New Delhi: Oil and Natural Gas Corporation (ONGC), India’s leading oil and gas producer, has unveiled plans to invest approximately ₹1 lakh crore in the establishment of two petrochemical plants. This strategic initiative aims to directly convert crude oil into high-value chemical products, positioning ONGC for a transition in the evolving energy market.
Crude oil, traditionally processed in refineries to produce fuels like petrol, diesel, and jet fuel, is transitioning as the world looks to move away from fossil fuels. ONGC’s response to this shift is the development of oil-to-chemical (O2C) projects in two separate states, with an investment target of ₹1,00,000 crore by 2028 or 2030.
During an investor call, ONGC Director (Finance) Pomila Jaspal highlighted the company’s vision to build separate O2C projects, intending to raise petrochemical capacity to 8.5-9 million tonnes by 2030. Specific details about these projects were not disclosed during the call.
ONGC already operates two subsidiaries, Mangalore Refinery and Petrochemicals Limited (MRPL) and ONGC Petro-Additions Limited (OPaL), which run petrochemical units in Karnataka and Gujarat, respectively.
ONGC Executive Director D Adhikari revealed plans to infuse ₹18,355 crore capital into OPaL, increasing ONGC’s stake to over 96%, aiming to correct the “distorted” capital structure of the subsidiary.
The International Energy Agency (IEA) anticipates a plateau in global oil demand by 2030, driven by the increasing adoption of electric vehicles and alternative drive technologies. ONGC aims to capitalise on this trend, embracing crude oil-to-chemicals (COTC) technology.
China and the Middle East currently dominate COTC plant operations, with Saudi Aramco and SABIC leading the way in processing Arabian Light crude oil.
