New Delhi: Reliance Industries’ eastern offshore KG D6 natural gas field will have a peak output of 80 million cubic metres per day for six years beginning 2011-12, said minister of state for petroleum and natural gas Jitin Prasada on Monday.
“Currently gas production from KG D6 is 31 mmcmd,” Prasada informed the Rajya Sabha.
RIL started gas production from the KG D6 fields on 2 April and has signed contracts with 15 fertilizer plants to sell close to 15 mmcmd gas. Additionally, it will also supply over 25 mmcmd to 19 power plants and 3.3 mmcmd to steel plants.
Prasada said RIL will produce 21.9 billion cubic metres of gas in 2009-10 and 2010-11 before hitting the peak of 29.2 bcm (or 80 mmcmd) in 2011-12. “The plateau production of 80 mmcmd is for six years (till 2016-17).”
From 2017-18, output will start declining first to 21.9 bcm and then to 14.6 bcm in 2018-19.
Investment banker Morgan Stanley had last week stated that the KG D6 fields at peak production will help the nation save $8.3 billion annually or 0.7% of the GDP.
Peak output could replace close to 26 million tonnes of crude oil, which is as much as ONGC produces domestically, or about 17% of the current demand in India.
In addition, the 20 mmcmd gas to the fertilizer industry will help produce 13 million tonnes or 50% of the country’s fertilizer production, and about 12,500MW of power, or 8-9% of the overall power produced in the country, can run on RIL’s gas.