AHMEDABAD (Commodity Online): Country’s largest public sector oil exploration company, Oil & Natural Gas Corporation Ltd (ONGC) (BOM: 500312) will operationalize country’s first underground coal gasification (UCG) plant near Surat in Gujarat by October 2010.
 
Company stocks traded marginally up at Rs.1186.50 up by 0.25% in the morning trading session today. The company stocks have touched the intra-day high of Rs.1198.50 and a low of Rs.1178 so far during the day.
 
The company had expressed its plans to expedite the process of underground coal gasification project at Vasthan near Surat on Sunday in Ahmedabad. The field is expected to produce about 5.5 lakh cubic metres of synthetic gas per day by end of 2010.
 
According to company sources, ONGC aims to attain commercial production of about 2 billion cubic metres of the synthetic gas per annum from this field by 2013-2014.
 
The company has entailed investment of the project in the range of Rs.1,000-2,000 crore and the field has enough reserves to last for about 30-40 years. Apart from Vastan Field, ONGC is also looking to set up a UCG project at Bhavnagar in Gujarat and in Rajasthan.
 
The development is considered to be one of the crucial for the comp[any and the country as a whole as so far, only Russia has achieved commercial success in a UCG project, while there have been pilot projects at a couple of places, including one in Australia.

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