The largest refining complex in the world gets a boost! Amid the Ukraine crisis, Mukesh Ambani’s Reliance is stepping in to provide Europe with diesel

The worldwide energy shortage caused by Russia’s invasion of Ukraine is providing a much-needed boost to the world’s largest refining complex. According to persons with firsthand knowledge of the situation, Reliance Industries Ltd.’s Jamnagar refinery is halting crude processing and delayed planned maintenance to take advantage of rising diesel demand. It is already shipping the gasoline to Europe, and this will rise in the coming months, according to the persons who asked not to be identified since the information isn’t publicly available. The Gujarat complex, located on India’s west coast, can process 1.36 million barrels of oil per day from two refineries and export the manhood of the fuel. The 704,000 barrels per day export-focused factory, owned by billionaire Mukesh Ambani, has been idle since the epidemic struck, with just approximately three-quarters of its capacity being utilized in January. “In terms of crude feedstock ratio and yield changes, Reliance has a lot of flexibility, and it exports 80% of its output,” Senthil Kumaran, head of South Asia oil at industry consultancy FGE, said. “In times with high margins, this provides the most advantage.” In Mumbai, Reliance’s stock climbed as high as 4.3 percent. The company’s representative did not immediately respond to an email requesting a comment. As the price of diesel in Europe rises as a result of Russia’s invasion of Ukraine, some Asian refiners are eager to export it. Prices have soared to as much as $139 per tonne above those in Asia, up from less than $10 for much of last year. Some processors, such as Reliance, are well-positioned to profit from the so-called arbitrage trade, while others are struggling to keep up with rising oil prices and are considering cutting back on production. According to the sources, Reliance had intended to close one of the crude processing plants in Jamnagar for around three weeks starting this month, but that has now been pushed back to September. According to data from India’s oil ministry, the export-focused facility barely utilized 74.7 percent of its capacity in January. Nayara Energy Ltd., which is 49 percent controlled by Russia’s Rosneft Oil Co. PJSC, also has a refinery in the Jamnagar area and exports petroleum but is considerably smaller quantities than Reliance. Indian Oil Corp. and other large state-owned processors are more focused on the local market. India has remained silent on the invasion of Ukraine and has voted against denouncing Vladimir Putin’s aggression at the United Nations. It has refused to participate in any sanctions against Russia and has urged Russia and Ukraine to hold talks to resolve the crisis. Even after its operator, Exxon Mobil Corp. began taking steps to wind down operations before eventually exiting its stake in the project, state-owned upstream explorer ONGC Videsh Ltd. said earlier this month that it didn’t see any difficulties in selling crude produced in Russia’s Sakhalin-I project.

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