India’s natural gas production to grow over 60% in FY10

India’s natural gas production to grow over 60% in FY10
PTI
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First Published: Thu, Apr 23 2009. 01 29 PM IST
Updated: Thu, Apr 23 2009. 01 29 PM IST
Mumbai: India’s natural gas production is expected to grow by over 60% in the current fiscal on the back of higher output from Reliance Industries’ eastern offshore KG basin block, an economic think-tank has said.
“In 2009-10, we expect domestic natural gas output to grow by a robust 60.5% to 52,239 million cubic metres (mcm),” Centre for Monitoring Indian Economy (CMIE) said in its April review.
“This is largely because of commencement of natural gas production from Reliance Industries’ (RIL) Krishna Godavari basin,” CMIE said.
Cumulative domestic natural gas production during April -February 2008-09 was 30,019 million cubic metres, it said.
“For the same period, demand stood at 34,062 mcm. In 2008-09, natural gas output is expected to grow by a meagre 0.8 per cent to 32,529 mcm,” CMIE said.
Mukesh Ambani-led RIL began production from its prolific D6 block on 1 April and currently produces 13 million standard cubic metre per day (mmscmd) of gas.
The initial 15.3 mmscmd output has already been committed to urea-making plants and volumes above this would go to gas-based power plants.
“This will help to meet the fast growing demand for natural gas in the country, especially from the fertiliser and power sectors,” CMIE said.
RIL’s project will double domestic natural gas production in 2010, when the field is expected to hit peak output of 80 mcm per day.
CMIE further said that cumulative domestic crude oil output dipped 1.7% to 306.5 lakh tonnes during April-February 2008-09.
During the same period, ONGC, which accounts for 75% of total domestic crude oil production, witnessed a decline of two per cent in output to 232.4 lakh tonnes, it added.
“Production by private and joint venture companies was down by 8.6% to 42.4 lakh tonnes. Output by Oil India rose by 12.8% to 31.7 lakh tonnes,” CMIE said.
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First Published: Thu, Apr 23 2009. 01 29 PM IST
More Topics: CMIE | Natural Gas | Production | RIL | Godavari |