The Oil and Natural Gas Corporation Limited (ONGC) plans to expand its refining capacity. It aims to set up a new coastal refinery, most likely in Gujarat’s Jamnagar district.
Location Finalisation Underway
While Jamnagar is emerging as the leading choice, officials have also indicated that Dharuka, another location in Gujarat, is under consideration. “The refinery is most likely to be set up in Gujarat’s Jamnagar district; it will be around that belt,” an official said.
Saudi Partnership in the Works
In parallel, ONGC is in discussions with Saudi Arabia to form a joint venture for the project. As part of the potential partnership, Saudi Arabia may also supply crude oil to the new refinery. Talks are currently underway to define the scope and structure of the venture.
Feasibility Study in Progress
ONGC is currently preparing a Detailed Feasibility Report (DFR), which will determine the refinery’s capacity and investment requirements. Once the company completes the DFR, it will finalise key project details and timelines.
India’s Oil Demand Set to Surge
The move reflects broader energy trends, with India set to lead global oil demand growth. The International Energy Agency (IEA) projects that India will add one million barrels per day (bpd) of demand by 2030 — the largest increase worldwide.
