ONGC, Indian Oil ink pact for petrochemicals

16 Jun 2023 , 10:35 AM

ONGC, India’s largest oil and natural gas producer, has agreed to explore petrochemical opportunities with Indian Oil Corporation (IOC), the country’s largest oil refining and fuel marketing company.

ONGC and IOC ‘signed a memorandum of understanding (MoU) to explore downstream opportunities, particularly in petrochemicals, through both greenfield projects and acquisitions.”

ONGC produces two-thirds of the nation’s oil for refinement into fuels like petrol and diesel, as well as more than half of the petrol used to make fertilizer and converted into CNG, already has two downstream petrochemical plants via subsidiaries.

Oil companies worldwide are transforming themselves as countries shift from polluting fossil fuels to cleaner energy sources such as hydrogen and electric-powered vehicles.

India is expected to experience a significant increase in the demand for petrochemicals due to its lower per capita consumption compared to the global average.

According to the picture shared by ONGC on Twitter, the Memorandum of Understanding (MoU) was signed by Deb Adhikari, ONGC’s executive director for new ventures, and Arvindar Singh Sahney, IOC’s executive director for petrochemicals, during the signing ceremony.

According to reports, the company is planning to invest Rs 1 lakh crore by 2030 to enhance its manufacturing capacity in the petrochemicals sector.

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