ONGC, IndainOil plan small scale LNG plant in central India

Indian state-owned energy companies ONGC and IndianOil Corporation (IOCL) have signed a memorandum of understanding (MoU) to establish a small-scale LNG plant near the Hatta gas field in the Vindhyan basin in the central Indian state of Madhya Pradesh, ONGC announced on June 21.

The establishment of the Hatta LNG plant will enhance the Vindhyan Basin's status, upgrading it from a Category II to a Category I basin, according to ONGC. "The discovery at Hatta represents the culmination of five decades of sustained exploration efforts. ONGC has already submitted its field development plan to the Directorate General of Hydrocarbons (DGH) to monetise its assets in the Hatta area,” the company stated.

India heavily relies on LNG imports to meet a significant portion of its domestic gas demand, with LNG accounting for nearly half of the country's total gas consumption. The Hatta plant will help the country augment the supply of locally produced gas. The South Asian nation is aiming to increase the share of gas in its energy mix to 15%, up from the current 6-7%.