In just seven years after exploring the world’s largest source of natural gas off the coast of Pondicherry in 2002, the Krishna-Godavri deep-sea (KG D6) basin of Reliance Industries Limited (RIL) kicks off production from Wednesday.
The first flow of natural came out from the wells at 5 p.m. on Tuesday and reached to the surface at Gadimoga in Kakinada district of Andhra Pradesh at 09.20 am on Wednesday by taking 13-14 hours in traveling from the well to onshore facility.
However, the Reliance Industries has not issued any official statement on this success so far. But, it can come soon, as sources in RIL said.
Reliance has achieved this milestone in just seven years in producing the gas after exploring the deep sea KG-D6 basin in comparison to the global average lead-time from discovery to production that is nine years in deep-water gas findings.
This latest achievement of RIL would transform the energy landscape of India, which is the third largest consumer of Asia. Moreover, the natural gas production of KG-D6 basin would support the gross domestic product (GDP) growth rate and reduce the fiscal deficit of India, as RIL would fetch the government USD 28 billion by way of profit share and royalty over the life of the field.
The production of the gas would boost power supply, cheaper production of urea, and partially fulfilled the need of oil consumption by using an alternative source of fuel.
It is expected that the estimated gas reserves of 11.5 trillion cubic feet (TCF) would add about Rs 4,000-crore to the annual revenues of RIL and doubled the domestic natural gas production when the production would reach on its peak output of 80 million cubic meters per day (mmcmd) in 2010.
Initially, out of 16 wells, RIL is expected to begin production work in six wells and each well is expected to produce 5-6 mmcms gas on peak, while initially the total output of gas would begin at 10 mmcmd and rise by same value to 80 mmcmd by end of this calendar year, a top official from the company’s head of oil and gas business had stated last week.
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