The companies are mutually creating three gas fields in the seaward KG-D6 block. Of these, the R Cluster field — which is anticipated to arrive at level gas creation of about 12.9 million standard cubic meters per day (mscmd) in 2021 — presently turns into the first project to come on the web.
The R Cluster, situated at a depth of over two kilometres, is Asia's deepest offshore gas field. In June 2017, the project was sanctioned. In April 2018 and June 2019, the other two fields developed in the KG D6 block, the Satellites Cluster and MJ project, were launched.
By 2023, the three blocks, involving an investment of about Rs 35,000 crore, are projected to cumulatively generate 30 mscmd, representing a quarter of the domestic gas output of the country. Around 51 percent of the country's requirements are fulfilled by indigenous natural gas production. Domestic natural gas output dropped 2.8 percent year-on-year (y-o-y) to 85.5 mscmd in FY20, reversing the growth pattern reported since FY18, with oil and gas supply being increasingly unviable for energy firms. In the period from April to October, domestic natural gas output dropped 12.2 percent y-o-y to 16,373 million standard cubic metres, as operations became increasingly unviable for nomination fields with the government lowering sale rates.