In a big step towards monetization of gas from its upcoming field at Khubal, the ONGC Tripura Asset signed a Gas Sale Agreements (GSA) with GAIL India and Assam Gas Company Ltd (AGCL) at its Badharghat Base Office Complex in Agartala, an ONGC press statrement said.
The GSAs were signed by Asset Manager of Tripura Asset Tarun Malik, on behalf of ONGC, and Gokul Chandra Swargiary, MD, AGCL, and R Choudhury, CGM-Zonal Head, GAIL, on behalf of their respective Companies, in the presence of senior officers and executives of all the three Public Sector entities.
Once it starts producing, Khubal will be the 10th producing field of ONGC in Tripura. The GSAs signed on July 21 are for off take of 50,000 standard cubic meters per day (SCMD) of gas by both GAIL and AGCL, totalling 0.1 MMSCMD, from ONGC’s Khubal GCS (Gas Collecting Station). Khubal GCS will have a capacity to process 0.44 MMSCMD of gas for which process of construction has been started.
Speaking on the occasion, the ED-Asset Manager of ONGC Tripura Asset said, “It marks a momentous occasion not just for ONGC, GAIL and AGCL but for the people of Northeast as well as it means more gas will find its way into industry and people’s homes positively impacting living standards.”
The economy of the region too will receive a boost in the coming years as ONGC produces more gas from its fields in Tripura and the greater connectivity provided by the laying of IGGL pipeline provides the incentive for local businesses and industries to flourish, he said.
“IGGL will be game-changer for the region”, he remarked and hoped strengthening business relations, as evidenced by the signing of GSAs, between critical gas players like ONGC, GAIL and AGCL will pave the way for further growth of Tripura and the entire Northeast. He thanked both GAIL and AGCL for their consistent support.
The MD of AGCL too sounded confident of the region’s prospects, especially in the wake of strong gas production potential from ONGC’s fields in Tripura.
This being the first GSA that’s been signed by AGCL with ONGC in Tripura, Swargiary said, “it’s the beginning of a new relationship and I am sure going forward we will be able to work well together, resolve any issues and create win-win solutions for all”.
Zonal Head of GAIL R Choudhury said, “The GSA for gas produced from wells of Khubal means more than just another step in the relationship between ONGC and GAIL… it means the increasing integration of the region with the rest of the country”.
Hailing ONGC’s contributions to nation-building, he said that GAIL has always considered the association with ONGC as relationship of pride and that the gas marketer will always support ONGC to expand the reach of its Gas.
GSAs are an important milestone in the lifecycle of any gas business signifying commerciality for producers like ONGC while ensuring the product reaches the end consumers through marketing and transportation intermediaries like GAIL and AGCL.
The Khubal Gas field (NELP III AA-ONN-2001/1) is expected to start producing from its wells in 2024 in line with the commissioning of the IGGL pipeline, a critical and massive infrastructure project for the Northeast region’s gas sector
