ONGC has chalked out plans to upgrade its desalter plant in Nawagam in Gujarat at an estimated investment of about Rs 39 crore.
The Nawagam unit processes crude oil from Ahmedabad and Mehsana assets of ONGC with a combined daily production of about 10,500 tonnes, before it is dispatched to Indian Oil Corporation (IOC) Koyali Refinery in Vadodara.
Earlier the acceptance limit of basic sediments and water (BS&W) by the refinery was less than 1 per cent, however post Adminstrative Price Mechanism (APM), the limit is 0.2per cent.
In the past ONGC has paid penalties to the tune of Rs 65 crore for not being able to maintain the BS&W level less than 0.2 per cent in crude.
From October 2007 onwards however, the company has bee able to meet the specifications of the refinery and not paid any penalty thereon.
A consortium of Sairama Engineering Enterprises and Mega Engineering Infrastructures Ltd have been awarded the project.
Speaking on the occassion A K Hazarika, director onshore assured that the project will be completed in the timeframe of 24 months
Stressing on the needs for green fuel, he said the company is looking at looking at Kutch for setting up more wind farm projects. Earlier this month, ONGC installed 50 MW wind farm project in the region and is utilising the power generated from it for its Ankleshwar, Ahmedabad and Mehsana assets, according to Hazarika.
