MOSCOW (MRC) -- India’s planned giant refinery and petrochemical project, which is being built with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), will cost more than the originally planned USD45 billion, reported Reuters with reference to India’s oil minister.
The 1.2 million barrels-per-day (bpd) giant coastal project is part of India’s plans to raise its refining capacity by 77% to 8.8 million bpd by 2030. It is being built at Roha, around 100 km (62 miles) south of Mumbai.
"The primary plan was around USD45 billion, it will be more than that," Dharmendra Pradhan told reporters at the World Energy Congress in Abu Dhabi, declining to say by how much.
Sources told Reuters last month that India had increased the cost estimate of the project by more than 36% after protests by farmers forced its relocation.
The project is expected to cost $60 billion, sources told Reuters at the time, but is still expected to be commissioned in 2025.
Pradhan confirmed the commissioning date and said other issues are progressing, without elaborating.
Global oil producers are vying to gain entry into India to establish a stable outlet for their output and to earn profit from the South Asian nation’s strong gasoline and petrochemical demand prospects due to the rising disposable income of its 1.3 billion population.
As MRC wrote before, in eary October, 2019, Saudi Aramco announced that it would supply agreed grades and volumes to India’s Reliance Industries in October after the world’s top oil exporter had to provide alternate heavier grader due to drone attacks on its oil installations.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
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