Rs 130000cr hydrocarbon vision for NE
The Centre unveiled a Rs 1,30,000-crore plan to double oil and gas production in the Northeast in the next 15 years.
The plan, Hydrocarbon Vision 2030 for Northeast India, announced by Dharmendra Pradhan, minister of state (independent charge) for petroleum and natural gas, aims to establish the Northeast as a dominant hydrocarbon hub at the forefront of the country’s energy economy, to explore hydrocarbon linkages and to explore trade opportunities with Bangladesh, Myanmar, Nepal and Bhutan.
Implementation of the project will help make clean fuel accessible, fast-track projects, generate employment opportunities and promote cooperation with neighbouring countries.
Of the Rs 130,000 crore, Rs 80,000 crore will be for upstream activities, Rs 20,000 crore for midstream and Rs 30,000 crore for downstream.
“The money will be borne by the oil companies from their budgets and the oil sector will do everything to help the region in its all-around development,” Pradhan said.
The vision rests on five pillars – people, policy, partnership, projects and production.
For “people”, it foresees clean fuel access to households, fostering skill development and involvement of the local community.
The “policy” focus areas include moderation in light of specific terrain and weather conditions of the region as well as ensuring funds planning for new projects.
For “partnership”, it stresses on greater involvement of state governments in planning and implementation and boosting trade with neighbouring nations.
In “projects”, the focus is on pipeline connectivity for carrying liquefied petroleum gas (LPG), on natural gas, petroleum products, oil and lubricants, building refineries and import links, development of compressed natural gas highways and city gas distribution network.
The emphasis on “production” includes production enhancement contracts, technology deployment, fast-track clearance and development of service provider hubs.
The document states that the Northeast has nearly 18 per cent of the national hydrocarbon resources. This is quite significant, considering the fact that vast expanses of the region are yet to be surveyed.
The Centre plans to categorise high-risk areas, considering the tough conditions and connectivity issues, into a separate category called challenging blocks. According to Oil India, blocks falling in the hilly areas can be termed as challenging.
The document says the government should focus on production maximisation by paying a premium on the prevailing gas price for gas produced from challenging blocks, which may make many blocks commercially viable.
On resolution of disputes in Nagaland, the document says a review of the existing royalty structure can be considered and a committee formed under the chairmanship of the secretary, ministry of petroleum and natural gas. The chief secretaries of the states involved in the dispute will be part of the committee.
Pradhan said efforts were being made to increase LPG access to all homes in the region.
The plan states that the total demand for all petroleum products in the Northeast is around 3.2 million metric tonnes per annum. With the proposed expansion, the region will have more capacity than demand. The Centre can utilise the excess capacity to meet demand in neighbouring countries such as Bangladesh, Myanmar and Bhutan. The region’s present production of crude oil is 12,444 tonnes per day and the average rate of gas production is around 11.32 mmscmd (million metric standard cubic meter per day).
Assam chief secretary V.K. Pipersenia said the plan would help Assam regain its sheen in the petroleum sector.
Pradhan also said the Assam government should approach the judiciary for recovering around Rs 10,000 crore of pending oil royalty from public sector units. “When I met the Assam chief minister, I asked him to go to court regarding the royalty issue…But the Assam government has not gone to court,” Pradhan told reporters after the programme.
Gujarat, too, had issues regarding royalty payment for crude oil and it had approached the Supreme Court, which ruled in favour of the state government and they got the payment, he added.
However, chief minister Tarun Gogoi said the state government had approached Gauhati High Court in December 2014, seeking directive to energy firms like ONGC and OIL to pay royalty on crude oil on pre-discounted rate to the state in accordance with a Supreme Court order.
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