“ONGC, Indian Oil Collaborate on LNG Plant Near Hatta Gas Field”

ONGC and Indian Oil have joined forces to establish a small-scale Liquefied Natural Gas (LNG) plant near the Hatta Gas Field in the Vindhyan Basin. This partnership, formalized through a memorandum of understanding (MoU) signed on June 17, 2024, aims to upgrade the Vindhyan Basin’s status from Category II to Category I, according to ONGC’s press statement.

The Hatta LNG plant will leverage advanced technology to produce LNG, offering a cleaner alternative to conventional fossil fuels. This move aligns with India’s objectives for climate change mitigation, as LNG significantly reduces carbon emissions.

The background of this collaboration lies in ONGC’s extensive exploration efforts spanning five decades, culminating in the discovery at Hatta. ONGC has already submitted its Field Development Plan (FDP) to the Directorate General of Hydrocarbons (DGH) to commercialize its assets in the Hatta area.

The decision to commercialize the Hatta-3 gas discovery in the Son Valley area of Madhya Pradesh was made in March 2022, following successful tests that demonstrated significant gas production rates. This development marks India’s ninth producing basin and the eighth for ONGC.

In parallel, the Indian government is engaged in discussions with Norwegian energy giant Equinor to enhance India’s energy security. Talks include Equinor’s potential participation in India’s strategic petroleum reserves (SPR) and long-term LNG supply agreements leveraging Equinor’s assets in the US and Qatar.

These efforts are crucial amid ongoing production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, which have strained global supply chains. As the world’s third-largest energy consumer, India prioritizes initiatives that bolster its energy security and sustainability goals.

Sources By Agencies

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