SAIL in talks with ONGC for CBM from Bokaro

Vol 20, PW 18 (01 Jun 17) News in Brief

Steel Authority of India (SAIL) is in talks with ONGC for CBM supplies to its Bokaro Steel Plant in Jharkhand as it prepares conversion of dirty coal-fired blast furnaces to clean gas.

"Informally ONGC has told us production will begin within a year," adds SAIL. "For the past one year we have been talking." With its 35,000 strong workforce spread across 11-sq km the 4.5m t/y Bokaro liquid steel plant is among India's largest and potentially a prize catch for CBM from BK-CBM-2001 which ONGC (80% and operator) shares with IndianOil (20%).

"Only with more information from ONGC on (CBM) availability, pipeline connectivity and price can we go ahead," adds our source. ONGC's annual report for 2015-16 promised first CBM from BK-CBM-2001 this fiscal or before March 31 (2018) with projected 'peak' output of 900,000 cm/d and 750,000 cm/d 'plateau' output from 141 planned wells.

Since then the number of (planned) wells has increased to 155 and the original Rs823cr ($137m) drilling budget has increased by 20%. ONGC and IndianOil directors need to approve the cost escalation before awarding a drilling contract to UK-listed Greka Drilling.

LNG Summit