ONGC promises 20,000 cm/d from Gamij

Vol 16, PW 21 (16 May 13) Midstream & Downstream

ONGC believes it can produce more than 20,000 cm/d for sale to gas retailers and local factories from the 70-sq km Gamij marginal oil and gasfield straddling the Gandhinagar and Kheda districts near Ahmedabad.

On May 7, ONGC published a tender offering 15,000 cm/d from Gamij, its second attempt to sell this associated gas, produced from around 70 oil wells pumping out an average 2800 b/d. ONGC is offering to sell the gas at a wellhead price of $5/mmbtu for five years with first supplies beginning from the date of a Letter of Award (LoA).

But ONGC sources in Ahmedabad tell us Gamij could produce another 5000 cm/d in addition to 15,000 cm/d from November this year after the installation of a new Rs30cr ($5m) Gas Gathering Station (GGS) under an ongoing revamp of 33 group gathering stations across the Ahmedabad asset. Land for the new GGS was disputed until ONGC forcibly took possession with police help from a stubborn landowner who refused to hand it over despite three acquisition notices from local authorities.

“Our target,” ONGC says, “is to invite bids for the additional 5000 cm/d by the end of this calendar year.” Until then local CGD players Adani Gas, GSPC Gas, Sabarmati Gas, Charotar Gas and several glass, ceramic and sodium silicate factories will have to be content with bidding for 15,000 cm/d that ONGC will make available from another gas collection point (GGS-3) at Halderwas village, around 40-km from Ahmedabad.

Most associated gas from Gamij is either re-injected into producing oil wells or flared.

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