The SGL field is located within Block RJ-ON/6 in the Indian state of Rajasthan. Indus holds a 63% interest in the field, with ONGC holding 30% and Focus Energy holding 7%. Indus has a 90% interest in the remainder of Block RJ-ON/6.
The company is contracted with GAIL to initially supply 7mmscfd of gas (first phase) on or around Q2 of 2010. The quantity supplied is contracted to increase to around 33.5mmscfd (second phase) from Q2 of 2011.
For the first phase supplies, the company was required to install and commission certain production facilities, consisting of full gas gathering station including a gas dehydration plant, condensate removal and storage facilities, flow lines and various other associated facilities, while GAIL was to install and commission a 90km gas pipeline between SGL gas field and the downstream consumer – a 110MW power plant owned by Rajasthan State Government at Ramgarh (RRUVNL).
The gas in the first phase is contracted to be supplied without removing CO2. The company has now notified GAIL as to its readiness to supply gas following installation, commissioning and testing of the first phase production facilities with an installed capacity of upto 15mmscfd.
GAIL has also confirmed completion of the 90km pipeline and its readiness to take gas. In turn, RRVUNL (the downstream customer of GAIL) has indicated that it will be ready to receive the gas by July 5, 2010.
For the second phase supplies, Indus is required to install a carbon dioxide removal plant to remove around 18% of CO2 from the gas, along with the additional production facilities and production wells so as to enhance the gas production capacities to meet contractual requirements of second phase.
RRUVNL is installing a new power plant of 160MW capacity for the same. The company has largely completed the tendering process for the second phase production facilities and will commence the ordering process in the third quarter of 2010. RRVUNL has already started construction of the new 160MW power plant.
Indus has received the petroleum mining lease for a period of 20 years from the Rajasthan state government after the approval from Central Government Ministry of Petroleum and Natural Gas. This mining lease covers an area of 176sqkm of the SGL gas field in block RJ-ON/6.
Marc Holtzman, chairman of Indus, said: “The completion of production facilities by the company and pipeline by GAIL are major steps forward for Indus, together with the development and supply of power in the state of Rajasthan.”
