India Refinery Project
Three of India’s leading government-owned public sector undertakings in the oil and gas sector came together in a joint venture partnership called Ratnagiri Refinery & Petrochemicals Limited (RRPCL) to develop the West Coast Refinery Project (WCRP) In 2019, Saudi Aramco and Abu Dhabi National Oil companies joined the venture to collectively own 50% stake in the project, which is expected to bring $35 billion of foreign direct investment to India.
Initially planned to be commissioned by 2022 in the Ratanagiri district of the state of Maharashtra the $44 billion project was delayed due to political interference with land acquisition which resulted in a change in location to a new site near Mumbai, for which the approvals process is currently underway. The commission deadline was extended to 2025, and the estimated project cost increased to $70 billion. Despite these temporary set-backs, and the current COVID-19 situation, development of the West Coast Refinery Project (WCRP) is still a national priority as the commissioned plant will be expected to contribute up to 2% of India’s gross domestic product (GDP) and 10% of the state of Maharashtra’s GDP. It will create 150,000 jobs in the construction phase and 20,000 jobs in the operational phase. The WCRP is a considered to be a major step forward for India’s economic and energy security, providing access to efficient and sustainable fuels and value-added products.
The WCRP will require a land bank of 15,000 acres which will be developed into a massive refinery-petrochemical complex, featuring three refining units with a capacity of 20 Mt each that together will process 1.2 million barrels of crude oil per day. The complex will also include: marine storage and port facilities, three single point moorings, pipeline end manifold, four 48-inch submarine pipelines, small jetties, anchorage areas, crude oil terminal, crude oil storage and blending plant, desalination plant, on-site utilities and other facilities.
The pre-feasibility study of the project has been completed by Engineers India Limited and Jacobs Engineering. Currently, the configuration study is underway which will determine the initial cost of the project. Upon its completion and approval from the Board of Directors, the project will move to the Front End Engineering Design (FEED) stage. Post the FEED tenders will be announced for licensing technology. According to the officials at RRPCL, the WCRP schedule is running late by approximately two months due to COVID-related delays. RRPCL expects the project to gain traction once the organization becomes fully operational after India’s national lockdown is lifted.
WCRP poses significant opportunities for U.S. energy companies including consultants (specialising in refinery designing, technology, IT), licensors of refinery and petrochemical technology, and manufacturers of process automation, equipment, chemicals, and catalysts.
According to sources at RRPCL, the WCRP developers are especially interested in working with foreign suppliers of niche petrochemical technology that will enhance the complex’s capabilities for producing value-added petrochemical products, increasing the project’s profitability while helping to reduce India’s overall dependence on imports of these products.
All RRPCL tenders pertaining to the WCRP can be tracked at the following weblink: www.rrpcl.com/tender_page
U.S. Commercial Service office in India is closely tracking the development of the West Coast Refinery Project, and monitoring any commercial opportunities announced by the RRPCL. Our team is also tracking the new procurement policy, recently announced by India’s Ministry of Finance, promoting the “Make in India” initiative which may impact smaller procurements under the Rs. 200 crore (currently $26 million) threshold.
International competition is expected to be strong for RRPCL tenders, given the size and scope of the project, and U.S. companies should consider applying for U.S. Government advocacy to support them throughout the bidding process.
U.S. companies interested in exploring these and other opportunities in the refining/petrochemical sector may contact Commercial Specialists Renie Subin (renie.subin@trade.gov) in New Delhi, and Sanjay Arya (sanjay.arya@tarde.gov) in Mumbai, for further discussion.