With domestic natural gas output declining for the 24th straight month in November, gas sourcing and transmission companies are left with little option but to import.
The country’s natural gas output fell 15.2 per cent in November year-on-year mainly because of the continued drop in production from the country’s largest gas fields in the East coast operated by Reliance Industries.
In November, 157-158 mmscmd of gas was transported into the country by the transmission companies, including GAIL (India). Of this, 102-103 mmscmd was domestic gas and 55-56 mmscmd was imported. According to industry, during last couple of months, 5-7 mmscmd of additional LNG has flowed into the network.
Gas production from offshore fields, including the D6 block, fell 18.4 per cent in November annually, according to Petroleum Planning & Analysis Cell (PPAC) data. During the April-November period of the current fiscal, natural gas output fell 13.1 per cent year-on-year. The output from the offshore fields has dropped 15.9 per cent.
According to PPAC data released on Monday, in the D6 block a total of seven wells in D1, D3 and MA fields have ceased to flow due to water/sand ingress and planned shutdown of FPSO (Floating Production and Storage Offloading facility) at MA fields for six days.
Oil output up
Meanwhile, crude oil production, which was down in October year-on-year, recovered in November. Domestic output in November was up 0.8 per cent annually. While output from the offshore fields, including ONGC’s Mumbai High, dropped 6.8 per cent year-on-year, that from the onshore fields, which includes Cairn’s Rajasthan fields, saw an increase of 9.2 per cent.
Falling domestic crude oil output and growing petroleum product demand have compelled domestic refiners to import more crude oil in November year-on-year.
The refiners (18 public sector and two private sector) imported 15.074 million tonne of oil (14.850 million tonne in November 2011). Reliance Industries does not share planned targets and production data for its export-oriented refinery in Jamnagar.
Petroleum product demand in November was up at 13.002 million tonne from 12.986 million tonne last November. To cater to the growing petroleum product demand, the refiners turned 6.58 per cent more crude oil into fuel during the month.
According to PPAC, the consumption estimates represent the market demand and are the aggregate of sales by oil companies in the domestic market and consumption through direct imports by private parties. While the data for company sales were actual, that of private direct imports are estimated, it said.