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.             

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code