ENERGY-ONGC-CITY GAS DISTRIBUTION

Gurdip Singh

ONGC not to enter LNG retail, but leaves issue open

New Delhi, Jan 21 (UNI) ONGC Chairman and Managing Director R S Sharma today announced a proposal to sign a wide ranging MoU with Bharat Petroleum Corporation Ltd for gas and liquefied natural gas (LNG) business, but ruled out immediately entering into city gas distribution of LNG and other products.Addressing a press conference here, Mr Sharma, however, did not exclude the possibility of the country's largest oil explorer getting into the retail business of these products.''In course of time, we will take a call on this,'' the CMD said.''It is a dynamic situation. We look at business proposition in a dynamic context. At present, the business environment is not very conducive. If the situation changes, we may consider entering into retail (city gas distribution),'' Mr Sharma said. The ONGC Board, which met this morning to approve the financial results of the company, approved the draft of the MoU to be entered with BPCL for cooperation in gas and LNG business.The proposed MoU aims for mutual cooperation between the two state-owned PSUs in the area of gas and LNG business, city gas distribution and pipeline network as well as C3 and C4 offtakes.Mr Sharma said as per the MoU, while ONGC will buy naptha from BPCL, the latter would buy C2 plus gas.