Is KG gas dip due to commercial reasons?

Is KG gas dip due to commercial reasons?
Highlights

Panel asks Oil Ministry to probe New Delhi (PTI) :A With output from Reliance Industries' eastern offshore...

Panel asks Oil Ministry to probe

New Delhi (PTI) :A With output from Reliance Industries' eastern offshore KG-D6 fields dropping to an all- time low, a Parliamentary panel on Tuesday asked the Oil Ministry to find out if the decline was due to commercial consideration or price of gas.

The Standing Committee on Petroleum and Natural Gas, in its report tabled in Parliament, noted with concern that the output from KG-D6 has been declining since 2010-11.A "From a peak of 80 million standard cubic meters per day, the gas production from KG-D6 has gone down to 16 mmsmd," it said.

Stating that it has not been informed of any valid reason for lower production of gas in KG-D6 block, the panel said it has noted RIL's demand for higher natural gas price.

"The Committee would strongly urge the Ministry to adequately satisfy itself and convince the nation that the fall in production of natural gas in KG-D6 block is not due to commercial consideration or price at which the gas is to be sold," the report said.

It asked the ministry to seriously look at the fall in output and take urgent steps to increase production.

"The Committee also expects the Ministry to apply the provisions of Production Sharing Contract (PSC) with the contractor (RIL) strictly in letter and spirit in respect of latter's failure to deliver committed production of natural gas from KG-D6," the report said.

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