Deep talks with GAIL for gas from Rajasthan fields

Vol 13, PW 7 (10 Sep 09) Midstream & Downstream
     

Ahmedabad-based Deep Industries is in talks with GAIL for the supply of gas from three marginal fields in Rajasthan, which it operates through service contracts on behalf of ONGC.

“I cannot tell you how much we will be supplying to GAIL,â€‌ confirms Deep, “or from where because we are still in talks, nothing is finalised.â€‌ Deep’s discussions with GAIL come amid preparations to begin producing up to 50,000 cm/d of â€کnew’ gas from Ghotaru, Bankia and Kharatar, three marginal ONGC fields near Jaisalmer in northwestern Rajasthan, on the border with Pakistan.

PETROWATCH learns that in addition to several rounds of talks with GAIL, Deep is also looking at the possibility of setting up a small power plant of between 6-MW to 10-MW. Deep is tentatively hoping it can start production from April next year (2010).

In the last week of August, the company completed the purchase of 41,000 square metres of private land near the Bankia field to set up a gas processing plant, which the company wants to connect to a 70-km long pipeline network linking all three fields. For that though, it needs RoU (Right of User) permission from the state government.

“We are expecting it anytime now,â€‌ says Deep. “Once we get permission we will start compensating local landowners and begin laying the pipeline network.

â€‌ Though this activity is expected to start in December this year, the company has not yet finalised the pipeline diameter size or the material to be used. One option under consideration is to use GRE (Glass Reinforced Epoxy) pipes.

“These are lightweight, corrosion free and can be laid much faster compared to mild steel pipes,â€‌ says the company. Located in the Thar Desert, the 15.26-sq km Ghotaru, 19-sq km Bankia and 63-sq km Kharatar fields are in a 100-sq km area about 70-km from Jaisalmer.

“Kharatar is hardly 500 metres from the Indo-Pak border,â€‌ says Deep. ONGC estimates Ghotaru holds 972m cubic metres of in-place reserves, Kharatar 316m cubic metres and Bankia 152m cubic metres.