Oil and Natural Gas Corporation (ONGC) plans to establish mini-liquefied natural gas (LNG) plants in India to use natural gas from wells in regions without pipeline access. This effort seeks to harness stranded gas reserves and boost the domestic gas supply for various consumers.
The mini-LNG plants will convert underground gas into LNG by cooling it to -160°C. The LNG will then be transported by cryogenic trucks to the nearest pipeline, where it will be re-gasified and fed into the network. This system will serve power plants, fertilizer units, and city gas distributors.
ONGC has identified five potential locations for these plants in the states of Andhra Pradesh, Jharkhand, and Gujarat. These include two sites in Rajahmundry, Andhra Pradesh, and one each in Ankleshwar and Cambay in Gujarat, and Bokaro in Jharkhand.
The initiative aims to address India's need to tap stranded gas reserves, ranging from 5,000 to 50,000 standard cubic meters per day, which can be produced for up to five years.
In June, ONGC partnered with Indian Oil Corporation (IOC) to develop a small-scale LNG plant near the Hatta gas field in the Vindhyan basin, Madhya Pradesh. Under this agreement, IOC will purchase gas from ONGC, and the plant will process 32–35 tonnes of LNG per day, using 45,000 standard cubic meters of gas from the Hatta field.
IOC is conducting a feasibility study and will bear the costs of setting up the plant. Once operational, IOC will manage the plant and distribute the gas to end consumers.