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Reliance, Saudi Arabia in talks for petrochemicals and refinery project

Saudi Oil Minister Khalid al-Falih has said that Saudi Arabia and Mukesh Ambani‘s Reliance Industries are discussing joint investment in petrochemicals and refinery projects.

Ambani and Khalid have known each other for over a decade now. Khalid flew down to Udaipur earlier this month to attend Isha Ambani’s, Mukesh Ambani’s daughter, wedding festivities.

During the visit, he held talks with Ambani about the joint investment, and he shared about it via Twitter this week saying, “we discussed opportunities for joint investments and cooperation in petrochemical, refining, and communications projects.”

The Indian Conglomerate operates two refineries at Jamnagar with a total capacity of 68.2 million tonnes per annum. It plans to expand its only-for-exports SEZ refining capacity to just over 41 million tonnes from current 35.2 million tonnes but does not have any plans to set up a new refinery in the country. It is presently focused on expanding petrochemical and telecom business, industry sources said.

Saudi Aramco, the world’s biggest oil company, and its partner Abu Dabhi National Oil Company have picked up 50 percent stake in a planned $44-billion refinery in Maharashtra but the project is facing problems in acquiring land due to protests from local politicians.

Aramco and ADNOC will together hold 50 percent stake in the 60 million tonnes per annum, refinery, and adjacent 18 MTPA petrochemical complex planned to be built at Ratnagiri district of Maharashtra by 2025.

Saudi Aramco is keen on retailing fuel in India. A refinery in India can also be a base for it to export fuel to deficit countries in Europe and the Americas.

India has a refining capacity of 247.6 million tonnes, which exceeded the demand of 206.2 million tonnes.

According to the International Energy Agency, this demand is expected to reach 458 million tonnes by 2040.

 

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