Domestic natural gas production fell by 9.5% year on year to 2427 cubic meter in August.The 2.6 million tonnes of crude oil produced in-country during the month was also 6% lower than the production in the year-ago period of manufacture.
Indigenous natural gas production caters 51%of the country’s requirements, while around 85% of country crude oil is imported.
As noted earlier by care ratings, the total production of domestic natural gas would fall by 10% in the fiscal year 2021 as no company would aggressively want to increase production or get into high-risk projects with such a low gas price.
The current price of gas produced from local fields has been revised to an all-time low by the government, which is even below the breakeven point for most fields that the agency noted.
Indigenous natural gas production craves about only 51% of the country’s requirements.
Demand for natural gas in the domestic market basically depends on fertilizer(28%), power (23%), city gas distribution entities(16%), refineries (12%), and petrochemicals (8%) industries.
The country targets to increase the share of natural gas its energy mix to 15% by 2030 from the current level of about 6%.