ONGC and Cairn plan Nagayalanka gas sales

Vol 20, PW 24 (24 Aug 17) Exploration & Production

ONGC is doing all it can to show it's making an effort to kick-start development at the onland Nagayalanka discovery block KG-ONN-2003/1 - terrified the DGH will drastically reduce its size.

ONGC and JV partner Cairn India are preparing to begin selling gas from the block soon, possibly from next month (September), confirms an ONGC source. On August 10, ONGC invited EoIs to assess demand for 34,600 cm/d of gas on an 'as-is-where-is' and 'fall back' from the Nagayalanka field, 90-km from Vijayawada in Andhra Pradesh's coastal Krishna district.

Gas availability is expected from September 2017 over a 16 year period until 2032. According to the EoI paper, ONGC believes gas production will hit 95,000 cm/d by 2019-20 and then remain between 83,200 cm/d and 51,500 cm/d from 2020-21 to 2030-31 before declining to 41,500 cm/d by 2031-32.

"Depending on field conditions gas quantities and availability may change," we hear. "But we're hoping to increase availability as more wells are added." ONGC expects gas-based power stations, fertiliser factories, gas retailers, steel mills, refineries and petrochemical complexes to respond.

ONGC must provide gas at the delivery point and the successful bidder will decide whether to evacuate it using a pipeline or by converting to CNG. In its five-page EoI, ONGC clarifies this is not a bid to buy gas but to assess demand.

Anyone interested has until August 25 to respond.