Reliance Petroleum (RPL) of India is to build a US$6bn oil refinery and petrochemical complex in Jamnagar Gujarat, using US equipment, technology and services financed by a US$500mn loan guarantee from US Ex-Im Bank.


RPL’s primary shareholder, Reliance Industries (RIL), is the largest private company in India. The new refinery will be the world’s sixth largest and will be located adjacent to RIL’s existing refinery and petrochemical complex in Jamnagar. Together the two refineries will comprise the largest refining complex in the world.


Bechtel Corp is providing design, procurement, project management and other services. Major US exporters also participating in the project include: Black & Veatch International; Dow Global Technologies; Foster Wheeler; and UOP.


Citibank is the guaranteed lender on the transaction.


Once completed in December, 2008, the refinery will be among the most modern and complex in the world, capable of producing high quality fuels such as gasoline, jet fuel diesel, alkylates, naphtha, kerosene, as well as polypropylene. The refinery’s Nelson Complexity Index is 14, compared to the average index of 10 in the US. This is a measure of the refinery’s technological processing capabilities.


Ex-Im Bank’s exposure to India, including the current project, is about US$3.1bn, with US$1.17bn in additional pending final commitments.