State-run Oil and Natural Gas Corporation Limited (ONGC) has entered into a firm agreement for supply of gas to Calcutta Compressor and Liquifaction Limited (CC&L) from its Jharia coal-bed methane field in Jharkhand.

The agreement marks the beginning of the commercialization of coal-bed methane resources by the oil and gas major.

CC&L plans to use the gas for supply of compressed natural gas, which is a clean auto-fuel, to the towns and cities of West Bengal and Jharkhand.

ONGC has been operating in five coal-bed methane blocks in Jharkhand and one block in West Bengal. The supply will begin by end 2008.

Earlier this week, ONGC has inked an agreement with Uttaranchal Bamboo & Fiber Development Board (UBFDB) to support tree plantation in Upper Himalayas region.