ÑDz©ÌåÓý¹ÙÍøÊ×Ò³

ONGC to Establish Mini-LNG Plants to Utilize Stranded Natural Gas
OIL & GAS

ONGC to Establish Mini-LNG Plants to Utilize Stranded Natural Gas

State-owned Oil and Natural Gas Corporation (ONGC) is embarking on a project to set up mini-LNG (liquefied natural gas) plants aimed at evacuating natural gas from wells in regions that lack pipeline connectivity. The initiative targets five sites across Andhra Pradesh, Jharkhand, and Gujarat, where mini plants will be established at wellheads to convert natural gas into LNG by supercooling it to minus 160 degrees Celsius.

Project Overview

The produced LNG will be transported via cryogenic trucks to the nearest pipeline, where it will be re-gasified and injected into the network for distribution to various consumers, including power plants, fertilizer units, and city gas retailers. To facilitate this, ONGC has issued a tender seeking manufacturers and service providers to harness stranded natural gas.

The identified locations for the mini-LNG plants include two sites in Rajahmundry, Andhra Pradesh, along with one each in Ankleshwar, Gujarat; Bokaro, Jharkhand; and Cambay, Gujarat. The tender outlines a call for bids from manufacturers and service providers to establish small-scale LNG plants on a Build, Own, and Operate (BOO) basis. These plants will produce LNG, transport it to consumption sites within a 250-kilometer radius, re-gasify the LNG, and inject the gas into existing distribution grids or supply it directly to bulk consumers.

Addressing Stranded Gas Challenges

ONGC emphasized that while India boasts an extensive network of pipelines connecting supply and demand centers, a significant volume of stranded gas—those not connected to pipelines—remains untapped. The stranded gas volumes can range from 5,000 to 50,000 standard cubic meters per day, with the potential for production lasting up to five years.

According to ONGC, the domestic natural gas production exceeds 90 million standard cubic meters per day, supplying energy for electricity generation, fertilizer production, and household cooking. However, domestic output only meets about half of the country’s demand, highlighting the importance of optimizing existing resources.

Strategic Partnerships and Future Developments

As India’s largest producer of crude oil and natural gas, ONGC has been investing billions to enhance production and reduce reliance on imports. Prior to this tender, ONGC partnered with Indian Oil Corporation (IOC) to set up a small-scale LNG plant near its Hatta gas field in Madhya Pradesh. This facility will initially have a capacity of 32 to 35 tonnes, sourcing 45,000 standard cubic meters per day of gas from the Hatta field.

IOC will bear the costs of the small-scale LNG plant and conduct a detailed feasibility study, while ONGC will supply gas to IOC for further distribution. This collaboration aims to optimize the use of stranded natural gas in the region.

Earlier this year, GAIL (India) Ltd announced plans for a small-scale LNG plant at its Vijaipur LPG unit in Madhya Pradesh, indicating a growing trend toward utilizing stranded gas resources.

Conclusion

With over 100 wells across the country producing volumes too small to justify pipeline investments, ONGC’s initiative to develop mini-LNG plants presents a viable solution to tap into stranded natural gas. This strategic move not only enhances domestic gas production but also helps meet the growing energy needs of the country, contributing to a more sustainable and efficient energy landscape in India.

