U.S. Companies to Ship 1.6 million tons of Ethane to India

Planning to replace natural gas and naphtha at its petrochemical plants, Mumbai-based Reliance Industries Limited will procure 1.6 million tons of ethane from three companies in the U.S.

Reliance Industries has three joint ventures in America: one with California headquartered Chevron Corp, in which it has invested $1.7 billion; the second with Houston-based Carrizo Oil & Gas Inc, in which it has invested $392 million; and a third with Dallas-based Pioneer Natural Resources Co., in which it has invested $1.5 billion.

Ethane is expected to be produced in large volumes in North America due to the shale gas revolution, which has generated an abundance of liquefied natural gas, and liquefied petroleum gas, reports the Times of India. Amit Mehta, head of Reliance’s gas business, said that the company has contracted ethane supplies for more than 20 years from America.

Reliance Industries will get its requirement from Marcellus Shale a Middle Devonian age unit of marine sedimentary rock in the Appalachian Basin of eastern North America, and from Texas’ Eagle Ford Group a sedimentary rock formation deposited during the Cenomanian and Turonian ages of the Late Cretaceous period.

Reliance Industries

Reliance Industries

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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