RIL plans to develop chemical facility in Ruwais with Adnoc
In what may further bolster India’s robust ties with West Asian energy producers, Mukesh Ambani-promoted Reliance Industries Ltd (RIL), plans to develop a Ethylene Dichloride facility in Ruwais with Abu Dhabi National Oil Co (Adnoc), the state-run oil company of the United Arab Emirates (UAE), the companies said in a joint statement on Tuesday. Ethylene Dichloride is a basic building-block for manufacture of Polyvinyl chloride (PVC), which is used in the housing and agriculture sectors. “Under the terms of the agreement, ADNOC and RIL will evaluate the potential creation of a facility that manufactures EDC adjacent to ADNOC’s integrated refining and petrochemical site in Ruwais, Abu Dhabi and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals,” the statement said. This comes in the backdrop of India’s evolving energy security architecture, with the UAE supplying 6% of India’s crude oil imports. With three million barrels per day of crude oil production, Adnoc is the world’s 12th-largest producer. The UAE is a member of the Organization of Petroleum Exporting Countries (Opec), which accounts for around 83% of India’s total crude oil imports and 40% of global production. “ADNOC would supply ethylene to the potential joint venture and provide access to world-class infrastructure at Ruwais, while RIL will deliver operational expertise and entry to the large and growing Indian vinyls market, in which it is a key participant,” the statement added. Adnoc is also looking to expand its presence in India by investing in refining and petrochemical projects and stocking more crude oil in India, the world’s third-largest energy consumer. It is the only foreign energy company, so far, to partner in India’s strategic petroleum reserves programme. It is also a stakeholder in one of India’s largest refinery and petrochemicals projects, that now hangs in uncertainty after the new ruling alliance came to power. The 60 million tonnes per annum (mtpa) refinery is a joint venture between Saudi Aramco, Abu Dhabi National Oil Co. (Adnoc), and three state-run oil marketers— Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd. “This is a significant step towards Reliance’s commitment to pursue backward integration and will pave the way for enhancing PVC capacity in India to cater to the fast growing domestic market. This co-operation ideally combines advantaged feedstock and energy from the UAE with Reliance’s execution capabilities and the growing Indian market,” Nikhil R. Meswani, RIL executive director said in the statement. RIL is also in the process of selling a 20% stake in the company’s flagship chemicals and refining business to Saudi Aramco in a deal valued at $15 billion, as the Indian company seeks to cut its massive debt and secure an assured supply of crude oil to its refineries. RIL has developed a strategy to transform the Jamnagar refinery from a producer of fuels to chemicals, moving up the value chain.
Total length of LPG Pipeline network in India is 8,296 km: Natural Gas Minister Pradhan
The Union Minister for Petroleum and Natural Gas, Dharmendra Pradhan, stated in Parliament today that establishment of LPG Pipeline infrastructure is taken up by the Public Sector Oil Marketing Companies (OMCs) based on techno-commercial feasibility studies. LPG Pipelines are laid from refineries to LPG bottling plants. Petroleum and Natural Gas Regulatory Board (PNGRB) established under the PNGRB Act, 2006, in the year 2007, is the authority to grant authorization for laying of LPG pipelines. Entities that propose to lay, build, operate or expand a pipeline apply to the Board for obtaining authorisation under the Act. The total length of LPG Pipeline network in the country is 8,296 km comprising of the following pipelines: 1. Panipat-Jalandhar LPG Pipeline (Length: 280 Km) 2. Paradip-Haldia-Durgapur LPG pipeline (Length: 673 Km); (extension of pipeline to Patna and Muzaffarpur results in total length of 918 Km) 3. Ennore-Trichy-Madurai LPG pipeline (Length: 615 Km) 4. Kandla-Gorkhpur LPG pipeline (Length: 2757 Km) 5. Jamnagar-Loni LPG pipeline (Length: 1414 Km) 6. Vizag-Secunderabad LPG pipeline (Length: 621 Km) 7. Mangalore-Hassan-Mysuru-Yediyuru LPG pipeline (Length: 356 Km) 8. Uran-Chakan/Shikrapur LPG pipeline (Length: 168 Km) 9. Hassan-Cherlapally LPG pipeline (Length: 680 Km) 10. Mumbai-Uran LPG pipeline (Length: 29 Km) 11. Kochi-Coimbatore-Salem LPG pipeline (Length: 458 Km) Three OMCs namely, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited have formed a consortium for submitting the bid to PNGRB for authorization for Kandla-Gorakhpur LPG Pipeline. PNGRB has granted authorization to the consortium for implementing and operating Kandla-Gorakhpur LPG Pipeline. This information was given by the Union Minister for Petroleum and Natural Gas Dharmendra Pradhan in a written reply in the Rajya Sabha .
India’s fuel demand growth hits 23 month high in November
India’s fuel demand grew by 10.5 per cent in November from a year earlier, its fastest pace since January 2018, driven by higher consumption of transport fuels gasoil and gasoline, and cooking gas. Consumption of refined fuels, a proxy for oil demand in Asia’s third largest economy, totalled 18.77 million tonnes in the month, preliminary data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed on Wednesday. Diesel consumption, which accounts for about two-fifths of India’s overall refined fuel demand, reversed the declining trend of the previous three months and rose by 8.8 per cent to 7.55 million tonnes in November from a year earlier, also its highest rate since January 2018, the data showed. Although fuel consumption normally reflects industrial activity in India, industry officials linked the annual increase in November to a low base last year, when sales of the fuel plunged during the month due to the late falling of festivals. “During festival season road and other infrastructure related construction work temporarily comes to a halt, and also movement of transportation vehicles – mainly trucks – get restricted,” an official at one of the state refiners told Reuters. “Last year festival season was in November when diesel sales growth was negative while this year festivals were in October, so we are seeing high growth in November,” he added. For most of this fiscal year beginning April, India’s diesel sales have remained subdued due to various factors including a prolonged monsoon season and softening industrial activity. Analysts expect the trend to continue until the second half of 2020. Between April and November, diesel consumption grew by about 1 per cent from the same period a year ago, the data showed. For an explainer on India’s slowing diesel demand double click Sales of gasoline, or petrol, rose 9 per cent from a year earlier to 2.53 million tonnes. Cooking gas or liquefied petroleum gas (LPG) sales increased 23.4 per cent to 2.27 million tonnes and sales of naphtha rose 2.5 per cent to 1.25 million tonnes in November. Sales of bitumen, used for making roads, were 12 per cent higher, while fuel oil use dipped 2 per cent in November, the data showed.
Goa: Natural gas pipeline station on the anvil at Marcaim
The government will acquire 2,228 sqm of land at Marcaim village in Ponda for Rs 47 lakh for the construction of the city gate station number 2 as part of the gas pipeline project. A cabinet decision in this regard was taken on Wednesday and was announced by chief minister Pramod Sawant after the meeting. As decided by the cabinet, the compensation will be paid in accordance with the policy on procurement of land under the Right to Fair Compensation and Transparency in land acquisition, rehabilitation and resettlement Act, 2013. An official said a feasibility study showed that the proposed land was fallow and there was no plantation within the area. The land will be handed over to Goa Natural Gas Pvt Ltd, and the landowners from whom it has been procured, will be compensated.