State-owned ONGCNSE 2.02 % registered 6.3 per cent increase in natural gas production in 2017-18 and is on track to double the output by 2022, a top company official said.
While the strategic petroleum sector, including oil and gas, continues to remain outside the new GST indirect tax regime that replaced a 70-year-old system, the industry did manage in 2017 to switch over to a new exploration regime that gives producers marketing and pricing freedom.
Indian offshore fields used to be the main source of the natural gas consumed in India’s rapidly growing, energy-hungry economy; now however, it is LNG imports.
The government has slapped additional penalty of USD 264 million (about Rs 1,700 crore) on RIL and its partners for producing less than the targeted natural gas from the KG basin block in 2015-16.
Once considered the future of gas production, floating liquefied natural gas (FLNG) projects have been firmly relegated to the backburner as global gas producers seek cheaper ways to compete with a surge in U.S. shale supplies and slumping prices.