The Italian export credit agency Sace has committed a guaranteed financing of US$275mn to Reliance Petroleum for the construction of the Jamnagar refinery in Gujaret in India.
The project is set to construct the sixth largest refinery in the world with a capacity of 580,000 barrels per day. It is being built next to a refinery already in operation, and once completed both refineries will constitute the largest refining complex in the world.
The financing is supporting the activities of around 40, mostly small and medium-sized, Italian companies working on the project.
It is already under construction and should be completed by 2008. Most of the production is to be exported to European and North American markets. Canada’s export credit agency EDC and US Ex-Im have both already provided guaranteed financing packages for the project.
Leading shareholder of Reliance Petroleum is Reliance Industries, a major industrial group that accounts for 12% of India’s total exports. India is a growing market for both Sace and Italian exporters, with the ECA reporting that Italian exports to India have seen 37% growth year-on-year.