ONGC Predicts a Strong Future for Natural Gas Amid Rising Domestic Demand

ONGC anticipates robust growth in its natural gas sector, driven by high-priced new gas well production and rising domestic demand. Chairman Arun Kumar Singh announced plans for significant expansions offshore and improvements in international projects while emphasizing a strategic pivot towards cleaner fuel sources.

India's premier oil and gas company, ONGC, projects significant growth in the natural gas sector. Chairman Arun Kumar Singh shared that the company now sees natural gas as central to its business model, with high-value new gas well production scaling and domestic demand surging.

Singh highlighted that the company is producing and selling more gas than oil. This shift is aided by favorable pricing reforms and reduced handling costs, enhancing profitability. He pointed out that new gas wells account for a significant portion of production volumes, with higher returns linked to crude oil prices.

Key projects such as the Daman field, DSF block development, and the KG-98/2 deepwater block are expected to fuel gas production growth annually by 7-8%. Today, ONGC is committed to substantial investments across western offshore fields, representing the bulk of its operations.

ONGC's international arm, ONGC Videsh, also shows promising recovery in Russia and anticipates progress in Mozambique’s LNG development, with U.S. policy potentially unlocking further Venezuelan production. Domestically, recent expansions include renewable energy initiatives, signaling a strategic pivot to a more balanced energy portfolio.