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ONGC eyes 1.2 mn naphtha exports in 2007-08

ONGC eyes 1.2 mn naphtha exports in 2007-08
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First Published: Fri, Apr 13 2007. 11 28 AM IST
Updated: Fri, Apr 13 2007. 11 28 AM IST
Reuters
New Delhi: India’s Oil and Natural Gas Corp. will raise naphtha exports marginally this fiscal year, and has drawn up plans to increase output when its two new processing units come on stream from 2010, its director offshore N K Mitra said on 13 April.
The company aims to increase exports of naphtha by 3.4% to 1.2 million tonne in the financial year ending 31 March, 2008. Last year, it exported 1.16 million tonne of naphtha for $662 million (Rs2,830 crore).
“If we get (to export) 1.2 million tonne this year, we will try for 1.4 million tonnes next year,” said Mitra, who also handles marketing operations.
“We get good money in the overseas market,” he said, adding that ONGC expected to realise Rs26 billion from naphtha exports in 2007-08, but the actual value would depend on the market price.
Going forward, ONGC plans to invest Rs15 billion ($350.5 million) to build two new gas processing trains with daily capacity of 6-7 million standard cubic metres (mscmd) each at its Hazira and Uran units, in western India.
ONGC processes around 40.6 million standard cubic metres (mscmd) of gas and associated condensate at its Hazira plant and 11.5 mscmd of gas at its Uran unit.
“We need additional processing plants to raise output of our value added products,” he said.
Last year, it produced 1.6 million tonne of naphtha from the two units. Annual naphtha output will increase by around 4,00,000 tonne once the new facilities are commissioned by 2010.
To reduce its dependence on the single buoy mooring (SBM) facility of private Reliance Industries Ltd for exporting products from Hazira, ONGC plans to invest Rs1.8 billion to set up its own facility to handle vessels of up to 50,000-tonne capacity each.
The SBM will be ready by mid-2009 and will be ONGC’s first such facility. ONGC could not ship naphtha cargoes in October last year due to maintenance works on Reliance’s SBM at the Hazira terminal.
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First Published: Fri, Apr 13 2007. 11 28 AM IST
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