YK Modi owned Great Eastern Energy Corp has chalked out a Rs 3,000 crore investment plan for producing gas from coal seams and marketing it as CNG in various cities and towns of West Bengal including Kolkata.
Gas for the project will come from Great Eastern’s coal bed methane block in Raniganj, having estimated gas reserves of 1.92 trillion cubic feet. Development of natural gas from this block has already commenced and the company is currently producing 2 million cubic feet or 0.06 million standard cubic meters of gas per day
In addition to supplying small quantities of gas to industries, the company has also tied up with Indian Oil Corporation for its CNG retail operations. It is currently retailing CNG through four IOC outlets and three of its own CNG stations in the state.
The company has so far started drilling process in 38 wells in its CBM block and plans to drill 100 wells by 2011.
A banking industry source said on the condition of anonymity that to fund its plan of drilling 100 wells, the company has planned an Initial Public Offer of close to Rs 800 crore.
“They have indicated a production of one mmscmd of gas from coal seams in the next three years. The production would be scaled up to 3 mmscmd by drilling 300 wells over next five years.
Other than this the company is also eyeing acquisitions of coal blocks abroad and will be looking at countries having good quality coal.