Archive for October, 2012

RIL’s Jamnagar Refinery Listed Among The World’s Top Five Refineries

October 30, 2012

RIL (Reliance Industries Limited)’s Jamnagar refinery is listed as one among the world’s top five manufacturing units. The Discovery Channel will outline world’s top five largest factories:Reliance’s Jamnagar Refinery, Volswagen ‘s car plant, Kitt Green Foods plant, NASA’s Kennedy Space Center, POSCO ‘s steel plant.

This listing was done based on factors including the largest building, complex size, employee strength, annual production in tonnage and initial investment. The release also announced Jamnagar refinery as the number one manufacturing units judging on these parameters. These five units were shortlisted among over 70 lakh manufacturing units worldwide. After short-listing these five companies, the channel embarked on a fine toothcomb analysis where it verified and analyzed their findings with the help of a comprehensive questionnaire.

The team in fact stopped at Jamnagar, stayed there for 3 days to study and shoot the entire key sub – sites like the jetty, pipe ranks, tank firms,and took some aerial shots of the huge complex. They have also shot the interiors of RIL’s national operations control center (NOC).

Mukesh Ambani owned Jamnagar Refinery, commissioned on 14thJuly , 1999 has an installing capacity of 668, 000 barrels per day. It is built to refine different types of crude oil (sour crude, sweet crude, and a mixture of both) and is also equipped to manufacture different grades of fuel from motor gasoline to Aviation Turbine fuel (ATF). It was created in a record time of less than three years and will always remain a memorable experience for the country’s largest private sector, RIL.

Previously, The British Safety Council in London awardedReliance’s SEZ refinery at Jamnagar with the ‘Globe of Honor award’ for its proficiency in environmental management. RIL’s refinery was awarded with this prestigious award for its culture of best practice for health and safety throughout the business. Right from the boardroom to the shop floor, everything was taken into consideration. The British Safety Council is a global health, safety, and environmental charity. It has been a forerunner of workplace health and safety for the last fifty years.

News is that the company intends to raise its capacity with its twin refineries. It also plans to set up a petroleum coke gasification product to produce synthetic gas, replacing the exorbitant LPG at its refinery. It is eyeing on refinery configuration, with the objective of producing more value added products.

RIL Set To Get A Higher Price For KGD6 Gas

October 23, 2012

The Prime Minister announced that RIL (Reliance Industries Limited) could set its own market price for its KGD6 gas, as per the contract. Hence, the conglomerate is free to increase the price from April 2014. PulokChatterjee, Principal Secretary to the Prime Minister mentioned that through bidding, the company can comprehend if consumers are ready to pay more than the present price- $4.2 per mmBtu, when it is time for revision in April 2014.

According to sources close to the development, the PMO mentioned that this price determining procedure would be putto fruition based on the Production Sharing Contract (PSC). For contractors like RIL, the PSC entails an open and transparent system of bidding with an arm’s length price, whichis then put forward to the Government in the process of approval. A few sources claim that there was an immediate alteration in the price of $ 4.2 per million British units byMukeshAmbani led RIL in January. It later changed this price in June to perch on a rate equivalent to the one that the country spends on import of Liquefied Natural Gas (LNG) from April 1, 2014.

RIL, the oil and energy giant expects to set the priceat 12.67 percent of JCC, Japan Customs – Cleared Crude along with an additional $0.26 per million British thermal unit. With this, gas will cost $12.93 per mmBtu at$ 100 per barrel oil price. With this pricing strategy applied, RIL’s price will be equal to that of Petronet LNG Ltd whichthe country’s largest liquefied natural gas importer isbuying LNGaccounting to 7.5 million tonnes per annum from RasGas of Qatar.

Sources mention that RIL will first ascertain if the demand remains the same for the increased price. For the same, they will call for bids from the customers, especially power and fertilizer. The new rates will come to the fore if the hike in price does not negatively affect the demand.

The Empowered Group of Ministers (EGoM)received a note circular that mentioned that the hike in the rate to USD 14.2-14.51 per mmBtu from the present USD 4.2 per million British thermal unit would enable the company to generate increased revenue of USD 4.1 billion. The Production Sharing Contract (PSC) did not specify any fixed period for the approved prices to be valid.

