29 July 2010;timesofindia.indiatimes.com:NEW DELHI: Reliance Industries will be able to pump natural gas at full capacity from its deep-sea field during the year to March 2013, the country's oil secretary said, indicating a delay of almost two years. Reliance is currently pumping about 55-60 million cubic metres a day (mmscmd) of gas, oil secretary S. Sundareshan told reporters on Wednesday after a meeting of a ministerial panel that had been set up to look into the allocation of gas from KG D6 block in Krishna-Godavari basin. Last December, junior oil minister Jitin Prasada told lawmakers that output from KG D6, off India's east coast, was expected to be ramped up to a peak rate of 80 mmscmd by mid-July. Reliance, which has the heaviest weight on the main index, shed 3.1 per cent, its biggest daily decline in two months, as investors ignored a 32 per cent rise in net profit and focused on gas production concerns. Reliance said on Tuesday it would increase output at its KG D6 block after undertaking a review of the reserve. India imports more than 70 per cent of its energy needs and is looking to secure assets abroad and attract investment to develop its oil and gas fields at home. Currently it imports 28 mmscmd or 17 per cent of its gas demand to meet demand from the power and fertiliser sectors. Sundareshan said the power ministry had sought an additional allocation of 8.22 mmscmd in the current fiscal year to March 2011 and 8.3 mmscmd for the following year, on top of the existing commitment of 32.67 mmscmd. Sundareshan said India's current gas consumption is 170 mmscmd while local output is 142 mmscmd. He said domestic gas output is expected to rise to 151 mmscmd by March 2012 and 186 mmscmd by March 2013, as gas fields operated by other firms including Oil and Natural Gas Corp and Gujarat State Petroleum Corp are also expected to start production. Sundareshan said the ministers' panel has decided to divert 2.4 mmscmd gas committed to state-run ONGC's liquefied petroleum gas plant and some industries in Uran in western India. He said ONGC would meet its own requirement and that of other industries in Uran through its own fields. "The decision has been taken to lessen the load on KG D6 production to match demand," he said. Reliance owns 90 percent in the D6 block in the Krishna Godavari basin, while Canada's Niko Resources holds the remainder.
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