Government Approves Reliance’s Investment Plan to Increase KG-D6 Gas Production

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Reliance Industries obtained clearance from the government to further invest in enhancing gas production in its KG-D6 block located in the Bay of Bengal. The expansion will increase output by an additional four to five million standard cubic metres per day (mscmd). Together with its partner BP, Reliance currently contributes approximately thirty mmscmd, or about thirty percent of India’s total gas output, from the KG-D6 block.

Currently, the Reliance-BP alliance extracts thirty mmscmd from three major discovery areas within the deep-sea KG-DWN-98/3, also known as the KG-D6 block. Furthermore, the block’s output constitutes nearly 90 percent of the recent rise in the country’s domestic gas production.

Natural gas from KG-D6 is instrumental in achieving a multi-year peak domestic production rate of 99 mmscmd. This gas is crucial for generating electricity, manufacturing CNG for vehicles, or supplying piped gas for residential cooking.

As reported by PROJECTS TODAY, Reliance manages the KG-D6 block with a 66.67 percent ownership, while BP holds the remaining 33.33 percent stake. To date, Reliance has identified 19 gas deposits in the block, with the first productions from the D-1 and D-3 sites starting in April 2009.