Reliance to boost capacity of SEZ refinery in Jamnagar by 5.8 mt

P Manoj Mumbai | Updated on December 12, 2018

The planned expansion will raise capacity of Jamnagar refinery hub to 74 mt

Mukesh Ambani-led Reliance Industries Ltd is seeking to expand the installed capacity of its export-oriented oil refinery in the Special Economic Zone (SEZ) at Jamnagar, Gujarat by 8.5 per cent or 5.8 million tonnes (mt).

In 1998, Reliance built its first refinery at Jamnagar with an installed capacity of 660,000 bpd or 33 mt. This refinery sells most of its petroleum products in the local market. When the SEZ plant was added in 2008, the Jamnagar complex became the world’s largest oil processing hub. Most of the products from the SEZ plant are sold overseas.

The SEZ refinery currently has the capacity to process 35.2 mt of crude. The proposal to expand its installed capacity to 41 mt will be discussed by the Ministry of Environment, Forest and Climate Change’s Expert Appraisal Committee (EAC) on December 19, according to documents filed with the EAC.

The planned expansion will increase the installed capacity of the Jamnagar refinery complex to 74 mt. However, the details of the expansion including the investment involved were not available.

The Jamnagar refinery processed 69.8 mt of crude in FY18, exceeding its installed capacity of 68.2 mt. Higher refinery utilisation helped cater to growing demand for transportation fuels.

India has emerged as a major refiner, having the fourth largest refining capacity in the world following the US, China and Russia. With 23 refineries having a combined capacity of 247.6 mt, India not only serves its domestic demand of 195.7 mt (2017-18), but also supplies petroleum products to other Asian countries.

According to the International Energy Agency (IEA), the demand for petroleum products is expected to more than double to 458 million tonnes by 2040.

Boosting production

Indian refiners are adding more capacity to meet the growing demand from India, the world’s fastest growing major oil consuming country. These include a planned 60 mt greenfield refinery at Ratnagiri in Maharashtra by a consortium of Saudi Arabian Oil Co (Saudi Aramco), Abu Dhabi National Oil Company (ADNOC), Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.

Russian oil major Rosneft PJSC-backed Nayara Energy Limited, which runs India’s second largest single site refinery at Vadinar, Gujarat with a capacity of 20 mt, has applied for environment clearance to boost capacity to 46 mt.

Bharat Oman Refineries Ltd (BORL) which runs a 7.8 mt refinery at Bina in Madhya Pradesh, is working on a blue print to double the capacity to 15.5 mt. BORL is an equal joint venture between India’s state-run oil refiner Bharat Petroleum Corporation Ltd (BPCL) and Oman Oil Company.

State-owned Hindustan Petroleum Corporation is building a 9 mt greenfield refinery at Barmer in Rajasthan.

Published on December 12, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor