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ONGC-led consortium to hike Panna field output

ONGC-led consortium to hike Panna field output
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First Published: Tue, Apr 17 2007. 12 15 AM IST
Updated: Tue, Apr 17 2007. 12 15 AM IST
The Oil and Natural Gas Corporation (ONGC)-led consortium that owns the Panna-Mukta-Tapti (PMT) gas fields in western India plans to raise its output by 30%, in an effort to cater to India’s growing demand for the fuel, said an executive of ONGC. “The gas production from PMT will raise from 13 million metric standard cubic metre per day (mmscmd) to 17 mmscmd by August or September this year,” said Sudhir Vasudevan, executive director, offshore, ONGC.
The demand for gas in the country is 150 mmscmd as opposed to supply of 90 mmscmd. The shortage has affected power plants, and fertilizer and cement companies that run on gas.
The consortium, which also includes British Gas (BG) India and Reliance Industries Ltd (RIL) also plans to invest $520 million (Rs2,192 crore) to set up two platforms in the fields. While ONGC holds a 40% stake in this field, BG and RIL have a 30% stake each. The production from the field is expected to plateau within the next four years.
Meanwhile, R.S. Sharma, chairman and managing director, ONGC said his company would increase the refining capacity at its proposed Rs20,000 crore Kakinada Refinery and Petrochemicals Ltd (KRPL) plant in Andhra Pradesh from the earlier planned 7.5 million tonnes per annum (mtpa) to 15 mtpa in an effort to leverage economies of scale.
“The refinery, currently promoted by MRPL (a subsidiary of ONGC) will be taken on the books of ONGC since the balance sheet of MRPL is not strong enough to finance the project,” said Sharma .
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First Published: Tue, Apr 17 2007. 12 15 AM IST
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