The corporate’s multi-pronged strategy entails getting into the refining and petrochemical sectors, buying and selling liquefied pure gasoline and rising its renewable capability.
In keeping with the Worldwide Power Company, the world is getting into an period of cheaper vitality costs, with rising electrical energy use resulting in a surplus of oil and gasoline. ONGC is among the many a number of oil majors trying to diversify their enterprise methods as the worldwide economic system strikes away from fossil fuels.
“Globally, we’re heading to a glut in oil provides which implies costs will cut back,” Sarkar mentioned in an interview. “It will likely be tough for a corporation like ONGC to outlive in a low oil-price regime and the brand new companies present a hedge for such a state of affairs.”
Whereas crude costs decline, manufacturing prices for the explorer are on the rise, with simply out there oil already extracted and depleted fields yielding little gasoline, additional squeezing income.
Sarkar, a petroleum engineer, took cost as ONGC’s first director for technique in September. The New Delhi-based firm is looking for to e book 3 million tons a 12 months of regassification capability on the nation’s western coast and is already discussing long-term offtake offers with metropolis gasoline retailers, Sarkar mentioned. Since benchmark indices are linked to crude, importing low-cost gasoline to be offered in India will help offset decrease income attributable to oil volatility, he added.ONGC can be planning to construct its first refinery, with a concentrate on oil-to-chemicals, Sarkar mentioned, declining to offer extra particulars because the plan continues to be at a nascent stage. At a gaggle degree, ONGC already has a refining capability of 1 million barrels a day, or a fifth of India’s complete, by way of its items Hindustan Petroleum Corp Ltd. and Mangalore Refinery and Petrochemicals Ltd.
Refiners are more and more turning to petrochemicals because the unfold of electrical autos is projected to dent demand development for diesel and gasoline.
The third pillar of diversification is clear vitality. The corporate has set a goal to achieve 10 gigawatts of renewable capability by 2030, about 3 times greater than now. It can quickly be looking for bids to construct 1 gigawatt of photo voltaic and wind energy capability for its captive use, Sarkar added.
