Great Eastern yet to receive NOC for CGD network

Vol 10, PW 17 (14 Dec 06) Midstream & Downstream

Great Eastern Energy is talking to GAIL and Indian Oil about joint ventures for City Gas Distribution networks in West Bengal.

Great Eastern is yet to receive a (NOC) No Objection Certificate from the state government of West Bengal for its CGD network, reveals a source. It makes sense to partner a state owned company to smoothen things out.

PETROWATCH learns Great Eastern has identified six towns in West Bengal for CGD networks supplying CNG and Piped Natural Gas to businesses and households using Coal Bed Methane from its Raniganj South block: Burnpur, Asansol, Kulti, Raniganj, Chittaranjan and Durgapur. Work is progressing fast at Asansol where Great Eastern wants to set up its first 'mother' CNG station at the wellhead.

Eight producing wells at the block are ready, we hear. Orders have been placed for compressors and gaskets with Indian Compressors and civil construction work will start soon.

Great Eastern has advanced the commissioning date for its CNG station at Asansol to April 2007 but is unlikely to meet the deadline. The CNG station is likely to be ready only in July, cautions a source.

Earlier this year consultant Theo-Dash completed a route survey for 23 pipelines to transport gas from 23 producing wells at Raniganj South. Overall project manager state-owned MECON has likewise completed the basic engineering and design study for a Group Gathering Station, which will receive gas from the 23 pipelines.

"Pipes have been selected, adds a source. MECON will float a tender to lay pipelines this month (December) itself.

An EPC tender for the Group Gathering Station is almost ready and this will also be floated in December. Great Eastern has set an internal target to award the contracts for both jobs by January next year and expects work to be completed by July 2007.