Rajahmundry: Lack of transport costs ONGC badly

DECCAN CHRONICLE
Published Jun 12, 2015, 12:35 pm IST
Updated Mar 28, 2019, 9:53 pm IST
ONGC incurs revenue loss of Rs 1.2 crore per day
Oil and Natural Gas Corporation Limited logo
 Oil and Natural Gas Corporation Limited logo

Rajahmundry: Rajahmundry asset of oil major ONGC incurs revenue loss to the tune of Rs 1.2 crore per day as it shut down as many as 40 wells to stop production of gas for want of transport as GAIL yet to restore its trunk pipeline in the aftermath of its gas pipeline blast at Nagaram village in East Godavari.

The ONGC authorities have shut down their wells located at Tatipaka, Kesanapalli, Yendamuru and Adavipalem to stop production of gas ranging between 1.2 million metric standard cubic meter per day and 1.4 mmscmd incurring huge amount of revenue loss in the last few months. They say that once the GAIL's trunk line is restored, they will reopen the wells and start production of gas. However, GAIL authorities maintain that they have laid down nearly 34 km stretch of trunk pipeline and nearly 40 km stretch yet to be laid connecting Tatipaka to Sarpavaram Junction in Kakinada.

They say that the slushy ground is becoming a major hurdle for them to lay the underground pipeline by complying with all safety norms. They also say that they will no longer accept the gas being supplied by the ONGC unless it complies with certain standards for the reason that the poor quality gas having high moisture content caused corrosion in the pipelines.

GAIL general manager Iyer said, “We will complete laying of the remaining 40 km stretch of trunk pipeline by August-end. Except for Tatipaka, all our lines are restored. We will accept only quality gas from ONGC hereafter. We have asked them to streamline the processing of gas at their Tatipaka facility. By the time, they complete such exercise, we will restore our pipelines to supply quality gas to the clients.”

Meanwhile, the ONGC authorities say that they are installing five gas dehydration units at five places including at Tatipaka to ensure supply of dry gas having no content of moisture in it.

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Location: Andhra Pradesh




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