Reliance Industries will invest $9.75 billion to build a crude-oil-to-chemicals complex at its facility in Jamnagar, India.
The project will have a combined capacity to produce 8.5 million tonnes of ethylene and propylene, 3.5 million tonnes of benzene, toluene and xylenes, 4 million tonnes of paraxylene and orthoxylene as well as other derivatives.
Wood Mackenzie senior research analyst Afsar Hussain says: 'The project will be one of the largest crude-to-chemicals projects to exist. The new capacity additions will raise India's olefins capacity by 28%, taking total capacity to over 18 million tonnes. Additionally, the project will provide a significant leap in India's aromatics capabilities, raising total capacity by 80% to around 17 million tonnes.
'The crude feedstock for the project is likely to be supplied by Aramco, who have a 20% stake in Reliance's refining and chemicals business.
'This is a bold move to secure crude market share and counter stagnating demand into transportation fuels, with petrochemicals expected to be the fastest growing oil demand sector through 2040.'