State-owned Oil and Natural Gas Corp (ONGC) plans to raise natural gas production by over 7.22 million standard cubic metres per day (mmscmd) in next two years to meet the growing energy deficit in the country.
The incremental output in 2012-13 would be 1.45 mmscmd and a substantial 5.77 mmscmd would come in 2013-14, official sources said.
ONGC currently produces about 55 mmscmd of gas.
During the current fiscal, it would produce 0.4 mmscmd from North Tapti field off the west coast and another 1.05 mmscmd from G-1 and GS-15 fields in Bay of Bengal.
Western offshore B-Series field would deliver 1.56 mmscmd at Uran in Maharashtra next fiscal while another 0.03 mmscmd of incremental volumes are expected from BHE & BH-35 fields.
Its W-Series fields off the west coast would give 1.68 mmscmd at Hazira in Gujarat. Besides, B-193 Cluster would produce 1.38 mmscmd.
North Tapti fields in Cambay basin are projected to produce an additional 0.12 mmscmd and SB14 about 0.75 mmscmd.
G-1 and GS-15 fields in Krishna Godavari basin are projected to see a 0.25 mmscmd increase in output in 2013—14.
Sources said ONGC has signed an agreement to give all the incremental production to state-run gas utility GAIL India Ltd which will sell it to consumers at government approved rates.
GAIL holds exclusive marketing right of all gas produced by ONGC for a three-year period, which can be extended on mutual consent, they said.
ONGC is investing Rs 2,735.65 crore in developing the G-1 and GS-15 fields by December and will produce 0.982 million tonnes of oil and 5.92 billion cubic metres (bcm) of gas over a period of 15 years.
Sources said the incremental gas can be immediately used by consumers as they are connected to pipeline grid.
ONGC will get $ 5.25 per million British thermal unit (mmBtu) price for the gas it produces for new fields in nominated blocks in the western offshore and $ 4.75 per mmBtu for fields in Krishna Godavari basin off the Andhra Pradesh coast.
The price is more than $ 3.818 per mmBtu that the government had set for the gas ONGC produces from its operational fields in the blocks given to it on nomination basis.
The price for consumers of this gas, known as APM or government administered gas, after including royalty is $ 4.2 per mmBtu, sources said.