The output had fallen 8.1% y-o-y to 28,670.6 mscm in FY21. RIL and BP’s new field started production in December 2020 at 1.3 mscm per day (mscmd) and ramped up to 9.6 mscmd in March 2021.
Domestic natural gas production increased 19.1% on year to 2,740 million standard cubic metre (mscm) in May, mainly due to higher production from Reliance Industries and BP’s ultra-deep-water field in the KG-D6 Block of the Krishna Godavari basin on the east coast. The output had fallen 8.1% y-o-y to 28,670.6 mscm in FY21.
RIL and BP’s new field started production in December 2020 at 1.3 mscm per day (mscmd) and ramped up to 9.6 mscmd in March 2021.
Total consumption of 5,247 mscm of natural gas in May was 4.3% higher than the corresponding month of the previous year. The 2,587 mscm of liquefied natural gas (LNG) imported in the month was 9.2% more than the import volumes of May 2020. The cumulative LNG import of 5,242 mscm in April-May, 2021 was higher by 24.9% compared with the corresponding period of the previous year. The value of LNG import in the first two months of FY22 was $1.5 billion, about 67% higher annually.
Indigenous natural gas production caters to about 51% of the country’s requirements, while around 85% of the country’s crude oil is imported. The 2.4 million tonne (MT) of crude oil produced in the country during the month was 7.7% lower than the production in the year-ago period.
Crude oil import in May was 17.3 MT, recording an annual rise of 18.5%. Due to increase in global crude oil rates, the value of the import was $8.3 billion, 261% higher than May, 2020. In the first two months of FY22, the value of crude import, at $16.8 billion, was 217% higher than the same period last year though import volumes were up only 13.8% to 35.5 MT.
The current price for gas produced from local nominated fields has been revised to an all-time low of $1.79/ million British thermal units (mBtu) by the government, which is much below the breakeven point for most fields, deterring gas producers from aggressively increasing production or getting into new high-risk projects. For ultra-deep-water gas fields like the Krishna Godavari basin, which have higher pricing and marketing freedom, the current price cap is set at $3.62/mBtu.