ONGC evaluates ownership models for new greenfield refinery and petrochemical hub

Oil and Natural Gas Corporation Ltd is currently exploring several structural options for a proposed greenfield refinery and petrochemical complex, including independent development, creation of a subsidiary, or partnering with foreign investors. According to a senior ONGC official, the project remains in its initial phase, with decisions on working model, location, capacity and configuration to be finalized after a detailed feasibility report is completed.

The refinery is projected to have a higher petrochemical intensity to satisfy growing domestic demand, and its exact investment needs will be clarified once the report is ready. This initiative forms part of ONGC’s broader diversification and integration strategy, mirroring similar greenfield projects by BPCL in Andhra Pradesh, IOCL-CPCL in Tamil Nadu, and HPCL in Rajasthan. Additionally, ONGC is pursuing a role in expanding India’s strategic petroleum reserve, having received approval to develop a 1.75-million-tonne facility in Mangaluru, estimated at around Rs 7,000 crore. Foreign interest from Saudi Arabia and the UAE has been noted for Indian refinery projects, contingent on attractive returns.