RIL gas output to hit all-time low of 20 mmscmd in FY15: Reddy

NEW DELHI, May 8: Reliance Industries� eastern offshore KG-D6 gas fields are likely to see output drop to all-time low of 20 million standard cubic meters per day in 2014-15, Oil Minister S Jaipal Reddy said today.KG-D6, which had hit a peak output of 61.5 mmscmd in March 2010, is currently producing less than 34 mmscmd from Dhirubhai-1 and 3 (D1&D3) gas fields and MA oilfield.The output from the fields this fiscal would average 28 mmscmd, Reddy said in a written reply to a question in the Rajya Sabha.A larger than anticipated drop in reservoir pressure coupled with water and sand ingress in well led to D1&D3 gas fields output declining since the second half of 2010.Reddy said KG-D6 gas production in 2013-14 is projected to drop to 24 mmscmd.RIL is the operator of the deepsea KG-DWN-98/3 or KG-D6 block with 60 per cent interest while BP plc of UK holds 30 per cent stake. Niko Resources of Canada has the remaining 10 per cent stake.The Mukesh Ambani-run firm had started gas production from KG-D6 in April 2009 with an output of 30 mmscmd. This hit a peak of 61.5 mmscmd a year later but has since then been declining.�As the domestic gas availability is projected to decline in the next two to three years, the additional demand will have to be primarily met through imported liquefied natural gas (LNG),� he said.India�s demand for natural gas is projected to rise to 254.2 mmscmd in the current fiscal from 166 mmscmd in 2011-12. It is further estimated to increase to 284.27 mmscmd in 2013-14 and to 356.16 mmscmd in 2014-15.�The domestic availability of natural gas during June 2011 was around 120 mmscmd while imported LNG comprised 46 mmscmd, totalling 166 mmscmd of domestic consumption,� he said.Reddy said state-owned Oil and Natural Gas Corp (ONGC) would produce 55 mmscmd of gas in the current financial year and in 2013-14. Its output is projected to rise to 58 mmscmd in 2014-15.Oil India Ltd (OIL) would produce between 8-10 mmscmd of gas during this period while other fields would contribute 13-24 mmscmd.Total availability of natural gas from domestic sources in 2012-13 would be 104 mmscmd, which would inch up to 105 mmscmd in the following year. It would rise to 133 mmscmd in 2014-15, he added.Reddy said the gas produced by RIL and ONGC is sold at USD 4.2 per million British thermal unit while the same from Niko Resources-operated block CB-ONN-2000/2 in Gujarat is sold at USD 7.03 per mmBtu. (PTI)