Cost of Reliance's export oriented refinery at Jamnagar is half that of others

12-Jun-08

The Rs 270 bln (US$6.3 bln) export-oriented refinery that Reliance Petroleum Ltd. (RPL) is setting up in Jamnagar will incur half the cost than that of a new refinery anywhere in the world, as per the company's 2007-08 annual report. International Energy Agency has estimated capital cost of new refinery projects to exceed US$20000 (per barrel) per day. Interestingly, the Jamnagar plant will incur a capital cost of less than US$10000 per barrel per day. The greenfield refinery, with a daily production capacity of 580,000 barrels, is coming up adjacent to the existing refinery and petrochemicals complex of Reliance Industries Ltd. Full production will begin in December, ahead of schedule. The refinery will be one of most complex in the world- capable of processing almost all varieties of crude. Its capital cost of US$665 per complexity barrel per day is much lower than the average capital cost of $2600 per complexity barrel per day for new refinery projects globally. The refinery and petrochemical complex will constitute the Reliance group's special economic zone in Jamnagar. The petrochemical plant will produce 900,000 tpa of polypropylene.