Oil India Ltd, the state explorer that lists on stock exchanges tomorrow, plans to set up a mini-liquefied natural gas (LNG) plant to monetise stranded natural gas in out-step fields in Assam, OIL Chairman and Managing Director N M Borah said on Tuesday.
OIL, which earlier this month sold 2.64 crore equity shares in an initial public offer (IPO) to raise Rs 2,772 crore, plans to install a mini-LNG plant at places where gas evacuation/transmission facilities are currently not available, he said.
The unit will convert gas into liquid fuel that can be transported by truck and tankers.
“We are forced to flare small quantity of gas from wells at isolated places in Assam as they are not connected to the gas pipeline network. We have been approached by companies that say there is technology available to in-situ convert the gas into LNG and transport it in trucks to consumption centres,” he said.
About 50,000 to 100,000 cubic meters per day of gas, that is currently being flared, is targeted to be monetised at each location.
OIL is targeting to place orders for the mini-LNG plants before the end of current fiscal and it may take another year for delivery as the equipment is required to be designed and customised to suit the company’s requirements.