Italian agency to fund RIL petrochemical plants expansion

SACE, an Italian export-credit agency, has approved a $400m equivalent loan to Reliance Industries (RIL) to expand and upgrade the production capacity of its petrochemical plants, a gasification plant and refinery off-gas cracker in India.

The expansion forms part of RIL's $11bn Jamnagar phase-three expansion project, known as the J-3 mega petrochemicals project, which aims to double RIL's petrochemicals production.

SACE's guarantee will support the contracts for the supply of goods and services to Italian companies.

SACE said the loan is the fourth transaction concluded with Reliance since 2004, bringing SACE's overall credit facilities to $1bn for the Indian group.

SACE CEO Alessandro Castellano told The Economic Times: "SACE's guarantee is both a relevant growth catalyst and an important leverage for the competitiveness of Italian exporters, along with quality and price of products."

RIL is involved in the exploration and production of the textiles, polyester, fibre intermediates, plastics, petrochemicals (polyester, fibre intermediates, plastics and chemicals), petroleum refining, oil and gas, retail, infotel and special economic zones businesses.

The company operates two refineries in the western state of Gujarat with a combined nameplate capacity of 1.24 million barrels a day.

RIL also has petrochemical plants at Hazira, Vadodara, Gandhar in Gujarat and Nagothane in Maharashtra, which produce ethylene oxide, di-ethylene glycol, tri-ethylene glycol, linear alkyl benzene (LAB), benzene, butadiene, polybutadiene rubber (PBR), caustic soda (CS) and acrylonitrile.

RIL also produces basic aromatic building blocks, including toluene, mixed-xylene and ortho-xylene.