ONGC And IOC Join Hands To Establish LNG Plant In Madhya Pradesh

State-owned Oil and Gas Corporation(ONGC) and Indian Oil Corporation (IOC) have signed an agreement to set up a small-scale liquefied natural gas (LNG) plant near the Hatta Gas Field in Madhya Pradesh.

About the Companies:

Indian Oil Corporation (IOC) is a public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Govt. of India. The PSU’s business interests overlap the entire hydrocarbon value chain, including refining, Pipeline, marketing of petroleum products, exploration and production of Petroleum, natural gas, and petrochemicals. The ONGC is also a central PSU owned and operated by the Ministry of Petroleum and Natural Gas. It is the largest government-owned oil and gas explorer and producer in the country and produces around 70 percent of India’s domestic production of crude oil and around 84 percent of natural gas. 

Reason for the Collaboration:

The venture represents a testament to the power of the nation’s leading energy corporations. It also serves as a milestone for India’s journey towards sustainable energy by achieving self-sufficient energy for India.

Embodiment of the LNG Plant:

The Hatta LNG plant aims to convert Natural Gas into LNG, facilitating its transportation by trucks to consumers. It is a step towards modernizing the Vindhyan Basin’s energy resources and elevates the Vindhyan Basin’s classification from a Category II to a Category I Basin. Basins in India are categorized based on their hydrocarbon potential, with Category I basins being those that are in the production line of hydrocarbon reserves. The Hatta LNG plant employs advanced technology to produce LNG, offering an environment-friendly alternative to conventional fossil fuels. This aligns with the nation’s objective to mitigate climate change by reducing carbon emissions. ONGC further highlighted that the project resulted from 5 years of exploration efforts. The establishment of this plant embraces cleaner and more sustainable energy sources for a greener tomorrow.

How did this happen?

Firstly, the ONGC took concrete steps towards realizing this vision by submitting its field development plan (FDP) to the Directorate General of Hydrocarbons (DGH), aiming to monetize the Hatta area. Then, the collaboration between ONGC and IOC became formalized through a Memorandum of Understanding (MoU) signed on 17 June, marking a pivotal step towards utilizing the gas discovery in the basin for cleaner and sustainable energy production.

Conclusion: This collaboration marks a significant attribution to India’s dedication to embracing cleaner and more sustainable energy sources for a greener tomorrow.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.