Coronavirus lockdown effect: Natural gas output falls by one-fifth as demand shrinks

Natural gas output fell by nearly one-fifth in April due to lower demand from industries as coronavirus lockdown took a toll on economy. Gas output fell 18.6 per cent to 2.16 billion cubic metres last month compared to 2.65 bcm in the same month a year ago, data from oil ministry showed.

A 15.3 per cent fall in output by ONGC to 1.72 bcm led to fall in production of natural gas.

"The shortfall in gas production (by ONGC) is primarily due to less gas offtake by consumers due to COVID-19 lockdown," the ministry said.

Another state-owned player Oil India produced 10 per cent lesser natural gas at 202.05 million cubic metres due to "loss of potential in Deohal area (in Assam) due to presence of CO2 in production stream (and) less gas offtake by consumers due to COVID-19 lockdown," it said.

Crude oil production too dipped 6.35 per cent to 2.5 million tonnes in April.

Crude output of Oil and Natural Gas Corp (ONGC) fell to 1.7 million tonnes in April, while fields operated by private firms such as Cairn produced 19.2 per cent less oil at 615,800 tonnes.

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Oil production from Cairn India's  Rajasthan fields fell 19.2 per cent at 490,560 tonne, data showed.

ONGC's crude oil production fell due to "closure of wells in Western Offshore due to less offtake by GAIL due to COVID-19 lockdown (and) restriction of movements for field operations in onshore fields due to COVID-19 lockdown," it said.

Cairn's Rajasthan fields recorded fall in output on delay in hook-up of new wells, delay in workover wells revival and new injector due to COVID-19 impact.

Lockdown led to shrinking of demand leading to production of 30% less fuel by refineries at 18.9 million tonnes.

"Reasons for shortfall in production mainly include low demand due to COVID-19 lockdown," the ministry said.

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