Mukesh Ambani-led Reliance Industries (RIL) and its partner BP Plc on Tuesday announced the sanction of the MJ project in the KG D6 block off the east coast of India. The three new projects by these companies are expected to get investments to the tune of Rs 35,000 crore.
MJ (also known as D55) is the third of the three new projects in the Block KG D6 integrated development plan. Its approval follows sanctions for the development of “R-Series” deep-water gas fields in June 2017 and for the Satellites cluster in April 2018.
These projects together, when fully developed, will bring about 1 billion cubic feet a day of new domestic gas on stream, phased over 2020-2022.
Government sources said the RIL projects, along with ONGC discoveries, are expected to increase the natural gas production in India to 71.92 billion cubic meter (bcm) by 2021-22, from a mere 35.07 bcm now.
Gas production from KG D6 integrated development is expected to help reduce India’s import dependence and amount to over 10 per cent of the country’s projected gas demand in 2022.
Mukesh Ambani, chairman and managing director of RIL, said: “Bringing these three discoveries to production, as promised in 2017, by leveraging the existing infrastructure has been the primary objective of the Reliance-BP joint venture.”
Of the three projects, the R-Series is in the execution phase.
Bob Dudley, chief executive, BP Group, welcomed the investment decision. “We are building an important upstream business in India, helping supply the country’s growing gas market,” he said
Dudley added, “Working closely with Reliance, we are efficiently developing discovered resources, with focused exploration to give options for the future. This latest investment is a further demonstration of BP’s commitment to India and helps support India in addressing the dual challenge and moving to a low-carbon future.”