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India’s natural gas production will double in four years: Oil Ministry
India’s natural gas production is expected to double to 72 billion cubic meter (bcm) in four years through 2022, the oil ministry recently told a Parliamentary panel. The government is currently working on a plan to shift the country towards a gas-based economy.
The nation produced 35 bcm of natural gas last financial year (2017-18). Of this, state-owned explorer Oil and Natural Gas Corporation (ONGC) accounted for 24.2 bcm or 68 per cent, Oil India Ltd (OIL) produced 2.9 bcm and private firms and their joint ventures accounted for the rest 7.9 bcm.
By 2021-22, this mix is expected to undergo a significant change with private JVs accounting for the largest chunk – 40.3 bcm – followed by ONGC’s production at 27.8 bcm and OIL contributing 3.7 bcm of gas.
India’s natural gas production will double in four years: Oil Ministry The ministry told the Parliamentary Standing Committee on Petroleum and Natural Gas, the main reason for the shortfall witnessed in natural gas production during the 12thplan period (2012-17) was lower production from NELP deepwater block KG-DWN-98/3 operated by Reliance Industries (RIL) and the delay in production from ONGC-operated KG-DWN-98/2 coupled with the natural decline in ageing fields.
The ministry added it has taken multiple policy initiatives to ramp up the country’s oil and gas production including gas pricing reforms, policy framework for early monetization of Coal Bed Methane (CBM), Discovered Small Field (DSF) policy, Hydrocarbon Exploration and Licensing Policy (HELP) and the operationalization of Open Acreage Licensing Policy (OALP).
Asked how does ONGC plan to increase production, the company told the panel: “One of the biggest projects which we have undertaken, as on date, is going on schedule. From that discovery alone, we expect to get close to 4 million tonnes of oil which was only a gas discovery and almost 13-14 million cubic metre gas per day. This will take a while. This will come sometime around 2021-22.”
RIL chief Mukesh Ambani, during the company’s recent Annual General Meeting, announced the firm plans to start natural gas production with its partner BP from its KG-D6 block by 2020, expecting to reach a peak of 30-35 Million Cubic Meter Per Day (MMSCMD) production by 2022.
India’s natural gas production grew for the first time in six years in last financial year ended March 2018, primarily due to natural gas production from onshore blocks offsetting continuous decline from offshore blocks. Ja’Wuan James Authentic Jersey
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