Page 2 - Petrochemicals

Two new multi-billion-dollar petrochemical plants to weigh on markets

While producers remain bullish longer term, largely off the back of economic growth in India and China, the splurge in new capacity is weighing on markets near term

ONGC plans to invest Rs 1 trillion to set up two petrochemical plants

India's top oil and gas producer ONGC plans to invest about Rs 1 lakh crore in setting up two petrochemical plants to convert crude oil directly into high-value chemical products as it prepares for energy transition, top company officials said on Wednesday. Crude oil, which companies like ONGC pump out from below seabed and underground reservoirs, is a primary source of energy. It is processed in oil refineries to produce petrol, diesel and jet fuel. With the world looking to transition away from fossil fuels, companies around the globe are looking at new avenues to use crude oil. Petrochemicals are chemical products derived from crude oil and used in the manufacturing of detergents, fibres (polyester, nylon, acrylic etc.), polythene and other man-made plastics. At an investor call on the company's second-quarter earnings, Oil and Natural Gas Corporation (ONGC) Director (Finance) Pomila Jaspal said the firm is looking to build separate oil-to-chemical (O2C) projects. She, however,

GAIL Q2 results: Profit jumps 56% to Rs 2,404 cr, operational revenue down

State-owned gas utility GAIL (India) Ltd on Tuesday reported a 56 per cent jump in its September quarter net profit as bumper earnings from gas transmission and marketing business offset petrochem losses. Standalone net profit of Rs 2,404.89 crore in July-September, or Rs 3.66 per share, was 54.4 per cent higher than Rs 1,537.07 crore, or Rs 2.34 a share, profit in the same period last year, according to the company's stock exchange filing. GAIL saw pre-tax earnings from its mainstay gas transportation business soar 82 per cent to Rs 1,290.65 crore in the second quarter of the current fiscal. Also, its pre-tax earnings from the marketing of natural gas also jumped almost 400 per cent to Rs 1,784.58 crore. Losses in the petrochemical business narrowed to Rs 160.61 crore from Rs 346.22 crore in July-September 2022. Its revenue from operations dropped to Rs 31,882.62 crore in July-September from Rs 38,490.89 crore on lower gas prices.

TMSEp488: Petrochemical PLI, farm export ban, markets, no-confidence motion

Why does the chemicals and petrochem sector need PLI? Do India's farm export bans hurt farmers? Will FPI flow into Indian equities slow from here on? What is a no-confidence motion? All answers here

Chemicals-petrochemicals firms must focus on quality, says Mandaviya

Chemicals and Fertilisers Minister Mansukh Mandaviya on Friday asked chemicals and petrochemicals players to focus on quality and become competitive in the global market to make India a manufacturing hub. Addressing a summit on 'Global Chemicals and Petrochemicals Manufacturing Hubs in India' here, the minister asserted that India is the best destination for global investments and the industry should encash this opportunity to boost manufacturing. Mandaviya said he has given direction for establishing chemical parks for making India an investment hub and added that "the work is happening in this regard". "Today there is a need to focus on quality and become competitive in the global market," he said. The minister assured the government's support in making the domestic industry in becoming competitive at a global stage. He asked the industry to make a white paper in this regard. Mandaviya noted that industry is important for any economy as it helps in becoming self-reliant. He said

ONGC revamp: New director to spearhead new energy, petrochem business

Oil and Natural Gas Corporation (ONGC) will have a new director to spearhead its new energy, petrochemicals and corporate strategy, as part of a board revamp aimed at breathing fresh life into the state-controlled behemoth. A new director for strategy and corporate affairs has been created, according to an office order from the company. This will be besides a newly consolidated production division following a board-level reorganisation. ONGC aims to draw synergies from the merger of its onshore and offshore divisions in creating a director for production, which is headed by Pankaj Kumar. The post of Director (Production) has been created after merging Director (Onshore), who is in charge of all oil and gas fields located on land, and Director (Offshore) who looks after all offshore assets such as the prime Mumbai High fields. Kumar previously served as ONGC's offshore director. In addition to the post of director production and director strategy and corporate affairs, the other k

PM Modi lauds efforts to boost petrochemicals sector in Assam and Northeast

Replying to a tweet by the Chief Minister of Assam, Himanta Biswa Sarma, the Prime Minister said that the major industrial development would boost the petrochemicals sector in Assam

Refinery rejig: Why is India steadily raising petrochemicals capacity

Estimates for the sector are bullish for a decade but it is not an easy business to run, say experts

Investment opportunity of $30 bn in petrochemical sector: Hardeep Puri

India offers investment opportunity of USD 30 billion in the petrochemical sector over the next decade as the world's third largest energy consumer looks to meet growing demand, Oil Minister Hardeep Singh Puri said on Friday. Addressing Asia Petrochemical Industry Conference 2023 here, the minister highlighted that the size of the Indian chemical and petrochemcial sector is around USD 190 billion and it is poised for transformational growth. He rued that the per capita consumption is still low as compared to developed economies. Puri noted that the petrochemical sector has made a significant progress in recent years, becoming one of the largest producers of petrochemical products in the world. "The market size of the Indian chemical and petrochemical sector I'm told is about USD 190 billion. The per capita consumption of various chemical products and segments is significantly lower compared to the developed economies. And this gap offers substantial space for demand growth and ...

