India : West Bengal’s shale gas reserve may attract Rs 60,000 crore investments

Great Eastern Energy Corporation (GEECL) and Essar Oil are upbeat about shale gas reserves in the CBM blocks of West Bengal, as Gail looks for more buyers as it is poised to start business with city gas distribution.

Great Eastern Energy Corporation (GEECL) and Essar Oil are upbeat about shale gas reserves in the CBM blocks of West Bengal, as Gail looks for more buyers as it is poised to start business with city gas distribution. H Energy is looking for opportunities to supply imported gas from Malaysia to Gail in a bid to get a price advantage over Gail’s supplies from Dahej. While West Bengal finance and industry minister Amit Mitra hopes that the shale gas reserves in the state would attract Rs 60,000 crore worth of investment in production, supplies and creating infrastructure, YK Modi, executive chairman, GEECL, said that it has found proven reserves of 6.6 trillion cubic feet of shale gas in the CMB blocks of West Bengal, which would require Rs 15,000 crore worth of investment for exploration.

Mitra said Essar Oil has reported the same amount of reserves and it could change the state’s economic landscape by 2020. Modi said the Centre, through a notification in August 2018, has allowed exploration of shale gas in its CBM blocks. Prashant Modi, GEECL MD, said availability of technology is an issue and tax implications on it has to be made clear. Shale gas pricing should ideally be market driven and binging gas under GST is essential, enabling the sector to attract more investment. Cost of lifting shale gas is much higher than lifting CBM.

Prashant Modi said the Centre, through a notification in August 2018, has allowed exploration of shale gas in all CBM blocks. Prashant Modi, GEECL MD & CEO, said the key factors are: availability of technology, Shale gas pricing should be truly market driven, and binging gas under GST is essential, enabling the sector to attract more investment.

“Furthermore and of prime importance is that the notification came on August 20 last year and the remaining contract period for most blocks is for around twenty years. The contract period is not enough and we need time up to 2053 at least since we will all have to drill several hundred wells” Prashant Modi said.

 

Source : https://www.financialexpress.com/industry/west-bengals-shale-gas-reserves-may-attract-rs-60000-crore-investments/1439186/

Smart Grid Bulletin January 2019


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