India’s largest oil and gas producer, Oil and Natural Gas Corporation Limited (ONGC), is looking to expand its business in refining, petrochemicals, LNG trading, and renewable energy as it anticipates lower oil prices due to a potential supply surplus.
Arunangshu Sarkar, ONGC’s director for strategy, shared in an interview with Bloomberg that the global oil market is heading toward a supply glut, which could drive prices down.
“In a low oil-price environment, it will be challenging for a company like ONGC to survive,” Sarkar explained. “These new business ventures will act as a safeguard against that scenario.”
To prepare for these changes, ONGC is already working to secure LNG regasification capacity along India’s western coast and is in talks with city distributors for gas off-take agreements.
The company is also exploring the idea of building a refinery, though details are still scarce as the project is in the early stages. Last year, reports suggested that ONGC was considering an $8.3 billion refinery and petrochemicals project in Uttar Pradesh, India’s most populous state, to tap into growing fuel demand.
Sources familiar with the matter revealed that ONGC has been in discussions with Bharat Petroleum Corporation Ltd (BPCL) about a potential refinery in Prayagraj, a major district in Uttar Pradesh.
In addition to refining, ONGC is planning significant investments in clean energy. The company aims to invest up to $11.66 billion (1 trillion Indian rupees) in renewable energy by 2030. ONGC’s director of finance, Vivek Chandrakant Tongaonkar, shared that the company intends to develop a renewable energy portfolio of 10 gigawatts by the end of the decade.
ONGC currently accounts for about 70% of India’s oil and gas production and is making moves to ensure its future growth amid changing global energy markets.
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