ONGC to Collaborate with Hinduja Group on LNG Ventures
ONGC and Hinduja Group have signed a Memorandum of Understanding to form Joint Ventures to pursue global opportunities in Liquefied Natural Gas (LNG) and linked E&P business. The collaboration will leverage the E&P expertise of ONGC and the business-relationship advantage of the Hinduja Group in the hydrocarbon-rich Middle East, with business prospectivity benefits to both entities.
The Memorandum of Understanding (MoU) between the Company and Ashok Leyland Project Services (ALPS) provides for sourcing of Liquefied Natural Gas (LNG) at competitive terms, to be facilitated by ALPS. Pursuant to such sourcing, ALPS will be invited to participate in joint development of LNG-based downstream projects at Mangalore SEZ - like LNG regasification, Power, Petrochemicals, as conceptualized by ONGC Group.
The parties will form Joint Ventures / unincorporated Joint Ventures, whose equity structure is expected to be ONGC - 49.98%, ALPS - 48.02%, FIs/Banks - 2%, with the majority ownership remaining with ONGC.
Speaking on the occasion, Chairman and Managing Director of the Company Mr. R S Sharma wished the venture all success and hoped that the combined strength of both entities will help provide fillip to the energy security of the Nation. Mr. Sanjay Hinduja, representing the Hinduja Group, said that the Joint Venture, once formed, shall aim to bring concrete results as envisaged in this collaboration.
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