ONGC has approached the petroleum ministry to allow it to invite fresh tenders for gas from Banskandi field. About 1 mmscmd of natural gas from the Banskandi field was allocated to Eastern India Powertech Ltd (EIPL) through the Assam Gas Corporation Ltd. (AGCL). However, AGCL stopped gas supply to EIPL’s Banskandi power plant from January 2013 onwards, due to its inability to clear pending dues since November 2010.
ONGC, on the other hand, had curtailed gas supplies to AGCL first by 25% in August 2012 followed by another 25% in September 2012 as the latter had failed to clear the dues. Now ONGC has approached the petroleum ministry to allow it to cancel the APM gas allocation from the Banskandi field to EIPL. ONGC also feels that there is no other option but to close the wells of Banskandi field in order to ensure plant safety and avoid wastage of gas through flaring. Due to stoppage of gas to AGCL, around 0.5 mmscmd gas from Banskandi field remains unutilized and un-monetized.