In order to prepare for the energy shift, India’s largest oil and gas producer, ONGC, plans to invest over Rs 1 lakh crore in building two petrochemical factories that will transform crude oil directly into high-value chemical goods, senior company officials announced on Wednesday.
One of the main energy sources is crude oil, which is extracted by businesses like ONGC from subterranean reservoirs and beneath the seabed. To create petrol, diesel and jet fuel, it is processed in oil refineries. Companies all over the world are searching for innovative ways to use crude oil as the world looks to move away from fossil fuels.
Petrochemicals are chemical compounds that are created from crude oil and are utilized in the production of man-made plastics, detergents, and fibers such as polyester, nylon, and acrylic.
Because petrochemicals are used in so many large-scale industries, such as electronics, automotive, and construction, there is expected to be a sustained need for these building blocks of plastics, fertilizers, and pharmaceuticals. The state-run oil explorer will be able to reduce its long-term dependency on the erratic oil market and increase profitability by fortifying its chemicals sector.
The Rs 1 lakh crore that ONGC has committed to investing in energy transition projects by 2030—which will enable it to reach net zero carbon emissions by 2038—is unrelated to the investment in O2C facilities. To achieve net zero, a corporation must balance the amount of greenhouse gases it releases into the atmosphere with the amount it removes. By 2030, ONGC wants to increase the size of its renewable portfolio to 10 GW.