Indian upstream company Oil and Natural Gas Corporation Ltd (ONGC) has proposed setting up mini power plants in Tamil Nadu state to help meet its growing power demand, according to an Infraline report. Briefing reporters after meeting the Tamil Nadu chief minister, ONGC chairman Subir Raha said that it owns eight gas wells in the state.

“Some of the fields are not near any gas pipeline and since the gas reserves are small, it will be viable to set up mini power plants rather than connect the gas reserves to the pipeline,” he said.

He has proposed using the gas to generate power using small gen-sets. The power can then be transmitted to the national grid.

“The entire process can either be taken up by TNEB or by ONGC. If we do it, we will need to tie-up with the government for lifting the power,” Mr Raha said.

Tamil Naidu’s chief minister has reportedly expressed her interest in the project as it involves clean power. Nine of its gas fields are closed because of lack of demand. ONGC has gas reserves near Courtallam near Thanjavur in Tamil Nadu.

Separately, Mr Raha also said that ONGC Videsh Ltd will sign a commercial agreement with the government of Sudan for two project: developing a 1,000 km product pipeline, and revamping and expanding a small refinery in that country at a cost of around $750 million.

“We are now working out the detailed feasibility report for the refinery upgrade while the pipeline report is ready,” he said.