24-Oct-16 Reliance Industries is set to buy six very large ethane carriers (VLEC) from South Korea’s Samsung Heavy Industries Co Ltd for US$600 mln, marking the Mukesh Ambani-led company’s biggest maritime initiative in recent times, as per sources in economictimes.com. These carriers, the largest such ships to be built, will carry liquefied ethane from the US to RIL’s refinery in Jamnagar off the coast of Gujarat.
RIL had entered into a strategic association with Japanese shipping powerhouse Mitsui OSK Lines for the ethane carriers in December 2014. Mitsui is supervising construction and will operate and manage the fleet for RIL with deliveries commencing in December. Sources said Reliance has received $300 million in financing from Korea Exim Bank (KSure) while another $300 million of asset-based ship funding has been provided by a consortium of global banks, including Bank of America Merril Merrill Lynch, Standard Chartered Bank and SMBC. By importing 1.5 mt ethane annually from the US, RIL could save Rs 2,000 crore every year, experts said. With a total capex of $1.5 billion, RIL has already invested in storage and capacity agreements for liquefaction and export of ethane with a North American terminal, expecting to commence operations in H2-2016. It is also building a receiving and storage facility in India for the liquefied ethane and pipeline infrastructure for delivery besides upgrading its crackers to maximise efficiency.
With the BPCL Kochi Refinery mooting a Propylene Derivative Petrochemical Project (PDPP) which would produce around 2.5 lakh metric tonne of propylene (currently imported) annually , industries that manufacture paint, coatings, adhesives, water treatment devices and solvents are likely to get a boost.
In the next phase, the BPCLauthorities plan to produce super absorbent polymers (SAP) used for the manufacturing diapers and sanitary napkins as well.
As part of Rs 20,000 crore Integrated Refinery Expansion Project (IREP) of BPCL Kochi Refinery , around five lakh metric tonne of propylene is expected to be generated.”Under the PDPP, derivatives of propylene such as acrylic acid, acrylates and oxo alcohols can be produced. These can be used for manufacturing prod ucts like paint, coatings, adhesives, water treatment devices and solvents etc,” said officials with BPCL Kochi Refinery .
“As of now, propylene and SAP are not commercially produced in the country. So, industries using propylene and SAP as raw materials import propylene. Once we start commercial production, ancillary industries can flourish in the country , especially in Kerala,” he said. The PDPP project, work on which has already started, is likely to be commissioned in 2018.
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