Reliance, BP to move ahead with new Krishna-Godavari Basin gas project

India oil and gas news : Reliance Industries and its partner BP in the Block KG D6 have sanctioned a new project to draw more gas from India’s Krishna-Godavari Basin by developing the MJ gas field.

Dubbed as the MJ gas project, the offshore development is the third project to be undertaken by Reliance Industries and the British oil and gas giant BP in the Krishna-Godavari Basin with an overall investment of INR 35,000cr.

Located off the east coast of the country, the MJ gas condensate field is contained in water depths of 700-1100m with 4200m of well depth below mean sea-level.

The other two offshore gas projects undertaken by the partners in the Krishna-Godavari Basin are the R-Series deep-water gas field and the Satellites cluster development. Overall the three offshore gas projects in India are aimed at exploiting close to three trillion cubic feet (tcf) of discovered gas resources as per the latest India oil and gas news.

Mukesh Ambani’s Reliance Industries and BP sanction the third Krishna-Godavari Basin gas project. Photo courtesy of World Economic Forum from Cologny, Switzerland/Wikipedia.org.

Commenting on the new gas project in the Krishna-Godavari Basin, Mukesh Ambani – Chairman and Managing Director of Reliance Industries, said: “Bringing these three discoveries to production, as promised in 2017, by leveraging the existing infrastructure has been the primary objective of the Reliance – BP Joint Venture.

“The gas will satiate the increasing demand for clean fuel in the country, save foreign exchange and reduce dependency on imported gas.”

Upon being brought into production, the Indian gas projects will yield approximately a billion cubic feet a day of new domestic gas with commissioning to be spread between 2020 and 2022. The MJ gas project is targeted to begin production in mid-2022.

The new Krishna-Godavari Basin gas project will see linking of wells at the MJ gas field to a subsea production that will be tied back to a floating production storage and offloading (FPSO) vessel, which will carry out processing and separation of liquids, and gas. The gas produced from the MJ gas project will be transported to the onshore terminal through an existing 24″ trunk pipeline.

Bob Dudley – Chief Executive of BP Group, commenting on the new gas project in the Krishna-Godavari Basin, said: “We are building an important upstream business in India, helping to supply the country’s growing gas market. Working closely with Reliance, we are efficiently developing discovered resources, with focused exploration to give options for the future.

“This latest investment is a further demonstration of BP’s commitment to India and helps support India in addressing the dual challenge and moving to a low carbon future.”

For more India oil and gas news and updates on the new Krishna-Godavari Basin gas project – that is the MJ gas project, keep following Business News Today.