ONGC looking for Russian technology for coal gassification project

Integrated oil major Oil and Natural Gas Corporation Ltd (ONGC) which had signed a memorandum of understanding (MoU) with an state government enterprise Gujarat State Petroleum Corporation Ltd (GSPCL) last September for a coal gassification project, has now started looking for appropriate technology from Russia for the project.

C K Koshy, chairman of GSPCL, told Business Standard that ONGC has been looking for technology transfer to kick off the project through a joint venture company. The joint venture is yet to take shape but the activities for the project at present is being undertaken by a non-incorporated entity.

"ONGC, the significant partner in this project, has been looking for technological expertise from Russia while GSPCL has started working on the project recently as we have found a rich reserve of coal between Tharad and Patan in Banaskantha district of Gujarat," said Koshy.

It may be recalled that about a year back, Subir Raha, chairman and managing director of ONGC, has put forward the proposal for starting a coal gassification project in north Gujarat.

According to state government sources, the project may attract Rs 5,000 crore in the next four years from ONGC apart from investment by the state government through GSPCL. The huge coal reserves in the Tharad-Patan stretch has been lying at a very low level and is difficult to mine until ONGC comes across appropriate technology for coal gassification.

Meanwhile, in another development, Gujarat State Petronet Ltd (GSPL), a subsidiary of GSPCL and responsible for laying gas pipeline across Gujarat through its gas grid plan, has initiated talks with Indian Oil Corporation (IOCL) for initiating a joint-venture project for laying 80 km long gas pipeline as part of Dahej-Uran gas pipeline. Sources said that IOCL has shown keen interest for participating in the project.

"We are talking to IOCL for the proposed project and GSPL is optimistic about having an alliance with the petroleum major which will help both the companies," said Koshy. A senior IOCL official in Ahmedabad also confirmed the development and said, "IOCL which holds a stake in the LNG terminal run by a consortium of companies under the banner of Petronet LNG Ltd, would benefit from this pipeline as it will help IOCL carry gas to other parts of the country."

Interestingly, GAIL India has been working on executing the Dahej-Uran gas pipeline and a re-tender process has been initiated only this week with controversies on the earlier tender for HSAW pipes.