Exploration Director N. K. Verma of India's state-owned firm Oil and Natural Gas Corp (ONGC) said he projects gas production at the Krishna Godavari (KG) basin will peak at between 25 to 30 million standard cubic meters (mscm) per day, Reuters reported.
The company has scheduled gas output at the offshore block located near the east coast to start in 2017 and ONGC has plans to share its offshore infrastructure at the Basin with Reliance Industries to reduce costs. ONGC has a goal of producing 6 to 9 mscm of gas per day by the same year. The northern section of the the KG block has the potential to yield more than 2 trillion cubic feet of gas, according to Verma.
D. K. Sarraf, chairman of ONGC, said the company expects domestic gas prices in India to increase from $4.2 per million British thermal units (mmBtu) to nearly $8 per mmBtu by April 1, according to Reuters.
Sarraf said despite the price increase for gas, this may not offset the cost of the company's gas exploration activities, The Hindu Business Line reported.