India’s Reliance plans major expansion at world’s largest oil refinery complex

A man opens the shutter of a shop painted with an advertisement of Reliance Communications in Mumbai, India, in this November 3, 2015 file photo. (REUTERS)
Updated 21 September 2017
0

India’s Reliance plans major expansion at world’s largest oil refinery complex

NEW DELHI: India’s Reliance Industries, operator of the world’s largest refining complex, is considering expanding its oil processing capacity by over 40 percent by 2030, according to two sources familiar with the matter.
Reliance may expand the capacity at its dual refinery complex in Jamnagar in the western Indian state of Gujarat by 30 million tons a year to 100 million tons per year, according to the sources, who saw the expansion plans in a presentation by the company on potential energy scenarios to 2030.
Reliance made the presentation to India’s Center for High Technology (CHT), a unit of the Ministry of Petroleum and Natural Gas that evaluates projects and assesses their technological requirements.
The plans signal that Reliance remains bullish on the outlook for India’s fuel demand even as the government is considering plans to electrify all of the country’s vehicles by 2032.
Still, India’s demand for diesel and gasoline to power existing and future combustion engine vehicles will likely remain strong as its population grows and becomes more wealthy.
“The plan is to have petrol and diesel output capacity of close to 60 million tons by 2030, produced from cheaper heavy grades,” said one of the sources.
Reliance did not respond to a request for comment on the possible expansion.
Reliance operates two refineries at the Jamnagar complex with an installed capacity of 1.2 million barrels per day (bpd), or 60 million tons per year.
The plants typically operate above their installed capacity and process 1.4 million bpd of crude, or about 70 million tons per year. The refineries are among the most complex in the world and have facilities that can maximize the production of diesel and gasoline from so-called heavy, or higher density, crude oil that typically sells for less than other crude grades.
Raising the refining capacity at the Jamnagar complex to 100 million tons per year would equal about 2 million bpd.
The expansion makes sense in light of forecasts for strong fuel demand growth in the country, the world’s third-biggest oil consumer. Consultant FGE estimates India’s fuel demand will rise to 6.5 million bpd in 2030 from an estimated 4.2 million bpd in 2017.
Although Reliance has not yet prepared a blueprint for the expansion and details of the costs are yet to be worked out, it would require around $10 billion to complete the plan, said one source.
In 2014, Reuters reported that Reliance was planning a 400,000 bpd expansion at the Jamnagar site. That plan is yet to be approved by the environment ministry, according to the ministry website.
— Reuters


Lufthansa to start flights to Israeli Red Sea resort Eilat

Updated 18 July 2018
0

Lufthansa to start flights to Israeli Red Sea resort Eilat

  • More than 175,000 foreign tourists flew into Ovda in the first five months of 2018
  • Lufthansa said it would fly to Ovda from Frankfurt and Munich twice weekly starting Oct. 28

JERUSALEM: Lufthansa said on Wednesday it will launch four weekly flights to Eilat, the Red Sea resort which Israel hopes to turn into a winter vacation spot for foreign tourists.
More than 175,000 foreign tourists flew into Ovda, a converted military airfield 60 km (40 miles) from Eilat, in the first five months of 2018, double the amount for all of 2017.
Helping spur growth is a government grant of 60 euros ($70) per passenger for airlines starting routes to Eilat.
Lufthansa said it would fly to Ovda from Frankfurt and Munich twice weekly starting Oct. 28.
Eilat, Israel’s southernmost city, borders Jordan and Egypt. It will later be served by the new Ramon International Airport which is expected to open in early 2019.
Since 2015, a number of airlines, mainly low-cost, have been operating direct flights to Ovda, led by Ryanair and WizzAir.
“The number of flights to the city has increased from four weekly flights to more than 60 weekly flights,” said Tourism Minister Yariv Levin.
The Tourism Ministry has a budget of 30 million shekels ($8.25 million) a year for subsidising flights to Ovda.
“We are willing to pay more,” Levin said, adding the ministry is also in talks with British Airways. The airline declined to comment.
International tourist arrivals in Israel hit a record 3.6 million last year, pumping $5.5 billion into the economy.