Al-Kharafi to invest Rs 49,000 cr to set up petroleum refinery in TN

Source: Business Standard, Jan 23, 2019

Chennai: Kuwait-based Al-Kharafi is likely to invest around Rs 49,000 crore to set up a petroleum refinery and petrochemical products facility at Thoothukudi in Tamil Nadu. The investment is one of the several pouring into the state.

Chief Minister Edappadi K Palaniswami said that Al-Kharafi is expected to set up a petroleum refinery in compliance with BS-VI emission norms adhering to the environmental standard to manufacture petrochemical products.

“This will bring in economic growth in the southern part of the state similar to that which took place in Jurong Island in Singapore and Dahej and Jamnagar in Gujarat,” the chief minister said after laying the foundation stone for DLF Down Town Chennai. “I assure the captains of industries present here that we will continue to fully support all your investments in Tamil Nadu.”

The state has seen 59 projects begin commercial operations in a year after the second Global Investors Meet held in Chennai last January, while another 213 are in various stages of development. Besides, the electric vehicle manufacturer BYD and major mobile phone designing and manufacturing firm Wintech have also started taking steps to set up their manufacturing facilities in Tamil Nadu, he added.

After the global meet, the state has signed 63 agreements to attract investments around Rs 19,000 crore. After setting up a high-level committee headed by the chief minister, 36 industrial projects worth Rs 14,728 crore have been awarded various approvals to start operations. This will create 22,763 employments.

Foreign Direct Investment into the state has seen an increase of around Rs 47,000 crore in the last three years, pegging it at around Rs 1,80,000 crore now, he added. The state has been constantly attracting new investments across sectors including Information Technology. The recent investments by TCS and Infosys alone, are expected to create 31,000 direct IT sector jobs in the State, he said.

Centre approves Rs 5,600-cr for 1,656 km-long North East Gas Grid

Source: Business Standard, Jan 08, 2019

The Cabinet Committee on Economic Affairs approved Rs 5,559 crore in viability gap funding for a 1,656 km gas grid in the Northeast region.

This is around 60 per cent of the project cost of Rs 9,256 crore for the pipeline in the region’s eight states, by Indradhanush Gas Grid (set up by state-run Indian Oil Corporation, Oil and Natural Gas Corporation, GAIL, Oil India, and Numaligarh Refinery), is to supply industries, homes and transport vehicles.

“At present, of the 75 million standard cubic metres a day (mscmd) of natural gas produced in India, around 15 mscmd or 20 per cent is from this region, from Assam, Arunachal Pradesh and Tripura; we also have potential in Nagaland and Manipur. The current decision is going to open up the possibility to explore this potential,” said Dharmendra Pradhan, Union minister of petroleum and natural gas.The eight states are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. The government expects availability of gas to boost industrial growth without spoiling the environment.

Oil hits $70 as Iran exits nuclear deal, tensions intensify

Source: LiveMint.com, Jan 06, 2020

Oil extended its dramatic price surge from Friday as the fallout between the U.S. and Iran escalated after the assassination of one of the Islamic Republic’s most powerful generals.

Futures are up about 6% since Friday, trading above $70 a barrel in London, as the U.S. State Department said there’s “heightened risk” of missile attacks near military bases and energy facilities in Saudi Arabia. Iran said on Sunday it no longer considers itself bound by the 2015 nuclear deal negotiated with the U.S. and other world powers in the fallout from the killing of General Qassem Soleimani.

Oil’s rising after a more than 20% gain in 2019, as the warning followed a weekend of bellicose rhetoric. President Donald Trump said he was prepared to strike “in a disproportionate manner” and attack more than 50 Iranian sites if Tehran retaliates against the killing of Soleimani, while the Middle East nation said it has to “settle a score with the U.S.” Read the rest of this entry »

ONGC gets all 7 oil, gas blocks in latest bid, adds 18,510 sq km of area

Source: Business Standard, Jan 02, 2020

New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) on Thursday walked away with all the seven oil and gas blocks on offer in the latest bid round that saw just eight bids coming in.

ONGC signed contracts for the seven blocks at an event where Oil Minister Dharmendra Pradhan and other ministry officials were also present.

“These 7 blocks are adding exploration acreage of 18,510 square kilometres spread over three sedimentary basins of India and have a resource potential of approximately 33 billion barrels of oil and oil equivalent gas,” he said.

The latest licensing round for allowing companies to explore for oil and natural gas was held on revamped terms but saw only ONGC and Oil India Ltd participating in it. ONGC put in bids for all the seven blocks on offer, while OIL put in an offer for one block at the close of bidding on October 31, 2019. Read the rest of this entry »

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

Source: LiveMint.com, 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: LiveMint.com, 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 »