ONGC's Gas Output Hits Record: Report
Indian state-owned ONGC’s natural gas production has hit an all-time high of about 70mn m3/day, according to a report published by Press Trust of India November 21.
ONGC produced about 64mn m3/day in November last year and this year the output is close to touching 70mn m3/day, sources told the news agency. After accounting for internal consumption, gas sales at about 56mn m3/day too are at an all-time high.
The output can rise by 24-25mn m3/day in the next couple of years if the company gets market price, the report said. ONGC’s production has been constrained due to low price of $3.36/mn Btu, which is administered by the government. This price is a third of the rate at which India imports gas in the form of LNG, Press Trust of India said.
In a bid to tackle chronic air pollution, India is trying to increase the share of cleaner fuels such as natural in its overall energy mix. The government is also encouraging explorers like ONGC to increase domestic gas production but lower domestic prices are proving to be a major hurdle.