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Reliance Refinery & Coker Expansion ready Start Nov but may delay 1Q09 due margins

Home Forums Coking News: DCU, Upgrader 1.Coker (registered users only) Reliance Refinery & Coker Expansion ready Start Nov but may delay 1Q09 due margins

This topic contains 6 replies, has 2 voices, and was last updated by  Charles Randall 11 years, 12 months ago.

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  • #3325

    Charles Randall
    Participant

    Reliance May Delay Production at New Refinery, Mint Reports

    By Pratik Parija
         Nov. 7, 2008 (Bloomberg)
    Reliance Industries Ltd. may delay the
    start of production at its new oil refinery at Jamnagar in the
    western Indian state of Gujarat,
    Mint reported, citing company
    officials it did not identify.
         Operations at the plant may start in early 2009 instead of
    the second half of 2008, the newspaper said.
        
    The delay may be beneficial because refining margins
    are
    tight, according to the report.
         Plans for the refinery are as per schedule, the newspaper
    cited Reliance Industries spokesman Paresh Chaudhry as saying.
    The 580,000 barrel-a-day refinery is expected to start operating
    by the end of November, Reliance said
    on Oct. 8.

  • #6463

    Charles Randall
    Participant

    Here is update on Reliance Refinery & Coker expansion which is ready start end November but may be delayed until 1Q09 due refining margins. The new 580 MBD addition will ~ double refining capacity of existing 660 MBD plant and the new coking unit’s 8 drum unit was designed by Foster Wheeler who dealso signed the first coking unit in 1998 – also an 8 drum unit (at time worlds largest coker).  The new petcoke production will eventually feed a gasifier to make SNG but some intitial volume will be sold into the fuel coke market until the gasifier is completed.
     
    Regards

  • #6427

    Anonymous

    Does Reliance sell in to both the fuel and calcined grade markets? Will the new facility be able to supply to both markets?

  • #6423

    Charles Randall
    Participant

    Reliance produces mainly a fuel coke – some tonnes may go calcinable market but doubtful its aluminum coke quality.  The new coker production may be marketed for limited time buy current reseller but it will eventually go into a Petcoke Gasifier that will use all 8,000 tpd to make power & it is possible some of the original coker production will be used as well.
     
    Regards

  • #6390

    Charles Randall
    Participant

    Shadow on $900m aid to RIL

    Press Trust Of India / Washington December 21, 2008, 0:44 IST

    A group of US Congressmen has asked the country’s Export-Import (Exim) Bank to suspend $900 million worth of assistance to Reliance Industries Ltd (RIL), until the Mukesh Ambani-led Indian conglomerate stops business with Iran.

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    In a statement issued here, Congressman Brad Sherman said that he, along with a “bipartisan group of House colleagues”, had sent a letter to the Exim president, calling on the bank to suspend assistance to RIL, until it agreed to stop selling gasoline to Iran.
    The letter also calls on Exim to do a better job in the future to ensure that the projects it supports are not in conflict with the US national interests. Exim has approved two separate loan guarantees worth $900 million, including a $400-million package in August, 2008.
    Reliance has been a major supplier of refined petroleum products to Iran. According to some reports, Reliance has at times provided as much as 30 per cent of oil-rich Iran’s need for imported refined petroleum products.
    Exim’s assistance was approved to help finance the expansion of Reliance’s refining complex at Jamnagar, the very facility that provides Iran with gasoline.
    Reliance’s subsidiary Reliance Petroleum Ltd (RPL) is set to fully commission 580,000-barrels-per-day only-for-exports refinery at Jamnagar by March and, along with its existing 660,000-barrels-per-day facility, would become the world’s largest single-location refinery.

  • #6094

    Anonymous

    What is the project cost of coker at RIL

  • #6092

    Charles Randall
    Participant

    The cost of a coker in almost any refinery is a meaningless value for almost anyone except vendor bidding on that aspect of the project. The Reliance Expansion was nearly a complete duplication of the existing Mega coking Refinery (660MBD) by adding a new $5.7B, 580MBD, complex 8 drum coking refinery/petrochemical complex.
     
    Since a coker is a Mid-Stream unit, you cannot just add this unit (except in rare cases) unless you expand both the capacity in upstream crude/desalter/vacuum distillation section and the downsteam units handling the intermediate products like FCC (due Coker gas oil feed), Alky (c3 & c4 Olefins), HDS units (~75% all gasoline sulfur comes from  Coker/FCC units) and Reformer units. So stand alone coker projects do not correctly reflect the true cost of adding a coker because they do not carry the unit expansion cost required from its addition.
     
    You could back into the bulk of stand-alone coker portion by adding up Foster Wheelers EPC project contract cost to put in the 8 drum coking unit & its EPC project cost for the 4 delayed coking furnace contract. There are great deal of the current Reliance Export Refinery project & previous initial project news release on cost posted on the coker & refinery news items – you can dig out the values and compare to SEC reports earnings capital cost recaps.
     
    But it is pusedo value that is still very misleading, more so due to todays multiplicity of downstream unit options & products. Because of its size and the low labor cost the Reliance coker values on Capital $/per BPSD project cost are at the low end of these stand alone type coker cost. Hope this helps
     

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