RIL plans to raise refining capacity

Reliance Industries, the owner of world's largest refining complex, today said it plans to raise capacity at its twin refineries at Jamnagar in Gujarat as part of the company's plans to double profit in 4-5 years.

"Our Chairman (Mukesh Ambani) has said (that) Reliance will be doubling (operating) profit. Downstream (oil refining and marketing) are very much part of this plan," RIL CEO (Refining & Marketing) Tony Fountain told reporters at the Petrotech 2012 conference here.

RIL operates 33 million tonne domestic-tariff area or DTA refinery that sells most of its products to domestic market, and 29 million tonne only-for-exports or SEZ unit. "We are very much looking at all sorts of plans (for expanding refining capacity)," he said. "We are looking at (expansion) options at both DTA and SEZ refineries." Ambani had on June 7 announced investments of USD 12 billion in the company's core petrochemical and oil and gas businesses as well as in the new sectors of retail and telecom, to double operating profits in 4-5 years.

Refinery expansion was not part of the plans Ambani had outlined to company shareholders on June 7.

Fountain said RIL was also "looking at (refinery) configuration" to produce more value added products.

He however refused to provide details of investment or the expansion the company was looking at.

RIL is setting up a USD 4 billion petroleum coke gasification project that will produce synthetic gas that will replace expensive LNG as fuel at the refinery. "We are adding significant project of petroleum coke gasification," he said.

India's oil refining capacity will rise 24 per cent to about 267 million tonnes by 2015- 16. These plans do not include RIL expansion.

He said the company continues to keep most of its 1,452 petrol pumps closed in the absence of a level playing field with its main public sector competition.

... contd.

ALSO READ

Govt aims to bring down CAD to 2.5% by 12th Plan-end, says Montek

Q4 results, IIP data to drive markets this week: Experts

Market review: BSE Sensex ends higher for 3rd consecutive week, up 289 pts

Bangladesh urges no harsh EU measures over factory deaths