India’s Oil and Natural Gas Corp (ONGC) is forming a wholly-owned subsidiary to focus on its gas and LNG business.
The state-owned producer revealed this move on Friday after announcing a 67.4 percent net profit decline in the November-December quarter due to lower realised oil and gas prices.
ONGC says its board approved creation of a unit for “focusing on gas and LNG business value chain, subject to necessary approvals.”
In addition, the unit’s main objective would be sourcing, marketing and trading of
natural gas, LNG, hydrogen-enriched CNG (HCNG), and gas-to-power business, the firm said.
The new company would also work on bioenergy, biogas, biomethane, and other biofuels, according to ONGC.
Moreover, the company’s board also approved the acquisition of a 5 percent equity in the Indian Gas Exchange. IGX is currently India’s first and only authorized gas exchange, which provides an automated platform for natural gas trading.
Worth mentioning here, India’s Petronet LNG also last week revealed plans to create a unit but with a focus on LNG bunkering. ONGC is shareholder in Petronet with a 12.5 percent stake.
