Reliance to implement project to source 1.5 mln tpa of ethane from USA to feed crackers in India

21-Aug-14

Reliance Industries Ltd (RIL), which has investments in shale gas and oil business in the US, will be sourcing ethane for its petrochemicals complex at Jamnagar from that country, starting next fiscal year. A note released by the company on Wednesday evening said Reliance is implementing a project to source 1.5 million tonnes per annum (mtpa) of ethane from the US to feed its crackers in India. Reliance has now executed storage and capacity agreements for liquefaction and export of ethane with a North American terminal, which is expected to commence operations in H2-2016. The project will significantly improve the long-term competitiveness of our cracker portfolio through dedicated feedstock, enhanced margins, higher capacity and end-to-end integration, as per a company note in LiveMint.com The imports from the US will help the company in bringing down its costs further as that will ensure a steady flow of raw materials at a pre-determined cost, making its cracker portfolio—ethylene, polyethylene or polythene (PE), paraxylene (PX) and purified terephthalic acid (PTA) competitive, said an analyst.