The Hindu Business Line : Calcutta Compressions to sell part of converted gas in local market

Kolkata. July 22 After having entered into a firm agreement to buy coal bed methane (CBM) from ONGC’s Jharia field, Calcutta Compressions and Liquefaction Engineering Pvt Ltd (CC&L), which is to convert CBM into compressed natural gas (CNG), is now exploring opportunities to sell in the local market part of the converted gas.

CBM produced by ONGC from Jharia has methane content of over 95 per cent.

“We are expecting to get an initial supply of approximately 15,000 standard cubic metres of gas a day towards the end of 2008 and part of it is to be sold in Kolkata as CNG,” Mr U.K. Bagaria, Director of CC&L, told Business Line. Depending on production, ONGC, as per the agreement, might supply upto 50,000 scmd of gas to CC&L, he said.

Logistics Part

Since the low volume does not justify laying a pipeline network for transportation of the gas to the city from Jharia, which is 280 km away, the company is considering transportation by road in cryogenic containers.

“We are still working out the logistics and the cost which will have a bearing on the landed price of CNG in the city. However, we are confident to start supply of CNG in the city in next six months,” Mr Manoj Lakhotia, Director of CC&L, said.

New Tie-up

He added that the company was also negotiating with state-run Greater Calcutta Gas Supply Corporation for a probable tie-up in city gas distribution.

GCGSCL currently supplies coal gas - a synthetic gas with low methane content produced from coal by Coal India Limited – in and around Kolkata.

Interestingly, the initiative coincides with Calcutta High Court ruling on July 18 to make it mandatory for all 80,000 odd auto-rickshaws to run on green fuel, either LPG or CNG, latest by December 2009.

The court has also banned plying of commercial vehicles older than 15 years in and around the city.

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