State-owned Oil and Natural Gas Corporation (ONGC) is embarking on a project to set up mini-LNG (liquefied natural gas) plants aimed at evacuating natural gas from wells in regions that lack pipeline connectivity. The initiative targets five sites across Andhra Pradesh, Jharkhand, and Gujarat, where mini plants will be established at wellheads to convert natural gas into LNG by supercooling it to minus 160 degrees Celsius. Project Overview The produced LNG will be transported via cryogenic trucks to the nearest pipeline, where it will be re-gasified and injected into the network for distribution to various consumers, including power plants, fertilizer units, and city gas retailers. To facilitate this, ONGC has issued a tender seeking manufacturers and service providers to harness stranded natural gas. The identified locations for the mini-LNG plants include two sites in Rajahmundry, Andhra Pradesh, along with one each in Ankleshwar, Gujarat; Bokaro, Jharkhand; and Cambay, Gujarat. The tender outlines a call for bids from manufacturers and service providers to establish small-scale LNG plants on a Build, Own, and Operate (BOO) basis. These plants will produce LNG, transport it to consumption sites within a 250-kilometer radius, re-gasify the LNG, and inject the gas into existing distribution grids or supply it directly to bulk consumers. Addressing Stranded Gas Challenges ONGC emphasized that while India boasts an extensive network of pipelines connecting supply and demand centers, a significant volume of stranded gas—those not connected to pipelines—remains untapped. The stranded gas volumes can range from 5,000 to 50,000 standard cubic meters per day, with the potential for production lasting up to five years. According to ONGC, the domestic natural gas production exceeds 90 million standard cubic meters per day, supplying energy for electricity generation, fertilizer production, and household cooking. However, domestic output only meets about half of the country’s demand, highlighting the importance of optimizing existing resources. Strategic Partnerships and Future Developments As India’s largest producer of crude oil and natural gas, ONGC has been investing billions to enhance production and reduce reliance on imports. Prior to this tender, ONGC partnered with Indian Oil Corporation (IOC) to set up a small-scale LNG plant near its Hatta gas field in Madhya Pradesh. This facility will initially have a capacity of 32 to 35 tonnes, sourcing 45,000 standard cubic meters per day of gas from the Hatta field. IOC will bear the costs of the small-scale LNG plant and conduct a detailed feasibility study, while ONGC will supply gas to IOC for further distribution. This collaboration aims to optimize the use of stranded natural gas in the region. Earlier this year, GAIL (India) Ltd announced plans for a small-scale LNG plant at its Vijaipur LPG unit in Madhya Pradesh, indicating a growing trend toward utilizing stranded gas resources. Conclusion With over 100 wells across the country producing volumes too small to justify pipeline investments, ONGC’s initiative to develop mini-LNG plants presents a viable solution to tap into stranded natural gas. This strategic move not only enhances domestic gas production but also helps meet the growing energy needs of the country, contributing to a more sustainable and efficient energy landscape in India.

Next Story
Resources

Blum India brings Design Reverie to Hyderabad

Blum India hosted the Hyderabad edition of its signature event, Design Reverie, at the historic Taj Falaknuma Palace, making it a memorable evening for the city’s architecture and interior design community. As per news reports, the event combined modern design sensibilities with the grandeur of a palace setting and the spiritual charm of Sufi qawwali.This marked the third edition of the event, after previous gatherings in Delhi and Bangalore. In Hyderabad, the focus was on fostering relaxed yet meaningful dialogue among design professionals—away from the typical conference setup. The eveni..

Next Story
Resources

Hafele launches Platinum Studio in Nagpur

Hafele has expanded its franchise footprint in central India by opening a new Studio Partner Platinum showroom in Nagpur in collaboration with Onkar Furnitech. The studio was inaugurated by Nitin Gadkari, Minister of Road Transport and Highways, along with Padma Gupta, Director � HR & Customer Experience, Hafele South Asia.Located at Sarthak Plaza, South Ambazari Road, Laxmi Nagar, the showroom offers an immersive experience of Hafele’s wide-ranging interior and home solutions. Designed as a hands-on, real-life application space, the studio showcases Hafele’s full portfolio—includi..

Next Story
Resources

Truflo by Hindware wins GPTW honour again

Truflo by Hindware has been certified a Great Place to Work for the fourth consecutive year, reaffirming its commitment to a people-first culture. The certification was awarded by the Great Place to Work Institute following a rigorous evaluation of employee experience, leadership, culture, and HR practices.Known as India’s fastest-growing plastic pipes and fittings company, Truflo has focused on fostering an inclusive, innovative, and growth-driven work environment. The company prioritises employee well-being and professional development, creating a culture where people feel valued and empow..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement