High costs take sheen out of Krishna Godavari basin

DC | U. SUDHAKAR REDDY
Published Jul 16, 2014, 10:29 am IST
Updated Mar 31, 2019, 7:01 pm IST
RIL has been producing 12-13 Million Metric Standard Cubic Metres Per Day from KG-D6
Picture for representational purpose
 Picture for representational purpose

Kakinada: While gas-based power plants in the state are shut due to lack of supplies, Reliance Industries Limited is far behind the targeted gas production and state-owned ONGC and Gujarat State Petroleum Corporation are yet to start commercial production in the Krishna Godavari basin.

As on Tuesday RIL has been producing 12-13 Million Metric Standard Cubic Metres Per Day from KG-D6 including D1 and D3 fields and MA field which is much below the promised target of 80 MMSCMD. Though RIL is claiming officially that “reservoir complexity and geological surprises and not hoarding” have resulted in decreased gas production, the price issue has once again come to the fore with the Centre slapping an additional fine of $579 million against RIL for producing less gas. 

 

Experts are also attributing the delay in starting of production of gas by ONGC and GSPC to the economic viability as the current price of $4.2 per MMBtu is considered to be less. Gujarat-owned GSPC has asked the government to approve a price of about $13 for the natural gas it plans to produce from its Deen Dayal West (DDW) gas field in Block KG-OSN-201/3 this month.

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Location: Andhra Pradesh




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