| Speaking about the company's plans for the KG basin at a national conference on "Natural gas in the KG basin," organised by the Confederation of Indian Industry (CII), Sharma said the race had already begun to catch up with the gas production plans in the KG basin scheduled to be commenced by mid-2008 as the first consignment of ready-to-use pipelines would be landing at the Vizag port on May 18. |
| Stating that the KG basin can become the energy hub of India, he said that the investment-friendly environment alone would hold the key for the development of the basin. |
| He further added that the state needed to provide infrastructure, including roads and land, multi-purpose port facilities and airport facilities to ensure the development of the KG basin. |
| While terming that the provisions of the Petroleum & Natural Gas Regulatory Board Act (P&NGRB)-2006, being tabled in the Parliament, would help the Indian gas sector make positive strides in coming days, he said that the legal framework must ensure the option to choose customers as well as suppliers and underlined the importance of free market atmosphere in determining gas prices and open access. |
| He said that the 40 mmscmd of gas to be produced in the KG Basin fields by RIL in the initial period would be easily absorbed as there was a demand-supply gap of 40-50 mmscmd in the country. |
| "But the second phase will pose certain issues. For subsequent production, we need to invest in downstream industries," he said. |
| Sharma however refused to speak on the pricing issues and milestones regarding the availability of gas. |
| "While our customers and the government at the highest level are aware of these details, our company policy does not allow me to speak on those issues publicly," he said. |
| In KG D6 block, the Reliance Industries has so far drilled 15 wells, of which gas has been discovered in 14. This accounts for just 20 per cent of the total exploratory area of the block. |
Explore Business Standard