DGH projects huge gas outflow from KG basin by 2011-12

Mumbai, Aug 30 | Updated: Aug 31 2006, 05:30am hrs
Its now official. The Directorate General of Hydrocarbons (DGH) has projected 134 million stand cubic metre per day (MMSCMD) of gas from new exploration licensing policy (NELP) blocks by 2011-12 in Krishna-Godavari basin.

In its recent communication to the petroleum ministry, DGH has said the total gas availability of 134 MMSCMD by 2011-12 form NELP blocks were offered to Reliance Industries Ltd., (RIL) and Gujarat State Petroleum Corporation (GSPC) under different rounds of NELP global bidding rounds.

The blocks from which the above gas would be available are operated under Production Sharing Contract (PSC), signed between the Centre and RIL and GSPC. As per the PSC, these companies/contractors are free to market the gas at arms length, at market driven prices.

DGH has projected gas production of 40 MMSCMD in 2008-09 with progressive increase to 80 MMSCMD by 2011-12 in Dhirubhai field. However, DGH has not given any projection for GSPC fields in the Krishna-Gogavari basin.