Modi has big plans for Gujarat
By Pramod Kumar
The bold decision to take high risks has finally paid a handsome dividend for Gujarat. Its company, Gujarat State Petroleum Corporation (GSPC), has discovered the largest natural gas reserves, i.e. 20 trillion cubic feet (TCF) of gas worth approximately Rs 20 lakh crores in the Krishna-Godavari basin in Andhra Pradesh. With this discovery, Gujarat has become the first state in India to explore successfully on its own. The most successful exploration pursuit prior to it was the discovery of 12 TCF of natural gas by the Reliance Group from the neighbouring KG exploration block.
According to Gujarat Chief Minister Narendra Modi, the discovery could be larger than 20 TCF. ?Nearly 20 TCF reserves of gas have been found as told to me by technical experts and scientists. I am a bit conservative and thus revealing it with some reduction,? he told mediapersons in New Delhi. Gujarat'sMinister of State for Planning and Energy Shri Saurabh Patel, Finance Minister Vajubhai Vala and GSPC chairman Shri D.J. Pandian, were also present at the press conference.
?Before proceeding to the project I had told my brothers in GSPC that if they achieved success, the entire credit would go to them, and if they failed, I would be there to face all criticism,? said Shri Modi, while describing the discovery as a historical moment for the entire hydrocarbon sector of the country. He dismissed the suggestion that GSPC'sgas find was premature. ?We have also got a third-party verification on the reserves,? he said, adding that 85 per cent of the gas reserves were recoverable and the total find would be exploited over a 10-year period.
Largest natural gas discovery by Gujarat in Krishna-Godavari basin
Shri Modi, while dedicating the project to the nation, renamed it as Deendayal?the saviour of the poor people, and added that the state government would spend the income from the first well on the uplift of the poor. With this discovery, India'scurrent gas production will almost get doubled. Never before in the history of the country has such a huge gas reserve been found. The discovery has been made within a short span of 300 days from commencement of exploration activity. This project, K.G.-OSN-2?1/3 Block, was awarded to Gujarat during the previous NDA government under the NELP-III round of bidding.
The project is located 6 kms away from the shore of the Yanam-Kakinada coast of Andhra Pradesh. The drilling operations at KG#8 well was started on January 17 this year. It was drilled up to depth of 5,061 metres under high temperature (390oF) and high pressure (12,000 psi). More than 800 metres of a gas column was encountered between 4,250 to 5,061 metres. The well began to flow on June 17, 2005 and confirmed the commercial discovery of natural gas. Commercial production of gas will commence by December 2007. ?The first task before us is to bring the gas onshore. It will require an additional investment of Rs 1,500 crores for further development of the project and also to continue exploration activities in this block,? said Shri Modi.
More than 800 metres of a gas column was encountered between 4,250 and 5,061 metres. The well began to flow on June 17, 2005 and confirmed the commercial discovery of natural gas. Commercial production of the gas will commence by December 2007.
?The discovery will make Gujarat an economic super power amongst other states in India. The impact will be widely felt since it will provide vital fuel for power generation, transportation and industrial development to meet our domestic needs,? Shri Modi added.