ONGC plans to diversify to protect its core business from oil price volatility, says strategy director Arunangshu Sarkar.India’s ONGC is diversifying into refining, petrochemicals, LNG trading, and renewables to mitigate oil price volatility. As global oil supply surges and prices fall, ONGC sees new businesses as a hedge. Rising production costs and depleting fields further pressure profits.
The company plans to secure 3 million tons of regasification capacity on India’s west coast and is in talks for long-term gas supply deals. Cheap gas imports could help offset lower oil earnings, says strategy director Arunangshu Sarkar.ONGC plans to build its first refinery focusing on oil-to-chemicals, though details are still in early stages, says Sarkar.
The company already holds 1 million bpd refining capacity—20% of India’s total—through subsidiaries Hindustan Petroleum and Mangalore Refinery.Refiners are shifting to petrochemicals as EVs slow fuel demand. ONGC aims for 10 GW of renewables by 2030, triple its current capacity, and plans to bid for 1 GW of solar and wind for captive use.
