ONGC to Invest Rs 1 lakh cr for Petchem Expansion

The Oil and Natural Gas Corporation (ONGC) is planning to invest Rs one lakh crore by 2030 towards expansion of its petrochemicals manufacturing capacity. This will include setting up new facilities to produce chemicals directly from crude.

With this, the combined petrochemicals capacity of MRPL and OPaL is targeted to reach more than double to eight million tpa by 2030. Under the expansion plan, two mega projects, one each on the eastern and the western coast, will be set up, wherein the facilities will either directly use crude to produce chemicals or take other feedstocks. The crude produced in the country by ONGC could also be utilized as feedstock for its crude-to-chemical facility.

ONGC's plans are likely to be implemented by its subsidiary, Mangalore Refinery and Petrochemicals (MRPL), and its joint venture (JV) ONGC Petro additions (OPaL).

The petrochemical segment has wider applications and it is expected that its usage may last longer than regular transportation fuels. Further, the move is aligned to the government’s thrust to propel India to become a major petrochemical hub in the world.