ONGC Eyes Future with Oil-to-Chemical Plants

India's largest oil and gas producer, ONGC, is planning to set up two oil-to-chemical plants in the country. The plants will convert crude oil directly into high-value chemical products, such as polymers, fertilize  rs, and plastics. This is a major shift for ONGC, which has traditionally focused on oil and gas exploration and production.

According to PTI, ONGC Chairman Arun Kumar Singh said that the company is preparing for the set up of these chemical plant for energy transition.

The move is a sign of ONGC's commitment to energy transition. The company is looking to diversify its business and reduce its reliance on fossil fuels. Oil-to-chemical plants are seen as a way to do both. They can help ONGC to meet the growing demand for chemicals, while also reducing its carbon emissions.

"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," Chairman mentioned earlier.

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ONGC is not the only oil and gas company that is investing in oil-to-chemical plants. Other companies, such as Saudi Aramco and Shell, are also making similar investments. This is because oil-to-chemical plants are seen as a way to future-proof the oil and gas industry.

The global market for chemicals is expected to grow at a compound annual growth rate (CAGR) of 4.5% till 2028. This growth is being driven by factors such as population growth, economic development, and rising demand for consumer goods. Oil-to-chemical plants are well-positioned to capitalize on this growth.

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ONGC's plans to set up oil-to-chemical plants are a significant development. They show that the company is serious about energy transition and that it is willing to invest in new technologies. This is good news for India, as it will help to reduce the country's reliance on imported oil and gas. It is also good news for the global chemical industry, as it will help to meet the growing demand for chemicals.

In addition to the environmental benefits, oil-to-chemical plants also offer several economic benefits. They can create jobs, boost exports, and generate revenue for the government. ONGC estimates that its two oil-to-chemical plants will generate $10 billion in revenue over the next 20 years.

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