Cairn to begin gas production from Rajasthan by March-end
Cairn currently produces small volumes of natural gas along with crude oil from the fields in the Barmer basin block. The gas produced in used for power generation for internal consumption.
It, however, sees the resource base supporting commercial production of about 1 million standard cubic metres per day.
Anil Agarwal, Executive Chairman of Vedanta Resources, which owns majority stake in Cairn India, has written to Oil Minister M Veerappa Moily saying the company "will be ready to achieve sale of natural gas from the block in March 2013."
Cairn and its partner Oil & Natural Gas Corp (ONGC) "have been working towards ensuring development and commercial production of the natural gas resources in the block and have achieved substantial progress," he said.
Gas sales, he said, would begin upon "approval of price and gas allocation from Ministry of Petroleum and Natural Gas as per Gas Utilisation Policy.
The company has already sent a letter seeking approval of a price for the gas to the ministry on January 30, he said.
Agarwal invited Moily to the fields to inaugurate the sale of natural gas from the Rajasthan block.
Sources said Cairn is installing equipment to remove carbon-dioxide (CO2) from the gas before it is sold to consumers like power plants.
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