ONGC Envisages Peak Gasoline Output From East Coast Block In 2024
India’s prime exploration firm Oil and Pure Gasoline Corp hopes to supply 15 million cubic metres of gasoline a day (mmscmd) in 2024 from its block within the Krishna Godavari (KG) basin, off India’s east coast, its head of finance Subhash Kumar mentioned on Monday
India, the world’s fourth greatest importer of liquefied pure gasoline, desires to spice up native gasoline output as Prime Minister Narendra has set a goal to boost the share of the cleaner gas within the nation’s power combine to fifteen per cent by 2030 from the present 6 per cent.
A lot of the future gasoline manufacturing is predicted from the Krishna Godavari basin, the place ONGC and Reliance Industries function blocks. Reliance goals to supply 30 mmscmd gasoline by 2023 from its belongings within the basin.
ONGC will ramp up manufacturing from its KG basin block to about 3-3.5 mmscmd from Could, which might be additional raised to eight.5 mmscmd in 2022/23 earlier than hitting peak fee in 2024, Kumar mentioned.
Mixed output of Reliance and ONGC might be about 60 per cent of the common 77 mmscmd Indian firms produced in April-December 2020.
To make its gasoline enterprise worthwhile ONGC has floated a brand new subsidiary and expects authorities to boost native costs.
Present native gasoline costs of $1.79/million British thermal models (mmBtu) have hit ONGC’s income. The corporate’s manufacturing value is $3.5-$3.7/mmBtu, he mentioned.
The corporate will spin-off its whole gasoline enterprise into the brand new subsidiary. ONGC holds stake in downstream gasoline belongings and abroad gasoline blocks both immediately or by way of its subsidiaries.
Kumar mentioned the brand new subsidiary will bid for gasoline produced by ONGC to be used within the group’s refining and petrochemical plans.
“As far as coming years are concerned the story of gas is going to unfold which is going to be critical for the sustained positive performance of the company,” Kumar mentioned.
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