Great Eastern Energy wins gas supply contract with Sail Growth Works

LONDON (Thomson Financial) - Great Eastern Energy Corp. Ltd. , said it has won a gas supply contract with SAIL Growth Works (part of Steel Authority of India Ltd.) for initial supply of 233 thousand cubic feet per day (MCFD) of gas, at a delivered price of $17.46 per million British thermal units(mmbtu).

The company involved in the exploration, development and production of coal bed methane in India, said the amount of gas supplied to SAIL Works is expected to increase significantly as gas production increases and the steel pipeline for the supply of the gas has been successfully laid.

In addition, Great Eastern has received confirmations from Kedia Group of Industries for the purchase of 1,801 MCFD of gas at a delivered price of $17.32 per mmbtu for an initial three year period and $17.49 per mmbtu for a further two years.

This will be the base price and the price will be revised again after 5 years, while the tenure of the contracts will be for 20 years, the company said.

Carbon credits arising from the contracts with Kedia Group will be available to Great Eastern and supplies of gas are expected to begin next year.

The company has also successfully renewed gas sales agreements for another year with those customers whose initial terms of agreement have expired. And the second drilling programme of 30 wells, as outlined at the time of the results in June, is also making good progress, with 9 wells drilled and a further 10th well currently being drilled.

TFN.newsdesk@thomson.com

To know about Mr Prashant Modi, the President and COO of GEECL. Visit the official website at www.prashantmodi.com.