download - BG Group

supplied increased to 450 mmscfd along with
7 000 bbls of condensate. Current production
is 300 mmscfd of gas and 4 100 bbls of
condensate. A further three development
wells are planned in Tapti by end first quarter
2010 to improve recovery from the fields.
From April 2005 to March 2008, gas produced
from the PMT fields was sold directly into the
domestic market. In April 2008, following the
re-nomination of GAIL (India) Limited as the
government of India nominee to take the gas
deliverable from the PMT fields, BG Group
and other PMT co-venturers entered into a
gas sales agreement with GAIL to supply gas
from the PMT fields.
In the 2006 NELP VI licensing round, BG Group
acquired a 45% interest in exploration block
KG-OSN-2004/1 in the Krishna Godavari Basin.
The shallow water block, which covers an
area of approximately 1 131 square kilometres,
is located off the east coast of India. Oil and
Natural Gas Corporation Limited (ONGC)
holds the remaining 55% and is operator of
the block.
In 2008, BG Group signed two farm-in
agreements with ONGC to acquire a
participating interest in two deep water
blocks off the Indian east coast – a 30%
interest in KG-DWN-98/4 block and a 25%
interest in MN-DWN-2002/02 block.
DOWNSTREAM
Gujarat Gas Company Limited (GGCL)
BG Group has a 65.12% controlling stake in
GGCL, with the remaining 34.88% publicly
owned. GGCL is India’s largest private sector
natural gas distribution company in terms
of sales volume. GGCL currently has more
than 255 000 residential, commercial and
industrial customers and fuels CNG to more
than 95 000 NGVs.
In 2008, its distribution sales volumes were
1 093 mmcm (2007 1 202 mmcm), the slight
decline being due to constraints in gas
availability. Despite this decline, GGCL was
able to grow revenues and profits through
optimisation of sales mix to the markets
and enhancement of gas margins. Demand
for gas in the company’s markets exceeds
supply and GGCL continues to make efforts
to contract additional gas to enable growth,
including gas from the RIL D-6 fields on the
east coast and short-term LNG.
In April 2008, following the re-nomination of
GAIL as the government of India nominee to
purchase PMT gas production, an agreement
was entered into with GAIL for it to supply
gas to GGCL. The current supply level is
1.85 mmscmd. GGCL meets the rest of its
requirements from a range of suppliers.
Investment to enlarge and upgrade
GGCL’s pipeline network and associated
infrastructure continued throughout
2008. In 2008, the Ministry of Petroleum
and Natural Gas confirmed GGCL’s status
as an entity authorised by the government
of India to lay, build and operate city gas
distribution networks in the cities of Surat,
Bharuch and Ankleshwar in south Gujarat.
GGCL is in the process of receiving its
regulatory authorisation from the downstream
regulator for its City Gas Distribution network
in the districts of Surat and Bharuch and for its
73 kilometre high pressure Hazira-Ankleshwar
transmission pipeline.
Mahanagar Gas Ltd (MGL)
MGL is based in India’s commercial capital,
Mumbai. It is India’s largest gas distribution
company in terms of size of customer base.
BG Group and GAIL (India) each have a 49.75%
stake in MGL, with the residual stake held by
the government of Maharashtra.
MGL’s 2008 volumes rose 9% to 550 mmcm
(2007 506 mmcm). Volume growth was
supported by the expansion of CNG through
the installation of five new refuelling outlets
and the conversion of public transport buses
to CNG, taking MGL’s total number of outlets
to 136. There are 685 dispensing points in
Mumbai, Thane and Mira-Bhayander which
serve 192 000 vehicles (as at 30 June 2009).
MGL owns and controls around
2 700 kilometres of pipeline and has been
extending its network beyond Mumbai
into the neighbouring cities of Thane,
Mira-Bhayander and Navi-Mumbai. As a
result, the number of connected domestic
customers has risen to 374 500 as at
30 June 2009. MGL also supplies gas
to 1 032 commercial and industrial
establishments in Mumbai.
Following the introduction of regulation into
City Gas Distribution (downstream business),
MGL has received confirmation from the
regulator for the operation of its business
in the Greater Mumbai City area and the
surrounding areas to the east – Navi-Mumbai
plus the conurbation of Ambernath-Kalyan,
an area identified for major growth in the
next two to three years.
To support the large business expansion
plans of the company, MGL is in the final
stages of signing gas supply purchase
contracts for the supply of additional
gas from the RIL D-6 gas field and from
the C Series gas fields operated by ONGC.
The construction of the second City Gate
Station at Mahape is due for commissioning
in September 2009. It will link MGL to the
national pipeline network, thereby providing
access to all the major sources of gas and
greater security of supply.
Partners Panna/Mukta and Tapti (%)
BG Group* 30
ONGC* 40
Reliance Industries* 30
* joint operator.
Partners KG-OSN-2004/1 (%)
BG Group 45
ONGC (operator) 55
Partners KG-DWN-98/4 (%)
BG Group 30
ONGC (operator) 55
Oil India Limited 15
BG Group Data Book 2009
17
AFRICA, MIDDLE EAST AND ASIA