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Saudi Aramco signs MoU to build $44bn refinery and petrochemicals complex in India

EBR Staff Writer Published 11 April 2018

Saudi Aramco has signed a memorandum of understanding (MOU) with a consortium of Indian oil companies to jointly develop and construct a $44bn refinery and petrochemicals complex at Ratnagiri in the western Indian state of Maharashtra.

The MoU has been signed with Ratnagiri Refinery and Petrochemicals (RRPCL), a consortium made of Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).

Saudi Aramco said that it could look out for a strategic partner to co-invest with it in the new refinery that will come up on India’s west coast.

The partnership is expected to bring together crude supply, resources, technologies, experience, and expertise of the four oil companies into the mega refinery project.

According to the partners, the refinery will be designed to process 1.2 million barrels of crude oil per day to produce a variety of refined petroleum products like petrol and diesel that are expected to be compliant with BS-VI fuel efficiency norms.

It will also supply feedstock for the integrated petrochemicals complex, which will have a production capacity of nearly 18 million tonnes per annum of petrochemical products.

Indian Petroleum and Natural Gas Minister Dharmendra Pradhan said that the Indian consortium and Saudi Aramco and an additional strategic partner will own the project on a 50:50 basis.

Saudi Aramco president and CEO Amin H. Nasser said: “The signing marks a significant development in India’s oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India’s fast-growing demand for transportation fuels and chemical products.

“Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India’s future energy demands.”

Apart from the refinery, cracker and downstream petrochemicals plants, the Ratnagiri project will also see development of associated facilities that include logistics, crude oil and product storage terminals, raw water supply project along with centralized and shared utilities.

Image: Singing of the MOU between Saudi Aramco and the Indian consortium. Photo: courtesy of Saudi Arabian Oil Co.