Indian Oil eyes processing bio-naphtha for petrochemicals: Chairman

Bio-naphtha is typically obtained from hydro-treatment of used vegetable and cooking oils

ONGC planning to invest Rs 1 trillion to expand production capacity: Report

The expansion plans will be implemented by ONGC's joint venture ONGC Petro additions Ltd (OPaL) and its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL)

Nayara Energy to expand business 50% by 2030, says Chief Alois Virag

He added that his company wants to contribute to making India more self-reliant and self-sufficient with petrochemical production

Adani group pulls back on grand ambitions after the Hindenburg bombshell

It's also dialling back on ambitions to dive further into aluminium, steel and road projects, said people

Govt need investments to address lack of feedstock cracker in petrochem

The government on Friday said there is a shortage of feedstock cracker in the petrochemicals sector and more private investments are required in the sector to reduce imports. Addressing an Assocham-organised conclave on speciality chemicals, Chemicals and Petrochemicals Secretary Arun Baroka said with electric vehicles coming up and demand for petrol/diesel set to reduce, automatically there will be more push for petrochemicals in future. "We know that there is a shortage of feedstock and it is estimated that we need one (feedstock)cracker every year till 2040 but that kind of investment is not coming now. There will be a shortfall in terms of the numbers of crackers which are required by the country. When there is a shortage, obviously we will be dependent on imports," he said. An investment of Rs 18 lakh crore is required for increasing feedstock cracker as estimated in a report by Indian Oil Ltd and Engineers India Ltd. However, the government alone cannot make this kind of ...

Benchmark indices rebound on global trends, buying in Reliance Industries

The benchmark S&P BSE Sensex rose 445 points to end the session at 58,074 - a gain of 0.7 per cent

Mundra petrochemical work suspended as finances not tied-up yet: Adani

Embattled Adani Group on Monday said it has put on hold major equipment procurement and site construction activities for the Rs 34,900 crore petrochemical project at Mundra in Gujarat as the project has not yet tied up finances. The group's flagship Adani Enterprises Ltd (AEL) incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd in 2021 for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in the Kutch district of Gujarat. Asked by stock exchanges to comment on a PTI report on Sunday that the group has suspended work on the project, AEL said, "The financial closure of the Green PVC project of Mundra Petrochemicals Limited ( MPL) is pending with the financial institutions and it is in their active consideration." Due to recent market developments, the management has decided to continue with the engineering design and other activities including financial closure in an accelerated mode, it said. "Pending the above, it has been deci

Mangalore Refinery and Petrochemicals swings to Q3 loss due to windfall tax

MRPL swung to a third-quarter loss from a year-ago profit on Monday, hurt by the government's windfall tax on some fuel exports and a surge in the cost of materials consumed

Russia's Gazprom turns off tap, GAIL's hunt for LNG may continue for a year

Its petrochem plant in UP running at 40% utilisation

India will contribute 10% of incremental global petchem demand growth: Puri

India, whose per capita consumption is significantly lower than that of developed economies, will contribute 10 per cent of the incremental growth of global petrochemical demand, Oil Minister Hardeep Singh Puri has said. Petrochemicals, which turn oil and gas into all sorts of daily products -- such as plastics, fertilisers, packaging, clothing, digital devices, medical equipment, detergents or tyres -- are rapidly becoming the largest driver of global oil consumption. They are set to account for more than a third of the growth in oil demand by 2030, and nearly half by 2050, ahead of trucks, aviation and shipping, according to IEA. India is poised to grow strongly from its current level of only 4 per cent of global capacity to satisfy increasing domestic demand. "Petrochemical market size is currently in India about USD 190 billion, whereas the per capita consumption of petrochemical segments is significantly lower, compared to that in developed economies. And this gap offers ...

Essar Group plans $4.9 billion petrochemical complex in Odisha

India's Essar Group plans to set up a 400 billion rupee ($4.92 billion) petrochemical complex in the eastern state of Odisha in a tie-up with a global player, it said in a statement on Thursday