Steel Exchange secures additional gas from ONGC

Steel Exchange India Ltd (SEIL) has secured additional gas of 15,000 standard cubic metres per day of gas from ONGC Ltd for its captive power plant at Kothapeta, based in Andhra Pradesh.

The gas will be supplied from Kammapalem field located in the Rajahmundry asset on fall-back basis in pursuant to Ministry of Petroleum & Natural Gas guidelines for allocation of gas from small and isolated fields and marginal fields.

Supply access With this, SEIL, a private steel manufacturer listed on the exchanges, will have access to supply of 75,000 SCMD of gas per day. SEIL has facility to generate up to 12 MW at its Kothapeta plant. Currently, it is supplying the unutilised power of up to 9 MW to APTransco.

B Satish Kumar, Managing Director, SEIL, said, “We are very happy ONGC has approved our bid and allocated the gas.

We have recently upgraded our gas engines and will be able to reach our full potential of power generation at Kothapeta with this allocation.”

Expansion plans The company is planning to expand its present steel making capacity with a backward integration project by setting up a 0.7 million tonnes pellet plant utilising the existing infrastructure.