Reliance, Chevron and Total join London-based oil blockchain platform Vakt
Oil majors Chevron and Total, along with major Indian refiner Reliance Industries, have joined the blockchain-based platform Vakt, London-based Vakt said on Tuesday. Vakt, already in use by other major trading firms since the end of last year, is the first of many blockchain pilot schemes for commodities trading to go live. The firm was created in 2017 by a consortium that includes oil majors BP and Royal Dutch Shell, Norway’s Equinor, global energy trading firms Mercuria Energy Group and Koch Supply and Trading, as well as Gunvor Group. Its original shareholders began using the system in November, starting for North Sea crude oil trading. Banks ABN Amro, ING and Societe Generale are other shareholders. Blockchain, the platform behind cryptocurrency Bitcoin, is viewed by many as a solution to trade and settlement inefficiencies, as well as a way to improve transparency and reduce the risk of fraud. Vakt digitises and centralises what was previously a mountain of paperwork shared between all the parties involved in each deal. “Total has been supporting industry initiatives to digitise cargo post-trade processes for some time,” Total’s head of trading and shipping Thomas Waymel said in a statement. “We view them as a major step forward towards safer, faster and cheaper logistical operations. We are committed to contribute to the roll out to various markets of the VAKT blockchain platform.”
Cabinet approves Rs 22,594-crore Numaligarh refinery expansion project
The government on Wednesday approved a capacity expansion plan for Numaligarh refinery in Assam from the existing 3 million metric tonne per annum (MMTPA) to 9 MMTPA at an estimated cost of Rs 22,594 crore. The project is to be completed within a period of 48 months after the approval and receipt of statutory clearances, Union minister Piyush Goyal told reporters while briefing reporters here. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, gave its approval to the project for expansion of Numligarh Refinery Assam with capacity to be expanded from 3 MMTPA to 9 MMTPA. The expansion project involves setting up crude oil pipeline from Paradip to Numaligarh and product pipeline from Numaligarh to Siliguri at a cost of Rs 22,594 crore, he said.
China natural gas imports to rise 14% y-o-y to 143 bcm in 2019
* China’s natural gas imports are expected to rise 14 pct y/y to 143 bcm in 2019, said the think-tank at China’s largest energy producer, China National Petroleum Corp, on Wednesday * China’s apparent oil demand is expected to rise 6.9 pct y/y to 668 mln tonnes in 2019, CNPC said * China’s refinery throughput is forecast to rise 4.7 pct y/y to 634 mln tonnes in 2019, it said * China’s crude oil output is forecast at 189 mln tonnes in 2019, flat with 2018 * China’s net crude oil imports expected to rise 9.8 pct y/y to 694.3 mln tonnes in 2019 * China’s gasoline demand forecast to rise 3.6 pct y/y to 131.9 mln tonnes in 2019 * China’s diesel demand forecast to fall 1.1 pct y/y to 158 mln tonnes in 2019 * China’s kerosene demand to rise 9.5 pct y/y to 40.3 mln tonnes in 2019 * China’s total fuel demand to rise 1.9 pct y/y to 330.2 mln tonnes in 2019 * China’s total fuel exports forecast to rise 18.8 pct y/y to 48.6 mln tonnes in 2019 * China’s natural gas consumption to rise 11.4 pct y/y to 308 bcm in 2019 * China’s natural gas output expected to rise 8.6 pct y/y to 170.8 bcm in 2019
US oil output to rise to 12.9 million bpd in 2020
Crude oil output from the United States is expected to rise to a new record of more than 12 million barrels per day (bpd) this year and to climb to nearly 13 million bpd next year, the US Energy Information Administration said on Tuesday in its first 2020 forecast. US crude production is forecast to climb 1.14 million bpd to 12.07 million bpd in 2019 and an additional 790,000 bpd in 2020 to 12.86 million bpd, the statistics arm of the US Energy Department said in a monthly report. The United States has become the world’s largest crude producer, boosted by output from shale formations, with production of nearly 11 million barrels in 2018, which broke the country’s annual record set in 1970. “Steady growth from non-OPEC countries, including the United States, headlines the forecast for global crude oil production through 2020,” Linda Capuano, EIA administrator said in comments issued following the forecast. “We expect the United States to remain the world’s largest producer.” The forecast indicates that the US will become a net crude exporter in late 2020. US demand for diesel and other distillate fuels is expected to rise 20,000 bpd to 4.15 million bpd in 2019 and to rise to 4.19 million in 2020, the agency said. US gasoline demand in 2018 was seen at 9.29 million bpd, down from 9.31 million bpd previously. Gasoline demand is expected to rise to 9.35 million bpd in 2019 and to hold that level in 2020, the EIA said.
