GLNG: India announces new LNG plant to be built in Madhya Pradesh

India’s state-run Oil and Natural Gas Corporation (ONGC) has signed a deal with the Indian Oil Corporation (IOC) for the development of a small-scall LNG facility in the state of Madhya Pradesh, ONGC announced.

The memorandum of understanding (MoU) was agreed on June 17 and reveals that the plant will be built close to the Hatta gas field, which is located in the Vindhyan Basin. The construction of the plant will also have the effect of raising the status of the Vindhyan Basin.

The production capacity of the facility has not been announced yet, but the two state-run companies did indicate it will be a small-scale plant, but the facility will harness state-of-the-art technology to process LNG.

Nevertheless, the announcement has far-reaching implications, specifically the signalling of intent to live up to its ambitious targets for replacing coal use with the super-chilled fuel.