ONGC to set up LNG terminal, may buy African field

The country's largest oil and gas explorer, ONGC, will be undertaking a feasibility study to set up its first liquified natural gas (LNG) terminal in Karnataka. The terminal will help to cater to the growing demand for LNG in the country in the absence of adequate supplies of domestic gas.

"We have already signed an MoU with Mitsui last year for our LNG business. The venture is being planned jointly with BPCL," ONGC chairman and managing director Sudhir Vasudeva said on Wednesday on the sidelines of a conference.

OVL, the overseas arm of ONGC along with Oil India, is in talks to buy Videocon's 10 per cent stake in Mozambique.

This would provide the company access to large quantities of gas as the block is estimated to hold as much as 70 trillion cubic feet of gas reserves. At present, BPCL also holds 10 per cent stake in the block. The LNG terminal in Karnataka coast would help the company to use a large portion of gas coming from African coasts.

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