ONGC shifts to energy transition with oil-to-chemical plants
OIL & GAS

ONGC shifts to energy transition with oil-to-chemical plants

India's leading oil and gas producer, ONGC, has expressed intentions to establish two oil-to-chemical plants within the country, converting raw crude oil into high-value chemical products. This strategic move comes in response to the global energy transition that is reshaping the entire industry landscape, as stated by Arun Kumar Singh, the chairman. Singh indicated that crude oil, a crucial energy source, is extracted by entities such as ONGC from beneath the seafloor and subterranean reservoirs. Typically processed in oil refineries, it undergoes conversion to yield gasoline, diesel, and aviation fuel. However, given the global shift towards cleaner energy sources, there's a collective industry pursuit of innovative ways to utilise crude oil more sustainably.

Petrochemicals, being chemical derivatives of crude oil, play a pivotal role in producing items like detergents, synthetic fibres (such as polyester, nylon, acrylic), polyethylene, and various other synthetic plastics.

According to Singh's statement within the company's most recent annual report, "The demand for petrochemicals is anticipated to remain robust and will retain its status as a prime catalyst for oil and gas demand in the foreseeable future." He further elaborated that ONGC is actively collaborating with other entities to explore potential prospects in the realms of oil-to-chemical (O2C) ventures, refining, and petrochemicals. Additionally, ONGC is strategically planning to establish two new O2C facilities from scratch within India.

Currently, the company boasts two subsidiary firms—Mangalore Refinery and Petrochemicals, as well as ONGC Petro-Additions Limited—both of which operate petrochemical units in Karnataka's Mangalore and Gujarat's Dahej, respectively.

"In line with our diversification strategy, MRPL and OPaL are deeply committed to the petrochemical sector," outlined Oil and Natural Gas Corporation (ONGC) within its annual report for the fiscal year 2022-23. The report also highlighted that ONGC is engaged in collaborations with industry players to unearth opportunities within the Oil to Chemical (O2C) and Oil to Petrochemicals (O2P) domains.

Also read: 
Oil India upgrades to Maharatna, ONGC Videsh to Navratna
Essar Oil & Gas to Strengthen Ranigunj CBM Position


India's leading oil and gas producer, ONGC, has expressed intentions to establish two oil-to-chemical plants within the country, converting raw crude oil into high-value chemical products. This strategic move comes in response to the global energy transition that is reshaping the entire industry landscape, as stated by Arun Kumar Singh, the chairman. Singh indicated that crude oil, a crucial energy source, is extracted by entities such as ONGC from beneath the seafloor and subterranean reservoirs. Typically processed in oil refineries, it undergoes conversion to yield gasoline, diesel, and aviation fuel. However, given the global shift towards cleaner energy sources, there's a collective industry pursuit of innovative ways to utilise crude oil more sustainably. Petrochemicals, being chemical derivatives of crude oil, play a pivotal role in producing items like detergents, synthetic fibres (such as polyester, nylon, acrylic), polyethylene, and various other synthetic plastics. According to Singh's statement within the company's most recent annual report, The demand for petrochemicals is anticipated to remain robust and will retain its status as a prime catalyst for oil and gas demand in the foreseeable future. He further elaborated that ONGC is actively collaborating with other entities to explore potential prospects in the realms of oil-to-chemical (O2C) ventures, refining, and petrochemicals. Additionally, ONGC is strategically planning to establish two new O2C facilities from scratch within India. Currently, the company boasts two subsidiary firms—Mangalore Refinery and Petrochemicals, as well as ONGC Petro-Additions Limited—both of which operate petrochemical units in Karnataka's Mangalore and Gujarat's Dahej, respectively. In line with our diversification strategy, MRPL and OPaL are deeply committed to the petrochemical sector, outlined Oil and Natural Gas Corporation (ONGC) within its annual report for the fiscal year 2022-23. The report also highlighted that ONGC is engaged in collaborations with industry players to unearth opportunities within the Oil to Chemical (O2C) and Oil to Petrochemicals (O2P) domains. Also read:  Oil India upgrades to Maharatna, ONGC Videsh to Navratna Essar Oil & Gas to Strengthen Ranigunj CBM Position

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