Oil & Natural Gas Corporation (ONGC) has confirmed that it has penned an agreement with Japan-based Mitsui & Company for a comprehensive cooperation in the natural gas and LNG businesses.
The memorandum of understanding (MoU), which was signed on 14th of August, will pave the way the installation of a re-gasification terminal in India besides marketing of re-gasified LNG.
Speaking to reporters on the sidelines of an HR round table on Friday, ONGC chairman and managing director Sudhir Vasudeva said, "We have signed a MoU that will work on an entire value chain of sourcing LNG to setting up re-gasification terminal. We will study the opportunities."
The agreement is aims at meeting the soaring demand for natural gas. To meet the aim, both ONGC and Mitsui will make efforts to source LNG from international suppliers on spot, short & long term contract basis.
Vasudeva also said that the state-run oil & gas giant has plans to invest Rs 1,64,000 crore during the 12th Plan. ONGC's fully-owned subsidiary OVL and another state-owned company MRPL will invest Rs 95,000 crore and Rs 10,000 crore, respectively, towards the respective expansion plans.
Over the next eighteen years, ONGC expects to make investments to the tune of Rs 11,00,000 crore with an aim to increase its oil production to 62 million tonnes per year and raise its market cap by four folds.
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