What does the commencement of gas production by ONGC in the Arabian Sea mean for India’s energy landscape? It signifies a critical step towards reducing the country’s reliance on natural gas imports, with the Daman Upside Development Project officially starting production on March 30, 2026.
Gas is now flowing from Platform B-12-24P, and this vital resource is being directed to the Hazira Plant. Located approximately 180 kilometers northwest of Mumbai, the Daman project is poised to play a significant role in India’s energy strategy.
At its peak capacity, the Daman project is expected to produce an impressive 21.5 billion cubic metres (BCM) of natural gas over its operational lifecycle. This production level could offset around 73.66% of the 29.185 billion cubic metres of natural gas that India imported during the first ten months of FY26.
According to ONGC, “This [B-12-24P] platform has been successfully commissioned and gas sent to Hazira Plant.” The company plans to ramp up production from all wells in a phased manner, ensuring a steady supply to meet domestic demands.
With approximately $1 billion invested in the Daman Upside Development Project, this initiative is not just about immediate production; it reflects a broader strategy to enhance energy security amid global market disruptions.
The Daman project’s peak output could account for roughly 61.38% of India’s annual gas imports for FY26, marking a significant shift in the country’s energy dynamics. This development is particularly crucial as India seeks to bolster its energy independence.
As the project unfolds, the implications for the Indian energy market will be closely monitored. The Daman Upside Development Project aims to mitigate the challenges posed by fluctuating global energy prices.
Details remain unconfirmed about the exact timeline for reaching peak production levels, but the initial success of the Daman project is a promising indicator of what lies ahead for ONGC and India’s energy sector.
