Import of Liquefied Natural Gas (LNG) is likely to double to1200mmcfd by July 2017 from its current volume of 600 million cubic feet per day (mmcfd), official sources have revealed.
Sources have also stated that currently there was a huge gap between demand and supply (domestic production) of gas hence increased reliance on imported gas is likely to increase in the near future unless major gas discoveries are made. It has also been reported that the government has been taking several measures to reduce reliance on imported gas.
The sources said that Petroleum Policy 2012 was geared towards attracting investors to the sector. As many as 46 new blocks had been awarded under the new policy, while the clearance process of another 32 exploration blocks to oil and gas exploration and production companies is underway.
The sources have also informed that the producer gas price had been increased from 31 pc to 68 pc for different zones to encourage investment in the oil and gas sector. For new exploration efforts in the existing blocks, supplemental agreements had been signed for conversion to the 2012 Petroleum Policy price. Moreover, the government  also introduced $1/MMBTU  scheme for the first three discoveries in offshore areas, and allowed exploration and production (E&P) companies to sell 10 pc of gas production to any buyer.
