Oil and Natural Gas Corporation (ONGC) and Indradhanush Gas Grid (IGGL) have signed three hook-up agreements, reported the Economic Times.

Under the agreements, IGGL will connect ONGC’s natural gas fields with the North East Gas Grid (NEGG) to facilitate the transportation of natural gas from ONGC’s assets in Jorhat, Silchar and Tripura to consumers.

IGGL, a joint venture between Indian Oil Corporation, ONGC, GAIL, OIL and Numaligarh Refinery, is building a 1,656km natural gas pipeline.

All eight of India's north-eastern states' capital cities and demand centres will be connected by the proposed pipeline.

IGGL director Sanjay Kumar said: “The hook-up agreements with IGGL is a strategic move to enhance the connectivity of ONGC fields with the Northeast Gas Grid, which will benefit both the companies.

“It will make domestic gas available to the customers and will contribute to the country’s economy as a whole. By leveraging the NEGG infrastructure, the hydrocarbon potential of north-east India can be fully utilised for the development of a gas-based economy in line with the Hydrocarbon Vision 2030 of the Government of India.”

According to IGGL CEO Ajit Kumar Thakur, both businesses will continue to look for ways to link additional ONGC gas fields with the NEGG in the future.

IGGL is also in talks with other natural gas producers to link their gas fields with NEGG.

Through the NEGG, the agreements will make it easier to withdraw 185,000 standard cubic metres per day (cmpd) from ONGC's Jorhat asset, 82,500cmpd from the Silchar asset and 7,00,000cmpd from the Tripura asset.