ONGC, Reliance KG Basin blocks to drive India’s natural gas output up by 52% by 2024: Report
New Delhi: A new report has projected a growth of 52 percent in India’s natural gas output to 122 million standard cubic metres (MMSCM) per day by 2024 as Oil & Natural Gas Corporation’s (ONGC) and Reliance Industries Ltd’s (RIL) blocks in the KG basin ramp up production. Natural gas production in 2019-20 was 85 mmscmd, which is estimated to have fallen to 80 mmscmd in the following year, said HDFC Securities in a report.
According to the report, India’s natural gas output is projected to rise in the current fiscal year to 93 MMSCMD, 107 MMSCMD in the following year and 122 MMSCMD in 2023-24.
ONGC’s natural gas output to rise to 75 MMSCMD by FY24
The increase in production augments well with the government plans for raising the share of natural gas in the country’s energy basket to 15 percent by 2030 from the current 6.2 percent. ONGC, which had in recent years seen its natural gas 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, said HDFC Securities.
Reliance’s natural gas output to rise to 38 MMSCMD by FY24
The Reliance-BP consortium, 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, said the report. It projected domestic gas demand to climb from 153.8 mmscmd in FY21 (April 2020 to March 2021) to 215.5 mmscmd in 2024-25.
‘Increased gas supply from KG Basin should drive earnings for gas utilities’
India’s domestic gas production is inadequate to meet all its requirements and the deficit is met through imports in the form of liquefied natural gas (LNG). HDFC Securities said 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 additional gas will be available for sale at the delivery point at Gadimoga, near Kakinada, tentatively from the last week of April or early May this year.