RIL and BP are developing three deepwater gas projects in KG D6 block, which together are expected to meet 15% of India’s gas demand by 2023.
Mukesh Ambani’s Reliance Industries Ltd and Britain’s BP Plc on Friday announced the commencement of gas production from ultra-deep-water gas field in block KG D6 R-Field of Krishna Godavari basin. The project will be the first of the three projects that are expected to meet 15% of India’s gas demand. This will account for nearly 25 per cent of domestic production, the company said in its filing to the stock exchange.
Oil-to-telecom conglomerate Reliance Industries is the operator of KG D6 with a 66.67% participating interest and BP holds a 33.33% participating interest.
Shares of Reliance Industries on Friday were down 2.29 per cent at 221.75 on the Bombay Stock Exchange.
“This is a significant milestone in India’s energy landscape, for a cleaner and greener gas-based economy. Through our deep-water infrastructure in the Krishna Godavari basin we expect to produce gas and meet the growing clean energy requirements of the nation,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited.
According to the company, RIL and BP are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet 15 per cent of India’s gas demand by 2023. These projects will utilise the existing hub infrastructure in KG D6 block. RIL is the operator of KG D6 with a 66.67% participating interest and bp holds a 33.33% participating interest.
R Cluster is the first of the three projects to come onstream. The field is located about 60 kilometers from the existing KG D6 Control & Riser Platform (CRP) off the Kakinada coast and comprises a subsea production system tied back to CRP via a subsea pipeline. Located at a water depth of greater than 2000 meters, it is the deepest offshore gas field in Asia. The field is expected to reach plateau gas production of about 12.9 million standard cubic meters per day (mmscmd) in 2021.
The company’s next project, the Satellites Cluster, is expected to come onstream in 2021 followed by the MJ project in 2022.
Peak gas production from the three fields is expected to be around 30 mmscmd (1 bcf/d) by 2023 which is expected to be about 25% of India’s domestic production and will help reduce the country’s dependence on imported gas.