You are here: Home » Economy & Policy » News
Business Standard

Domestic natural gas production to reach 36 bcm by 2020: Report

The country plans to increase its gas usage in the energy mix to 15 per cent from the current 6.5 per cent

Jayajit Dash  |  Bhubaneswar 

Representative image Photo: Reuters
Representative image Photo: Reuters

After witnessing a decline till 2016-17 due to less than expected output from the Krishna Godavari (KG) basin and ageing wells, the country's production has bounced back, registering five per cent growth in April-August of FY17.

output is expected to expand in the coming years. It is expected to touch a level of 36 billion cubic metres (bcm) by 2020, according to a report by

The country plans to increase its usage in the energy mix to 15 per cent from the current 6.5 per cent. The global average for use in energy is 24 per cent.

The rise in production would also be supported by a number of investments in exploration and production segments. As per the estimates by the Ministry of Oil & Gas, there is scope of $300 billion worth of hydrocarbon projects in the country.

Ltd along with its partner BP Plc, has decided to invest $6 billion for the development of new R-series fields in the KG-D6 block. Similarly, Oil & Corporation (ONGC) has plans to invest $11 billion in exploration and development of blocks in the KG basin, which is expected to increase production by around 30 per cent over the next three to four years. Also, has signed an agreement with the Andhra Pradesh government to invest around Rs 78,000 crore in the for producing by 2021-22.

According to the report, the demand for in the country is predicted at 57.4-57.6 bcm by 2020. The demand of is likely to depict a strong growth with major demand from power and fertiliser sectors. Distribution (CGD) sector is expected to grow faster and its share in consumption will continuously increase over time. The government, along with cash-rich PSUs, are jointly investing over Rs 50,000 crore to revive closed and setting up pipelines which would make India self-sufficient in is used as a feedstock for There are 30 plants, out of which 27 run on and according to the second phase of 'Pooling Policy', the remaining three plants will also be converted to gas-based plants.

Imports in the form of (liquefied natural gas) will continue to grow at steady levels to the extent of plugging in the structural gap between demand and domestic production. Currently, all re-gasification facilities are concentrated on the country's western coast. With the proposed new plants on the eastern coast, the disparity in supplies is likely to be diminished.

 

First Published: Mon, November 06 2017. 18:34 IST
RECOMMENDED FOR YOU