NEW DELHI BP (BP.L) and Reliance Industries (RELI.NS) said on Thursday they would invest $6 billion to boost India's gas output from an east coast block and expanded their tie-up to feed the South Asian nation's rising fuel and renewable energy demand. <\/p>\n
India is replacing China as the driver of fuel demand growth globally. The International Energy Agency expects India to account for a quarter of global energy use by 2040. <\/p>\n
BP wants to sell fuels in India in a tie up with Reliance, which operates the world's biggest refining complex and is chaired by billionaire Mukesh Ambani. <\/p>\n
\"We will not do it (setting up fuel stations) alone. It will be in tie-up with Reliance. Maybe we will expand this to jet fuel also,\" BP's Chairman Bob Dudley told Reuters on the sidelines of an event to announce the investment plan and partnership. <\/p>\n
BP has a license to sell jet fuel and build 3,500 fuel stations in India. India's pricing formula gives higher profits to retailers with refining plants or domestic supply sources. <\/p>\n
Ambani said the partnership would also look at opportunities in trading that could include products such as oil, gas, fuels, liquefied natural gas (LNG), power, and carbon. <\/p>\n
Dudley, who wants BP to catch up with production volumes of its biggest rivals Exxon Mobil (XOM.N) and Royal Dutch Shell (RDSa.L), is banking on Indian policy moves and a favorable investment climate to unlock the resources. <\/p>\n
After eight years, Reliance and BP have decided to invest in the D6 block on the east coast to raise gas output by 30-35 million cubic meters a day between 2020 and 2022. This will help in India's gradual migration to a gas-based economy. <\/p>\n
\"This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep-water gas resources offshore India efficiently and economically,\" Dudley said. <\/p>\n
BP in 2011 made a foray into India's exploration sector when it signed a $7.2 billion deal to buy a 30 percent stake in some oil and gas blocks operated by Reliance. It also formed gas sourcing and marketing tie-ups with the Indian conglomerate. <\/p>\n
The gas joint venture is marketing some of the LNG sourced from BP's portfolio. <\/p>\n
\"I think that's what we are going to revive and reinvigorate,\" Dudley said, when asked if BP planned a long-term LNG supply deal with the Indian joint venture. <\/p>\n
Dudley said the two companies were \"not putting boundaries\" on the expansion of the partnership, which will cover all forms of fuel marketing, retail distribution, and a combination of gas and renewables. <\/p>\n
($1 = 64.5950 Indian rupees) <\/p>\n
(Editing by Mark Potter) <\/p>\n
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BP, Reliance to invest in Indian gas block, cooperate downstream - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" NEW DELHI BP (BP.L) and Reliance Industries (RELI.NS) said on Thursday they would invest $6 billion to boost India's gas output from an east coast block and expanded their tie-up to feed the South Asian nation's rising fuel and renewable energy demand. Continue reading