India's EnergTek Inc on Friday said its natural gas production will increase more than 60 percent in 2010, in line with overall expectations for the Indian market last month from the Center for Monitoring Indian Economy (CMIE).
Energy prices are on the upswing. Oil reached a six-month high above $66 per barrel in the U.S. on Friday as expectations for economic growth are pushing up prices of commodities.
CMIE said it expects natural gas production in India to grow 60.5 percent to 52,239 million cubic meters in 2009-10.
As the price of crude oil rises, the profitability of alternative energy solutions becomes even greater, said Energtek CEO Lev Zaidenberg. Natural Gas is a very competitive energy source with today's oil prices topping $50 per barrel. This is especially true in India, a country with rapidly expanding NG capabilities.
Energtekâ€™s subsidiary, Moregastech India Private Ltd. said earlier this month it expects revenues from the distribution and sale of natural gas from a partnership with an Indian pipeline operator generate $5 million in revenues in 2010, over $12 million in 2011 and $20 million in 2012, with amounts increasing thereafter.
Crude oil trading on the New York Mercantile Exchange closed up 1.89 percent to $66.31 on Friday. It was trading at around $40 in December, down from $140 per barrel last July, due to the global economic crisis.