ONGC will set up small LNG plants to extract gas from remote areas, these cities have been selected
Public sector Oil and Natural Gas Corporation (ONGC) is considering setting up small-sized LNG plants to extract natural gas from wells not connected to pipelines. The company has identified five locations in Andhra Pradesh, Jharkhand and Gujarat to set up such plants near gas wells. These plants will convert gas extracted from underground into liquefied natural gas (LNG). This LNG will be transported by cryogenic trucks to the nearby pipeline where it will be reconverted to gas state. It will then be supplied to power plants, fertilizer units or city gas retailers.
Plants will be set up here
ONGC has issued a tender to manufacturers/service providers to use such natural gas. In the tender, two locations in Rajahmundry, Andhra Pradesh and Ankleshwar in Gujarat have been identified to set up small-LNG plants. Apart from this, one place each has been identified in Bokaro, Jharkhand and Cambay, Gujarat. ONGC said in the tender document that there is an extensive network of pipelines in the country. This network of pipelines connects the supply and demand centers. Despite this, there is a large amount of gas which is not connected to the pipeline. It is necessary to use them to increase domestic supply and meet the needs. It said that the amount of this type of trapped gas ranges from 5,000 to 50,000 standard cubic meters per day. They can be produced for five years.
Bids invited for this work
The tender invites bids from manufacturers and service providers to set up a small-scale LNG plant on a BOO (build, own and operate) basis to produce LNG, and transport the produced LNG to consumption sites through cascades (high-pressure gas cylinder storage systems)/tankers for about 250 km. Apart from this, it also includes converting LNG back into gas and then putting it into the existing gas distribution grid or directly supplying it to bulk consumers. More than 90 million standard cubic meters of natural gas is produced in the country every day. It is used to generate electricity, make fertilizers and convert it into CNG for running vehicles and as piped cooking gas for cooking. But domestic production meets about half of the demand. ONGC is India’s largest crude oil and natural gas producer. The company is investing billions of dollars to reduce India’s dependence on imports and boost production. Before the issuance of this tender, the company had partnered with Indian Oil Corporation (IOC), the country’s largest fuel retailer, to set up a small-sized LNG plant near its Hatta gas field in the Vindhya basin in Madhya Pradesh.
