RPTL plans port infrastructure
RPTL plans to develop additional port infrastructure to receive large carriers to feed its upcoming Jamnagar refinery.india Updated: Mar 31, 2006 17:46 IST
Reliance Ports and Terminals Ltd (RPTL) plans to develop additional port infrastructure to receive very large crude carriers to feed Reliance Industries' upcoming Rs 27,000 crore refinery in Jamnagar.
The new refinery, which would be the world's sixth largest when it is completed by December 2008, would have a capacity of 580 kilo barrels per stream day (KBPSD), while RIL's existing refinery here has a capacity of 660 KBPSD.
The combined capacity of the two refineries would make Reliance's Jamnagar refining facility the world's largest single location refinery centre.
At present capacity levels, there are only two refineries bigger than the existing RIL facility -- Praguana Refining of Venezuela and SK Corp of South Korea.
"Our proposed refinery will be located on the west coast of India in close proximity to the Middle East, the largest crude oil producing region in the world. We expect this to result in lower ship turnaround time and crude freight costs", a company official told visiting newspersons.
"In addition, our refinery will be located close to the existing port and tank facilities of RPTL which plans to establish additional port infrastructure capacity", he added.
Reliance Petroleum Limited (RPL), a 100 per cent subsidiary of RIL is a start-up company formed to set up a Greenfield petroleum refinery and polypropylene plant to be located in the SEZ in Jamnagar.
"Our intention is to complete construction and commission the refinery and the polypropylene plant in or around December 2008. We have entered into agreements with Bechtel France SA to license the technology for the major process units of the refinery and polypropylene plant.
"Bechtel will also provide engineering, project management and other construction services for the project", the official added.
He said: "We believe that the proposed refinery will gain from RIL's prior experience in constructing and operating the Jamnagar refinery, especially in the areas of design and engineering construction, labour and resource optimisation, greater use of local materials and resources and faster implementation".
"We expect these factors will result in a significant reduction in the capital cost for the project and enable us achieve lower costs per barrel, adjusted for complexity", he said.
"The company in its draft Red Herring prospectus filed with Securities and Exchange Board of India for raising capital through an IPO has revealed our proposed refinery is designed to have an atmospheric distillation capacity of approximately 580 KBPSD which would make it the sixth largest refinery globally", the official said.
The capital cost of the new RPL refinery is estimated at Rs 27,000 crore. "We propose to fund the project through debt of Rs 15,750 crore and equity of Rs 11,250 crore including proceeds from the issue", he said.
Any additional equity raised in excess of Rs 11,250 crore will be used as additional contingency for the project, he said, adding that the company has entered into a preliminary term sheet with certain banks and financial institutions to provide for a syndicated term loan facility for approximately Rs 6,750 crore.
"We intend to seek additional financing through export credit agencies for approximately Rs 4,500 crore to Rs 6,750 crore. We anticipate raising further debt funding of approximately Rs 2,250 crore to Rs 3,375 crore in accordance with the funding requirements for the project, as they rise", he added.
Besides its global capacity, the new refinery at RPL has been designed to process a variety of feedstock, with an API gravity ranging from 15-50, including lower cost, heavier and sour crude oils and produce high quality transport fuels and other higher value added petroleum products which meet the most stringent international environment requirements, the official said.
It will also be capable of processing bottom-of the barrel products such a vacuum residue to yield value added products such as LPG, naptha, gasoline and diesel, he added.
First Published: Mar 31, 2006 17:46 IST