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<keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>'s top oil company <keyword id="6354733" type="General" weightage="100" keywordseo="ioc" source="Orion">IOC</keyword> will invest Rs 61,077 crore in building a petrochemical complex at <keyword id="16552131" type="General" weightage="50" keywordseo="paradip-in-odisha" source="Orion">Paradip in Odisha</keyword> - its largest ever investment at a single location - as it doubles down on its transition plan. In a statement, <keyword id="6356834" type="General" weightage="50" keywordseo="indian-oil-corporation" source="Orion">Indian Oil Corporation</keyword> (IOC) said its board has given "Stage-1 approval for setting up <keyword id="49809" type="General" weightage="80" keywordseo="paradip" source="Orion">Paradip</keyword> petrochemical complex at Paradip, Odisha at an estimated cost of Rs 61,077 crore." "This mega project will be the largest-ever investment of Indian Oil at a single location," it said but did not give timelines for completion of the project. This is a part of its transition plan including boosting petrochemical intensity to help protect against volatility. Petrochemical intensity refers to the percentage of crude oil that is converted directly into chemicals that are used to make plastic and other material. Crude oil, pumped out of the ground and from below the seabed, is processed in refineries to make petrol, diesel and other fuel. It can be processed to make petrochemicals, bypassing the fuels. IOC's petrochemical intensity - the percentage of crude oil converted into chemicals- is low at 5-6 per cent currently. The company intends to take it up to 10-12 per cent. The firm's newer refineries at <keyword id="6360136" type="General" weightage="50" keywordseo="panipat" source="Orion">Panipat</keyword> in Haryana and Paradip in Odisha have the petrochemical intensity of 15-20 per cent which would be raised to 25 per cent, its chairman <keyword id="5281441" type="General" weightage="50" keywordseo="shrikant-madhav-vaidya" source="Orion">Shrikant Madhav Vaidya</keyword> had told PTI in an interview last month. Energy transition refers to the shift from fossil-based systems of energy production and consumption - including oil, natural gas and coal - to renewable energy sources like wind and solar, as well as lithium-ion batteries. This shift is likely to gradually cut demand for petrol and diesel and so in preparation of that IOC is doing petrochemical projects. The company said the petrochemical complex at Paradip would include a world-scale cracker unit along with downstream process units for producing several petrochemical products including polypropylene (PP), high density polyethylene (<keyword id="178943" type="General" weightage="50" keywordseo="hdpe" source="Orion">HDPE</keyword>), linear low-density polyethylene (LLDPE) and poly vinyl chloride (PVC) - these being building blocks of different grades of plastics. It shall also facilitate production of niche chemicals and petrochemicals like phenol and isopropyl alcohol. Talking of the development, <keyword id="6360405" type="General" weightage="80" keywordseo="vaidya" source="Orion">Vaidya</keyword> said, "This mega project is aligned with Prime Minister <keyword id="6354477" type="General" weightage="50" keywordseo="narendra-modi" source="Orion">Narendra Modi</keyword>'s vision of Purvodaya that is sure to accelerate the development trajectory and fuel prosperity in Eastern India. This cutting-edge, state-of-the-art petrochemical complex will undoubtedly be transformative in its impact, significantly advancing the Aatmanirbhar Bharat initiative." "This mega project shall significantly improve the petrochemical intensity index of IndianOil. It shall be a growth driver in making the company a major player in the petrochemical industry, while strengthening India's self-reliance in the petrochemical sector," he said. The project, the statement said, will catalyze the growth of PCPIR and Plastic Park at Paradip. "On commissioning of this project, domestically available Petrochemicals are expected to provide feed and vitalise industrial growth in key downstream industries like plastic, pharma, agrochemical, personal care, paints etc. It is also expected to create employment opportunities in eastern India, especially Odisha," it added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/chinese-app-tiktok-still-has-troves-of-personal-data-of-indians-report/articleshow/98913107.cms">Chinese app TikTok still has troves of personal data of Indians: Report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-growth-to-mirror-chinas-trajectory-over-next-decade-with-private-consumption-more-than-doubling-to-4-5-trn/articleshow/98912119.cms">India’s growth to mirror China’s trajectory over next decade with private consumption more than doubling to $4.5 trn</a>

