ONGC to invest Rs 138 Bn in new projects
OIL & GAS

ONGC to invest Rs 138 Bn in new projects

In a strategic move to enhance the production of natural gas, the Ministry of Petroleum and Natural Gas (MOP&NG) has notified a revised pricing policy that will see natural gas from new wells or well interventions in nominated fields of ONGC and Oil India Limited being priced at a 20% premium over the administered price mechanism (APM). This effectively sets the price at 12 %of the Indian Crude basket price.

Under this new guideline, the Petroleum Planning and Analysis Cell (PPAC) has outlined that the APM Price was previously pegged at 10 %of the Indian Crude basket price on a monthly basis. The implementation of this premium pricing is anticipated to render gas development projects in challenging areas viable, areas which are often capital and technology-intensive.

ONGC has responded to this policy update by approving two major projects totaling an investment of approximately Rs 138 billion. The first, the Daman Upside Development project in the Mumbai High field, involves a cost of about Rs 78 billion and is already underway. It is expected to reach a peak production of around 5 million standard cubic meters per day (MMSCMD).

Furthermore, the ONGC Board has sanctioned the Integrated Development of 4 Contract areas under the Discovered Small Fields (DSF-II) at an estimated project cost of Rs 60 billion. This project also benefits from pricing and marketing freedom under the DSF Policy and aims to hit a peak production of approximately 4 MMSCMD. The execution of this project has already been initiated. This policy shift aligns with India's ambitious target of increasing the share of natural gas in the national energy mix from the current 6 %to 15 %by the year 2030, supporting the country's broader energy and environmental goals.             

In a strategic move to enhance the production of natural gas, the Ministry of Petroleum and Natural Gas (MOP&NG) has notified a revised pricing policy that will see natural gas from new wells or well interventions in nominated fields of ONGC and Oil India Limited being priced at a 20% premium over the administered price mechanism (APM). This effectively sets the price at 12 %of the Indian Crude basket price.Under this new guideline, the Petroleum Planning and Analysis Cell (PPAC) has outlined that the APM Price was previously pegged at 10 %of the Indian Crude basket price on a monthly basis. The implementation of this premium pricing is anticipated to render gas development projects in challenging areas viable, areas which are often capital and technology-intensive.ONGC has responded to this policy update by approving two major projects totaling an investment of approximately Rs 138 billion. The first, the Daman Upside Development project in the Mumbai High field, involves a cost of about Rs 78 billion and is already underway. It is expected to reach a peak production of around 5 million standard cubic meters per day (MMSCMD).Furthermore, the ONGC Board has sanctioned the Integrated Development of 4 Contract areas under the Discovered Small Fields (DSF-II) at an estimated project cost of Rs 60 billion. This project also benefits from pricing and marketing freedom under the DSF Policy and aims to hit a peak production of approximately 4 MMSCMD. The execution of this project has already been initiated. This policy shift aligns with India's ambitious target of increasing the share of natural gas in the national energy mix from the current 6 %to 15 %by the year 2030, supporting the country's broader energy and environmental goals.             

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?