Steel Exchange India is learnt to be getting gas from the ONGC's isolated fields in the KG Basin under direct marketing.
The upstream oil major is said to be supplying the gas at the rate of 10,000 standard cubic metre per day. The fist of these fields at Vygreswaram in East Godavari district was put on production on February 27th, reports suggest.
ONGC has permission from the petroleum ministry to sell the gas directly and outside the administrative price mechanism to the consumers from the small and isolated assets that are away from the gas grid. Whereas the natural gas supplied to the grid is being marketed by GAIL.
ONGC has around 15 small and isolated fields in the KG Basin each having a potential ranging from 2,500 scmd to 30,000 scmd, according to a local spokesperson of the company.
The firm has already initiated direct marketing from such fields to consumers at Ahmedabad in Gujarat and Karaikal in Puducherry.
According to the spokesperson, ceramic units and other local industries are queuing up to purchase these small quantities of natural gas offered by ONGC. These assets reportedly comprise some of the exploratory as well as failed production wells.
Company officials said that though the incremental revenues from these assets are very negligible for a company like ONGC the same is expected to become substantial once the price revision takes place next year.