ONGC Evaluates Standalone, Subsidiary and Joint Venture Models for Proposed Greenfield Refinery-Petrochemical Complex
Oil and Natural Gas Corporation Ltd (ONGC) is evaluating models for a proposed greenfield refinery and petrochemical complex. The options are setting it up independently, through a subsidiary, or in partnership with foreign players. The project is at an initial stage, and the working model is still being decided.
Location, configuration, capacity and investment will be finalised later. These details will be firmed up once the detailed feasibility report (DFR) is ready. The DFR will also assess the complex’s petrochemical configuration. The refinery is likely to have higher petrochemical intensity, in line with rising domestic demand.
Separately, ONGC has received approval to develop a 1.75-million-tonne strategic petroleum reserve (SPR) at Mangaluru, Karnataka. It will be an extension of the existing SPR facility. The project is estimated to cost about ₹7,000 crore and will be developed and financed by ONGC. ONGC has already acquired the land.
About half of the storage capacity is expected to be reserved for strategic use. ONGC has sought government approval to use the remaining capacity commercially. India currently has 5.33 million tonnes of SPR capacity across Visakhapatnam, Mangaluru and Padur. A further 6.5 million tonnes is planned under Phase II.
Other oil companies are also advancing refining projects. BPCL is developing a 9 mtpa greenfield refinery-cum-petrochemical complex at Ramayapatnam, Andhra Pradesh, with final environmental clearance expected soon. Indian Oil Corporation and its subsidiary Chennai Petroleum Corporation are setting up a 9 mtpa greenfield refinery at Nagapattinam, Tamil Nadu. HPCL commissioned a 9 mtpa greenfield refinery-cum-petrochemical complex in Rajasthan in July.
