The largest U.S. oil company, the Indian Oil Corporation (IOC), will invest more than Rs 610,000 crore to build a giant petrochemical complex in Paradeep, Odisha to meet its rising demand for petrochemicals in the world’s fastest growing economy, as Sahney said.
The IOC signed a memorandum of understanding with the Odisha government at the investor meeting in the state and pledged to invest Rs 61,0777 crore.
In addition to IOC, Petronet LNG Ltd, India’s largest liquefied natural gas importer, has signed an agreement to invest Rs 65 billion to establish LNG Import Terminal in the state’s Gopalpur Port.
India Strategic Petroleum Reserves Ltd. is a special purpose tool created by the government to establish a strategic petroleum reserve, signed the signature of the establishment of a 4 million ton underground storage facility in Chandikhol, Odisha, at a cost of Rs 8,743 crore.
IOC’s Rs 610,77 crore will be the company’s largest ever investment in a location. The company already operates a 15 million tons of oil refinery per year in Paradip.
Sahni said the use of raw materials used to make plastics, technical textiles and other such chemicals will be conducted by 2029.
He said India’s petrochemical demand could increase from the current 3-350,000 tonnes to 80 million tonnes by 2040, adding that the country needs new biscuits every two years.
The upcoming complex will house a dual feeding cookie and associated downstream units for the production of including phenol, polypropylene (PP), isopropanol (IPA), high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polyvinyl chloride (PVC).
These products will be used as raw materials in the specialty chemical field such as pharmaceuticals, agrochemicals, coatings and adhesives, which can greatly reduce import dependence.
During this period, oil minister Hardeep Singh Puri said that the market size of the Indian chemicals and petrochemical sector is currently at Rs 1.8 million (US$2.22 billion) and is expected to reach Rs 8.5 million (US$1 trillion) by 2040.
“However, per capita consumption of various chemical products is significantly lower than that of developed economies, and this gap provides a lot of room for demand growth and investment opportunities,” he said.
Recognizing the importance of the chemical and petrochemical industries, the government has launched several key initiatives to accelerate the growth of the industry.
“The chemicals and petrochemical industries have the potential to transform India into a global manufacturing hub. Odisha’s strategic location further enhances its potential as a gateway to exports to Southeast Asia and beyond,” he said.
He said that so far, the IOC has invested nearly Rs 550,000 crore in the Paradip Oil refinery and adjacent chemical plants. The refinery will provide raw materials for the petrochemical complex.
“The Paradeep Petrochemical Complex will be a game-changer, catalyzing industrial growth and self-sufficiency throughout the eastern region,” he said.
“The Paladeep Petrochemical Project will significantly replace imports from the chemicals and petrochemical sectors. The project will save over Rs 30 billion in foreign exchange annually, thereby enhancing our economic resilience.” Petronet signed a memorandum of understanding to establish its virgin-grade LNG terminal on the east coast of India.
Its CEO AK Singh said the company has decided to build a 5 million tonnes annual land import terminal in Gopalpur.
Previously, Petronet attempted to establish a floating-based LNG terminal in Phase 1 with a capacity of 4 million tons per year (MMTPA) and provided 5 million tons per year at the Gopalpur port in Odisha.
“We already have land now, so we decided to convert it into a land-based terminal,” he said.
Petronet already has two LNG import facilities in Dahej, Gujarat and Dahej, Kochi, Kerala.
The current capacity of Dahej LNG terminal is 17.5 million tons, which is expanding to 22.5 million tons. The nameplate capacity of Kochi’s LNG terminal is 5 million tons.
Adani Total Private Limited (ATPL), a 50:50 joint venture between the Adani Group and the French overall enterprise, commissioned the Dhamra LNG terminal in Odisha in 2023. DHAMRA is India’s seventh LNG import and refueling terminal and the first in the eastern coastal region.
publishing – April 9, 2025 02:17 AM IST
