Indian Oil Corporation Ltd (IOC) wants to import gas to meet its requirements.
The drop in domestic gas output and growing dependence on LNG has led to the company taking this decision, the Director, Planning & Business Development, Mr A M K Sinha said.
IOC needs 20-22 million standard cubic metres per day of gas for all its refineries. Of this, IOC was getting 1.6 mscmd from the Reliance Industries-operated D6 block. But, the fall in D6 output had compelled the Government to divert the gas allocated to refiners to core sectors such as fertiliser and power to meet their requirements.
Currently, IOC is getting imported gas from Petronet LNG. This is part of its share as a promoter of Petronet. But, the company is now looking at sourcing gas by itself. Subsequently, it plans to sell surplus gas, if any, to other consumers.
Today, about 150 mscmd of gas is available in the domestic market of which 115 mscmd is indigenously produced. GAIL is currently ferrying 120 mscmd gas, of which gas from D6 is in the range of 30-32 mscmd, imported gas is 25 mscmd, gas from Panna-Mukta-Tapti fields is 12 mscmd, and the remaining is administered price gas from ONGC fields.
The gas consuming industries are depending on expensive imported gas. While the imported gas is available at $ 8.4/mBtu and $ 14/mBtu (excluding other levies and taxes), D6 gas is available at $ 4.2/mBtu (excluding the levies and taxes).
With regard to the company's 5 million tonne per annum Ennore LNG terminal, he said, “While the work is in progress we are also looking at various opportunities for gas sourcing.”
On whether the company would rope in a foreign partner for the project he said, “The option is there.”