The Hindu Business Line : ONGC to expand Tripura capacity

ONGC plans to invest Rs 400 crore to step up natural gas production capacity in Tripura from 1.7 million cubic metre to 4.5 million cubic metre by 2007.

Almost 90 per cent of the production in the State will be used for captive consumption in the proposed 750 MW gas-based power plant.

Apart from drilling four new wells, the investment plan also includes setting up of three new gas storage stations and laying a pipeline connecting the production wells to the power plant. The existing two gas storage stations will also be revamped.

The power project is being taken up in collaboration with IL&FS and Tripura State Power Development Corporation.

Till now ONGC has been struggling to keep production to bare minimum levels. According to sources, despite reducing its production to 1.3 million cubic metres in recent years, the company has often been forced to flare a portion of the produce due to low off-take. While GAIL India continues to be the major customer, ONGC has been burdened with idle capacity due to low investment in the State.

At least eight private and public sector companies have left their allocated gas quota unutilised for a number of years.

Incidentally, the non-utilisation of quota and idle capacity have helped the Union Ministry of Petroleum and Natural Gas finally to okay ONGC's investment proposal in power generation.

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