Prashant Modi’s GEECL clocking towards growth in 2013

Great Eastern Energy Corp Ltd (GEECL) which is led by Prashant Modi is a London-listed entity, engaged in natural gas production in West Bengal, India. The Prashant Modi company is set to declare its first annual profit, according a report on Reuters. GEECL extracts and sells natural gas from the coal bed methane (CBM) to the industrialists.

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Their business model is business and environmental friendly. GEECL’s proposition is to cut down heavy manufacturing cost involving machineries which are run suing expensive fuel. This gas is delivered using GEECL’s pipelines.

Although CBM field is too small in India to attract bigger industries, but GEECL has made a big impact in producing environmental friendly natural gas.

India’s import of Liquefied Natural Gas (LNG) production has been increasing with every passing year. GEECL’s business model can be an effective way to beef up natural gas production to meet demands.

UK institutional shareholders have financed the company since its listing in 2005. In a recently held meeting of shareholders, the company decided to raise funds by listing it on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). 8 million new shares will be offered and the funds raised will be utilized in drilling and well development.

GEECL offers his customers gas delivered via its own 100 kilometer pipeline network to the steel works and food processors of Asansol, Raniganj and Durgapur.

Prashant Modi – CNG pipeline production plans

Prashant Modi - HandshakeNew partnership by Prashant Modi

GEECL will be entering into a new partnership, Prashant Modi has announced, with Indian Oil Corporation. This decision has been made so that GEECL will be able to convert several of the existing petrol pumps, located on various Indian highways, to compressed natural gas stations.

Prashant Modi revealed his company’s plan to extend its current pipeline to the area of Calcutta, so as to keep up with the customer demand for compressed natural gas. GEECL were successful in their commissioning of the first natural gas pipeline, which now extends from the gas gathering station, to twelve kilometres away, at its central gathering station. This is the very first pipeline dedicated to distributing coal bed methane to businesses in India and will be a part of a fully integrated network which will consist of drilling wells, producing coal bed methane, compressing the gas and transporting it to GEECL customers around the Asansol city centre area.

The twelve kilometre pipeline is now catering to the energy requirements of factories and plants around the Asansol area, and is also able to feed into other pipelines which connect to eastern Durgapur and western Kulti. Speaking of this, the president of GEECL, Prashant Modi expressed his ‘pride and delight’ at the way in which the CBM pipeline had developed. It is, Modi said, a significant milestone in the construction of compressed natural gas pipelines.

Although only the twelve kilometre gas pipeline is currently operational, the company have laid down the beginnings of further pipelines which span more than thirty kilometres, and will be able to connect over twenty wells to the central gas gathering station. On top of this, Prashant Modi explained, GEECL has also laid down steel ten kilometres of pipeline in Durgapur, and has now received permission from the National Highways Authority of India to lay pipes along fifty seven kilometres of coastline in the west of the country. Once completed and operational, these other pipelines will mean that almost every region in India will be able to easily access compressed natural gas and benefit from this affordable and clean source of fuel.

Prashant Modi explains GEECL’s plans for expansion

Prashant Modi - ExpansionCompany expansion
by Prashant Modi

GEECL (Great Eastern Energy Corporation) has announced its new plans to invest Rs 3000 Crore in the exploration and distribution of CBM in 2013.  Prashant Modi, who serves as GEECL’s chief executive, has said that they would be drilling another 80 wells on the block in Asansol, where they currently operate 23 wells. Situated approximately 200km from Kolkata, the Asansol block has more than 2 trillion cubic feet of methane gas, making it commercial viable for at least another two decades.

Prashant Modi also stated that the demand within the local industrial area is high enough to warrant the extra wells, with factories, power plants and steel plants already using GEECL’s CBM to run their operations. CBM, Modi says, will eventually replace other conventional sources of fuel such as coal and oil. The company intends to set up stations for the compressed natural gas it has extracted from the coal seams, so that vehicles around Durgapur, Barakar and Asansol can be fuelled by gas developed by GEECL. Eventually, Prashant Modi explains, they will extend these stations to Kolkata as well.

GEECL has been listed on the Alternative Investment Market, a section of the London Stock Exchange for many years now, and to fund the setting up of these stations, will be taking out a loan of Rs 350 Crore from the bank and using Rs 200 Crore of its equity. The remaining money required, Prashant Modi says, will be coming from sales.

GEECL first began to consider the idea of coal bed methane exploration in 1992, when it realised that it could capitalise on the enormous coal reserves around India and simultaneously reduce the amount of methane emissions into the atmosphere. CBM exploration and production had proven to be hugely popular in the US and Australia at the time, and GEECL made the decision to use the same technology these countries had in a bid to begin CBM production in India.  According to Prashant Modi, today GEECL is the only Indian company to have successfully produced CBM on a large scale.