In the 45th annual general meeting (AGM), Reliance Industries chairman Mukesh Ambani on Monday said KG-D6 will contribute ~30% of India’s gas production. He was addressing RIL's 45th annual general meeting for shareholders, investors, and others. Ambani congratulated its Oil and Gas team for a spectacular turnaround, with production jumping 9x and revenues crossing $1 billion. At present, KG-D6 is contributing 20% of India's domestic gas production.
While addressing in the AGM, Ambani said, "Let me congratulate our Oil & Gas team for a spectacular turnaround, with production jumping nine times and revenues crossing a billion dollars."
Ambani highlighted that with 19 million standard cubic meters per day of production in ultra-deep water fields, KG-D6 is contributing 20% of India's domestic gas production.
Going forward, Ambani said, "With the commissioning of the MJ Field by end-2022, KG-D6 will increase its contribution to nearly 30% of India's gas production."
Last year, in April, supermajor bp had stated RIL and bp have been developing three deep-water gas developments in block KG D6 – R Cluster, Satellite Cluster, and MJ – which together are expected to produce around 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15% of India’s gas demand.
Notably, the developments will each utilize the existing hub infrastructure in the KG D6 block. RIL is the operator of the block with a 66.67% participating interest and bp holds a 33.33% participating interest.
The third KG D6 development, MJ, is expected to come on stream by end of December 2022.
According to Ambani, this will help meet India's growing demand indigenously, leading to import savings of nearly $9 billion/ annum. Natural gas is a major source of clean and affordable energy for India, particularly in times of significant global energy crisis.
In Q1FY23, in oil and gas business, the company's revenue increased by 183.0% yoy to ₹3,625 crore. Segment EBITDA sharply increased to ₹2,737 crore. This was primarily due to improved gas price realization in KG D6 and CBM, and higher production in KG D6.
Notably, KGD6 Gas production during 1Q FY23 was at 40.6 BCF (RIL’s share) vis-à-vis 33.1 BCF (RIL’s Share) in 1Q FY22. The average gas price realized for KGD6 was $ 9.72/MMBTU in 1Q FY23 vs $3.62/MMBTU in 1Q FY22. CBM gas production was at 2.4 BCF in 1Q FY23 vis-à-vis 2.7 BCF in 1Q FY22. Gas price realized for CBM was higher at $22.48/MMBTU(GCV) almost 3.75x of realized prices in 1Q FY22.
During the AGM, Ambani also announced new energy business as the newest growth engine for the company. RIL aims to establish and enable at least 100GW of solar energy by 2030. It has announced to set up new Giga Factory for Power Electronics.
Further, to boost Oil to Chemicals business, Ambani announced an investment of ₹75,000 crore in expanding capacities in existing and new value chains.
Reliance has commenced its journey to become net carbon zero by 2035 with a set of concrete actions.
Mukesh Ambani says, KG-D6 to contribute 30% of India's gas production | Mint - Mint
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