New Delhi: US secretary of state Marco Rubio visited Reliance Industries refinery in Jamnagar, the world’s largest, and discussed with chairman Mukesh Ambani a gamut of issues related to energy and technology that could become the springboard for wider energy cooperation between the two countries.
Rubio met with RIL executive director Anant Ambani, who outlined the vision for Jamnagar as a hub for technological advancements and high-tech manufacturing, the company said in a statement.
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Rubio Also Met Adani, Chandra
“The visit included wide-ranging discussions on the global energy landscape and opportunities for commercial partnerships across conventional and new energy,’’ the RIL statement said. “The exchange covered reliable and affordable energy supplies, technological advances, resilient supply chains and the investment required to meet growing demand.’’
Rubio also met Adani Group chairman Gautam Adani and Tata Sons chairman N Chandrasekaran in Mumbai on Wednesday, before heading to Gujarat. The secretary of state’s visit comes weeks ahead of the US midterm elections, with the Trump administration under pressure from soaring fuel prices.
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“Over the past year, India’s imports of US LPG have surged from under 10% to 67%, making the United States India’s largest LPG supplier. Reliance’s planned investment in the first new US oil refinery in 50 years is another major opportunity to expand American energy production and create jobs,” US ambassador to India Sergio Gor said in a social media post following Rubio’s visit to the Jamnagar refinery. “Mukesh Ambani and Anant Ambani shared their perspectives on opportunities for collaboration with US companies, drawing on complementary strengths in technology, engineering and advanced manufacturing,” RIL said.
In March, US President Donald Trump had announced that RIL planned to invest in a greenfield refinery in the US. The Mukesh Ambani-owned company has yet to confirm the plan.
Adani Group and Tata Group did not disclose details of their meetings with Rubio. Ahead of his India visit, the secretary of state had said he would discuss Venezuelan heavy crude with RIL, whose advanced refinery can process the grade. The US has effectively taken control of Venezuelan oil exports since the capture of President Nicolás Maduro in January. RIL has been a major buyer of Venezuelan crude since then, even though rising prices in recent months have made the oil less attractive to other Indian refiners. China was previously the largest buyer of Venezuelan oil, which sold at a steep discount under stringent US sanctions before Washington triggered a change of regime in Caracas.
Crude oil prices, currently around $110 per barrel, have pushed US fuel prices higher. Disruptions to energy supplies from the Gulf and attacks on Russian refineries and export facilities have tightened markets, driving up crude and fuel prices.
The Trump administration wants the US to dominate the global energy sector and is seeking investment from around the world to boost economic activity and create jobs. The US has refining capacity of about 18.5 million barrels per day, marginally below that of China, the world’s largest refining hub. India ranks fourth, with capacity of 5.35 million barrels per day.
Refining capacity in Western economies has gradually shrunk over the decades amid environmental concerns and pressure to curb emissions. RIL’s proposed US refinery is expected to cater to global markets rather than just domestic demand, while processing mainly shale oil available locally.