ONGC may invest $20 bn to set up 2 petchem plants

Oil & Natural Gas Corp. Ltd (ONGC) is considering investing around $20 billion to set up two petrochemical projects in India, either independently or in partnerships with other companies, chairman and chief executive officer Arun Kumar Singh said

- Rituraj Baruah & Utpal Bhaskar

Establishing a large petrochemical plant is likely to cost around $10 billion, Singh said. “We may do it on our own or in a JV (joint venture). It depends on economics and what happens in respective states," he said in an interview on 25 August.

Noting that the company is looking at sites to set up the planned projects, Singh said the new plants will likely be announced in the current financial year.

Demand for petrochemicals, the building blocks for plastics, fertilizers and pharmaceuticals, is expected to remain robust 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.