The Hindu Business Line : ONGC plans to hike LPG output capacity at Hazira plant by 50 pc

ONGC is planning to enhance its LPG production capacity at its Hazira plant by about 50 per cent initially. The company, which proposes to expand the capacity by November, has tied up with GE for technical collaboration, a company official said.

The total processing capacity of the Hazira plant is 46 million standard cubic metres per day (MMSCMD), which includes LPG, kerosene, and diesel.

The company is currently using close to 40 MMSCMD of its processing capacity in the plant.

The LPG production is four MMSCMD, which ONGC plans to increase to six MMSCMD by November.

On the tie-up with GE, the official said that GE has been assigned the job of suggesting technical parameters, so that the processing cost could be brought down and overall cost of production minimised.

Explaining the reasons behind the move, the official said that it was part of the company's plans to look at retail marketing of LPG. This exercise was to prepare for the future demands, he added.

ONGC's Hazira gas-processing complex consists of facilities for receiving natural gas along with associated condensate from an offshore field. The total capacity expansion of the plant is likely to be implemented in two phases and will cost the company close to Rs 110 crore.

Besides plans to increase the production capacity, the company is also looking at refurbishing its original equipment manufacturing (OEM) facilities.

ONGC has three OEMs, of which two are active and one is dormant.

Demand for gas has been seeing a northward movement the official said, adding that the short-term demand projection stands at 52 MMSCMD.

The company has eight trains for the processing purposes, commissioned over a period of 15 years. ONGC is planning to add two more trains to meet the demand projections.

To ensure that the feedstock is also in place to meet the increase in production capacity, the company is also looking at revamping its marginal fields so that the total processing capacity goes up to 55 MMSCMD. Currently, it is sourcing gas from the Bassien fields.

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