RPL-SEZ focus on high octane alkylate, petcoke
Ahmedabad, Apr 10: Reliance Petroleum Limited (RPL) proposes to achieve USD 5-6 per barrel higher Gross Refining Margin (GRM) than the benchmark Singapore margins at its proposed 27 million tonne per annum (mtpa) refinery at Jamnagar Special Economic Zone (SEZ) as per the Nelson Complexity Index (NCI) of 14.
With an NCI of 11.3, the existing 33 mtpa Reliance Industries Limited (RIL) refinery in the adjoing plot at Jamnagar has already achieved 3.6 per barrel higher GRM than the Singapore margins in 2005.
Addressing news persons here today about the forthcoming Initial Public Issue (IPO) for the Rs 27,000-crore new refinery, being promoted by Reliance Industries Ltd (RIL), its executive director Nikhil R Meswani said REL-SEZ focus is on foreign market, mainly the USA and Europe.
He said the company proposes to take advantage of the huge price differential between heavier crude and superior refined oil.
''There are not many takers for heavier and cheaper crude, and at at the same time there are non many refinaries to produce superior and costlier motor spirit,'' he said.
Quoting industry sources, he said, '' 81 per cent of the refineries in the world and 97 per cent of them in North America are more than 25 years old. They cannot refine heavier crude, nor do they produce finer oils.'' ''They will have to set up new refineries or upgrade the existing ones to catch up with RPL-SEZ,'' Mr Meswani said and added, ''RPL proposes to commission the new refinery at Jamnagar SEZ by December 2008, in 36 months from zero date (as against the world average of 60-5 months),'' he added.
The Issue, comprising 135-crore equity shares of Rs 10 each at premium of Rs 57-62 to be decided by book building route, opens on April 13 and closes on April 20, 2006.
The net size of IPO available to public si 45 crores. The retail investors in India will have to pay only Rs 16 per share at on application as they can apply for a minimum of 100 and a maximum of 1,600 shares.
''The advantage of the proposed refinery-cum-petrochemical project at the RPL-SEZ would be the capability to using heavier low-cost crude to produce high quality premium petroleum products like Alkylates to comply with Euro-IV norms, keeping developed markets of the USA and Europe.
RPL-SEZ's other advantage will be producing high-worth petcoke and polypropylene, besides premium high octane value alkylates,'' he said.
The promoters (RIL) will also provide its surplus infrastructure capacity of its existing 33 mtpa refinery complex to provide various services to RPL-SEZ at a cost. The existing RIL complex has varying degree of surplus capacity at Single Point Mooring (SPM) off Jamnagar coast, jetty in the Gulf of Kutch, huge tank farms, desalination plant and captive power plant.