What does the commencement of gas production from ONGC’s Daman Upside Development Project in the Arabian Sea mean for India? It signifies a pivotal moment in the country’s efforts to enhance energy security and reduce reliance on imported natural gas.
On March 30, 2026, ONGC announced that gas is now flowing from Platform B-12-24P, with the output being directed to the Hazira Plant. This project, located approximately 180 kilometers northwest of Mumbai, is expected to yield a remarkable 21.5 billion cubic metres (BCM) of natural gas over its operational lifecycle.
This development comes at a crucial time, as India imported 29.185 billion cubic metres of natural gas during the first ten months of FY26. If the Daman project reaches its peak capacity, it could offset around 73.66% of these imports, significantly easing the country’s dependence on external sources.
ONGC has invested about $1 billion in the Daman Upside Development Project, underscoring the importance of this initiative in the context of global energy market disruptions. The company stated, “This [B-12-24P] platform has been successfully commissioned and gas sent to Hazira Plant.” Furthermore, they indicated that production from all wells will be ramped up in a phased manner.
At peak output, the Daman project could account for roughly 61.38% of India’s annual gas imports for FY26, marking a transformative shift in the nation’s energy landscape. The Daman Upside Development Project aims to bolster India’s self-sufficiency in natural gas, a goal that has become increasingly vital amid fluctuating global energy prices.
As ONGC continues to ramp up production, the implications for India’s energy strategy are profound. The Daman project not only represents a significant investment in domestic energy resources but also a strategic move towards greater energy independence.
While the initial production phase is underway, details remain unconfirmed regarding the timeline for reaching full operational capacity. The coming months will be critical as ONGC navigates the complexities of production scaling and market integration.
In summary, the launch of gas production at the Daman project is a hopeful development for India, promising to reshape the country’s energy future and reduce its vulnerability to global supply chain disruptions.
