Mumbai: One of the world’s richest men Mukesh Ambani is going to receive another shipment of liquefied American ethane which is diverted from neighbouring China. As the tariff deadline hits on July 9 the Reliance chairman may have already offered Washington a timely concession via energy economics. How Mukesh Ambani Is Playing A Major Role In US-India Trade Relations? Notably RIL is going to receive the second shipment of liquefied US ethane which is diverted from China. This is happening amid the ongoing trade tensions. The liquefied gas is scheduled to land at the company’s Dahej terminal. The company will convert it to ethylene a crucial component for plastics. RIL’s shift to alternative energy sources could lower its operational expenses and mitigate the impact of President Trumps 26 percent tariffs a report by Bloomberg said. Why Is The Strategic Shift In Fuel Economics? It is worth noting that it is not the first time that Mukesh Ambani’s company is using American ethane. In 2017 Reliance became the first company to conceptualise massive imports of the fuel from North America. Today Reliance is currently navigating global trade instability successfully thanks to Mukesh Ambani’s forward-thinking strategies. His foresight is also enhancing profitability in the petrochemical sector. Ethan – earlier not popular in India – is known for economic and environmental advantages in ethylene production as compare to naphtha. Producing ethylene from ethane is cheaper option. 80 percent ethylene can be produces by using ethane gas as compared to naphthas 30 percent. This advantage is major in India where declining oil demand from biofuels and electric vehicles is making ethane a more appealing feedstock. What Is The New Pipeline Politics? The Reliance industries is planning to lay 100-km pipeline to transport ethane to another unit in the Gujarat state further expanding its ethane fleet from six to nine ships. Not only that but Public-sector giants ONGC and GAIL are also entering the market. This growing North American link hints at a possible long-term shift in India’s petrochemical supply chain. Meanwhile Qatar – earlier India’s major natural gas partner – has recently updated its gas contracts with ONGC. The Middle East country has removed ethane unless it’s paid for separately. However this move by Qatar has forced India to look for better and cost-effective options line United States. But what does this mean geopolitically? Now with this Trump can say that his trade policies are inviting new trades and making America great again said Bloomberg’s Andy Mukherjee. “while Ambani gets cheaper feedstock — and perhaps a stronger seat at the bilateral table” Beyond Fuel: Is It A Larger Reliance Strategy? RIL’s massive USD74 billion oil-to-chemicals empire still dominate the sector but Ambani’s newer bets on retail and telecom like Jio Platforms have already brought USD57 billion in revenue. Still it’s his roots in the petrochemicals business the legacy that earned him the nickname “Polyester Prince.” This may quietly help ease ongoing trade tensions over tariffs.