ONGC can't find 'rich' LNG

Vol 13, PW 22 (22 Apr 10) News in Brief

ONGC is struggling to secure ‘rich’ LNG supplies to grow its fledgling petrochemicals business.

PETROWATCH learns ONGC held preliminary talks in Delhi with a delegation from Iran at the GAIL-promoted 6th Asia Gas Partnership Summit on March 22 and 23. “Talks have gone no further,” admits ONGC.

“Iran was a strong hope but it isn’t easy to deal with them. Still, we are hopeful.

” India’s traditional LNG supplier Qatar-based RasGas is supplying only ‘lean’ LNG (where butane and propane have been stripped out) in its 2.5m t/y ‘second tranche’ of LNG shipments to Petronet-LNG’s 10m t/y Dahej terminal. This ‘lean’ gas is no use to ONGC’s upcoming Dahej petrochemicals factory, as it needs the missing fractions.

But Qatar’s first tranche of 5m t/y to Dahej contains ‘rich’ LNG, which ONGC can use. ONGC also wants ‘rich’ LNG for its proposed LNG terminal and associated petrochemicals factory at Mangalore.