Can anybody tell when British Gas India Chief Came to Chennai in Arpil. He made a statement on ONGC?

Question

He made a statement on ONGC and BG partnership exploration in KG Basin in Andhra Pradesh,India.

Answer 1

April 30,2005  

BRITISH GAS, which supplies natural gas to domestic and industrial customers in Gujarat and Maharashtra, is considering to enter South India.

The company is studying prospects of selling piped natural gas for domestic users and compressed natural gas for industrial and vehicular users in major South Indian cities, said Mr Nigel Shaw, CEO, British Gas India.

"We are looking at three southern States. But plans will depend on how much gas is available in 2007," said Mr Shaw. He said the company is looking for possible joint venture opportunities similar to its tie-up with GAIL (India) Ltd in Mumbai where it sells 300 million metric standard cubic metres a day (mmscmd) gas through Mahanagar Gas, its joint venture with GAIL. But plans will depend on tying up natural gas supplies.

In Gujarat, it sells 2.2 mmscmd through subsidiary Gujarat Gas Company Ltd.

Mr Shaw said British Gas, which is the largest liquefied natural gas supplier in North America, is also open to the idea of using Shell India's five million tonne Hazira terminal to bring in LNG into India in the future. He said, although many spot cargoes of LNG are available at short notices across the world, these supplies do not turn towards the gas-hungry Indian market because countries such as the US and Japan are willing to pay $6-7 per million standard cubic metres. India, on the other hand looks for paying less than $4.

In the upstream business, British Gas, along with ONGC and Reliance, has, so far, invested $ 900 million on the Panna, Mukta and Tapti oil and gas fields off the western coast.

The consortium is scheduled to invest another $ 500 million to increase production to 17 mmscmd from the present 10.5 mmscmd by mid-2007.

The companies have asked the Union Government for permission to sell the gas that GAIL, the largest buyer, does not buy. GAIL reduced buying to one-third of its scheduled purchases of 6 mmscmd.

`ONGC-RIL-BG consortium losing $400,000 a day'

THE British Gas, ONGC and Reliance consortium says it is losing $400,000 a day after being forced to shut down wells at its Tapti gas field, after GAIL India - its largest gas buyer — cut purchases to one-third.

GAIL was to pick up six million standard cubic metres a day supplies for fertilizer and power customers along the H-B-J pipeline, for one year. GAIL, is however, yet to sign the contract and so is not contractually bound to lift supplies.

The consortium has written to the Petroleum Ministry asking for permission to sell the gas directly to other customers to avoid production losses.

According to GAIL, the company has cut purchases by 2.1 mmscmd because the Oswal and Indo Gulf fertilizer units have gone in for shutdown.