Reliance confirms $9.75 billion oil-to-chemicals investment in India
Reliance Industries has confirmed plans to invest $9.75 billion to build a crude-oil-to-chemicals complex at the company’s Jamnagar, India, site.
Commenting, Afsar Hussain, Wood Mackenzie Senior Research Analyst, said: “The project will have a combined capacity to produce 8.5 million tonnes of ethylene and propylene, 3.5 million tonnes of benzene, toluene and xylenes, 4 million tonnes of paraxylene and orthoxylene, as well as a whole myriad of derivatives across the C1-C6 value chains.
“The project will be one of the largest crude-to-chemicals projects to exist. The new capacity additions will raise India’s olefins capacity by 28 per cent, taking total capacity to over 18 million tonnes. Additionally, the project will provide a significant leap in India’s aromatics capabilities, raising total capacity by 80 per cent to around 17 million tonnes.
“The sheer size and interconnectedness of the project will allow the overall complex to operate on a much lower cost basis, as it will be able to capitalise on significant efficiency gains, reduce logistics costs and overheads, ensure feedstock security and maximise product revenues.
“The crude feedstock for the project is likely to be supplied by Aramco, who have a 20 per cent stake in Reliance’s refining and chemicals business.
“This is a bold move to secure crude market share and counter stagnating demand into transportation fuels, with petrochemicals expected to be the fastest growing oil demand sector through 2040.”
26th November 2019