Reliance Industries (RIL) will transfer its Jamnagar syngas project to a subsidiary it owns fully, said the company on Wednesday, referring to mixture of gases used for energy production.
The transfer will help “unlock the value of syngas” and will help the company’s transition to renewables as its primary source of energy, said the company in a press release.
Syngas is a combination of hydrogen, carbon monoxide and some carbon dioxide that is typically manufactured by gasifying a solid hydrocarbon fuel.
Syngas ensures reliability in fuel supply and helps reduce volatility in the energy costs. The mixture is used to produce hydrogen in the Jamnagar refinery, said Reliance.
Reliance, in October, posted a 43 per cent surge in second-quarter profit that exceeded market expectations, as rising demand and higher average selling price for oil products boosted its mainstay oil-to-chemicals business.
Revenue from the oil-to-chemicals unit, home to both its refining and petrochemicals operations, rose 58.1 per cent, also benefiting from higher transportation fuel margin.
(With inputs from Reuters)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.