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State-run energy major ONGC will create a wholly-owned subsidiary to focus on its company's gas and LNG business.

Its Board of Directors has given its nod for the creation of the subsidiary company subject to necessary approvals.

"The company will be formed with the objective of sourcing, marketing and trading of natural gas, LNG business, Hydrogen-enriched CNG, gas to power business, bioenergy/biogas/biomethane/other bio fuels business etc," ONGC said in statement.

On Saturday, the diversified energy major reported a decline of 67.4 per cent in its standalone net profit for Q3FY21 on a year-on-year basis.

According to the company, the standalone Q3FY21 net profit fell to Rs 1,378 crore as against Rs 4,226 crore reported during the corresponding period of previous fiscal.

Similarly, gross revenue declined 28.2 per cent to Rs 17,024 crore as against Rs 23,710 crore in FY20.

"Despite countrywide lockdown due to Covid-19 pandemic, ONGC has almost reached last year's production levels in case of crude oil from its operated blocks," the company said in a statement.

"The shortfall in gas production is primarily due to less offtake by customers due to Covid-19 pandemic," it added.