RPL refinery goes on stream

Reliance Petroleum Ltd. (RPL) announced the commissioning of its greenfield refinery in a Special Economic Zone (SEZ) at Jamnagar. It commenced its crude processing on December 25. With a crude oil processing capacity of 580,000 barrels of oil per day, the company ranks as the 6th largest refinery in the world and is also amongst the world’s most complex refineries. US-based oil major Chevron holds a 5% stake in RPL.

The secondary processing units are now under synchronization and commissioning, RPL said, adding that the entire refinery complex is expected to attain full capacity shortly. The commissioning of the RPL refinery catapults Reliance Industries Ltd. (RIL) into the league of the largest refiners globally, both in terms of complex refining capacity and earnings potential.

With the completion of the RPL refinery, Jamnagar has emerged as the ‘Refining Hub of the World’ with the largest refining complex with an aggregate refining capacity of 1.24 million barrels of oil per day in any single location in the world. The RPL refinery has been completed in 36 months from concept to commissioning.

The plant’s completion comes as refining margins, or the profit from turning a barrel of oil into fuels, have shrunk as products such as gasoline and naphtha trade below the price of crude. Energy consumption has fallen sharply due to the global economic downturn, prompting several refiners to delay new projects. But, RPL may be better placed than others, with a strategic Middle East crude supply and strength in capacity and complexity.