Oil & Natural Gas Corporation has plans to tie-up with Reliance Industries to build a common offshore gas processing unit. The unit will entail an investment of around Rs.5,000 crore.

ONGC has recently discovered gas in the KG-basin with initial estimates suggesting the total reserve to be 21 tcf. Reliance has already announced a 14 tcf find, besides discovering a 'large gas layer' in a new well in its D-6 field. Reliance's D-6 block lies adjacent to the KG-DWN-98-2 of ONGC and the firm is willing to transport ONGC's gas through its east-west pipeline. Gujarat State Petroleum Corporation (GSPC), which has also announced a gas find of 20 tcf in the area, is in talks with Reliance for using its pipeline.

Reliance is planning two pipelines from the Andhra coast - one is to the west coast and the other towards Bengal. Currently, the gas capacity of the pipeline is 100 mmscmd.

Also See:

ONGC makes large discovery in KG basin (18-Dec-06)

REL to buy gas from ONGC-Reliance-BG combine (16-DEc-06)