State owned Oil and Natural Gas Corporation (ONGC) is planning to introduce carbon dioxide CO2 injection technology in its Gandhar oil field in Gujarat. It will be first large scale CO2-injected project in Asia. ONGC’s project would be the first large scale CO2-injected project in Asia. Gandhar located in Gujarat is one of ONGC’s major brownfields and was discovered in 1983. The field produces approximately 30,000 barrels of oil per day and is on the decline.
CO2 injection technology:
CO2 injection technology is a proven concept in the West specially the US and Canada. Under it, CO2 gas is injected with residual oil in the ageing field in which total oil production has been declining. It reduces its viscosity and makes it easier to displace oil from the rock pores. CO2 gas also swells oil, thereby pushing it towards the producing well for extraction.
- ONGC’s project would be the first large scale CO2-injected project in Asia at Gandhar field. The Gandhar experience would be replicated at other mature fields.At present, steam and natural gas are pumped into the reservoir to loosen the crude oil and maintain well pressure.
- The purpose of CO2 injection technique is to recover extra 20 million barrels of crude oil under enhanced oil recovery (EOR) programme. EOR programme aims at recovering up to 20% of residual oil from ageing oil fields to improve India’s energy security.
- Enhanced oil recovery (abbreviated EOR) is the implementation of various techniques for increasing the amount of crude oil that can be extracted from an oil field. Enhanced oil recovery is also called tertiary recovery (as opposed to primary and secondary recovery).
- The EOR programme is set to play a crucial role within the country for recovering up to 20 percent of residual oil from such ageing fields.
- ONGC is in conversation with NTPC for utilising nearly 5 million tonnes of emitted gas from the latter’s Gandhar plant.ONGC plans to invest $75 million in CO2 capture and another $200 million in injector producer network to recover an extra 15 per cent of residual oil currently valued at $1.36 billion.
Government has signed second Loan Agreement with New Development Bank (NDB)
for financing of Rajasthan Water Project for the Desert Areas. This is the first tranche loan of $100 million was approved by the NDB under Multi Tranche Financing Facility of $345 million for this project.
The project is aimed at arresting seepage by refurbishing canal, modernisation of irrigation management practices by involving water users’ associations, strengthening of drinking water supply and irrigation facilities and rehabilitation of waterlogged areas.
Rajasthan Water Sector Restructuring Project:
The objective of the project is to rehabilitate 678 km long Indira Gandhi Nahar Project (IGNP) built during 1958-63 to prevent seepage, conserve water, and enhance water use efficiency as mandated by both national and state level policies on water use.It will enable arresting the seepage by rehabilitating the deteriorating canal lining of IGNP system which needs urgent attention and its implementation period is for 6years.
Key Points: Rajasthan Water Project
- The New Development Bank (NDB) has signed a loan agreement of USD 100 million with the government for financing a water project in Rajasthan.The loan agreement for financing of Rajasthan Water Sector Restructuring Project for the desert areas was signed between the Government of India and NDB on February 13, 2018.
- New Development Bank: NDB is headquartered in Shanghai, China and its a multilateral development bank promoted by BRICS nations viz. Brazil, Russia, India, China and South Africa. It is outcome of 6th BRICS Summit being held in Fortaleza, Brazil. It will have a regional office in Johannesburg, South Africa. The goal of the bank is to fund infrastructure projects in emerging economies for sustainable development.
- The loan agreement is the first tranche of the USD 345 million by the NDB under the multi tranche financing facility for this project.
- The project benefits include arresting the seepage by rehabilitating the deteriorating canal lining of the Indira Gandhi Nahar Project (IGNP) which needs urgent attention; rehabilitation of waterlogged areas; modernisation and optimisation of the irrigation management practices in the project area by involvement of the water users associations (WUA) in the command area.