In Short:
State-run ONGC and Indian Oil signed an MoU to set up an LNG plant near the Hatta gas field in Madhya Pradesh. This will upgrade the Vindhyan Basin’s status and reduce carbon emissions in line with India’s climate goals. ONGC aims to monetize assets in the Hatta area to increase India’s LNG production and decrease imports. Talks with Equinor are also ongoing for long-term LNG deals to enhance energy security.
ONGC and Indian Oil Join Hands for a Greener Future!
Breaking news from New Delhi! Our very own **State-run ONGC** and **Indian Oil Corporation Ltd (IOCL)** have teamed up and signed a memorandum of understanding (MoU) to establish a small liquefied natural gas (LNG) plant near the Hatta gas field in the Vindhyan basin located in Madhya Pradesh.
Boosting Vindhyan Basin’s Status
Exciting times ahead as this collaboration will elevate the Vindhyan Basin’s position from a Category II to a prestigious Category I Basin, as stated by ONGC.
A Cleaner, Greener World
The future is green with the upcoming Hatta LNG plant set to use advanced technology to produce LNG, a cleaner alternative to traditional fossil fuels. This move will not only reduce carbon emissions but also align with India’s climate change mitigation goals.
Striving for Energy Independence
With the discovery at Hatta marking the culmination of five decades of relentless exploration efforts, ONGC has already submitted its field development plan (FDP) to the Directorate General of Hydrocarbons (DGH) to capitalize on its assets in the Hatta area.
Driving India’s Energy Production
These efforts are in line with India’s aim to increase LNG production, ultimately leading to a decrease in imports. In FY24, India imported LNG worth $13.40 billion. In the current financial year, LNG imports have reduced to $2.2 billion, compared to $3.2 billion during the same period last fiscal year.
In FY24, ONGC reported its highest-ever consolidated net profit of ₹57,101 crore. The state-run energy major’s crude-oil production in the January-March quarter of FY24 increased by 2.4%, while gas production saw a slight decrease of 3%.
Strategic Partnerships for Energy Security
India is also in discussions with Norwegian energy giant Equinor for long-term LNG deals to bolster its strategic petroleum reserves (SPR) and enhance energy security. Negotiations are progressing for the supply of liquified natural gas (LNG) from Equinor’s vast portfolio in the US and Qatar.
If successful, this partnership will mark a significant step towards strengthening India’s energy security, especially in the backdrop of production cuts by OPEC and its allies.
Stay tuned for more updates on this groundbreaking collaboration between ONGC, Indian Oil, and Equinor as we pave the way towards a sustainable and secure energy future!
