GSPC, wholly-owned by the Gujarat government and six statutory state undertakings, has in collaboration with Canadian major Niko Resources Ltd (NRL) struck huge reserves of gas in Hazira block, enough to sustain the power needs of a large number of industries in and around Hazira--including Reliance, Essar, Kribhco and L&T.

Sources said that the block, at present producing one lakh standard cubic metres of gas from four wells, is expected to produce three million cu.m. of gas by mid-1999, after drilling a dozen more vertical and inclined wells. In the first phase, an artificial island (drilling base) is being created off the Hazira coast.

GSPC was set up to handle downstream petrochemical products in 1979. But, after the opening up of the hydrocarbon sector for privarte players, itbid for development of small-sized oil and gas fields in and around Gulf of Cambay as a nodal agency of the Gujarat government.

Subsequently, GSPC entered into joint ventures with different foreign and domestic companies to develop 14 blocks. The Hazira block, in which GSPC held 66.7 per cent share and Niko 33.3 per cent, hit virtually a treasure chest.

GSPC has also entered into a joint venture with Niko, participating interest varying between 33 and 40 per cent, to develop four more fields in Cambay, Bhandup, Sabarmati and Matar, out of which only Cambay has yielded positive results so far.

Similarly, GSPC has entered into a joint venture with Baroda-based Hindustan Oil Exploration Company (HOEC) on 50:50 basis to develop Asjol field, besides Tarapur.

In collaboration with Heritage Oil & Gas of the UK, HOEC and AMEC, also of Baroda, GSPC propose to develop North Balol, Unawa, Dholasan, North Kathana, Kanawara and Allora prospective oil and gas fields.

With Hazira fast developing into a majorindustrial hub and sea port in the country's western coast, GSPC was exploring the possibility of importing LNG on medium term basis and natural gas by pipeline from Iran and Qatar on long term basis.

Since the country's oil and natural gas demands in the coming years were going to far outstrip the production, sources said, GSPC was also interested to diversify into expoloring coal bed-methane (CBM) in future.