Oil & Natural Gas Corporation has signed an MoU with the Karnataka government for developing the coastal special economic zone in Mangalore. The project is estimated to cost around Rs.25,000 crore.

ONGC would import about 10 million tonnes of rich liquefied natural gas for the proposed petrochemical project, 1,500 MW gas-based power project and its Mangalore Refinery & Petrochemicals.

The company propose to build a coastal hub based on LNG. The imported LNG would be processed for extraction of feedstock for power generation, petrochemical units and the company's 12 million tonnes refinery.

ONGC also plans to supply lean gas to Bangalore and Chennai via Hassan SEZ in Karnataka by laying a gas pipeline adjacent to the existing national highway, using the right was available in MHBPL pipeline. The gas would be supplied for enhancing gas consumption in diverse sectors, including power, fertiliser, captive power plants and domestic fuel and CNG.