Shell to join clean hydrogen project in Norway
Shell will join a project in Norway to produce hydrogen from natural gas while capturing the emissions, Aker Clean Hydrogen (ACH) said on Monday. Countries across Europe are looking at ways to produce emissions-free hydrogen to help reduce carbon emissions and avert global warming. Clean hydrogen can be produced from water using electricity generated by renewable energy sources. When produced from natural gas, it is considered clean when the associated carbon dioxide (CO2) emissions are captured and stored permanently. Today, most of the associated CO2 emissions are released into the atmosphere. Partners ACH, Shell and Norwegian infrastructure investor CapeOmega have signed a memorandum of understanding (MoU) to build a large-scale hydrogen production facility at Aukra in western Norway, ACH said. The clean hydrogen could be used to decarbonise local industries, for emissions-free fuel for vehicles and ships, or for export to Europe, ACH said. Natural gas for the project would be supplied from the Nyhamna gas processing plant nearby, it added. Shell serves as a technical service provider at the Nyhamna plant, which processes natural gas its Ormen Lange field and Equinor’s Aasta Hansteen field off Norway. The Anglo-Dutch energy firm, which aims to reduce its greenhouse gas emissions to net zero by 2050, is also a partner in a joint venture project with Equinor and TotalEnergies to build CO2 storage off Norway.
India’s first bio-CNG tractor aims at saving billions of rupees in fuel costs
Rawmatt Industries Private LTD is an organization that carries out a wide range of business activities in Nagpur. As part of its efforts to reduce pollution, it offers bio-CNG and other forms of natural gas. Due to its cost-effectiveness, CNG’s popularity has been growing multifold in recent years. Moreover, CNG comes with a reputation as one of the cleanest fuels in the market today due to the lower carbon content it burns, thereby making it cleaner than petroleum-based products. Furthermore, it produces the fewest emissions among all other fuels and contains significantly fewer pollutants than gasoline. India’s first CNG tractor was unveiled by Shri. Nitin Gadkari Ji at the Motilal Nehru Palace in New Delhi on 12th February 2021. According to Road Transport and Highway Minister, farmers will be able to save more than $1 trillion on fuel costs annually, which will improve their livelihoods. Narendra Singh Tomar, Dharmendra Pradhan, Parshottam Rupala, and General V.K. Singh were also in attendance at the unveiling ceremony. The biogas used to power the revolutionary tractors are produced in the absence of oxygen and comprise different gases, resulting from the breakdown of agricultural wastes, manure, municipal wastes, plant matter, sewage, green or food waste. When this mixture is further purified and processed, it is referred to as bio-compressed natural gas (bio-CNG). In India, bio-CNG is poised to take on the more widely used CNG and liquid petroleum gas (LPG). Additionally, bio-CNG can be applied in a variety of commercial (hotels, canteens, bakeries, and resorts), industrial (glass and ceramic, metal, cement, and textile processes), and automotive (public transport and personal vehicles) applications. Kaustubh Gupta, CEO, Rawmatt Industries said, “It is our objective to make India’s air free of fuel-related pollutants and make way for a greener, cleaner, and healthier future. And also to strengthen India’s CNG program cleaner, and healthier future.” Kaustubh Gupta, the current Advisor to MRN Group for the installation of bio-CNG plants, is an experienced CEO with years of experience behind him in the oil and energy industry. Son of Padmesh Gupta of Gupta Coal, the second generation entrepreneur holds a Bachelor’s degree in Business Administration, Management and Operations from James Cook University, along with expertise in business development. Furthermore, he also engages in converting farm waste to bio-CNG along with Nagpur Municipal Corporation (NMC). Rawmatt Industries PVT. LTD. believes integrity and innovation go hand in hand, especially in today’s dynamic and ever-changing world. The ultimate goal is to provide customers with the best possible service and constantly strive to improve the business by reviewing client feedback and implementing the latest technology. Rawmatt Industries PVT. LTD. undertakes initiatives to help farmers buy bio-CNG tractors by using Paryavaran cards. In exchange for paddy straw submissions, payment is credited to these Paryavaran cards which can be further used for cash withdrawal. This further helps with generating real-time data on actual paddy generated in order to facilitate the initiative on a nationwide level.
