India’s ONGC to quadruple production from Bay of Bengal block

Note4students

Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

From UPSC perspectives, the following things are important

Prelims Level: Location of the Gas Block

Mains Level: Importance of the increase in the production of natural gas


News

Increase in output from Deendayal natural gas block in the Bay of Bengal

  1. India’s state-owned exploration company Oil and Natural Gas Corp. Ltd (ONGC) will by early 2019 quadruple the output from an offshore gas block in the Bay of Bengal
  2. The ONGC had spent a billion dollars on the block last year
  3. Output from the block off India’s east coast will reach as high as a million standard cubic metres per day by January 2019

Why is this increase important?

  1. ONGC, which meets up to 40% of India’s total natural gas demand, had been saddled with ageing fields and dropping production for almost a decade

Target set by the government

  1. Government has set a target of increasing the share of natural gas in India’s energy mix to 15% by 2030, from 6.5% now
  2. Government wants to cut down on energy imports, especially crude oil

Demand of natural gas in India

  1. India consumed around 145 million cubic metres of natural gas a day, nearly 50 percent of it imported, in 2017-18
  2. The government has projected India’s potential demand at nearly 500 million cubic metres of gas a day
Oil and Gas Sector – HELP, Open Acreage Policy, etc.
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