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Reliance unveils new project to source US ethane to feed crackers in India

08.20.2014  | 

Reliance is planning to upgrade its crackers to maximize the cracking of ethane and also to have maximum operational flexibility to optimize feedstocks with complete control of the supply chain.

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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."
 
"Reliance’s 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 competitiveness," the company added.

Reliance says it is planning to upgrade its crackers to maximize the cracking of ethane and also to have maximum operational flexibility to optimize feedstocks 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 America.

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.

"The project 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.



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MShah
08.23.2014

HOW LONG THE WAVE OF SHALE GAS DRIVING ETHANE FEED BASED ETHYLENE PRODUCTIONJ WILL LAST? WHAT WILL BE THE IMPACT TO C3/C4 OLEFINS PRODUCTION TO MEET DEMAND OF CURRENT POLYMERS, PLASTICIZERS, AND CHEMICAL INDUSTRIES?

DR ANAND HALGERI
08.23.2014

RELIANCE HAS COME WITH EXCELLENT STRATEGY OF IMPORTING ETHANE FROM UNDER SHALL GAS AVAILABILTY AT USA. THIS WILL HELP RELIANCE TO PRODUCE POLYMERS AT MUCH COMPETITIVE PRICE THAN ITS COMPETITORS .HATS OFF TO REILANE

GOVIND RAM
08.22.2014

RELIANCE HAS TAKEN ONCE AGAIN RIGHT ACTION AR RIGHT TIME AND SHOWN THEIR LOVE FOR SUPPLY CHAIN INTEGRATION WITH SCALE AT HIGHEST LEVEL. ONLY QUESTION IS HOW LONG BRINGING ETHAN FROM USA AND PROCESSING IN INDIA WILL BE COMETETIVE COMPARED TO PLAYERS HAVING PLANT NEAR SOURCE OF RAW MATERIAL.

Mitul
08.21.2014

Good news for team RIL. A very strategic decision by team RIL as always.

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