Reliance, ONGC and BP considering gas infrastructure worth one billion dollars

According to a report by The Economic Times, the country's leading energy companies Reliance Industries Limited (RIL), Oil and Natural Gas Corporation (ONGC) and BP are considering the joint use of a gas infrastructure facility valued at one billion dollars. A special proposal in this regard has been presented by the Oil Ministry, whose main objective is to make gas exploration from deepwater sectors commercially more viable and to increase operational efficiency.

The main objective behind this shared infrastructure plan is to make a major reduction in the costs incurred behind development. With the implementation of this scheme, there will be no need to set up separate independent facilities for small-scale explorations, which will save both time and money. Apart from this, a major improvement in overall operational efficiency and commercial viability is also expected to be seen. Exploring gas in deepwater sectors and extracting it is an extremely expensive and complex process, while this type of shared model can prove to be extremely beneficial for all the companies involved.

As part of this initiative, the three giant companies are exploring possibilities to work together and make the best use of resources. Under this proposed scheme, gas pipelines and other essential infrastructural facilities in marine sectors will be used by sharing them. As stated in the report of The Economic Times, the total estimate of this entire scheme is around one billion dollars, which can become one of the biggest collaborative projects in the energy sector so far. This will not only reduce costs but will also prove to be a big help in giving momentum to gas production in the country.

Discussions are underway between the companies and the ministry on this entire matter and more clarity in this regard will come to the fore in the coming time. Keeping in view that the proportion of risk and cost is very high in deepwater projects, this shared infrastructure model can prove to be a game-changer for the industry.