India’s natural gas production is projected to jump by 52 per cent to 122 million standard cubic metres per day by 2024 as state-owned Oil and Natural Gas Corporation (ONGC) and Reliance Industries Ltd-BP combine raise output from the KG basin fields. Natural gas production in 2019-20 was 85 mmscmd, which is estimated to have fallen to 80 mmscmd in the following year, HDFC Securities said in a report.
The output is projected to rise in the current fiscal that started on April 1 to 93 mmscmd, 107 mmscmd in the following year and 122 mmscmd in 2023-24, the brokerage estimated.
The increase in production augments well with the government plans for raising the share of natural gas in the country’s energy basket to 15 per cent by 2030 from the current 6.2 per cent in a bid to cut emissions.
ONGC, which had in recent years seen output stagnate, is likely to see production rise to 67 mmscmd in 2021-22 from 62 mmscmd in the previous year. This would rise to 69 mmscmd in FY23 and 75 mmscmd in FY24.
Reliance-BP combine, which in December last year brought newer fields in their eastern offshore KG-D6 block to production, would lead to the rise in gas output by non-PSUs. Its output, which was 11 mmscmd in 2020-21, would rise to 38 mmscmd by FY24, the brokerage estimated.
It projected domestic gas demand to climb from 153.8 mmscmd in FY21 (April 2020 to March 2021) to 215.5 mmscmd in 2024-25.