GE Energy to invest Rs 600cr in Bengal

Great Eastern Energy Corporation Ltd, the Kolkata based hydrocarbon outfit from Yogendra Modi group, is planning to invest Rs 600 crore for developing coal-bed methane (CBM) blocks at Ranigunj in West Bengal.

The company has a 210 sqkm block in Ranigunj.

A GEEC official claimed that the company will be the first in India to start commercial production of CBM, which will begin in February. He said GEEC has already tied up with Kolkata-based Calcutta Compression and Liquefication Company Ltd for conversion of CBM into LNG.

"The conversion will start on a pilot basis from February and will be in use in the Asansol area. If it is successful, then later on it will be rolled out in Kolkata. But before than we need to increase capacity. Other big groups who have blocks in the area are yet to start production. The conversion of CBM to CNG will solve the pollution problem in the city," said sources.

Besides GEEC, ONGC and the Essar group have CBM blocks in the Ranigunj area.

Unavailability of CNG has been a main hindrance in Kolkata's plan to have public vehicles run on CNG. According to sources, GEEC has so far completed drilling in three wells and production has started on test basis.

The company has invested around Rs 70 crore so far and is planning to invest Rs 100 crore to increase the number of wells to at least 50.

"We have 1.39 trillion cubic feet gas in place, out of which around 60 per cent is recoverable. Initially, each well will produce 0.5 million cubic feet gas. So the initial production available for CNG conversion will be around 1.5 million cubic feet," added company sources.

GEEC is hoping to complete drilling in 100 wells in another three years and step up the production to 50 million cubic feet per day, the sources said, adding, "Our aim is to have 100 million cubic feet production in five years time."