signals a cautious but strategic move to develop a second major CBM asset that could contribute meaningfully to the company’s future gas production growth.

Impact on the Chemicals Market

The chemical industry is undergoing a significant transformation in the market, fueled by collaborative innovation, open innovation, and cross-industry partnerships. Companies are increasingly leveraging external collaborations to accelerate research and development, enhance material performance, and tackle sustainability challenges. By fostering collaborative innovation with universities, startups, and even competitors, chemical firms can push the boundaries of discovery and maximize market impact.

By forming partnerships with academic institutions, technology startups, and research organizations, chemical companies can tap into external expertise, access cutting-edge technologies, as well as reduce development time.

As chemical companies continue to embrace open partnerships, digital platforms, AI-driven research, and data-sharing initiatives will further enhance efficiency. The firms that foster cross-industry collaboration and knowledge-sharing will lead the way in next-generation material science, sustainability, and innovation-driven market expansion.

Impact on the Natural Gas Storage Market

The global natural gas storage market size is estimated at 50.30 bcm in 2025 and is anticipated to reach around 266.31 bcm by 2035, expanding at a CAGR of 18.14% from 2026 to 2035.

According to Precedence Research, to further promote the use of liquefied natural gas vehicles and infrastructure, governments throughout the world are increasing the tax advantages that are now in place. Governments all over the world, particularly in countries like India and China, are also expanding financing for CNG technology development and research, and providing loans and grants to assist the construction of CNG fueling stations. Along with reducing emissions and enhancing air quality, such initiatives would also help the economy by creating jobs.

The oil and gas market is also anticipated to be hindered by the cyclic and unpredictable nature of oil and gas production, in addition to an imbalance between supply and demand. These considerations have led to an increase in natural gas use in both household and non-domestic uses, including power generation, transport, and a variety of other industries. Due to its affordability and favorable environmental effects, natural gas is increasingly being used in industry across a wide range of countries.

Impact on the Coal Bed Methane Market

The global coal bed methane market size was calculated at USD 19.00 billion in 2025 and is predicted to increase from USD 20.23 billion in 2026 to approximately USD 35.50 billion by 2035, expanding at a CAGR of 6.45% from 2026 to 2035.

According to Precedence Research, the market is growing rapidly, driven by an increasing demand for clean energy solutions. The growing prices of natural gas and innovations in extraction methods have boosted this growth. Furthermore, the role of coalbed methane (CBM) in reducing greenhouse gas emissions bolsters its acceptance across various energy sectors.

Additionally, CBM is integrated into LNG value chains, empowering producers to tap exports rather than domestic consumption. By sending much of the methane output into LNG terminals, companies are gaining pricing flexibility and long-term offtake contracts.

This also brings in CBM as an adjunct in hybrid power ecosystems, complementing renewable energy sources and establishing CBM as a transitional fuel to enhance the energy supply to the grid and provide a stabilizing force. Investment in CBM today increasingly highlights the geopolitical energy agenda as several key nations are pursuing incremental development in order to reduce their reliance. This also highlights a larger transition, where unconventional gas has gone beyond economic opportunism to emerging as a strategic weapon of national energy resilience and supply diversification.

About Reliance Industries Limited (RIL)

Reliance Industries Limited (RIL) is India’s largest private sector conglomerate, operating across energy, petrochemicals, retail, telecommunications, digital services, and green energy, with a global footprint and a strong legacy of innovation and growth.

Reliance Industries was founded by Dhirubhai Ambani in 1958 as Reliance Commercial Corporation, initially trading in commodities like spices and polyester yarn. In 1966, it was incorporated as Reliance Textiles Industries Pvt. Ltd., establishing its first synthetic fabrics mill in Naroda, Gujarat. The company went public in 1977, attracting widespread investor interest, and expanded into polyester yarn and textiles throughout the 1980s. In 1985, it was renamed Reliance Industries Limited, marking its diversification into petrochemicals, refining, and eventually energy-intensive sectors.