(MENAFN- KNN India)
New Delhi, Sep
4 (KNN) India's Oil and Natural gas Corporation (ONGC) is in the preliminary stages of planning a multibillion-dollar refinery and petrochemical complex in Uttar Pradesh, signalling a strategic move to bolster its presence in the downstream sector amid surging fuel demand across the country.
According to sources with direct knowledge of the developments, ONGC is considering an investment exceeding Rs 700 billion for a refinery with an annual capacity of 9 million tons.
This project marks a significant expansion for ONGC as it seeks to capitalise on the increasing consumption of crude oil and petrochemicals in India, one of the fastest-growing major economies in the world.
The proposed refinery is poised to be one of ONGC's most ambitious ventures, potentially establishing Uttar Pradesh as a key hub in India's energy landscape.
Discussions have already been initiated with Bharat Petroleum Corporation Ltd (BPCL), which could become a pivotal partner in this endeavour.
BPCL owns a strategic parcel of land in Prayagraj, Uttar Pradesh, where the refinery could be sited, providing ONGC with a crucial advantage in avoiding the common pitfalls of land acquisition delays that plague large infrastructure projects in India.
The collaboration between ONGC and BPCL, if realized, could significantly streamline the project's execution, leveraging BPCL's existing resources and ONGC's extensive expertise in the energy sector.
The Prayagraj site's strategic location could also enhance the project's feasibility, aligning with ONGC's broader strategy to expand its refining capacity to meet the burgeoning domestic demand.
India's energy sector is at a crossroads, with crude oil and petrochemical consumption rising sharply even as the country ramps up its renewable energy initiatives.
The proposed refinery in Uttar Pradesh reflects ONGC's efforts to balance these competing demands, positioning itself to meet future energy needs while reinforcing its role in India's economic growth.
Meanwhile, BPCL is also weighing its options for a new refining and petrochemical unit, considering both Andhra Pradesh and Uttar Pradesh as potential sites.
The company has engaged a US-based consultancy to conduct a comprehensive site selection study. Although Andhra Pradesh has emerged as a favourable candidate due to the state's promise of incentives, the availability of BPCL's land in Uttar Pradesh could sway the decision in favour of a partnership with ONGC.
Should these plans come to fruition, the ONGC-BPCL collaboration could result in one of India's most significant energy infrastructure projects in recent years, further consolidating the country's position as a major player in the global oil and petrochemical markets.
(KNN Bureau)
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