India’s Oil Minister Mr. Dharmendra Pradhan informed that India is going to invest US $20 Billion in the Gas field development in coming 5 to 7 years. This multi billion investment of $20 is expecting to develop Natural Gas discoveries by India’s own ONGC and the Reliance Industries and BP-led joint venture off the east coast said the minister at CII’s “Global Energy Dialogue” event. The Oil Minister said that they are accelerating production of Gas form domestic sources to the extent 20 trillion cubic feet from already discovered sources through policy, fiscal and regulatory mechanism. these fields and the current auctions of Discovered Small Fields will add to the domestic supplies in the coming three to four years.
ONGC is already lining up $5.07 billion to produce over 16 million standards cubic meters per day of Natural Gas from the set discoveries from Krishna Godavari basin KG-DWN-98/2 block. RIL-BP has several discoveries in the adjacent KG_DWN_ 98/3 or KG-D6 bllock and NEC-25 off the Odisha coast. The Oil Minister has announced that about $20 billion will be invested in the next five to seven years primarily in deep water fields to boost up Gas Production. The Minister has also cleared the fact that he is determined to increase the gas off take significantly as it would serve several objectives. By switching to this cleaner fuel and diversifying our energy mix, we can boost up our fight against climate justice, he added. He also suggested to substitute Liquid Fuels with Natural Gas in numerous applications as a result of which our dependency on crude oil by 10 percent from the current levels by 2022. For this the availability of Natural Gas is increased by boosting up the Domestic Gas output importing LNG (Liquefied Natural Gas) and through trans-national Gas Pipelines.
The Oil Minister has also mentioned that the northern and western regions in India consume 80 percent of the overall volume of gas utilized in the country. But he has a plan to change it and to make eastern and southern India as new growth centers. He also promised to encourage the use of LNG especially in Refinery-cum petrochemical complexes and rail transportation. The idea is to replace naphtha the a Liquid Hydrocarbon used in petrochemical production and furnace oil used for Industrial heating with imported LNG and relay more on LNG and CNG (Compressed Natural Gas) for transportation instead of petrol and diesel.