Oil and Natural Gas Corporation (ONGC) expects its natural gas production to grow by 7-8 percent annually as new wells come online and gas output increasingly overtakes crude oil production. Chairman Arun Kumar Singh said new well gas could account for up to 36 percent of total output in the near term, supported by ₹33,000 crore offshore investments, policy reforms, and enhanced recovery initiatives.
Key Highlights
✅ ONGC expects natural gas output to grow 7-8% annually with new wells entering production.
✅ ₹33,000 crore worth of offshore projects are being executed to sustain and enhance output.
✅ New well gas already contributes about 25% of production and may rise to 30-36%.
✅ ONGC Green targets nearly 3 GW renewable energy capacity next year.
New Delhi, June 21: State-run energy major Oil and Natural Gas Corporation (ONGC) is optimistic about the future of its natural gas business, with the company projecting annual gas production growth of 7-8 percent as several new wells are scheduled to begin production during the next financial year. The development reinforces ONGC’s strategic shift toward becoming a more gas-focused energy company amid rising domestic demand and supportive government policies.
ONGC Chairman Arun Kumar Singh stated that production from ‘new well gas’ is increasing rapidly and currently contributes around one-fourth of the company’s total gas output. This share is expected to rise to 30-36 percent in the near future, eventually becoming the dominant source of gas production as output from mature fields naturally declines.
The company continues to maintain an aggressive exploration and development programme, drilling approximately 500 wells annually, including exploratory and production wells. ONGC also reported a reserve replacement ratio exceeding 1.1 in FY25-26, indicating that it is successfully adding more reserves than it produces, thereby strengthening its long-term resource base.
To sustain production growth, ONGC is executing offshore projects worth nearly ₹33,000 crore. These investments are focused on boosting production from key offshore assets and improving recovery rates from mature fields, particularly in the Western Offshore region, which remains the backbone of the company’s hydrocarbon production.
A major component of this strategy is the ongoing Technical Service Partnership (TSP) with global energy major BP, aimed at enhancing production efficiency and maximizing output from Western Offshore assets. According to Singh, the collaboration has already delivered encouraging operational improvements.
While ONGC expects its crude oil production to remain largely stable, the company sees natural gas as the principal driver of future growth. Singh emphasized that favorable government measures such as reduced royalties, market-linked gas pricing reforms, and support for deepwater exploration have significantly improved the economics of upstream gas production.
The company’s international portfolio also remains a key contributor. Production from Russia’s Sakhalin project continues to remain stable, while the Mozambique LNG project is progressing toward a potential completion timeline of 2028. ONGC also expects higher output from its Venezuelan assets if regulatory conditions become more favorable.
Beyond conventional hydrocarbons, ONGC is focusing on diversification. The company expects improved performance from its petrochemical subsidiary OPaL (ONGC Petro additions Limited) and accelerated growth in ONGC Green, which aims to achieve nearly 3 GW of renewable energy capacity by next year.
Conclusion
ONGC’s growing emphasis on natural gas reflects a significant transformation in India’s largest energy producer. Supported by strong policy reforms, expanding offshore investments, rising domestic demand, and renewable energy diversification, the company is positioning gas as the key driver of its future growth while maintaining long-term energy security objectives.
