GSPC to sell ANG to Orient Glaze

The state owned Gujarat State Petroleum Corporation Ltd (GSPC), has entered in an agreement with Orient Glaze to sell associated natural gas (ANG) at the rate of 10,000 standard cubic meters per day (SCMD) available from field located at Dholka for the next 10 years.

Orient Glaze is expected use this gas for its ceramics plant to be set up near Dholka.

"We have already signed gas sales agreement with L&T-Joshi Technologies Inc., oil field services for supply of associated natural gas from Dholka field. The gas sales agreement has been executed with the successful bidder.,"said D J Pandian, managing director, GSPCL.

GSPC will earn a revenue of around Rs 20 crore over the next 10 years through the deal. Evaluation of bid for supply of ANG was based on the weighting price substantially as well as based on the most advantageous offer including on time off-take of ANG by the bidder.

Orient Glaze is expected to pay between Rs five-six per SCMD for 10,000 SCMD of gas for the next 10 years.

The ANG will be delivered from the delivery point at gas metering station at Dholka to Orient Glaze, who shall make all proper and adequate arrangements for receiving the gas at its facility at its own risk and expenses.

The delivery pressure of ANG shall be at a gauge pressure of two kilogram per square centimeter at delivery point. The quantity of ANG available from Dholka field is 10,000 SCMD with a minimum net calorific value of 8,900 kilo calories per standard cubic metre.

According to the bid documents, the ANG have methane in the range of 50 per cent to 60 per cent by volume, other gaseous and hydrocarbons not more than 25 per cent, non-combustible gases other than hydrocarbons including nitrogen, carbon dioxide not more than 15 per cent, no free water is present, net heating value will not be less than 8,900 Kcal/SCM.