IOC to import LNG due to drop in domestic gas output

IOC to import LNG as domestic output falls


(Courtesy: The Hindu Business Line, New Delhi, August 30, 2011)



IndianOil (IOC) wants to import gas to meet its requirements.



The drop in domestic gas output and growing dependence on LNG has led to the company taking this decision, the Director, Planning & Business Development, Mr A M K Sinha said.



IOC needs 20-22 million standard cubic metres per day of gas for all its refineries. Of this, IOC was getting 1.6 mscmd from the Reliance Industries-operated D6 block. But, the fall in D6 output had compelled the Government to divert the gas allocated to refiners to core sectors such as fertiliser and power to meet their requirements.



Currently, IOC is getting imported gas from Petronet LNG. This is part of its share as a promoter of Petronet. But, the company is now looking at sourcing gas by itself. Subsequently, it plans to sell surplus gas, if any, to other consumers.