New Delhi: Reliance Industries Ltd, owner of the world’s third-largest refinery, has discovered natural gas in two areas, raising the chances of boosting output of a fuel, a commodity that’s in short-supply in the country.
The company struck gas off the east coast, in the same area where it had made the world’s largest find in 2002. The second find was off the west coast, the Mumbai-based company said today in an e-mailed statement.
Mukesh Ambani-controlled Reliance made the 18th discovery today in the Krishna-Godavari basin, where previous finds have shown reserves that may double India’s output of gas.
Low output forces India to imports three-fourths of its oil requirement.
“The discovery increases the possibility of there being a larger reserve of gas than has been estimated on the east coast,” said Kenin Jain, an analyst at Mumbai-based ASK Securities India Pvt. Ltd.
The discovery off the east coast was in KG-D6-R1 well at a water-depth of 4,860 metres, the company said. The discovery has been notified to the Directorate General of Hydrocarbons. Reliance owns a 90% stake in both the fields. Canada-based Niko Resources Ltd owns a 10% stake in the east coast area and UK-based Hardy Oil & Gas Plc. owns an equal amount on the west coast.
The GS-OSN-2000/1 area, under test conditions, produced gas at a rate of 18.6 million cubic feet a day together with 415 barrels a day of condensate, Hardy Oil said in a statement.
The west coast discovery was made at GS-01-B1 well where drilling began on 2 March in a water depth of 79 metres using a semi-submersible rig ‘Actinia’.
India’s gas supply of 85 mcm a day, including imported liquefied natural gas, falls short of demand of 170mcm, according to oil ministry estimates. Consumption may rise to 400mcm a day by 2025, if the economy grows at the projected 7-8% a year.