DINESH KUMAR PANDE, Director (Exploration), ONGC, is a many-sided man. A petroleum geologist by profession, he joined the ONGC in 1976.

THE ONGC Videsh Limited (OVL), a subsidiary whose primary business is to bid for oil and gas acreages abroad and produce hydrocarbons, is going places. According to R.S.

GAIL India, the country's largest transporter and marketer of natural gas, will set up a wholly owned subsidiary to sell gas to households, vehicles and industries in cities across the country.

Chevron, the US oil and gas company, said on Monday it would develop a second liquefied natural gas hub in Australia, adding to its Gorgon venture and rivalling a neighbouring project owned by Woodsid

'Unauthorised' laying of new pipelines cannot be allowed, says gas regulator. The Petroleum and Natural Gas Regulatory Board (PNGRB) seems to be heading for a collision with the gas distribution companies that it is supposed to regulate. According to the gas regulator, no company can build or expand a gas distribution network without the permission of the PNGRB. However, leading gas distribtion companies are laying new pipelines every day without its permission. "Permissions are not needed for each locality separately. We have the permission to operate in Delhi and the city is one geographical area,' said Om Narayan, managing director of Indraprastha Gas Ltd (IGL), which retails gas to households and vehicles in Delhi. The regulator, in October last year, had pulled up IGL for expanding its pipeline network to the city's Vasant Vihar area without seeking its permission. The company, however, continues to expand, with it now laying pipelines in Vasant Kunj. A host of other companies already in the business are also expanding their network "in order to meet consumer demand'. Maharashtra Natural Gas Ltd, for instance, which distributes gas in Pune, is also on an expansion spree, without an express "permission' from the regulator. "The ruling does not apply to us,' says TK Majumder, managing director of the company. All of these companies started operations before the regulator formally came into being on October 1, 2007. Their city of operation was chosen for them by the petroleum ministry after directions came from the Supreme Court. The regulator is planning strict action against these companies. "We have issued notices to all of these companies. Strict action will be taken against these companies which are expanding their network without our permission,' said a member of the regulatory board. According to the regulator, existing city gas distributors will have to reapply to the regulator for "authorisation' to operate and expand in their cities. The deadline for reapplying is March 31. "It appears that almost all entities which are in business are without authorisation,' said PNGRB chairman, L Mansingh. The companies say they are expanding despite the regulator's directive as the demand for gas in cities is continuously growing. "Even the state government officials keep urging to speed up our expansion,' said SP Selvam, managing director of Central UP Gas Ltd, which distributes gas in cities such as Kanpur and Bareilli, and is planning to spread to Allahabad and Varanasi. "We cannot wait for permission,' IGL's Narayan said. THE MISSING SECTION 16 The crux of the problem lies in interpretation of the powers of the regulatory board, which was notified on October 1, 2007, after the Petroleum and Natural Gas Regulatory Board Act was passed in Parliament in 2006. The government, however, has not yet notified Section 16 of the Act, which deals with companies which already have city gas distribution operations. "Since Section 16 is not notified, the regulator has no way to deal with existing companies,' the chief of another existing city gas distribution company said. A regulatory board member however reads the issue differently. "In the absence of the Section, there is no directive on the working of the existing companies. So, all incremental works by the companies will need approvals,' the official said. Some companies are keen to eschew a fight with the regulator. A Vishwanadha Sarma, managing director of Bhayanagar Gas Ltd, which distributes gas in Vijaywada and Hyderabad, is one of them. "We are not expanding at all till there are directives from the regulator, which are likely to come once the final city gas regulations are notified (by mid-March 2008),' he said. "It is no point locking horns with the regulator.'

The world's international oil groups are turning to gas for future growth after increasingly being blocked by national companies from pursuing oil opportunities.

Eni, the Italian oil and gas group, plans to invest $4bn in Venezuela, the biggest commitment to the country by a western oil company since President Hugo Ch

Says important issues are under discussion Pakistan to levy transit fee for safety and security of the pipeline Will be built as per global standards and incorporate all safety measures NEW DELHI: India is pursuing the issue of import of natural gas from Iran through the Iran-Pakistan-India gas pipeline, and important issues concerning the implementation of the project were under discussion among the participating countries, Minister for Petroleum and Natural Gas Murli Deora told the Lok Sabha on Thursday. As per current indications, the pipeline within Iran up to the border with Pakistan would be laid and operated by an agency to be nominated by Iran that would bear all responsibility for safety and security of the pipeline within its territory, the Petroleum and Natural Gas Minister said in a written reply to a question. Safety and security of the pipeline and gas within Pakistan would be provided by the Pakistan government for which a transit fee would be levied. Discussions on the security package by the Pakistan Government and the transit fee were continuing. The Minister said the pipeline would be constructed as per international standards, incorporating all safety features. It was envisaged to provide round-the-clock communication and a supervisory control system all along the pipeline. The Minister, however, said no official communication was received on China joining the gas pipeline project. Protracted talks Mr. Deora emphasised that such multilateral projects involved protracted discussions, as all aspects had to be carefully examined and deliberated upon to the satisfaction of the participating countries to protect each country's interests and avoid any problems in the future.

Indonesia yesterday said it would seize Asia's largest undeveloped gas block from ExxonMobil and ask Pertamina, the state-owned energy group, to prepare a feasibility study to take over the field. The latest move in a three-year dispute between Jakarta and the US energy group was made after talks with Exxon about the Natuna D-Alpha field became deadlocked over tax issues, the extension of a contract and how to split the gas, said Purnomo Yus-giantoro, Indonesia's energy minister.