RIL becomes largest gas producer in India

Reliance Industries (RIL) has become the largest natural gas producer in the country with its over 50 million standard cubic meter per day (mmscmd) output surpassing state-run Oil and Natural Gas Corporation's (ONGC) output.

RIL's gas production from its D6 fields in the Krishna Godavari basin yesterday touched 50.15 mmscmd, according to the regular output report RIL sent to the oil ministry.

This for the first time surpasses ONGC's 49.6 mmscmd output.

"RIL is now the country's largest gas producer," a ministry official said.

KG D-6 output has also helped the nation cross 100 mmscmd of domestic gas production. Besides, RIL and ONGC, about 16 mmscmd is produced by BG Group-operated Panna/Mukta and Tapti fields.

RIL, which had begun gas production from KG D-6 on April 2, is targeting a peak output of over 80 mmscmd from fields.

The official said 22.84 mmscmd of D6 gas is sold to power companies, 15.19 mmscmd to fertiliser units and 5.05 mmscmd to steel manufacturers. Refineries including those of RIL, who were recently named as additional customers, are drawing about 5 mmsmcd.

State-run gas utility Gail India is buying 1.8 mmsmcd of D6 gas for its LPG plants while 0.28 mmscmd is going to city gas companies for supply as CNG.

The output will rise to 60 mmsmcd by next month-end and to 65 mmsmcd in January. Peak output is expected in the second half of 2010.

ONGC's majority of gas production comes from its Bassein and Mumbai High fields. The two fields produce about 42 mmscmd.