As global demand for naphtha and fuel sinks, RIL likely to commission partial capacity at Jamnagar refinery by December-end

17-Nov-08

As demand for naphtha and fuel oil sinks globally, it seems likely that Reliance Petroleum will commission only 50% of its refinery's capacity at Jamnagar by December-end. It is likely to produce 31 ktpd of diesel, 25 ktpd of petrol, sulphur, pet coke and naphtha by December-end, deferring production of fuel oil and polypropylene till February-end. 4 out of 8 crude oil storage tanks have also been commissioned, an official close to the development, and a 400-MW captive power plant is ready to be commissioned. The 29 mln tpa refinery will export almost all of the fuels it produces. These exports are primarily aimed at the US and Europe, where the demand for fuel has slowed to multi-year lows in the face of an economic crisis.