The Hindu Business Line : `ONGC's Mahanadi gas find confirmation soon'

Black gold
Estimated 5-13 billion cubic m of hydrocarbons
Technically first discovery in Mahanadi Basin
Company has confirmed significant find in KG Basin
Power, fertiliser sectors account for majority of gas consumption

New Delhi April 2 The potential commercial viability of the gas find by ONGC in the Mahanadi Basin is likely to be confirmed in the next few days.

Speaking to Business Line, a Directorate-General of Hydrocarbons (DGH) official said: "We would be able to tell them in next 5-6 days on the potential of the find."

Currently, the DGH team is assessing the find to know the extent and full potential of the gas deposits in the MN-OSN-2000/2 off the Orissa coast, he added.

According to the company estimates, the probable in-place hydrocarbons in the block would be in the 5-13 billion cubic metre (BCM) range.

Technically this is the first discovery in Mahandi Basin, company sources said.

Though the find is being seen as significant, it remains to be seen how much of the country's requirement could be met in the current scenario.

Natural gas is the fastest growing primary energy source among fossil fuels.

It is projected to grow 3-4 times in the 2002-2025 period.

The current consumption level stands at 95 million metric standard cubic metres per day (MMSCMD).

Currently, the country's gas supply comes from the domestic fields of ONGC, Oil India Ltd, private/joint venture operations and import of liquefied natural gas. As per estimates, gas consumption today is primarily shared by the power and fertiliser sectors to the tune of 40 per cent and 29 per cent respectively in the country from all sources.

ONGC had confirmed presence of hydrocarbon in a well (named MDW-2A) in block MN-OSN-2000/2 in the Mahanadi Basin in water depths of about 1,200 m.

Besides this find, the company had also confirmed a significant find in the Krishna Godavari Basin in the East Coast.

According to officials, the region shows promise of being rich in hydrocarbons.

As per projections made by the Ministry of Petroleum and Natural Gas, under the normal scenario the gas supply from ONGC and private/joint venture operators would be 70.54 MMSCMD in 2007-08.

This would grow to 98.3 MMSCMD in 2011-12.

On an optimistic note, the Ministry has projected that with the additional gas anticipated from Reliance Industries Ltd (RIL) and GSPC, the supply would grow from 70.54 MMSCMD in 2007-08 to 192.30 MMSCMD in 2011-12.

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