RIL's KG D6 output set to rise by April

OIL regulator Directorate General of Hydrocarbons (DGH) on Tuesday said that natural gas output from Krishna Godavari's D6 block is likely to touch 60 million metric standard cubic metre per day (mmsmcd) in April this year from prevailing 52-53 mmscmd. 

"They (RIL) are producing natural gas from 18 wells currently. By April 2011, 22 wells will start producing gas. Once all 22 wells come on stream gas output will touch 60 mmsmcd," S K Srivastava, director general of DGH told reporters in the national capital on Tuesday. 

Head of oil regulator also added that production is likely to touch 80 mmscmd by 2012-13. 

Natural gas production from D6 block at KG basin operated by RIL and Niko Resources saw a 15 per cent dip in production during November-December last year. The output was as low as 45-46 mscmd from 53-54 mscmd owing to reservoir complexities. 

Exploration companies sometime face technical issues with reservoir underground. It happens because of gas pressure after wells go on-stream.

"Wells behave differently at different times," Srivastava replied when asked the reason for dip in production. 

In India, the share of natural gas has reached 11.15 per cent in the commercial energy basket after production from KG D6 that was about 8.6 per cent earlier. RIL commenced natural gas production from prolific KG basin in April 2009. The company reported 20 discoveries out of which D1 and D3 are with maximum reserves. 

At present, domestic gas production in the country is close to 165 mmsmcd.

Out of this, power companies utilize 40 per cent gas while fertiliser companies use another 30 per cent. Rest of the gas is supplied to petrochemicals, steel, refineries and city cooking gas units among others. 

Meanwhile, Srivastava said auction for shale gas blocks exploration will be done this year-end. "Resource assessment, policy framework and legislative changes are in progress (for the auction)," he said. 

Shale gas is a cleaner source of energy found in shale rock formations. At present, shale gas is produced only in North America. The estimated shale gas reserves in the US are 125 trillion cubic feet (tcf) and 50 tcf in Canada.

Source: My digitalfc

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