ONGC is accelerating expansion with billion-dollar deals to secure India’s energy future
Oil & Natural Gas Corporation Ltd (ONGC), which contributes around 70% of India’s crude oil and approximately 84% of its natural gas production, is on an aggressive expansion drive to reinvent itself and remain a key contributor to India’s energy security. Last week, ONGC entered into a series of major deals in this direction. On February 12, NGC NTPC Green Private Limited (ONGPL), a 50:50 joint venture between ONGC Green Limited (OGL) and NTPC Green Energy Limited (NGEL), acquired Ayana Renewable Power for ₹195 billion (USD 2.3 billion) in one of the largest recent deals in India’s energy sector. On the same day, ONGC Videsh Ltd., a wholly owned subsidiary of ONGC, teamed up with energy major Petróleo Brasileiro S.A. (Petrobras) to assess opportunities in upstream, marketing, decarbonisation, and low-carbon solutions, among other areas. A day later, ONGC and bp, one of the largest international energy companies, signed a contract under which bp will serve as the Technical Services Provider (TSP) for the Mumbai High field, India’s largest and most prolific offshore oil field. Additionally, ONGC partnered with Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, to explore collaborative opportunities in the Battery Energy Storage System (BESS) value chain. On February 15, the State Oil Company of the Azerbaijan Republic (SOCAR), ONGC, and its subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL) signed a non-binding Memorandum of Understanding (MoU) to explore strategic opportunities in the energy sector. The MoU outlines collaboration in the supply of crude oil and liquefied natural gas (LNG), the sale and supply of petroleum products, exploration of trading opportunities, and capacity building through knowledge exchange. GREEN ENERGY PUSH ONGC, predominantly a fossil fuel operator, is now aiming for a greener future. As of FY24, it had only 193 MW (megawatts) of green energy—153 MW from wind and 40 MW from solar. With an investment of ₹1000 billion, ONGC plans to reach 10 GW, with 60-70% from solar and 30-40% from wind. Other green initiatives include 25 biogas plants, 2 GW of pumped hydro, 1 MMTPA (million metric tonnes per annum) of green ammonia, and 180 kilotonnes of green hydrogen. In FY25, the plan was to add only 1 GW of assets with an investment of ₹10 billion, but the task was expedited with the Ayana acquisition. ONGC aims to achieve net zero by 2038. Acquired from the National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII) and its subsidiaries, and Eversource Capital, Ayana has approximately 4.1 GW of operational and under-construction assets. This acquisition marks ONGPL’s first strategic investment since its inception in November 2024. “The acquisition of Ayana Renewables is a strategic decision by ONGC Green Ltd and NTPC Green Energy Ltd to accelerate the momentum toward a clean energy revolution. It marks a historic milestone in our journey toward a sustainable energy future,” said Sanjay Mazumdar, CEO of ONGC Green Limited. ONGC, which discovered 8 out of India’s 9 producing basins—including the latest Vindhya basin—has struggled to improve production in recent years despite increased exploration and production (E&P) spending. Its crude oil production remained stagnant in FY23 and FY24, at 18.449 MMT and 18.14 MMT, respectively. The standalone crude oil production (excluding condensate) during Q3 FY25 was 4.653 MMT, registering a growth of 2.2% over the corresponding quarter of FY24. Similarly, standalone crude oil production during the first nine months of FY25 was 13.858 MMT, reflecting a 1.2% increase over the same period in FY24. Gas production also remained stagnant at 19.969 billion cubic meters (BCM) and 19.316 BCM, respectively. Standalone natural gas production during Q3 FY25 was 4.978 BCM, registering a growth of 0.3% over Q3 FY24. While ONGC faces production challenges, India’s crude oil demand continues to rise. In FY24, India imported 232.5 MMT of crude oil, nearly the same as the 232.7 MMT imported the previous year. As the world’s third-largest consumer of crude oil, India has an import dependency of over 85%. According to research agency IBEF, crude oil consumption is expected to grow at a CAGR of 4.59% to 500 MMT by FY40. Similarly, India’s natural gas consumption is projected to increase by nearly 60% to 103 BCM annually, requiring gas imports to double by 2030, according to the International Energy Agency (IEA).
