Reliance Leases 1.2 Million Barrels of Storage in Bahamas

India's Reliance Industries has leased about 1.2 million barrels of clean storage at the Borco Terminal in Bahamas as it seeks to increase its presence in the U.S., trade sources said.

Reliance, which operates the world's biggest refining complex, aims to directly sell fuel in the U.S., the world's biggest oil consumer, and had earlier leased 800,000 barrels of clean storage from American refiner Hess in the New York harbor.

Two sources said on Friday the firm leased about 1.2 million barrels storage with Borco, while a third source put the figure at 1 million barrels.

They said the Borco deal was done in the second half of 2009.

"Reliance began supplying gasoline to the Bahamas storage from October. By the end of January it had supplied about 515,000 tons of gasoline to the Bahamas," a source said.

Reliance last year began shipments to the U.S., after it started its 580,000 barrels per day refinery, located next to its old 660,000 bpd refinery at Jamnagar in Western India.

Reliance Industries did not comment on the storage lease.

Industry sources had earlier said Reliance had leased 500,000 barrels of storage space at the Borco terminal.

Reliance has, over the past few years, embarked on a robust marketing campaign to sell its refined products in Europe, Latin America, East Africa and the U.S.

Tougher new carbon emissions limits in the U.S. and lower profitability may cause already limited refining capacity in the country to shrink further as more U.S. companies consolidate their crude processing plants.

Last year, Reliance commissioned its clean storage facility at Ashkelon terminal in Israel to tap Mediterranean and European markets.