India: February crude oil output flat, natural gas falls 7.7%
Friday, 23 March 2012 | 00:00
There is more bad news for industries dependent on natural gas. The country's natural gas output fell for the 15th straight month in February by 7.7 per cent year-on-year.
Also the availability of imported gas is fluctuating, depending upon the demand, price, and tie-ups with the suppliers.
The drop in output from Reliance Industries-operated Krishna Godavari Basin D6 block, which is the major source of natural gas, pulled down the domestic gas output to 3.609 billion cubic metre (3.908 billion cubic metre) in February, show Ministry of Petroleum and Natural Gas data.
The total average daily availability of gas during 2010-11 from different sources was 162.1 mmscmd with largest share of 55.35 mmscmd being from D6. However, this year the situation has changed. Availability of gas from D6 fields is expected to further decline in 2012-13 and 2013-14, from the current about 34-36 mmscmd.
Reliance Industries has told the Government that the output at the producing fields in the block is likely to fall to an all-time low of 22 mmscmd by 2013-14 since it hit a peak of 60 mmscmd in end-2009. The company has projected that its output for 2012-13 from the producing fields in the block will be about 27.60 mmscmd.
All the available domestic gas (excluding what is covered under small and isolated fields policy and allocation of which has been delegated to national oil companies) has already been allocated to various consumers, the Minister of State in the Ministry of Petroleum and Natural Gas, Mr R.P.N. Singh, informed Rajya Sabha recently. He also said that that “no further gas is available for allocation, at present”.
Crude oil output
The country's crude oil output marginally increased (0.4 per cent) year-on-year at 2.997 million tonne in February. This was mainly because production from Assam fields fell 100 per cent, the data showed.
ONGC's Mumbai High fields, Northwest of Mumbai, produced 1.270 million tonne, down 0.9 per cent from the same month last year. The fields that account for 42 per cent of domestic oil production are experiencing a natural decline in output.
Total refinery output of the 17 public sector and two private sectors was up 6.2 per cent year-on-year at 14.180 million tonne. Reliance Industries from its first refinery in Jamnagar processed 8 per cent more crude oil in February at 2.833 million tonne against the same month last year. The company does not share data for its second export-oriented refinery at Jamnagar.
Source: The Hindu Business Line
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