India’s natural gas production grew for second consecutive year in 2018-2019
The consecutive growth for the second-straight financial year comes at a time the government is targeting a quick ramp up in the share of natural gas in the overall energy basket, arrest a consistent declining trend in its domestic crude oil production
India’s natural gas production grew for the second consecutive year in 2018-2019, primarily due to increase in production from fields operated by government-owned Oil and Natural Gas Corporation (ONGC).
India’s cumulative natural gas production grew 0.69 per cent to 32,873 Million Standard Cubic Meter (MMSCM) last fiscal, as compared to 32,649 MMSCM produced in financial year 2017-2018. Gas output had grown 2.35 per cent in 2017-2018, reversing from a six-year declining trend.
Natural gas in India is mainly used to generate power, cooking fuel as Piped Natural Gas (PNG), production of petrochemicals and manufacturing products in the fertilizer and steel industries.
The consecutive growth for the second-straight financial year comes at a time the government is targeting a quick ramp up in the share of natural gas in the overall energy basket, arrest a consistent declining trend in its domestic crude oil production, which dropped for the eighth consecutive year last financial year and reduce its mounting crude oil import bill.
An ETEnergyworld analysis of year-wise data on natural gas production since 2002 indicates that the country recorded its highest ever natural gas production from onshore blocks in 2018-2019. Gas production from onshore blocks including Coal Bed Methane (CBM) grew 1.12 per cent to 10,756 MMSCM last financial year.
Offshore production increased marginally to 22,117 MMSCM as compared to 22,011 MMSCM produced in 2017-2018.
ONGC’s natural gas production in March this year increased 6 per cent to 2,135 MMSCM. Cumulatively, the company’s natural gas production for the full financial year ended March 2019 increased 5.31 per cent to 24,674 MMSCM.
Oil India, the second largest government-owned upstream players, recorded a 1 per cent drop in natural gas production at 235 MMSCM in March. Cumulatively, the company’s gas output last fiscal decreased 6 per cent to 2,722 MMSCM.
The decline in Oil India’s gas production is primarily attributed to loss in Deohal area due to presence of carbon-dioxide in production stream and loss due to bandh and miscreant activities in operational areas, according to the oil ministry.
Private Players/Joint Ventures
Natural gas production from fields operated by private players or Joint Ventures declined 16.22 per cent to 446 MMSCM in March 2019, as compared to 532 MMSCM produced in the corresponding month (March 2018).
The drop during the month is primarily attributed to decline in production from Coal Bed Methane blocks in Madhya Pradesh and West Bengal and decline in natural gas production from Eastern and Western offshore blocks.
Cumulatively, production by private and JV firms declined 14 per cent to 5,477 MMSCM in 2018-2019. The oil ministry said the decline is attributed to drop in CBM production from Reliance Industries’ Sohagpur West CBM block, closure of two wells in D1D3 field and loss from Cairn Oil and Gas’ Mangala field due to delay in upgrade of Mangala Processing Terminal.