ONGC Close to Entering Downstream Segment in India
India’s Oil and Natural Gas Corporation is considering a strategic diversification and is on the cusp of entering the downstream sector.
In an interview with Economic Times, ONGC chairman Sudhir Vasudeva said the company is keen to enter the LNG sourcing and marketing business and is close to striking a global alliance with a company that has expertise across the LNG value chain.
Vasudeva told the newspaper that the company, as part of its overall Perspective 2030 plan, is keen to enter the LNG sourcing and marketing business in India as there is a huge demand potential for LNG in the country. He added that ONGC is close to signing a memorandum of understanding with the Japan-based Mitsui Group, which will be handling the entire value-chain of the LNG business for the company.
“We are very much in the reckoning as we think that at the right price Gujarat Gas is a very good asset,” Vasudeva told Economic Times.
On the issue of launch of a new subsidiary company called ONGC Gas, the chairman said that the company has made no decision at the moment as it is still in the midst of finalising our plans and need to take a call on whether to launch a new company or work through a special purpose vehicle.