GEECL to invest in coal bed methane block in TN

KOLKATA: Great Eastern Energy Corporation will invest Rs 3,600 crore for exploration and production of coal bed methane in Tamil Nadu.

It will initially invest about Rs 100 crore during exploration stage in the state’s Mannaragudi block, and once its viability is established, it will invest around Rs 3,500 crore, the company said in a statement.

The Directorate General of Hydrocarbons has estimated initial reserves at 0.98 trillion cubic feet in the block. Earlier on Tuesday, the company signed a memorandum of understanding with the Tamil Nadu government for production of coal bed methane from the block that was awarded by the Central government after it was offered for bidding.

The Tamil Nadu government will facilitate environment clearances and building infrastructure for the project.

In West Bengal’s Raniganj, the company’s methane block extends over 210 sq km and it has invested more than Rs 800 crore. In Bengal, the company is supplying compressed natural gas to vehicles through India Oil Corporation outlets and has plans to start supplying CNG through Bharat Petroleum Corporation Ltd outlets as well.