What does the commencement of gas production by ONGC from the Daman Upside Development Project in the Arabian Sea mean for India? It signifies a crucial step towards reducing the nation’s dependence on imported natural gas, a need that has become increasingly pressing amid global energy market disruptions.
On March 30, 2026, ONGC officially launched gas production from its Daman project, located approximately 180 kilometers northwest of Mumbai. The gas is currently being extracted from Platform B-12-24P and is being transported to the Hazira Plant for processing.
The Daman project is projected to produce an impressive 21.5 billion cubic metres (BCM) of natural gas over its operational lifecycle. This output could offset around 73.66% of the 29.185 billion cubic metres of natural gas that India imported during the first ten months of the fiscal year 2026.
Such a substantial increase in domestic gas production could account for roughly 61.38% of India’s annual gas imports for FY26, marking a significant shift in the country’s energy landscape. The investment of approximately $1 billion by ONGC in this project underscores its commitment to enhancing India’s energy security.
ONGC representatives have expressed confidence in the project, stating, “This [B-12-24P] platform has been successfully commissioned and gas sent to Hazira Plant.” They also indicated that production from all wells will be ramped up in a phased manner, suggesting a strategic approach to maximizing output.
The Daman Upside Development Project not only aims to bolster domestic gas supply but also represents a broader strategy to mitigate the impacts of fluctuating global energy prices on India’s economy. As the nation grapples with the challenges of energy imports, initiatives like Daman are pivotal.
As this project unfolds, the energy sector will be closely monitoring its progress and output levels. The implications of this development extend beyond immediate production figures, potentially reshaping India’s energy policy and import strategies for years to come.
While the initial production phase has commenced, details remain unconfirmed regarding the full ramp-up schedule and long-term sustainability of output. Observers will be keen to see how ONGC navigates these challenges in the coming months.
