Mukesh Ambani, the chairman of Reliance Industries Ltd (RIL) is clearly keen that his firm not to be left behind when the shift from fossil fuels to renewables reaches inflection point.
At the 41st AGM of RIL, Ambani announced that his company is exploring the creation of new opportunities in an environment where growth in fossil fuel demand could stagnate in a few years. Industry veterans expect a long-term decline to set in anytime between 2026 to 2032.
“We would now be focusing on maximising oil-to-chemicals conversion and upgrade all its fuels to high-value petrochemicals. The hydrocarbon business is thus poised for robust value creation and exciting times ahead,” said India’s richest man.
He went on to announce how RIL has successfully commissioned and stabilized the world’s largest Paraxylene (PX) complex. Currently, Reliance is the second largest PX producer in the world, with Jamnagar having the distinction of being the largest manufacturing facility of PX in the world (4.2 million MT of capacity).
Reliance’s ‘complex’ refinery at Jamnagar is the world’s largest refining hub when taken in totality. It is also one of the most modern refineries, capable of handling thick crudes, and consistently delivering one of the higher gross margins per barrel to Reliance, well above efficient refineries in hubs like Singapore.
Mr Ambani also announced the completion of the largest ever cycle of investment in the company’s core hydrocarbon business.
“This year we commissioned the world’s largest gasification project and completed it in record time. The gasification project eliminates our dependence on imported natural gas,” he said.
Furthermore, the company is proposing a cross-border merger of RHUSA ( Reliance Holding USA) with the company and targets 30-35 MMSCMD gas production by 2022.
Lastly, Ambani said RIL has also become the largest recycler of PET bottles in the country.