In a groundbreaking move, the Oil and Natural Gas Corporation (ONGC) commits a staggering $1.2 billion to construct two cutting-edge petrochemical complexes in India. Let’s delve into the strategic landscape of ONGC‘s investment, exploring the motives, anticipated impacts, and the broader context of India‘s burgeoning petrochemical industry.
Scheduled for completion by 2028 or 2030, these ambitious projects intend to catapult ONGC‘s petrochemical capacity from its current 3.4 million tons per annum (tpa) to an impressive 8.5-9 million tpa. As part of its growth strategy, ONGC is actively seeking dynamic joint venture partners for at least one of these groundbreaking projects. The company, guided by the International Energy Agency’s projection, envisions the petrochemical industry driving a substantial one-third of oil demand growth by 2030.
In its recently unveiled annual report for the financial year 2022-23, ONGC unveiled its meticulous exploration of diverse options aimed at amplifying petrochemical production capacity. However, it’s crucial to note that regulatory approval for these ambitious petrochemical ventures is pending, awaiting the nod from regulators and concerned ministries.
ONGC is not alone in its pursuit of petrochemical prowess. Numerous state-owned Indian energy conglomerates are fervently investing in petrochemical activities to bridge the supply-demand gap and fortify the nation’s resilience in the face of rising consumer demand. The Indian petrochemical landscape is poised to witness a surge of approximately US$144 billion in new projects, underscoring the nation’s dedication to addressing domestic supply shortages.
For insights into ONGC‘s existing capabilities, one need look no further than the petrochemical complex in Dahej, Gujarat, operated by OPaL. This facility serves as a testament to ONGC‘s prowess, producing a spectrum of essential products that contribute to the broader industrial landscape.
The Dahej complex boasts an impressive annual production capacity, playing a pivotal role in manufacturing key petrochemical products. Among its notable outputs are:
The complex also contributes significantly with:
While the petrochemical industry faces global scrutiny due to environmental concerns, the Dahej complex’s diverse production aligns with the evolving landscape. With the world, including India, emphasizing sustainable practices, the petrochemical sector is adapting to reduce environmental impact.
ONGC‘s strategic foray into the petrochemical frontier signifies not just growth but a commitment to innovation and sustainability. As India primes itself for a petrochemical renaissance, ONGC stands at the forefront, ready to shape the future of the nation’s industrial landscape.