Coal news and updates

RIL to buy imported coal, pet coke post-gasification unit launch

August 14: Reliance Industries Limited (RIL), India’s largest crude oil refiner and pet coke producer, is set to start procuring imported steam coal as well as pet coke after its ambitious pet coke gasification project is up and running, a senior official of the company said.

The pet coke gasification project is expected to put RIL’s energy and hydrogen costs at par or better than that of the refineries in the US where natural gas prices have fallen dramatically due to the shale gas revolution, the official said.

The gasification project is designed to run on both coal and pet coke, giving RIL the flexibility to optimise based on relative economics, according to the official.

“RIL is looking for various sourcing options for pet coke from the refiners in India, Middle East and North America. The company is also evaluating coal import options from key coal exporting countries such as Australia, Indonesia and South Africa,” the official added.

The company’s petcoke gasification project is based on the “E-gas technology” (owned by CB&I) and is currently in the execution stage.

Engineering and procurement activities are nearing completion and construction activities are progressing rapidly as delivery of key units has started at the site, the official said.

Construction of the pet coke storage dome in the gasification complex is in the final stages of completion and the company is aiming for a phased start-up of the gasifiers while manpower resources and construction plans are aligned to execute the project on schedule.

The gasification assets, delivered with RIL’s project execution capabilities, are expected to enhance its refining profitability significantly. The company had tied up facilities of around $3.15 billion to part finance the petrochemical expansions and petcoke gasification projects.