Communicator

Screenshot showing Indian crude oil refineries from the Portfolio Planning PLUS Refinery Module.

Saudi Aramco, the world’s top oil company, is close to sealing a major deal in India that could change the energy landscape for both countries. The company is in advanced talks to buy a 20% stake in two brand-new oil refineries being planned by Indian state-run firms ONGC and BPCL. These massive projects, set for Gurajat and Andhra Pradesh, will each process 12 million tonnes of crude oil every year. The total investment for both refineries is expected to reach around $24 billion, with Aramco’s share estimated at up to $5 billion.

This isn’t just about buying into a couple of refineries. For Aramco, it’s a smart way to make sure its oil has a steady home in India, which is one of the world’s fastest-growing energy markets. As global oil demand slows in other regions, India’s appetite for fuel is still rising. By owning a slice of these refineries, Aramco can lock in sales for its crude oil for years to come. For India, the deal is a win in several ways. It brings in foreign investment, creates new jobs, and helps guarantee a reliable supply of oil. The partnership also means India can tap into Aramco’s technology and expertise, which could help the country strengthen its position as a major refining and petrochemical hub.

This potential partnership is no coincidence as it follows a high-level meeting in April between Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman. The two leaders discussed ways to deepen their countries’ energy ties, and this deal is a clear sign of that growing relationship. Aramco’s interest in India comes after some earlier attempts to invest in the country’s refining sector didn’t work out. But this time, the talks are progressing well, and both sides seem eager to make it happen.

Aramco isn’t the only Gulf oil giant looking to strengthen its ties with India. The United Arab Emirates’ ADNOC recently signed a long-term deal to supply liquefied natural gas (LNG) to Indian Oil, and QatarEnergy is investing heavily in India while also signing a major supply agreement with Shell. Oman’s OQ is also moving forward with a big petrochemical project. All of this shows how important India has become for Gulf energy companies as they look for new markets.

If the deal goes through, Aramco will become a key player in India’s energy sector. It’s a move that could help shape how oil flows into and out of Asia for years to come. For India, it means more investment, jobs, and energy security. For Aramco, it’s a way to stay ahead in a changing world where energy demand is shifting. In short, this isn’t just a business deal-it’s a sign of how the energy world is changing, with India and the Gulf states building stronger ties and planning for the future together.

#aramco #saudiarabia #india #ongc #bpcl #refining #refinery #crudeoil #oilrefining #adnoc #qatarenergy #shell #oq

Aug 28, 2024 | Offshore Technology

The venture, estimated to cost more than $10bn (Rs839.48bn), is in discussion with ONGC and its subsidiary HPCL.

The Chatterjee Group (TCG), a US-based private equity firm, is seeking a partnership with Indian state-run companies for an oil-to-chemicals project in Cuddalore, Tamil Nadu, reported Bloomberg, citing sources. TCG is in discussion with Oil & National Gas Corporation (ONGC) and its subsidiary Hindustan Petroleum Corporation (HPCL). The proposal suggests the state companies collectively hold a 49% stake in the project – estimated to cost more than $10bn – while TCG, which operates in India through Haldia Petrochemicals, would retain the remaining 51% share. TCG’s project aims to produce 3.5mtpa of ethylene and propylene.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. Haldia Petrochemicals currently operates a petrochemical plant in eastern India and is developing the nation’s largest integrated phenol project in West Bengal’s Haldia.

The potential investment reflects India’s focus on expanding petrochemical capacities, providing essential materials for a range of products from consumer goods to automotive components. As per government estimates, the demand for chemicals and petrochemicals in India is projected to triple to $1trn by 2040. Oil refiners, including Reliance Industries led by Mukesh Ambani, are shifting their production focus towards petrochemicals over traditional fuels to cater to the increasing demand for specialty plastics and chemicals used in solar panels and electric vehicles.

As per Reuters’ April report, Haldia Petrochemicals CEO Navanit Narayan stated that the project is expected to be operational by 2029. The project’s financial closure is anticipated by the end of 2024. In other development, ONGC has recently been granted government approval for an additional investment of $2.19bn into its petrochemical unit ONGC Petro Additions.

#haldia #chatterjeegroup #india #cotc #oiltochemical #hplc #ongc #reliance #ethylene #propylene #petrochemicals #oilrefining #petroadditions