ONGC to set up trading arm for crude, petroleum products
ONGC, India's top state-owned energy company, is planning to launch a trading unit for crude oil, petroleum products, and petrochemicals.
The goal? To make buying and selling smoother across the group as India's energy demand keeps rising.
Rajarshi Gupta from ONGC Videsh Ltd says this move could help them manage a massive 100 million tons of crude oil every year.
Why a trading arm? The numbers speak
Right now, ONGC produces about 42 million tons of crude oil each year. Its subsidiaries—Hindustan Petroleum and Mangalore Refinery—procure another 45-50 million tons together, plus OVL produces about 10 million tons.
With so much moving around, ONGC's team is working out the legal and practical details for this new trading setup.
ONGC's global LNG sourcing strategy amid geopolitical tensions
Energy markets are shaky worldwide thanks to ongoing geopolitical tensions.
Gupta points out that ONGC wants to keep things steady by sourcing five million tons of LNG from different places—including Henry Hub in the US—and staying flexible with their supply deals.
It's all about making sure India doesn't get caught off guard if things get bumpy globally.