According to a research note by Macquarie Research, the hike in the natural gas price could boost India's recoverable gas reserves manifold.
The note quoted global consultants IHS-CERA to say that the nation's producible gas resources will rise to 80 Tcf at $8 gas price.
Meanwhile, union petroleum Minister M Veerappa Moily said over 3 Tcf of gas discoveries are lying to be exploited. These have not been declared commercial by our own Directorate General of Hydrocarbons (DGH) as they cannot be monetised at a price of $4.2, Moily said this while defending gas price hike.
The reserves in these discoveries equals the remaining resource base in the currently producing Dhirubhai-1 and 3 (D1&D3) gas fields in RIL's eastern offshore KG-D6 block.
According to industry sources, the finds whose commerciality has not been approved by DGH are spread over RIL's KG basin KG-D6 block and Cauvery basin block CY-DWN-2001/2 off the Tamil Nadu coast.
Owing to low gas price, commerciality of D-5 and 18 in KG-D6 was not submitted, Declaration of Commerciality (DoC) of D-29, 30 and 31, which hold around 350 billion cubic feet of reserves and which can produce 5-7 million standard cubic meters per day, has not been approved by DGH.