RIL talking to Essar to buy fuel for retail outlets

Reliance Industries Ltd. (RIL), which recently announced it will reopen its retail outlets in India, said it plans to source petroleum products from Vadinar, Gujarat-based Essar Oil. RIL’s refineries at Jamnagar in Gujarat are export-oriented and hence cannot supply products for local sale. Meanwhile, Essar said that while it has deferred expansion of its Vadinar refinery to 2010, it will add the new unit at US$400 million less than its earlier estimates. With the expansion, the refinery will have a capacity of 13 million tons per year, up from its 12.5 million tons. The upgrade will equip the refinery with high conversion coking and FCC facilities, as well as a clean fuel facility. (March 16/20, 2009)