The Hindu Business Line : Great Eastern Energy plans to transport gas thru pipeline

GREAT Eastern Energy Corporation Ltd, which has struck coal bed methane gas (CBM) in West Bengal, is examining the option, among others, of having the gas transported by pipeline to the nearest consumption point.

"We can lay the pipeline on our own or we can have Gas Authority of India Ltd (GAIL) participate in the project," said Mr Y.K. Modi, Chairman of the company, and also the newly elected president of the Federation of Indian Chambers of Commerce & Industries (FICCI), while talking to Business Line here on Wednesday. "We are already in touch with GAIL in this regard," Mr Modi said.

Durgapur, the nearest major consumption point, is about 40 km from the place where the gas has been struck. From Durgapur, there already exists a gas pipeline network right up to Kolkata. The network is operated by a State government agency, Greater Calcutta Gas Supply Corporation, which is not exactly in the pink of health.

Asked if he was mulling using the same pipeline network for transporting CBM to Kolkata, Mr Modi replied that the existing Durgapur-Kolkata gas pipeline, before it could be put to proper use, would require extensive modernisation, repair and upgradation entailing substantial investment. "I understand GAIL at one time had shown interest in acquiring the project but I have no idea if the proposal has made any progress," he observed.

Among other options being considered is setting up of a power project right at the pithead to reduce the transportation cost. The three wells which have been struck will produce gas enough to produce about 10 mw of power right now but in due course a 200 mw capacity plant appears to be a distinct possibility. "We are sitting on a gas reserve of one trillion cubic ft and the exploitation and proper utilisation of even half of that can make a huge difference," Mr Modi observed.

It might be noted that Great Eastern Energy has acquired on lease from Coal India Ltd about 210 sq miles of area in Ranigunge coalfields for exploration and development of coal bed methane gas.

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