India Petroleum Update

India's Biggest Gas Find

The Krishna-Godavari Basin, that threw up the 14 trillion cubic feet (tcf) gas field for Reliance in 2003, has done it again - this time for relatively puny old Gujarat Petroleum. To be honest, GSPC has been attracting a lot of media interest of late, but nothing can beat this $50 billion addition to its asset list. The gas find is worth about 20 tcf, which is two thirds of Bangladesh's proven reserves.

As more details of the reserves pour in, it should be interesting to note the worth of the oil leg in this find, which could be decent too.

The Gujarat CM, Narendra Modi, revelled while announcing this to the press a short while ago, and went on to name the project, "Deen Dayal" or "Saviour of the poor".

Doubts are already being cast on the viability of the scheduled incoming pipelines. Similar doubts were cast after the Reliance find too - even then though the Reliance group itself remained firmly in favour of the pipeline.

Domestic Petro-product Pricing

The other big happenning this week was the price hike of petroleum products. Petrol was made dearer by Rs 2.50, and diesel by Rs 2.00.

As volatile as that decision to increase prices was, petrol pump owners were not impressed. They went on strike demanding higher commissions - which would naturally have to passed on to the consumers.

Gas for Dabhol

With the Dabhol plant all set to resume operations, India is now looking towards Qatar for additional supplies of LNG. This is in addition to the 5 mtpa Qatar is already supplying, and the additional 2.5 mtpa for which negotiations are in progress.

Tailpiece

After Bangladesh, illegal diesel imports are finding their way into India now from Nepal.