Poor quality of ONGC gas forces switch to LNG

Vol 4, PW 4 (29 Mar 00) News in Brief

Poor quality gas from ONGC is forcing industry to look to LNG.

"We have been taken aback by the deteriorating quality of gas supplied by ONGC", DK Verma of Rashtriya Chemicals and Fertilisers tells Business Line newspaper, "It has affected our production capacity and we are losing production of 1,000 tonnes a day." Verma said Rashtriya will sign a Gas Sale Agreement with Enron for LNG to the company's Thal unit, beginning December 2002. Rashtriya has already signed an agreement with the Total-Tata-GAIL combine for supply to the company's Trombay unit in 2003.

ONGC gas supplies to Rashtriya have slipped to 2.6m cm/d from 3.5cm/d.