Indian Oil to invest ₹61,077 crore in a petchem complex at Paradip in Odisha

<keyword id="2258380" type="UNKNOWN" weightage="80" keywordseo="Gulf-Petrochem">Gulf Petrochem</keyword> is going to set up an <keyword id="6533570" type="COMPANY" weightage="80" keywordseo="Ethanol">ethanol</keyword> manufacturing plant in India at the cost of Rs 1,000-crore, said a senior company executive. 

	It has been a decade since the government decided to blend 5% ethanol with fossil fuel to cut vehicular emissions, a measure that was later made mandatory. But India is far from reaching the target, managing at most 2% blending as oil marketing firms say there is not enough ethanol available, reported the Economic Times. 
 

	The country required more that 115 crore litres of ethanol to meet its target. But Indian units manufacture only 80 crore litres, creating a big gap between demand and supply for the product. 
 

	According to ethanol manufacturers who are mostly sugar makers, state levies and the price fixed by the Centre Rs 48.50 a litre is a deterrent to capacity expansion. 
 

	Manan Goel, Gulf Petrochem's group director, told ET: "We want to grow in India. Besides our oil business, we have diversified into steel. Now we want to get into ethanol manufacturing." 
 "States have been inviting <keyword id="6362476" type="ORGANIZATION" weightage="80" keywordseo="investments">investments</keyword> so we are looking for a site where we can get the land closer to the raw material availability," he said. The UAE-headquartered entity Gulf Petrochem, a company promoted by brothers <keyword id="122306" type="PERSON" weightage="60" keywordseo="Ashok-Goel">Ashok Goel</keyword> and <keyword id="2550855" type="UNKNOWN" weightage="80" keywordseo="Sudhir-Goyel">Sudhir Goyel</keyword>, has been mainly into oil trading, refining and bunkering. It now wants to enter the ethanol market with a production unit that would make around 60,000 kilolitres of ethanol by 2017-18. 

	While almost 90% of India's ethanol is manufactured from feedstock of molasses, the company may adapt a technology that uses rice husk.
 "There is a big market for ethanol and even at the fixed price the project is viable. The government has indicated that if there is ethanol available at the fixed price, oil marketing companies will buy it," said Brij <keyword id="235220" type="PERSON" weightage="80" keywordseo="Mohan-Bansal">Mohan Bansal</keyword>, <keyword id="210845" type="POSITION" weightage="80" keywordseo="Strategic-Advisor">strategic advisor</keyword> to the company. 

	Bansal said that so far the ethanol manufacturing units have been concentrated in states that produce sugarcane and, therefore, Gulf Petrochem is looking at other states which don't have enough capacity.
 

	It has shortlisted Punjab, Haryana and Madhya Pradesh and would finalise a site soon. 
 

	The current government is exploring increasing ethanol content in auto fuels to 10%. 

	 
	(Image: Gulf Petrochem website)

Gulf Petrochem investing Rs 1,000-crore to set up ethanol plant in India

New Delhi, Feb 11 () The government has no proposal to curb import of chemicals and petrochemicals by raising customs duty, Chemicals and Fertilisers Minister D V Sadananda Gowda said in Parliament on Tuesday. The import of chemicals and petrochemicals is on the rise in the last five years due to insufficient domestic supply, he said in a written reply to the Lok Sabha. "Currently, there is no proposal under consideration of the Department of Revenue to increase import duty to cut down imports," Gowda said. Import of chemicals and petrochemicals rose to 12.66 million tonne in 2018-19 fiscal from 12.34 million tonne in 2017-18. It stood at 11.33 million tonne in 2016-17, 11.04 million tonne in 2015-16 and 10.10 million tonne in 2014-15 fiscal, he said. "This increase of imports of chemicals and petrochemicals is due to insufficient domestic production capacity to meet the growing domestic demand, comparatively higher cost of production in the country, also due to comparatively smaller scale of operations," Gowda noted. The Minister also made it clear that the government has no plan to increase exports incentives under the Merchandise Exports from India Scheme (MEIS). LUX RVK

