India’s top oil explorer to invest big
India’s Oil and Natural Gas Corp (ONGC) aims to invest 1-trillion rupees ($12.1bn) by 2030 in a bid to balance its fossil fuel-heavy energy portfolio with green projects.
The state-controlled driller that produces more than half the nation’s oil and gas plans to grow its renewable power portfolio to 10,000MW by 2030 from 189MW at the end of March, chair Arun Kumar Singh told reporters on Monday in Mumbai. It will also focus on using clean energy to produce ammonia and other technologies that can offer around-theclock generation.
“India will continue to grow in fossil fuel demand until 2040, but at the same time we have to step up our efforts for green energy,” Singh said. “We have to do this so that both the worlds can coexist.”
ONGC joins Indian Oil and privately held Reliance Industries as big fossil fuel powers in the nation that have announced big ticket investments in carbonfree energy. Singh also said the company would try to zero out its direct emissions — but not those that come from the oil and gas it sells — by 2038. Prime Minister Narendra Modi has set a national goal to become net zero by 2070.
“Since we have cash flow, possibly in comparison to others we will find it easier to do,” Singh said. “We can take a little riskier position.”
The company has no plans to stop investing in fossil fuels. Its capital spending plan of 301.25bn rupees for the current fiscal year is almost all dedicated to exploration and development of its oil and gas blocks.
Its overseas unit, ONGC Videsh, is considering bidding for blocks in Guyana, and is also considering acquisition opportunities in Africa and Latin America, OVL MD Rajarshi Gupta said during the same briefing.