ONGC & IOC Partner for LNG Plant in MP

New Delhi, Jun 21 (PTI) State-owned Oil and Natural Gas Corporation and Indian Oil Corporation have signed an agreement to set up a small-scale liquefied natural gas plant near the Hatta gas field in Madhya Pradesh.

The memorandum of understanding (MoU) was signed on June 17, Oil and Natural Gas Corporation (ONGC) said in a statement.

It has a gas discovery in the Vindhyan basin. Gas from it will be converted into liquefied natural gas (LNG) for transportation by trucks to consumers.

"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," it said.

India's sedimentary basins, covering a total area of 3.4 million square kilometres, are divided into three categories -- Category-I - which has hydrocarbon reserves and already producing; Category-II that have contingent resources pending commercial production, and Category-III with prospective resources awaiting discovery.

"The plant will utilise cutting-edge technology to produce LNG, a cleaner alternative to traditional fossil fuels, significantly reducing carbon emissions and aligning with India's climate change mitigation goals," ONGC said.

The discovery at Hatta, ONGC said, represents the culmination of five decades of sustained exploration efforts.

"ONGC has already submitted its field development plan (FDP) to the Directorate General of Hydrocarbons (DGH) to monetise its assets in the Hatta area," the statement said.

The 'non-binding MoU' for a technology demonstration small-scale LNG plant at Hatta, Madhya Pradesh between ONGC and Indian Oil Corporation (IOC) is a step towards a sustainable future, it added.

"As the nation advances on its path to energy self-sufficiency, the Hatta LNG plant will stand as a symbol of innovation, collaboration, and unwavering commitment to a greener tomorrow.