No plan to curb import of chemicals and petrochemicals: Govt

India’s largest oil refiner <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+Oil+Corporation">Indian Oil Corporation</a> would invest Rs 1.75 trillion over the next 7 years. This would help it increase output by 54% to nearly 100 million tonnes per year. 
 
"We have a capex plan of Rs 1.75 trillion over the next seven years. And out of this, Rs 50,000 crore will be for brownfield expansion at existing facilities", B Ashok, Chairman, <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+Oil">Indian Oil</a> said after the company's 56th annual general meeting. 
 
Ashok also said the company would invest Rs 35,000 Crores in <a href="http://www.businessinsider.in/searchresult.cms?query=marketing">marketing</a>, Rs 15,000 Crores for pipelines, Rs 35,000 Crores into exploration and production, Rs 30,000 Crores into <a href="http://www.businessinsider.in/searchresult.cms?query=petrochemical">petrochemical</a> projects, and Rs 7,000 Crores into gas. 
 
On the payments for <a href="http://www.businessinsider.in/searchresult.cms?query=Iran">Iran</a>, he said the <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+government">Indian government</a> is discussing feasible modes of payment. 
 
Image credit: Indiatimes

Indian Oil to invest Rs 1.75 trillion over 7 years

New Delhi, Feb 7 () The Competition Commission has dismissed a complaint filed against state-owned Assam Petrochemicals Ltd alleging abuse of dominant position. Assam Petrochemicals is a public sector undertaking of Government of Assam established for production of methanol and formalin. The order came on a complaint filed by Assam Plywood Manufacturers Association which alleged that Assam Petrochemicals is abusing its dominant position by charging a discriminatory price of formalin in Assam and West Bengal. While it charges Rs 15,300 per metric tonne (PMT) in Assam, it charges only Rs 11,000 PMT in West Bengal. Assam Petrochemicals stated that the production capacity of its factory is much more than the market requirement of formalin in Assam, Nagaland and Arunachal Pradesh, and therefore it is dependent on market outside these states. It said that ex-factory formalin price is calculated on the basis of prices being offered by competitors and thereby, it sells formalin below the cost price in the region outside Assam, Nagaland and Arunachal Pradesh on account of low prices offered by its competitors, due to which it has also incurred losses. "The Commission is of the opinion that irrespective of the fact that whether the relevant product market of supply of formalin is confined to state of Assam or whether it is extended upto the adjacent states including West Bengal, it is apparent from the submission made by OP that there are multiple players in the market," the Competition Commission of India (CCI) said. Opposite party (OP) refers to Assam Petrochemicals. It further added that the presence of multiple players indicates that buyers have the option to choose their supplies in Assam and in the adjacent states including West Bengal. Therefore, it appears that no purchaser is dependent on a single formalin supplier. "Neither OP appears to be dominant in the market for supply of formalin in the state of Assam nor does the impugned conduct appear to be abusive," CCI said. SRS RVK

