ONGC allowed to produce ATF

The ministry of petroleum and natural gas has raised the issue of kerosene production while processing the Oil and Natural Gas Corporation's application for grant of marketing rights for the aviation turbine fuel.

Senior officials told Business Standard that while the company's application is in the final stages of approval since it meets all the criteria, the ministry wants to ensure that production of ATF would not come at the cost of kerosene production.

The company plans to produce and sell 20,000 kilo litre of ATF from its Hazira unit in Gujarat. The quality of ATF to be produced would be Jet-A1 grade.

ONGC had also sought the permission of the director general of civil aviation for production, storage and delivery of ATF. ONGC plans to market ATF for captive use at Juhu and Nhava helibase for re-fuelling its chartered helicopters used for offshore operations. ONGC has also applied to supply ATF refuelling stations at various airports.

The balance production could be marketed to airlines thorough the oil marketing companies. ONGC has set up two floating roof tanks of 5,000 kilo litre each and two fixed roof tnslf of 1,000 kilo litre each at Hazira. A new storage facility is under construction at Nhava.

Officials in the ministry said while the issues of kerosene availability and ATF marketing rights were independent of each other, the criteria relating to restriction on kerosene production applicable to stand alone refineries would be applicable to ONGC.

"It is felt that since ONGC met the criteria set by the government in 2002 at the time of dismantling of the administered price mechanism for marketing of petrol, diesel and ATF, it should be granted marketing rights," said an official.