RIL ramps up K-G basin gas capacity to 80 mmscmd

Written by fe Bureau | Mumbai | Updated: Dec 30 2009, 03:37am hrs
Reliance Industries Limited (RIL) on Monday said it has ramped up capacity of its K-G D6 deepwater gas production facilities from 60 million standard cubic metre (mmscmd) to 80 mmscmd. RIL has successfully carried out an assessment of the design capacity of the K-G D6 deepwater gas production facilities on December 23. A flow rate of 80 million standard cubic metre was achieved through the K-G D6 facilities and delivered to RGTIL's East West Pipeline, the company said in a media release.

At present, the 60 mmscmd of gas is being supplied to several priority sectors identified by the Centre under its Gas Utilisation Policy. Since commencement of production in April this year, the field has produced over 8.5 billion cubic metres of gas, the company said. The company did not specify the financial implications of the ramp up.

RIL had recently announced its third gas discovery in the exploration block of Nelp-V in the Krishna basin off the Bay of Bengal coast. The block covers an area of 3,288 square kms. RIL holds a 90% participating interest (PI) and Hardy Exploration and Production India Inc, the remaining, in the block. In August 2005, Reliance and HEPI were awarded D3 block under Nelp-V. Reliance is the operator of the block. The commercial potential of the discovery is being ascertained through more data-gathering and analysis, RIL had said. The new discovery, named 'Dhirubhai-44', has been notified to the Centre and the directorate general of hydrocarbons .

In February 2008, Reliance made the first gas discovery in the K-G Basin and named it Dhirubhai-39. In May that year, RIL made its second discovery of gas in the K-G basin, and named it Dhirubhai 41. RIL started production of natural gas from the K-G basin on April 2, 2009.

RIL said the gas supply from the K-G D6 facility has already impacted various aspects of the country's economy. The IIP has acknowledged the contribution of the production of K-G D 6 in the double digit growth registered by the mining sector in the last two successive quarters. With increased availability of gas, production of indigenous fertilisers has increased and cost of production reduced, thereby resulting in savings of about Rs 4,000 crore per annum in government subsidies, it said.