Adani and Gujarat Gas compete for Olpad gas

Vol 19, PW 17 (05 May 16) Midstream & Downstream

Not only has ONGC managed to move forward valiantly from the tragic blowout at its Olpad field last year, which claimed two lives, but it is even offering an impressive 62,000 cm/d of gas for sale.

Gujarat Gas and Adani Gas are likely to be the main competitors in the Olpad gas sale tender where ONGC wants bids in by June 16. Gujarat Gas will be interested as it is in the last stages of connecting 11 villages with piped gas in the Sayan area, just east of Olpad.

"Sayan is one of the fastest growing industrial regions," says an industry source. "Both Olpad and Sayan lie within a 20 to 30-km radius of Surat city." Sayan has 16,600 homes of which Gujarat Gas is targeting 5700 with piped gas.

When contacted an Adani source said: "The quantity on offer [under ONGC's tender issued on April 19] is good." But he did not confirm whether Adani would participate. However remember Adani faced a major gas supply shortage on March 22 from GAIL and Gujarat State Petronet following which it was forced to stop piped gas supplies for over 12 hours to more than 400 factories in the Vatwa, Odhav, Naroda, Bawla, Sanand and Changodar industrial areas.

Only Gujarat chief minister Anandiben Patel's intervention managed to restore supplies.