The discovery of natural gas in Krishna Godavari basin off the east coast will help cut the country's increasing import dependence for hydrocarbons, the mid-year economic review for 2006-07 has said.
Reliance Industries Ltd, Oil and Natural Gas Corp (ONGC) and Gujarat State Petroleum Corp (GSPC) have found huge gas reserves in the KG basin in the recent past.
"The news of gas discoveries in the recent months was an encouraging development," the review, which was tabled in Parliament on Tuesday, said.
India's crude oil production of about 33 million tons barely meets one-third demand, while natural gas availability of 90 million standard cubic meters satisfies only half the requirement.
Reliance Industries has made 12 more discoveries since making a major gas find in the first exploratory well, D6-A-1 in the Block KG-DWN-98/3, also known as D6.
Of these, the review said, Dhirubhai 1 and 3 are being developed in the first phase with gas production beginning from June 2008. Gas output would reach a plateau of 80 mmscmd.
According to the review, GSPC struck gas its block located in KG shallow water. "GSPC is yet to submit an appraisal programme for the discovery of gas encountered at high temperature and pressure environment. Hence, no reserve or production can be realistically estimated as yet."
It said ONGC was currently developing G-1 and G-15 discoveries in KG basin. Gas production of about 1.5 mmscmd is expected to commence from March 2007. "The estimated gas production from the above two fields is about 2.1 mmscmd for a period of seven years."