Cairn inks pact to sell 1 lakh SCMD gas to Assam Gas Company
Cairn is looking to double its gas production from the existing 1,700 million metric standard cubic meters (MMSCM) of gas to 4,700 MMSCM by 2026.
Cairn Oil and Gas on Thursday announced that it will sell one lakh standard cubic meters per day (SCMD) of natural gas to state-run Assam Gas Company Ltd (AGCL) for distributing it in the state.
The two companies have signed an agreement in Guwahati for the gas sale in presence of Assam Industries and Commerce Minister Chandra Mohan Patowary.
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"Under this agreement, AGCL will ensure purchase of 1 lakh SCMD rich gas from Cairn's Hazarigaon Field," the two firms said in a joint statement.
AGCL Managing Director Gokul Chandra Swargiyari said that the association with the private oil company will improve energy access in Assam and boost the state's many industries, particularly the big tea estates.
"At AGCL, we have robust plans to connect all towns within our operating area by supplying piped natural gas to 2 lakh domestic consumers in the next few years," he added.
The Assam government-controlled company is determined to connect more domestic and industrial consumers to its existing network and reduce dependence on traditional fuels to contain carbon footprint and ensure energy access in the state, Swargiyari said.
Speaking on the occasion, Cairn Oil & Gas Deputy CEO Prachur Sah said: "We are delighted with this new development in Assam and are looking forward to our partnership with AGCL to power the state's critical tea industry alongside supporting other key sectors of the state."
The leading private exploration firm expects huge potential in the North East and remains committed to further contributing to the region's economic growth and progress, he added.
"We were awarded the Hazarigaon field, under the DSF (Round II). We have deployed best-in-class technology and practices to accelerate the exploration process and swiftly moved towards production and supply of gas," Sah said.
Cairn is looking to double its gas production from the existing 1,700 million metric standard cubic meters (MMSCM) of gas to 4,700 MMSCM by 2026.
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