‘Savings on import bill would be $20 billion’ | business | Hindustan Times
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‘Savings on import bill would be $20 billion’

business Updated: Sep 21, 2008 20:30 IST

On impact of KG production on India’s fortunes

The contribution to foreign exchange and savings on import bill would be $20 billion. At present the average per capita consumption of developed countries is 34 barrels of oil equivalent. The world average is 13.12 barrels of oil equivalent respectively. India’s per capita energy consumption is only 2.61 barrels of oil equivalent. Production from KG D6 would help India ramp up consumption without increasing its import bill.

On the significance for India's economic development
Production from KG D6 is critical for enabling India’s farmers to access energy. It would not only drastically reduce pollution in India’s cities and towns but would also provide distributed power to urban and rural areas in a much shorter time than at present.

On the potential for clean energy
For rural India, especially for our farmers, natural gas is an ideal feedstock for the fertiliser sector. Its usage also has a beneficial impact on the environment. This is why natural gas is described as the 21st Century fuel. India need not follow the route several countries in the world had to take, namely, increasing dependence on polluting energy sources and then find ways to fight environmental degradation. India has the opportunity to leapfrog the use of clean energy and directly benefit the people and, at the same time, protect our environment.

On oil and gas production from KG D6
Crude oil production will reach 20,000 barrels per day (1 million tonnes a year) in a month’s time and the peak output of 40,000 barrels (2 million tonnes) of oil will be achieved in the first quarter of 2010.

On who would be the first customers of the crude oil from KG D6
The first cargo of oil would go to Hindustan Petroleum’s Vizag refinery and the crude was benchmarked on Papis and Nigeria bonny light.On fast-track completion of the projectA world record has been set to produce crude in less than two and half years from discovery. At the peak, there were over 90 sea-going vessels at the construction site—to create a large production system under the sea. This makes it one of the fastest deep-water oil development projects in the world.