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MOSCOW (MRC) -- BP and Reliance Industries Limited
(RIL) have announced the start of their new Indian fuels and mobility joint
venture, Reliance BP Mobility Limited (RBML), according to Hydrocarbonprocessing.
Following initial agreements in 2019, BP and RIL teams have worked
closely over the past few months in a challenging environment to complete the
transaction as planned. BP has paid RIL USD1 billion for a 49% stake in the
joint venture, with RIL holding 51%.
Operating under the “Jio-bp” brand,
the joint venture aims to become a leading player in India's fuels and mobility
markets. It will leverage Reliance’s presence across 21 states and its millions
of consumers through the Jio digital platform. BP will bring its extensive
global experience in high-quality differentiated fuels, lubricants, retail and
advanced low carbon mobility solutions.
BP and RIL expect the
venture to grow rapidly to help meet India’s fast-growing demands for energy and
mobility. India is expected to be the fastest-growing fuels market in the world
over the next 20 years, with the number of passenger cars in the country
estimated to grow almost six-fold over the period. RBML aims to expand from its
current fuel retailing network of over 1,400 retail sites to up to 5,500 over
the next five years. This rapid growth will require a four-fold increase in
staff employed in service stations - growing from 20,000 to 80,000 in this
period. The joint venture also aims to increase its presence from 30 to 45
airports in the coming years.
Commenting on the partnership Mukesh
Ambani, Chairman and Managing Director of Reliance Industries Limited said:
"Reliance is expanding on its strong and valued partnership with bp, to
establish a pan-Indian presence in retail and aviation fuels. RBML will aim to
be a leader in mobility and low carbon solutions, bringing cleaner and
affordable options for Indian consumers with digital and technology being our
key enablers."
Bernard Looney, bp chief executive officer, said: "India
has been leading the way with innovations in digital technology, value
engineering and new energy solutions. It is a country that will require more
energy for its economic growth and, as it prospers, its needs for mobility and
convenience will accelerate. bp has a proud history in India spanning over
a century. We are honored to be a strategic partner with Reliance - India’s
most valuable company - and pleased that our partnership has grown in both
substance and spirit over this past decade.
"Reliance’s digital
capabilities, technical expertise and reach complement our international fuels
and service offers. Today’s announcement is another milestone in our common goal
to serve the Indian consumer. This new venture is a unique opportunity to build
a leading, fast-growing business that can help meet India’s demands and create
exciting new digital and low-carbon options for the future."
Reflecting
the companies’ net zero ambitions, the new joint venture aspires to provide
Indian consumers with advanced fuels with lower emissions, electric vehicle
charging and other low carbon solutions over time. RBML is also committed to the
decarbonization of its own operations as well as that of its wider
ecosystem.
RBML has received the marketing authorization for
transportation fuels, amongst other necessary regulatory and statutory
approvals. The joint venture will begin selling fuels and Castrol lubricants
with immediate effect from its existing retail outlets, which will be rebranded
to “Jio-bp” in due course.
As MRC wrote before,
Reliance Industries is continuing talks with Saudi Aramco to form an
oil-to-chemicals (O2C) partnership, despite apparent lack of progress as Aramco
concentrated on completing a deal to acquire majority stake in Sabic. In April,
analysts said that the collapse in the price of crude oil had raised the risk
that the USD15-billion deal for Aramco to acquire a 20% stake in Reliance
Industries’ O2C division may not go through.
We also remind that
RIL has been running
its two refineries almost uninterrupted at its integrated Jamnagar petrochemical
complex despite the lockdown.
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 595,170 tonnes in the first five
month of 2020, up by 10% year on year. Deliveries of all ethylene polymers,
except for linear low density polyethylene (LLDPE), rose partially because of an
increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP
shipments to the Russian market was 457,930 tonnes in January-May 2020
(calculated by the formula production minus export plus import). Deliveris of
exclusively PP random copolymer increased.
Reliance Industries is one of
the world's largest producers of polymers. Thus, the company produces among
others polypropylene, polyethylene and polyvinyl chloride. |
