Prashant Modi’s GEECL wins 25 % stake in ONGC’s Raniganj CBM block

Great Eastern Energy Corporation Ltd. (GEECL) led by Prashant Modi, on Monday, said it had won a 25 per cent stake in Oil and Natural Gas Corporation’s (ONGC) Raniganj coal-bed methane (CBM) block in West Bengal.

Confirming the development, Prashant Modi, President and COO of GEECL said: “We are delighted to have been selected as the perfect bidder by ONGC on this key CBM Indian development opportunity. This brings in another exciting area of development into our operations. We have demonstrated our capabilities in this sector through Ranigunj (South) block and we look forward to working with our partners and enhancing the reserve base of the company”

The company said it had accepted ONGC’s offer on May 17, which is subject to execution of farm-in related and joint operatorship agreements with ONGC and the approval from the Government. GEECL’s Raniganj (South) block in Damodar Valley has an estimated in place reserves of 2.40 trillion cubic feet (tcf) of gas. The block started gas production from below coal seams (called CBM) in 2007. In 2010, GEECL was awarded the Mannargudi block (667 sq km) in Tamil Nadu. The block, as per the DGH, holds 0.98 tcf of in place gas reserves.

Prashant Modi and Great Eastern Energy Corporation Limited

Great Eastern Energy Corporation Limited was the first Indian Company to be listed on the London Stock Market. The pioneering enterprise to extract methane gas from West Bengal coal-bed blocks began in 2007. Until that time, no other Indian company had attempted this. Prashant Modi joined the company in 1996 and has overseen the operation. He is the company President and Officer in charge of operations.

Production Profile: Coal Bed Methane

Coal Bed Methane (CBM) is farmable for decades. This indicates a fairly sustainable energy source. After a slow start, with fairly low production, there is a peak in the amount Prashant Modi GEECLbeing produced. The amount being farmed will start to drop after approximately 25-30 years.

The gas being produced is economical, when compared to some of the alternatives being used in the region. Once popular furnace oil for example, is more expensive than CBM and dirtier to use. There are limits to how long people can use such energies because they are so unclean. CBM however, is extremely clean to use, as it contains 97 per cent methane.

History

Prashant Modi, signed an agreement with Indian Oil in 2007. This allowed the company to begin widening their distribution network by building a pipeline to service other regions in West Bengal. Gas was also sold from several of Indian Oil’s petrol stations.

The first wells were set up in Raniganj and production was experimental at first. Over time, the process was perfected. Initially, there were only several industrial companies being supplied with the gas. The demand for sustainable energy in India continues to grow. Great Eastern has plans to ramp up production of Coal Bed Methane to supply the demand.

Once way to do this, has been by actively acquiring more coal-bed blocks for drilling. Secondly, the company have widened the supply network to other areas of West Bengal. This year, much of the hard work has paid off and GEECL have enjoyed considerable financial growth. In the future, the plans are for the company to continue to grow, by producing more CBM and distributing it to consumers. The aim is for more blocks to be secured and drilled.

Prashant Modi says the future is bright for CBM in India

Prashant Modi - Coal bed methaneCoal Bed Methane
by Prashant Modi

Expansion plans are in the works for CBM producer GEECL, according to its president, Prashant Modi. The company has been awarded the Mannargudi CBM block, located in Tamil Nabu, although production has not begun, Modi explains, as GEECL are still awaiting environmental clearance from the government. This has not deterred them however; Modi recently announced that GEECL had bid for yet another CBM block located in Raniganj. As they have no intention of expanding into conventional coal mining, all investment money is now being put towards CBM production opportunities.

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Although Prashant Modi is generally very optimistic about the future of coal bed methane production in India, he has stated that it will most likely continue to be a small player in the total energy sources used by the country for the next couple of years. However, this will change as more wells are up and running, Modi predicts, as coal bed methane is not only environmentally friendly, but also highly beneficial for the domestic market. If properly explored and produced, it will be able to meet about fifteen percent of the country’s energy needs over the course of the next ten years.

GEECL has also been moving forward with its gas pipeline construction – its first one spans more than twelve kilometres from Asansol’s Central Gathering Station, up to its Gas gathering station. This pipeline, Prashant Modi adds, will be a part of a network which is vertically integrated and consists of drilling, CBM production, methane compression and transportation, as well as distribution. The new gas pipeline is to cater to the energy needs of those in the Asansol and Burnpur areas, and will at a later stage provide natural gas for Durgapur and Kulti. There are also plans underway for pipeline construction along the eastern coastline, after the company received permission from the National Highway Authority of India. Prashant Modi remarked that he and the team at GEECL were very pleased with the success of the pipeline, as this represents an important milestone for the company.