ONGC will increase its production of 1.2 million cubic metres by five million cubic metres gas per day additionally from its deep-water wells in the Eastern Offshore Asset located at Kakinada.
After establishing proven reserves from the offshore blocks of East Coast of India, presently gas is being supplied through GAIL’s KG Basin Grid.
After interacting with user-industries drawn from gas-based power plants, fertilizer and other establishments here on Saturday, ONGC Executive Director and Asset Manager of Eastern Offshore Asset Alok Nandan told The Hindu that they were investing about ₹35,000 crore over next few years in Kakinada offshore asset.
He said ONGC was confident of adding 15 million cubic meters of gas per day from mid-2019 onwards.
This being from deep-water fields, it would also entail pricing and market freedom for ONGC. Awarding of contracts for various works was at various stages of finalisation. Eastern Offshore Asset is business unit of ONGC located at Kakinada. It is mandated to administer production from all its oil and gas properties in the eastern offshore and also to manage the connected offshore facilities.
Mr. Nandan said they were allowed to sell with marketing and pricing freedom as per government guidelines.
The company is also faced with discovery of oil and gas over a large extent due to technical challenges like location in very shallow waters, some in medium and some in deep waters. “Hence, we have decided to fully gear up to take advantage of latest technological innovations and easing market conditions for conducive business,” he stated.
Mr. Nandan said being cleaner and more efficient fuel, the government had also been promoting industrial use of gas and encouraging ONGC to increase its production from new deep-water fields of East Coast.
The gas will be competitively priced with lowest of landed price compared to alternative fuels like LNG, imported naphtha, coal and fuel oil.
Andhra Pradesh Gas Infrastructure Corporation Managing Director Koya Praveen was present during the interactive session.
