ONGC, India's largest oil and gas producer, plans to build two oil-to-chemical plants in India to convert crude oil directly into high-value chemical products as it prepares for the energy transition that is shaking up the industry globally, according to chairman Arun Kumar Singh. Crude oil, which companies such as ONGC extract from beneath the seabed and underground reservoirs, is a primary source of energy. It is refined into petrol, diesel, and jet fuel in oil refineries. Companies all over the world are looking for new ways to use crude oil as the world moves away from fossil fuels.

Petrochemicals are chemical products derived from crude oil that are used in the production of detergents, fibres (polyester, nylon, acrylic, and so on), polythene, and other materials.

"Demand for petrochemicals is expected to remain strong and will continue to be a key driver of future oil and gas demand," Singh said in the company's most recent annual report. "To that end, ONGC is collaborating with other entities to investigate opportunities in the oil-to-chemical (O2C), refining, and petrochemicals sectors." We also intend to build two greenfield O2C plants in India."

The company already has two subsidiaries, Mangalore Refinery and Petrochemicals Limited and ONGC Petro-Additions Limited, which operate petrochemical plants in Mangalore, Karnataka, and Dahej, Gujarat.

"MRPL and OPaL are strongly engaged in the diversification plan from oil to the petro-chemical sector," Oil and Natural Gas Corporation (ONGC) said in the 2022-23 annual report. "ONGC is also partnering with players to explore opportunities in the Oil to Chemical (O2C) and Oil to Petrochemicals (O2P)."