[INDIA] Reliance Industries to start Jamnagar refinery this year

India's Reliance Industries said it will commission its two last projects, including a refinery in the city of Jamnagar, later this year.

"Two large projects, founded on the energy growth platform, will be commissioned in the second half of this financial year. They will mark a historic milestone in Reliance's leap to global heights," said Mukesh Ambani, chairman and managing director.

He was addressing the company's annual general meeting. He said the Jamnagar refinery will create the largest refining site in the world. Commissioning of oil and gas production systems will make Reliance Industries one of the largest deep-water international oil and gas companies in the world. In addition, the East-West pipeline gas transmission system, built by Reliance Gas Transportation Infrastructure Ltd., will connect Indian towns and cities with its gas resources.

Ambani said gas sales, which will commence this year, will be at a wellhead price equivalent to $25.2 per barrel of crude oil as compared to the current market price of $135 a barrel of crude oil.

"However, as crude oil prices began to rise dramatically to a record high, the government decided to provide subsidies only to the public sector petroleum retailing companies. Absence of a level playing field between private and government-run petroleum retailing companies gave rise to an un-viable situation. Therefore, Reliance had no alternative but to suspend sales of petrol and diesel from its retail outlets, especially because of the high price environment," Ambani said.

Source: United Press International

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