Published on August 25, 2017
India's most valuable company, Reliance Industries, is ready to gain further from backward integration that would increase margins at its petrochemicals operations.
As per report, with the start of the ethane substitution project, which entails importing 1.6 million tonnes of ethane from the US every year, RIL would lower its dependence on feedstock such as propane and naphtha that are used in ethylene production.
RIL is the first company in the world that has started large-scale ethane import to supply feedstock to its petrochemical unit.
"The ethane import project could add $300-400 million to the operating profit of the company based on the current crude oil prices. However, the potential benefit could expand if crude oil heads north." Said by Vipul Shah, COO petrochemical at RIL.
