LD RELIANCE

New Delhi, Dec 25 (PTI) Reliance Petroleum Thursday
created history when it commissioned an only-for-export
refinery in just 36 months at rock-bottom prices to create the
world's largest refining hub at Jamnagar in Gujarat.

RPL commissioned a 580,000 barrel a day (29 million
tonnes a year) refinery adjacent to its parent Reliance
Industries' existing 33 million tonne per annum refinery.

The two units together will be the world's largest
refining complex with an aggregate processing capacity of 1.24
million barrels of oil per day.

The USD 6 billion new unit, built in a Special Economic
Zone (SEZ), is one of the most complex refineries in the
world, capable of processing the most difficult crude oils.

"RPL commenced its crude processing (Thursday). The
secondary processing units are now under synchronisation and
commissioning. The entire refinery complex is expected to
attain full capacity shortly," the company said in a press
statement here.

The refinery will export the fuel, compliant with the
most stringent Euro IV norms, to the US and European and
African countries.

The company, however, did not say when full commissioning
would take place.

Sources said it may take up to three months for a unit of
that size to become fully operational. Reliance Industries'
existing refinery began the trial run in July 1999 and was
fully commissioned in October that year.

The crude distillation unit (CDU), the front end of a
refinery which converts crude oil into various products like
naphtha, kerosene, diesel and petrol, was started Thursday and
it normally takes 8-10 days for the first product to be ready
for delivery, sources said, adding that it (the first product)
would be in the market by early January.

The new refinery may initially use lighter sweet crude
(low sulphur) for up to two months, before using higher-
sulphur crude when it becomes fully operational. In phase 1,
it would produce diesel, naphtha and jet kerosene. Petrol
production may start by February or the beginning of March.

Initially, the refinery will produce Euro IV grade petrol
and diesel and will upgrade to Euro V once more complicated
units like the desulfurisation unit are fully operational.

US energy major Chevron Corp holds a five per cent stake
in RPL and has time till March to take it up to 29 per cent.

RPL aims to process medium grade crude with an American
Petroleum Institute (API) gravity of 24 degrees at the new
plant. Reliance's current refinery is processing crude of 26
API.

The company is likely to produce 31,000 tonnes of diesel
per day, and 25,000 tonnes of petrol, sulphur, pet coke and
naphtha per day. It will, however, put off producing fuel oil
and polypropylene till February-end.

"The state-of-the-art, globally competitive RPL refinery
has been completed in 36 months from concept to commissioning,
which is a new benchmark for building a grassroots refinery of
this scale and complexity.

"This refinery has been built with a significant capital
cost competitive advantage," the statement said, adding "this
record has been achieved in spite of the significant shortfall
in engineering and construction resources that has impacted
most other refinery projects globally."

RPL is one of the world's most complex refineries with a
Nelson Complexity index of 14.0. This will enable the refinery
to process heavy crude varieties and produce superior quality
products. PTI ANZ
DEP