Work at oil & gas fields hit, fuel crisis looms
The north-east could be staring at a fuel crisis as the public agitation against changes in the Citizenship Act and curfew in 10 districts of Assam has affected functioning of oil and gas fields, refineries as well as transportation of petro products. Operations at these facilities had to be halted or curtailed either because employees were unable to report for work or the output could not be wheeled out due to disruption in movement of truck-tankers, the main mode of transportation, oil company executives said. Executives from IndianOil claimed there was no disruption in supply of LPG refills to households and there were adequate stocks with distributors. Petrol pumps too were well stocked. Crude production from fields operated by Oil India Ltd has fallen by 20% and the company had to stop LPG production in the absence of offtake by IndianOil.
CAB protests: Oil India appeals to people in Assam to allow day-to-day operations
Protesters opposing the Citizenship Amendment Act, a new law that grants Indian citizenship based on religion and excludes Muslims, throw stones at police at Santragachi in Howrah district of West Bengal state, India, Saturday, Dec.14, 2019.Photo)GUWAHATI: Amid fervent protests in Assam over the Citizenship Amendment Act, PSU major Oil India Limited (OIL) issued an appeal to the people of the state on Saturday to allow it to carry out day-to-day operations, which the firm said has been “severely impacted”. The appeal issued in leading English daily of the state, the Assam Tribune, cautioned that the “total disruption of OIL’s operational activities will adversely impact the economy of the State and the lives of the common people”. Besides loss of production of crude oil and natural gas, the stoppage of OIL’s operations has badly hit production of LPG and supply of crude oil to refineries and consumers of natural gas like BVFCL, BCPL, NEEPCO, AGCL and APL among others, it said. Assam has been facing a shortage of fuel supply due to the ongoing protests which have also affected the daily lives of people in Guwahati and several other districts of the state. On Friday, long queues were seen at the petrol pumps that were functioning, while others remained shut. “I saw many petrol pumps that were operating today did not have enough fuel to sell. I purchased 1L for my bike, while many others had queued up with bottles to buy fuel,” said Tutu Ali, a resident of Hatigaon area here. The situation may worsen if the fuel stock is not replenished. “The ongoing agitation in the state has severely impacted day-to-day operations of Oil India Limited,” the crude oil major said. “This will have an adverse impact on the power situation in the state as well as lead to shortage of essential items like LPG, which will impact the common people the most,” it added. “In the greater interest of the people of the state and the local economy, Oil India Limited makes an ardent appeal to the people of Assam to allow OIL to carry on with the day-to-day operations so that the company can ensure uninterrupted supply of crude oil, LPG and natural gas to the various industries based in Assam,” the appeal said. This is also to ensure that these industries in turn help the common people to have uninterrupted supply of essential amenities like LPG, electricity, petrol, diesel, kerosene and fertilisers, it added. The OIL, in its appeal, also said that it appreciates the present situation and the sentiments of the people. The curfew, imposed in Guwahati and Dibrugarh town amid violent protests against the amended Citizenship Act, was relaxed on Saturday for a few hours, officials said. The curfew was relaxed in Guwahati from 9 am to 4 pm and in Dibrugarh from 8 am to 2 pm, they said. Assam and other north-eastern states might face fuel supply issues if the agitation against the Citizenship Amendment Act continues for another week, as it has already led to shutdown of refineries, petrochemical plant and oil-producing facilities in the region. Indian Oil Corp (IOC) has been forced to shut down its Digboi refinery in Assam and is operating its Guwahati unit at minimal throughput, while OIL has been forced to shut LPG production and its crude oil production has dropped by 15-20 per cent, multiple sources at the state-owned companies said. Oil and Natural Gas Corp (ONGC) has seen up to 25 per cent drop in production, and gas supplies to Brahmaputra Cracker and Polymer Ltd were snapped, leading to shutting down of Assam gas cracker project.
