Domestic natural gas production fell 8.6% year-on-year (y-o-y) to 2,414 million metric standard cubic metre (mmscm) in October. The 2.6 million tonne (MT) of crude oil produced in the country during the month was also 6.3% lower than the production in the year-ago period. Indigenous natural gas production caters to about 51% of the country’s requirements, while around 85% of the country’s crude oil is imported.
Domestic natural gas production fell 12.9% y-o-y to 13,939 mmscm in the first half of the fiscal, as operations became increasingly unviable for energy production companies with government lowering selling prices. As noted earlier by Care Ratings, the gross production of domestic natural gas will fall 10.6% during FY21 as “no company would aggressively want to increase production or get into high-risk projects with such a low gas price”. The current price for gas produced from local fields has been revised to an all-time low of $1.79/mmBtu by the government, which is much below the breakeven point for most fields, the agency noted.
