RIL eyes refinery in S. America
A Business Correspondent
Reliance Industries Ltd is headed for the Latin American
country Guatemala for setting up a 3.6 lakh bpd green field refinery. The
Gautemala government has selected RIL for the proposed $ 7.73 billion refinery
project which includes an initial investment of $ 6.73 billion and a 1,000 mw
power plant costing $1 billion, being a part of the project. The formal bidding
for the refinery will start in September 2007.
RIL seeks guarantee from Gautemala government and foreign investors and also the
local government. One major benefit for RIL through the project is the 1,000 mw
power plant as Latin America is the biggest market of power. Big players like
Chevron and Dow may enter for partnership for the proposed refinery.
The proposed refinery project is a project under Cancun Declaration and is part
of the Mesoamerican Energy Integration Programme (MEIP).
Guatemala, South of Mexico, has 75 per cent of the total consumption in
Mesoamerica. Besides, proximity with Mexico and Belize reduces the costs of
transportation, and the oil pipeline between Mexico and Guatemala can be even
extended to EI Salvador.
[02 April 2007]