📋 Tender Overview
Scope : Setting up Two Petrochemical Plants in India
India's top oil and gas producer ONGC plans to invest in setting up petrochemical plants to convert crude oil directly into high-value chemical products as it prepares for energy transition.
Crude oil, which companies like ONGC pump out from below seabed and underground reservoirs, is a primary source of energy. It is processed in oil refineries to produce petrol, diesel and jet fuel. With the world looking to transition away from fossil fuels, companies around the globe are looking at new avenues to use crude oil.
Petrochemicals are chemical products derived from crude oil and used in the manufacturing of detergents, fibres (polyester, nylon, acrylic etc.), polythene and other man-made plastics.
At an investor call on the company's second-quarter earnings, Oil and Natural Gas Corporation (ONGC) Director (Finance) Pomila Jaspal said the firm is looking to build separate oil-to-chemical (O2C) projects.
They have plans to invest ?1,00,000 crore by 2028 or 2030 in two projects in two separate states.
One project is likely to be set up by ONGC on its own and the other in a joint venture
Demand for petrochemicals, the building blocks for plastics, fertilisers and pharmaceuticals, is projected to remain strong due to their wide range of uses across large industries, including construction, automotive and electronics. Strengthening its chemicals business will also help the state-run oil explorer cut its reliance on the volatile oil market and improve profitability in the long run.
