Communicator

New Delhi – India's Oil and Natural Gas Corporation (ONGC) is actively seeking strategic partners to ensure a stable supply of ethane feedstock for its ONGC Petro additions Ltd (OPaL) petrochemical complex in Dahej, Gujarat.

ONGC has issued an expression of interest (EOI) to collaborate with companies experienced in the operation and management of very large ethane carriers (VLECs), very large gas carriers, and liquefied natural gas carriers. This initiative aims to secure the necessary infrastructure for transporting 800,000 tonnes per year of ethane, which OPaL requires from May 2028 onwards.

OPaL operates a dual-feed cracker capable of producing 1.1 million tonnes per year of ethylene and 400,000 tonnes per year of propylene. The facility relies on a mix of naphtha and C2, C3, and C4 feedstock.

ONGC's plan involves establishing a joint venture company that will handle funding and the construction of VLECs. ONGC will then charter these vessels to transport its ethane requirements.

Interested parties have until March 27th to submit their proposals.

#opal  #ongc  #india  #vlec  #steamcracker  #ethane  #lpg 

Aug 28, 2024 | Offshore Technology

The venture, estimated to cost more than $10bn (Rs839.48bn), is in discussion with ONGC and its subsidiary HPCL.

The Chatterjee Group (TCG), a US-based private equity firm, is seeking a partnership with Indian state-run companies for an oil-to-chemicals project in Cuddalore, Tamil Nadu, reported Bloomberg, citing sources. TCG is in discussion with Oil & National Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum Corporation (HPCL). The proposal suggests the state companies collectively hold a 49% stake in the project – estimated to cost more than $10bn – while TCG, which operates in India through Haldia Petrochemicals, would retain the remaining 51% share. TCG’s project aims to produce 3.5mtpa of ethylene and propylene.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. Haldia Petrochemicals currently operates a petrochemical plant in eastern India and is developing the nation’s largest integrated phenol project in West Bengal’s Haldia.

The potential investment reflects India’s focus on expanding petrochemical capacities, providing essential materials for a range of products from consumer goods to automotive components. As per government estimates, the demand for chemicals and petrochemicals in India is projected to triple to $1trn by 2040. Oil refiners, including Reliance Industries led by Mukesh Ambani, are shifting their production focus towards petrochemicals over traditional fuels to cater to the increasing demand for specialty plastics and chemicals used in solar panels and electric vehicles.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. In other development, ONGC has recently been granted government approval for an additional investment of $2.19bn into its petrochemical unit ONGC Petro Additions.

#haldia  #chatterjeegroup  #india  #cotc  #oiltochemical  #hplc  #ongc  #reliance  #ethylene  #propylene  #petrochemicals  #oilrefining  #petroadditions