ONGC ropes in Mitsui for gas business

State-run Oil and Natural Gas Corporation (ONGC) has entered into a memorandum of understanding (MoU) with Mitsui & Company of Japan, under which the two will cooperate in the natural gas and LNG businesses.

The MoU, signed on 14 August, provides for the setting up of a re-gasification terminal in the country besides marketing of re-gasified LNG, ONGC chairman and managing director Sudhir Vasudeva said on the sidelines of an HR round table.

"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.

The MoU also aims at sourcing natural gas from international markets and marketing it in India, Vasudeva said, adding that both ONGC and Mitsui plans to source natural gas on both short and long-term contract basis.

ONGC proposes to invest about Rs1,64,000 crore during the 12th Plan while its overseas arm ONGC Videsh Ltd (OVL) will invest around Rs95,000 crore in the oil and gas sector, Vasudeva said.

ONGC's refining arm, Mangalore Refineries and Petrochemicals Ltd (MRPL) will invest Rs10,000 crore for expansion, he added.