Image Credits Mike Mareen / visual for illustration purpose
1 minute read

ONGC and Indian Oil to Establish Small-Scale LNG Plant at Hatta

India’s state-run ONGC and Indian Oil have signed a memorandum of understanding (MoU) to establish a small-scale liquefied natural gas (LNG) plant near the Hatta gas field in the onshore Vindhyan Basin.

According to a statement by ONGC, the two firms signed the non-binding MoU on June 17.

ONGC stated that the establishment of the Hatta LNG plant will “significantly enhance the Vindhyan Basin’s status, upgrading it from a Category II to a Category I Basin.”

The plant will utilize “cutting-edge technology” to produce LNG, a cleaner alternative to traditional fossil fuels, thereby reducing carbon emissions and aligning with India’s climate change mitigation goals.

ONGC did not disclose any additional details regarding the planned small-scale LNG facility in Madhya Pradesh.

The firm highlighted that the discovery at Hatta represents the culmination of five decades of exploration efforts. ONGC has already submitted its field development plan to the Directorate General of Hydrocarbons (DGH) to monetize its assets in the Hatta area.

Indian Oil, in a separate social media post, stated that under this “first-of-its-kind agreement,” the two firms will monetize untapped small natural gas fields located away from conventional natural gas pipelines.

This agreement aims to establish small-scale liquefaction plants to convert gas into LNG, which will then be supplied to customers by LNG road tankers.

Currently, India imports LNG via seven facilities with a combined capacity of about 47.7 million tonnes. These facilities include Petronet LNG’s Dahej and Kochi terminals, Shell’s Hazira terminal, and the Dabhol LNG, Ennore LNG, Mundra LNG, and Dhamra LNG terminals.

India’s Hindustan Petroleum, a unit of ONGC, is also set to launch its Chhara LNG import terminal in Gujarat later this year.

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