India Reliance targets Europe diesel exports

Indian oil company Reliance Industries (RELI.BO: Quote, Profile, Research) is planning to export low sulphur diesel to Europe once its new refinery at Jamnagar comes on stream later this year, P. Raghavendran, the company's refining business manager, said on Tuesday.
Reliance sees an opportunity to export cleaner diesel to Europe as refineries in the former Soviet Union and in eastern Europe will not be able to meet the European Union's tougher fuel standards reducing sulphur levels to 10 parts per million which come into force in 2009, he told a conference.
"A lot of molecules from the FSU and eastern Europe can't meet (the new EU standards)," Raghavendran said.
"This will provide a window of opportunity for the next 3-4 years for refiners from Asia and the Middle East."
Reliance's new 580,000 barrel a day refinery at Jamnagar is designed to produce low sulphur fuels for export. It is slated to start up in December but company officials have said it could start three to four months earlier.
High shipping costs could prove an obstacle to exports but to overcome this Reliance is looking to ship diesel west in large volumes.
Europe relies on imports to meet its growing demand for diesel. Figures presented to the conference showed a diesel shortfall in northwest Europe and the Mediterranean of 25 million tonnes this year, rising to 36 million tonnes by 2012.