Oil and Natural Gas Corporation (ONGC) is exploring plans to set up mini-LNG plants in India to utilise natural gas from wells in areas lacking pipeline connectivity, reported the New Indian Express.
The initiative aims to tap stranded gas reserves and enhance domestic supply to meet the demands of various consumers.
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These plants will be designed to convert underground gas into LNG by supercooling it to -160°C.
The produced LNG will be transported via cryogenic trucks to the nearest pipeline, where it will be re-gasified and fed into the network.
This supply chain will cater to users such as power plants, fertiliser units and city gas retailers.
ONGC has identified five potential sites for the mini-LNG plants across the Indian states of Andhra Pradesh, Jharkhand and Gujarat.
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By GlobalDataThe locations include two sites at Rajahmundry in Andhra Pradesh, and one each at Ankleshwar and Cambay in Gujarat, and Bokaro in Jharkhand.
ONGC’s initiative is a response to the country’s need to tap substantial volumes of stranded gas, which ranges from 5,000 to 50,000 standard cubic metres per day and can be produced for up to five years.
ONGC partnered with the Indian Oil Corporation (IOC) earlier in June to develop a small-scale LNG plant near the Hatta gas field in the Vindhyan basin, Madhya Pradesh.
As per the agreement, IOC will purchase gas from ONGC for the LNG plant.
The proposed plant is expected to process 32–35 tonnes of LNG daily, utilising 45,000 standard cubic metres per day of gas from the Hatta field.
IOC is currently conducting a detailed feasibility study and will cover the costs of the small-scale LNG plant. Once operational, IOC will manage the plant and distribute the gas to end consumers.
