Oil & Natural Gas Corporation (ONGC) has been forced to cut natural gas production by up to one-tenth as customers refused to take supplies because of business disruption. The company, which produced 64.5 million standard cubic meters of gas per day till earlier this week, has reduced the flow to 59.8 mmscmd on March 25, 2020, and will further cut by another 3 mmscmd on March 26, 2020.
The company has received requests from customers for reduction in gas supplies of around 7.7 mmscmd. Customers are largely small companies whose business has been completely shut because of the lockdown, and city gas distributors who have seen volumes vanish after CNG vehicles went off-road.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.
