ONGC India Will Pump Gas Through March 2008 in South Bassein Field

GAIL (India) has urged Oil and Natural Gas Corporation (ONGC) to defer the shutdown of its largest gas field off Mumbai till March 2008 to enable power and fertilizer companies to achieve their yearly targets.

Official sources said ONGC planned to shutdown two production complexes at the Bassein field during January-February to hook-up new facilities. The closure could possibly lead to a fall in natural gas availability from 42 million standard cubic metres a day to 29-31 mscmd.

The sources said GAIL had written to the Petroleum and Natural Gas Ministry that it would have to cut gas supplies to power and fertilizer units by 30-55 per cent during the shutdown period.

Fuel supplies to other users would be cut by as much as 89 per cent. “We have requested ONGC to defer the shutdown keeping into account the concerns of end-user industries,” the letter stated. In a separate letter, GAIL Director (Marketing) B. C. Tripathi said the proposed shutdown fell in the last quarter of the financial year and this would adversely impact achievement targets of GAIL, power and fertilizer sectors. ONGC plans to shut the BPB process complex from January 1 to 25 and the BPA complex from February 14 to 28 to hook-up the South Bassein field and the Vasai East field to the production system.

The shutdown of the BPB facility will reduce gas output by 13.5 mscmd and the closure of the BPA facility to cut output by 11 mscmd. As against current production of 42 mscmd, gas supply is expected to be in the range of 29 to 31 mscmd during the shutdown period. ONGC has invested Rs. 2,937 crore in additional development of the South Bassein field and another Rs. 1,688 crore in the Vasai East field.