Assam Gas needs 6.1m cm/d for $170m expansion

Vol 16, PW 1 (26 Jul 12) Midstream & Downstream

Assam Gas is in talks with Oil India and ONGC to double its gas supplies from 6m cm/d to 12.1m cm/d.

PETROWATCH learns the Duliajan-based gas retailer has set aside Rs800cr ($170m) to fund an ambitious gas supply expansion programme in Guwahati district. However, company plans could yet be derailed by scarcity of supplies.

“The gas supply situation is very bad,” says a source. “We can’t invest if gas is not available; Oil India and ONGC have not given any assurance they can deliver.

” Despite this, Assam Gas is introducing CNG to this North-Eastern state for the first time, with plans to commission its first CNG station in October in Dibrugarh district. By the end of this fiscal on March 31, 2012, Assam Gas says it will commission its second CNG station in Dibrugarh.

“Initially, we think we can sell up to 1000 cm/d as CNG,” he adds. “But in the next two years, this will go up to 10,000 cm/d, sold mainly to auto rickshaws and cars.

” Of the 6m cm/d it currently receives, Assam Gas pipes 640,000 cm/d gas to 30,000 homes in Dibrugarh, Tinsukia, Sibsagar, Jorhat, Golaghat and Cachar, with plans to increase the number of domestic connections by 1000 a year. It also supplies 400 industrial users, mainly tea plantations; the rest is sold to the 119.5-MW Namrup Thermal Power Station (800,000 cm/d); 120-MW Lakwa Thermal Power Station (500,000 cm/d); 291-MW NEEPCO power station at Kathalguri (1.4m cm/d) and Eastern India Powertech at Silchar (150,000 cm/d), as well as to Brahmaputra Valley Fertilizer Corporation (1.72m cm/d) and Assam Petrochemicals (150,000 cm/d).