Oil Ministry is believed to have turned down Reliance Petroleum's (RPL) request to export LPG from its newly commissioned refinery at Jamnagar in Gujarat, forcing the only-for-exports unit to sell the cooking fuel locally.
RPL, a unit of Mukesh Ambani-run Reliance Industries, had sought nod to export the entire liquefied petroleum gas (LPG) production till the 580,000-barrels per day refinery in the Jamnagar Special Economic Zone is fully commissioned.
"Petroleum Ministry wrote to RPL saying its request cannot be entertained as the country continues to have LPG deficit," a senior official said.
RPL had sought permission to export 30,000 tons a month of LPG from the new unit till March. Further, an additional 5,000 tons a day of LPG was sought to be exported from April till all major units are commissioned.
RPL, in which the US energy major Chevron Corp has 5 per cent stake, yesterday started the new unit adjacent to parent firm's existing 660,000 bpd refinery at Jamnagar.
The 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.
The $6 billion new unit is one of the most complex refineries in the world, capable of processing the most difficult crude oils. It, together with parent firm's existing refinery, has made Jamnagar the world's largest refining complex with an aggregate processing capacity of 1.24 million barrels of oil per day.
