New Delhi: State-run Oil and Natural Gas Corp. (ONGC) is looking to set up a trading unit for oil & gas, petroleum products and petrochemicals produced by its group companies, according to a top official.
Trading would be the key step for oil and gas companies of the country, said Rajarshi Gupta, managing director of ONGC Videsh Ltd (OVL), the overseas arm of ONGC.
“We have created a commodity trading group of oil and gas in ONGC, exclusively for (looking into the aspect of) trading,” Gupta said while addressing the 3rd Energy Summit of Indo-American Chamber of Commerce. “We are going forward with that and we do see that in the near future trading will be required for India especially with so many sources and so much peak demand occurring with the economy growing.”
The plan is in a conceptual stage, and its scope may widen, he said.
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Gupta said ONGC produces around 42 MT (million tonne) of crude oil, its subsidiary Hindustan Petroleum Corp. (HPCL) procures around 30-35 MT crude oil and Mangalore Refinery and Petrochemicals Ltd (MRPL) purchases around 18-20 mt crude oil. And OVL products 10.5 mt of oil, he told reporters on the sidelines of the event.
Gupta also said that in the energy market varying and innovative models of gas sourcing are being discussed.
"In ONGC, we have decided that we will source about 5 million tonne of LNG and that will be a combination of Henry Hub, crude-based LNG and from multiple sources," Gupta said, adding that volatility is a certainty going forward and sources will also increase in days ahead.