Gaz de France solution for gas starved India

Vol 17, PW 10 (19 Dec 13) Midstream & Downstream

GDF Suez subsidiary Storengy has identified the first five potential sites for India's strategic gas storage network at depleted ONGC fields in the Cambay basin.

Storengy director general Jean Marc Leroy told PETROWATCH on the sidelines of the 8th Asia Gas Partnership Summit on December 3 and 4 that India is the only major gas consuming country that does not store gas in underground reservoirs to protect against short-term supply dips. Most other gas consuming countries have reserves covering 20% to 25% of annual gas demand.

Storengy signed a deal in January with GSPC to identify possible storage locations and has also been working separately with ONGC and GAIL to analyse reservoir data and identify storage facilities. Storengy's focus is on identifying old oil and gasfields in the Cambay Basin and northwest Rajasthan.

“Storing gas in depleted wells is the quickest way to set up strategic reserves,” says Leroy. India, he adds, must have strategic reserves to ‘hedge’ against disruptions in gas imports.

ONGC tells us the five identified storage locations are at the Mehsana, Ahmedabad and Ankleshwar assets. Storengy is also thinking of using reservoirs in the salt basins of Nagaur-Ganganagar in northwest Rajasthan and Mandi in Himachal Pradesh.

Gas storage costs can be met by storing gas when prices are low and selling it later at higher rates.