i Develop Stocks Advisory

India to become a global petro products hub “We import oil at galloping prices, generate employment and foreign exchange for the country and create shareholder value by efficiency and dedication of the people” – words of Mukesh Ambani, Chairman of Reliance Petroleum Ltd, soon to become the sixth largest refinery in the world. Even with low reserves of crude oil, India is all set to become a global petroleum products hub, Mukesh Ambani said in his speech at the Annual General Meeting the other day. With the completion of the green field refinery in Jamnagar, the total capacity of RPL will rise to 1.24 mn barrels per day making it the largest and most complex in the world. It will be the most complex refinery in the world with a Nelson Complexity Index of 14. The supply from the new RPL refinery will represent 50 percent of the estimated global oil demand growth in 2009. The global production capacity of gasoline and diesel will rise by one percent with the setting up of the new facilty, Mr Ambani said. He said that global demand for petroleum products will grow despite high oil prices. RPL will export its products to USA, Europe and Asia with 50-60 percent of incremental demand coming from Middle-East and Asia. Ambani said that long-term outlook for refining margins look positive. “Without significant crude production, India has become a refining major,” he commented.