ONGC to Establish Mini-LNG Plants to Utilize Stranded Natural Gas
State-owned Oil and Natural Gas Corporation (ONGC) is set to embark on an ambitious project to set up mini-LNG plants in regions that lack pipeline connectivity. The initiative aims to evacuate natural gas from wells and convert it into liquefied natural gas (LNG) for distribution to various consumers. This project, which targets five sites across Andhra Pradesh, Jharkhand, and Gujarat, represents a significant step in optimizing India’s natural gas resources.
Project Overview: Tapping into Untapped Potential
The project involves establishing mini plants at wellheads in strategic locations to convert natural gas into LNG by supercooling it to minus 160 degrees Celsius. The produced LNG will then be transported via cryogenic trucks to nearby pipelines. These pipelines will facilitate re-gasification of the LNG and injection into the network for distribution to consumers such as power plants, fertilizer units, and city gas retailers. ONGC has issued a tender inviting manufacturers and service providers to harness stranded natural gas and bring this resource to market.
The identified locations for the mini-LNG plants include two sites in Rajahmundry, Andhra Pradesh, one in Ankleshwar, Gujarat, one in Bokaro, Jharkhand, and one in Cambay, Gujarat. ONGC’s 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 not only produce LNG but also transport it within a 250-kilometer radius and re-gasify it before injecting the gas into existing distribution grids or supplying it directly to bulk consumers.
Overcoming Gas Transportation Challenges
ONGC emphasized that although India has an extensive network of pipelines connecting supply and demand centers, a significant volume of stranded gas remains untapped. The stranded gas can range from 5,000 to 50,000 standard cubic meters per day, with the potential for production lasting up to five years. With domestic natural gas production exceeding 90 million standard cubic meters per day, meeting the country’s demand requires optimizing existing resources. The establishment of mini-LNG plants will overcome the challenge posed by stranded gas by effectively utilizing them and enhancing India’s overall gas production capacity.
Expanding Partnerships for a Sustainable Future
As India’s largest producer of crude oil and natural gas, ONGC has been investing billions to enhance production and reduce reliance on imports. In collaboration with the Indian Oil Corporation (IOC), ONGC previously set up a small-scale LNG plant near its Hatta gas field in Madhya Pradesh. This joint venture aims to optimize the use of stranded natural gas, with IOC bearing the costs of the plant and ONGC supplying gas to IOC for distribution.
Additionally, GAIL India Ltd recently announced plans for a small-scale LNG plant at its Vijaipur LPG unit in Madhya Pradesh. These developments reflect a growing trend in utilizing stranded gas resources and highlight the importance of sustainable energy solutions.
A Viable Solution for Unlocking Natural Gas Potential
With over 100 wells across the country producing volumes too small to justify pipeline investments, ONGC’s initiative to develop mini-LNG plants represents a promising solution. By tapping into stranded natural gas reserves, this project not only enhances domestic gas production but also contributes to meeting India’s growing energy needs. By creating a more sustainable and efficient energy landscape, ONGC’s strategic move sets a positive trajectory for India’s future.
