Government Boosts Sustainability Project for OpaL

The Government of India has sanctioned a substantial investment of Rs. 18,365 Crores for Oil and Natural Gas Corporation (ONGC), enabling the company to elevate its stake in ONGC Petro-additions Limited (OPaL) from 49.36% to 95.69%. This strategic decision is expected to facilitate capital restructuring, enhancing the operational and financial sustainability of OPaL, a premier petrochemical complex located in Dahej, Gujarat. Established in 2017, OPaL boasts the largest standalone dual feed cracker in South-East Asia, with a production capacity of 1.5 million metric tonnes per annum (MMTPA) of polymers and 0.5 MMTPA of chemicals. Holding a 12% market share, OPaL plays a significant role in India's polymer sector. The government's approval to increase ONGC's equity stake is anticipated to improve OPaL's capital structure, achieving a healthier debt-to-equity ratio. With this latest investment, ONGC's total financial commitment to OPaL will reach Rs. 22,728 Crores. Additionally, the approval guarantees a consistent supply of gaseous feed to OPaL from ONGC's new gas fields, allowing for a premium of up to 20% over the APM gas price. This assurance of equity and stable feed supply is expected to bolster OPaL's performance. This move aligns with ONGC's broader strategic vision to evolve into an integrated global energy leader, enhancing its footprint across the downstream and petrochemical value chain.