Indian ONGC to Up Gas Output by 22% by 2022

Indian state ONGC expects its natural gas output to rise by 22% by March 2022 to 41.53bn m³ as the company looks to boost domestic output and cut imports, Press Trust of India reported April 4 citing a company document.

As the Indian economy grows, demand for energy is expanding. With international energy prices remaining relatively benign, the south Asian nation’s imports of oil and gas has increased sharply as domestic production remains low. As per the latest data available from the government, India’s LNG imports during April 2016 and February 2017 were up by a healthy 16.4% on year at 22.5bn m³.

The current government has explicitly stated that it intends to reduce reduce oil and gas imports by 10% by 2022 and has taken some significant policy decisions. It has allowed CBM producers to market and price the gas freely in the domestic market. The aim is to increase local production. The government has also unveiled a new hydrocarbon exploration licensing policy (HELP), which offers single licence to explore conventional and unconventional oil and gas resources and a revenue sharing model. It also provides pricing and marketing freedom for crude oil and natural gas.

Farzad B

Meanwhile, Press Trust of India has reported that ONGC’s overseas arm OVL seeks to invest $3bn in Iran's Farzad-B gas block. The statement comes amid media reports that government is threatening to massively reduce crude intake from Iran as Tehran delays clearing the investment plan in the block. 

Shardul Sharma