Gas output to rise more than half by 2016-17: Moily

    By IANS,

    New Delhi : Incentivised by higher prices, India’s natural gas production is projected to rise to 175 million standard cubic metres per day by 2016-17, Petroleum Minister M. Veerappa Moily said Friday


    Support TwoCircles

    “Gas production will rise from 105 mmcmd in 2013-14 to 129 mmscmd in 2014-15, 139 mmscmd in 2015-16 and to 175 mmscmd in 2016-17,” Moily told media persons here.

    The government in June approved pricing of domestically produced gas at an average of the cost of LNG imported into India and international hub, or market, rates, applying which formula the price for gas for the April-June quarter of this fiscal comes to $6.83 per million British thermal unit (mmBtu).

    The Directorate General of Hydrocarbons (DGH) intimated the ministry Thursday the projections for Reliance Industries’ (RIL) KG-D6 gas, as per which average production will be 19 mmscmd for 2013-14, 17.4 mmscmd for 2014-15, 15 mmscmd for 2015-16 and nearly 20 mmscmd for 2016-17.

    State-run Oil and Natural Gas Corp (ONGC) is expected to produce 29 mmscmd from neighbouring KG-DWN-98/2 or KG-D5 block from 2016-17.

    Further, according to DGH, Gujarat State Petroleum Corp (GSPC) will produce 5.24 mmscmd output from its KG-OSN-2001/3 block in 2016-17.

    Moily said huge gas discoveries have been made in the North East, particularly in Manipur, for which road and other infrastructure like bridges are needed for exploration rigs to reach there.

    “Jubilant Energy has already declared discovery of 0.7 trillion cubic feet in Tripura. There is a huge prospect in Manipur which can go up as high as 7 tcf. However, the exploration is yet to take place due to unapproachable terrain,” Moily said.

    “I am taking it up with the state government (Manipur) and Planning Commission to ensure that a few bridges are constructed,” he added.

    SUPPORT TWOCIRCLES HELP SUPPORT INDEPENDENT AND NON-PROFIT MEDIA. DONATE HERE