India’s prime exploration firm Oil and Natural Gas Corp hopes to provide 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 lift the share of the cleaner gasoline within the nation’s power combine to 15 per cent by 2030 from the present 6 per cent.
Most of the long run gasoline manufacturing is predicted from the Krishna Godavari basin, the place ONGC and Reliance Industries function blocks. Reliance goals to provide 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 May, which might be additional raised to eight.5 mmscmd in 2022/23 earlier than hitting peak charge in 2024, Kumar mentioned.
Combined output of Reliance and ONGC might be about 60 per cent of the typical 77 mmscmd Indian corporations produced in April-December 2020.
To make its gasoline enterprise worthwhile ONGC has floated a brand new subsidiary and expects authorities to lift native costs.
Current native gasoline costs of $1.79/million British thermal models (mmBtu) have hit ONGC’s income. The firm’s manufacturing price is $3.5-$3.7/mmBtu, he mentioned.
The firm will spin-off its complete gasoline enterprise into the brand new subsidiary. ONGC holds stake in downstream gasoline belongings and abroad gasoline blocks both straight 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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