New Delhi: Oil and Natural Gas Corporation (ONGC) is planning to set up mini-LNG plants to extract and transport natural gas from wells situated in areas without pipeline connections. The company has identified five locations in Andhra Pradesh, Jharkhand, and Gujarat for these plants, which will liquefy the gas by cooling it to minus 160 degrees Celsius.

These mini plants will convert gas pumped from underground into liquefied natural gas (LNG), which will then be transported by cryogenic trucks to the nearest pipelines. Once there, it will be reconverted into gas and distributed to users, including power plants, fertiliser units, and city gas retailers.

ONGC has issued a tender seeking manufacturers and service providers to set up these small-scale LNG plants on a build, own, and operate basis. The identified locations include two sites in Rajahmundry, Andhra Pradesh, and one each in Ankleshwar, Gujarat, Bokaro, Jharkhand, and Cambay, Gujarat. The LNG produced will be transported within 250 kilometres to consumption sites, where it will be regasified and injected into the existing gas distribution grids or supplied directly to bulk consumers.

This initiative follows a partnership between ONGC and Indian Oil Corporation (IOC) to develop a small-scale LNG plant near the Hatta gas field in Madhya Pradesh. IOC is conducting a feasibility study for this project, and the initial plant capacity is set to handle 32 to 35 tonnes of LNG per day, sourced from the Hatta gas field. IOC will operate the plant, while ONGC will supply the gas for distribution.

BI Bureau