Reliance Industries, the largest Indian private company, is in talks with Brazilian energy giant Petroleo Brasileiro (Petrobras) to set up two petrochemical joint ventures, sources close to the development said. Both greenfield projects will require a total investment of around $6 billion (nearly Rs 25,800 crore).
The companies have discussed possible petrochemicals ventures in the north-eastern Brazilian state of Pernambuco and in the south-eastern state of Rio de Janeiro, Paulo Roberto Costa, refining and supply director for Petrobras said in a company WebCast.
"Talks regarding the Rio de Janeiro Petrochemicals Complex are preliminary," said the director and added the Pernambuco talks are in a more advanced stage. He did not disclose the size and nature of investment.
"The possibility is for 50-50 joint ventures,'' RIL sources said. The Indian refiner plans to set up two joint ventures
Petrobras was interested in RIL's experience in the petrochemicals segment in India, reports in Brazilian newspapers said. Petrochemicals, which encompass wide range of polymers, synthetic rubbers and chemicals, have been the second growth platform for RIL.
RIL is setting up two million tonne of gas cracker with matching downstream capacities at its Jamnagar complex. Moreover, it is building 9,00,000 tonne per annum polypropylene capacity at the same site which will be completed this year.
This would make RIL the third largest polypropylene producer in the world. The petrochemicals complex in Jamnagar will entail an investment of $7 billion (nealry Rs 30,100 crore). It would be a part of RIL's Jamnagar SEZ and will get feedstock from the refinery of the company.