Reliance starts gas production in Krishna Godavari basin

Mumbai, April 2 (IANS) The Mukesh Ambani-led Reliance Industries Ltd (RIL) Thursday started gas production in its deep-sea Krishna Godavari (KG) fields, nearly seven years after it found the gas off the coast of Puducherry.

The gas production from Dhirubhai 1 and 3 wells of the KG-D6 block is expected to add about Rs.4,000 crore ($795 million) to the annual revenue of RIL, the company said in a statement.

'At peak production, the KG-D6 facility is expected to produce over 550,000 barrels of oil equivalent per day,' the company said.

The gas from KG-D6 is also expected to reduce India's import bill.

The gas would boost power supply from idle electricity generators starved of fuel and produce cheaper urea for agriculture.

'This is a momentous occasion for India. The clean energy from Dhirubhai 1 and 3 discoveries of the KG-D6 block will be a boost for energy security and growth of India,' RIL chairman and managing director Mukesh Ambani said.

The Rs.44,175 crore ($8.835-billion) project will double domestic gas production when the field hits peak output.

It will wipe out fuel deficit at urea-making fertiliser plants and meet half of the 36 million units per day gas shortfall in power plants, the company said.