Bid & Tender
Two SNG Projects Coming Up in Odisha

Date : Jun 11, 2018

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan said Odisha will soon have two Synthetic Natural Gas (SNG) projects at Talcher and Paradip where gas will be produced from coal.


Speaking at the Roadshow organised by Petroleum and Natural Gas Regulatory Board (PNGRB) during the 9th City Gas Distribution (CGD) bidding round here on Saturday, Pradhan said both the projects will generate thousands of employment opportunities in the State besides protecting the environment and developing the economy. “An integrated coal gasification-cum-fertiliser production facility is coming up at Talcher with an investment of Rs.80 billion. Synthesis gas (syngas) and fertiliser will be produced at the plant using a new technology provided by Shell Global. Syngas is clean and pollution-free fuel,” he said.


Similarly, Pradhan said another project will be set up at Paradip where gas will be produced from pet-coke and coal. The new project will cost around Rs 110 billion. Once the CGD network is laid, nearly 85 per cent population of the State will be benefited, he said. “All four components of gas - Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) and Synthetic Gas - will now be available in Odisha providing a conducive atmosphere for large-scale investments,” Pradhan said. The Minister, however, urged Odisha Government to extend a helping hand for proper grounding of the projects. “CGD networks cannot be set up without the support of the State Government. I hope the State will extend a supporting hand for the betterment of people,” he added.


The Roadshow showcased attractive investment opportunities in the expansion of India’s CGD network which is being laid in 174 districts in the country with an investment of around Rs 700 billion.


The PNG Ministry has set the target to provide CNG to automobiles and Piped Natural Gas (PNG) to households in all urban locations under the CGD network. The 9th bidding round is the biggest one covering 22 States to transform India into a gas-based economy. The PNGRB has identified seven geographical areas covering 17 districts in the State for the bidding round and it is expected to attract an investment of Rs 70 billion in the next five years.


Of 19 districts included in the CGD project, while work has already started in Khurda and Cuttack, the facility will be rolled out in Angul, Dhenkanal, Sundargarh, Jharsuguda, Balasore, Bhadrak, Mayurbhanj, Bargarh, Deogarh, Sambalpur, Ganjam, Nayagarh, Puri, Jagatsinghpur, Kendrapara, Jajpur and Keonjhar districts in phases. Chairperson of PNGRB D K Sarraf said as part of the wider energy security programme, the Centre has set a goal to reduce 10 per cent of crude oil imports by 2022. “Now natural gas contributes only 6.2 of the country’s energy basket. Our focus is to increase the share and ensure people have access to clean, affordable and reliable energy,” he added.