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ONGC seeks buyers for natural gas

ONGC seeks buyers for natural gas
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Oil and Natural Gas Corporation (ONGC) intends to sell 15,000 standard cubic metre per day (scmd) of gas from the marginal gas fields in Gamij near Kheda. The public sector major will sell the gas from the field for a period of five years.

For this purpose, the state-run energy explorer invited fresh bids from interested gas consumers after facing the delay of almost a year for successful implementation of direct marketing of the gas.

According to the tender issued by the firm, the non-APM (administered price mechanism) gas price issued by the Ministry of Petroleum and Natural Gas (MoPNG) would be the price of the gas under the bid.

In July 2012, the firm began the project under the Ahmedabad Asset of ONGC. The firm had earlier invited bids for the sale of 15,000 standard cubic meters per day (scmd) of gas as per non-APM gas price issued by MoPNG.

As many as 41 parties had bought the tender document and around 18 companies had submitted their bids while 14 of them could qualify for the bidding process, reports indicate. But in November last year, the MoPNG reportedly ordered to put the process in abeyance.

Bidders included some of the CGD players such as Adani and state-run GSPC Gas. According to industry insiders, MoPNG had found that a few of the bidders for Gamij gas did not hold the authorization from petroleum regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) as CGD player. Hence, the project was put in abeyance.

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