Exclusive: ONGC, OIL to use depleted oil fields for carbon sequestration, gas storage

Quitol (South Goa): As part of a larger initiative to diversify its operations, decarbonise and move towards energy transition, Oil & Natural Gas Corporation (ONGC) and Oil India Limited (OIL) are considering using their depleted oil fields for carbon sequestration and natural gas storage. ONGC CMD Arun Kumar Singh said that the oil major has three major components in its decarbonisation strategy — achieving zero gas flaring by 2030, reducing methane emissions to zero by 2030 and using empty reservoirs for carbon sequestration and natural gas storage.

Public Sector's voice PSU Watch is now on Whatsapp Channels. Click here to join

In December 2022, ONGC signed an MoU with global oil major Shell for co-operation on Carbon Capture, Utilisation and Storage (CCUS) studies. Under the ambit of the MoU, the two companies plan to focus on joint CO2 storage study and Enhanced Oil Recovery (EOR) assessments for key basins with depleted oil and gas fields and saline aquifers.

OIL looking to collaborate with thermal power, steel plants for carbon capture, sequestration

OIL Chairman and Managing Director (CMD) Dr Ranjit Rath said that the Central Public Sector Enterprise (CPSE) is looking to collaborate with thermal power, cement and steel plants and petrochemical plants from where carbon can be captured. He said that multiple studies are underway to assess the feasibility and identify gaps in the transportation and monitoring, and storage of captured carbon dioxide and monetising it as a source of revenue.

“We are looking at our depleted fields, abandoned wells and exploring using these fields for storing either carbon or gas. We have shortlisted five. Studies are underway to see how CO₂ behaves when injected into these rock formations,” said Rath.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)