India’s natural gas production misses target by 7% in August

New Delhi: India's natural gas production in August stood at 2688.23 Million Metric Standard Cubic Metres (MMSCM), which is 3.58 percent lower when compared with August 2018 and 7.18 percent lower than the monthly target. The cumulative natural gas production during April-August 2019 was 13437.00 MMSCM, data sourced from the Petroleum Ministry showed. The cumulative total is 5.49 percent lower than the target for the period and 0.98 percent lower than the production during the corresponding period of the last year.

ONGC's natural gas production

Gas output by state-run ONGC in August 2019 was 2007.24 MMSCM which is 5.53 percent lower than the target and 2.59 percent lower when compared with August 2018. ONGC's cumulative total in the April-August period was 10158.29 MMSCM which is 1.46 percent higher than the production during the corresponding period of the last year but 3.35 percent lower than the cumulative target.

The ministry attributed the decline in gas production from ONGC's Bassein and Satellite Asset due to de-optimisation of certain wells. "Less off-take from VA-S1 field in Eastern Offshore due to outage of GPPC and subsequent less offtake by M/s GAIL since August 25 affected production. Other issues include less off take by consumers /shutdowns/ marketing issues," the ministry said.

Oil India Limited

Natural gas production by Oil India Ltd (OIL) in August 2019 recorded a drop as it settled at 236.93 MMSCM. This was 17.78 percent lower than the monthly target and 0.02 percent less when compared to August 2018. Cumulative natural gas production by OIL during April-August 2019 was 1152.66 MMSCM which is 1.34 percent higher when compared to the corresponding period of the last year but 18.77 percent lower than the cumulative target.

According to the government, the loss of potential in Deohal area due to the presence of CO2 in production stream, bandhs called by employee unions and disruption in process line of synthesis gas boiler outlet at Namrup Plant-II affected production.

Private sector and JVs

Natural gas production by the private sector and joint ventures (JVs) in August 2019 was 444.06 MMSCM which is 8.11 percent lower than the monthly target and 9.46 percent lower when compared to August 2018. Cumulative natural gas production by the private sector and JVs during April-August period was 2126.05 MMSCM which is 7.06 percent lower than the cumulative target and 12.19 percent lower than the production during the corresponding period of last year.

The backdrop

The figures come as India is struggling to make for the shortfall in liquefied petroleum gas (LPG) supply because of the drone attack on Saudi Aramco's oil facilities. Natural gas is primarily used in India to generate power, as cooking fuel in the form of Piped Natural Gas (PNG), production of petrochemicals and manufacturing products in the fertiliser and steel industries. India had recorded its highest output of natural gas from onshore blocks since 2002 at the end of the previous financial year (2018-19). Gas production from onshore blocks, including Coal Bed Methane (CBM), grew 1.12 percent to 10,756 MMSCM in FY2018-19.