The Hindu Business Line : IOC plans mini liquefaction plants to exploit gas from marginal fields

Even though there is availability of gas in the marginal fields, the fields are not being exploited as either they are far from the pipeline network or the market.

Richa Mishra

New Delhi, June 12 Indian Oil Corporation Ltd is looking at various business options, including setting up mini liquefaction plants to source gas from the marginal fields of the country.

The company is currently studying all the three options — transporting through cascade, pipelines and liquefaction plants — for taking gas from these fields to the market.

Liquefaction is a process of converting natural gas into liquid so that its transportation becomes easier. The company wants to liquefy gas at the wellhead and transport it directly to the customer.

Speaking to Business Line, Mr B.M. Bansal, Director (Planning & Business Development), Indian Oil, said “We are studying the three options. Based on the viability of these options we would approach upstream companies like ONGC and Oil India and the Government for monetising the gas.”

Monetisation of gas means bringing natural gas to the markets through alternative means, including pipelines, so as to make commercial utilisation of it. The business model for sourcing this gas will depend on the location of the field, production of the gas, and proximity to the market, he said.

“If the marginal field is near the pipeline or market, then liquefaction may not be the best option. In such a situation we may opt for injection into the existing pipeline or lay a new pipeline,” he said.

Even though there is availability of gas in the marginal fields, the field are not being exploited as either they are far from the pipeline network or the market. As regards access to liquefaction technology, which is currently available with select European and US companies, he said, “we would go for technological tie-ups”.

In the pipeline

Enthused by its success with the ‘LNG at Doorstep’ facility, Indian Oil is now looking at other prospects of transporting gas. The project included transportation of gas from the tap-off-point at Dahej, a dedicated on road ‘LNG train’ of specially designed cryogenic tanker trucks between Dahej and Pen, and storage tanks and re-gassifying vaporisers at H&R Johnson, Pen. The project is supported by partners such as the Petroleum & Explosives Safety Organization, Chart Industries Inc, USA and Petronet LNG Ltd.

Indian Oil already has an understanding with Deep Industries for exploration and marketing of gas.

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