Great Eastern Energy gets TN nod for CBM block

Great Eastern Energy Corp Ltd (GEECL), the country’s maiden coal bed methane (CBM) producing company, has said it has received environmental clearance from the ministry of environment and forests for its Mannargudi CBM block in Tamil Nadu with an estimated 0.98 trillion cubic feet of gas.

“We are in advanced discussions with the Tamil Nadu government” to receive the other required approvals. “We expect to commence work before the end of the year,” GEECL said in a filing with the London Stock Exchange.

It will start with 30 pilot production wells and 50 core holes at the 667 sq km Mannargudi block which was awarded to it under CBM IV round. GEECL operates its sole working CBM block at Ranigunj in West Bengal.

GEECL had signed a production sharing contract with the Tamil Nadu government in 2010 and sought two petroleum exploration licences.

At Raniganj, CBM production  rose to 12.5 million standard cubic feet per day (mmscfd) now, up 50% from the levels of November last. GEECL plans to ramp up production to up to 16 mmscfd by December and then to about 24 mmscfd by June, it said.