KG-D6 to have output of 80 mmcmd by 2011-12

Reliance Industries' eastern offshore KG-D6 natural gas field will have a peak output of 80 million cubic metres per day for six years beginning 2011-12, Minister of State for Petroleum and Natural Gas Jitin Prasada said.

"Currently gas production from KG-D6 is 31 mmcmd," Prasada informed the Rajya Sabha.

RIL started gas production from the KG-D6 fields on April 2 and has signed contracts with 15 fertiliser plants to sell close to 15 mmcmd gas. Additionally, it will also supply over 25 mmcmd to 19 power plants and 3.3 mmcmd to steel plants.

Prasada said RIL will produce 21.9 billion cubic metres of gas in 2009-10 and 2010-11 before hitting the peak of 29.2 bcm (or 80 mmcmd) in 2011-12. "The plateau production of 80 mmcmd is for six years (till 2016-17)."

From 2017-18, output will start declining first to 21.9 bcm and then to 14.6 bcm in 2018-19.

Investment banker Morgan Stanley had last week stated that the KG-D6 fields at peak production will help the nation save $8.3 billion annually or 0.7 per cent of the GDP.