CCI dismisses abuse of dominant position complaint against Assam Petrochemicals

<div class="image-container float_right"><div class="image">REUTERS/Saudi Press AgencySaudi King Abdullah (front R) talks with newly appointed Saudi Crown Prince Salman bin Abdel-Aziz in Taif, June 19, 2012.</div></div>Although plans are well advanced for constructing one of the world's biggest combined cycle petrochemicals plants in the kingdom, being built by the Sadara Chemical Company (a joint venture between the state oil company, Saudi Aramco, and Dow Chemical of the US), in reality the petrochemicals sector has mostly taken a back seat in the country's rapid industrialisation of recent years. This is primarily due to the shortage of ethane-rich associated gas and natural gas liquids (NGLs), which are both linked to crude oil production. However, this may well change if a new strategy planned by Saudi Aramco bears fruit.
In an indication of the new approach, Saudi Aramco and a joint-venture partner, France's Total, are planning to carry out a feasibility study in October to expand the 400,000 barrel/day heavy-oil refinery at Jubail in Eastern Province that was started up just last week. The expansion is strategic not just for both companies, but also for the kingdom at large, as it will serve as a litmus test for producing significantly higher volumes of naphtha either to partly offset or to replace in full the use of natural gas or natural gas liquids as feedstock for petrochemical products.
<h2>Naptha the key to new petrochemicals capacity</h2>
Undoubtedly, for the past few years the biggest stumbling block for building a downstream hydrocarbons industry has been the availability of feedstock gas. However, an expansion of the Jubail refinery could throw up options for Aramco to extract naphtha from that facility-which could in turn be supplied for new multi-feed crackers.
A multi-feed cracker is a facility that can operate using either ethane-rich gas or naphtha as feedstock. The first such facility in the Middle East is being built by the Sadara Chemical Company for its chemical plant at Jubail Industrial City. This will soon be followed a similar facility in Qatar, being built in a joint venture between Qatar <keyword id="84980" type="ORGANIZATION" weightage="60" keywordseo="petroleum">Petroleum</keyword> and Royal Dutch Shell for their olefins project at Ras Laffan.
Besides emerging as a new feedstock source, the use of naphtha will result in yet another benefit that is more commercial in nature: compared with a natural gas/NGL cracker, a naphtha cracker can produce a much greater variety of chemicals, such as ethylene, propylene, butadiene, and a full slate of aromatics such as benzene, toluene and mixed xylene.
Aramco has labelled its new programme as "downstream refinery integration", and the expectation is that after Jubail, Aramco will start similar projects for the Yanbu, Jizan and Ras Tanura refineries. Reinforcing this expectation, Aramco and the Saudi Basic Industries Corporation (SABIC) have already selected Yanbu, Ras Tanura and Jizan Economic City as the new locations where they will invest first in infrastructure to create a platform for both private Saudi and international players to invest in new facilities. The three sites are already home to crude oil refineries, providing easy access to feedstock.
<h2>Feasibility study should point the way</h2>
The Aramco-Total feasibility study should indicate the volumes of naphtha that can be "stripped out" of an expanded Jubail refinery, and, if the report is positive, Fluor of the US and Australia-based WorleyParsons have indicated that there may well be potential to build at least six new world-scale crackers, each with a capacity of some 2m tonnes/year. That figure could increase further, if Aramco's efforts to tap into the kingdom's shale gas resources are successful, and also if non-associated gas is discovered in the Red Sea and the Western region where an exploration and drilling programme is currently under way.
Aramco and Total are already in talks with the Dow Chemical Company to sell the naphtha it plans to produce from the expanded Jubail refinery, while the local Farabi Petrochemicals Company has already showed its willingness to invest at least US$10bn in several "ancillary" projects that could use naphtha to produce rubber, detergents and soaps, as well as other exotic chemicals. The enormous interest in the sector reflects optimism over likely healthy rates of return, reflecting expected high rates of demand growth for downstream products not just in Asia, but also in the Gulf Co-operation Council (GCC) region where the population is increasingly rapidly.
However, one obstacle remains to realising this potential: the need to raise the existing fixed gas price of 75 US cents/m Btu. According to Platts, naphtha prices averaged about US$621/tonne, the equivalent of about US$3.2/m Btu, in the first six months of 2013, and, as a result, if these new naptha conversion plants are to be economically viable, a gas price better reflecting the market rate will be required. However, if a higher price can be implemented, the resulting rise in petrochemicals output would help to mitigate, to a degree, the decline in demand for Saudi crude in North America, owing to rising shale oil output in North America. In addition, by moving towards a naphtha-based petrochemical industry, natural gas would be freed up for reinjection into <keyword id="50996" type="COUNTRY" weightage="60" keywordseo="Saudi-Arabia">Saudi Arabia</keyword>'s older oilfields, allowing them to maintain higher levels of output for longer.
Click <a href="http://www.store.eiu.com">here</a> to subscribe to <keyword id="425741" type="UNKNOWN" weightage="60" keywordseo="The-Economist">The Economist</keyword>

