ONGC will soon sell its stake in OPaL

The Maharatna company invested around ₹18,365 crore in OpaL in FY25. | Photo credit: AMIT DAVE

OPaL is ONGC’s largest greenfield investment, in which it has a 95.5 percent stake, while Gail India holds 4.19 percent and Gujarat State Petroleum Corporation holds 0.12 percent.

Speaking at the India Energy Week in Goa, Arunangshu Sarkar, Director, Strategy & Corporate Affairs, ONGC, said the Maharatna company is mandated to dilute its stake by 2030 and return the company to a joint venture structure, including a domestic partner, through a global tender. For this, ONGC is preparing to release an EoI soon.

Asked whether the E&P major will consider listing OPaL if it fails to find a strategic partner, he explained that dilution of stakes could also be achieved by taking the petrochemical company public, without sharing more details.

In November 2023, ONGC, in an analyst call after the results, said it will bring in a strategic partner in OPaL by FY27, after investing ₹18,365 crore in the petrochemical business, and make it profitable by FY25.

Sarkar also ruled out any immediate expansion of OPaL – a mega petrochemical complex spread over 5 square kilometers, with a capacity to produce 14 million tons of polymers and 5 million tons of chemicals. It is located in Dahej (Gujarat).

On Qatar’s ban on ethane exports from 2028, Sarkar said ONGC has decided to make its own arrangements for ethane sourcing, including owning very large ethane tankers for which it entered into a joint venture with Samsung to build two ships at the IEW on Tuesday.

In May 2025, ONGC’s board approved extension of corporate guarantee support up to ₹20,000 crore to lenders in one or more tranches by OPaL, including for debt refinancing. The Maharatna company invested around ₹18,365 crore in OpaL in FY25.

OPaL has taken several measures during FY25 to improve profitability, including overhauling its capital structure, exiting the SEZ area, reducing input costs, optimizing product mix and restructuring loans.

Last month, Petronet LNG (PLL) and ONGC entered into a 15-year ethane offloading, storage and handling (USH) agreement. The USH binding term sheet will take effect between October and December 2028 and end on October 15^e anniversary of the effective date. The deal is for OPaL.

Published on January 29, 2026