ONGC to Build Two New Petrochemical Plants

SEATTLE (Oil Monster): The state-owned Oil and Natural Gas Corporation (ONGC) announced plans to set up two new petrochemical plants. The plants, aimed at converting crude oil directly into high-value chemical products, will be built at an investment of around INR 1 lakh crore, said company officials.

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During the investor meet on the sidelines of the announcement of the company’s second quarter earnings, Pomila Jaspal, Finance Director noted that the firm is eager to build separate oil-to-chemical (O2C) projects. However, she declined to provide further details about the plan.

The company executive further noted that the plan is to invest INR 10,000 crore by 2028 or 2030 in two projects in two different states. One of the project will be set up by ONGC alone, whereas the second project will be implemented as a joint venture. The company aims to raise its total petrochemical capacity to approximately 9 million tonnes by 2030. The demand for petrochemical is expected to remain strong on account of its wide range of uses by various sectors including construction, automotive and electronics, he added.

The increased focus on chemicals business will help ONGC to cut its reliance on the volatile oil market and thus boost its overall long-term profitability.