KRIBHCO needs extra 2m cm/d gas from 2009

Vol 9, PW 22 (23 Feb 06) News in Brief

KRIBHCO needs 2m cm/d extra gas from 2009 to maintain existing production levels and expand capacity.

Its actual requirement is much higher at 5.5m cm/d. Company officials are concerned that domestic supplies are dwindling and are talking to ONGC, Shell and Reliance for more gas.

Some of our supply contracts end in 2008, we hear. KRIBHCO is disappointed that ONGC declined its offer to pay more than the $4.6 per mmbtu paid by Torrent Power in Gujarat for gas from Panna, Mukta and Tapti.

On a net back basis we would have given them a better price, we are told. Like other consumers, KRIBHCO is waiting for Reliance and GSPC gas after 2007.

Shell has offered spot cargo LNG at $10 and $12 per mmbtu. KRIBHCO buys 5m cm/d for its two factories at Hazira and Shahjahanpur from BPCL, GAIL, GSPC and Gujarat Gas.