JOIN USReliance Industries will save about $450 million annually by importing 1.5 million tons ethane from the US for its petrochemical plant, says a report.
Imported Ethane will substitute its current propane imports and a portion of naphtha used for ethylene production.
“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.
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.
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.