Good interest expected in ONGC gas tender

Vol 17, PW 21 (05 Jun 14) Midstream & Downstream

ONGC has invited bids for an additional 30,000 cm/d associated gas produced from two fields in Gujarat.

ONGC began selling tender documents on May 27 and will continue selling them till June 16 for 20,000 cm/d low pressure gas from the Linch field, 10-km from Mehsana town. For nearby Nandasan field tender documents to supply 10,000 cm/d are available from June 3 to June 23.

Additional gas at both fields is the result of drilling nine to 10 development wells a year over the past two or three years. “We don’t want to flare gas,” says ONGC.

He adds ONGC expects a good response to its tenders though it is offering just one-year contracts for the gas, with a reserve price of $5/mmbtu. "Linch and Nandasan are established fields," he says.

"There are enough local buyers. We are offering one year contracts because of the uncertain availability.

” ONGC will warn potential customers to have 'dual fuel' capability so they can switch to other fuels if there is ‘force majeure’ or a reservoir failure. A pre-bid will be held on July 1 at Mehsana for bidders interested in Linch gas and bids should be in by July 30.

A pre-bid for Nandasan gas will be held on July 8, also in Mehsana, and bids must be in by August 6.