ONGC in deal with GSPCL for natural gas

Oil & Natural Gas Corp (ONGC) has entered into an agreement with Gujarat State Petroleum Corporation Ltd (GSPCL) for the sale of natural gas from its Olpad field in Ankleshwar.

The agreement, which was recently signed, is valid for three years. It can be renewed for another two years.

Speaking to DNA Money, NK Mitra, director (offshore), ONGC, said the agreement involves sale of 1.5 lakh million standard cubic metres a day of natural gas.

The price has been fixed at $4.75 per million British thermal unit (mBtu).

”The agreement has the option to review the price at the end of three years,” said Mitra.
Ankleshwar is one of the biggest oil and natural gas producing asset for ONGC. The fields first went into production in 1961.

A substantial portion of oil and gas comes from this area, with the entire state of Gujarat being the leading onshore producer of crude oil and natural gas in India.

The state contributes 17.9% of the total oil production and has a 10.4% share of the total gas production in the country.

The price being offered by ONGC from Oplad is equivalent to what it has been getting for natural gas produced from the Panna, Mukta and Tapti (PMT) fields.

The PMT fields are being operated by a joint venture comprising ONGC, Reliance Industries Ltd (RIL) and British Gas.

The joint venture, from April 1, will sell 5.4 million cubic metres a day (mmscmd) of gas from PMT fields to GAIL (India) Ltd at $4.75 per mBtu. This was a dollar more than the price that was fixed last year.

Stepping on gas

The pact is for three years and has the option to be renewed for two more years. The price offered by ONGC from Oplad is equivalent to what it has been getting for natural gas from the Panna, Mukta and Tapti fields.

The PMT fields are being operated by a joint venture comprising ONGC, RIL and British Gas.