ONGC Launches Gas Monetisation from Daman Project, Bolstering India’s Energy Ambitions
- MGMMTeam
- Mar 30
- 3 min read
India’s leading public sector energy company, Oil and Natural Gas Corporation, has achieved a major milestone by commencing gas monetisation from its Daman Upside Development Project (DUDP). This marks an important step in strengthening the country’s domestic energy ecosystem at a time when global energy uncertainties continue to challenge supply chains.
The gas extracted from offshore fields is now being transported to the Hazira Gas Processing Complex in Hazira, where it will be processed and supplied for industrial and commercial use. The development reflects a broader push to enhance India’s energy self-sufficiency and reduce dependence on imported fuels.
The Strategic Importance of the Daman Upside Development Project
The Daman Upside Development Project is located in the Tapti-Daman block off India’s western coast in the Arabian Sea. It is part of ONGC’s long-term strategy to increase production from mature offshore fields by unlocking untapped reserves and improving extraction efficiency.
The project involves complex offshore engineering, including the installation of wellhead platforms, subsea pipelines, and advanced production systems. Major infrastructure contracts have been executed by companies such as Larsen & Toubro, which has played a key role in building offshore platforms and pipeline networks.
With large-scale investment backing the initiative, the Daman project is expected to deliver substantial output once fully operational. Its development underscores India’s commitment to leveraging its existing hydrocarbon assets more effectively.
From Offshore Fields to Onshore Processing
A critical aspect of the project is the seamless transportation of extracted gas to the Hazira processing facility. The Hazira Gas Processing Complex is one of ONGC’s most important onshore assets, designed to handle and refine raw natural gas from offshore sources.
At Hazira, the gas undergoes multiple stages of treatment, including impurity removal, dehydration, and separation of valuable by-products such as liquefied petroleum gas (LPG). This process ensures that the gas meets required quality standards before being supplied through pipelines to industries and consumers.
The integration of offshore production with established onshore infrastructure allows for efficient monetisation and optimal utilisation of resources, reducing wastage and operational delays.
Strengthening India’s Energy Security
The commencement of gas monetisation from the Daman project comes at a crucial time when India is actively seeking to diversify its energy sources and enhance domestic production. Natural gas is increasingly being seen as a cleaner alternative to traditional fossil fuels, playing a vital role in the country’s transition toward a more sustainable energy mix.
The government has set an ambitious target to increase the share of natural gas in India’s energy consumption in the coming years. Projects like Daman are essential to achieving this vision, as they contribute directly to increasing domestic supply and reducing reliance on imported liquefied natural gas.
By bringing new production streams online, ONGC is not only boosting its own output but also supporting national energy goals and industrial growth.
Part of a Broader Expansion Strategy
The Daman Upside Development Project is one among several initiatives being undertaken by ONGC to expand its production capabilities. The company is investing heavily in both offshore and onshore exploration projects across the country, including developments in the Krishna-Godavari Basin and other hydrocarbon-rich regions.
These efforts reflect a broader strategy to modernise infrastructure, revive aging fields, and harness new reserves. By doing so, ONGC aims to maintain its position as the backbone of India’s oil and gas sector while adapting to evolving energy demands.
The MGMM Outlook
The launch of gas monetisation from the Daman Upside Development Project by Oil and Natural Gas Corporation reflects a decisive push toward strengthening India’s domestic energy backbone at a time of global volatility. By operationalising offshore reserves and linking them efficiently to the Hazira Gas Processing Complex, the development signals a shift from mere exploration to effective utilisation. This move not only enhances supply reliability for industries but also reinforces the country’s intent to reduce import dependency, positioning natural gas as a key transition fuel in India’s evolving energy mix.
The Daman project also highlights a broader strategic direction—maximising output from existing assets while investing in advanced infrastructure and engineering capabilities. Collaborations with major players like Larsen & Toubro underline the scale and technical complexity involved, showcasing India’s growing competence in handling sophisticated offshore operations. As similar initiatives expand across regions like the Krishna-Godavari basin, such developments are set to play a critical role in driving industrial growth, improving energy security, and aligning with long-term sustainability goals without compromising economic momentum.
(Sources: OpIndia, ET EnergyWorld, NDTV Profit)
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