India to buy $5 billion oil, gas from US & spend $18 billion in defence
India has committed to purchase USD 5 billion worth of oilNSE -0.14 % and gas from the US per annum and USD 18 billion worth of defence equipment that are under implementation, a top Indian diplomat here said, highlighting the growing bilateral trade cooperation. The US export to India has gone up by at least 30 per cent, India’s Ambassador to the US Harsh Vardhan Shringla told the American business community, his first major public engagement Tuesday. In the last two years, the bilateral trade has increased from USD 119 billion to USD 140 billion, he said. At a reception hosted in his honour by the US-India Business Council (USIBC), Shringla said India has been sourcing and buying much more from the US than ever in the past. In the field of oil and gas alone, he said, India has committed to purchase USD 5 billion from the US every year. Commercial Indian airlines, Shringla said, have placed orders of 300 airplanes worth USD 40 billion. “We’re looking at importing products that we’ve never bought from the US before,” he said, adding that some of the consumer products from the US are increasing in demand in India. In the defense sector, India is looking at USD 18 billion worth of orders that are under implementation. Not only this, the large number of Indian students – numbering 227,000 currently – contribute USD 6.5 billion to the American academic sector, Shringla said, giving an example towards India’s contribution to the US economy. Addressing representatives from the American corporate sector, he said that the progress made by India and the US in the last few years has been unparalleled. “What amazes me is that in the last few years, the amount of progress that our relationship has made is unparalleled in many senses. The United States is India’s largest trading partner. We are among the top 10 trading partners in terms of sheer volume of business,” Shringla said. Referring to the pro-business initiatives of the Indian government, the Indian Ambassador urged the American corporate sector to take benefit of the new business-friendly atmosphere in India and invest in the country. In his remarks, the US Chambers of Commerce president Tom Donohue said there are many issues in common, many challenges that the two countries have to deal with collectively. “Our promise (is that) we will put all the attention and energy it takes to make this relationship successful,” Donohue said. The US-India relationship has gone from being a bilateral relationship to be both global and local, USIBC president Nisha Desai Biswal said, observing that the two countries have boundless opportunities in partnership. “We’re partnering across the Indo-Pacific. But we’re also deepening the ties between our cities and states. In fact, throughout the year, you will see more and more engagement between our states in our cities, more and more governors, mayors going to India, chief ministers and legislators coming here,” said Biswal, the former Assistant Secretary of State for South and Central Asia. Noting that the US-India relationship is strong, Indian-American Congressman Raja Krishnamoorthi said it transcends politics and is getting stronger.
Indian Oil chairman says optimistic of getting another waiver from US sanctions
Indian Oil Corp Chairman says will raise more funds from overseas markets * Adds may raise $5-$6 billion from overseas mkts * Indian oil corp chairman on halting iran oil imports: says ‘it’s a tough call’ * Further adds that optimistic of getting another waiver from US Sanctions
Petrobras produced 2.03 mln bpd in Brazil in 2018, shy of target
Petroleo Brasileiro produced an average of 2.03 million barrels per day (bpd) in Brazil last year, the oil company said in a statement on Tuesday, just below the company’s target of 2.1 million bpd. Petrobras’ total production of oil and natural gas was 2.63 million barrels of oil equivalent per day (boe/d), with 101,000 boe/d produced abroad, it said. The company had targeted 2.7 million boe/d. In its statement, Petrobras said it expected to produce 2.8 million boe/d in 2019.
