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Oil And Gas | October 22, 2014
#44608

Gas exploration viable at the new priced fixed by the government

In response to the government's decision on fixing gas price at $5.61 per million British thermal units, ONGC chairman and managing director DK Sarraf has said that most of our gas discoveries are viable at this price. The new gas price is likely to support ONGC in augmenting its natural gas output from the current 62 million standard cubic metres per day (mmscmd) to 100 mmscmd by 2022. He said the new gas price is viable for most of the gas blocks including its KG Basin block which is next to Reliance Industries’ KG-D6 block except Mahanadi gas block. The gas exploration from Mahanadi block is likely to cost thrice the prevailing cost.

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