NGC Petro Additions Ltd (OPaL), which runs a mega petrochemicals complex at a special economic zone (SEZ) at Dahej, has decided to exit a programme that mandates overseas export from a unit located in an SEZ.Driven by huge domestic demand for plastics in the country, the company has initiated the process to get access to domestic tariff area to gain from the lower tax regime, said sources close to the development. Also the promoter ONGC, which owns 26% stake in OPaL, plans to increase its stake up to 70%. This would put an end to all plans of finding overseas partners for the project, said a company official aware of the development."More than 80% of OPaL’s demand is from the domestic market. The plant is running at 100% capacity, up from about 70% last year. After ONGC acquires additional stake, OPaL will become a subsidiary of ONGC. Plans regarding expansion or further investments will be made thereafter," the official said.OPaL’s Rs 30,000 crore petrochemical complex, which began commercial operations two years ago, houses a dual-feed cracker with a capacity to produce 1.1 million tonnes a year of ethylene and 400,000 tonnes of propylene.As India looks to cut imports of petrochemicals and chemicals to boost domestic production, several big-ticket investments have been lined up in the state by companies like Reliance Industries Ltd, Rosneft-backed Nayara Energy, Adani group, Indian Oil Corp, among others.India’s crude oil demand is expected to go up to around 10 million bpd, by 2040, from around 4.7 million bpd in 2017.Gujarat to draw Rs 3-4 lakh crore investment:he state, which accounts for over 61% of the country’s petrochemicals production is set to see a new wave of ethylene, polyethylene and polypropylene capacity beginning to take form."Investments to the tune of Rs 3-4 lakh crore is expected in petrochemicals sector in the next 7-10 years in Gujarat," said a senior government official.Two months ago, Thyssenkrupp Industrial Solutions (India) announced that it has inked a pact with Nayara Energy for providing project management consultancy services for Nayara Energy’s petrochemicals unit at Vadinar near Jamnagar.Nayara Energy, formerly Essar Oil, currently operates the second-largest private sector refinery in India with a capacity of 20 MMTPA at Vadinar, Gujarat."The project will mark Nayara’s foray into the petrochemical sector by building a world-scale capacity polypropylene unit and methyl tertiary-butyl ether (MTBE) unit. It also involves revamp of the existing Fluid Catalytic Cracker unit and building of a Propylene Recovery Unit and associated off-sites & utility facilities," Thyssenkrupp Industrial Solutions claims.In August, Nayara Energy got clearance from Gujarat State Pollution Control Board (GPCB) for a massive expansion plan at Vadinar which includes setting up additional refining capacity of 10.75 million tonnes per annum (MTPA) petrochemical complex and refinery expansion to 46 MTPA. The company has envisaged an investment of Rs 1.3 lakh crore in its proposal to GPCB. The proposed complex will include setting up an ethylene cracker and associated units, aromatics, polyester intermediates and polymer units, among others.Demand for petrochemicals is linked to GDP growth, as petrochemicals find application in most of the key end-user sectors, such as automobiles, consumer durables, construction and irrigation. In the last few years, the demand of polypropylene (PP) and polyethylene (PE) has grown at 1.5 times of GDP growth in India and is expected to grow at a minimum 10% per year in future.Change in strategy:eliance Industries Ltd, which operates the world’s largest oil refining complex near Jamnagar and is the largest polyester yarn and fibre producer and fifth largest producer of polypropylene (PP), globally, has chalked out a ‘oil-to-chemicals’ strategy where it plans to invest billions of dollars. It is formed by combining our petrochemicals and refining businesses.As the world migrates from fossil fuels to renewable energy and electric vehicles, RIL will further maximise this ‘oil-to-chemicals’ conversion and upgrade all its fuels to high value petrochemicals, according to RIL’s latest annual report. This upgradation will be implemented in a phased manner over the next decade to meet the rapidly increasing demand for petrochemicals in India and the region, it said. The aim is to convert over 70% of RIL’s output from the Jamnagar complex to chemicals, according to the report.An e-mail sent to RIL officials remained unanswered. At its annual general meeting on August 12, RIL chairman Mukesh Ambani had announced that Saudi Aramco will acquire a 20% stake in its oil-to-chemicals business at an enterprise value of $75 billion.Indian Oil Corp, the country’s top refiner, plans to invest US $2 trillion in the next 5-7 years, of which a significant part would be towards expansion of its refinery and petrochemicals complex at Koyali, said an official close to the development.Billionaire Gautam Adani controlled Adani Group has entered a partnership with Abu Dhabi National Oil Company, German chemical giant BASF SE and Austria's Borealis AG to study the feasibility of setting up a USD 4 billion chemical complex at Mundra. The project, if materialized, would mark the entry of Adani into petrochemicals.The products are predominantly for the Indian market, serving a wide range of local industries, including construction, automotive and coatings.