KG basin reserves - Do they satisfy AP needs ?

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Oil

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Oil_reservoir

Bystander · Telugu Teja Joined: 13 Oct 2004 Posts: 438

Mukesh Ambani - Reliance Industries is firming up plans to lay gas pipe line to connect Kakinada Offshore gas fields production out put to Gujarat and Maharastra. Plans would be firmed up in few months. Why not have this gas utilized only for industrial needs of AP state.

webgeek · Posted: Sun Mar 12, 2006 10:26 am Post subject:

If I am not wrong, YSR has clearly stated that the state needs for the gas will be met first and then only gas could be sent to other states. I guess this is also mentioned during the MOU signing process..
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Bystander · Telugu Teja Joined: 13 Oct 2004 Posts: 438

True, he said that. Then why to build the pipe line to Gujarat and Maharastra. Do they have som much excess gas from AP fields?
Please visit - http://petroleum.nic.in/ng.htm
Gujarat is hub of petrochemical industry in India for long and has several gas fields both on and offshore. So is Maharastra. AP finds are recent origin. For RIL it is easy to find customers in petrochemical industrial hub of Guj & Mah states. For them to sell gasin AP, AP needs to first some one build petrochemical complexes and powerhouses. RIL could be looking for quick returns. Can't blame them, they run enterprises for profitability.
For the industry to get attracted to invest in gas based projects, it will be beneficial to have available gas resources. So, letting AP gas available elsewhere is kind of disencouraging. Pipelines can be build quite quickly and are not all that expensive.
Chidabarams 5th mega power project (4000 MW) for AP and YSR quickly jumping for gas based project at Kakinada are to contain the gas with in AP. Hope the govt will revive the 500 MW power plant for Hyderabad. They should also build gas based power plants in Warangal/Nalgonda. Should be done rather quickly to make it unattractive to RIL to build the pipeline, if not use political muscle, to delay the pipeline to Guj&Mah, by an year or two, to give sufficient time for AP petrochemical and gas based industry to make requisite additional investments.

webgeek · Posted: Mon Mar 13, 2006 9:20 am Post subject:

While i agree with the views of Bystander, what surprises me is that the responsibility to build and develop petrochemical complexes lies also with Governmental petro companies too. Why does not ONGC take up the task. Are they confining themselves to the Pasarlapudi and the other few areas? Why dont ONGC take up the task of building them?

Though, the topic of National-level importance, the local State Government too has a part to play. Our representatives have to convience the ppl at ONGC and other Governmental-petro companies and attract them to extract gas from our basins. Usage of the gas to meet the needs of Andhra Pradesh is again a different case. Natural resources are not our state-owned things. They are to be shared across the nation. If we go for dispute, there are many things that we lag behind and may have to loose.
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