India’s natural gas output seen rising 52% by 2024

India’s natural gas production is projected to jump by 52 per cent to 122 million standard cubic metres per day (mmscmd) by 2024, as state-owned Oil and Natural Gas Corporation (ONGC) and Reliance Industries Ltd-BP together are expected to raise output from the KG basin fields.

Natural gas production in 2019-20 was 85 mmscmd, which is estimated to have fallen to 80 mmscmd in the following year. The output is projected to rise in the current fiscal that started on April 1 to 93 mmscmd, 107 mmscmd in the following year and 122 mmscmd in 2023-24.

The increase in production is in tune with the government plans for raising the share of natural gas in the country’s energy basket to 15 per cent by 2030 from the current 6.2 per cent in a bid to cut emissions.

ONGC, which had in recent years seen output stagnate, is likely to see production rise to 67 mmscmd in 2021-22 from 62 mmscmd in the previous year. This would rise to 69 mmscmd in FY23 and 75 mmscmd in FY24.

Reliance-BP combine, which in December last year brought newer fields in their eastern offshore KG-D6 block to production, would lead to the rise in gas output by non-PSUs. Its output, which was 11 mmscmd in 2020-21, would rise to 38 mmscmd by FY24.

India’s domestic gas production is inadequate to meet all its requirements and the deficit is met through imports in form of liquefied natural gas (LNG). The KGD6 consortium has sought bids from customers as it intends to sell an additional 5.5 mmscmd of gas from the Krishna Godavari (KG) Basin block, off the eastern coast of India.

The KG-D6 consortium has already signed the Gas Sales and Purchase Agreement (GSPA) with buyers to sell 4.8 mmscmd and 7.5 mmscmd of gas from KGD6 Basin in November-19 and February-21, respectively.

The consortium has commenced gas production from R-cluster, an ultra-deepwater gas field, in December 2020. R-cluster is the first of the three projects to come on stream.

ONGC has commenced gas production from KG-DWN-98/2 in March 2020. It is expected to reach 3 mmscmd in FY22 and further ramp up to 15 mmscmd by FY24.

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