State signs 22 billion-dollar leasing agreement for shale gas exploration

West Bengal has signed a lease deal for shale gas exploration and mining . The state government and Great Eastern Energy Corp (GEECL) signed the deal .

Kolkata: West Bengal will be on the global map of shale gas by the end of the year.The state government has signed a lease deal for shale gas exploration and mining.It will also sign another lease agreement, which in combination with the other two will result in an investment of Rs 22,000 crore.The state government and Great Eastern Energy Corp (GEECL) signed the deal.

The two existing CBM players in the region are GEECL and Essar Oil and Gas Exploration and Production.Both are expected to be excavated from the GEECLs Raniganj block for a decade.Up to 6.6 trillion cu ft (TCF) is expected to be excavated.GEECL's shale gas extraction project would net them Rs 15,000 crore and result in the development of other ancillary industries and the development of thousands of new jobs for the local community.

The estimated shale resources of the GEECL are estimated to be 6.6 TCF, while the recoverable reserve is estimated to be 1.6 TCF.The proposed CBM reserve for GEECL is currently at 2.6 TCF.Next week, an identical lease deal will be signed with the Essar group for shale exploration near Durgapur.EOGEPL's exploratory fund will invest Rs 7,000 crore.