Naptha Is The Key Ingredient For A Saudi Petrochemicals Boom

State-owned <keyword id="20039950" type="General" weightage="20" keywordseo="Bharat-Petroleum-Corporation" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharat Petroleum Corporation" meta.hostid="153" meta.entityid="Bharat Petroleum Corporation">Bharat Petroleum Corporation</keyword> plans to invest Rs 1.7 lakh crore over the next five years to grow its core oil refining and fuel marketing business as well as in 'future big bets' of <keyword id="20115883" type="General" weightage="20" keywordseo="petrochemicals" source="keywords">petrochemicals</keyword> and <keyword id="19895435" type="General" weightage="20" keywordseo="green-energy" source="keywords">green energy</keyword>, its chairman G Krishnakumar has said. At present, Bharat Petroleum Corporation Ltd (<keyword id="19908646" type="General" weightage="100" keywordseo="BPCL" source="keywords" meta.keywordsubtype="org" meta.entityname="BPCL" meta.hostid="153" meta.entityid="BPCL">BPCL</keyword>) owns about 14 per cent of India's oil <keyword id="20064251" type="General" weightage="20" keywordseo="refining-capacity" source="keywords">refining capacity</keyword> and about a quarter of the fuel retailing network. It plans to grow these businesses while foraying into newer areas. The firm is now implementing the first phase of a multi-decade aspirational journey in the form of '<keyword id="22826627" type="General" weightage="20" keywordseo="project-Aspire" source="keywords">Project Aspire</keyword>' - its five-year strategic framework that is based on two fundamental pillars - 'Nurturing the Core' and 'Investing in Future Big Bets', he said in the company's latest annual report. "Our mid-term strategy is on a continuum. While we remain committed to growing our core businesses, which include refining and marketing <keyword id="20037698" type="General" weightage="20" keywordseo="petroleum-products" source="keywords">petroleum products</keyword> and upstream, we are equally focused on our big bets comprising petrochemicals, gas, green energy, non-fuel retail, and digital. "Project Aspire, with a planned capex outlay of around Rs 1.70 lakh crore over five years, will enable us to create long-term value for our stakeholders while preserving our planet for future generations," he said. "A cornerstone of our long-term strategy, Project Aspire, with a Rs 1.70 trillion investment, marks the initial phase of our multi-decade odyssey to shape the energy of tomorrow. This, coupled with our robust balance sheet, fuels our ambition to lead the <keyword id="19951336" type="General" weightage="20" keywordseo="energy-transition" source="keywords">energy transition</keyword>." The company is targeting net zero carbon emissions from its operations by 2040. "BPCL has drawn a net-zero roadmap, which encompasses renewable power, green hydrogen, compressed biogas, carbon capture, utilisation, and storage (CCUS), efficiency improvement and the offsets procurements. This would require a phased capital outlay of approximately Rs 1 lakh crore till 2040, and the company is geared for the same," he said. The firm's bet on continuing investing in core businesses is based on the premise that India's booming economy will drive a 4-5 per cent annual increase in energy demand and petroleum product consumption. Also, the demand for major petrochemical products is expected to rise by 7-8 per cent annually. "This presents a strategic opportunity to expand refining capacity alongside the development of integrated petrochemical complexes," he said. BPCL is implementing new petrochemical projects at two of its three oil refineries. A Rs 49,000 crore ethylene cracker project is being implemented at the Bina refinery in Madhya Pradesh, alongside raising oil refining capacity from the current 7.8 million tonnes to 11 million tonnes annually by 2029. A polypropylene project is being set up at Kochi refinery in Kerala by 2027. "To meet the anticipated demand beyond our planned expansions in Bina and Kochi, we are actively evaluating options for setting up additional integrated refining and petrochemical capacities within the next 5-7 