• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 3 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 8 hours Socialists want to exorcise the O&G demon by 2030
  • 5 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 18 hours Cheermongering about O&G in 2019
  • 34 mins Russian Message: Oil Price War With U.S. Would Be Too Costly
  • 1 day Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 2 days Is Natural Gas Renewable? I say yes it is.
  • 1 day North Sea Rocks Could Store Months Of Renewable Energy
  • 10 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 hours Oil CEOs See Market Rebalancing as Outlook Blurred by China Risk
  • 2 days Making Fun of EV Owners: ICE-ing Trend?
  • 2 days Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 23 hours Oceans "Under Fire" Of Plastic Trash
Oil May Never Return To The Triple-Digits

Oil May Never Return To The Triple-Digits

Fewer and fewer energy professionals…

Indian Refiner Seeks To Sell Plant To Aramco

Petrochemical Plant

India’s ONGC Petrol Additions Ltd is negotiating the sale of half its $4.6-billion petrochemicals plant with Saudi Aramco, unnamed sources told Bloomberg. The negotiations are still private, the source said, and follow earlier talks with Kuwait Petroleum Corp.

India’s demand for petrochemicals is thriving, so for Aramco the investment would be a lucrative one: the middle class is growing, so is urbanization, and these two are driving higher the consumption of polymers. In fact, India currently accounts for a third of the global consumption of polymers, and this portion will only grow from here. According to analysts, the country’s petrochemical market will expand by an annual rate of 12 percent over the next few years.

Saudi Arabia held a 19.5-percent share of the Indian oil market last year, losing the top spot to Iraq, with Iran following closely. Still, the Kingdom supplies a lot of crude to India and has been expanding its footprint in the petrochemical industry in Asia in general.

Earlier this year, Aramco agreed to invest $7 billion in a refinery and petrochemical complex in Malaysia, in partnership with local state major Petronas. At the end of last year, the Saudi giant struck a deal with Indonesia’s Pertamina for the $5-billion expansion of the country’s biggest refinery, in Java.

In its regional expansion, the world’s biggest oil exporter is betting big on India. Two weeks ago reports emerged that Aramco is in talks to buy a stake in a planned refinery expected to be built on India’s west coast that would be the country’s biggest refinery and would cost around $30 billion, Indian Oil Minister Dharmendra Pradhan said on Thursday.

Related: Could An OPEC Extension Normalize Inventories?

State-run companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) are planning to build the refinery, in which IOC would have 50 percent and BPCL and HPCL would hold 25 percent each.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News