Reliance seeks nod for LPG exports
RIL Industries, has sought Govt's permission to export 148,000 tonnes of surplus LPG in May-July.india Updated: May 05, 2006 15:52 IST
Reliance Industries Ltd, which operates India's largest refinery at Jamnagar in Gujarat, has sought government permission to export 148,000 tonnes of surplus LPG in May-July.
Indian Oil Corp, on behalf of the industry, had last fiscal tied-up several tonnes of LPG imports from suppliers including Saudi Aramco of Saudi Arabia and Abu Dhabi National Oil Corp.
But with domestic demand remaining slack, it asked RIL, which has an international trading desk, to help dispose of the surplus cargoes.
Industry sources said Reliance wants IOC, which had tied-up the imports for itself and on behalf of sister public sector oil firms Hindustan Petroleum and Bharat Petroleum, to import the contracted cargoes and the surplus LPG in the system could be exported by RIL from its Jamnagar refinery.
"As RIL suffers losses in disposal of LPG import cargoes in the international market, it would be prudent for RIL to plan export of its own produced LPG," the company wrote to the Petroleum Ministry.
Currently, LPG cannot be exported without Government nod.
RIL, which had in March exported 39,000 tonnes of LPG and 33,000 tonnes of LPG in April for IOC, sought permission to export 148,000 tones of LPG during May-July period, as identified by oil industry for disposal.
The industry had identified 57,000 tonnes of LPG for export in May, 32,000 tonnes in June and 59,000 tonnes of LPG for export in July, sources said.
"In view of the urgency to manage LPG containment crisis, RIL has disposed of the oil industry's LPG import cargoes for the months of March and April in the international market, at substantial losses," the company wrote.
In June, Saudi Aramco's three cargoes - two ship loads of 13,000 tonnes each meant for IOC and HPCL and one cargo of 6,000 tonnes of BPCL, was to be exported.
For July, IOC wanted two cargoes of 13,000 tonnes each from Saudi Aramco and one cargo of 20,000 tonnes from ADNOC to be exported while HPCL wanted to dispose off a 13,000 tonnes cargo from Saudi Aramco, sources said.