ONGC, India's largest oil and gas producer, plans to build two oil-to-chemical plants in India to convert crude oil directly into high-value chemical products as it prepares for the energy shift that is shaking up the industry globally, according to chairman Arun Kumar Singh.

Crude oil, which businesses such as ONGC extract from beneath the seabed and underground reservoirs, is a main source of energy. It is refined into petrol, diesel, and jet fuel in oil refineries.

Companies all across the world are exploring for innovative ways to use crude oil as the world moves away from fossil fuels.

Petrochemicals are chemical byproducts of crude oil that are used in the production of detergents, textiles, polythene, and other man-made polymers.

"The demand for petrochemicals is expected to remain strong and will continue to be a key driver of oil and gas demand in the future," Singh said in the firm's latest annual report. "With this objective, ONGC is collaborating with other entities to explore opportunities in the oil to chemical (O2C), refining, and petrochemicals. We are also planning to set up two greenfield O2C plants in India."