India gets its first CBM based CNG station
ASANSOL, JUL 15 : India got its first coal bed methane (CBM) based compressed natural gas (CNG) station on Saturday with Great Eastern Energy Corp Ltd (GEECL) starting commercial production of CBM, 14 years after it started exploration in the Raniganj block.
GEECL had entered into a license agreement with Coal India Ltd in 1993 for exploration and development of CBM over 210 sq km in the Raniganj coal fields. After the CBM administration was transferred to the ministry of petroleum & natural gas from the ministry of coal in 2001, GEECL had got into a productionsharing contract with the ministry of petroleum & natural gas.
Chairman YK Modi said GEECL in its first phase of work has so far made 23 vertical production wells, which will produce 7,60,000 cubic feet of gas per day. This will go up 35 million cubic feet per day once GEECL completes drilling 100 wells in the next three years.
The company will drill 200 more wells in the second phase, which is expected to be completed by 2014-15.
Modi said a total of Rs 3000 crore investment will be made to complete the two phases. GEECL has so far invested Rs 175 crore. This will reach Rs 800 crore by 2009 with the completion of the first phase.
For sales and distribution of CBM as piped natural gas, the company has already signed a memorandum of understanding with Indian Oil Corp Ltd and is trying to rope in GAIL (India) Ltd as well.
Modi said gas will be supplied at Rs 30 per kg in and around the Asansol area as it has a number of steel & sponge iron plants, ceramic industries, alloy steel plants, bakeries, glass factories and chemical industries.
The company is also looking into supplying CBM-based CNG to vehicles plying in the region. For using gas, all the plants and vehicles will have to install the CNG version. Although it will require a formidable investment, it will save at least 40% of production cost.
While the investment for plants and factories will depend on their size and amount of fuel consumption, for a petrol car it will cost Rs 30,000, and Rs 22,000 for an auto rickshaw to add the CNG version, Modi said.
He said GEECL got the distribution license from the West Bengal government on Friday and has decided to set up six CBM-based CNG retail outlets between Durgapur and Barakar within the next 3-4 months, costing Rs 2 crore each.
Of the six, one station will be the gathering point of gas from all the wells. The rest five will be supplied gas in cascades.
The company will have to make a 120-km internal pipeline network for linking the 100 wells, and a 80- km external pipeline initially for taking it up to the city, which will cost around Rs 200 crore. The pipeline network will be extended to industries according to the demand, Modi said.
West Bengal industry minister Nirupam Sen, who inaugurated the company's station, said GEECL can opt for DPL's pipeline, which is not being used.
To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com .