State-run oil and gas giant Oil and Natural Gas Corporation said it has signed an agreement with Mitsui & Company of Japan for a wide ranging cooperation in the gas and LNG businesses.
Both the companies signed an MoU on August 14, ONGC chairman and managing director Sudhir Vasudeva told reporters on the sidelines of an HR round table here. The MoU is expected to pave the way for setting up a re-gasification terminal in the country besides marketing of re-gasified LNG, he added.
"We have signed an MoU that will work on an entire value chain of sourcing LNG to setting up re-gasification terminal. We will study the opportunities," Vasudeva said. Under the agreement, which is aimed at meeting the rising demand for natural gas, both ONGC and Mitsui would make efforts to source LNG from international suppliers on spot, short- and long-term contract basis.
Meanwhile, Vasudeva said ONGC is expected to invest Rs 1,64,000 crore during the 12th Plan. While its fully-owned subsidiary OVL will invest Rs 95,000 crore and another state-owned company MRPL will invest Rs 10,000 crore towards the respective expansion plans, Vasudeva added.
Commenting on long-term plans, Vasudeva said ONGC will invest around Rs 11 trillion in the next 18 years and hopes to increase the oil production from 62 million tonnes and market cap by four times.