GSPC finds gas in KG Basin but is struggling to get clearances

GSPC still needs to obtain various clearances relating to environmental and coastal regulatory zone clearances for laying some 10 km underground pipeline and commissioning of the onshore terminal

Although Gujarat State Petroleum Corporation (GSPC) struck gas in the KG (Krishna-Godavari) block, close to Reliance Industries’ own reservoir, way back in 2005, it is still struggling to get green clearances.

 

This $1.8 billion project, where GSPC holds 80%, Jubilant 10% and Geoglobal 10%, was originally scheduled to go on stream this month. Initially, it expects to operate two wells, estimated to pump out 100,000 standard cubic metre (scm) and at the peak reach anything between 5.7 mmscmd and 8.6 mmscmd (million metric standard cubic metres of gas per day).  This will bring a great relief to the gas-starved country.

 

Meantime, GSPC is striving to get the clearances to commence its operations!

 

GSPC has a long history and has made several discoveries in hydrocarbon resources in the KG basin, Cambay basin, Tarapur block, Ahmedabad, Sanad-Miroli block and Ankaleshwar block. Besides these, GSPC has other exploratory licences in other areas and work and investments are progressing in these areas.

 

In discovering gas in 2005, GSPC has made rapid progress, despite various obstacles it faced, including the location of gas wells deep in the seabed. According to information available, most of which are on its website, the operation to extract gas involves the imperative need to overcome high temperature and pressure at the reservoir.  Well, not to speak of the hurdles in getting clearances.

 

The required off gas extraction facilities have been set up. But GSPC still needs to obtain various clearances relating to environmental and coastal regulatory zone clearances for laying some 10 km underground pipeline and commissioning of the onshore terminal.

 

So far, it has received several assurances to speed up the process of environmental clearances, but these are obviously sitting pretty on someone’s table.  As we have stated in the past, on such issues, there are NO pending papers on Jayanthi Natarajan’s table, who is currently the minister of environment and forests!

 

This writer has also taken up the issue with Sandeep Dave, company secretary, GSPC, to know the current status and to find the true obstacles that are in the way of getting clearances.  No reply has been received so far.

 

A look at the procedures involved and the various departments concerned for getting clearances, is mind boggling. These again, are available on GSPC’s website but the pity is that nearly a decade after gas is found, we are still stuck with paperwork that does not move, for whatever reasons!

 

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)

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