India, May 28 -- State-run oil and gas producer ONGC said it expects natural gas to become an increasingly dominant and profitable part of its business as new high-priced gas production ramps up and domestic demand continues to rise.

Speaking at an investor call, ONGC chairman and CEO Arun Kumar Singh said the company now produces and sells more gas than oil, with gas contributing higher earnings because of favourable pricing reforms and lower handling costs.

'New well gas' - production from newly drilled wells that receive pricing linked to 12 per cent of crude oil prices - accounted for roughly 20 per cent of gas volumes last year and is expected to rise to 25-30 per cent this year before climbing further over the next few years.

"At...