NATURAL GAS

Availability Utilisation

GasPricing Prospects

Availability

Tripura has vast reserves of natural gas in non-associate form. The gas is of high quality, with high methane content of about 97% and without any presence of H2S of Sulphur and other impurities. ONGC has been actively engaged in exploration activities in the State since 1972. Based on the exploration work of so far, ONGC has estimated the total Gas Reserves as under:

• Prognosticated Reserves : 400 BCM
• Established Gas Reserves : 30.65 BCM
• Net Recoverable Reserves : 16.91 BCM
• Present Production Potential : 2.03 MMSCMD

The Exploration activities are expected to be stepped up in near future. The Government of India is in the process of finalising a contract with M/S Oklands International of USA, for taking up exploration activities in Tripura, in addition to ONGC. The target is to increase the Production Potential to 4.5 MMSCMD by the year 2001-02 AD.

Utilisation

Presently, natural gas is being utilised mainly for the Power Projects of the State Government/ NEEPCO (a Central Government Undertaking). The present utilisation of natural gas is about 0.80 MMSCMD, which is expected to increase to about 1.25 MMSCMD shortly. A small quantity of gas is also being used for gas supply to domestic/ industrial consumers. The balance about 0.74 MMSCMD gas is presently available for setting up industrial projects, using natural gas as feedstock. In a recent study conducted by the Engineers India Limited (a Government of India Undertaking), the following Projects have been identified :

Gas Pricing

One major advantage in setting up a gas-based project in Tripura is the concessional pricing of gas for North-eastern region. The Government of India has recently announced the revised Pricing Policy, effective from October 1, 1997 and valid upto March 31, 2000. The consumer price of gas at landfall points has been linked to the international price of a basket of LS/HS fuel oils. The concessional price for North-eastern region vis-à-vis the General Price (expressed as percentage of the international price of a basket of internationally traded fuel oils) can be seen from the following table:

As a result of the revision, the present price for gas has increased from Rs. 1000/MCM to about Rs. 1250/MCM for North-eastern states, which is much lower than the General Price of about Rs. 2300/MCM. Not only that, a further discount of Rs. 300/MCM is available, on a case to case basis, for new consumers in the North-eastern region for a period of 5 years.

Prospects

The availability of superior quality natural gas, at concessional price, offers a great opportunity to prospective investors, to set up gas-based industrial units, using natural gas as Feedstock.