ONGC and Indian Oil plan Hatta small-scale LNG plant

India’s state-run ONGC and Indian Oil have signed a memorandum of understanding 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 said 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, reducing carbon emissions and aligning with India’s climate change mitigation goals, it said.

ONGC did not reveal any additional details regarding the planned small-scale LNG facility in India’s Madhya Pradesh.

The firm said 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 said in a separate social media post 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, converting gas into LNG and supplying it to customers by LNG road tankers, Indian Oil said.

At the moment, India imports LNG via seven facilities with a combined capacity of about 47.7 million tonnes.

These include Petronet LNG’s Dahej and Kochi terminals, Shell’s Hazira terminal, and the Dabhol LNG, Ennore LNG, Mundra LNG, and Dhamra LNG terminal.

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

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