ONGC gets nod for petrochemicals venture

By agencies   |   Tuesday, 15 August 2006, 19:30 IST
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DEHRADUN: IndiaÂ’s largest integrated oil company ONGC has received government nod to start a petrochemical complex but has discouraged it from foraying into fuel retailing. Petroleum Secretary MS Srinivasan said the company has been permitted to set up units to manufacture petrochemicals from residue from its refineries and using natural gas. "Worldwide, refineries are being converted into refinery-cum-petrochemical complexes to gain from the high margins on petrochemicals. Naturally, ONGC would also be encouraged to set up petrochemical complexes wherever they have refineries or have a natural gas source," he said. The $1.2 billion Aromatic complex and Olefin complex that ONGC has planned to set up adjacent to its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) and the Dahej petrochemical complex in Gujarat are natural extensions to getting the maximum value out of refinery produce and natural gas respectively, he said. On fuel retailing, he said selling petrol and diesel was a losing proposition and compensation in the form of oil bonds for selling fuel below the cost of production was only available to public sector oil retailers like IOC, HPCL, BPCL and IBP.