RIL to add $300 - $400 m in oper­at­ing profit this fis­cal by re­plac­ing naph­tha with eth­ane

Chemical Industry Digest - - News & Views -

Re­liance

In­dus­tries Ltd (RIL) will add $300 - $400 mil­lion to its oper­at­ing profit this fis­cal by in­creas­ing the amount of eth­ane used as feed­stock in its petro­chem­i­cal plants. RIL’s rev­enue from its petro­chem­i­cal busi­ness stood at ` 87,623 crore for FY17.

This sav­ings in cost by us­ing cheaper eth­ane is due to RIL’s eth­ane im­port project — which in­volved buy­ing cryo­genic eth­ane (stored at -90°C), trans­port­ing the eth­ane to In­dia in cus­tom-made ships (very large eth­ane car­ri­ers or VLECs) or­dered from Sam­sung In­dus­tries, Korea, and build­ing pipe­lines to trans­port the eth­ane to the petro­chem­i­cal plants at Da­hej, Hazira and Nagothane — cost $1.6 bil­lion and took two-anda-half years to build.

The fa­cil­ity al­lows the com­pany to im­port 1.6 mil­lion tonnes of eth­ane every year, mak­ing RIL the largest im­porter of eth­ane from the US.

RIL’s gas crack­ers at Da­hej (Gu­jarat) and Nagothane (Ma­ha­rash­tra) will run at full ca­pac­ity us­ing eth­ane as feed­stock, while also con­tribut­ing to pro­duc­ing 33 per cent of eth­yl­ene from the Hazira (Gu­jarat) cracker, in place of the more ex­pen­sive naph­tha. This is ex­pected to add 200,000 tonnes of ad­di­tional eth­yl­ene mak­ing RIL the low­est cost pro­ducer of eth­yl­ene in this part of the world, ac­cord­ing to Vipul Shah, COO, Petro­chem­i­cals, RIL

RIL uses 2.5 mil­lion tonnes a year of naph­tha as feed­stock in petro­chem­i­cal crack­ers and eth­ane will re­duce its use by 500,000 tonnes, which can be ex­ported. At Da­hej, the com­pany has built the world’s largest cryo­genic eth­ane stor­age tank, the size of a cricket sta­dium. RIL is also close to com­plet­ing a ded­i­cated 480 km un­der­ground eth­ane pipe­line which will trans­port the gas from Da­hej to its two other crack­ers in Hazira and Nagothane.

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