State鈥憆un Oil and Natural Gas Corporation Ltd (ONGC) is preparing to enter the imported liquefied natural gas (LNG) business by the fourth quarter of financial year 2025鈥�26. The company aims to source R鈥慙NG via spot deals indexed to Henry Hub and West Asian markets, targeting the growing demand in India鈥檚 city gas distribution sector.
While ONGC is still in the early planning stages, the company鈥檚 strategic shift follows policy measures intended to increase natural gas's share of India鈥檚 energy mix from around 7 per cent to 15 per cent by 2030 . As demand for cleaner fuels grows, ONGC has highlighted R鈥慙NG as one of its four pillars of diversification鈥攁longside E&P, renewables, and petrochemicals.
Initially, ONGC plans to operate imported LNG via long-term procurement without building its own regasification infrastructure. The company may hire existing LNG terminals and pipelines, with the potential to invest in its own logistics infrastructure later .
Entry into the R鈥慙NG segment will allow ONGC to complement its domestic gas supply capabilities and cater to rising demand from city gas distributors. Market conditions, including global LNG prices, will govern the timing and scale of the foray.
By Q4 FY26, ONGC hopes to establish a foothold in the imported RES market, leveraging spot procurement strategies to enhance energy access, meet policy goals, and advance its broader diversification ambitions.
