He also announced the company’s plan to double CBM output and start natural gas production from the KG-D6 block, with its partner BP
New Delhi: With the world moving away from fossil fuels towards cleaner fuels, Reliance Industries Ltd (RIL) will ramp up focus on oil-to-chemical conversion projects and upgrade its refinery products to “high-value” petrochemicals over the next decade, Chairman Mukesh Ambani said today.
“As the world migrates from fossil fuels to renewable energy, we will further maximise this oil to chemical conversion and upgrade all of our fuels to high-value petrochemicals. This upgradation will be implemented in a phased manner over the next decade to meet the rapidly increasing demand of petrochemicals in India and the Asian region,” Ambani said in his speech at the company’s 41st Annual General Meeting (AGM).
He also announced the company’s plan to double Coal Bed Methane (CBM) output and start natural gas production from the KG-D6 block, with its partner BP, expecting to reach a peak of 30-35 Million Standard Cubic Meter Per Day (MMSCMD) production by 2022.
Ambani said the company plans to add fresh capacity to produce new petrochemical products. “This will minimize the impact of renewables and electricity on transportation fuels. We have a unique advantage among global players of being able to pursue this strategy with physical integration at one large-site Jamnagar,” he said.
RIL last year commissioned the world’s largest Paraxylene complex in Jamnagar with a capacity to produce 4.2 Million Tonne of the chemical that is used in manufacturing Polyethylene Terephthalate (PET) plastic bottles and polyester fibre. The company had also recently commissioned the world’s largest 1.5 Million Tonne Per Annum (MMTPA) off-gas ethylene cracker complex “almost concluding” its massive $20 billion petrochemical expansion programme, Ambani said.
“This set of new projects have redefined oil-to-chemical integration. It is our belief that with the rapidly increasing demand for petrochemicals, maximising oil to chemical conversion will play a catalytic role in determining the profitability of the hydrocarbon business of the future,” he said.
The RIL chief also added the company’s gas marketing Joint Venture with London-based multinational oil and gas firm BP is looking for opportunities to source and distribute gas to Indian consumers including in cities. He said the company is proposing a cross-border merger with Reliance Holding USA (RHUSA) with RIL in a bid to integrate US gas resources with the Indian market.
Ambani also said the company is well placed to cater to the demand for low-sulphur distillates as its demand picks up post 2020 when the International Maritime Organization’s regulations for low-sulphur bunker fuel come into effect. “The forthcoming changes for sulphur specifications of bunker fuel across the world will lead to a significant jump in demand for low-sulphur distillates. Equally, it will benefit versatile and complex refineries like us with a capability to process heavy crudes,” he said.
RIL’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 965, down 2.53 per cent as compared to previous close.