Oil and Natural Gas Corporation (ONGC) has unveiled a strategic Carbon Capture and Storage (CCS) pilot at its Gandhar oilfield in Gujarat, marking a significant milestone in India’s energy transition and decarbonisation efforts.
The state-owned energy giant plans to store captured carbon dioxide (CO₂) in depleted onshore wells, injecting approximately 100 tonnes of the greenhouse gas each day into subsurface hydrocarbon reservoirs. This pilot represents ONGC’s first full-scale CCS initiative and is designed to reduce emissions while exploring innovative ways to repurpose CO₂.
Pilot project: Capturing CO₂ and reducing emissions
The CCS pilot will involve two abandoned wells at the Gandhar field. CO₂ will be captured from nearby industrial sources in the Dahej area and ONGC’s own Hazira plant before being transported to the Gandhar location for underground injection. By sequestering CO₂ below ground, ONGC aims to prevent harmful emissions from entering the atmosphere and contributing to climate change.
In addition to storage, the project will test the feasibility of using captured CO₂ to enhance oil recovery — a technique that could make previously mature or declining oilfields more productive. If successful, this approach could turn a traditional pollutant into a useful tool for oilfield optimisation.
A strategic step in decarbonisation
Carbon dioxide is one of the most significant greenhouse gases responsible for global warming. India is currently the third-largest emitter of CO₂ globally, following China and the United States, with annual emissions estimated at around 2.6 gigatonnes.
To meet its climate commitments — including halving emissions by 2050 and achieving net zero by 2070 — India is increasingly exploring technologies like Carbon Capture, Utilisation and Storage (CCUS) that can reduce industrial emissions in sectors where electrification is not yet feasible. The ONGC pilot aligns with this broader national strategy and adds momentum to India’s clean energy roadmap.
Engaging technical expertise and partnerships
ONGC plans to bring in a specialised CCUS consultant to advise on technical, regulatory and feasibility aspects of the project, ensuring that storage and monitoring systems meet international safety and performance standards.
Officials highlight that depleted reservoirs such as those at Gandhar offer ideal geological conditions for secure, long-term CO₂ storage. These formations reduce the risk of seepage and leverage existing infrastructure, making them practical candidates for emissions sequestration.
The pilot is also expected to underscore the potential scalability of CCS technology across other hard-to-abate sectors, including heavy industry and refining operations where fossil fuels remain integral to manufacturing processes.
International collaboration and energy transition goals
ONGC and Shell have been in collaboration since December 2022, having signed a Memorandum of Understanding (MoU) focused on CCUS research and joint assessments of potential storage sites. Shell may take part in the Gandhar pilot at a later stage, adding global expertise to the projec
Investments in CCUS technologies are expected to play an important role in India’s broader energy transition. ONGC has committed substantial capital — reportedly around USD 12 billion — to carbon capture and other energy transition initiatives, with the aim of reducing Scope 1 and Scope 2 emissions across its operations by 2038.
Environmental and economic impact
By integrating CCS into its operations, ONGC not only reduces its carbon footprint but also explores potential commercial benefits. Enhanced Oil Recovery (EOR) using CO₂ can extend the productive life of ageing oilfields and reduce the environmental impact of fossil fuel extraction. Additionally, the project may contribute to the development of blue hydrogen — a low-carbon fuel produced using natural gas with captured carbon emissions — offering further strategic value in India’s drive towards sustainable energy solutions.
Looking ahead
The Gandhar CCS pilot is being closely watched by industry stakeholders and policymakers alike as a potential blueprint for carbon management in India’s hydrocarbon sector. If successful, it could open doors to broader deployment of CCS and CCUS technologies nationwide, supporting India’s climate goals while preserving energy security and industrial competitiveness.
