Oil & Natural Gas Corporation Energy Centre Trust and Engineers India Limited have joined forces to establish a groundbreaking Helium Recovery Demonstration Plant at ONGC's Kuthalam Gas Collection Station in Tamil Nadu. The collaboration, formalized through an agreement signed on August 18, 2025, marks a significant step towards enhancing India's capabilities in high-value gas production.

Project Details

The ₹39.42 crore project aims to leverage technology developed by CSIR-Indian Institute of Petroleum to recover Grade-A Helium with an impressive purity of 99.995% from natural gas. This initiative is set to bolster India's position in the global helium market, potentially reducing the country's reliance on imports for this critical resource.

Technical Specifications

The demonstration plant is designed with the following specifications:

Scope of Work

The project encompasses a comprehensive approach, including:

1. Preparation of a Detailed Project Report
2. Development of a Basic Engineering Design Package
3. Execution through EPCM (Engineering, Procurement, and Construction Management) and Supply model

Strategic Importance

This collaborative effort between ONGC Energy Centre Trust and Engineers India Limited is poised to play a crucial role in building indigenous capabilities for helium production. Currently, India imports helium for various high-tech applications, including:

• Space exploration
• Semiconductor manufacturing
• Cryogenics
• Fiber optics production
• Medical technologies

The success of this demonstration plant could pave the way for reduced dependence on helium imports and position India as a potential producer of this valuable gas.

Industry Impact

The establishment of the Helium Recovery Demonstration Plant represents a significant advancement in India's gas processing capabilities. If successful, this project could open new avenues for the country in the global helium market, potentially leading to economic benefits and enhanced technological self-reliance.

As the project unfolds over the next 18 months, it will be closely watched by industry experts and policymakers alike, given its potential to transform India's position in the high-value gas sector.

Oil & Natural Gas Corporation (ONGC) anticipates the force majeure on the Mozambique LNG project to be lifted during the August-September timeframe, signaling potential progress for the long-delayed liquefied natural gas venture. This development comes as ONGC reports a robust financial performance for the first quarter.

Mozambique LNG Project Update

An ONGC executive expressed optimism about the Mozambique LNG project, stating that the force majeure status affecting the operations is expected to be removed in the coming months. The project, which has faced significant delays due to security concerns, could see renewed activity if the force majeure is indeed lifted.

Q1 Financial Highlights

ONGC's financial results for the quarter showcase a strong performance:

• Consolidated Net Profit: ₹11,554.00 crore, up 18.2% year-on-year
• Revenue from Operations: ₹163,108.00 crore, down 3.5% from ₹168,968.00 crore in the same quarter last year
• Earnings Per Share: ₹7.79, compared to ₹7.93 in the same quarter last year

Segment Performance

Other Key Developments

1. Renewable Energy Expansion: The Board of Directors has approved an investment of ₹4,963.06 crore for setting up a 0.6 GW (300 MW Solar and 300 MW Wind) renewable power project by 2028.

2. Exploration Success: ONGC declared two new discoveries in offshore blocks during the quarter, including a prospect named "Vajramani" and a new pool discovery in the Mukta Formation.

3. Production Performance: Standalone crude oil production increased by 1.2% to 4.683 MMT compared to the same period last year.

4. Gas Price Realization: The price for nomination gas increased to $6.64/mmbtu, up from $6.50/mmbtu in the previous year.

ONGC's Chairman and Managing Director commented, "Our strong Q1 performance reflects the company's resilience and operational efficiency. The potential lifting of force majeure on the Mozambique LNG project is a positive development, and we remain committed to our strategic goals, including the expansion of our renewable energy portfolio."

As ONGC navigates the evolving energy landscape, the company continues to focus on both its core hydrocarbon business and diversification into renewable energy sources, positioning itself for sustainable growth in the years ahead.