RIL ups Linde's Jamnagar expansion deal by 50%

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RIL ups Linde's Jamnagar expansion deal by 50%


Guess who’s benefiting the most from Reliance Industries’ (RIL) ambitious cutting-edge ongoing refinery expansion project at Jamnagar that among other things plans to produce synthetic gas from coal?

RIL has significantly upped the scope and worth of its earlier pact with Munich-based Linde AG, parent of industrial gases producer Linde India, by 50% to €700 million, or about Rs 5,900 crore.

In a deal signed in April, Linde’s engineering division would supply four large air separation units for the production of gaseous oxygen and another two to produce high-purity oxygen to the ethylene glycol facilities in Jamnagar.

RIL needs massive streams of oxygen for its proposed petroleum coke and coal gasification facilities. To treat the synthesis gas generated during this gasification process, Linde would also deliver two acid gas removal units.

“In the course of 2013, the scope of this major project was further expanded to include, for example, Linde providing RIL with four sulphur recovery plants and a pressure swing adsorption plant to produce pure hydrogen on the Jamnagar site. As a result, the total value of the order for Linde is now over €700 million,” Linde has said during results announcement last Friday. It is not yet known how much of this transaction would flow into the Indian arm.

Energy conservation continues to be Reliance’s major area of thrust.

“One such initiative is the coke gasification project which is under rapid execution. Through this project, pet coke at the refinery will be upgraded to Syngas (synthetic gas) for further use as fuels and for hydrogen and chemicals production,” RIL chairman Mukesh Ambani had said in his annual general meeting speech in June.

Reliance is also building one of the world’s largest ethylene crackers taking advantage of refinery integration at Jamnagar. This project will be commissioned in the second half of 2016 and would nearly double the ethylene capacity to 3.3 million tonne a year.

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