Oil India looks for a gas storage consultant
Gas rationing is one option to deal with supply disruptions, but ensuring sufficient strategic reserves is better.
That's why Oil India is planning Underground Gas Storage facilities (UGS) in Upper Assam and the Rajasthan basin. On October 2 (2024), Oil India invited offers for consultancy services to do a feasibility study to set up the facilities with an October 31 (2024) bid deadline.
"In line with the government's objective," reads the eight-page Scope of Work, "Oil India intends to develop a strategic UGS model using the oil and gas reservoirs in its operational areas, which should be self-sustainable economically." Oil India has already identified 15 reservoirs under three categories.
Whoever wins will have to evaluate the reservoirs and identify the surface infrastructure needed. They must also choose the top five most suitable reservoirs to study in more detail, though Oil India can ask for detailed reports on any other reservoirs at will.
"In India, we have underground crude oil storage facilities but nothing for gas storage," laments an Oil India source. In July 2023, oil secretary Pankaj Jain was quoted saying India was considering building gas storage to hedge against supply disruptions after India was forced to ration gas to fertiliser and other sectors after the Russian invasion of Ukraine in February 2022 hit imports.
Jain stressed that India would "probably need help from foreign companies" to build gas storage facilities and that a few companies had already been contacted. "Underground gas storage is the best option to guard against supply disruptions or price volatility," adds an industry source.
"We must learn from what happened in 2022." Oil India wants the consultant to carry out a detailed study in four phases: Phase-I (one week) will involve data collection and field visits; Phase-II (six weeks) involves technical evaluation and ranking of the chosen reservoirs; Phase-III (eight weeks) will involve creating a detailed storage, infrastructure and production plan for the top five reservoirs and field visits; Phase-IV (two weeks) will include presenting and submitting the report.