Natural gas loses steam on low output

Posted By: Religare
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Natural gas loses steam on low output
Natural gas, which is considered one of the cheapest source of energy, is slowly losing its stem due to the decline in its output in India. The most promising block, KG D6 block operated by Indian energy giant, Reliance Industries has been struggling to produce gas at the expected levels.

Also, Panna Mukta Tapti (PMT) fields, which has significant resources has failed to live up to its expectation.

Presently, domestic supply of gas is just above 150 million metric standard cubic metres per day (mmscmd) while the demand is around 225 mmscmd.

The ceiling gas price from the Panna-Mukta field is set at $5.73 per mmBtu, $5.57 per mmBtu for Tapti field and $4.2 per mmBtu for KG D6, the current spot price for imported LNG is $12-14 per mmBtu.

Read more about: energy, ril, oil and gas
Story first published: Tuesday, April 26, 2011, 12:30 [IST]
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