ONGC Begins Gas Production in Arabian Sea To Address National LPG Shortage

Mumbai, April 2: In a major step toward domestic energy security, the state-run Oil and Natural Gas Corporation (ONGC) has officially commenced commercial gas production from its Daman Upside Development Project (DUDP) in the Arabian Sea. The move comes at a critical time for the Narendra Modi government, as India grapples with a tightening supply of Liquefied Petroleum Gas (LPG) caused by ongoing geopolitical instability in West Asia. By tapping into these offshore reserves, the government aims to reduce its heavy reliance on energy imports and stabilise a volatile domestic fuel market.

Production Milestone and Infrastructure

The gas flow originated from the B-12-24P platform, which was successfully commissioned on March 29. Located approximately 180 kilometres northwest of Mumbai and 80 kilometres south of Pipavav, the offshore facility is now funnelling raw gas to the Hazira processing plant in Gujarat. Gas Cylinder Price Today, April 1, 2026: Check Commercial LPG Prices in Delhi, Mumbai, Chennai and Other Cities.

Company officials confirmed that the project was completed in under two years - a record timeframe for an offshore development of this scale. This rapid execution was attributed to the use of innovative "Drill-Deck" construction methods, which allowed for faster installation of the platform infrastructure compared to traditional subsea engineering.

Strategic Investment and Scale of DUDP Project

The DUDP represents a USD 1 billion investment by ONGC, aimed at monetising previously untapped reserves in the Western Offshore region. While the current output marks the initial phase of gas monetisation, the corporation plans to ramp up production across all associated wells in a phased manner over the coming months. This project is part of a broader national strategy to boost the share of natural gas in India's energy mix. Currently, India imports nearly 50 per cent of its natural gas requirements, leaving the economy vulnerable to international price spikes and supply chain disruptions.

Addressing the West Asia Supply Crisis

The timing of the production launch is significant as India faces an LPG supply crunch. The ongoing conflict in West Asia has disrupted traditional shipping routes and increased procurement costs for crude oil and LPG, both of which India imports heavily from the region. Industry analysts suggest that increasing domestic gas production will provide a much-needed buffer for state-run oil marketing companies. By utilising indigenous gas for LPG production at plants like Hazira, the government hopes to maintain a steady supply of cooking fuel for millions of households under the Ujjwala scheme. Kerala Assembly Elections 2026: BJP Promises 2 Free LPG Cylinders per Year in Manifesto; Rahul Gandhi Alleges PM Narendra Modi ‘Controlling’ Kerala CM.

India's Push for 'Atmanirbhar' Energy

For over a decade, India has sought to decrease its dependence on the "energy corridor" of the Middle East. While total energy independence remains a long-term goal, projects like DUDP are seen as essential "bridge" developments. By utilising advanced engineering to extract resources from the Arabian Sea, ONGC is helping to insulate the Indian consumer from the direct impact of foreign wars. This latest development underscores a pivot toward a more self-reliant energy infrastructure, ensuring that basic necessities like cooking gas remain accessible despite global instability.

(The above story first appeared on LatestLY on Apr 02, 2026 09:24 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).