Everything you Need to Know
About the 40 Billion Dollar Ratnagiri Refinery Project
Estimated to cost around 44 billion dollars – 50
billion dollars, the Ratnagiri refinery-cum-petrochemical complex is scheduled
to be commissioned by 2022
The India-based project is expected to
process 1.2 million barrels of crude oil per day and will produce a range of
refined petroleum as well as petrochemical products. Expected to be
commissioned in 2022, the project aims to meet India’s fast-growing fuels and
petrochemicals demand.
Plans to build the largest single location refinery complex in the
world are already underway. Expected to come up in Ratnagiri, the western state
of Maharashtra in India, a mega investment of this size and scale has never
been implemented in any part of the country. The prime project is already
making headlines with Saudi Arabian Oil Company – Saudi Aramco and the Abu
Dhabi National Oil Company (Adnoc) owning 50 % stake in the project. PROCESS
Worldwide brings to you all the relevant information and stats you need to know
about this mammoth assignment.
Ratnagiri Refinery – Size does matter!
The world-class project will be spread over 15,000 acres and boasts
of a refinery-cum-petrochemical complex. Capable of processing 1.2 million barrels of
crude oil per day (60 million metric tonnes per annum), the project will
produce a range of refined petroleum products, including gasoline and diesel
meeting BS-VI fuel efficiency norms. In addition to this, higher quality
automotive and aviation fuels benchmarked to international standards such as
the Euro-VI along with a range of petrochemical products will also be produced
at the complex.
Feedstock would also be made available from
the refinery for the integrated petrochemical complex, which will be capable of
producing approximately 18 million tonnes per annum of petrochemical
production. The complex will possess in-built flexibility for processing a wide
spectrum of light and heavy crude oil grades, and for this purpose, numerous
blending techniques will be installed. The project would be self-sufficient in
power and utilities requirements and will comprise over 50 inter-connected
units that will be designed to operate at the highest level of efficiency. The
project will also include associated facilities such as a logistics, crude oil
and product storage terminals, raw water supply, as well as centralized and
shared utilities.
Status
of the Project
Estimated to cost around 44 billion
dollars – 50 billion dollars, the refinery-cum-petrochemical complex is
scheduled to be commissioned by 2022. The project aims to meet India’s
fast-growing fuels and petrochemicals demand. Pre-feasibility study for the
refinery has already been completed and the preliminary configuration study of
the project is being carried out by Engineers India in association with an
international consultant. Meanwhile, IHS will conduct the market study for the
chemicals and petrochemicals to be produced at the complex. Once completed, the
project is expected to contribute to the growth of the state’s GDP by over 10 %
and enable the state to become a trillion dollar economy. Lastly, the project
is strategically located which makes it convenient for imports and exports.
Brain behind the Ratnagiri
Refinery Project
The Government of India under its mighty domestic oil and gas
companies – The Indian Oil Corporation (IOCl), Bharat Petroleum Corporation
(BPCL) and Hindustan Petroleum Corporation (HPCL) have established a new joint
venture company called ‘Ratnagiri Refinery and Petrochemicals Ltd’ (RRPCL).
This firm will be responsible to carry out the project. Recently, Saudi Aramco
along with Adnoc have also signed agreements with the Indian Consortium (IOCl,
BPCL, and HPCL) to acquire stakes in RRPCL.
According to the latest reports, Saudi
Aramco and Adnoc will jointly own 50 % of
the new joint venture Company RRPCL, with the remaining 50 % will
be owned by the Indian Consortium. This means that the three parties will now
jointly develop and build the integrated mega refinery and petrochemicals
complex. The joint venture will provide for joint ownership, control, and
management of the project. Along with this, it will bring together crude
supply, resources, technologies, experience, and expertise of multiple oil
companies.
Why is
Ratnagiri Refinery Project important for Saudi Armco and Adnoc?
The move has been undertaken by both the
companies as it intends to strengthen its access in India, one of the world’s
largest and fastest growing refining and petrochemical markets. Also, investing
in India is a vital part of Saudi Aramco’s global downstream strategy. This
collaboration will also enable Saudi Aramco to go beyond just a crude oil
supplier to a more integrated and play a stronger position in the Indian oil
and gas scenario, which will lead to more partnerships in other areas in the
near future.
Author / Editor: Ahlam Rais / Wolfgang Ernhofer
PROCESS WORLDWIDE
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