ONGC, IOCL Sign Partnership Deal for LNG Plant in Madhya Pradesh

Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOCL) have signed an agreement to set up a liquefied natural gas (LNG) plant near the Hatta gas field in Madhya Pradesh. The memorandum of understanding (MoU) signed on 17 June, 2024, is a step towards a sustainable future.

The move will significantly enhance the status of Vindhyan Basin discovered by ONGC, by upgrading it from a Category-II to a Category-I basin, which denotes that it has hydrocarbon reserves and already producing.

The plant would utilize cutting-edge technology to produce LNG, as a major way to reduce carbon emissions and to align with climate change mitigation goals of the country. Gas will be converted into liquefied natural gas (LNG) for transportation by trucks to consumers.

The discovery at Hatta represents five decades of sustained exploration efforts, and would give commercial credibility to the Vindhyan basin. ONGC has already submitted its field development plan (FDP) to the Directorate General of Hydrocarbons (DGH) to monetize its assets in the area.

India's sedimentary basins, covering a total area of 3.4 million sq. km, are divided into Category- I, II and Category-III.