Reliance Industries Ltd is set to commence natural gas production from its deepest discovery in the KG-D6 block this quarter and is expected to cover for 15% of India’s gas demands. KG-D6 block is located off the coast of Andhra Pradesh and is India’s only deep-water block under production.
Reliance Industries Ltd is set to commence natural gas production from its deepest discovery in the KG-D6 block this quarter and is expected to cover for 15% of India’s gas demands. KG-D6 block is located off the coast of Andhra Pradesh and is India’s only deep-water block under production.
According to an investor presentation after the March quarter earnings, the company reported that it produced an average of 20 million standard cubic meters per day during the January-March quarter.
According to an investor presentation after the March quarter earnings, the company reported that it produced an average of 20 million standard cubic meters per day during the January-March quarter.
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Reliance and its partner, UK supermajor BP, are also approaching the commencement of production from their massive MJ deep-water project, which is expected to significantly increase gas production from their highly valued east coast asset.
“MJ field is expected to commence production in 1Q FY24 (April 2023 to March 2024),” it said.
The operator of the block had originally intended to commence production in the December quarter but experienced a three-month delay. Reliance and BP have allocated around USD 5 billion towards the expansion of KG-D6, which involves three distinct projects aimed at revitalizing offshore gas production.
The initial two developments, R-cluster and Satellite Cluster have already begun producing gas, while MJ is close to completion. According to Reliance’s presentation, the start of MJ will result in KG-D6’s gas production reaching 30 mmscmd in FY24.
“Testing and commissioning underway in the MJ field,” it said. “One well opened as part of the ongoing testing of the integrated production system.”
Several companies in the city gas, power, and fertilizer sectors have already purchased 6 mmscmd of gas from the company. To produce gas from the deepest gas discovery in the KG-D6 block, the two partners intend to employ a floating production system in the Bay of Bengal.
The MJ-1 gas discovery is located directly beneath the Dhirubhai-1 and 3 (D1 and D3) fields, which are the largest and first fields in the KG-D6 block, at a depth of approximately 2,000 meters. The MJ-1 field is expected to contain a minimum of 0.988 trillion cubic feet of contingent resources and also has oil reserves.
The gas and oil will be extracted from wells drilled beneath the seabed and then purified at the Floating Production Storage and Offloading. The oil will be transported by tankers to refineries for sale, while the gas will be transported via an undersea pipeline to the shore and eventually to customers.
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