ONGC’s sustainability gameplan: Building an integrated energy giant

As India doubles down on its sustainability targets, companies across the country are moving fast to improve their own performance on this front. It’s no different at Oil and Natural Gas Corporation (ONGC), the country’s largest oil and gas producer, and the Disclosures & Transparency Leader in BT India’s Most Sustainable Companies 2026 ranking.

It has set a target of becoming an integrated energy company in the next 25 years with a transition road map that includes improving energy efficiency, flare reduction, adding renewable capacity, green hydrogen, green ammonia, compressed biogas, offshore wind, pumped storage and carbon capture, utilisation and storage (CCUS). For this transition, it expects to make a cumulative investment of Rs 2 lakh crore by 2038.

These are not isolated projects, they are sequenced across short, medium and long-term horizons. The road map looks at low hanging fruit for quick results. In the short term up to 2030, it is focusing on areas that can deliver credible and measurable impact early. This includes producing 3.89 GW of renewable energy, building 25 compressed biogas plants, setting up 0.5 GW offshore wind capacity and 1 GW pumped storage.

Besides, it is laying strong emphasis on reducing gas flaring, or the burning of the natural gas associated with oil extraction. This is done by capturing the gas instead of burning. It helps lower greenhouse gas emissions and prevent hazardous waste.

In the first phase, the company intends to reduce absolute emissions by 50%.

In the medium term, from 2030 to 2035, it plans to move deeper into newer energy systems, including green hydrogen and green ammonia, additional renewable capacity and pumped storage.

The long-term phase, leading up to 2038, all these are expected to come together to form a cohesive system through further offshore wind capacity, continued renewable build-out, additional green hydrogen and ammonia, and expansion of the CCUS infrastructure.

In this phase, in which ONGC aims to reach net zero operations for Scope 1 and Scope 2 emissions. These are direct and indirect greenhouse gas emissions. For this, it has set a baseline of 9 MTCO2e (million tonnes of carbon dioxide equivalent) reported in FY22.

Ratnesh Kumar, Executive Director of ONGC, says this is not a portfolio diversification exercise. “It is the deliberate construction of an integrated energy company for the next 25 years. For me, the central idea is simple: ONGC must remain reliable, responsible and forward-looking. Energy security and sustainability are the same goal, viewed across two different timeframes,” he says.

In this sustainability push, it is pulling out all stops to reduce emissions in every part of its operations. For instance, its leak detection and repair programme that has been running since 2008 has helped detect and arrest fugitive methane emissions of 1.47 MTCO2e.

“We monitor atmospheric methane across 166 ONGC locations using satellite data, and ground surveys are prioritised based on this intelligence,” says Kumar.

In terms of renewable energy capacity, ONGC has set up an interim target of 10 GW by 2030. Two recent acquisitions are important anchors in this regard: ONGPL, a 50:50 joint venture with NTPC Green Energy, acquired Ayana Renewable Power, adding approximately 4.1 GW of renewable assets, with ONGC’s share at around 2.05 GW. ONGC Green also acquired PTC Energy, which has 288 MW of operational wind capacity across Andhra Pradesh, Madhya Pradesh and Karnataka.

“We are also strengthening technology partnerships. Our MoU with BHEL covers the green hydrogen value chain, while our MoU with Tata Power Renewable Energy focuses on Battery Energy Storage Systems. We are developing compressed biogas plants at Hazira and Ankleshwar, evaluating Small Modular Reactors, discussing pumped storage with NHPC, and advancing CCUS in Gujarat,” Kumar adds.

ONGC is spearheading India’s first geothermal energy development through ONGC Energy Centre in Ladakh. This project aims to harvest heat directly from the Earth to generate power.

“For ONGC, innovation is not confined to laboratories. It happens on rigs, in wells in Ladakh, in satellite operation rooms and in village panchayats. That breadth is what makes ONGC the energy company India needs,” he signs off.

@richajourno