Domestic natural gas production, which has steadily declined in the last two years, is expected to increase from 111 mmscmd in FY13 to around 183 mmscmd by FY20 on the back of future discoveries, rating agency Icra said on Wednesday.
Domestic natural gas production , which has steadily declined in the last two years, is expected to increase from 111 mmscmd in FY13 to around 183 mmscmd by FY20 on the back of future discoveries, rating agency Icra said on Wednesday.
"We expect the domestic natural gas production to increase from 111 mmscmd last fiscal to around 125 mmscmd by FY16, from existing or already discovered fields. This could further increase to around 183 mmscmd by FY20," it said in a report.
"Domestic natural gas production has steadily declined over the last two years to 111 mmscmd in FY13 from 143 mmscmd in FY11 primarily due to fall in production of KG-D6 block from 56 mmscmd in FY11 to 26 mmscmd in FY13. "Factoring in certain production from future discoveries, we estimate domestic production could increase to about 200 mmscmd by FY25 notwithstanding the fall in the production from existing fields," it added.
The report further said the demand potential for natural gas is expected to significantly rise from 250 mmscmd at present to 360 mmscmd by FY20. "While the demand potential for natural gas is high, the actual offtake could critically depend upon the price competitiveness of gas against alternative fuels and timely commissioning of the proposed transmission pipeline infrastructure," it said.
The report also said it sees gas demand rising to 435 mmscmd by FY25. It is to be noted that actual consumption of gas was around 140 mmscmd in FY13, which dipped over the last two years from 177 mmscmd in FY11 due to constrained gas availability.
The study pointed out that despite increase in natural gas production, it is expected to be lower than the demand, which would prompt consumers to look at re-gasified liquefied natural gas (R-LNG).
ADS BY GOOGLE
video of the day
Neutral on India as good news discounted; like Voltas: HSBC