years," Krishnakumar said without disclosing either the investments or the location of such a project. Andhra Pradesh is being speculated as the likely site after Prime Minister Narendra Modi's BJP and regional party TDP stormed to power in the state in recently concluded assembly elections. TDP has been demanding the implementation of a refinery-cum-petrochemical complex that was promised as part of the package when the state was split more than a decade back. "Our investment in the petrochemical project is consistent with our aspiration of becoming a dominant player in India's petrochemical growth story," Krishnakumar said. On energy transition, he said BPCL is targeting to build 2 gigawatts (GW) of <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword> capacity by 2025 and 10 GW by 2035. "We are investing nearly Rs 1,000 crore to establish two 50 MW captive wind power plants in Maharashtra and Madhya Pradesh, which will support our refineries in Mumbai and Bina." The firm is also investing around Rs 300 crore in 72 MWp of solar project in Prayagraj, Uttar Pradesh. "Concomitantly, we are executing green hydrogen projects aligned with the National Green Hydrogen Mission. These projects include a 5 MW electrolyser plant at Bina refinery and a green hydrogen refuelling station with an indigenously developed electrolyser at Kochi," he noted. BPCL, he said, is committed to supporting the transition to electric mobility through a robust and accessible charging infrastructure. The company has installed over 3,000 charging stations, including fast chargers for cars and two-wheelers. 900 fast chargers are installed across 120 highway corridors, which helps address the range, discovery and time anxiety of electric vehicle (EV) owners. "Over the next five years, we aim to install 4-wheeler fast chargers at approximately 6,000 retail outlets across 400 highway corridors, prioritising high-traffic corridors like the Golden Quadrilateral and N-S/E-W highways," he said. On biofuels, he said BPCL sells petrol with 20 per cent ethanol blend at 4,279 out of its over 22,000 petrol pumps. It is also building compressed biogas plants using municipal solid waste to make gas that can be used as CNG in automobiles. The firm is also exploring partnerships in the arena. "These combined efforts, along with the upcoming commissioning of a bio-ethanol refinery, positions BPCL as a key player in India's transition to a greener fuel mix, creating a robust ecosystem for the adoption of cleaner fuels across the country," he added. BPCL is establishing a corporate venture capital fund to invest directly in promising startups. "In order to thrive in this complex and challenging business landscape, we will leverage our agility and focus on operational excellence to ensure continued success. Safety and reliability will remain our top priorities, guiding all our actions. We are committed to upholding the highest standards of corporate governance," he added. He said the energy sector of India stands at an inflection point. "The nation has an ambitious vision of becoming a USD 30 trillion developed economy by 2047. 'Viksit Bharat @2047' will necessitate an almost fourfold increase in primary energy demand." India's exponential growth trajectory will propel it to a pivotal role in the global energy market, accounting for roughly 12 per cent of world energy consumption by 2047. "The key strategic objectives for India in the energy sector will entail significant expansion in refining capacities, raising the share of gas in the energy basket from about 6 per cent to 15 per cent, establishing leadership in petrochemical exports, and sharply reducing energy imports from current levels of 47 per cent to below 25 per cent by 2030 and to zero by 2047," he said. India is targeting 500 GW of non-fossil fuel energy capacity, sourcing half of its energy needs from renewables, reducing carbon emissions by 1 billion tonnes and lowering carbon intensity by 45 per cent by 2030 with the ultimate goal of net-zero emissions by 2070. "Building on its strong Indian energy presence, BPCL aspires to meet 7-10 per cent of the nation's primary energy demand by 2047," he said.

