JV Plans to Deliver CBM Sourced Gas to Kolkata

GAIL (India) Ltd., Hindustan Petroleum Corp. Ltd. and the Government of West Bengal have signed an agreement to form a joint venture for supplying coalbed methane gas within the state be used by industry, automobiles and households.

GAIL and HPCL will own 37% each in the joint venture, with Greater Calcutta Gas Supply Corp. Ltd (GCGSCL),  a West Bengal government-owned firm currently supplies cooking gas derived from coal in Kolkata and Howrah, holding a 26% stake.

Dipankar Mukhopadhyay, principal secretary in West Bengal’s commerce and industries department said that the JV had begun discussions to secure coalbed methane from Great Eastern Energy Corp. Ltd and Essar Oil Ltd. from coalfields in Asansol and Raniganj.

The partners plan to apply to Petroleum and Natural Gas Regulatory Board (PNGRB) for a gas distribution licence in Kolkata Metropolitan areas. It is eventually planning to distribute 10 million standard cubic metres of gas daily in the state, which is enough for generating 2,000 MW power.