Being a pioneer in the field of Coal Bed Methane (CBM) in India, Great Eastern Energy Corporation Limited has been able to mark its presence in the industry with progressive production and developments. Mr. Prashant Modi, the President and Chief Operating Officer at GEECL, recently shared
insights about GEECL and CBM industry in India. Considering production-linked payment (PLP) system in the prospective PSCs, he finds royalty and PLP contracts to be the better option than cost recovery.

There has been an ongoing debate on whether oil & gas companies in the coming days should be liable to pay the government an agreed amount depending on the level of output or not. In this regards, Mr. Prashant Modi gives importance to production-linked payment (PLP) system.

In India, exploring shale gas assets & development of CBM is slowly growing. The industry leaders like GEECL are striving to make a difference in the long term in securing the energy supplies in India through
unconventional hydrocarbons and in the overall cost of gas. Like U.S, India can also enjoy shale gas as a major source of energy. However, according to Mr. Prashant Modi, these assets should be developed to their full potential.

Moreover, Mr. Prashant Modi also advices that pipelines should be developed for these assets to be tapped and used. The key reason for this is that shale gas production peaks initially and therefore before any major development of shale resources, pipelines should be planned and put in place in advance of production.