Reliance signals end of R-LNG use by Dec. 2018

Vol 21, PW 20 (12 Jul 18) Midstream & Downstream

December 2018 will be a big month for Mukesh Ambani.

Not only is his son getting married, but Reliance will finally be in a position to cut R-LNG intake at its 1.24m b/d Jamnagar refinery and petrochemical complex. During Reliance's Annual General Meeting on July 5, Ambani said the company's showcase pet coke gasification project had been commissioned and 'stabilised'.

But well-placed sources tell us that in reality eight 'gasifiers' will take another six months to 'stabilise' or get to the point they are each producing 2.35m cm/d 'syngas' - a fuel mix of hydrogen, carbon monoxide and carbon dioxide. Until then Reliance will continue to import LNG.

This month (July) it expects to land four cargoes at Hazira. Last month it took in three: one from PetroChina, another from Shell company SITME and a third from a consortium of BP, Vitol and SITME.

In May the company bought four cargoes after landing a similar number in April, around the time it began commissioning the gasifiers at the much-delayed $5bn facility to produce 'syngas' from pet coke, a low value refinery byproduct. Once the gasifiers are fully operational R-LNG intake at Jamnagar will drop from between 8-11m cm/d to just 2m cm/d - bad news not just for the Shell-Total terminal at Hazira where Reliance imports most of its LNG but also for Gujarat State Petronet which stands to lose gas transmission charges.

India Refining Summit