Falling output from Reliance-BP’s KG-D6 fields is weighing on India’s overall natural gas production.
The block’s 8 per cent annual decline in the first half of the fiscal year, along with a 2 per cent drop from ONGC’s fields, dragged national output by 3 per cent, according to oil ministry data and Reliance Industries’ presentation.
Average KG-D6 gas production slipped to 26.1 million metric standard cubic meters per day (mmscmd) in the July-September quarter from 28.5 mmscmd a year earlier. A slight rise in gas prices partly offset the lower volumes, but RIL’s upstream operating profit still fell 5.4 per cent to ₹5,002 crore in the second quarter.
Gas output from private-sector fields dropped 5.5 per cent to 6,776 mmscm (37 mmscmd) in April-September, compared with 7,176 mmscm (39.2 mmscmd) a year ago. ONGC’s production declined 2 per cent to 9,216 mmscm, while Oil India’s rose 1 per cent to 1,593 mmscm. Overall, India’s total output fell 3 per cent to 17,585 mmscm.
National gas production had surged 19 per cent in 2021-22 after RIL-BP’s new KG-D6 discoveries came onstream, and grew further in 2022-23 and 2023-24. But it began to slip-by 1 per cent-in 2024-25, with a steeper fall expected this year.
Domestic consumption also weakened by 7 per cent, driving down LNG imports-which meet about half of India’s gas demand-by 11 per cent to 16,906 mmscm in the current fiscal year. Total gas consumption fell 7 per cent to 34.3 BCM.
India aims to raise the share of natural gas in its energy mix to 15 per cent by 2030 from the current 6.5 per cent, as part of its twin push to boost domestic production and reduce oil dependence.
