RIL to raise capacity at Jamnager

15 Oct 2012

Meanwhile, the Mukesh Ambani-promoted Reliance Industries Ltd (RIL) is considering expansion of its refining capacity at Jamnagar in Gujarat. The company ranked second in domestic refining after IndianOil's 65.7 million tonnes.

"Our chairman (Mukesh Ambani) has said Reliance will be doubling profit. Downstream (oil refining and marketing) are very much part of this plan" Tony Fountain, chief executive officer of refining and marketing at RIL told reporters at the ongoing Petrotech 2012.

RIL owns and operates a 33 million tonne domestic tariff area or DTA refinery that sells most of its produce in the domestic market besides operating a 29 million tonnes refinery in a special economic zone in Gujarat dedicated to exports.

"We are very much looking at all sorts of plans," he said. "We are looking at options at both DTA and SEZ refineries."

At its annual general meeting (AGM) in June this year, Ambani said the company aimed to invest Rs100,000 crore in its petrochemical, oil and gas business as also  in sectors like telecom and retail business to double profit. He did not speak on refinery expansion though.

RIL was in the process of putting up a $4 billion petroleum coke gasification project that would replace expensive LNG as fuel at its refineries. "We are adding significant project of petroleum coke gasification", Fountain said.
 
India's oil refining capacity was expected to go up by 24 per cent to around 267 MT by 2015-16 as both public and private sector refiners had lined up expansions. India has 25 oil refineries with a crude oil processing capacity of 215.066 million tonnes, which is expected increase to 264.96MT by 2015-16, minister of state for petroleum and natural gas R P N Singh had said in a written reply to a question in the Lok Sabha in August this year.
 
A total of nine oil and gas blocks, under their joint venture have been surrendered by Reliance Industries (RIL) and its partner, UK's energy giant BP.