Rajasthan: Boost for hydrocarbon exploration as companies can take land on lease
In a boost to hydrocarbon exploration in the state, land owners can now lease their plot for 15 years without having to go for land conversion. They will have to only inform the tehsildar. Earlier, companies in the hydrocarbon sector had to acquire the land from the owners hampering the speed of exploration. Addressing a review meeting of the petroleum department on Tuesday, additional chief secretary Subodh Agarwal said the norms were changed by the revenue department to fast-track exploration of hydrocarbon resources in the state. Rajasthan contributes 22% of the crude oil produced in the country while Bombay High accounts for 40%. About 1.22 lakh barrels of oil and 4-5 million cubic metre gas are produced in the state. Agarwal said that 14 petroleum exploration leases and 13 mining leases have been awarded in the state which will add further depth to the sector in the state. I n the financial year 2020-21, the royalty revenue from the petroleum production reached to Rs 1904.79 crore against Rs 3320.10 crore in 2019-20.
Rajasthan State Gas to participate in PNGRB bids for 9 districts
Rajasthan State Gas Limited (RSGL) will participate in the bidding for piped gas distribution lines in nine districts of the state. Additional Chief Secretary and RSGL Chairman of RSGL Subodh Agarwal said that the Petroleum and Natural Gas Regulatory Board (PNGRB) is soon going to open bidding process for domestic gas distribution through pipelines to many cities of the country, including Rajasthan. He said that at present, different institutions are working in 19 districts of the state for distribution of gas through pipe lines. Coordination and progress from these institutions will be reviewed at the state level so that PNG work can be given momentum, he added. He said that RSGL is doing the work of distribution of gas pipes in Kota city and Gwalior and Sheopur in Madhya Pradesh. He said that there will be bidding by PNGRB for Bikaner and Churu, Jhunjhunu, Sikar, Nagaur, Dausa, Karauli, Sawai Madhopur and Tonk in Rajasthan in which the RSGL will participate. He informed that the domestic gas distribution from the pipe line is cheap, 24 hours of gas availability and booking will get rid of the hassle. Agarwal said that the gas delivered from the pipe line is 42 per cent cheaper than the domestic gas cylinder. He said that the work of domestic gas distribution from pipeline in Kota is going on at fast pace.
COVID to shave-off 20-25 per cent of auto fuel demand in April
India’s second wave of coronavirus infections and the resultant city and state-specific restrictions may shave-off about 20-25 per cent of auto fuel demand in April, consultancy Wood Mackenzie said on Thursday and estimated a modest impact on oil demand in the absence of a full nationwide lockdown. India’s COVID crisis shows no sign of slowing. The country has reported new cases above 3 lakh per day for two weeks straight, though experts think the true number is likely to be far higher, it said. “Yet despite increasing calls for the government to impose a nationwide lockdown to reduce the rate of infection, Prime Minister Narendra Modi has so far resisted, citing the economic impact on an already suffering population.” Compounding this terrible human tragedy, the crisis is also impacting India’s near-term economic performance as travel is curtailed and local restrictions enforced. “This is inevitably impacting the country’s energy markets, with all sectors being impacted. However, without a nationwide lockdown along the lines of that seen in Q2 (April-June) 2020, energy demand has so far proven relatively resilient, despite the more severe levels of infection compared to 12 months ago,” Wood Mackenzie said in a report. It trimmed India’s GDP forecast to 9 per cent year-on-year in 2021 from 9.9 per cent previously due to the second peak of COVID cases. But there is further downside risk if lockdown measures and restrictions on movement are tightened further. “While current localised restrictions appear inadequate in comparison to the severity of the pandemic, tighter restrictions come with expectations of additional financial support from the government; India’s stimulus measures have been modest since the start of the pandemic, totalling 9 per cent of GDP. If a nationwide lockdown is enforced, the government will need to provide much more,” it said. With the domestic economy gripped by the pandemic and the looming risk of a nationwide lockdown, external demand and export-orientated industries are now critical for the economic recovery in the short term. During last year’s lockdown, India’s oil demand fell by 1.2 million barrels per day in April-June, equal to about a 25 per cent drop. Road traffic was particularly impacted, recording a peak decline of some 45 per cent during April 2020. Oil product consumption almost halved in April 2020 with petrol demand slumping by a record 60.5 per cent and diesel by 55.6 per cent. “We’ve not seen anything this severe yet in the current crisis. And while many states and territories have implemented restrictions in movement, without a full nationwide lockdown, we expect the impact on oil demand to be more modest: road traffic oil demand in April 2021 is estimated to be down by about 20-25 per cent,” the report said. Ironically, it is the scale of the current crisis that is offering some support to oil demand. “Responding to such large numbers of infections is resulting in a significant increase in personal mobility and transportation of medical equipment and supplies,” it said, adding under current restrictions much of economic activity is still permitted, particularly within the industrial sector. This will encourage a recovery in mobility, particularly aviation as domestic flight numbers follow last year’s pattern of resumption. “As such, we expect demand losses to be concentrated in Q2 (April-June) at around 200,000 barrels per day with gasoline (petrol), diesel and jet fuel combined accounting for most of this contraction,” it said. But if lockdown is extended for the entire month of May in those states with the most severe current restrictions, then loss of oil demand for Q2 2021 in the range of 300,000 bpd to 500,000 bpd. “Should a nationwide lockdown be imposed then losses will inevitably increase further.” Sale of petrol — used in cars and motorcycles — fell to 2.14 million tonnes in April, the lowest since August, according to the preliminary data of state-owned fuel retailers. Petrol sale in April was 6.3 per cent lower than March 2021 and 4.1 per cent lower than April 2019. Petrol sales in April 2020 was 872,000 tonnes. Demand for diesel — the most used fuel in the country — fell to 5.9 million tonnes in April 2021, down 1.7 per cent from previous month and 9.9 per cent from April 2019. Diesel sales in April 2020 was 2.84 million tonnes. With airlines continuing to operate at less than capacity, jet fuel (ATF) sales in April was 377,000 tonnes, down 11.5 per cent over March 2021 and 39.1 per cent over April 2019. Jet fuel sales in April 2020 was 5,500 tonnes. Cooking gas LPG sales fell 3.3 per cent to 2.1 million tonnes in April 2021 when compared with the previous month. The sale was 11.6 per cent higher than 1.88 million tonnes in April 2019.