Reliance Industries Invests in Ethane Carriers to Boost Transportation Infrastructure

Introduction:

Reliance Industries (NS:RELI) has made a strategic investment in its subsidiary, Reliance Ethane Holding Pte Ltd (REHPL), to bolster its transportation infrastructure for ethane. The investment, totaling $102.90 million, aims to facilitate the acquisition of Very Large Ethane Carriers (VLECs) by three wholly owned subsidiaries of REHPL, namely Ethane Coral LLC, Ethane Diamond LLC, and Ethane Jade LLC (collectively referred to as Ethane LLCs). This move underscores Reliance's commitment to enhancing its capabilities in ethane transportation, leveraging its extensive network and resources.

Key Highlights:

• Investment Details: REHPL has acquired 34,300,000 ordinary shares of face value USD 1 each in its three subsidiaries, amounting to $102.90 million. This investment enables the Ethane LLCs to make part payments towards the construction costs of three VLECs, which are crucial for the transportation of ethane.

• Purpose of Investment: The investment is geared towards strengthening the transportation infrastructure for ethane, a key component in various industrial processes. By facilitating the acquisition of VLECs, Reliance aims to enhance its logistical capabilities and optimize the supply chain for ethane transportation.

• Strategic Significance: Ethane LLCs, incorporated in the Republic of the Marshall Islands, are poised to play a pivotal role in Reliance's ethane transportation operations. These entities, yet to commence commercial operations, are strategically positioned to capitalize on the growing demand for ethane transportation services.

• Related Party Transaction: The investment falls within the purview of related party transactions, involving transactions between REHPL and its wholly owned subsidiaries. Reliance emphasizes that the investment is conducted on an arm's length basis, with no involvement of the Promoter, Promoter Group, or other group companies.

• Regulatory Compliance: Reliance Industries affirms that the investment does not require any governmental or regulatory approvals, highlighting the seamless execution of the transaction within the regulatory framework.

Conclusion:

Reliance Industries' investment in ethane transportation infrastructure underscores its commitment to innovation and strategic expansion in key sectors. By facilitating the acquisition of VLECs through its subsidiaries, Reliance aims to strengthen its position in the ethane transportation market, leveraging its expertise and resources to drive operational efficiency and value creation. As the demand for ethane transportation continues to grow, Reliance is well-positioned to capitalize on emerging opportunities, further solidifying its leadership in the energy and petrochemicals industry.