At 45th AGM, Reliance unveils Rs 75k-cr plan to boost oil to chemicals biz

'We are committed to maximise oil to chemicals integration and convert our advantageous feedstock streams to high-value chemicals and green materials,' says RIL chairman

Mukesh Ambani at 45th AGM
Mukesh Ambani at 45th AGM
Reuters New Delhi
2 min read Last Updated : Aug 29 2022 | 6:39 PM IST
Reliance Industries Ltd, operator of the world's biggest refining complex, will invest Rs 75,000 crore ($9.38 billion) over 5 years to expand its oil to chemical business, its chairman Mukesh D Ambani said.

"We are committed to maximise oil to chemicals integration and convert our advantageous feedstock streams to high-value chemicals and green materials," Ambani said at an annual shareholders meeting.

Reliance's two refineries at Jamnagar in Gujarat have the capacity to process about 1.4 million barrels per day of crude.

Refiners in India and elsewhere are boosting petrochemicals output to meet rising demand and help hedge against lower margins for conventional fuels as consumption of gasoil and gasoline is set to ease with a global push for clean energy.

Reliance last year announced a plan to invest over $10 billion to build four giga factories at Jamnagar to produce solar cells and modules, energy storage batteries, fuel cells and green hydrogen.

The Group has set an ambitious target to become a net carbon zero company by 2035, aiding the national goal of net zero by 2070 set by Prime Minister Narendra Modi.

Globally oil and gas companies have set varying targets for net zero emissions.

Ambani on Monday announced a plan to set up a fifth giga factory for power electronics.

He said Reliance, already one of the world's largest producers of grey hydrogen, will begin transitioning to green hydrogen by 2025 and expand its solar manufacturing capacity to 20 gigawatts by 2025 for its own consumption.

Reliance is in talks to partner with global electrolyser technology players to set up a giga-scale electrolyser manufacturing facility at Jamnagar to deliver green hydrogen at low cost, he said.

Reliance already has a tie up with Stiesdal for pressurised alkaline electrolyser technology.

As part of its strategy to maximise oil to chemicals integration, Reliance will strengthen its polyester and Vinyl chains by 2026 through building of new facilities and expansion of existing units as well as setting up a carbon fibre plant.

($1 = 79.9290 Indian rupees)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Reliance IndustriesMukesh Ambanitextile industryPetrochemicals

First Published: Aug 29 2022 | 3:23 PM IST

Next Story