RPL denied permission to export LPG

RPL denied permission to export LPG


New Delhi: The government has declined Reliance Petroleum permission to export LPG from its under- construction only-for-exports refinery at Jamnagar in Gujarat, as the nation continues to face deficit in cooking gas production.

RPL, a unit of Reliance Industries, had sought nod to export the entire liquefied petroleum gas (LPG) production in the six months to fully commissioning its 580,000-barrels per day refinery in the Jamnagar Special Economic Zone.

“Petroleum Ministry, in a letter dated 11 November, 2008, declined RPL’s request citing prevailing LPG deficit in the country," a government source said.

RPL, in which US energy major Chevron Corp has 5% stake, is likely to start producing fuel from the unit being set up adjacent to parent firm’s existing 660,000 bpd refinery at Jamnagar in the next few weeks.

The source said RPL had sought permission to export 30,000 tons a month of LPG from the new unit for first 3-4 months from start. Further, an additional 5,000 tons a day of LPG was sought to be exported after four months from start till all major units are commissioned -- which may take a period of over 3 months.

Petroleum Ministry, he said, wants RPL to sell the fuel to state-run retailers to meet domestic demand. Reliance Industries’ existing unit, which was converted into an only- for-export unit last year, too is not allowed to export LPG. All other products from the refinery as well as the new unit can be shipped to markets overseas.