Saudis to invest in Padur oil tank-farm
India is upgrading its energy relationship with Saudi Arabia to a strategic relationship as well as signing a broader Strategic Partnership Council Agreement during Prime Minister Narendra Modi’s visit to Riyadh beginning 29 Oct 2019.
The upgraded relationship includes Saudi commitment to invest US$100 billion in India including a tank-farm for storing reserve crude oil, a refinery on the west coast and investment in retail sector in petroleum.
Saudi Arabia supplies about 18% of India’s crude oil imports a year.
Economic Relations Secretary T S Tirumurti told reporters, “We have discussed maritime and energy security cooperation and to transform energy relationship into a strategic partnership and move ahead from the existing buyer-seller relations.”
Saudi Arabia is to invest in 2.5 million tonne oil storage facility at Padur in Karnataka, in addition to the 5 million tonne capacity on the west coast.
A refinery on India’s west coast is under study and would be taken forward with Saudi investment, said Tirumurti.
Saudi Aramco, along with UAE’s ADNOC, is in the development of US$44 billion ‘West Coast Refinery & Petrochemicals Project Limited’ in Raigad, Maharashtra.
With these commitments, Saudi investments in India is growing.
Saudi Petrochemical Giant SABIC has a R&D Centre in Bangalore with an investment of over US$100 million since November 2013.
Aramco has signed a MoU with the Mumbai-based GumPro for a drilling fluids facility since 2018.
Aramco is also considering acquisition of over 20% share, estimated between US$10-$15 billion, in RIL Oil and Chemical business at an enterprise value of US$75 billion.
Elsewhere in India, Riyadh-headquartered Al-Fanar is currently executing a 300 MW power project in Kutcch. fiinews.com
