<p>Reliance Industries will save about $450 million annually by importing 1.5 million tons ethane from the US for its petrochemical plant, says a report.</p>.<p><br />Imported Ethane will substitute its current propane imports and a portion of naphtha used for ethylene production.<br /><br />“Given depressed US ethane prices and rising production, we estimate an annual saving of $450 million from this feedstock substitution from FY18,” CLSA said in a research report.<br /><br />Reliance recently announced its plans to import 1.5 million tons per annum of ethane from North America which will be used as a feedstock in its existing crackers in India. The company has executed storage and capacity agreements for liquefaction of ethane with a North American terminal and has also ordered six VLECs (Very Large Ethane Carriers) for transporting ethane to India.<br /><br />Reliance’s current ethylene capacity stands at about 1.9 million tons per annum. Of this, 0.8 million ton (40 per cent) is gas (C2-C3) based while the remaining uses naphtha as a feedstock.<br /></p>
<p>Reliance Industries will save about $450 million annually by importing 1.5 million tons ethane from the US for its petrochemical plant, says a report.</p>.<p><br />Imported Ethane will substitute its current propane imports and a portion of naphtha used for ethylene production.<br /><br />“Given depressed US ethane prices and rising production, we estimate an annual saving of $450 million from this feedstock substitution from FY18,” CLSA said in a research report.<br /><br />Reliance recently announced its plans to import 1.5 million tons per annum of ethane from North America which will be used as a feedstock in its existing crackers in India. The company has executed storage and capacity agreements for liquefaction of ethane with a North American terminal and has also ordered six VLECs (Very Large Ethane Carriers) for transporting ethane to India.<br /><br />Reliance’s current ethylene capacity stands at about 1.9 million tons per annum. Of this, 0.8 million ton (40 per cent) is gas (C2-C3) based while the remaining uses naphtha as a feedstock.<br /></p>