The Central government is considering a proposal to link the two sedimentary basins - Krishna Godavari basin and Mahanadi basin through a pipeline that will provide a common infrastructure to E&P companies for evacuating natural gas.

The proposed infrastructure will be created either through private investments or through the public-private partnership (PPP). Details of the project is yet to be prepared. The proposed move will benefit companies operating E&P activities in KG and Mahanadi basins.

Recently, ONGC, Gujarat State Petroleum and RIL have claimed to have struck gas reserves in KG basin. Reliance has already made 12 discoveries since making the first major gas find in its first exploratory well, Dhirubhai 6 (D6), in the KG-DWN-98/3 block. D1 and D3 are being developed in the first phase with gas production beginning from June 2008 and gas output is expected to reach a plateau of 80 mmscmd.

GSPC has struck gas in its block located in KG shallow water. The company is yet to submit an appraisal programme for the discovery of gas. ONGC is also to start commercial production at 'Turputallu' in KG onland basin (Andhra Pradesh) in 2007-08.

Also See:

ONGC, RIL plans gas processing unit (20-Dec-06)