Friday, August 24, 2007

Reblog: Oman offers India gas in exchange for coal

I've posted a news item on Oman Community Blog from an Indian online source that says that Oman has offered India a deal to supply gas in exchange for coal. According to the source:
Indian coal has a high-ash content, one reason why some domestic coal-based power plants mix it with higher quality coal that is imported. However, Oman wants Indian coal for this very reason. Fly ash is a key component in the manufacture of cement and Oman, currently going through an infrastructure and construction boom, needs as much of the building material as it can get.
The details are:
India wants 5 million standard cubic metres of gas a day (mscmd) or 1.25 million tonnes (mt) of gas a year for every 4.5mt of coal it exports in a year. In money terms, that volume of gas translates into $520-650 million (Rs2,132-2,665 crore) at current spot rates of $8-10 per million British thermal units (mBtu), although gas is available at lower rates through long-term contracts.

Related post: Where did the gas go?


Anonymous said...

muscati, a reply to your comment on OCB (since I can't comment there without an account):

There are two types of gas. Associated and non-associated. Non-associated gas is stand alone not linked to oil, and this forms the bulk of Oman's gas reserves. Associated gas is linked to oil accumulations. This gas is not produced freely. It comes out with the oil and is used mostly to power the oil production activities or is flared. Some of Oman's fields have both oil and gas but in separate geological formations; i.e., not linked. In a nutshell, the shortage in gas supply has very little to do with oil reserves.

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