Centre seeks legal opinion to let BPCL sell subsidised LPG after stake sale
A two-decade-old LPG supply order restricting supply of domestically produced LPG to only state-owned oil companies has stymied plans to allow Bharat Petroleum Corporation Ltd (BPCL) to continue selling subsidised cooking gas (LPG) after its privatisation. A legal opinion has now been sought to ascertain if privatised BPCL will be eligible to receive liquefied petroleum gas (LPG) produced by companies such as ONGC and GAIL, two government officials with knowledge of the development said. Currently, BPCL has more than 84 million domestic LPG customers, including 21 million Ujjwala customers. The company does not produce enough LPG at its refineries to be able to cater to the requirement of all these. It, like other oil marketing companies, buys LPG from state-owned firms like Oil and Natural Gas Corporation (ONGC) and GAIL (India) Ltd as well as private companies such as Reliance Industries Ltd. The Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2020, known as LPG Control Order of 2000, restricts sale of indigenously produced cooking gas only to state-owned oil marketing companies — Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and BPCL. It restricts supply of LPG produced by firms such as ONGC and GAIL to private firms. Private LPG retailers, called parallel marketeers, have to use imported gas for supplying to customers. The 2000 Control Order was issued as the nation is short in LPG production. Once BPCL is privatised, the 2000 order will bar ONGC and GAIL from selling LPG to BPCL, the officials said. “Post divestment of the government’s stake in BPCL, it shall cease to be a government oil company in terms of clause 2(g) of LPG Control Order of 2000,” an official said. With no access to indigenously produced LPG, BPCL won’t be able to serve its customers and it would not be possible to shift the customers to IOC and HPCL as LPG cylinder equipment at customer end will need to be changed. Also, IOC and HPCL may not have the required infrastructure to cater to such a large customer base, the officials said. As a way out, it is being considered to continue to treat BPCL as a government company for the purpose of the 2000 Control Order for three years, the officials said adding that a legal opinion has been sought to ascertain if such a move is tenable under the law. The other alternative is to amend the LPG Control Order itself to allow private firms to access indigenously produced LPG. This would open up LPG retailing to other private firms. Officials said law ministry opinion has been sought to determine if the term government oil company in the LPG Control Order necessary requires the company to be a government company and if BPCL post privatisation can be notified as a government oil company. To interpret the term ‘government company’, the opinion of the Ministry of Corporate Affairs (MCA) as well as the Ministry of Consumer Affairs (MoCA) has been sought, they said. MCA because it is the administrative ministry for purposes of administration of the Companies Act, 2013 and MoCA because it is the administrative ministry/department for the purposes of administration of Essential Commodities Act, 1955, under which the LPG Control Order of 2000 was issued. Officials said the new owner of BPCL will after three years of takeover get a right to decide on retaining the business of selling subsidised LPG. The firm’s cooking gas LPG customers will be transferred to IOC and HPCL in case the new owner does not want to continue with such a business, the officials added. The government gives 12 cooking gas (LPG) cylinders of 14.2-kg each to households in a year at a subsidised rate. There is no subsidy being paid in most parts of the country but a subsidy will be directly paid into the bank accounts of the users in case prices rise steeply. The government is selling its entire 53 per cent stake along with management control in BPCL. The new owner will get 15.33 per cent of India’s oil refining capacity and 22 per cent of the fuel marketing share. It also owns 18,652 petrol pumps, 6,166 LPG distributor agencies and 61 out of 260 aviation fuel stations in the country.
