Business Daily from THE HINDU group of publications Friday, Jan 19, 2007 ePaper |
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Corporate
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Alliances & Joint Ventures
Our Bureau
New Delhi , Jan. 18 Shell is negotiating with ONGC for setting up coal gassification facilities in the country. Shell is a global leader in coal gassification technology. The company may also participate in the next round of bidding for coal bed methane (CBM) blocks. Shell did not participate in the last round of bidding (CBM Policy-III) in 2006. Talking to newspersons on the sidelines of a Petrotech-2007 conference here, Mr Vikram S. Mehta, Managing Director of Shell India, said, "We are in serious discussion with ONGC for setting up coal gassification facilities. However, to set up such a facility we need to ensure the availability of the right quality of coal. Also there are several legal procedures to be fulfilled both at the Central and the State levels which we are currently working out." It may be mentioned that coal gassification was part of the multi-point memorandum of understanding signed by ONGC and Shell in January 2006. Both the companies have proposed setting up a pilot surface coal gassification project.
Locations
A few locations were also shortlisted for the project. The following days, however, witnessed differences between both the companies on a number of issues previously agreed upon. Shell had also deviated from its proposed plan to bid in CBM-III round in collaboration with ONGC. On the possibility of Shell's participation in the next bidding round for CBM exploration, Mr Mehta said, "We are interested in CBM sector." He, however, did not clarify whether the company will partner with ONGC in such a venture.
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