Ad Here  
Fall in crude prices help in oil sector reform Align crops to agro climate endowments… An inexplicable neglect New IT products of Ramco in the pipeline… When nations steal growth from one another… The rise and fall of Annamalai University Fortune 500 review Increasing non co-operation of state leaders Reliance’s TV – 18 ready to launch Tamil News Channel CSR and CMI: promise of another Srinivasan Ramanujan... Shale gas and its shallow future The power-full Hindujas Protest masters... B H Kothari - a tribute R Sridhar steps down as CEO of Shriram Capital Naidu’s return augurs well for Seemandhra An informal presentation - analytical, forward locking... A more liberated TN… Rahman at CIC Where is Rajaji? Readers' Mail Cement prices continue to rise… ONGC at KG Basin WTO Meet: resolved to meet again London, London Narayan Modi storms Silicon Valley Lalu’s envy, India’s pride A welcome initiative by the judiciary Insurance companies bleeding, yet no decision on increasing FDI limit! Funding the un-funded Building loyalty through the stomach No Maha Koottani in TN... Godspeed, Chief Minister JJ TN accounts for the largest recruits by the IT sector Tax agriculture Towards speedy justice The Ports’ Pasha expands into Tamil Nadu MHC should not return to its old indisciplined ways GM Technology at last! Eternal support for capitalisation of PS banks When TN politicians can emulate Kerala's Remembering Indira Sivasailam... A rich pool of talent not utilised…. S Ramanathan – a versatile musician, musicologist TELANGANA at last…BUT Dr C Rangarajan returns to Chennai Nuclear power at the nucleus …and of a popular trade leader Kulandai was a giant Welcome GST Shaming of Tamils by Tamil farmers at Delhi Sweet news for TN sugar mills Discoms deserve better… Adharma of opposition politics TN-leverage strength of BHEL, NLC... Music happens When Ratan Tata visited SRM Kinetic Karnataka Sweeter prospects for sugar The Gulf aviation boom Parliament in paralysis... Noble nonagenarians... Why this malaise in medical education? Tatas moving out of urea production... S V Raju – a ‘good’ true liberal No mega rail project for Tamil Nadu Liberal imports idling indigenous capacities The star of Spencers is no more Naidu will soon build a new Hyderabad Five star activism stalls development activity Come elections, come advertisements... Auto components surge… More Shakthi to Das’ elbow For whom the bell tolls? Moily’s bold thrust Put expensive assets created to use... Kudos to NDTV... PC’s preference for professionals Of course, Gujarat is vibrant Limit foreign borrowings to hi-tech, export potential projects... Another Indian music maestro at the UN Land reclamation from sea appears cheaper! The Jan Dhan bonanza Pharma – overdose of copying When the President was rendered homeless… Delhi is distant… When small is no larger beautiful.. Solar, solar everywhere … China invests in India Strengthen the base... Measuring roof tops in terms of KW/MW Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated L&T- the specialty of special purpose vehicles Things happen by accident and not by design... Focus on quality of power - its only around 170-180V Which side are you, Montek? Recognition to role of NBFCs.... The balancing act A C Muthiah – his munificent bequeaths to science Editor's Notes Plummeting profits of PSBs When online building permits work…. CII projects higher growth… Why land prices zoom in TN? Maximising the micro pricing … West Bengal: mindless malignancy There was flood of milk. Reason: no milk commissioner! PPP mode for upgrading Corporation Hospitals Robber barons everywhere Polls and promises Poor quality of university VCs Build close rapport with business leaders A Grand Finale for SN’s MS centenary at the US… Should we change the official year? Revving up the manufacturing sector More Shakti to resource mobilisation... Road development slows down How Air-India loses customs... Delhi returns to BJP Quality education through the PPP mode Sri Lanka votes for change Tatas moving out of urea production... Convulsions in The Hindu Engineering seats go abegging GNS - 100: our first subscriber The why of tax incentives Rs.1600 crore paper board plant of TNPL A yen for wastage… Whistle-Stop Tour of Raghuram Rajan Gay abandon in pricing He saved millions from starvation... Waning interest in public discussions… Tribute – Manikam Ramaswami Tihar, Puzhal not different from Parappana Agrahara Small units prefers to remain small... Quality silica from Neyveli Editor's Says Demise of a media baron... Tough task taking states together Boy, can you beat these? TN – agglomerate land holdings without alienating ownership CIPET hqrs to stay at Guindy – for the present? TGS- The king storyteller More heat than light Air Asia India will set new benchmarks for budget travel More tributes to GR Wise Presidents Solar thermal shines… Bihar – Nitish Kumar adopts the Lalu model The sea- saw battle continues... The brown list of Venkitaramanan CRS, a jewel among managers, is no more. A friendly business group The few handicaps... Roaring Ro-Ro facility Streamlining mandatory third party cover TIAM turns a full cycle All eyes on Sankara Nethralaya Banning booze... Inflation: are we emulating Argentina and Brazil? Shipping woes of Chennai companies to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Modi and the lady The Swadeshi Trump Wanted: a second airport for Chennai Silver Years of Madras Musings Vibrant Gujarat Paytm karo... Marketing expert Balagopal is no more Scientists urged to take up farmer-oriented research A Grand Finale for SN’s MS centenary at the US… Diamond jubilee of Egmore Samskrt School The ‘Ayyo-yes’ is no more Like Hinduism: many paths to reach God... Colour-Chem’s colourful KRVS The nuclear option Making ‘my Amaravati’... Tribute – UCAL Selvan… Multi-faceted Venkat No engine for this car Where a state respects its litterateurs… Alexa – Talking Wikipedia Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Intellectual of rare qualities A think tank for Chennai For whom the MIDS bell tolls? Fuel for thought Delhi is distant Welcome changes that testify to Jayalalithaa’s return to health He continues the focus on social amelioration Bihar elections - the Rajaji formula worked Tribute Valli, they are more marginalised Tribute – M V Murugappan This scant respect for Law Airlines in India: cost and space L&T: focus on infrastructure and more infrastructure… A glass full of corruption Cutting the nose to spite the face Contrarian cousins SoA @ 80 An enemy’s enemy is a friend Muffled voices for merit… Don’t seem to feel the pulse… Padma Bhushan for A Ramakrishna Mersal magnified Mu Sigma – is no more The rise and rise of KCP Excel Generators provide the vital back-up Haul over the coal Return to king coal for urea... Odisha: spectacular win by Naveen Patnaik Permanent secretariat for TN GIM Infrastructure funding – lessons learnt Russi Mody – a tribute EVM is tamper-proof IPL - no surprise this scam Medical costs hit the roof... Welcome thrust on trade in Modi’s foreign visits... Gas is the way forward Make standards certification mandatory... F C Kohli - his concerns all embracing Welcome focus on core competence Breaththrough in malaria control A professional at the helm of IRDA... Secularism and anti-Hinduism Computation of GDP – conundrums continue Adapt Vajpayee dinner diplomacy A proud Madrasi Preserving for the future The ‘Jayanthi Tax.’ Revive development banks... Online not in line with brick and mortar businesses... Not just in-laws (and outlaws); they’ve renowned academics at the helm! Fortune for Indian Airlines EEC at the National Media Centre Shanti and Sadhana through Music Telangana in top gear… Delhi Chalo... IPL type auction for VCs? Poor representation for Kerala and TN in Cabinet Cleaning Ganga – relocate tanneries and install electric crematoria Lesson from Chandrababu Naidu IAS invades NDDB...
ONGC at KG Basin

