Date:22/11/2006 URL: http://www.thehindubusinessline.com/2006/11/22/stories/2006112201060200.htm

Back Great Eastern Energy, Indian Oil enter pact

Our Bureau

Kolkata, Nov. 21

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.

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.