The Oil and Natural Gas Corporation’s (ONGC) Eastern Offshore Asset (EOA) is all set to give a major push to the gas-based industrial units by supplying natural gas to the tune of five million cubic metres per day from February next.
As many as four wells at the S1- Vashishta offshore project site are gearing up for the exploration of its expected reserves of 15.95 billion cubic metres of natural gas and ONGC is planning to host a big event to mark the commencement of functioning of one of its major projects on the east coast.
“With regard to the sale of natural gas, we are going to give top priority to industrial units in Andhra Pradesh. Only the remaining reserves will be put up for sale in the neighbouring States,” Alok Nandan, Executive Director and Asset Manager of the ONGC’s EOA, told The Hindu .
S1-Vashishta is part and parcel of the investment to the tune of ₹40,000 crore put in by the ONGC here to explore natural gas of 21.95 Million Metric Standard Cubic Meter per Day (MMSCMD) and oil of 75,000 barrels per day (BPD).
A terminal has been built at Odalarevu village near Amalapuram. Laying pipelines connecting the wells and the terminal are nearing completion. Similarly, the Gas Authority of India (GAIL) has undertaken the project of connecting the terminal to its pipeline network to transport the natural gas.
“About 97% of the works have already been completed and we are making arrangements for a grand launch of the project in mid-February,” he explains.
Buyers’ meets
Making it clear that the GAIL is just a carrier, Mr. Nandan says tenders will be called for at the national level. ONGC is also going to host buyers’ meets in different parts of the Telugu States before issuing the tender notification.
