Oil & Natural Gas Corporation Ltd.

Oil & Natural Gas Corporation (ONGC) has been forced to cut natural gas production by over 15 per cent as factories shut down following the unprecedented nationwide lockdown have refused to take supplies. ONGC, which produced 64.3 million standard cubic meters of gas per day (mmscmd) prior to the lockdown imposed on March 25, has reduced the flow to 53.4 mmscmd. Gas sales are down to 40 mmscmd against 50 mmscmd previously.

The difference between production and sales is due to the fact that some of the gas is also used by the company for internal consumption purposes such as power generation and re-injection into wells. The company received requests from customers for a reduction in gas supplies while some supply reduction requests have been lodged with the gas transporter GAIL.

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.