The Hindu Business Line : Great Eastern Energy, Indian Oil in pact

Corporate - Alliances & Joint Ventures
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Industry & Economy - Petroleum
States - West Bengal
Great Eastern Energy, Indian Oil in pact

Our Bureau

Kolkata , Nov. 22

Great Eastern Energy Corporation Ltd (GEECL) plans to form joint venture with IOC for marketing and distribution of city gas and compressed natural gas (CNG) in the Durgapur-Asansol industrial belt in West Bengal, according to a GEECL release.

The company is exploring coal bed methane (CBM) in Ranigunj block in West Bengal and has recently completed drilling of the first 20 wells resulting in a production of 350 mcfd. Commercial production of CBM is expected beginning June 2007, earlier than scheduled.

The estimated gas in place in the block is 1.386 trillion cubic ft (tcf). GEECL is scheduled to drill 100 wells in the block over four years. Since CNG primarily consists of methane, CBM can be converted into CNG by setting up compression facilities.

The companies will also join hands in city gas distribution in the area dotted with a number of small towns and cities including Asansol, Raniganj, Durgapur, Kulti, and Barakar.

When contacted, Mr Y.K. Modi, Chairman and CEO of GEECL, told Business Line that the city gas and CNG projects are undertaken to widen the customer base and despite the fact that the industrial demand in the area far outstrips the projected production of GEECL.

"We are planning to market roughly one-fourth of its peak production as city gas and CNG," he said.