RPL - a world record - Mukesh Ambani

Reliance Petroleum's new export-oriented 29 million tonne refinery at Jamnagar, Gujarat is will start generating revenues from this year.
Reliance Petroleum (RPL) Chairman Mukesh Ambani in an address to its shareholders during the company's third Annual General Meeting said, "I am happy to announce that refinery will start generating revenues from this year itself. RPL team is set to create a world record by constructing the new refinery at Jamnagar in less than 36 months."

The refinery with commission deadline in December 2008 will be completed ahead of schedule, said Ambani.

The refinery is adjacent to RIL's existing 33 million tonne refinery at Jamnagar in Gujarat and with the existing RIL refinery at Jamnagar, it will have a total processing capacity of 1.24 million barrels per day – the largest and most complex in the world. The project was conceptualised in December 2005 and construction started in April 2006.

On completion, the RPL refinery will have the ability to process heavy and sour crude. It will also produce value added products meeting the highest quality specifications in the world.

"Asia and Middle East will be contributing 60-70 per cent of incremental demand. Our refinery will be well positioned to supply to these markets too. Europe appears to be the most attractive export market for diesel, which is in high demand at the moment. The most important markets for gasoline will be US, Africa and the Middle East. The RPL refinery will earn foreign exchange for the country by exporting its superior quality products to America, Europe and Asian markets. It should increase global production capacity of both gasoline and diesel by around 1per cent," he added.

Ambani expects that prospects for the refining sector will remain encouraging. "The long term outlook for refining margins continues to be positive specially for complex refiners like RPL. This is because of robust demand, tight product supplies and slow growth of new capacities dogging an already stretched refining system," he added.

At time of the RPL refinery project announcement, a number of large scale greenfield export refineries have also been announced in the Middle East and Asia. "RPL will be the first off the mark with a multi-year lead over other Greenfield refineries. This will give it a huge advantage," said Ambani.

During the year, the number of RPL shareholders rose from 12 lakh to nearly 20 lakh. The RPL refinery will be one of the most complex refineries in the world with a Nelson Complexity Index of 14.0.

via Business Standard