At the Economic Editors’ Conference held in November 2009, the then Minister of Oil and Natural Gas, Murli Deora, expressed hope on the Krishna Godavari Basin off the Andhra coast emerging as a large producer of natural gas. At that time, Reliance production touched a level of 60-80 million cubic metres per day. Deora said that ONGC, Cairn Energy and GSPC which were also exploring gas would also emerge as large producers of gas from the KG Basin. There was an indication of daily production at 200 msmcmd!

Disappointingly, this hope did not materialise: the low price for gas pegged by the Supreme Court at $4.20 per 1000 MMBTU rendered exploratory efforts uneconomic; even production from Reliance gas fields dropped to less than 25 msmcmd.

In this background, recent news on ONGC striking gas rich is welcome. In parallel, there is another welcome development of the government re-negotiating the long term agreement with Qatar on gas contracts. The twin deals, of the long term supply at $6- $7 per 1000 MMBTU and Qatar agreeing to forego the claim on arrears of Rs 12,000 crore are extremely positive developments.

This should accelerate efforts at setting up gas terminals at Ennore and Tuticorin in Tamil Nadu and also at nearby Krishnapatnam. IE has been stressing the elegance and economics of switching to gas from liquid petroleum products by a vast range of industries. Around $6 per 1000 MMBTU will make production of fertilisers and electricity from gas attractive.

Tamil Nadu should learn from the extensive use of gas by industries in Gujarat and Maharashtra to great advantage. It should work on expediting the creation of a gas grid for Tamil Nadu and focus on domestic supply by piped gas, as done in Delhi, Mumbai and several cities in Gujarat.


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236