ONGC, Reliance in talks with customers to sell east coast gas

India’s Oil and Natural Gas Corp Ltd and Reliance Industries Ltd have started discussions with buyers to sell natural gas from their fields in the Bay of Bengal that are expected to start production over the next three years. The main reason behind this is to transport the natural gas from “EAST COST” to “WESTERN INDIA”.

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ONGC want to use the pipeline to reach customers in West India to sell gas. We are talking to some of them for contracts,” Shashi Shankar, chairman and managing director of ONGC, said on the margins of the International Energy Forum.ONGC plans to use Reliance Industries’ 1,375 km pipeline connecting Kakinada on the east coast to Bharuch in Gujarat in the west.

Reliance built the pipeline in 2009, but has been operating at very low capacity for several year due to a drastic fall in output from the company’s venture in the Krishna-Godavari basin in the Bay of Bengal.2018-04-10T120813Z_1_LYNXMPEE390YW_RTROPTP_2_INDIA-BUSINESS.JPG.cf

Between 2021 and 2023, India would be hitting at a level which will be 50 mscmd (Million Standard Cubic Metres Per Day) incremental. So India would be producing in the range of 140 mscmd per day, said Atanu Chakraborty, said the head of Directorate General of Hydrocarbons, India’s upstream regulator.India’s current total consumption of natural gas at end of March 2018 stood at 145 mscmd.

Refrences

IN. (2018). ONGC, Reliance in talks with customers to sell east coast gas. [online] Available at: https://in.reuters.com/article/india-ief-ongc/ongc-reliance-in-talks-with-customers-to-sell-east-coast-gas-idINKBN1HH1U0?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FINbusinessNews+%28News+%2F+IN+%2F+Business+News%29 [Accessed 10 Apr. 2018].

News, R. (2018). ONGC, Reliance in talks with customers to sell east coast gas – India Business News. [online] Business-support-network.org. Available at: http://www.business-support-network.org/indiabiz/ongc-reliance-in-talks-with-customers-to-sell-east-coast-gas/ [Accessed 10 Apr. 2018].

Anon, (2018). [online] Available at: http://www.hindustantimes.mobi/top-news/ongc-reliance-in-talks-with-customers-to-sell-east-coast-gas/ [Accessed 10 Apr. 2018].

 

 

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