The country’s natural gas output fell 5.3 per cent to 4.1 billion cubic metre in August on an annual basis. The cumulative gas output (April-August 2011) fell 8.9 per cent to 20.458 billion cubic metre.

The decline was for the ninth straight month mainly because the production from Reliance Industries Ltd operated D6 block continued to fall. Reliance is currently producing 42 mscmd from the fields. This is expected to further drop.

This would mean that gas consuming industries benefiting from the fields will have to depend more on expensive imported gas. To enhance D6 production, the operator has roped in BP, to gain from the British firm’s deepwater expertise.

Currently, total gas availability in the country from all sources (domestic as well as imported) is 166 mscmd.

Meanwhile, the country’s crude oil output in August was up 1.6 per cent to 3.2 million tonne from a year earlier, Petroleum Ministry data showed. This was propelled by production from Oil India fields and Cairn India operated Rajasthan fields.

Indian refiners processed 3.9 per cent more crude oil in August from a year ago at 14.038 million tonne. The consumption of petroleum products during the month stood at 11.05 million tonne (10.86 million tonne a year earlier). Diesel sales in August stood at 4.57 million tonne, petrol 1.22 million tonne and LPG 1.27 million tonne.

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