The Government of India has approved the ONGC proposal for additional investment totaling Rs.18,365 Crores resulting in an increase in ONGC’s stake in ONGC Petro-additions Limited (OPaL) from 49.36% to 95.69%. This significant move paves the way for capital restructuring leading to the operational and financial sustainability of OPaL.
OPaL, situated at Dahej in Gujarat, is a world-class petrochemical complex with the largest standalone dual-feed cracker in Southeast Asia. Commissioned in 2017, OPaL is a state-of-the-art petrochemical complex with capacity to produce 1.5 MMTPA of polymers and 0.5 MMTPA of chemicals. With a 12% market share, OPaL has a good presence in India’s polymer segment.
The government’s approval to increase ONGC’s equity stake in OPaL shall help rectify OPaL’s capital structure with a healthy debt-equity ratio. With this infusion, ONGC’s cumulative investment in OPaL will stand to Rs.22,728 Crores. The said Government approval also assures a sustained supply of gaseous feed to OPaL by ONGC from its new gas from nomination fields at a premium of up to 20% over APM gas price. As such, ONGC is allowed a premium of up to a maximum of 20% over the APM price. The increase in equity and assured gaseous feed supply shall ensure the steady performance of OPaL.
The decision aligns with ONGC’s strategic vision to become an integrated global energy major by increasing its presence across the downstream and petrochemical value chain as well.
