Indian state-run ONGC (Oil and Natural Gas Corporation Limited) will form a wholly-owned subsidiary to focus on its company’s gas and LNG business.
“The company will be formed with the objective of sourcing, marketing and trading of natural gas, LNG business, Hydrogen-enriched CNG, gas to power business, bioenergy/ biogas/ biomethane/other biofuels business, etc.,” ONGC said. On Saturday, ONGC reported a drop of 67.4% in its standalone net profit for Q3FY21 on yearly basis.
The Q3 FY21 net profit fell to Rs. 1, 378 crore against Rs. 4, 226 crore reported during the period of the previous fiscal year. The gross revenue dropped 28.2% to Rs. 17, 024 crore as against Rs. 23, 710 crore in FY20.
“Despite countrywide lockdown due to Covid-19 pandemic, ONGC has almost reached last year’s production levels in case of crude oil from its operated blocks. The shortfall in gas production is primarily due to less off take by customers due to the Covid-19 pandemic,” ONGC said.
ONGC has also decided to buy a 5% stake in Indian Gas Exchange that was launched last year. ONGC is an important stakeholder in the gas sector, it would be very essential for ONGC to participate in the gas exchange for the development of the gas sector. “ONGC’s interests towards realizing maximum value from its gas marketing efforts may be substantiated through this first gas trading platform in the country,” ONGC said.
IGX (Indian Gas Exchange) became the first gas exchange that got authorization from Petroleum and Natural Gas Regulatory Board under the Gas Exchange Regulations, 2020. IGX has 15 members and 500 registered clients. It operates from Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. The other major players in the gas sectors are- GAIL, Adani Gas, and Torrent Gas have also invested in the IGX.