What does ONGC’s recent gas production in the Arabian Sea mean for India’s energy landscape? It signifies a crucial step towards reducing the country’s reliance on imported natural gas.
On March 30, 2026, ONGC officially began gas production from its Daman Upside Development Project, located about 180 kilometers northwest of Mumbai. This project is expected to produce up to 21.5 billion cubic metres (BCM) of natural gas over its lifecycle, a significant boost for India’s energy sector.
Gas is currently flowing from the B-12-24P platform and has been successfully sent to the Hazira Plant. According to ONGC, “This [B-12-24P] platform has been successfully commissioned and gas sent to Hazira Plant.” This marks a pivotal moment in India’s efforts to enhance domestic gas production.
In the first ten months of FY26, India imported 29.185 billion cubic metres of natural gas. If the Daman project reaches its projected output, it could offset approximately 73.66% of these imports, significantly impacting the nation’s energy balance.
Moreover, the Daman project’s peak output could account for around 61.38% of India’s annual gas imports for FY26, underscoring its importance in the country’s energy strategy.
ONGC has invested approximately $1 billion in the Daman project, reflecting the company’s commitment to enhancing domestic production capabilities. As ONGC stated, “Production from all wells will be ramped up in a phased manner,” indicating that further increases in output are anticipated.
The Daman Upside Development Project aims to reduce India’s dependence on natural gas imports amid global energy market disruptions, making this development even more significant.
As the project progresses, the full impact of this new gas production will unfold, potentially reshaping India’s energy landscape for years to come. Details remain unconfirmed regarding the timeline for ramping up production from all wells, but the initial success is promising.
