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• The oil ministry has empowered state-run exploration firms ONGC and Oil India to choose customers for gas produced from small fields where output is less than 0.1 million standard cubic meters per day, which would reduce bureaucratic delays and help companies generate revenue expeditiously, government and industry officials said. "National oil companies are now allowed to find customers for gas produced from all existing and new gas fields with less than 0.1 mmscmd output that can't be connected to the grid," said an oil ministry official who did not wish to be named. ONGC chairman & managing director Sudhir Vasudeva welcomed the move. "This will help companies in monetising stranded assets quickly by choosing customers locally. It is a major policy reform. Isolated gas would now be utilized effectively that will help the economy as a whole, besides generating revenue for companies," Vasudeva told ET.
• Industry estimates that quantity of such gas could be around 3-4 mmscmd. Executives in energy firms said gas produced in small quantities with low pressure was often flared as connecting it to the grid was very difficult. "Installing compressors to put gas in the system was costly. But the move would certainly help in utilizing such gas," one executive said. "The policy decision is certainly in the right direction, but the definition of such fields is very narrow. The criterion of 0.1 mmscmd is very small and the government should consider revising it upward," Oil India chairman & managing director Nayan Mani Borah said. Oil ministry officials said the companies would enjoy the freedom within the framework of national gas pricing and utilization policy with considerable flexibility. "Earlier, the ministry specified customers. Now companies can invite bids from local consumers and sign supply contracts without the government's interference," one official said.

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