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Steep Rise Projected in ONGC's Oil & Gas Production: Will it Quench India's Enormous Needs ?

News:

After arresting a seven-year decline in crude oil production, state-owned Oil and Natural Gas Corp (ONGC) will see an 11 per cent rise in output over the next three years as it brings newer fields in production.

Source: ET

SNP Insight:

The proposed increase in gas production from current 62 mmscmd in 2014-15 to 102 mmscmd in 2018-19 would considerably ease the domestic gas supplies in India. However given the impending focus of Government in developing say City Gas Distribution Pipeline network, a considerable portion of this gas may go for CGD thereby leaving the other end consumers like Fertilizer Units and  Gas based Power plants in a challenging proposition. So the answer to how exactly Government allocates this gas to end user lies in the lap of future. 

Source: SNP Infra Research