The CCUS project aims to reduce carbon emission and enhance oil recovery from domestic fields in the country


Image: Directors of ONGC (right) and IOC (left) exchange the MoU on the CCUS project. Photo: courtesy of Oil and Natural Gas Corporation Ltd.

Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation Limited (IOCL) have joined forces to implement a carbon capture utilization and storage project (CCUS project) in India with an aim to reduce carbon emissions and enhance oil recovery.

CCUS project to be launched in Gujarat

In this regard, the two Indian state-owned conglomerates have signed a memorandum of understanding (MOU) for starting a CO2 based enhanced oil recovery (EOR) programme by capturing CO2 from IOCL’s Koyali Refinery in the western Indian state of Gujarat.

The MOU’s aim is to improve hydrocarbon production from domestic fields and also to reduce the country’s carbon emission targets as defined in COP21.

According to ONGC, CCUS is considered to be a very effective method of EOR across the world and is becoming an important factor in achieving carbon neutrality.

ONGC said that the MOU will set up a framework for mutually beneficial cooperation between the two firms in the area of CO2-EOR as an approach for CCUS.

The common objective of the parties is to address the challenges of energy security and climate change in the country.

As part of the CCUS project, the parties aim to develop a CO2 capture plant at the Koyali Refinery, which will be equipped with appropriate carbon capture technology.

The collaboration will also focus on developing a business model, boosting domestic oil production through CO2-EOR at the Gandhar oil field in Gujarat. The partners will also work on inclusion of the CCUS project as part of national emission curtailment measure, which is aimed at supporting the low-carbon development goals of India.

ONGC said that technical feasibility of CO2-EOR has been set up for the Gandhar oil field, which indicates nearly 10% of incremental oil recovery.

The company, in a statement, said: “The project will add up a new dimension towards national vision of CCUS and will infuse a new life to the depleted matured oil fields of ONGC. The learning curve from this endeavor shall create a knowledge base to further expand deployment of CCUS in India.

“The success of CCUS in India will not only increase domestic oil production, but also cater to address India’s Nationally Determined Contributions of reducing the emission intensity of GDP by 33-35 per cent by 2030, as per Paris agreement.”