Centre aims at doubling oil and gas production in North East by 2030

The Centre has taken up an ambitious target to double oil and gas production in the hydrocarbon-rich North East India in next 15 years. Dharmendra Pradhan, Union petroleum and natural gas minister, today unveiled ‘Hydrocarbon Vision 2030 for Northeast’, which besides ramping up production, proposes to double refining capacity and significantly expand pipeline network in the region over the said period. A mammoth investment to the tune of Rs 1,30,000 crore would be required to realise this target, much of which would come from the coffers of the oil companies, the minister said.  

The vision statement lays out a detailed roadmap for the entire hydrocarbons value chain, covering upstream, midstream and downstream segments. It includes an action plan – of immediate, medium-term and long-term initiatives, to help achieve the objective.

Of the total investment, Rs 80,000 crore would be required for upstream activities, Rs. 20,000 crore for midstream and Rs 30,000 crore for downstream. “These are projects of the oil companies and they would arrange requisite funds. There would be no requirement for budgetary allocation. Yes, for some projects there could be viability gap funding, especially for midstream projects,” the minister said. He added that every year investment of around Rs 10,000 crore would be made in the region as part of the ‘Hydrocarbon Vision’.  

The present crude oil production in North East is around 12,444 TPD and average rate of gas production is around 11.32 mmscmd. The total refining capacity of four Assam-based refineries presently stand at around 7 MTPA and the total length of pipeline network in the region is around 32,000 km.  

Key initiatives in the upstream sector will include introduction of production enhancement contracts, promotion of new technology, enhancing exploration activities, possibility of providing premium on gas price for gas produced from challenging blocks and development of service provider hubs at Dibrugarh, Jorhat and Agartala.  

The midstream initiatives would include new pipeline projects for crude, natural gas, petroleum products and LPG, and development of an energy corridor.  

The downstream activities would include expansion of refinery capacity from 7 MTPA to around 16 MTPA, ensuring utilisation of flared gas for downstream segment industries and promotion of production of bio ethanol and other special products in the region.  

Pradhan said beyond production, the focus areas would include exploring trade opportunities with Bangladesh, Myanmar, Nepal and Bhutan.  

“The objectives of the plan are to leverage the region’s hydrocarbon potential, enhance access to clean fuels, improve availability of petroleum products, facilitate economic development and to link common people to the economic activities in this sector,” said Ajay Sawhney, additional secretary, ministry of petroleum and natural gas.  

Sawhney added the vision document was developed with involvement and inputs of various stakeholders, industry players and state governments. CRISIL Infrastructure Advisory was the knowledge partner in developing the vision report.