India's August Gas Output Up Almost 4%

India’s gross gas output in August was 2.77bn m³, up by 3.7 % compared with the corresponding month of the previous year, data published by the Indian oil ministry's Petroleum Planning and Analysis Cell (PPAC) showed September 19. The cumulative gross production of natural gas during the fiscal year 2017-18 (April-March) was 13.68bn m³, up by 4.3% year on year.

State owned ONGC was the biggest producer with output of 1.95bn m³ in August compared with 1.86bn m³ in August 2016.

India used 4.8bn m³ of gas in August, almost same as the year before. Total demand in the five months of the fiscal year was 23.2bn m³, similar to last year's. 

India's coalbed methane (CBM) output has been minuscule despite its huge reserves. Trying to revive the stagnant sector, India’s Cabinet Committee on Economic Affairs, chaired by the prime minister Narendra Modi, in March allowed CBM producers to market and price the gas freely in the domestic market.

According to the government, while discovering the market price for arm’s length sales, the contractor has to ensure a fully transparent and competitive process for the sale of CBM. But it can also sell to an affiliate, in the event that a contractor cannot identify any third-party buyer. Royalty and other dues to the government, however, shall be payable on the basis of PPAC-notified prices or selling prices, whichever is the higher.

There are just three companies producing CBM in India: GEECL, Essar, and Reliance.

Shardul Sharma