It’s time oil producers listened to consumers, says Pradhan as prices rebound
Amid a rebound in global crude prices and OPEC considering extending production cuts, petroleum minister Dharmendra Pradhan on Wednesday called for “reasonable and responsive” oil pricing, saying it is time the producers also listened to the consumers as the days of monopoly are over. For heft and to underline India’s position in the global energy architecture, Pradhan said the country’s share of total global primary energy demand will nearly double to 11% by 2040 on the back of strong economic growth and its energy consumption will rise at 3% annually till then — the fastest among major economies. India currently accounts for only 6% of the world’s primary energy consumption and the per capita consumption of energy is still a third of the global average. “But all that is changing rapidly,” he said, adding that despite the transition to renewables and other alternate energy sources, India’s oil demand would double and gas demand would treble by 2040. OPEC is currently debating whether to roll over the historic production cut of nearly 8% of daily global demand into 2021. Oil prices have over the past fortnight risen to their highest since March on hopes of OPEC extending the production cut deal and an early return of demand because of the success of Covid-19 vaccine candidates. Pradhan said India is in the midst of a major transformative shift in its energy sector to end energy poverty in India. “While doing so, our twin objectives are to enhance availability and affordability of clean fossil and green fuels and to reduce the carbon footprint through a healthy mix of all commercially viable energy sources,” he said. “Our Government is also committed to reducing the emissions’ intensity of the GDP by 33% to 35% from 2005 levels. We are consistently taking energy policy initiatives. We are developing next-generation infrastructure based on five guiding enablers of energy availability, accessibility, affordability, efficiency and sustainability to fight climate change and mitigate global uncertainties,” he said.
Haryana petrol pumps to stay closed
Haryana Petroleum Dealer Welfare Association (HPDWA) has extended support to the farmers’ nationwide protest on Tuesday and decided to close all petrol stations in the state on December 8. The association has also formed a three-member committee to support farmers by opening fuel stations for farmers at Singhu and Tikri borders by filling free diesel in tractors of farmers marching to Delhi in protest for their demands. The decision was taken in a state-level meeting of HPDWA at Panipat on Sunday. Sanjeev Chaudhary, state president of HPDWA, said farmers had been protesting for more than a week on Delhi border. The association has decided to support farmers’ agitation and all pumps in Haryana will remain closed on December 8. He said the agitation had affected every sector and section of society.
Fuel prices hiked in international market due to US elections: Pradhan
Union Minister of Petroleum and Natural Gas, Dharmendra Pradhan on Sunday said there has been a rise in fuel prices in the international market because of the recent elections in America and other reasons. “There has been a rise in fuel prices in the international market because of recent elections in America and other reasons,” said Pradhan. “Recently, OPEC has decided to increase production. We expect the fuel prices to stabilise soon,” he added. Pradhan on Sunday interacted with officials of Indore Municipal Corporation, officials of the state unit of Indian Oil and several stakeholders from the industry. Had insightful discussions on the efforts of IMC in waste segregation & management to ensure a clean environment for better public health, he added. “Indore Municipal Corporation also came up with a presentation on setting up of waste-to-energy plants. Happy to share that IMC has consistently eliminated garbage dumps, ensured 100 per cent household-waste segregation and converted waste to usable products, like compost and fuel,” Pradhan tweeted. “Visited the 20 tonnes per day capacity Choithram and 15 tonnes per day capacity Kabitkhedi bio-CNG plants in Indore. 700 kg bio-CNG is produced daily from the Choithram bio-methanation plant utilising wet waste as feedstock from the nearby vegetable market,” he added. The Kabitkhedi plant, a unique initiative of the IMC produces 500 kg of bio-CNG and 1.5 tons of manure daily from municipal solid waste. bio-CNG produced from both these plants are utilised for agriculture and horticulture purposes as well as running public transport buses, Pradhan stated. Also, visited the 500 ton per day trenching ground dry waste segregation facility at Devgarudia. The waste segregation facility at the upcoming waste-to-CBG plant at the trenching ground is at par with global standards,” Pradhan tweeted. These green initiatives being taken under the SATAT scheme will promote a circular economy, facilitate huge health dividends, provide impetus to waste-to-wealth creation, create employment opportunities along with rural and urban development and also empower women, he added.
