ONGC, the leading oil and natural gas corporation, has taken a significant step towards a sustainable future by announcing a massive ₹1 trillion investment plan. The company aims to reduce its carbon footprint, aligning with global efforts to achieve net-zero emissions by 2038.
With a renewed focus on renewable energy, ONGC is determined to make a substantial impact on the environment and reshape the energy landscape.
The Definitive Handbook: ONGC’s Ambitious ₹1 Trillion Investment to Tackle Carbon Emissions.
ONGC Groundbreaking Strategy Sends a Resounding Message to the Industry, Encouraging Prioritization of Sustainability and Collaborative Efforts for a Greener Planet.
Transitioning to Green Energy and Offshore Ventures
Renewable Energy Expansion:
ONGC has recognized the urgency of embracing renewable energy sources and has set forth ambitious plans. The company currently boasts a renewable energy portfolio of 189 megawatts (MW) as of FY23, with a target to amplify it to an impressive 10 gigawatts (GW) by 2030. To achieve this goal, ONGC intends to explore offshore wind projects and venture into green ammonia production, aiming for a capacity of 1 million tonnes per annum (mtpa) by 2030. These investments are estimated to reach an extraordinary ₹1 trillion.
Exploration and Production (E&P) Growth:
While ONGC prioritizes its green energy endeavors, it also plans to enhance its exploration and production activities. In FY23, the company produced 19.58 million tonnes (mt) of oil, a figure projected to rise to 21.26 mt in FY24 and reach 22.39 mt in FY26. Likewise, natural gas output is expected to increase from 20.64 billion cubic meters (bcm) in FY23 to 23.62 bcm in FY24, potentially reaching 27.16 bcm in FY26. ONGC aims to become a “truly integrated oil and gas company” by striking a balance between crude production, refining, marketing, and green energy initiatives.
Expanding Acreage and International Operations:
ONGC recognizes the importance of expanding its footprint to maximize its potential. Currently, the company possesses 162,000 sq. km of acreage, and it aims to acquire an additional 100,000 sq. km annually, with a total target of 500,000 sq. km. This expansion requires an annual expenditure of ₹10,000 crore on exploration. Moreover, ONGC’s international operations, managed by ONGC Videsh Ltd, are gradually regaining momentum. Operations at the Mozambique gas project, in which Indian oil and gas companies hold a significant stake, are on track for resumption after being halted due to security concerns. Additionally, oil output from the Sakhalin-1 project in Russia has recovered to 200,000 barrels per day (bpd), and ONGC is reclaiming its 20% stake in the project.
ONGC’s commitment to invest ₹1 trillion in green initiatives and its ambitious net-zero emissions target by 2038 is a testament to its dedication towards combating climate change. By prioritizing renewable energy expansion, exploration and production growth, and international operations, ONGC is poised to lead the way in sustainable practices within the oil and gas industry. As the company embraces its role as a truly integrated oil and gas corporation, it paves the way for a greener and more environmentally conscious future. ONGC’s transformative approach sends a powerful message to the industry, inspiring others to prioritize sustainability and work towards a cleaner planet.
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