RIL wins govt nod for additional investment to raise KG-D6 gas

Reliance and its partner bp Plc currently produce 30% of India's gas production from KG-D6 block

Reliance Industries Ltd has got government approval for making additional investments in developing gas reserves in its KG-D6 block in the Bay of Bengal that can add 4 to 5 million standard cubic meters per day to the production, a company official said.

Reliance and its partner bp Plc currently produce around 30 mmscmd or about 30 per cent of India's gas production, from the KG-D6 block. At an investors' call announcing the fourth quarter earnings, Sanjay Roy, senior vice-president for exploration and production at Reliance Industries Ltd, said the development plan for incremental production has been approved by the government.

"One good aspect of this quarter gone by was that we had an incremental development plan approved by the government, which has the potential to deliver incremental production of 4 to 5 million standard cubic meters (per day) in the coming few years, which would augment the production that we have," he said.

He, however, did not give details of the investment approved. Reliance-bp produces some 30 mmscmd of gas from three sets of discoveries in the deep-sea KG-DWN-98/3 or KGD6 block, the last - MJ oil and gas field - being put into production in May 2023. All three sets of discoveries, with MJ being the deepest, were made more than a decade back and have been progressively put into production.

Prior to that, they had brought the RCluster field to production in December 2020 and the Satellite Cluster in April 2021.

KG-D6 has helped domestic production of natural gas, which is used to generate electricity, make fertilizer or turned into CNG for running automobiles, touching a multi-year high of 99 mmscmd.