PSU oil cos strike affects work at 4 refineries

With the Indian economy already wobbling following the global meltdown, the Oil Sector Officers Association partially shut its precious lifeline energy, halting gas supplies and closing some refineries in an indefinite protest from Wednesday against government's decision to give wage hikes lower than recommended.

Oil and Natural Gas Corp shut down gas processing units at Uran, Hazira and Gandhar stopping natural gas supplies from the country's largest Mumbai High and western offshore fields. , thereby forcing a shutdown of GAIL India Ltd (GAIL.NS : 412.9 +3.7)'s Hazira-Bijaipur-Jagdishpur gas pipeline.

"Gas supply pressure from ONGC (ONGC.NS : 1165.15 +-9) fields started reducing from 0230 hrs and came to a grinding halt at 0600 hrs, forcing us to cut supplies on HBJ," GAIL Chairman UD Choubey said.

The ONGC shutdown also stopped most of the gas supplies from privately operated Panna/Mukta and Tapti fields as the fuel from these passes through its processing units and pipelines. Only 1.5 million standard cubic meters per day out of 18 MSCMD was being supplied.

Sources said that fertiliser plants along the HBJ had been closed or were in the process of closing while power plants getting gas from the same pipeline had brought down the plant load to one-third. "By evening, these would have shut down fully," they said.

Operations at four refineries were also hit with Haldia unit going off while Panipat, Mathura and Koyali refineries under a cooling down process. This would affect the petroleum products availability after a lag as processed products stored at refineries' large tanks would be available for retail outlets for some time.

However, aviation services and fuel supplies continue to be normal despite the strike that began at 0600 hours. "Aviation services are working normally. Our petrol pumps are also operating normally," Indian Oil Corp Chairman Sarthak Behuria, whose company accounts half of market sales, said.