ONGC to Transport Gas with small LNG Plants

14 Oct 2024 , 12:36 PM

In order to remove natural gas from wells situated in places without pipeline connections, the state-owned Oil and Natural Gas Corporation (ONGC) plans to establish small LNG plants.

The company has chosen five locations in Andhra Pradesh, Jharkhand, and Gujarat for the installation of small facilities at the wellhead. These plants would supercool the piped gas out of the ground to minus 160 degrees Celsius in order to turn it into LNG.

In order to feed consumers like power plants, fertilizer units, or municipal gas retailers, this LNG will be put into cryogenic trucks and driven to the closest pipeline, where it will be transformed back into a gas and injected into the network.

According to their website, the increased price for new gas will make new gas development projects viable, allowing ONGC to increase production of natural gas from identified fields in difficult places that demand more capital and technology. This will increase the Company’s investment ability to take on development projects that would otherwise be capital intensive and involve a higher level of risk, requiring comparable costs.

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