BPCL planning Rs 1.7 lakh crore spend to expand core business, new energy foray over next five years

<ul><li>Refining margins have been muted last few months due to the fall in demand for oil products.</li><li>Oil product demand growth stalled to nearly zero and there is oversupply of gasoline and naphtha, Morgan Stanley said.</li><li>Petrochemicals are the biggest contributor to Reliance Industries' turnover and profits.</li><li>However, the increasing traction for its telecom vertical Jio as well as the retail business may provide some relief.</li></ul> Refining margins have been muted last few months due to the fall in demand for oil products. And that is bad news for Reliance Industries, which will announce its quarterly earnings on Friday, where petrochemicals is the biggest contributor to the company's revenue and profit. However, the increasing traction for its telecom vertical Jio as well as the retail business may provide some relief to Chairman Mukesh Ambani, who has often said in the recent past that "data is the new oil". Oil product demand growth stalled to nearly zero and there is oversupply of gasoline and naphtha, Morgan Stanley said in a report on July 10. According to research firm CGSCIMB, margins from petrochemicals have dropped sharply since April 2019 and the decline has been sharpest in paraxylene, which has flowed through across the polyester chain. That would mean the decline in profit would be pronounced in Reliance mainstay business, the report added. However, Jio and Reliance Retail may come to the rescue, at least partially. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The fear of slump in one of the important business segment has weighed on Reliance's share price in recent months. Even on Thursday (July 18), a day before the company declares the quarterly earnings, the stock of Reliance Industries fell over a percent, that's a loss of over a billion dollars in investor wealth. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 While Jio may be the rising star in Reliance Industries portfolio spanning from oil and gas exploration to petrochemicals to retail, the telecom venture brings its share of anxiety to the investor's mind-- debt. The company's total debt has increased over 58% in the last two years largely due to the investments made in Jio as well as the cash burnt in winning over the millions of customers. "RIL reported that its consolidated effective net debt reduced by ₹990 billion at end-FY19 due to a demerger of its telecom assets to an special purpose vehicle (SPV). However, the expected financing of the SPV by an Infrastructure Investment Trust (InvIT), which would bring in new investors, is yet to materialise," the CGS CIMB report said. 
 
 
 
 
 
 
 
 
 
 
 
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 SEE ALSO: <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-may-go-public-next-year-as-debt-for-discounts-starts-to-bite-and-5g-era-beckons/articleshow/69885410.cms">Mukesh Ambani’s Reliance Jio may go public next year as debt for discounts starts to bite and 5G era beckons</a> <a href="https://www.businessinsider.in/mukesh-ambani-and-anil-ambani-may-restart-reliance-communications-deal-talks/articleshow/70253856.cms" data-type="tilCustomLink" target="_blank">Mukesh Ambani may now have a reason to buy Anil Ambani's bankrupt RCom, say reports</a> <a href="https://www.businessinsider.in/anil-ambani-goes-from-yacht-to-almost-jail-to-bankruptcy/articleshow/69835915.cms">Anil Ambani may not be a billionaire anymore — here's how he lost it all in just a decade</a>

Mukesh Ambani's Reliance Industries may get some comfort from Jio and Reliance Retail as profits from petrochemicals may slip

