Reliance gets govt approval for raising KG-D6 basin gas output

24 Apr 2024 , 10:58 AM

Reliance Industries Ltd has received government approval for increased expenditures in developing gas reserves in its KG-D6 block in the Bay of Bengal, which may increase production by 4 to 5 million standard cubic metres per day, according to a company official.

Reliance and its partner BP Plc currently generate around 30 mmscmd, or around 30% of India’s gas production, from the KG-D6 block.

At an investor call to announce fourth-quarter earnings, Sanjay Roy, senior vice president for exploration and production at Reliance Industries Ltd, stated that the government has approved the development plan for incremental output.

He mentioned that a positive highlight of the previous quarter was the approval of an additional development plan by the government. This plan has the potential to increase production by 4 to 5 million standard cubic meters per day in the upcoming years, thus enhancing our current production levels.

Reliance-BP extracts approximately 30 million standard cubic meters per day (mmscmd) of gas from three groups of discoveries located in the deep-sea KG-DWN-98/3 or KG-D6 block. The most recent of these discoveries, the MJ oil and gas well, commenced production in May 2023. All three sets of discoveries, with MJ being the most profound, were made more than a decade ago and have been gradually brought into production.

KG-D6 has increased the domestic output of natural gas, which is used to generate electricity, make fertiliser, or be converted into CNG for use in autos or piped to kitchens for cooking, to a multi-year high of 99 mmscmd.

So far, Reliance has discovered 19 gas fields in the KG-D6 block. D-1 and D-3, the largest of the lot, were brought into production in April 2009, while MA, the block’s solitary oilfield, and was placed into production in September 2008.

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