State-run ONGC has obtained government approval to make a foray into the petrochemicals sector. The investment will amount to Rs 10,000 crores towards ONGC's ambitious plans to set up a cracker having world-class economies of scale. Approximately Rs 4500 crore to Rs 5000 crore will be invested in each of the two proposed crackers with associated conversion units planned at Dahej and Mangalore.
ONGC plans to extract C2 and C3 from imported LNG, while the Hazira processing plant and gas would be transported from Panna, Mukta and Tapti fields for the dual-feed Dahej plant. Naphtha produced by MRPL is currently exported. This will be utilised fork the Mangalore cracker. ONGC has engaged consultants to complete the detailed feasibility report for the two projects, likely to have an annual cracker capacity of over 1 million tons each.