ONGC seals deal on gas, LNG ventures with Mitsui - VJonDalalStreet

Mumbai: State-run oil and gas giant Oil and Natural Gas Corporation said it has signed an agreement with Mitsui & Company of Japan for a wide ranging cooperation in the gas and LNG businesses.

Both the companies have signed an MoU on August 14, ONGC chairman and managing director Sudhir Vasudeva told reporters on the sidelines of an HR round table.
The MoU is expected to pave the way for setting up a re-gasification terminal in the country including the marketing of re-gasified LNG, he added.

"We have signed an MoU that will work on an entire value chain of sourcing LNG to setting up re-gasification terminal. We will study the opportunities," Vasudeva said.

Under the agreement, which is aimed at meeting the rising demand for natural gas, both ONGC and Mitsui would make reasonable efforts to source LNG from international suppliers on spot, short- and long-term contract basis.

Meanwhile, Vasudeva said ONGC is expected to invest 1,64,000 crore during the 12th Plan. While its fully-owned subsidiary OVL will invest 95,000 crore and another state-owned company MRPL will invest 10,000 crore towards the respective expansion plans, Vasudeva added.

Commenting on long-term plans, Vasudeva said ONGC will invest around 11 trillion in the next 18 years, the company hopes to increase the oil production from 62 million and market cap will increase by four times, he said.