ONGC and Indian Oil have joined forces to develop a new small-scale Liquefied Natural Gas or LNG plant adjacent to the Hatta Gas Field in the Vindhyan Basin.
The agreement for the project was signed on June 17, 2024, as announced by ONGC in a recent press release.
According to ONGC’s statement, the establishment of the Hatta LNG plant will elevate the Vindhyan Basin’s status from Category II to Category I, reflecting its upgraded hydrocarbon reserves.
Bharat’s sedimentary basins, sprawling over 3.4 million square kilometres, are categorised based on their hydrocarbon potential.
Category I: Active production of hydrocarbon products.
Category II: Resources identified, awaiting commercial production.
Category III: Prospective areas yet to be explored.
Utilising advanced technology, the LNG plant aims to produce cleaner fuel alternatives, significantly cutting down on carbon emissions in line with India’s climate change goals.
Background and Development
ONGC highlighted that the Hatta discovery is the culmination of over five decades of exploration efforts. The company has submitted its Field Development Plan to the Directorate General of Hydrocarbons to unlock the commercial potential of the Hatta area.
In March 2022, ONGC decided to proceed with the commercialisation of the Hatta-3 gas discovery in the Son Valley area of Madhya Pradesh. This decision followed successful exploration, with the exploratory well producing 62,044 cubic meters of gas per day, marking Bharat’s ninth producing basin and eighth by the company.
International Engagements
These developments coincide with Bharat’s ongoing negotiations with Equinor, a Norwegian energy giant, for strategic partnerships in Bharat’s petroleum reserves and long-term LNG supply deals from Equinor’s global operations in the US and Qatar, according to reports.
These efforts are aimed at bolstering Bharat’s energy security as it ranks as the world’s third-largest energy consumer.
Energy Security Concerns
Bharat’s discussions with Equinor come amidst global supply chain pressures caused by production cuts from OPEC and its allies, including Russia. These geopolitical factors have highlighted the urgency of enhancing Bharat’s domestic energy capabilities.
Recently, ONGC initiated a tender on June 1 to engage an international firm to enhance oil production from its flagship Mumbai High oilfield. This move aims to counter the declining production state of the oil field, as detailed in company documents.
The collaboration between ONGC and Indian Oil for the Hatta LNG plant represents a significant stride towards enhancing India’s energy infrastructure and reducing dependency on traditional fossil fuels.
