Domestic natural gas production fell by 2.2 per cent year-on-year to 2,551 million standard cubic metre in January 2021. However, natural gas production in January 2021 was the highest monthly output recorded in fiscal year 2020-21, due to commencement of production from Reliance Industries and BP’s ultra-deep-water field in the KG D6 Block of the Krishna Godavari basin on the east coast.
Domestic production has been falling with the ageing of existing fields and lukewarm response from the industry to take up new projects, mainly due to lack of adequate incentives. Other reasons for lower output include lack of buyers, inadequate evacuation infrastructure and other technical constraints in hostile geographical terrains.