In the next 24 to 48 hours, Reliance Industries (RIL) will start their gas production at the Krishna Godavari (KG) basin. The production of gas from the Dhirubhai 6 (D6) block will boost the revenue from the refinery to up an estimated amount of $2 billion when the production is at its peak capacity.
“The company plans to raise output from the deep-sea field in the Bay of Bengal by 10 mmscmd a month, reaching peak production of 80 mmscmd by the end of this year.” P.M.S. Prasad, the chief executive of Reliance’s oil and gas business said.
“We are signing 15 contracts with 12 companies and the volumes are about 15 mmscmd.” he added.
The gas will start filling the pipes in a couple of days and Reliance Industries will start supplying the gas from KG basin by mid April 2009.
RIL will start the production at about 10-12 million standard cubic meters per day of gas when it commences in April, and by mid-July, will increase the production to 40 million standard cubic meters per day and then reach the peak production of 80 million standard cubic meters per day in an year.
Against the current demand of 190 million standard cubic meters per day of gas in India, the supply of 80 mmscmd falls short of India’s full requirement by 110 mmscmd and gas production from the RIl KG basin D6 block will help cut down the gap between the supply and demand.
As per the production sharing deal with the state, the company will be paying 10 per cent as profit petroleum to the government. Oil companies do this in order to comply with the regulations governing India’s oil and gas exploration policy.
We had first written about Reliance’s KG basin project in 2006.