May 11, 2012

ONGC to foray into city gas distribution business

The company will enter city gas distribution business and sale of imported liquefied natural gas (LNG) through a new subsidiary - ONGC Gas. The new unit may be aimed at making amends to the company letting go lucrative opportunities to enter gas business. ONGC has virtually no presence in marketing of the environment friendly fuel. All of its gas is marketed by state-owned GAIL India. It had let go marketing rights on gas from even newer fields as also of LNG imported by Petronet LNG. ONGC holds 12.5 per cent stake in Petronet LNG. This is the same as the stake held by GAIL and IOC and BPCL. While others market a share of LNG imported by Petronet, ONGC had never demanded sale rights.
Also, plans to set up a LNG import facility at Mangalore in Karnataka are scrapped.

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