ONGC keen to monetize the gas potential of its Kanjirangudi (KJR) field in Ramnad area of Tamil Nadu at the earliest, ONGC has conveyed availability of 0.6 mmscmd of non-APM gas for use by the Southern Petrochemical Industries Corporation Ltd (SPIC) at Tuticorin.
The E&P major has informed the petroleum ministry that a total of 0.6 mmscmd of gas is available to be allocated from the KJR field. Of this, 0.3 mmsmcd can be supplied on an immediate basis, while the balance 0.3 mmscmd of gas would be available from December 2012 onwards.
The upstream company has also agreed to sign a Gas Supply Agreement with SPIC, as per which gas will be delivered to SPIC at the fence of the KJR field.
Ramnad being an isolated area since it lacks pipeline connectivity with the National gas Grid, ONGC has claimed that the actual utilization of gas by SPIC which is located 120 km from Ramnad will only be possible after a period of two years when a pipeline linkage will be provided between Ramnad and Tuticorin.
Supply of gas to SPIC will reduce the cost of production but as per New Pricing Scheme 3 (NPS-3) variable cost is totally funded by government subsidy so increase or decrease in variable cost will not impact the operating margin of SPIC.
....more info
The E&P major has informed the petroleum ministry that a total of 0.6 mmscmd of gas is available to be allocated from the KJR field. Of this, 0.3 mmsmcd can be supplied on an immediate basis, while the balance 0.3 mmscmd of gas would be available from December 2012 onwards.
The upstream company has also agreed to sign a Gas Supply Agreement with SPIC, as per which gas will be delivered to SPIC at the fence of the KJR field.
Ramnad being an isolated area since it lacks pipeline connectivity with the National gas Grid, ONGC has claimed that the actual utilization of gas by SPIC which is located 120 km from Ramnad will only be possible after a period of two years when a pipeline linkage will be provided between Ramnad and Tuticorin.
Supply of gas to SPIC will reduce the cost of production but as per New Pricing Scheme 3 (NPS-3) variable cost is totally funded by government subsidy so increase or decrease in variable cost will not impact the operating margin of SPIC.
....more info