The Oil and Natural Gas Corporation Limited (ONGC), India’s largest oil and gas producer, announced plans to purchase between 2.5 and 3 gigawatts (GW) of renewable energy projects. This information was revealed by Satyan Kumar, an executive director at ONGC, during a press briefing on Wednesday. Currently, the company has approximately 2.5 GW of renewable energy capacity in its portfolio.
ONGC is also on track to import 3 million tons of liquefied natural gas (LNG) annually under long-term agreements, with some contracts expected to be finalized within the next year, according to Kumar. Earlier in the year, a senior ONGC executive highlighted a significant investment plan, stating that the company aims to allocate up to $11.5 billion (1 trillion Indian rupees) towards clean energy initiatives by 2030.
ONGC’s Ambitious Renewable Energy Goals
As India’s dominant oil and gas explorer, ONGC accounts for about 70% of the country’s total oil and gas production. The company has set an ambitious target of developing a renewable energy portfolio of 10 GW by 2030. Vivek Chandrakant Tongaonkar, ONGC’s finance director, shared these plans with Bloomberg in February. For the current fiscal year, the company aims to invest $115 million (10 billion rupees) into green energy projects, indicating a substantial increase in investment levels as they approach their 2030 goals.
ONGC’s strategy encompasses a diverse array of renewable and low-carbon energy sources, including solar, wind, hydropower, biogas, green hydrogen, and green ammonia projects. The company plans to finance this expansive growth through cash flows generated from its oil and gas operations, along with new debt issuance.
The initiative to expand into renewables comes at a time when several major European oil and gas companies are reducing their commitments to the clean energy sector, scaling back their targets and discontinuing biofuels and other green energy projects. ONGC’s proactive approach positions it uniquely within the industry, as it seeks to enhance its presence in the growing renewable energy market.
As ONGC continues to build partnerships and expand its clean energy initiatives, the company’s future strategies will likely reflect a commitment to sustainability while balancing its traditional oil and gas operations. The developments at ONGC may serve as a critical case study in the transition of traditional energy companies toward renewable energy solutions in a rapidly evolving global market.
