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RIL may begin production at KG basin by Feb 2009

22 Dec 2008

Reliance Industries (RIL) is expected to produce natural gas from its Krishna-Godavari (KG) basin by February next year. Pipelines are ready to supply the first gas from the basin to 20 existing gas-based fertiliser plants as per the government-led gas utilisation policy.

In September 2008, while announcing the beginning of oil production from KG basin, RIL chairman Mukesh Ambani had indicated that the commercial production of gas from RIL’s D6 block in KG basin would start from January-March quarter.

Petroleum minister Murli Deora also told Parliament last week that the natural gas production from KG basin was likely to commence in early-2009. The production of KG gas from the deepwater was rescheduled from mid-2008 to early-2009 due to shortage of rigs and turbulent weather conditions.

According to the policy, the fertiliser plants would enjoy the first priority with 14 MMSCMD gas earmarked for the sector, followed by LPG sector with a maximum allocation of 3 MMSCMD. The third priority is given to the power sector with a share of 18 MMSCMD gas. Rest 5 MMSCMD is set aside for the city gas projects.

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