By Dinakar Sethuraman/Bloomberg
Singapore: Reliance Industries, planning to spend $9.2 billion (Rs39,652 crore) on a gas production project in India, signed an agreement with Gujarat State Petronet Ltd to carry natural gas to Reliance’s chemical plant on the west coast.
Gujarat State Petronet, a government gas transporter, will send 11 million cubic meters of gas a day, or about 13% of India’s gas consumption, from Bharuch, a chemical-making town in southern Gujarat, to the country’s biggest refinery in Jamnagar, starting in 2008, Reliance said on 31 March.
Gas production in India meets only half the country’s needs and consumption is projected to increase four-fold by 2025, according to the Oil Ministry. India, which is Asia’s third- biggest oil consumer after China and Japan, consumes about 85 million cubic meters of gas a day.
Reliance has an option to increase volumes to as much as 14 million cubic meters of gas a day. Gujarat State Petronet will start transporting the gas from the second quarter of 2008 for 15 years, the statement said.
The gas will come from KG-DWN-98/3, a gas field in Krishna Godavari Basin on India’s east coast. Reliance is spending $5.2 billion to produce about 80 million cubic meters of gas a day from the deepwater field from June 2008, the company said.
Mumbai-based Reliance will spend as much as $4 billion to build a pipeline to transport the gas from the basin to Bharuch and other consumption centers in the country’s west, P M S Prasad, president, oil and gas, said on 17 March.