New Delhi: The Oil and Natural Gas Corp. (ONGC) will raise naphtha exports marginally this fiscal, 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 Friday.
The company aims to increase exports of naphtha by 3.4% to 1.2 million tonnes (mt) in the financial year ending 31 March, 2008. Last year, it exported 1.16mt of naphtha for $662 million (Rs3045.20 crore, then).
“If we get (to export) 1.2mt this year, we will try for 1.4mt next year,” Mitra, who also handles marketing operations, said.
“We get good money in the overseas market,” he said, adding that ONGC expected to realise Rs2,600 crore from naphtha exports in 2007-08, but the actual value would depend on the market price.
Going forward, ONGC plans to invest Rs1,500 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 40.6mscmd 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, the public sector company produced 1.6mt of naphtha from the two units. Annual naphtha output will increase by around 400,000 tonnes once the new facilities are commissioned by 2010.
To reduce its dependence on the single buoy mooring (SBM) facility of private sector behemoth Reliance Industries Ltd (RIL) for exporting products from Hazira, ONGC plans to invest Rs180 crore to set up its own facility to handle vessels of up to 50,000-tonne capacity each.
Its SBM facility will be ready by mid-2009 and will be ONGC’s first such facility.
ONGC could not ship naphtha cargoes in October last year as RIL’s SBM facility was undergoing maintenance.
On an average, ONGC exports two parcels a month from Hazira and Uran.