NEW DELHI: Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), both state-owned companies, have agreed to build a small-scale liquefied natural gas (LNG) plant near the Hatta gas field in Madhya Pradesh. This agreement, known as a memorandum of understanding (MoU), was signed on June 17, ONGC announced in a statement.
Gas Discovery in Vindhyan Basin
ONGC has discovered gas in the Vindhyan basin, and this gas will be turned into LNG at the new plant for easy transportation by trucks to different users.
Upgrading Basin Classification
According to ONGC, the Hatta LNG plant will boost the Vindhyan Basin’s classification from a Category II to a Category I Basin. India categorises its 3.4 million square kilometres of sedimentary basins into three types:
- Category-I: These basins have hydrocarbon reserves and are already producing.
- Category-II: These have resources that are yet to start commercial production.
- Category-III: These are prospective basins awaiting discovery.
Focus on Cleaner Energy
The plant will use advanced technology to produce LNG, which is a cleaner fuel than traditional fossil fuels. This will help reduce carbon emissions and support India’s goals to combat climate change, ONGC said.
Years of Exploration
The gas discovery at Hatta is the result of 50 years of exploration. ONGC has already submitted its field development plan to the Directorate General of Hydrocarbons (DGH) to start utilising its assets in the Hatta area.
Commitment to Sustainability
The MoU between ONGC and IOC for a small-scale LNG plant at Hatta is a step towards a sustainable future. This plant symbolises innovation and a strong commitment to a greener tomorrow, ONGC added. As India continues its journey towards energy self-sufficiency, the Hatta LNG plant will be a key part of this progress.
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