Budget call on LNG duty cut
The oil ministry is hopeful of a cut in customs duty on liquefied natural gas (LNG) to zero per cent from 2.5 per cent in the interim budget on February 1. Officials said there was a possibility of a reduction in the customs duty on LNG as it would help in the government’s effort to increase the use of clean fuel. The oil ministry has taken up the issue with the finance ministry. LNG is a clean fuel mainly used in the fertiliser and power sectors, and a shortage in domestic production has led the government to focus on its import. Currently, LNG attracts an import duty (basic customs duty) of 2.5 per cent plus social welfare surcharge of 10 per cent, taking the effective customs duty to 2.75 per cent. However import by power generators for domestic distribution is exempt from the duty, though other sectors such as fertiliser, LPG, CNG, PNG and petrochemical pay the effective duty. Sources said the customs duty increased the landed cost of imported LNG for domestic and industrial consumers. Since the domestic production of natural gas is not enough to cater to the increasing demand, import of LNG at a large scale is required to augment the supply of natural gas to priority sectors such as fertiliser, CNG, LPG and PNG. “In view of limited availability of indigenous natural gas, customs duty on LNG needs to be reduced to nil without mentioning any end use condition so that all users can avail the concessional duty benefit,” they added. According to the International Energy Agency, demand in India is projected to grow at an average of 6 per cent per year to around 80 billion cubic metres (bcm) by 2022 from 55bcm now. India, the world’s fourth-biggest importer of liquefied natural gas (LNG), does not have a free market regime for gas. Natural gas is sold on the basis of a government-mandated formula that links the local price to international rates, while most long-term import contracts are linked to crude oil. Increase in demand and fall in domestic production has led to an increase in imports of LNG by 12.7 per cent in the current fiscal. During the year, the country imported LNG mainly from Qatar (47 per cent), Nigeria (17 per cent) and the US (6 per cent), Angola (6 per cent) and Australia (6 per cent).
Bangladesh’s second LNG terminal to start in March; supply faces hiccups
Bangladesh’s second liquefied natural gas (LNG) terminal is expected to start operations in mid-March though domestic pipeline constraints means it will be unable to fully supply gas demand to the country’s capital Dhaka. Summit Corp, a subsidiary of Bangladesh’s Summit Holdings, and partner Mitsubishi Corp are expected to start operations at their floating storage and regasification unit (FSRU) off the country’s coast by the middle of March and ahead of schedule, a source familiar with the matter told Reuters on Tuesday. A Summit Corp spokeswoman confirmed in an emailed response that the Summit LNG terminal is on schedule, but did not elaborate. However, construction delays on a pipeline that will carry regasifed gas from the coastal city of Chattogram, near where the FSRU will be anchored, to Dhaka means that the vessel will not be fully utilised, the source said. Until the pipeline is fully connected, the FSRU will handle about 300 million cubic feet per day (mmcfd) of gas which will be supplied to the Chattogram area, the source said. The ship can regasify up to 500 mmcfd of LNG, according Summit’s website. Once the pipeline is completed, state-owned energy company Petrobangla will be able to send up to 1,000 mmcfd from both the Summit FSRU and a vessel operated by U.S. company Excelerate that started up in August, the source said. “Our target is to complete all the connecting gas transmission pipelines by April,” Ali Al-Mamun, managing director of the Gas Transmission Company Limited, a subsidiary of state-owned Petrobangla, told Reuters. He added that the company has awarded a contract to Chinese oil and gas major CNOOC to build a 7-km (4.2 mile)pipeline that connects the Summit FSRU to the shore. Other pipelines that will connect the offshore pipeline to the country’s main gas grid near the city of Bakhrabad are still being built, he said. Summit LNG’s FSRU will anchor 6 km off the island of Moheshkali in the Cox’s Bazar district of the Chattogram division, where it will regasify LNG procured by Petrobangla. The planned LNG import volume of the project is about 3.5 million tonnes a year, which will double the country’s LNG import capacity to 7.5 mmtpa once fully operational. Bangladesh has scrapped plans to build additional floating LNG terminals in favour of land-based stations after the start-up of Excelerate’s vessel was delayed by several months due to technical problems and bad weather.