March 28, 2025 – ONGC’s Bold Move: Ensuring Feedstock Security for OPaL Cracker with Ethane Imports
In a significant decision, Oil and Natural Gas Corporation (ONGC) of India has unveiled plans to secure a stable supply of feedstock for its dual-feed cracker, OPaL, located in Dahej, western Gujarat, through large-scale imports of ethane. This initiative aims to bolster the feedstock security of the OPaL plant and enhance its production efficiency.
ONGC has announced that from May 2028, it will procure up to 800,000 tonnes of ethane annually to cater to the production needs of the OPaL plant. Notably, ONGC holds a 95% stake in OPaL, which boasts an annual production capacity of 1.1 million tonnes of ethylene and 400,000 tonnes of propylene, making it a crucial chemical production hub in India. The OPaL plant utilizes a diversified feedstock mix, including naphtha, as well as blends of ethane, propane, and butane.
To facilitate the smooth implementation of its ethane import plan, ONGC has issued an Expression of Interest (EOI) on the same day, seeking collaborations with companies that operate and manage Very Large Ethane Carriers (VLECs), Very Large Gas Carriers (VLGCs), and Liquefied Natural Gas (LNG) carriers globally. ONGC plans to establish a joint venture to raise funds and construct VLECs. In the future, ONGC will lease VLECs from this joint venture to ensure the safe and efficient transportation of ethane, meeting its production demands.
This move underscores ONGC’s proactive stance in the global energy market and fortifies its position within the Indian and global chemical industries. With the gradual implementation of the ethane import plan, ONGC is poised to further boost its chemical production capacity, supplying more high-quality chemical feedstocks to the global market.