ONGC, Karnataka Ink MoU

Bangalore, Aug 30 | Updated: Aug 31 2004, 05:35am hrs
Oil & Natural Gas Corporation Ltd (ONGC), has signed an MoU with the Karnataka government for jointly developing the coastal special economic zone (SEZ) in Mangalore at an estimated cost of Rs 2,500 crore in the next three-five years.

ONGC chairman Subir Raha, who signed the MoU with the state government, told reporters that the company would be importing about 10 million tonne of rich liquefied natural gas (LNG) for the proposed petrochemical project and 1,500 mw gas-based power project and its Mangalore Refinery & Petrochemicals Ltd (MRPL).

"We propose to build a coastal hub based on LNG. The imported LNG will be processed for extraction of feedstock for power generation, petrochemical units and our 12-million tonne refinery," he said.

The company also plans to supply the lean gas to Bangalore and Chennai via Hassan SEZ in Karnataka by laying gas pipeline adjacent to the existing national highway, using the right of way available in MHBPL pipeline.

The gas will be supplied for enhancing gas consumption in diverse sectors, including power, fertilizer, captive power plants and domestic fuel, and CNG.