Reliance Industries is implementing a new project
to source 1.5 million tpy
of ethane feedstock from the US to feed its crackers in
India, the company announced on Wednesday.
"The shale gas industry in North America has grown
exponentially in the past five years," Reliance said in a
media release. "As a result, ethane has become the dominant
feedstock for crackers replacing liquids."
"Reliances investments in shale gas and its existing
crackers portfolio in India
are a natural fit for
sourcing ethane from North America and shipping it to India
to attain long-term feedstock
Reliance says it is planning to upgrade its crackers to
maximize the cracking of ethane and also to have maximum
operational flexibility to optimize feedstock
s with complete control
of the supply chain.
According to the release, Reliance has already executed
storage and capacity agreements for the liquefaction and
export of ethane from a North American terminal, which is
slated to start operations in the second half of 2016.
To that end, Reliance says it is ordering six very large
ethane carriers (VLECs), which will be the largest vessels of
their kind ever built. The ships will be deliverd in late
2016, in sync with the radiness of the terminal in North
The company is also planning to develop a world-scale
receiving and storage facility in India
for liquefied ethane, and
subsequently a pipeline to deliver ethane to the crackers.
will significantly improve
the long term competitiveness of our cracker portfolio
through dedicated feedstock
, enhanced margins,
higher capacity and end-to-end integration
," the company said.