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Gas is expected to start flowing from Gujarat State Petroleum Corporation’s (GSPC) KG offshore field in three to five months.
The Gujarat Government-owned company struck gas in KG-OSN-2001/3 block – now rechristened as “Deen-Dayal” – in Bay of Bengal, off Andhra Pradesh, in 2005.
GSPC is pursuing a Rs 10,000-crore field development plan on the western part of the asset. While peak output from the find is estimated to reach 5.7-8.6 million metric standard cubic metre a day (mmscmd), sources expect an initial output of approximately 2 mmscmd.
Though located in shallow water, development of the gas find was considered extremely challenging due to twin hurdles of high temperature and pressure of the reservoir. Also, unlike the neighbouring gas asset of Reliance, the reservoir is located deeper under the sea bed.
On schedule
According to the original schedule, the asset was expected to start producing in June 2012. The deadline was later rescheduled to June 2013.
Sources associated with the project told Business Line that the development programme is progressing as per the revised schedule and if luck and weather are favourable gas may start flowing by June.
The GSPC-operated consortium (GSPC 80 per cent, Jubilant 10 per cent, GeoGlobal 10 per cent) has set up two offshore production platforms and is now gearing up to complete the crucial work on sub-sea pipelines before the onset of monsoon.
The sub-sea pipeline connects the production wells with offshore platforms (a facility to gather gas and separate corrosive element like sulphur) and leads to the onshore processing facility. The pipeline needs to be completed before gas starts flowing, to ensure commercial utilisation of the valuable energy source.
Important project
The conversion of KG asset into a producing field is of extreme significance to both a cash-strapped GSPC and a gas starved economy.
Production of gas from KG asset will help GSPC generate much needed cash to step up exploration especially in the more prolific Eastern and Northern part of the KG asset.
The consuming industries are looking forward to allocation and pricing of gas. .
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