Mumbai: Indias leading oil and gas producer and explorer ONGC is planning to invest approximately Rs 1 lakh crore in setting up two petrochemical plants aimed at directly converting crude oil into high-value chemical products, Moneycontrol reported.
During an investor call discussing the companys second-quarter earnings, Pomila Jaspal, Director (Finance) of Oil and Natural Gas Corporation, revealed that the company is exploring the development of separate oil-to-chemical (O2C) projects, the report said.
While one project is expected to be undertaken solely by ONGC, the other might be established through a joint venture, although specific details were not disclosed during the call.
Petrochemicals, which are chemical products derived from crude oil, find applications in the production of detergents, fibers (such as polyester, nylon, acrylic, etc.), polythene, and other synthetic plastics.
The demand for petrochemicals, essential in the manufacturing of plastics, fertilizers, and pharmaceuticals, is expected to remain robust due to their diverse uses in various industries like construction, automotive, and electronics.
By strengthening its presence in the chemicals sector, ONGC aims to reduce its dependence on the volatile oil market and enhance long-term profitability.
Currently, ONGC already manages two subsidiariesMangalore Refinery and Petrochemicals Limited (MRPL) and ONGC Petro-Additions Limited (OPaL)that operate petrochemical units in Mangalore, Karnataka, and Dahej, Gujarat, respectively.
