E&P | T&D | LNG | Operations Map
BG Group has a significant presence across the gas chain in India. The Group is seeking to play a greater role in India’s growing natural gas sector by developing its upstream position and expanding its LNG portfolio.
Mahanagar Gas Ltd (MGL) formed
Majority stake in GGCL acquired
30% participating interest in the Panna/Mukta and Mid and South Tapti (PMT) fields acquired
Agreement signed by BG Group with GAIL to take PMT gas
PSC for Block KG-DWN-2009/1 signed
Identified as qualifying bidder for MB-DWN-2010/1
BG Group has held a 30% interest in the Mid and South Tapti gas fields and the Panna/Mukta oil and gas fields since 2002.
In June 2012, the PMT JV announced reaching the landmark achievement of crossing the 500 mmboe of oil and gas production from the PMT fields. Enhanced recovery from the PMT fields is planned to continue through incremental development of the existing fields via well intervention and infill drilling campaigns, as well as evaluating new projects and further development opportunities in such fields. BG Group and its partners are pursuing a drilling campaign in 2012 and 2013 at the PMT fields.
Under India’s New Exploration Licensing Policy (NELP) 6 licensing round in 2006, BG Group acquired a 45% interest in exploration block KG-OSN-2004/1 in the Krishna Godavari (KG) Basin. Oil and Natural Gas Corporation Limited (ONGC) holds the remaining 55% and is operator. In 2008, BG Group entered a farm-in agreement with ONGC to acquire a 25% interest in exploration block MN-DWN-2002/02 in the Mahanadi Basin on the east coast of India. However, BG Group has decided to exit these two blocks. This arrangement will be subject to Government of India (GoI) approval.
In the NELP 8 licensing round, a consortium led by BG Group (30% and operator), was awarded an exploration block KG-DWN-2009/1 in deep water in the KG Basin.
The NELP 9 licensing round was launched in October 2010. A consortium led by BG Group (50% and operator) has been identified as the qualifying bidder for an exploration block MB-DWN-2010/1 offshore the west coast of India. The award of the contract is awaiting approval from GoI.
BG Group %
|Panna/Mukta and Tapti
|ONGC 40, Reliance Industries Limited (RIL) 30|
|ONGC 45, Oil India Limited 15, AP Gas Infrastructure 10|
*BG Group is pursuing exit arrangements for these blocks
Gujarat Gas Company Limited (GGCL)
BG Group has a 65.12% controlling stake in GGCL. It is India’s largest private sector natural gas distribution company in terms of sales volume. BG Group is evaluating the potential sale of its interest in GGCL.
GGCL continues to steadily increase its customer base. At the end of June 2012, GGCL served close to 360 000 residential, commercial and industrial customers and fuelled more than 180 000 natural gas vehicles (NGVs) with compressed natural gas (CNG).
In 2011, its distribution sales volumes were 1 246 mmcm. With the declining profile of indigenous supplies, GGCL is increasingly purchasing significant volumes of LNG to fulfil the demand of its customers and enable growth.
The Ministry of Petroleum and Natural Gas clarified GGCL’s status as an entity authorised by the Central Government in August 2008. This authorisation covers the cities of Ankleshwar, Bharuch and Surat. The downstream regulator (PNGRB) is currently processing GGCL’s authorisation application for identified areas in the Surat and Bharuch districts.
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 2011 volumes rose 11% to 700 mmcm. This volume growth was underpinned by growth in all market segments, particularly CNG and commercial, as well as the expansion of MGL’s network to other neighbouring towns of Greater Mumbai.
As at the end of June 2012, MGL served over 525 000 residential, commercial and industrial customers and fuelled over 250 000 vehicles with CNG from over 150 CNG stations.
MGL has been extending its pipeline network beyond Greater Mumbai, into neighbouring areas of Taloja, Kalyan and Ambernath.
In 2009, BG India Energy Solutions Private Limited (BGIES), a wholly owned subsidiary of BG Group, commenced midstream gas marketing operations in India to undertake wholesale marketing and distribution of natural gas.
BGIES continues to pursue LNG business opportunities with existing and new potential counterparties to source gas in India, and to secure global LNG supplies from BG Group’s flexible LNG portfolio. At the end of 2011, BG Group had supplied 35 LNG cargoes to India.
In 2011, BG Group announced it had signed a Heads of Agreement (HoA) with Gujarat State Petroleum Corporation (GSPC) for the supply of up to 2.5 mtpa of LNG for up to 20 years beginning as early as 2014. Discussions on the fully termed Sale and Purchase Agreement are continuing. This agreement would bring essential new supplies of natural gas to India and add another important new dimension to BG Group’s expanding global LNG business.