OPEC’s decision would stabilise fuel prices: Dharmendra Pradhan
Union minister Dharmendra Pradhan on Sunday expressed hope that fuel prices would stabilise as the Organization of the Petroleum Exporting Countries (OPEC) has decided to increase the crude oil production. The Petroleum minister was talking to reporters here. “Two days ago, OPEC decided to increase the crude oil production by 5 lakh barrels a day. We are going to benefit out of it. We are of the view that the (fuel) price would stabilise,” he said. Pradhan’s statement comes in the wake of a steep hike in the prices of petrol and diesel recently. The Congress has demanded that the hike in the fuel prices should be rolled back for public good, saying that the crude oil prices have tumbled in the international market. “When the price of crude oil shoots up in the international market, it sparks fuel price rise in India,” the minister said. The recent presidential elections in the US and internal problems in some countries have triggered fuel price rise, he added. Pradhan, who has been on a two-day visit to Madhya Pradesh since Saturday along with his family, visited the garbage processing plants in Indore, which got the ‘cleanest city’ tag for the fourth time in a row earlier this year. He praised the city municipal corporation for the processing plants, which includes units that make compressed biogas (CBG) from wet waste. “Oil marketing companies are guaranteeing long-term purchase of CBG at the rate of Rs 46 per kg. Making CBG from wet waste can be a successful enterprise model across the country,” the minister said. He said the Petroleum and Natural Gas Ministry has taken up the task of setting up 5,000 CBG plants in urban areas of the country. In rural areas also, there is a huge potential for creating CBG from agricultural waste and other things, he added. Pradhan said Avantika Gas Limited (AGL) would massively expand its consumer base of CNG and Piped Natural Gas (PNG) in Indore next year. Indore-based AGL is a joint venture of GAIL India and Hindustan Petroleum Corporation Limited (HPCL). “During my maiden visit to Indore in 2015, the AGL used to supply cooking gas to 5,000 household through pipelines. This number has increased to 55,000 now,” he added.
Iran prepares to raise oil exports if sanctions eased: Report
Iran has instructed its oil ministry to prepare installations for production and sale of crude oil at full capacity within three months, state media said on Sunday, ahead of a possible easing of US sanctions after President-elect Joe Biden takes office. They quoted President Hassan Rouhani as saying that Iran exported more than two million barrels a day before US President Trump exited the 2015 nuclear deal with six powers in 2018 and reimposed sanctions that have hit Iran’s economy hard by sharply cutting its vital oil exports. Biden, who will take office on January 20, has said that he would return to the pact and would lift sanctions if Tehran returned to “strict compliance with the nuclear deal”. Rouhani said on Sunday that his country was preparing for a speedy increase of its oil production, the official IRNA news agency reported. “The oil ministry will take all the necessary steps to prepare the oil industry’s facilities to produce and sell — proportionate to the available capacity — within the next three months,” IRNA quoted Rouhani as saying. It is estimated that Iran exports less than 300,000 barrels of oil per day (bpd), compared to a peak of 2.8 million bpd in 2018.
Viva Energy signs up partners to develop LNG terminal at Geelong
Australia’s Viva Energy said on Monday it signed initial agreements with two consortiums that showed interest in supporting the conversion of its Geelong refinery in Victoria into a liquefied natural gas (LNG) regasification terminal. One of the consortiums is comprised of ENGIE SA’s local unit and Japan’s Mitsui & Co, while the other is made of Dutch energy and commodities trader Vitol and energy storage provider VTTI, Viva Energy said. The memorandums of understanding with the consortiums signal an important step for Viva as it looks to get its refinery business back on its feet after a slump in demand owing to the pandemic hit the business’ bottom line and sparked threats of closures. The development of the terminal for LNG regasification – a process to convert LNG back into its gaseous state – marks a transition to clean energy development as calls for reduction in emission levels rise in the wake of global climate change. Viva will also work with its partners on additional clean energy projects along the Geelong site, including solar, gas powered generation, hydrogen manufacturing, and other renewable and lower carbon energy projects. The memorandums of understanding also provide a potential demand from the partners for the gas processed through the facility. A final investment decision on the project can be expected by mid-2022, with gas supply in 2024, it said in a statement.
Madhya Pradesh: Maximise piped supply of natural gas, says Dharmendra Pradhan
Union minister for petroleum and natural gas Dharmendra Pradhan on Sunday instructed officials to scale up piped supply of natural gas in and around Indore with help of Aavantika Gas Limited (AGL). The minister held discussions with officials of AGL, district administration and Indore Municipal Corporation (IMC) to double the number of domestic connections of piped supply of natural gas in Indore by 2021. “We aim to increase network of piped natural gas (PNG) in Indore. In the year 2015, there were only 5,000 connections, which have now gone up to over 55,000,” said Pradhan, while speaking to the media. The minister also held discussions with IMC officials to take stock of its bio-CNG projects and the waste management model of Indore. “We are working on the concept of waste to wealth to convert Indore’s waste management model into an economic activity,” he said, adding, “The Union petroleum ministry is giving a guaranteed purchase of compressed biogas at a price of Rs46 per kilogram.” He said that the ministry is also working on producing biogas out of farming waste like parali in rural areas. Pradhan said that Indore can be a role model in generating bio-CNG and mentioned that Indore’s bio-methanation model can be a role model for the country. “It can be a successful trade, which can generate more employment,” he said. Commenting on the soaring fuel prices, the minister said that the recent elections in the US and internal issues in some countries have led to surge in fuel prices. “The Organisation of the Petroleum Exporting Countries (Opec) has decided to increase crude oil production by 500,000 barrels per day, and we can expect a decline in the prices soon,”Pradhan said. The Union minister held discussions with the district administration and IMC officials and instructed them to check about the possibility of having a system for collection of used cooking oil in Indore and produce biofuel from it. He informed that the experiment was successful in cities such as Nagpur, and the same can be replicated in Indore. IMC will make a documentary on its solid waste management model for spreading awareness on sustainable practices. An instruction in this regard was issued by the Union minister.