India’s Oil and Natural Gas Corporation (ONGC) is exploring a major investment in a refinery and petrochemical complex in Uttar Pradesh, aiming to strengthen its position in the country’s rapidly growing energy market. The proposed project, with a capacity of 9 million tons per year, is expected to require an investment of over ₹700 billion ($8.3 billion).
Sources indicate that ONGC has initiated discussions with Bharat Petroleum Corporation Ltd (BPCL) to collaborate on the project. BPCL owns a parcel of land in Prayagraj, which could serve as the site for the refinery. The strategic location and availability of land offer ONGC a significant advantage, especially in a country where infrastructure projects often face delays due to land acquisition issues.
India, one of the world’s fastest-growing major economies, is witnessing a sharp increase in crude oil and petrochemical consumption, even as it expands its renewable energy capacity. The proposed project in Uttar Pradesh aligns with ONGC’s strategy to capitalize on this rising demand.
Meanwhile, BPCL is also considering establishing a refining and petrochemical unit, with potential sites in both Andhra Pradesh and Uttar Pradesh. The company has engaged a US-based consultant for a site selection study, with Andhra Pradesh emerging as a preferred location due to promised state incentives.
