How the Daman Project Will Cut India’s Gas Imports
Project Location and Timeline
ONGC started gas production from the Daman Upside Development Project on March 29 2026. The offshore site lies about 180 kilometres north‑west of Mumbai and roughly 80 kilometres south of Pipavav in Gujarat. According to the company, the project was completed in less than two years from the award date. Source 2 reports that the milestone was reached by flowing gas from Platform B‑12‑24P to the Hazira plant.
Production Targets
The Daman asset is expected to produce 21.5 billion cubic metres of gas over its life. This output will come from four new wellhead platforms, including Platform B‑12‑24P, and about 140 kilometres of pipelines that will carry the gas to Hazira. ONGC says the project can reach a peak flow of around 5 million standard cubic metres per day, though current flow rates have not been disclosed publicly. Source 3 confirms the 21.5 billion m³ target and the phased ramp‑up plan.
Import Trends and Reduction Potential
India’s liquefied natural gas (LNG) imports have been rising steadily. In the first ten months of fiscal year 2026, imports totalled 29.185 billion cubic metres, with monthly figures ranging from 2.663 billion to 3.233 billion cubic metres. Source 1 shows that the Daman project’s full output could offset more than 70 billion cubic metres of imports annually, which is a large share of the country’s total demand.
To illustrate the magnitude, the monthly import numbers can be summarised as follows:
- 2.778 billion m³
- 2.865 billion m³
- 2.754 billion m³
- 2.872 billion m³
- 2.912 billion m³
- 3.233 billion m³
- 3.239 billion m³
- 2.663 billion m³
- 3.044 billion m³
- 2.825 billion m³
These figures demonstrate that even a single large offshore field can meaningfully reduce the volume of imported LNG.
Strategic Significance
The Daman project strengthens India’s domestic energy supply at a time of global market volatility, especially amid the US‑Iran tensions that affect oil and gas prices. By monetising gas from Platform B‑12‑24P, ONGC begins a new source of revenue and helps stabilise energy security for the nation. The company plans to increase production from all wells in a phased manner, which will gradually increase the share of domestically produced gas in the national mix.
In summary, the Daman Upside Development Project is set to play a crucial role in lowering India’s reliance on imported gas, supporting economic growth, and providing a buffer against international energy shocks. The success of this project could serve as a model for future offshore developments across the country.
Economic and Strategic Impact of the Daman Gas Monetisation
Boost to Domestic Supply
The start of gas flow from the Daman Upside Development Project adds a new source of domestic gas that can be used for power generation, industry, and household needs. ONGC’s filing confirms that production began on March 29 2026 and is already being moved to the Hazira processing hub. This extra volume reduces the amount of gas that India must import from abroad, helping to stabilise prices for consumers. The project’s location, about 180 km northwest of Mumbai, also brings production closer to major demand centres along the western coast.
Alignment with National Energy Policy
The government’s Open Acreage Licensing Policy (OALP) continues to open large tracts of offshore land for exploration, and the Daman project illustrates how private investment can complement public policy. As the Union Minister highlighted on X, the milestone supports the vision of fast‑tracking bids and expanding energy acreage. By contributing to the national goal of lowering import dependence, the project reinforces India’s strategy of building a self‑sufficient hydrocarbon base. This alignment also encourages further investment in offshore technologies that can be replicated in other basins.
Investment and Job Creation
The Daman project required an estimated capital outlay of several hundred million dollars and was completed in under two years from award. Key benefits include:
- Creation of skilled jobs for drilling, engineering, and operations teams.
- Stimulation of local suppliers who provide materials and services.
- Generation of tax revenue that supports regional development.
Long‑Term Consumer Benefits
When domestic gas supplies increase, the pressure on import markets eases, which can lead to more stable pricing for end‑users. Over time, the added production capacity may allow India to export surplus gas to neighbouring regions, further enhancing energy security. Consumers will ultimately benefit from a more resilient supply chain that is less vulnerable to global price swings.
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