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Reliance Industries will soon transform the country's energy scenario by producing natural gas from its Krishna Godavari basin fields.
Gas from the prolific KG-D6 block will not just help boost power supply from idle electricity generators starved of fuel and produce cheaper urea for agriculture, but will also give the government USD 28 billion (Rs 1,40,000 crore) in profit share and royalty over the life of the field.
An official source related to the process of development said, "Reliance is doing last minute checks and gas (from KG-D6 block) can start flowing as early as tomorrow."
The USD 8.835 billion (Rs 44,175 crore) project will double the domestic production of natural gas when the field hits peak output of 80 million cubic meters per day in the fiscal year 2010.This will help reduce fuel deficit at urea making fertiliser plants and meet half of the 36 mmcmd gas shortfall in power plants.
Reliance will produce enough gas to meet about a third of UK demand, the source said.
Company's head of oil and gas business P M S Prasad said that the gas output which will start at 10 mmcmd and rise by same volume every month to reach 40 mmcmd by July end. He added, "Our endeavor is to quickly ramp it up to peak 80 mmcmd. We are targeting the peak out by year end (2009 calendar year)." If achieved by 2009-end, the peak output will come a year earlier than previously planned. The Financial Express
April 1, 2009
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