Reliance Industries is agreed to buy six very large ethane carriers (VLEC) from Samsung Heavy Industries Co Ltd for USD 600 mn, marking the company’s biggest maritime initiative in recent times.
The carriers will be carrying liquified ethane from the US to RIL’s refinery in Jamnagar, Gujrat.
RIL had earlier entered into a strategic association with Mitsui OSK Lines, a Japanese shipping powerhouse for the ethane carriers in December 2014.
Reliance has got USD 300 mn in financing from Korea Exim Bank (KSure) while another USD 300 mn of asset-based ship funding has been provided by global banks such as Bank of America Merril Merrill Lynch, Standard Chartered Bank and SMBC.
RIL could save INR 2,000 crore every year by importing 1.5 Mt ethane annually from the US, said experts.
RIL has already invested in storage and capacity agreements for liquefaction and export of ethane with a total capex of USD 1.5 billion, expecting to commence operations in H2-2016.
A receiving and storage facility is being built in India for the liquefied ethane and pipeline infrastructure for delivery besides upgrading its crackers to maximize efficiency.
The BPCLauthorities plan to produce super absorbent polymers (SAP) in the next phase used for the manufacturing diapers and sanitary napkins as well.
Reliance Industries to sign USD 600 million pact with Samsung Heavy Industries for six ethane carriers
