InvestorQ : Is it true that the Reliance KG-D6 is likely to contribute substantially to the gas production in India?
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Is it true that the Reliance KG-D6 is likely to contribute substantially to the gas production in India?

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Priyanka N answered.
3 weeks ago
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Finally there is confirmation from the Directorate General of Hydrocarbons or DGH that India's natural gas production had managed to cross the pre-COVID levels. This was only after output from the KG-D6 field operated by Reliance and BP went on stream. At the start of Feb-20, the natural gas production in India had stood at 80 mmscmd

However, with the Reliance / BP output also coming on stream, the output of natural gas has now scaled 85 mmscmd in Feb-21. This recovery is attributed to RIL and BP starting off generating gas from the KG-D6 block, in the Krishna Godavari basin of the coast of Andhra Pradesh. ccording to the DGH, gas production could rise further in 2021.

While the broad production of gas has picked up at a macro level, it is actually quite surprising that ONGC and Oil India are still continuing to produce gas at around the same levels as they did in Nov-20. In short, there is no post-COVID recovery in out from the side of two of India’s leading public sector oil and gas extractors.

Output from the KG-D6 block of RIL-BP has already touched 6 mmscmd and is now slated to cross 13 mmscmd by Jun-20, which could make a substantial difference to the overall output from the Indian stable. It also has implications for the fuel mix in India. Currently, natural gas is just 6.23% of the energy mix. The major consumers are Fertilizer plants - 33%, power plants - 18%, CGD - 18% and oil refineries - 13%.

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