Oil and Natural Gas Corporation (ONGC) has called on buyers to bid for natural gas from the deepwater fields of the KGDWN-98/2 block off of the east coast of India. ONGC is set to supply about 2 Million Metric Standard Cubic Metres per Day (MMSCMD) of natural gas from the fields starting at the end of June. We examine the importance and impact of this development.
Why is this important?
The ramping up of production from the KG-DWN 98/2 block by ONGC is a key component of the government’s plan to boost domestic production with the block expected to reach peak production of 15 MMSCMD by 2024. This would account for about a 20 per cent increase above the company’s current production level of about 70 MMSCMD. Natural gas production from the Krishna Godavari basin is a key part of India’s plans to reduce import dependence by boosting domestic production.
The R cluster, satellite cluster and MJ fields operated by Reliance and British Petroleum in the Krishna Godavari basin are also expected to add 30 MMSCMD of natural gas production to India’s total production by 2023. India currently imports about half of its natural gas requirements of 175 MMSCMD.