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“We are going to sign a memorandum of understanding with BPCL soon and already have an arrangement with Mitsui. A feasibility study is going on in this regard and our plan is to come up with a five-mt terminal,” ONGC’s Chairman and Managing Director Sudhir Vasudeva told reporters on Wednesday.
The company is in talks with New Mangalore Port Trust for a location in the region. If it works out, this would be ONGC’s foray into the LNG sector after a failed attempt to set up a terminal way back in 2005. “We would like to cash in on the increasing demand for natural gas,” he added.
The operational LNG terminals in India include Petronet LNG’s 10-mt terminal at Dahej in Gujarat, Shell’s 3.6-mt terminal Hazira and Ratnagiri Gas and Power Pvt Limited’s (RGPPL) five-mt facility at Dabhol in Maharashtra, while Petronet’s Kochi terminal is set to be commissioned soon.
Considering the rising demand for natural gas in India, many other players, too, have lined up their plans in the LNG sector: Gujarat State Petroleum Corporation’s (GSPC) and Adani Group’s five-mt Mundra terminal, APM Terminal’s plans at Pipavav, Indian Oil Corporation and Tidco’s Ennore LNG Terminal, GSPC’s Okha terminal, Shapoorji Pallonji and Hindustan Petroleum Corporation’s plans at Kodinar, five-mt Gangavaram terminal by Petronet and another five-mt terminal planned by Hiranandani group at Haldia.
ONGC’s plans coincide with the setting up of the Kochi-Mangalore and Mangalore-Bangalore pipelines, extending the Dabhol-Bangalore pipeline by GAIL.
Eye on Mozambique
According to sources, ONGC is in talks to grab the 10 per cent stake owned by Videocon in Offshore Area 1 of the Rovuma basin field of Mozambique. Oil India Ltd is also is in talks with Videocon for the stake.
According to reports, Bharat Petroleum Corporation, too, holds a 10 per cent stake in the block, which has a reserve of more than 70 trillion cubic feet. The other players who are in talks with Videocon include Spain's Repsol, Royal Dutch Shell, BP, ExxonMobil and China’s Sinopec, said an agency report. Meanwhile, ONGC said that the development of its B-193 cluster would be completed in only 2013. This western offshore area includes the 13 clusters that ONGC is working on. Announcing the installation of a 13,000-tonne platform by Singapore-based Swiber Holdings, Vasudeva said: “The total cost of the project is over Rs 8,000 crore. Once developed, we would be able to produce 44 million barrels of oil production and 6 billion cubic metre of gas.”