Iran loses market share in India as its oil exports slump in November
Iran loses market share in India as its oil exports slump in November India’s oil imports from Iran dropped to a one-year-low in November, plunging by 41 percent from October due to the US sanctions, Reuters reported on Thursday, citing industry sources and ship-tracking data. Iran also dropped to sixth place on India’s largest oil suppliers list, from fourth in October, losing market share to fellow OPEC members Saudi Arabia, Iraq, the United Arab Emirates (UAE). In November, the month on which the US sanctions snapped back, India’s oil imports from Iran averaged 276,000 bpd (barrels per day), a 41-percent plunge from October, as India had cut back significantly allocations for November amid uncertainties over who might be getting a US waiver to continue importing oil from Iran. India did get a waiver, alongside seven other Iranian oil customers, including the single biggest, China. The waivers allow those eight countries to continue Iranian oil imports at reduced volumes until early May next year. India’s allowed imports from Iran are about 300,000 bpd. In November, Iran was only sixth among India’s top oil suppliers. Iraq and Saudi Arabia held the first two spots, while the UAE—sixth in October—moved up to third place, ousting Venezuela to fourth. Nigeria held onto its fifth position, but Iran moved from fourth in October to sixth in November, according to industry and ship-tracking data obtained by Reuters. India’s oil imports from Iran before the US sanctions returned were higher than last year’s low base for comparison, when India had cut back Iranian oil purchases over a dispute with Tehran that had snubbed Indian companies in developing a gas field in Iran. In April to November this year, India’s oil imports from Iran averaged 563,000 bpd, up by 32 percent compared to the same period last year, according to the data from industry sources reviewed by Reuters. In its imports of Iranian oil going forward, until the waivers last, India will have to rely on Iranian ships for the oil transportation because its own shipping firms and international companies are not risking crossing the US by carrying Iranian oil, and wound down Iranian crude shipment operations well in advance of the sanctions.
Centre to spend Rs 700 bn to spread gas pipelines across country: Pradhan
The Centre will initially spend Rs 700 billion to spread gas pipelines across the country, and is working out plans to expand gas network to Myanmar through Bangladesh, Union Minister said on Wednesday. The central government is promoting gas-based economy which needs a massive network of pipelines for transportation of natural gas to various corners of the country, he said. “In the first phase Rs 700 billion will be invested to spread across the country,” the petroleum minister said while addressing the 19th National Conference on Corrosion Control organised here. Pradhan said India is also planning to expand to Myanmar through Bangladesh. “Under this programme, pipelines are proposed to be constructed between Dhamra to Bangladesh and Siliguri to Bangladesh to export according to the requirement of the neighbouring nation,” he said. Turning to Odisha, Pradhan said the state needs a huge infrastructure to store, refine and transport the natural gas to the doorstep of the industry from Paradip, Dhamra and Gopalpur. He said the Centre is contemplating to promote port based industries in Odisha and also in other coastal states having natural ports. The eastern part of India, including Odisha, needs a high double-digit growth rate to be on a par with the Western region. In Odisha, around Rs 45 billion would be pumped in to construct 1700 kms of pipeline network in first phase. A strategic oil reserve project will also be launched in Chandikhol after acquiring land there, said Pradhan. The petroleum minister also announced that commercial production of polypropylene from Paradip refinery would commence this month (SERPL) is presently operating cross-country pipelines network of and refined products as well as LPG of 1570 kms length with 19.35 MMTPA capacity, he said. Under this region, India Oil is having the biggest and largest handling facility at Paradip, which is feeding four most important refineries – Paradip, Haladia, Barauni, and Bangaigaon. As future expansion plans under SERPL, laying works of 1212 km Paradip-Hyderabad pipeline with capacity of 4.5 MMTPA is in progress. Moreover, preconstruction works for 360 km long Paradip-Dhamra-Haladia LNG pipeline and 345 km long Paradip-Somanathpur-Haladia pipeline are also under progress, said the Petroleum Minister. Pradhan asked participating delegates, scientists and engineers to chalk out a roadmap for creation of better and advanced infrastructure for energy storage, refining and transportation with utilisation of corrosion free metals. The meet aims at analysing various industrial corrosion problems and provide a platform for interaction among industrialists, scientists, engineers and professionals. The three-day conference is being organised jointly by National Corrosion Council of India, Karaikudi, SERPL, Central Electrochemical Research Institute and (IOCL).