RIL orders six new ships to transport Ethane

Mumbai

Reliance Industries Ltd has ordered construction of six huge ships to transport liquefied Ethane from North America to India, an official statement said here Thursday.

The company has signed a deal with Mitsui O.S.K. Lines Ltd, one of the world’s largest shipping companies.

MOL will supervise the construction of six Very Large Ethane Carriers (VLECs) ordered by Reliance, and also operate and manage the vessels after they are built and delivered.

Background:

Reliance Industries has entered into agreements to long haul US-produced ethane to feed its cracker at the Jamnagar refining and petrochemical complex in Gujarat.The cracker will be commissioned in the second half of 2016. It will nearly double its ethylene production capacity to 3.3 million tonne a year.Reliance Industries is implementing a project to source 1.5 million tonne per annum of ethane from US to feed its crackers.With the growth of shale gas industry in North America in last five years, 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.It has executed storage and capacity agreements for liquefaction and export of ethane with a North American Terminal, which is expected to commence operations in the second half of 2016.

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