The state-owned Gujarat State Petroleum Corporation (GSPC) may finally start natural gas production from Deendayal West (DDW) discovery in the block KG-2001/3 from December 2013, that is, a delay of more than five years. Earlier it was announced that GSPC will be able to start production by June this year but that did not happen due to various reasons.
GSPC sources say that strike by local fishermen hampered the work at Onshore Gas Terminal for three months. Lack of clarity on separate forest and wildlife clearance resulted in GSPC suspending offshore pipeline laying works for some time. Further, late receipt of authenticated map from Andhra Pradesh government outlining Coringa wildlife sanctuary also played its part in delaying the project. Also environment clearance for Process-cum-Living Quarter Platform and Onshore Gas Terminal were received late.
GSPC has so far spent more than $1.7 billion on Deendayal project and for the year 2013-14 the company has budgeted $541.85 million expenditure. GSPC is expected to produce around 2 to 2.5 million standard cubic metre (scm) of gas from Deendayal West block initially.