ONGC to Store CO2 in Depleted Wells at Gujarat's Gandhar field in First CCS Pilot

Oil and Natural Gas Corporation (ONGC) plans to store captured carbon dioxide in depleted wells at Gujarat's Gandhar oilfield, marking the company's first full-scale Carbon Capture and Storage (CCS) pilot and a major step in its decarbonisation strategy.

The pilot will use two abandoned onshore wells to inject around 100 tonnes of CO2 per day into subsurface hydrocarbon reservoirs, officials said.

CO2 will be captured from nearby industrial sources in the Dahej area as well as ONGC's own Hazira plant, transported to the Gandhar wells and injected underground to prevent it from entering the atmosphere. The project also aims to test using CO2 to enhance oil recovery, turning a potentially harmful greenhouse gas into a productive resource, they said.

ONGC had previously sourced CO2 from Indian Oil Corporation's Koyali refinery, roughly 80 km away, for injections into the well.

CO2 in the earth's atmosphere contributes significantly to global warming as a greenhouse gas. India is the 3rd largest emitter of CO2 in the world after China and the US, with a 2022 NITI Aayog report putting annual emissions at about 2.6 gigatonne.

India has committed to reducing CO2 emissions by 50 per cent by 2050 and reaching net zero by 2070.

Carbon Capture, Utilisation and Storage (CCUS) is emerging as a critical decarbonisation tool for hard-to-abate industrial sectors, where emissions cannot be eliminated through electrification alone. In these industries, fossil fuels are used not only as an energy source but also as an integral part of production processes, making CCUS essential to achieving deep emissions reductions.

ONGC plans to engage a specialised CCUS consultant for technical advisory, regulatory guidance, and detailed feasibility studies to ensure safe and effective implementation.

Officials said depleted reservoirs like Gandhar provide ideal geology for long-term CO2 storage, enabling emissions reduction from legacy oil and gas operations while leveraging existing infrastructure.

The pilot project will demonstrate the scalability as well as integrated approach for decarbonising hard-to-abate industrial sectors, enhancing oilfield productivity, and producing blue hydrogen - offering immediate operational gains and long-term strategic value for India's energy transition.

ONGC had in December 2022 signed a Memorandum of Understanding (MoU) with Shell to cooperate in CCUS studies, focusing on joint CO2 storage study and EOR screening assessment for key basins in India, including depleted oil and gas fields and saline aquifers.

Officials said Shell may be involved in the pilot project at some stage.

ONGC plans to hire a specialised CCS consultant with comprehensive expertise in carbon capture, transportation, storage and monitoring technologies. The consultant will provide end-to-end technical advisory, regulatory guidance, and feasibility studies along with cost estimates related to the CCS pilot project.

The company has committed $12 billion investment in carbon capture and energy transition projects. These investments will help the fossil fuel giant to reach net zero emissions across its Scope 1 and Scope 2 operations by 2038.