Hazira plant flooded, loss Rs 1.5 bn

New Delhi: The revenue loss suffered by the state-owned energy major Oil and Natural Gas Corporation (ONGC) due to the flooding of its Hazira Gas Processing Complex in Gujarat is expected to touch Rs 1.5 billion.

"We are facing a daily revenue loss of Rs 190 million due to the shutdown of the processing plant," ONGC chairman and managing director R S Sharma said Thursday after a review of the situation at the south Gujarat unit.

While the floodwater began receding Thursday morning, the ONGC head said it was too slow to allow technicians to access the actual damage to the machinery and control panels.

"Massive overhauling will be required at the plant as the muddy water has entered the control system. The earliest we can hope to restart the operation would be after four-five days. We plan to recommence operations in a phased manner," said Sharma told IANS.

As the plant has been insured, the company has notified the insurers about the damage due to heavy rains and floods since late Tuesday night.

If the plant were shut down even for only eight days it would mean revenue loss of over Rs 1.5 billion, officials said.

The ONGC operational teams, headed by director (technology and field services) U N Bose, were monitoring the situation and gearing up for the restoration work.

They will inspect the compressor, plant and machinery before beginning the cleaning, drying and other activities to get it operational after the two to five feet deep floodwater recedes.

The Hazira gas processing plant receives around 40.5 million metric standard cubic meters per day of gas from ONGC's offshore Bassein field and the joint venture Panna-Mukta and Tapti gas fields.

It processes it to produce 1,650 metric tones (MT) of liquefied petroleum gas (LPG), 3,350 MT of aromatic naphtha, 417 MT of superior kerosene oil (SKO) and 48 MT of high-speed diesel (HSD).

Heavy rains in the catchment area of the Tapi river caused the Ukai Dam to overflow, forcing authorities to release large quantities of water this week. The move flooded Surat, the second largest city of Gujarat, and affected operations of gas and petrochemical units in the region.