<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Danish Siddiqui</div></div></div><ul><li>Oil giants are investing in plastics and chemicals as fossil-fuel demand weakens.</li><li>However, the petrochemical industry is under pressure as plastic recycling increases and governments ban plastic products such as single-use cups and straws.</li><li>Oil groups could face challenges in both markets as a result.</li><li><a href="https://markets.businessinsider.com/">View Markets Insider's homepage for more stories</a>.</li></ul>The world's largest oil companies are planning to offset slowing demand for fossil fuels by tapping into the plastics and chemicals markets. Growth in plastic recycling and government bans on plastic products threaten to temper petrochemical sales and scuttle that strategy.<a href="https://www.businessinsider.com/has-us-gasoline-demand-peaked-2017-1?r=US&amp;IR=T">Gasoline sales have suffered</a> from accelerating adoption of electric vehicles and rising fuel efficiency in conventional cars. Meanwhile, the petrochemical industry is set to account for a third of the growth in world oil demand to 2030 and nearly half the growth to 2050, <a href="https://www.iea.org/newsroom/news/2018/october/petrochemicals-set-to-be-the-largest-driver-of-world-oil-demand-latest-iea-analy.html">according to the International Energy Agency</a>. As a result, oil giants including Saudi Aramco, BP, Exxon Mobil, and Royal Dutch Shell have snapped up plastic and chemicals assets, <a href="https://www.bloomberg.com/news/articles/2019-06-05/plastic-trash-crackdown-threatens-oil-giants-chemical-lifeline">according to Bloomberg</a>.However, the boom in petrochemical sales might not materialize if there's a fiercer crackdown on plastic waste. Greater recycling of plastics, along with more government bans on plastic products such as single-use cups and straws, could reduce growth in petrochemical demand by a third to 1.5% a year, consulting firm Accenture said, according to Bloomberg.If that happens, oil companies might find themselves in trouble on two fronts. They could face flagging fuel sales as electric and fuel-efficient vehicles take to the streets and governments crack down on pollution and fossil-fuel emissions, as well as tepid demand for plastic and chemicals as petrochemical groups feel pressure from consumers and authorities to clean up their act.<h2>Snapping up assets</h2>Saudi Aramco, the world's largest oil company, struck a $69 billion deal to acquire Saudi Arabian chemical producer Sabic in March, and has invested billions to boost its chemical production around the world, <a href="https://www.reuters.com/article/us-aramco-sabic-m-a/saudi-aramco-to-buy-sabic-in-69-billion-chemicals-megadeal-idUSKCN1R81QU">according to Reuters</a>. It has also partnered with subsidiaries of Chevron and McDermott to create a refinery where 70% to 80% of the output is chemicals, while already building a domestic facility where that proportion is 40%, according to Bloomberg. Saudi Aramco has also added the former CEOs of Dow Chemical and Chevron Phillips Chemical to its board.Similarly, Exxon Mobil intends to expand its chemical-making capacity by 40% in Asia and North America, while China is set to invest $100 billion in facilities that turn crude oil into chemicals over the next five years, Bloomberg said.Get the latest Oil WTI price<a href="http://markets.businessinsider.com/commodities/oil-price?type=WTI"> here.</a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/why-k2-harder-climb-mt-everest-2017-9">Mount Everest is not the hardest mountain to climb - here's what makes K2 so much worse</a></h3> <div> </div> </div>

You Searched For "petrochemicals" and got 9 results

Indian Oil to invest ₹61,077 crore in a petchem complex at Paradip in Odisha

PTI

Gulf Petrochem investing Rs 1,000-crore to set up ethanol plant in India

BI India Bureau

No plan to curb import of chemicals and petrochemicals: Govt

PTI

Indian Oil to invest Rs 1.75 trillion over 7 years

BI India Bureau

CCI dismisses abuse of dominant position complaint against Assam Petrochemicals

PTI

Naptha Is The Key Ingredient For A Saudi Petrochemicals Boom

The Economist

BPCL planning Rs 1.7 lakh crore spend to expand core business, new energy foray over next five years

PTI

Mukesh Ambani's Reliance Industries may get some comfort from Jio and Reliance Retail as profits from petrochemicals may slip

Sriram Iyer

Oil giants are pivoting to plastic, which could backfire amid a growing crackdown

Theron Mohamed

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