India: Reliance Industries to profit from IMO 2020
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by Admin
Indian refiner Reliance Industries Ltd believes it will stand to profit from the upcoming 0.5% sulphur cap for marine fuel effective 2020.
“As a result of our robust and flexible configuration, we are also uniquely positioned to take advantage of emerging opportunities in view of IMO 2020,” Mukesh Ambani, chairman and managing director of RIL, said at the firm’s 41st annual general meeting, as quoted by LiveMint.
A Macquarie Research report Monday estimated RIL’s gross refining margin (GRM) to hit $20 a barrel by the financial year 2020-21 against the estimated $12 as RIL stands to gain from expansion in middle distillate cracks.
“RIL is a prime beneficiary of IMO 2020 regulations. Unsurprisingly, on an absolute basis, RIL ranks at the top with refining margins expanding to $20 per barrel in FY3 from $12 today,” it says.
Other Indian refiners, Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have also started production of low-sulphur fuel and will equally benefit from IMO 2020, it notes.
Published: 13 July, 2018
