ONGC, Hindujas in JV pact to scout for LNG-related business in the Middle East

ONGC has entered into a tie-up with Hinduja group's Ashok Leyland Project Services (ALPS), to form joint ventures to pursue global opportunities in liquefied natural gas (LNG) and linked E&P business.

The two signed an MoU in New Delhi yesterday to leverage the E&P expertise of ONGC and the business-goodwill of the Hinduja Group in the hydrocarbon-rich Middle East.

The MoU provides for sourcing of LNG at soft terms, to be facilitated by ALPS. Post-sourcing, ALPS will participate in joint development of LNG-based downstream projects at Mangalore SEZ - like LNG-regasification, power, petrochemicals, as conceptualised by ONGC and its subsidiary MRPL.

The parties will form JVs or unincorporated ventures, whose equity structure is expected to be ONGC-49.98 per cent, ALPS-48.02 per cent, with FIs or banks holding the remaining 2 per cent.