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New CNG station opens in Asansol, long wait for Kolkata

Released on: October 26, 2008, 11:50 pm

Press Release Author: GEECL (Great Eastern Energy Corporation Limited)

Industry: Energy

Press Release Summary: Prashant Modi run GEECL opens its seventh CBM-based
compressed natural gas (CNG) station at Neamatpur in Asansol.

Press Release Body: Kolkata, October 24: The Great Eastern Energy Corporation
Limited (GEECL), the first commercial producer of coal bed methane (CBM) in India,
has opened its seventh CBM-based compressed natural gas (CNG) station at Neamatpur
in Asansol on Friday.

The company has already signed a franchisee agreement for supply and retail of CNG
through Indian Oil Corporation's (IOC) petrol pumps in Asansol, Durgapur, Raniganj
and other cities across the state. Overall there are seven CNG stations in the area,
of which, four are the "mother stations" and three are the "daughter stations".

Coal bed methane is considered to be of better quality than the CNG available in the
market. It has 96 per cent methane, contains no sulphur and has very little carbon
dioxide, while the natural gas contains about seven per cent carbon dioxide.

While automobile users will have access to clean fuel in the region, for users in
Kolkata, there seems to be a long wait ahead. The company has spoken to the state
government about extending CNG supply to Kolkata, which will be implemented
gradually. It estimates a CNG demand exceeding 40 to 50 million cubic feet per day
in Kolkata alone.

"We have begun with Asansol and Raniganj. Later, we will gradually extend it to
Durgapur, Burdwan and Dankuni. It will take at least six months to extend the supply
to Durgapur. Kolkata might take longer and as of now, opening a supply station in
the immediate future is ruled out," said Prashant Modi, president and chief
operating officer of GEECL. Given the huge market for CNG in Kolkata, it is
difficult to match supply with demand. Moreover, supply to Kolkata requires
pipelines to be laid which could take some time. "Supply by truck-mounted cascades
is not feasible for Kolkata, as trucks are not allowed into the city. Pipelines are
the only option," added Modi.

State Transport minister Subhas Chakraborty on Thursday had said that all
autorickshaws, running on petrol or diesel, will be off the roads after December 31.
Only autos fuelled by LPG will be allowed in Kolkata and other parts of the state.

Src: Express India News Service

Web Site: http://www.geecl.com

Contact Details: Dolly Tayal, Genesis B-M
dolly.tayal@bm.com - +91 9899101140
807-B Signature Towers, South City,
Gurgaon 122 001
Tel: +91 124 408 8999,
Fax: +91 124 408 6663

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