New site for Saudi Aramco-ADNOC refinery in India identified

Refining and Petrochemicals
20 June 2019

 

Government has identified a new site for the planned $44bn oil refinery that three state-run firms are building with Saudi Arabia’s Aramco and UAE’s ADNOC, according to Maharashtra chief minister Devendra Fadnavis.

The new site in Maharashtra would be in Raigad district, which is about 100km south of Mumbai, India’s financial capital.

Initially, the refinery was proposed to be built at Nanar, a village in Ratnagiri district of Maharashtra, about 400km south of Mumbai. A large group of farmers refused to surrender their land because it could have damaged the region famous for Alphonso mangoes, cashew farms and fishing colonies.

Because of the protests of farmers, the Maharashtra government suspended the land acquisition procedures for the proposed refinery in Nanar.

Together, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation own 50% stake in the Ratnagiri Refinery and Petrochemicals Ltd (RRPCL), the company that is building the refinery. The remaining stake is owned equally by Saudi Aramco and ADNOC.

The 1.2mbpd refinery and integrated petrochemical project will provide India steady fuel supply. Saudi Arabia’s and UAE’s interest in the project is to ensure regular buyers for their oil.

City and Industrial Development Corporation plans to acquire land from 40 villages in Raigad for the refinery.