Import of diesel through pipeline helps NOC to save Rs 4 billion in transportation cost
The Nepal Oil Corporation (NOC) has saved around Rs 4 billion after bringing the Motihari-Amlekhgunj Petroleum Pipeline into operation. The corporation has saved Rs 3.24 billion on transportation costs and Rs 753.4 million on temperature and technical losses when it started importing diesel through pipeline from the Indian Oil Corporation (IOC). Managing Director of Nepal Oil Corporation, Surendra Kumar Paudel, said that the petroleum pipeline has not only managed the supply of diesel but also saved a large amount of money. “The pipeline has saved billions of rupees,” said Poudel. “It has saved money on transportation, temperature and technical losses.” It has made the supply of diesel much easier. The NOC started bringing diesel through pipes from September 10, 2019. The project has been constructed at the cost of Rs 4.40 billion. While India provided a grant of Rs 3.20 billion, Nepal invested the remaining Rs 1.20 billion. The project is developed by the IOC. Sushil Bhattarai, Deputy Managing Director at NOC, said that although the pipeline was built the IOC did not charge any extra amount to them. “The IOC has not charged any extra amount for the pipeline,” Bhattarai said. “It has benefited the corporation a lot.” The investment for the construction of the pipeline will be raised only from diesel import in a period of two years. It has saved Rs 4 billion in 22 months. Pradip Yadav, chief of the Nepal Oil Corporation’s provincial office in Amalekhgunj, Bara said that 1.38 billion kilolitres of diesel was imported through the pipe. “250 kiloliters of diesel is being imported per hour,” Yadav said. “Along with expenses, it has helped us to save our time.” The diesel is placed in the vertical tank. After that, the density temperature, quality is checked and loaded on the tanker and sent to other depots. The NOC has stated that the amount to be paid to the tanker operators due to technical loss and temperature has come down to zero after it started importing diesel from the pipes. “The loss has come down to zero after bringing diesel from the pipeline,” said Yadav, who is also the head of the pipeline project. Transportation fares have been saved and pollution has been reduced, quantity and quality have been ensured. Yadav said that technical losses have been reduced and leakage during transportation has been stopped. It has become easier for the corporation to supply and distribute petroleum products as per the needs of the market and the demand of the consumers. The problem of high cost of transportation by tanker, environmental pollution, traffic jam, deterioration of roads, general obstruction in transportation and shortage of petroleum products in the market have been curbed. A saving of Rs 3.24 billion has been made for transportation. After the construction of the pipeline, the corporation has imported 1.38 billion kiloliters of diesel through the pipeline. If that amount had to be transported by tankers, 69,025 tankers with capacity to carry 20,000 liters of oil each would be required. A tanker has to be paid Rs 15,000 for bringing 20,000 liters of oil from Raxaul to Amalekhgunj. The fare for bringing this amount of oil from Raxaul would cost Rs 207 million.
Government looks to scrap customs duty relief, exemptions on 97 products
From Atlantic salmon and hazelnuts to durians and certain sweet biscuits, the government has proposed to withdraw customs duty relief and exemptions for 97 products imported into the country. While the move is expected to push up the cost, it may also encourage domestic manufacturing of several items. The step follows an announcement in the Budget with finance minister Nirmala Sitharaman articulating that certain outdated customs exemptions are proposed to be done away with as part of an exercise to streamline the structure. Now, the Central Board of Indirect Taxes and Customs (CBIC) has released the list for public consultation with feedback to be given over the next one month. “…last year, we started overhauling the customs duty structure, eliminating 80 outdated exemptions… I now propose to review more than 400 old exemptions this year. We will conduct this through extensive consultations, and from October 1, 2021, we will put in place a revised customs duty structure, free of distortions. I also propose that any new customs duty exemption henceforth will have validity up to the March 31, following two years from the date of its issue,” the finance minister had said in her Budget speech. The list has a wide range of products, including some medicines and basic drugs, contraceptives, oil seeds, and seeds of flowers and vegetables and upholstery fabrics of certain types. Several types of machinery and components used by sectors such as textiles, power, oil & gas and electronics and telecom are also expected to see an impact as the relief to these products is proposed to be scrapped. The government has faced criticism for increasing tariffs over the last few years but in several cases, officials have argued that there is little justification for relief.
