Reliance Industries [Get Quote] is all set to become the single largest gas producer in the country with a more than 50 per cent market share, RIL's Chairman and Managing Director Mukesh Ambani told the company's shareholders in Mumbai on Thursday.

With ever-increasing demand for oil and petroleum products, the company's foray into exploration and production will contribute to value creation.

In addition to development of KG-D6, the company will continue its ongoing efforts of exploration and development of various blocks, Ambani said at the 34th annual general meeting of the company.

The high oil price environment and stretched refining systems would also benefit the company, he added.

We expect this business segment to deliver sustainable long term returns, Ambani said.

Reliance's efforts were now focused on two projects -- the development of the KG-D6 block and the implementation of the new refinery at Jamnagar, through its subsidiary RPL, he added.

"Our new refinery will be operational in the second half of FY 09. The completion of the refinery will increase Reliance's ability to process crude oil from 0.66 to 1.24 million barrels per day, equivalent to about 2 per cent of global capacity," Ambani said.

The 5,80,000-barrel-a-day refinery is being built adjacent to Reliances existing unit of 6,60,000-barrel-a-day plant at Jamnagar.

The commissioning of oil and gas production systems will make Reliance one of the largest deep-water oil and gas companies in the world.

The company had 41 discoveries to date and an overall success ratio of 63 per cent. Its coal based methane block in Sohagpur has a capacity of 3.76-trillion cubic feet, Ambani said.

The East-West gas pipeline from KG-D6 will be completed by the year-end, he added.

Deep water exploration activities would be expanded with the additional of six rigs by H2 FY 09.

"We have been allotted two blocks in Yemen, three in Peru and have gross, contingent reserves of five billion barrel oil equivalent. The gross reserves is accretive to target 10-billion barrels of oil equivalent, Ambani said.

Ambani also informed that Reliance will sell gas this year at $25 per barrel equivalent.

Reliance's two major deepwater fields were poised to come on-stream with a combined capacity of around 5,50,000 barrels of oil equivalent per day. This is about 44 per cent of India's current indigenous production, Ambani said.

At current crude oil prices of $135 per barrel, they imply an annual saving of Rs 1,14,000-crore (Rs 1,140-billion) in energy imports by India," he added.

On its polyester business, Ambani outlined his growth strategy which included both greenfield investments and acquisitions.

"We will consolidate our position (in the polyester business) by pursuing greenfield investments and acquisitions in the entire value chain," Ambani said.

A new refinery at Jamnagar, expected to be operational in six months, would add a further 9-lakh tonne per annum to the company's polypropylene capacity.

"Our new 2.5-million tonne per year paraxylene manufacturing facility in Jamnagar will provide a platform for growth in our polyester business in India and overseas," he said.

Presently, Reliance commands a global marketshare of seven per cent in the polyester fibre and yarn business. "Our capacity is more than double the capacity of our nearest competitor globally," Ambani said.

The RIL chairman described organised retailing as 'a major growth platform for Reliance.'