GEECL to kick off shale exploration in India next year: CEO interview
Indian coalbed methane (CBM) explorer Great Eastern Energy Corp (GEECL) is likely to start exploring for shale gas at its flagship Raniganj (South) CBM block in the eastern Indian state of West Bengal next year, the company’s CEO Prashant Modi told NGW.
“The company is expected to start exploring for shale gas next calendar year, subject to approvals being in place,” Modi said. “Subject to the results obtained and analysed from a few core wells that will be drilled, the company intends to drill an optimum number of pilot production wells.”
According to London-listed GEECL, the Ranijganj (South) block holds an estimated 3.51 trillion ft3 in best-estimate shale gas resources.
In order to encourage greater development, the Indian government changed the rules in 2018 to permit exploration and production of all types of hydrocarbons including shale gas under existing CBM contracts.
Modi said that the Jagdishpur-Haldia and Bokaro-Dhamra pipeline, which is being developed by state-owned Gail, will help GEECL expand in the state of West Bengal.
“The Gail pipeline will allow us to expand our customer base and sales volumes and take advantage of our significant proven but as yet uncommitted gas reserves,” he said. “On completion, the pipeline will allow us to pursue further material organic growth into the large and untapped industrial market of Kolkata and into the wider state of West Bengal and we look forward to reporting on our new gas marketing initiatives as they unfold.”
Gail partially commissioned the Jagdishpur - Haldia and Bokaro - Dhamra pipeline in February this year. Further work on laying the pipeline section to Kolkata is underway and it is expected to be completed by August 2022, according to media reports.
GEECL earlier this month reported a 65.5% yr/yr decline in its profit after tax during the 12 months to March 31 (2020-21) owing to a drop in sales volume. Modi said that the performance of GEECL in 12 months that will end in March 2022 will be better than the previous year.