India: Oil and Gas Everything you Need to Know About the 40 Billion Dollar Ratnagiri Refinery Project
The India-based project is expected to process 1.2 million barrels of crude oil per day and will produce a range of refined petroleum as well as petrochemical products. Expected to be commissioned in 2022, the project aims to meet India’s fast-growing fuels and petrochemicals demand. Read more about the engineering mega project in the article.
Plans to build the largest single location refinery complex in the world are already underway. Expected to come up in Ratnagiri, the western state of Maharashtra in India, a mega investment of this size and scale has never been implemented in any part of the country. The prime project is already making headlines with Saudi Arabian Oil Company – Saudi Aramco and the Abu Dhabi National Oil Company (Adnoc) owning 50 % stake in the project. PROCESS Worldwide brings to you all the relevant information and stats you need to know about this mammoth assignment.
Ratnagiri Refinery – Size does matter!
The world-class project will be spread over 15,000 acres and boasts of a refinery-cum-petrochemical complex. Capable of processing 1.2 million barrels of crude oil per day (60 million metric tonnes per annum), the project will produce a range of refined petroleum products, including gasoline and diesel meeting BS-VI fuel efficiency norms. In addition to this, higher quality automotive and aviation fuels benchmarked to international standards such as the Euro-VI along with a range of petrochemical products will also be produced at the complex.
Feedstock would also be made available from the refinery for the integrated petrochemical complex, which will be capable of producing approximately 18 million tonnes per annum of petrochemical production. The complex will possess in-built flexibility for processing a wide spectrum of light and heavy crude oil grades, and for this purpose, numerous blending techniques will be installed. The project would be self-sufficient in power and utilities requirements and will comprise over 50 inter-connected units that will be designed to operate at the highest level of efficiency. The project will also include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralized and shared utilities.
Status of the Project
Estimated to cost around 44 billion dollars – 50 billion dollars, the refinery-cum-petrochemical complex is scheduled to be commissioned by 2022. The project aims to meet India’s fast-growing fuels and petrochemicals demand. Pre-feasibility study for the refinery has already been completed and the preliminary configuration study of the project is being carried out by Engineers India in association with an international consultant. Meanwhile, IHS will conduct the market study for the chemicals and petrochemicals to be produced at the complex. Once completed, the project is expected to contribute to the growth of the state’s GDP by over 10 % and enable the state to become a trillion dollar economy. Lastly, the project is strategically located which makes it convenient for imports and exports.
Brain behind the Ratnagiri Refinery Project
The Government of India under its mighty domestic oil and gas companies – The Indian Oil Corporation (IOCl), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have established a new joint venture company called ‘Ratnagiri Refinery and Petrochemicals Ltd’ (RRPCL). This firm will be responsible to carry out the project. Recently, Saudi Aramco along with Adnoc have also signed agreements with the Indian Consortium (IOCl, BPCL, and HPCL) to acquire stakes in RRPCL.
According to the latest reports, Saudi Aramco and Adnoc will jointly own 50 % of the new joint venture Company RRPCL, with the remaining 50 % will be owned by the Indian Consortium. This means that the three parties will now jointly develop and build the integrated mega refinery and petrochemicals complex. The joint venture will provide for joint ownership, control, and management of the project. Along with this, it will bring together crude supply, resources, technologies, experience, and expertise of multiple oil companies.
Why is Ratnagiri Refinery Project important for Saudi Armco and Adnoc?
The move has been undertaken by both the companies as it intends to strengthen its access in India, one of the world’s largest and fastest growing refining and petrochemical markets. Also, investing in India is a vital part of Saudi Aramco’s global downstream strategy. This collaboration will also enable Saudi Aramco to go beyond just a crude oil supplier to a more integrated and play a stronger position in the Indian oil and gas scenario, which will lead to more partnerships in other areas in the near future.
The implementation of this project has opened up ample opportunities for consultants specialising in refinery designing, technology, IT, project management as well as vendors dealing with the supply of construction material, tools and equipment, support service for plant maintenance, and much more. RRPCL is issuing tenders this year, to stay updated on the latest tenders of this project, log onto www.rrpcl.com/tender_page.