Local opposition has prompted the Maharashtra government (India) to relocate the 1.2 mb/d (around 60 Mt/year) Ratnagiri refinery project. The land acquisition process has been stopped and the project is likely to be moved to another place within the state, where local population will not oppose it. However, the future location is still unknown at the moment.
Saudi state-run oil and gas company Saudi Aramco signed a Memorandum of Understanding (MoU) with the Indian consortium Ratnagiri Refinery and Petrochemicals (RRPCL) to join the project in April 2018. RRPCL - a consortium of three Indian oil companies, namely Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) - will own 50% in the project, while Saudi Aramco will take over the remaining 50%. Investing in the project fits into the company's global downstream strategy, enabling it to go beyond its crude oil supplier role and reach a fully integrated position in the oil supply chain. Besides, the steady fuel supplies will help it to secure regular buyers for its oil production.
The total cost of the project, which includes a 18 Mt/year petrochemical complex, is estimated at US$44bn. The facility is expected to produce a range of refined petroleum products such as gasoline and diesel, meeting BS-VI fuel efficiency norms. The project will also include associated facilities such as a logistics, crude oil and product storage terminals, raw water supply, as well as centralized and shared utilities. Upon completion, it will help to meet India's fast-growing fuels demand.
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