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
Increase in output from Deendayal natural gas block in the Bay of Bengal
- 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
- The ONGC had spent a billion dollars on the block last year
- 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?
- 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
- 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
- Government wants to cut down on energy imports, especially crude oil
Demand of natural gas in India
- India consumed around 145 million cubic metres of natural gas a day, nearly 50 percent of it imported, in 2017-18
- The government has projected India’s potential demand at nearly 500 million cubic metres of gas a day