United States became fourth-largest crude oil supplier to India in 2020: Report
The United States became the fourth-largest supplier of crude oil to India in 2020, according to BP’s latest report. The US supplied 10.7 million tonnes of crude oil to India in 2020, behind Iraq’s 47 million tonnes, Saudi Arabia’s 38 million tonnes, and UAE’s 22 million tonnes, said the BP’s Statistical Review of World Energy. The US supply accounted for about 5% of India’s total imports of 204 million tonnes in the year, a big jump for the country which had started exporting oil to India in 2017. It also turned out to be the fourth-largest natural gas supplier to India in 2020. Indian refiners have been trying to diversify their supply base to reduce dependence on West Asia, which still accounts for the lion’s share. West Asian countries made up 64% of India’s imports while the two American continents accounted for 18%. India imported 8 million tonnes of crude oil from Mexico and one million tonnes from Canada. Kuwait supplied 9.9 million tonnes. Iraq has been India’s top supplier for the past few years, staying ahead of Saudi Arabia, which has been producing less than its capacity to meet OPEC supply curb commitments. Saudi Arabia was the biggest supplier of crude oil to China, the biggest oil importer in the world in 2020. China imported 557 million tonnes, with Saudi Arabia (85 million tonnes), Russia (83), Iraq (60), South and Central America (72) and West Africa (72) as its main suppliers. The US supplied 20 million tonnes of crude oil to China, almost double that of India. India imported nearly 36 billion cubic metres (bcm) of liquefied natural gas (LNG) in 2020, with Qatar (14 bcm), UAE (5), Nigeria (4), US (3) and Angola (3) being the top suppliers. China imported 94 bcm of LNG during the year, with Australia (41), Malaysia (8) and Indonesia (7) as top suppliers. Japan remained the top LNG importer in the world, with imports of 102 bcm in 2020. Global LNG trade rose 0.6% year-on-year in 2020.
Can BPCL get domestically produced LPG after privatisation?
A two-decade-old LPG supply order restricting supply of domestically produced LPG to only state-owned oil companies has stymied plans to allow Bharat Petroleum Corporation Ltd (BPCL) to continue selling subsidised cooking gas (LPG) after its privatisation. A legal opinion has now been sought to ascertain if privatised BPCL will be eligible to receive liquefied petroleum gas (LPG) produced by companies such as ONGC and GAIL, two government officials with knowledge of the development said. Currently, BPCL has more than 8.4 crore domestic LPG customers, including 2.1 crore Ujjwala customers. The company does not produce enough LPG at its refineries to be able to cater to the requirement of all these. It, like other oil marketing companies, buys LPG from state-owned firms like Oil and Natural Gas Corporation (ONGC) and GAIL (India) Ltd as well as private companies such as Reliance Industries Ltd. The Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2020, known as LPG Control Order of 2000, restricts sale of indigenously produced cooking gas only to state-owned oil marketing companies — Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and BPCL. It restricts supply of LPG produced by firms such as ONGC and GAIL to private firms. Private LPG retailers, called parallel marketeers, have to use imported gas for supplying to customers. The 2000 Control Order was issued as the nation is short in LPG production. Once BPCL is privatised, the 2000 order will bar ONGC and GAIL from selling LPG to BPCL, the officials said. “Post divestment of the government’s stake in BPCL, it shall cease to be a government oil company in terms of clause 2(g) of LPG Control Order of 2000,” an official said. With no access to indigenously produced LPG, BPCL won’t be able to serve its customers and it would not be possible to shift the customers to IOC and HPCL as LPG cylinder equipment at customer end will need to be changed. Also, IOC and HPCL may not have the required infrastructure to cater to such a large customer base, the officials said. As a way out, it is being considered to continue to treat BPCL as a government company for the purpose of the 2000 Control Order for three years, the officials said adding that a legal opinion has been sought to ascertain if such a move is tenable under the law. The other alternative is to amend the LPG Control Order itself to allow private firms to access indigenously produced LPG. This would open up LPG retailing to other private firms. Officials said law ministry opinion has been sought to determine if the term government oil company in the LPG Control Order necessary requires the company to be a government company and if BPCL post privatisation can be notified as a government oil company. To interpret the term ‘government company’, the opinion of the Ministry of Corporate Affairs (MCA) as well as the Ministry of Consumer Affairs (MoCA) has been sought, they said. MCA because it is the administrative ministry for purposes of administration of the Companies Act, 2013 and MoCA because it is the administrative ministry/department for the purposes of administration of Essential Commodities Act, 1955, under which the LPG Control Order of 2000 was issued. Officials said the new owner of BPCL will after three years of takeover get a right to decide on retaining the business of selling subsidised LPG. The firm’s cooking gas LPG customers will be transferred to IOC and HPCL in case the new owner does not want to continue with such a business, the officials added. The government gives 12 cooking gas (LPG) cylinders of 14.2-kg each to households in a year at a subsidised rate. There is no subsidy being paid in most parts of the country but a subsidy will be directly paid into the bank accounts of the users in case prices rise steeply. The government is selling its entire 53 per cent stake along with management control in BPCL. The new owner will get 15.33 per cent of India’s oil refining capacity and 22 per cent of the fuel marketing share. It also owns 18,652 petrol pumps, 6,166 LPG distributor agencies and 61 out of 260 aviation fuel stations in the country.
