ONGC lucky with Gujarat gas sale but not in Assam

Vol 17, PW 22 (19 Jun 14) Midstream & Downstream

ONGC has got lucky with its attempt to sell gas from a marginal field in Gujarat but the same isn't true of repeated efforts to sell gas from Assam.

When ONGC opened price bids on May 30 for 15,000 cm/d for five years from Gamij near Ahmedabad, private company Astron Zircon, based at Himatnagar, was highest bidder quoting $11.10/mmbtu but for only 5000 cm/d. Next was Morbi-based Akash Ceramic, offering to take the entire 15,000 cm/d but at $9.7/mmbtu.

Astron was also highest bidder in a separate tender for 6000 cm/d of Gamij gas, also available for five years. When price bids were opened on May 15, Astron quoted $10.10/mmbtu for 4000 cm/d.

Here too Akash came second quoting $9/mmbtu for the entire 6000 cm/d, followed by Mumbai-based JP Chemicals quoting $7/mmbtu. ONGC’s Ahmedabad asset wants management permission to offer the second highest bidder any gas left over after the highest bidder takes gas.

“But the second highest bidder must match the highest price quoted,” says an ONGC source. In Assam ONGC had no luck with its tender to sell 15,000 cm/d from Borholla for five years, receiving no bids by the June 2 deadline.

In 2012-13, ONGC also received no bids for gas produced from a different set of Assam fields.

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