ONGC to Import Ethane from 2028 Amid Qatar LNG Shift

ONGC plans to import 800,000 tonnes of ethane annually from mid-2028 to compensate for changes in LNG composition under its renewed contract with QatarEnergy. The revised contract will supply ‘lean’ gas, impacting ONGC’s petrochemical operations. To secure ethane imports, ONGC plans to secure ethane.

ONGC for its subsidiary, Petro additions Ltd (OPaL), which operates Southeast Asia’s largest standalone dual-feed cracker. The company is also inviting joint venture partners for financing and constructing VLECs supplied by QatarEnergy, ensuring a steady feedstock supply for ONGC’s petrochemical operations.

Oil and Natural Gas Corporation (ONGC), India’s leading state-owned energy company, has announced plans to import 800,000 tonnes of ethane annually starting from mid-2028. This strategic move aims to compensate for anticipated changes in the composition of liquefied natural gas (LNG) To address this challenge, ONGC has initiated steps to secure ethane imports.

Background: Changes in Qatar LNG Composition

India currently imports 7.5 million tonnes per annum (MTPA) of LNG from QatarEnergy under a long-term agreement. Historically, this LNG contained higher hydrocarbons, including ethane, which are crucial for petrochemical production. However, QatarEnergy’s ongoing expansion projects, notably the North Field Expansion, aim to increase.

Qatar’s LNG production capacity from 77 MTPA to 142 MTPA by 2030. This expansion is expected to result in a leaner LNG composition with reduced ethane content, impacting downstream petrochemical processes that rely on these higher hydrocarbons Strategic Measures: Ethane Import and Shipping Partnerships

Impact on ONGC’s Petrochemical Operations

ONGC’s subsidiary, ONGC Petro additions Ltd (OPaL), operates a dual-feed cracker at Dahej, Gujarat, capable of producing 1.1 million tonnes per year of ethylene and 400,000 tonnes per year of propylene. This facility utilizes a mix of naphtha, ethane, propane, and butane as feedstock. The anticipated reduction in ethane content from Qatar’s LNG necessitates alternative sourcing to maintain optimal production levels and efficiency.

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Ethane Procurement: ONGC plans to source 800,000 tonnes of ethane annually starting from May 2028 to ensure a consistent supply for its petrochemical Qatar’s LNG sector is undergoing significant transformations operations QatarEnergy’s ambitious project aims to boost LNG production capacity substantially by 2030, positioning Qatar as a dominant player in the global LNG market.

1. Shipping Partnerships: The company is seeking partners to establish joint ventures for the construction and operation of Very Carriers (VLECs). These specialized vessels are essential for transporting ethane from international suppliers to India’s shores. ONGC has issued a tender inviting expressions of interest from firms experienced in operating and managing VLECs, with a submission deadline.
3. Market Competition: Qatar faces increasing competition from other LNG producers, including the United States and the United Arab Emirates, who offer more flexible contract terms. This competition influences global LNG trade dynamics and supply agreements QatarEnergy’s ambitious project aims to boost LNG production capacity substantially by 2030.

ONGC’s decision to import ethane from 2028 reflects proactive strategic planning in response to evolving global energy dynamics. By securing alternative ethane supplies and investing in specialized transportation infrastructure, ONGC aims to sustain its petrochemical production capabilities and support India’s growing energy and industrial needs.​

India’s state-owned ONGC plans to import 800,000 tonnes of ethane annually from 2028 to offset changes in QatarEnergy’s LNG composition due to its North Field issued a tender for joint ventures project. The shift reduces ethane content, crucial for ONGC’s petrochemical operations at Dahej, Gujarat.

To ensure a steady supply, ONGC seeks shipping partners for Very Large Ethane Carriers (VLECs) and has issued a tender for joint ventures. This move strengthens ONGC’s feedstock security, supporting India’s petrochemical sector amid evolving global LNG trade dynamics.

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