Gas flaring like burning Rs500 notes

Vol 17, PW 11 (16 Jan 14) News in Brief
     

ONGC and Oil India are under pressure from India’s Planning Commission to find alternatives to flaring 5m cm/d of gas from their oil and gasfields.

Planning Commission officials will meet the two firms later this month to discuss achieving zero gas flaring in line with India's ongoing 12th five-year plan, which runs until 2017. ONGC and Oil India have studied three options to utilise gas from isolated and small fields.

"They can compress gas for transportation in caskets (cylinders)," he says. "Or liquefy gas and transport it in small cryogenic vessels.

Or generate 1, 2 or up to 4-MW of power using the gas." Gas prices for the different options work out to anything between $5/mmbtu and $10/mmbtu.

"We suggest the gas should be priced like LNG," we hear.” If ONGC and Oil India can reduce flaring by 1.5m cm/d, it will save the economy $300m at current LNG prices of $16/mmbtu.