ONGC Begins Gas Production from USD 1 Billion Daman Project

Oil and Natural Gas Corporation (ONGC) has begun gas production from the USD 1 billion Daman project, marking a major step in boosting India’s domestic energy output.

The ONGC Daman gas production started on March 29, 2026, with gas already being transported to the Hazira processing plant in Gujarat.

The offshore project, located in the Arabian Sea about 180 km northwest of Mumbai, is part of ONGC’s efforts to increase local supply and reduce reliance on imports. The Daman Upside Development Project (DUDP) is expected to produce around 21.5 billion cubic meters of gas over its lifetime, with peak output projected at nearly 5 million standard cubic meters per day.

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Built with four wellhead platforms and a 140-km subsea pipeline network, the project was completed in under two years, which is considered fast for offshore developments. The company has begun monetizing output immediately, signaling a quick transition from investment to revenue generation.

The ONGC Daman gas production will ramp up in phases as more wells come online. This gradual increase is expected to strengthen supply stability, especially at a time when global energy markets remain volatile.

This development is significant for India’s energy security strategy. By increasing domestic production, ONGC aims to reduce exposure to fluctuating global fuel prices and support steady gas availability for industries and households.

With production now underway, the Daman project is set to play a key role in meeting rising energy demand while reinforcing ONGC’s position in India’s oil and gas sector.