RIL to expand petrochem biz

RIL to expand petrochem biz

Also aiming global scale in oil & gas exploration and alternate energy

“Reliance has taken up new petrochemical capacity additions,” RIL Chairman and Managing Director, Mukesh Ambani, told shareholders at the company’s 35th AGM here.

He said the company wants to realise a commitment it made in 2007 of adding two-million tonnes per year of olefins (key ingredient for making polymers) and matching downstream capacities at its petrochemical complex at Jamnagar.

“The recent economic downturn has also provided us opportunities to optimise capital costs, schedules and execution methodology for these projects. With this addition, Reliance will have close to four-million tonnes of olefins and downstream capacities,” he added.

The petrochemical giant also plans to expand its presence in butadiene rubber and will make investments accordingly. RIL presently operates twin refineries at Jamnagar with a combined capacity of refining 1.24-million barrels of all kinds of crude per day. Meanwhile, RIL, said it is eyeing overseas acquisitions, aggressive exploration campaign and investments in petrochemicals to drive growth.

Overseas buys

RIL is aiming global scales in its core business of conventional energy - petrochemicals, refining and oil and gas exploration, even as it invests in new ventures like retailing and alternative energy.

“Global growth by acquisitions” is key to growing its energy business, Ambani told shareholders. “Our efforts would be to grow the conventional energy” business through greater “global scale.”

Though Ambani did not elaborate, his comments assume importance as RIL is said to be looking at acquiring petrochemical and oil refining assets in the US and may also be looking at venturing into shale gas business.