ONGC revives Hazira SBM plans

Vol 11, PW 24 (17 Apr 08) News in Brief
     

ONGC is reviving plans to set up a Single Buoy Mooring system off Hazira to export naphtha extracted from Bassein gas.

PETROWATCH learns ONGC wrote to Gujarat maritime authorities on February 29 asking for a location off Hazira in 30 metres water depth where it could locate the SBM. For the past eight years ONGC has been exporting naphtha using Reliance’s SBM at Hazira, for which it pays Rs1.2cr ($300,000) rent every 48 hours.

Every month ONGC exports three tankers of naphtha through the Reliance SBM for which it pays about Rs35cr ($8.7m) a year in rent and now believes it would be sensible to have its own SBM. ONGC first applied for a SBM location off Hazira in August 2006 but never followed up and the location was offered to Reliance the next year.

ONGC extracts about 1.2m t/y naphtha from Bassein gas, all of which is exported. When approved, ONGC will deploy tankers British Unity, British Chivalry, Nord Sound, Torm Ragnhild and MH DL Rose to export Bassein naphtha.

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