Posted by OilVoice Press - OilVoice
Saudi Aramco has this week agreed to develop a $44 billion ‘mega refinery' on India's west coast in collaboration with three Indian state-owned oil companies.
The collaboration takes the form of a Memorandum of Understanding (MoU) with Ratnagiri Refinery and Petrochemicals Ltd (RRPCL), a consortium of Indian oil companies which includes The Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL), to jointly develop and build an integrated mega refinery and petrochemicals complex at Ratnagiri, in the state of Maharashtra. Saudi Aramco may also seek to include a strategic partner to co-invest in the mega refinery.
The refinery will be capable of processing 1.2 million barrels of crude oil per day, producing a range of refined petroleum products, including gasoline and diesel, meeting BS-VI fuel efficiency norms. The refinery will also provide feedstock for an integrated petrochemical complex, which will be capable of producing approximately 18 million tons per annum of petrochemical production.
In addition to the refinery, cracker and downstream petrochemical facilities, the project will include associated facilities such as logistics, crude oil and product storage terminals, raw water supply, as well as centralised and shared utilities.
Ratnagiri Refinery and Petrochemicals Ltd. (RRPCL) will rank among the largest world refining and petrochemicals projects and will be designed to meet India's fast-growing fuels and petrochemicals demand.
Commenting on the project, Saudi Aramco President and CEO, Amin H. Nasser, said:
“Investing in India is a key part of our company's global downstream strategy, and another milestone in our growing relationship with India. The signing marks a significant development in India's oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India's fast-growing demand for transportation fuels and chemical products. Participating in the mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India's future energy demands.”
The move comes as Saudi Aramco hopes to cash-in on the general global growth in petrochemicals and chemicals demand. Less than 24 hours prior to this agreement being signed, Saudi Aramco had penned an agreement with French oil giant Total to build a giant petrochemical project in Saudi Arabia for about $5 billion, creating approximately 8,000 new jobs in the Kingdom.
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