Baidyanath to start country’s first commercial LNG filling station
Makers of Ayurvedic medicines from the city, Shree Baidyanath, has diversified into liquified natural gas (LNG) sale. The company will be inaugurating the country’s first commercial LNG filling station in the city on Sunday. Located at the outer ring road towards Dighori, it has a capacity of 23 tons and will be catering to LNG driven vehicles along the national highways around Nagpur. At present, the only dispensation station is at Dahej in Gujarat. “This will be the first-ever in the country to operate on a commercial basis,” said Subbarao Vaddadi, director of B-LNG, the fuel division of Baidyanath group. “The company’s decision was following government’s decision to invest Rs10,000 crore in the LNG dispensing stations across the country,” he said. Nitin Gadkari, union transport minister and also the MP for Nagpur, who has always been pressing for alternate fuel, took the initiative to start the first set-up in the city. As the minister was looking for local companies to come forward, the Baidyanath group agreed and invested Rs 8 crore in the project. “The station will be operational from Sunday. It will take 60 vehicles a day for the pump to operate feasibly,” said Vaddadi. For this, Baidyanath has plans to convert 120 vehicles which include buses and trucks into LNG. “This will entail an investment Rs10 lakh per vehicle,” said Vaddadi. At present, it would start will 12 vehicles, he said. “LNG is not only being projected as a cheaper alternative to diesel but rates offered at the Nagpur station will be lower than the current market price of the fuel elsewhere. This is because the supply of a year has been booked at an advance rate due to which the fuel will be available at Rs 62 a liter as against Rs 72 in the market.”
Rise in petrol prices agitating people: Road transport minister Gadkari
Road transport minister Nitin Gadkari inaugurated the country’s first commercial liquified natural gas (LNG) filling station in Nagpur on Sunday and said more use of alternate fuels such as LNG, CNG or ethanol would bring respite from surging petrol prices, which are now “agitating” people. Gadkari said the use of ethanol as vehicle fuel would help save at least Rs 20 per litre despite its lower calorific value compared to petrol. His ministry is likely to announce a policy for flex-fuel engines soon, which will encourage automobile manufacturers to produce them. These engines can run on more than one fuel and also a mixture of fuels. The minister said indigenous fuels such as ethanol, methanol and bio-CNG would give tough competition to imported crude oil and that’s the only way to get the best price for consumers. Gadkari said he had urged the government to privatise the petroleum and natural gas sector, which has already been opened up. Last year, the petroleum ministry simplified guidelines for authorisation for bulk and retail marketing of petrol and diesel. This was done to increase private sector participation in the marketing of petrol and diesel. “Now, we have invited all private companies, including PSUs, in the field. Even you can import LNG,” he said, adding the clean fuel has a great future in the country. LNG is emerging as the most preferred fuel for long-haul transport across the globe. “In our economy, we are spending Rs 8 lakh crore for the import of petrol, diesel and petroleum products which is a big challenge… Being a nationalist I want that our import should reduce and export must increase.” Highlighting the economic advantage of LNG, the minister said data showed that the average cost of conversion of a conventional truck engine to an LNG engine was Rs 10 lakh. Trucks run around 98,000km in a year, so after conversion into LNG there will be savings of Rs 11 lakh per vehicle in 9-10 months. “So, the cost of conversion can be easily recovered,” he said