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New Indian JV of BP and Reliance begins operations

July 13/2020

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 Reliances 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 Indias 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 - Indias most valuable company - and pleased that our partnership has grown in both substance and spirit over this past decade.

"Reliances digital capabilities, technical expertise and reach complement our international fuels and service offers. Todays 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 Indias 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.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, LLDPE, crude and gaz condensate, PP random copolymer, propylene, ethylene, petrochemistry, BP Plc, Reliance Industries, Sabic, Saudi Aramco, India, Rossiya, Saudi Arabia.
Category:General News
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