Rubio Tours the World's Largest Refinery at Jamnagar as Washington Eyes Reliance for Venezuelan Crude
US Secretary of State Marco Rubio is visiting India with two goals in view: cushioning the fallout of the Iran war and keeping fuel prices under control ahead of the United States' midterm elections. As part of the trip, Rubio arrived on Wednesday in Jamnagar, in the western Indian state of Gujarat, and toured the world's largest oil refinery there.
Indian media reported that Rubio changed his schedule and would stay overnight in Jamnagar. The vast refinery complex belongs to Reliance Industries, the Indian multinational. Alongside the tour, Rubio was set to meet Reliance chairman Mukesh Ambani and India's foreign minister.
US Ambassador to India Sergio Gor had said in advance that Rubio would meet Reliance officials in Jamnagar. Last week Gor also told reporters that although Rubio had visited India earlier this year, this trip was 'a bit more business-centric'. A statement from Rubio's office had likewise said he would meet business leaders to encourage trade investment and economic cooperation opportunities.
On Tuesday, the first day of the visit, Rubio already signalled a larger US role in India's energy supply. He said a bilateral trade agreement with India was on its way, having previously described India as a crude oil refining 'superpower'.
Analysts note that the US congressional midterm elections fall in early November. Keeping the rising prices of diesel and other fuels in check before then is essential for President Donald Trump's administration. At the same time, building alternative fuel arrangements amid the Iran war — thereby increasing pressure on Russia — is another principal aim of Rubio's trip.
Reliance has also recently promised major investment in the United States, which the Trump administration has cited as one of the prime examples of its success in attracting global capital.
Washington is now seeking to reshape global oil trade. In particular, after the removal earlier this year of Venezuela's then-president Nicolas Maduro, the United States took control of the country's crude oil. The capacity of the Jamnagar refinery is now being revived to process imports of that Venezuelan oil.
Speaking to reporters on Tuesday, Rubio said: 'We will talk with Reliance about refining more Venezuelan crude oil.'
The consumer and market analytics firm Kepler has said Reliance is expected to supply between 350,000 and 370,000 barrels of oil per day to the United States this October.
Mukesh Ambani's Jamnagar refinery is the world's largest single refinery site. Its combined crude processing capacity is 1.4 million barrels per day, about 1.5 percent of global refining capacity. The complex houses two refineries: the original facility, commissioned in 1999, with a capacity of 660,000 barrels per day, and a second, export-oriented refinery in a special economic zone, commissioned in 2008, processing a further 580,000 barrels per day.
Reliance said last month that the complex has so far processed more than 216 different crude grades, claiming it is probably the only refinery to have achieved that feat.
Taken together, Rubio's visit is more than diplomatic courtesy; at its centre lie energy security, oil prices and the new arithmetic of global oil trade. The decision to spend the night in Jamnagar itself underlines how much weight Washington attaches to its talks with Reliance.
