RIL and its partners BP plc of the UK and Canada’s Niko Resources plan to produce about 13 million standard cubic metres per day (mmscmd) of gas for 13 years from the D-34 discovery, known as R-Cluster, in the KG-D6 block by 2017-18.

The planned output from D-34, which is estimated to hold an in place gas reserve of 2.2 trillion cubic feet, is equivalent to the combined current production from Dhirubhai-1 and 3 (D1&D3) gas field and MA field in the KG-D6 block.

In a presentation to investors after announcing its second quarter results, RIL said it has completed the Front End Engineering Design (FEED) as well as geo-mechanical studies for the R-Cluster development, but “clarity on gas price (is) required for FID (final investment decision)”.

The Centre is expected to announce its decision relating to higher gas prices by November 15. Last month, it had for the third time deferred a decision on the matter.

A panel appointed by the previous UPA government had proposed a formula which would have at least doubled the natural gas rates. However, this is under review with the new government looking at moderating the increase to keep the burden on consuming power and fertiliser industries minimal.

RIL estimates that output from KG-D6 can reach up to 60mmscmd by 2019 when all of the satellite fields are put into production. The government has already approved $1.5 billion investment in four satellite fields that can produce 10mmscmd.

During the second quarter, gas production at KG-D6 declined 4 per cent on a sequential basis to 12.5mmscmd.