BP and Reliance Industries (RIL) today announced the sanctioning of the 'Satellite cluster' project in Block KG D6. The companies are moving forward to develop the Block’s discovered deep-water gas fields in an integrated series of projects, bringing new gas production for India.

The 'Satellite cluster' is the second of three projects in the Block KG D6 integrated development. The first of the projects, development of the 'R-Series' deep-water gas fields, was sanctioned in June 2017. Together the three projects will develop a total of about 3 trillion cubic feet of discovered gas resources with a total investment of ~ Rs 400 billion (USD 6 billion). They are expected to bring a total ~ 30-35 million cubic metres (1 billion cubic feet) of gas a day new domestic gas production onstream, phased over 2020-2022.

Mukesh Ambani, Chairman and Managing Director of RIL, said, ''In consonance with our announcements last year to raise domestic gas production, we are delighted to announce the on-schedule progress of the Satellite cluster in the east coast of India. This development supports the country's imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy.''

Shares of the company gained Rs 3.75, or 0.4%, to trade at Rs 940.75. The total volume of shares traded was 207,565 at the BSE (1.31 p.m., Thursday).