Reliance prepares to slash LNG imports

Vol 20, PW 22 (27 Jul 17) News in Brief

Bad news for Shell and Total's Hazira terminal.

Reliance chairman Mukesh Ambani has declared that its much-delayed $5bn petcoke gasification project at the 1.24m b/d Jamnagar refinery is almost ready. This means the company will drastically cut LNG imports, sooner rather than later.

Ambani confirmed this in a 14-page speech delivered at the company's 40th Annual General Meeting in Mumbai on July 21. "The gasification complex is at an advanced stage of commissioning," said Ambani, without confirming a timeframe.

Reliance brought in 2,220,483 cubic metres LNG across 16 cargoes at Hazira from January 1 to June 30 this year and presently uses 11m cm/d R-LNG for its refinery and petrochemical complexes. But under the pet coke project Reliance has installed eight gasifiers, each with a capacity to produce 2.35m cm/d of 'syngas' or 18.8m cm/d - totally wiping out its requirement for R-LNG.

"Reliance might not replace the entire quantity at once," says an industry source. "But R-LNG will be replaced as it ramps up syngas production."

LNG Summit