Reliance Industries is eyeing the multi-billion dollar high-octane gasoline market in the US. Reliance Petroleum, the wholly owned subsidiary of RIL, plans to convert the bulk of gasoline from its proposed SEZ refinery into high-octane gasoline and export it to the US market.
"RIL is planning to tap the high-octane fuel market in the US where the conventional additives which raises octane in the fuel have been phased out owing to environmental concerns and it's desperately looking for gasoline mixed with new generation environment friendly additives," said a senior official from an oil refining company. When contacted RIL official refused to comment on the issue.
RPL plans to commission 27 million tonne of new refinery in SEZ by December 2008 just adjacent to the 33 million tonne existing refinery near Jamnagar.
The new refinery of the company will have alkylation unit with a capacity of 85,000 barrels per day which produces additives to increase octane number of fuel, said sources.
Interestingly sources said, RIL may also consider selling additives separately in the US. Additives such as Tetraethyle Lead and MTBE have been banned in most parts of the world.
"The additives commands substantial premium in the US market and makes an ideal choice for RPL to export," said sources.
To facilitate US and the Europe with high octane fuel from new proposed refinery in SEZ, RIL plans to set up two single buoy mooring facilities at its existing jetty, said sources.
The export of petroleum products from the existing refinery takes place through the jetty located next to the refinery at Jamnagar. RIL uses its existing two SBMs connected with the jetty to import crude from the carriers.
The present list of countries importing petroleum products from Jamnagar refinery of RIL include countries such as Pakistan, Iran, UAE, South Korea and many multinationals operating in the Asian and the Middle East region.
Europe is also on RIL's list for exports of diesel and gasoline, said sources. The European market is also starving of automobile fuel and demand is increasing rapidly for gasoline as well as diesel especially for Euro IV grade fuel with 50 ppm sulphur content.
While the existing refinery of the company at Jamnagar will sell Euro III grade fuel to the Asian countries, the new refinery in SEZ will focus on western markets for advance grade fuels, said sources.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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