Striking a glimmer midst overall gloom of energy shortage across the country, India’s Petroleum Ministry has forecast an estimated 75% increase in natural gas production over the next five years to between 163- million and 175-million standard cubic meters per day, up from 100-million cubic meters a day at present.
In an internal note circulated among relevant government departments including, power ministry, the Petroleum Ministry said that higher natural gas production would be achieved despite the fall in production in the current year and the fact that about 24 000 MW of natural gas based power projects have been left stranded owing to shortage of fuel.
The note and the production forecast was a background to the governmental exercise to frame a ‘pool pricing’ mechanism to supply natural gas to various user industries averaging the prices of domestic and imported natural gas, an official in the Petroleum Ministry said.
The Indian government last month approved a hike in domestic natural gas price to $5.61 per million metric British thermal unit (mmBtu) up from $4.20/mmBtu with effect from November 1. The prices would be reviewed every six months with next scheduled for April 1.
The country’s natural gas production was down 13% during 2012/13 at 97-million cubic meters a day and expected to marginal rise to 100-million cubic meters a day during the current fiscal.
According to the Petroleum Ministry, the bulk of the increase production would be accounted by the national oil and gas exploration and production (E&P) major ONGC Limited, which was expected to ramp up production from 24-billion cubic meters in the current years to 35-billion cubic meters by 2019 riding on back of development of its new blocks including Daman offshore in western India and commissioning of blocks KG-98/2 in the Krishna Godavari Basin.
The country’s second largest E&P major Oil India Limited was targeting an increase in natural gas prodiction from 2.8-billion cubic meters at present to 4-billion cubic meters by 2019 once production begins from its gas blocks at Baghjan in north eastern Indian province of Assam, next financial year and its assets also at the KG Basin,
Based on the new production forecast, petroleum ministry all incremental gas produced would be used for supplies to the fertilizer industry up to the level of 31.5-million cubic meters a day as per recommendation of a high power government inter-ministerial body while the balance if any would be earmarked for power generation.
Source: miningweekly.com
In an internal note circulated among relevant government departments including, power ministry, the Petroleum Ministry said that higher natural gas production would be achieved despite the fall in production in the current year and the fact that about 24 000 MW of natural gas based power projects have been left stranded owing to shortage of fuel.
The note and the production forecast was a background to the governmental exercise to frame a ‘pool pricing’ mechanism to supply natural gas to various user industries averaging the prices of domestic and imported natural gas, an official in the Petroleum Ministry said.
The Indian government last month approved a hike in domestic natural gas price to $5.61 per million metric British thermal unit (mmBtu) up from $4.20/mmBtu with effect from November 1. The prices would be reviewed every six months with next scheduled for April 1.
The country’s natural gas production was down 13% during 2012/13 at 97-million cubic meters a day and expected to marginal rise to 100-million cubic meters a day during the current fiscal.
According to the Petroleum Ministry, the bulk of the increase production would be accounted by the national oil and gas exploration and production (E&P) major ONGC Limited, which was expected to ramp up production from 24-billion cubic meters in the current years to 35-billion cubic meters by 2019 riding on back of development of its new blocks including Daman offshore in western India and commissioning of blocks KG-98/2 in the Krishna Godavari Basin.
The country’s second largest E&P major Oil India Limited was targeting an increase in natural gas prodiction from 2.8-billion cubic meters at present to 4-billion cubic meters by 2019 once production begins from its gas blocks at Baghjan in north eastern Indian province of Assam, next financial year and its assets also at the KG Basin,
Based on the new production forecast, petroleum ministry all incremental gas produced would be used for supplies to the fertilizer industry up to the level of 31.5-million cubic meters a day as per recommendation of a high power government inter-ministerial body while the balance if any would be earmarked for power generation.
Source: miningweekly.com
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