Oil and Natural Gas Corporation will begin production from its Krishna Godavari gas discovery from 2012 and it has tied up with GAIL for transporting the fuel to the consumers.

"We envisage an initial production of 12 million standard cubic meter of gas from the block KG-TWN-98/2. This is only an initial production rate and the actual output may be higher,"

ONGC [Get Quote] Chairman R S Sharma told reporters. ONGC and GAIL signed a memorandum of understanding on Tuesday for cooperation in transportation of gas discovered in KG and Mahanadi basin.