Astron and Adani share Gamij gas from ONGC

Vol 17, PW 24 (17 Jul 14) News in Brief
     

At last ONGC will soon be making money from gas at its Gamij field in Gujarat, instead of pointlessly flaring it.

ONGC is preparing to sign five-year contracts with north Gujarat-based Zircon products manufacturer Astron Zircon and Ahmedabad-based gas retailer Adani Gas by end-July. Astron bid for 5000 cm/d at $11.10/mmbtu and has 90 days to begin gas off-take from Group Gathering Station number 3 at Haldarwas in Kheda district.

Adani will pay the same price for the remaining 10,000 cm/d for its Ahmedabad city gas network. Adani had bid for the full 15,000 cm/d but lost out in the price race to Astron.

But after several rounds of talks ONGC persuaded Adani to match Astron's price and take the remaining gas. Adani will set up a compressor on a plot of land it has acquired near Haldarwas.

“After compressing the gas, we will move it in cascades (cylinders mounted on the backs of trucks) to Ahmedabad,” says an Adani source.