BP, Reliance Sanction Latest India Gas Project
BP and its Indian partner Reliance Industries have sanctioned the development of the Satellite cluster project in KG D6 block offshore India’s east coast.
It is the second of three joint projects that together are expected to produce 1bn ft3/d of new Indian gas production by 2022.
“The companies are moving forward to develop the Block’s discovered deep-water gas fields in an integrated series of projects, bringing new gas production for India,” both said April 19 in a joint statement.
The Satellite cluster is the second of three projects in the integrated development of the KG D6 block. The first of the projects, development of the R-Series deep-water gas fields, was sanctioned in June 2017. Together the three projects will develop a total of about 3 trillion ft3 of discovered gas resources with a total investment of $6bn. They are expected to bring a total of roughly 30-35mn m3/d (1bn ft3/d) of new domestic gas production onstream, phased over 2020-2022. BP and Reliance had last year announced the decision to invest an additional $6bn in the KG-D6 block.
Mukesh Ambani, chairman, RIL, said: “In consonance with our announcements last year to raise domestic gas production, we are delighted to announce the on-schedule progress of the Satellite cluster in the east coast of India. This development supports the country’s imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy.”
"This latest investment is a further demonstration of BP’s commitment to India. Through our partnership, Reliance and BP are able to develop these discovered gas resources efficiently and economically, working closely with the Government of India. These new developments will produce much needed energy for India’s thriving economy,” said BP CEO Bob Dudley.
The first of the KG D6 projects to be sanctioned, the R-series project, is already in execution phase with all major contracts awarded, the companies said.
India today consumes over 5bn ft3/d of natural gas and aspires to double gas consumption by 2022. Gas production from the integrated development is expected to help reduce India’s import dependence and amount to over 10% of the country’s projected gas demand in 2022, according to the companies.