India’s fuel demand dips to lowest in over two years

Source:, Oct 16, 2019

NEW DELHI: India’s fuel demand slipped to its lowest in over two years in September after a fall in diesel and industrial fuel consumption negated the rise in petrol and LPG consumption.

Consumption of petroleum products in September dropped to 16.01 million tonnes, its lowest since July 2017, from 16.06 million tonnes in the same month last year, according to data from the Petroleum Planning and Analysis Cell (PPAC).

Diesel, the most used fuel in the country, saw demand drop by 3.2% to 5.8 million tonnes, while naphtha sales were down by a quarter to 844,000 tonnes. Read the rest of this entry »

Global oil majors see surge in Indian demand for natural gas

Source:, Oct 14, 2019

NEW DELHI: Global oil and gas majors are looking to India, the world’s third biggest oil importer, to buy some of their excess liquefied natural gas (LNG) as the South Asian nation improves its gas infrastructure and strives to reduce emissions.

Spot LNG prices have more than halved since last year due to oversupply as producers battle for market share.

The Indian market looks set to grow, however.

The country is investing $60 billion in gas infrastructure, including setting up cross country pipelines and LNG import terminals to connect gas-starved regions to supply hubs.

Oil Minister Dharmendra Pradhan has said that by the end of Prime Minister Narendra Modi’s current term in 2024, India will be ready with a cross country natural gas grid. Read the rest of this entry »

Reliance to swap diesel for Venezuelan crude oil

Source: The Hindu Business Line, Oct 14, 2019

New Delhi: Reliance Industries will pay for Venezuelan crude oil via exports of diesel in a barter arrangement as it resumed taking supplies from the US sanctions-hit Latin American nation after a gap of four months.

Although US oil sanctions imposed on Venezuela in January 2019 have no direct secondary component, oil companies such as Reliance Industries (RIL) that have a significant US presence have curtailed their commercial ties with the OPEC nation.

Reliance had, in March, capped oil purchases from the Latin American nation and halted selling diluents. “RIL has been supplying permitted products like diesel to Venezuela and, hence, is able to recommence crude sourcing. These are actions compliant to US-sanctions as crude sourcing against the supply of permitted products is allowed,” a company spokesperson said. Read the rest of this entry »

Total to buy 37% stake in Adani Gas for $600 mn to expand India footprint

Source: Business Standard, Oct 14, 2019

French energy giant Total SA is spending $600 million to expand its presence in one of the world’s fastest growing natural gas markets.

Total agreed to purchase a 37.4 per cent stake in India’s Adani Gas Ltd., a distributor of the fuel that is developing import terminals and a national chain of vehicle-filling outlets. Total said in a statement that the acquisition will cost about $600 million taking into account its divestment in another Indian LNG terminal earlier this year.

The deal will give Total access to India’s natural gas market and support its drive to become one of the world’s top LNG players. India’s annual LNG demand will hit 28 million tons by 2023, making it the world’s fourth largest importer of the fuel, according to BloombergNEF. Read the rest of this entry »

India’s Iraq oil imports jump to a record in August

Source:, Sept 26, 2019

New Delhi: India’s oil imports from Iraq surged to a record high in August as refiners replaced costly African imports with cheaper Basra crude, tanker arrival data obtained from industry and shipping sources showed.

The world’s third biggest crude oil importer shipped in about 1.32 million barrels per day (bpd) of Iraqi oil last month, about a third more than July and 29% higher than August 2018, the data showed.

African crude imports fell 18.3% to 764,500 bpd as prices for heavy sweet crudes from Angola, Cameroon and Chad – sought by China’s so-called teapots (small refiners) and major refiners ahead of IMO 2020 – rose. Read the rest of this entry »

How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics

Source: The Hindu Business Line, Sept 19, 2019

Guwahati: In September 2018, India and Bangladesh entered an agreement for a cross-border pipeline to carry one million tonne diesel annually from Siliguri (West Bengal) depot of the Numaligarh Refinery (NRL) to Parbatipur in Bangladesh. One year down the line, the project is gaining speed.

According to sources, the contracts for pipes are already in place and delivery is expected to start from November.

Meanwhile, the Bangladesh government is expected to notify landowners for right-of-way for the underground line. Of the 130-km long pipeline only six km is in India. The West Bengal government has already ensured the right of way. India is offering ₹303 crore financial assistance in completing the project that will largely meet the diesel requirements of northern parts of Bangladesh. Read the rest of this entry »

Rosneft steps in to help India fill gap in oil supply

Source:, Sept 18, 2019

NEW DELHI : Russia’s largest oil company Rosneft PJSC will assist India with its energy security efforts against the backdrop of the drone attacks on Saudi Arabian Oil Co., or Saudi Aramco, that have caused the biggest-ever disruption in global crude oil supplies, Igor Sechin, chairman of Rosneft, conveyed during his meeting with India’s oil minister Dharmendra Pradhan on Tuesday in New Delhi.

The meeting comes as India’s state-run oil marketing companies (OMCs) strive to secure a long-term deal for procuring crude from Russia. It gains significance as it follows Saturday’s drone attacks in Saudi Arabia, which is the second-largest crude supplier to India. India is highly susceptible to sharp oil price fluctuations as it imports 80% of its crude oil and 18% of its natural gas.

“This incident is huge,” Pradhan told reporters about the drone attacks. “However, yesterday, we lifted oil, and today also, we lifted oil (from Saudi Aramco),” he said. Read the rest of this entry »