Oil:
Haldia Petchem Plans USD10 Bn Oil-to-Chemical Project in South India
(By Construction World, 17 April 2024)
According to Haldia CEO Navanit Narayan, the private equity firm (TCG) intends to construct an oil-to-chemical project in Cuddalore, Tamil Nadu, capable of producing 3.5 mtpa of ethylene and propylene by 2028 to 2029. He further added that while the western part of India was saturated with petrochemical projects, the southern region lacked a significant petrochemical project to fulfill regional demand.
India’s Crude Oil Import Bill Drops 16% in FY24, Import Dependence Soars to 87%
(By Mint, 17 April 2024)
India’s crude oil import bill dropped 16%, y-o-y, in the fiscal year (FY) ending 31 March 2024 because of lower international prices but the dependency on overseas suppliers rose to a new high. India imported 232.5 million tonnes of crude oil during FY 2023-24, almost the same as in the previous FY. Import dependency of crude oil soared to 87.7% in 2023-24, up from 87.4% in previous FY.
Govt Raises Windfall Tax on Petroleum Crude to INR9,600 per MT From 16 April
(By Business Standard, 15 April 2024)
The Indian government has raised its windfall tax on petroleum crude to INR9,600 a metric ton from INR 6,800 rupees with effect from 16 April. The tax rate is revised every fortnight. The India government had on 4 April raised windfall tax on petroleum crude to INR 6,800 rupees a metric ton from INR 4,900 a metric ton.
How Iran-Israel War May Impact Crude Oil Prices In India
(By Business Outlook, 15 April 2024)
Iran produces around 3.2 mmbd of crude oil. The country also has significant control on the Strait of Hormuz which accounts for 30% of oil transit and 70% of oil shipment to Asia. Apart from crude oil, Qatar ships its LNG through the Strait of Hormuz accounting for a fifth of the global consumption. Any big spike in price would affect OMCs negatively as they may not be able to take commensurate price hikes.
Navigating Uncharted Waters: How the Iran-Israel Conflict Could Impact India’s Oil Economy
(By Economic Times, 15 April 2024)
The ongoing conflict has stoked fears of supply disruptions or blockades in key shipping routes like the Strait of Hormuz, through which a significant portion of the world’s oil passes. For India, which counts oil as a major import, even a small spike in prices can have outsized effects on its trade deficit and economic health.
India’s Oil Demand to Rise by 0.2 MMBD in 2024: OPEC
(By The New Indian Express , 13 April 2024)
As per the OPEC monthly report, diesel is projected to be the driver of India’s oil demand growth, supported mostly by agriculture, construction, and manufacturing activities. Moreover, annual traditional festivities are expected to support transportation activity and boost petrol, while the ongoing air travel recovery is expected to bolster jet or kerosene demand.
Gas:
Gujarat Gas, IOCL Inks MoU to Broaden Services
(By Business World, 19 April 2024)
Gujarat Gas (GGL) and Indian Oil Corporation (IOCL) have entered into a non-binding memorandum of understanding (MoU) to expand the scope and accessibility of energy solutions for consumers. Under the MoU, IOCL will provide automotive lubricants, greases and specialties at the GGL outlet, set up CNG Facility at IOCL COCO Outlets and GGL will set up CNG mother facility at IOCL outlets.
GAIL Plans to Double Capacity of Dabhol LNG Terminal
(By Offshore Technology, 17 April 2024)
GAIL is planning to more than double the capacity of its LNG terminal at Dabhol, Maharashtra. By 2030–31, the expansion aims to raise the terminal’s capacity to 12 mtpa in a phased manner. Currently, the Dabhol terminal has a nameplate capacity of 5mtpa; however, it operates at around 2.9mtpa as it remains idle during the monsoon season.
India’s LNG Imports Down in March
(By LNG Prime, 17 April 2024)
The country imported 2.52 billion cubic meters, or about 1.9 million tonnes of LNG in March via long-term contracts and spot purchases, a decrease of 1.1%, y-o-y. As per India’s natural gas production, it reached 3.13 bcm in March, up by 6.2 percent, y-o-y. During the April 2023-March 2024 financial year, India took 30.91 bcm of LNG, or some 23.3 million tonnes, up by 17.5%, y-o-y.
AG&P LNG Marketing Secures USD370 Mn Investment to Boost Indian Gas Infrastructure
(By Global Data, 16 April 2024)
A consortium of Japanese investors has agreed to invest USD370 Mn in AG&P LNG Marketing to accelerate the energy transition in India. The consortium includes Osaka Gas, Sumitomo Corporation and the Japan Overseas Infrastructure Investment Corporation. AG&P LNG Marketing, based in Singapore, operates in India’s CGD sector, with investments in THINK Gas and AG&P Pratham.
Maiden Cargo Delivered to India’s Chhara LNG Terminal
(By Gas World, 15 April 2024)
The first cargo of LNG has been delivered to HPCL’s Chhara import terminal in Gujarat, having an annual import capacity of 5 million tonnes. The terminal boasts a 1.2km-long jetty capable of accommodating carriers with capacities ranging from 80,000 to 266,000 cbm. It also features two LNG storage tanks, each with a capacity of 200,000 cbm.
Govt Asks Gas-Based Plants to be Operational from May 1 to June 30 as Demand Surges
(By ET, 13 April 2024)
The ministry has projected 260 GW peak power demand this summer (April to June 2024) due to a likely prolonged heat wave this summer. Peak power demand had touched an all-time high of 243 GW in September last year. A significant portion of Gas-Based Generating Stations is currently unutilized, primarily due to commercial considerations.