RIL‘s Jamnagar SEZ Refinery Honored With ‘Globe Of Honor Award’ From The British Safety Council

October 15, 2012

The British Safety Council honors RIL (Reliance Industries Limited)’s Jamnagar SEZ Refinery with ‘Globe of Honor Award,’ acknowledging its adeptness in environmental management. RIL announced that it would be presented with the prestigious award on 23rd November, at Mansion House, in London. With its origin in 1957, The British Safety Council is an international charity with its interests in health, safety, and the environment. It has been a pioneer one to introduce workplace health and safety, since the last fifty years, and has evolved to become one of the leading independent occupational health, safety, and environmental organizations in the world.

There were thirteen applicants in total and nine have been deemed eligible for the award. Jamnagar’s SEZ is the only Indian body that qualified for the leading list. Besides, it is a momentous moment for Reliance Group as it is for the first time that the company has been awarded for its manufacturing site.

An autonomous adjudicator was employed to give away the scores to the applicants in this five star environment audit where the applicants were entailed to present a culture of recommended practices to be followed in business with respect to health and safety from the grass root level to the top most position. RIL’s Jamnagar refinery obtained a score of 68 out of 72 marks.

In 2010, The Institute of Engineers had previously awarded the oil and gas segment of the Mukesh Ambani led refinery with the ‘Safety Innovation Award.’ This award lauded it for its operational proficiency, environmental management, quality, safety, and corporate social responsibility.

As the largest grass-roots refinery in the country and the third largest refinery in the world, the Jamnagar Refinery is capable of processing 27 million tons of crude per annum. It is designed to refine varied types of crude oil and manufacture different types of fuel from motor gasoline to Aviation turbine fuel with the petrochemical plant producing plastic and fiber intermediaries. The refinery is known for its complexity index of 11.3 that enables it to process heavy and sour crude oil resulting in the production of superior quality products.

Reliance Global To Buy BP’s Malaysian Plant

October 4, 2012

Reliance Industries Limited, India’s petrochemical and energy giant is in talks with British Oil Company’s petrochemical company about its acquisition of the company’s plant in Malaysia for USD 230 million. Embarking upon this acquisition will enable it to develop a completely integrated system for all its businesses. These talks about the complete acquisition of BP’s purified terephthalic acid plant by Reliance Global Holdings in Malaysia have been held in Hong Kong.

Head of BP’s aromatic business in Asia, James Yim, mentioned that Mukesh Ambani led Reliance is already their natural owner owing to the huge consumer base of Recron Malaysia, Reliance Group’s arm. Besides, RIL is a major feedstock supplier at Kautan. Accounting for a production capacity of 6,10,000 tones per year (tpa), this plant is located in the state of Pahang on the east coast of the Malaysian Peninsula. Rolled out in 1996, this plant is powered by BP’s own PTA Technology. On the other hand, RIL’s PTA plants are based on Invista‘s technology. The acquisition will pave way for the protection of both the technology separately.

Sources claim it to be an all cash deal that will include the net value of working capital and cash based on the Malaysian Ringitt to the USA Dollar at the exchange rate of 3.1. Hence, the final value cannot be determined now, as it will depend on the Ringitt exchange rate at that particular time. The present BPCM staff may be transferred to the new ownership under the same terms and conditions. This acquisition will also enable RIL to leverage its Hualon’s polyester production.

Previously, BP chalked out a divestment program where it intended to position itself as a smaller company. This change in strategy would enable them to utilize its resources effectively by shifting its focus to promising markets and as a result, augment the investor’s confidence. It had relinquished from its ethylene and polyethylene related activities to Petronas, state owned company in 2010 that plunged owing to the oil spill in Mexico. Sources claim that it has further sowed seeds for divesting assets estimated to be around $14 billion before the end of this year.

Talking about their global PTA business that accounts for a one-fifth of global PTA production capacity, Nick Elmslie, CEO of BP Petrochemicals stated that they would continue to employ PTA Technology regarding deploying innovative technology in the most bustling areas like China, setting the ground for a massive expansion program. They are looking for a time when their technology will give them an edge over others with respect to high utilization rates in OECD markets.