Traders spot opportunity as LNG price dips to record low

Source: LiveMint.com, Aug 23, 2019

It’s bargain time in the liquefied natural gas (LNG) market. After prices plunged to their lowest on record for this time of year, traders say buyers from Japan to India have started to snap up cargoes in anticipation of a pickup in winter demand.

Procurement for the colder season is only expected to intensify over what’s left of the summer.

“We have likely reached bottom,” Sanford C. Bernstein & Co. analysts, including Neil Beveridge, said in a report. Read the rest of this entry »

India’s July petrol imports hit highest in eight years

Source: LiveMint.com, Aug 22, 2019

Bengaluru: India’s July crude oil imports declined from a year earlier, while petrol imports climbed to their highest since at least April 2011, data from the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) showed on Wednesday.

Crude oil imports into the world’s third-largest consumer declined 1.2% from a year earlier to 19.34 million tonnes, but increased 14.6% from the previous month.

Petrol imports rose to 230,000 tonnes in July, the highest since PPAC data going back to 2011.

Government data published earlier this month showed sales of gasoline, or petrol, were 8.8% higher from a year earlier at 2.52 million tonnes. Read the rest of this entry »

Reliance Industries’ $4-bn investment threatened by global natural gas glut

Source: Business Standard, Aug 21, 2019

A global glut in natural gas is threatening to undermine a $4 billion investment by Reliance Industries Ltd aimed at boosting profits at the world’s largest oil refining complex.

The project made all the sense in the world when energy magnate Mukesh Ambani’s conglomerate announced it in 2012: convert petroleum coke, or petcoke, one of the cheapest and dirtiest refinery by-products, into gas needed to power the massive Jamnagar complex on India’s west coast. Then it hit about three years of delays, and global gas markets crashed amid a growing supplies of liquefied cargoes from the US, Australia and Russia.

The 10 synthetic gasifiers that make up the project are now finally commissioned. But the imported LNG they’re meant to displace has fallen from about $15 per million British thermal units in 2012 to less than $5. Read the rest of this entry »

Centre increases oil and gas bidding round to three times a year

Source: Business Standard, Aug 18, 2019

New Delhi: Delays in bidding rounds notwithstanding, the government has increased the expression of interest (EoI) submission cycle for oil and gas acreage to three times a year from two times earlier, the Directorate General of Hydrocarbons (DGH) said.

India had in July 2017, allowed companies to carve out blocks of their choice with a view to bring about 2.8 million sq km of unexplored area in the country under exploration.

Under this policy, called open acreage licensing policy or OALP, companies are allowed to put in an EoI for prospecting of oil and gas in any area that is presently not under any production or exploration licence.

The EoIs can be put in at any time of the year and were accumulated twice annually. But now, this cycle has been increased to three. Read the rest of this entry »

How Mukesh Ambani-led world’s biggest refinery is bracing for an EV future

Source: Business Standard, Aug 11, 2019

New Delhi: Billionaire Mukesh Ambani’s Reliance Industries Ltd plans to produce only jet fuel and petrochemicals at its mega Jamnagar refinery complex as it implements an oil-to-chemical strategy that will eliminate most fuels it produces in favour of high value products.

The company is preparing its Jamnagar complex, the world’s largest refinery at a single location, to be future ready as fuel demand undergoes change with advent of electric vehicles.

“Jamnagar shall be the refinery icon of the world with best-in-class performance,” the company said in its latest annual report outlining its vision. Read the rest of this entry »

Govt set to ease rules for entry into fuel retail after two decades: Report

Source: Business Standard, Aug 07, 2019

New Delhi: The government is set to relax rules for setting up fuel stations after almost two decades, in a move expected to allow companies like Saudi Aramco, Total and Trafigura to gain a foothold in a sector dominated by state-run entities.

The new rules – suggested by an expert panel – mirror those in developed nations like the United States and Britain, and would allow convenience stores, shopping malls and hypermarkets to sell fuels if they are eligible, said an oil ministry source.

The government panel has recommended allowing marketing rights for sale of gasoil, gasoline and aviation fuel to companies with a net worth of Rs 250 crore. Read the rest of this entry »

Reliance, BP announce new joint venture to set up 5,500 petrol pumps

Source: Business Standard, Aug 06, 2019

New Delhi: Reliance Industries and UK’s BP plc have agreed to form a new joint venture to set up 5,500 petrol pumps and retail aviation turbine fuel to airlines in India, said the two companies said on Tuesday.

The companies” have agreed to form a new joint venture that will include a retail service station network and aviation fuels business across India”.

The joint venture will build on Reliance’s existing fuel retailing network of near 1,400 petrol pumps and an aviation fuel business.

“This joint venture will also include RIL’s aviation fuels business, which currently operates at over 30 airports across India, providing participation in this rapidly-growing market,” the statement said. Read the rest of this entry »