Tag Archives | ONGC

New Mangalore refinery shelved

ONGC has taken a difficult but sensible decision. It has finally shelved plans for a new 15m tonnes/year refinery and petrochemical complex at Mangalore. The project had been facing considerable resistance from the local population. In addition, questions were being raised on the viability of the project. The sharp change in the global business environment […]

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Getting off the starting block

So the government has finally approved three Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs). Now comes the difficult part. Who is going to undertake mega investments at a time at a time when the global economic outlook is uncertain, demand for key chemicals has crumbled and not many are willing to stick their neck out […]

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New year ushers in new problems

December closed with ominous signs for the industry. Dow Chemical’s proposed commodity petrochemicals joint venture with Petrochemical Industries Co (PIC) was scrapped after strong protests from Kuwaiti opposition leaders who believed that the deal was overpriced at a time when oil prices were falling. This is a major setback for Dow and raises questions about […]

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Kakinada attracts GMR

Oil and Natural Gas Corp’s (ONGC) Kakinada project continues to attract investors despite questions about its viability. The GMR group is the latest and is reported to have formally expressed interest in taking a stake in the refinery and petrochemical project. The board of Kakinada Refinery and Petrochemicals (KRPL) is due to meet today to […]

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Assam’s mini methanol project

Why is it that state-owned companies refuse to think big? After GAIL (India)’s small cracker it is Assam Petrochemical that has floated a plan for a 165,000 tonnes/year methanol plant in Northeast India. A company source has confirmed that negotiations have started with Oil India Ltd (OIL) and Oil & Natural Gas Corp (ONGC) for […]

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The caustic-chlorine dilemma

Indian demand for caustic soda has been steadily expanding thanks to the alumina sector but investments in new chlor-alkali facilities are being held back by limited demand growth for chlorine. As is usually the case, India’s low per capita consumption suggests immense opportunity for growth. India’s per capita chlorine consumption is only around 1.85 kg […]

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ONGC delays Dahej

This is probably an indication of how difficult it is for Indian public sector companies to put together a petrochemical project. ONGC has announced yet another delay to its cracker complex at Dahej, Gujarat, from mid-2010 to February 2012. The project, which has been in the pipeline for many years, appeared to have gathered speed […]

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Kakinada & Nayachar: back on popular demand

A new year brings in new resolutions and this time around ONGC appears to have recommitted itself a refinery project in Kakinada, Andhra Pradesh, despite doubts about its viability. And over in West Bengal, the state government is determined to move ahead with a chemical hub at Nayachar. ONGC’s resolution, however, appears to be a […]

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Kakinada revisited

A few months back I had referred to an article in the Indian press which raised doubts on the economic viability of ONGC’s refinery and petrochemicals project at Kakinada, Andhra Pradesh. A few readers have posted comments arguing that the project is good for the local economy and should go ahead. I have no doubts […]

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PO surplus set to continue

Despite India’s stellar economic performance there are signs that the country’s polyolefin surplus will not disappear very soon. In a presentation at last week’s Asian Chemical and Petrochemical Conference, Raj Datta of Haldia Petrochemicals Ltd drew out three scenarios. In the first case, India would have a surplus of 2m tonnes of polyethylene (PE) and […]

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