Reliance Industries, HPCL Mittal plan refinery expansions

NEW DELHI Thu Apr 17, 2014 8:57pm IST

A man walks past a Reliance Industries Limited sign board installed on a road divider in Gandhinagar January 17, 2014. REUTERS/Amit Dave/Files

A man walks past a Reliance Industries Limited sign board installed on a road divider in Gandhinagar January 17, 2014.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Reliance Industries (RELI.NS), owner of the world's biggest refining complex, and HPCL-Mittal Energy Ltd (HMEL), part owned by steel tycoon L N Mittal, have sought environment ministry approval for raising capacity of their plants.

Reliance (RELI.NS), whose two plants at Jamnagar in Gujarat has installed capacity to process about 1.2 million barrels per day (bpd) oil, has the capability to turn the heaviest crude into value added products.

Billionaire Mukesh Ambani's Reliance seeks to add a fifth crude train of 400,000 bpd, some polymer units and changing the fuel for 450 megawatt of an already approved 2100 MW power plant from gas to coal, a note on the ministry's website said.

"Currently margins are low, demand also might not warrant such a huge expansion so the actual capacity addition may take some years," said an Asian trader.

The timings and the cost of expansion depend on getting the necessary government approvals, which may take months to years.

The new train will also help Reliance in further diversifying its crude portfolio and processing some of the "dirtiest, heaviest and high acid crude", said the trader.

"This could be their strategy to take all approvals in advance so at a future date they need not run after the bureaucracy for the approval," said an industry source.

A second trade source said Reliance may be taking an advance approval so that

The proposal mentions that annually 1.8 million tonnes of imported coal would be required for the 450 MW power plant.

In a separate proposal, HMEL seeks to raise capacity of its existing 180,000 bpd Bathinda refinery in northern India to 225,000 bpd.

(Reporting by Nidhi Verma, editing by William Hardy)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage