Jodhpur needs power more than CNG

Vol 14, PW 10 (04 Nov 10) Midstream & Downstream

Rajasthan tourist towns Jodhpur and Jaisalmer are full of great business opportunities for those with an aching desire to break into the camel safari sector.

But for Ahmedabad-based Deep Industries they’re not so good. PETROWATCH learns Deep has shelved its plans to set up retail gas networks in these two towns, as it believes there is insufficient gas demand.

Instead, it has decided to set up a gas-fired power station to use future gas from three marginal Rajasthan fields for which it has ONGC service contracts. Work on the proposed power station could begin by June next year (2011).

“We have decided to set up a power station in Rajasthan,” confirms Deep, “but haven’t yet finalised its capacity. It could be around 10-MW.

We want it to be ready by December 2011.” Right on cue, that’s when Deep also expects to begin producing first gas from five wells in its 15.29-sq km Ghotaru marginal field and two wells in its 23.43-sq km Bankia field.

Deep signed service contracts with ONGC on July 19, 2007 for Ghotaru, Bankia and the 61.28-sq km Kharatar field, located barely 500-metres from India’s border with Pakistan. Initial production from these fields is expected to be approximately 40,000 cm/d, rising within two years to 70,000 cm/d.

Deep had earlier hoped to sell this gas to hotels and restaurants in Jodhpur and Jaisalmer and had hired IndianOil to do Detailed Feasibility Reports (DFR) for these cities. IOC in turn passed these jobs onto Spain’s Mercados Energy EMI.

“But now we’ve put these DFRs on the backburner,” says Deep, “as we’re going ahead with our power station plans.” Deep is also talking to several “power brokers” to sell future electricity generated from the proposed station.