More than happy to buy more US gas; can buy Russian oil via clean channel’: IOC Chairman Arvinder Singh Sahney
India’s largest refiner and fuel retailer Indian Oil Corporation (IOC) is optimistic about the prospects of higher energy imports from the US, particularly natural gas imports amid rising gas consumption in the country. And while IOC is also keen to step up purchases of American crude, volume growth shall be contingent upon how competitively it is priced, since high freight charges remain a concern, according to the company’s Chairman ARVINDER SINGH SAHNEY. Regarding the outlook on oil imports from Russia in the wake of the sweeping US sanctions against Moscow’s oil trade, IOC is willing to buy Russian crude as long as the transactions are “clean” and do not carry sanctions-related risk.
GAIL and Cummins forge partnership to advance hydrogen and energy transition
GAIL (India) Limited, a Maharatna CPSE under the Ministry of Petroleum & Natural Gas, has signed a memorandum of understanding (MoU) with Accelera by Cummins to collaborate on hydrogen and energy transition technologies in India. The agreement, signed at India Energy Week 2025, focuses on exploring opportunities in hydrogen production, blending, transportation, and storage. By leveraging GAIL’s extensive natural gas infrastructure and Cummins’ expertise in clean energy solutions, the partnership aims to accelerate India’s hydrogen economy. GAIL’s push for clean energy and hydrogen integration GAIL has been actively investing in hydrogen projects to support India’s clean energy goals. In April 2024, the company commissioned a 10 MW green hydrogen plant in Vijaipur, Madhya Pradesh, using an electrolyser supplied by Accelera by Cummins. As part of its hydrogen strategy, GAIL has also been blending hydrogen into city gas distribution networks through its joint venture Avantika. The company successfully achieved a 5% hydrogen blend in pipeline natural gas during pilot-scale studies. To reinforce its commitment to sustainability, GAIL has revised its Scope 1 and Scope 2 net-zero targets from 2040 to 2035. This shift reflects the company’s increasing focus on reducing carbon emissions and transitioning towards a cleaner energy mix.
Trump is pushing India to buy more American gas – could Russia’s be the better choice?
As New Delhi seeks to diversify its LNG supply, both Moscow and Washington are courting the country to secure major deals. One of the outcomes of Prime Minister Narendra Modi’s recent visit to Washington this week is an expansion of energy cooperation with the US under the India-US Comprehensive Global Strategic Partnership. In a joint statement, Modi and President Donald Trump reaffirmed their resolve to strengthen bilateral energy trade, positioning the US as a key supplier of crude oil, petroleum products, and LNG to India. When Prime Minister Narendra Modi unveiled his vision for a gas-based economy in 2016, it wasn’t just an economic shift but strategic maneuver aimed at reducing pollution, diversifying energy sources, and securing long-term energy stability while preserving strategic autonomy. As 2025 unfolds, India stands at a critical juncture as the global energy landscape is becoming increasingly complex. The United States is ramping up its natural gas exports, potentially adopting a more aggressive energy policy following Donald Trump’s return to the White House. Meanwhile, Russia, a long-standing oil supplier to India, continues to face US-led sanctions, complicating the energy trade. India aims to increase natural gas’s share in its energy mix from the current 6.2% to 15% by 2030. This ambitious target is driven by the need to reduce carbon emissions and diversify its primary energy sources. The International Energy Agency forecasts that India’s natural gas consumption will rise by nearly 60%, reaching 103 billion cubic meters annually by 2030. With LNG imports currently meeting around 50% of its gas demand, India faces a significant vulnerability in its energy security. By 2030, India’s LNG imports are projected to double to approximately 65 bcm annually, making it the fourth-largest LNG importer globally. This heavy reliance exposes the country to price volatility, supply chain disruptions, and geopolitical risks. LNG competition The renewed engagement between Washington and New Delhi could open avenues for India securing long-term LNG contracts, deepening technology collaborations, and attracting investments in oil and gas infrastructure. The evolving US-India energy equation not only enhances India’s energy security but also aligns with New Delhi’s ambition to transition toward a gas-based economy, balancing economic competitiveness with strategic autonomy.