Saudi Aramco plans to build a US$44 billion refinery and petrochemical complex on India’s west coast with a group of Indian companies as it looks to expand its international footprint.
The Saudi national oil company signed a preliminary agreement on Wednesday with Ratnagiri Refinery and Petrochemicals (RRPC), a consortium of Indian oil companies comprising Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPC), and Hindustan Petroleum Corporation (HPC), to jointly develop and build an integrated refinery and petrochemicals complex at Ratnagiri, in the state of Maharashtra, according to a company statement.
With a processing capacity of 1.2 million barrels of crude oil per day, the refinery will be able to produce a range of refined petroleum products, including gasoline and diesel.
Saudi Aramco said it may also look to include a strategic partner to co-invest in the refinery.
“Investing in India is a key part of our company’s global downstream strategy, and another milestone in our growing relationship with India,” said Saudi Aramco president and CEO Amin H. Nasser, adding that the launch of Aramco Asia’s New Delhi office last year came with a mandate to expand international portfolio in the key economic growth region.
The Ratnagiri Refinery and Petrochemicals will rank among the largest world refining and petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand, Saudi Aramco said in the statement, adding the project cost is estimated at around $44 billion.
The refinery will also provide feedstock for the integrated petrochemical complex, which will be capable of producing approximately 18 million tons per annum of petrochemical production.
A pre-feasibility study for the refinery has been completed and the parties are now finalising the project’s overall configuration. Following the signing of the MOU, the parties will extend their collaboration to discuss the formation of a joint venture that would provide for joint ownership, control, and management of the project.
In addition to the refinery, cracker and downstream petrochemical facilities, the project will include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralised and shared utilities.