HPCL achieves maiden 100 TMT of Gas Sourcing & Marketing
In the changing landscape in Energy sector, Hindustan Petroleum Corporation (HPCL) is committed towards expansion of Infrastructure to enhance its presence in Gas Value Chain. In this direction, HPCL has achieved its maiden 100 TMT of Gas sourcing & marketing during the current financial year. In addition to marketing to various customers, HPCL is expanding its presence in Gas Value Chain by setting up exclusive City Gas Distribution network in 10 geographical areas. With this HPCL would be present in 20 geographical areas and 34 Districts. Hindustan Petroleum Corporation operates two major refineries producing a wide variety of petroleum fuels and Specialties. The Company also owns and operates the largest lube refinery in the country producing lube base oils of international standards.
Reliance’s green energy business taking shape, may contribute 10% of EBITDA in 5 yrs
Billionaire Mukesh Ambani’s Reliance Industries Ltd has made a wave of partnerships to give shape to its green energy business that spans solar, battery and hydrogen investments and could contribute almost 10 per cent of the company’s pre-tax profits in five years, a report said. The oil-to-retail conglomerate announced a wave of partnerships with REC, NexWafe, Sterling and Wilson, Stiesal and Ambri for total costs of $1.2 billion. “With these investments, Reliance has acquired the expertise and technology portfolio to start to build a fully integrated end-to-end renewables energy ecosystem through solar, batteries and hydrogen,” brokerage Bernstein said in a report. “Reliance will commercialise the acquired technologies and set up manufacturing plants in India.” Reliance is expected to continue to invest in technology such as fuel cells and key materials for the clean energy sector. “Based on our assumptions, we believe the new energy business could contribute almost 10 per cent of the company’s total EBITDA by FY’26 assuming all the factories are constructed and ramped up on the company’s timeline,” it said. “This will make Reliance a highly diversified conglomerate spanning E&P, refining, petrochemicals, clean energy, telecoms, retail and internet, although we suspect that the company will be split up given the inefficiency of such a corporate structure.” Reliance still needs the technology for fuel cell development, which the company is expected to acquire or license from one of the industry leaders such as Plug Power, Ballard, or Ceres. It may also need to invest in key suppliers for the sector such as manufacturers of cathode, separator and electrolyte for battery manufacturing and could also invest in MEA, catalysts and bipolar plates for fuel cell manufacturing. Reliance is targeting solar manufacturing of 100 GW and green hydrogen costs of $1 per kg by 2030. It will spend $10 billion on the new energy business over the next 3 years towards achieving these targets. “Based on capex for clean energy, we see a route to Reliance building a clean energy business, which could be worth $36 billion,” Bernstein said. Reliance is building a green energy business to supply the equipment India will need for its green energy revolution. Also, the firm has committed to being net carbon zero by 2035, which is earlier than any other energy company in the region. “While Reliance has the balance sheet and relationships, it lacks the technology and manufacturing know-how which will be essential for success. While it is easy to dismiss their ability to pull it off, Reliance has shown they can move into new verticals successfully. We think the same is true here,” the report said. Reliance at its shareholders’ meeting in June announced its plan to invest $10 billion in low carbon energy which marks another chapter in the transformation of the company. Over the next 3 years, Reliance will spend Rs 600 billion to construct four ‘giga factories’ to make integrated solar PV modules, electrolyzers, fuel cells and batteries to store energy from the grid. The site of these plants will be located at the new 5,000 acres Green Energy Giga Complex in Jamnagar. An additional Rs 150 billion will be used for investments across the value chain, technology, and partnerships for the new energy business. “From oil and gas to telecom, to retail and internet, it’s hard to think of another company which has reinvented itself as much as Reliance has done over the past decade. This is a bold move, however, and many will question what Reliance’s source of value is in these industries, other than their position as one of the most successful Indian conglomerates,” it said. Reliance is acquiring REC Solar Holdings from China National Bluestar for $771 million. REC is a well-established manufacturer of polysilicon, PV cells and modules with plants in Norway and Singapore. Using the technology of REC, Reliance will build a new integrated solar manufacturing plant in Jamnagar and expand capacity globally. Ambani’s firm is investing $45 million in NexWafe to jointly develop and commercialise at scale monocrystalline green solar wafers, and is acquiring 40 per cent in leading solar EPC and O&M provider Sterling and Wilson Solar Limited (SWSL). It has also signed a pact with Norway’s Stiesdal for technology development, and manufacturing of Stiesdal’s HydroGen Electrolyzers in India. Another $50 million has been invested in US-based Ambri to develop and commercialize Ambri’s liquid metal batteries for energy storage. Reliance is also in discussion with Ambri to set up a large scale battery manufacturing facility in India. “Overall, Reliance is building a fully integrated end-to-end renewable energy ecosystem for customers through solar, batteries and hydrogen. No other energy company is investing across the entire new energy value chain but if Reliance can pull this off then the value creation and earnings potential will be substantial,” Bernstein said.
India to bargain for undelivered cargoes for renewing LNG import contract with Qatar
India will bargain for supply of undelivered gas quantities of past years when it negotiates renewal of its multi-billion dollar LNG import deal with Qatar, an official said. Petronet LNG Ltd’s 7.5 million tonnes a year liquefied natural gas (LNG) import deal with Qatargas is ending in 2028. Renewal, if any, has to be confirmed 5 years ahead of that. Talks for renewal will start next year and will be conditioned on Qatargas delivering in 2022 the 50 cargoes or shiploads of LNG that weren’t taken in 2015, Petronet Director-Finance V.K. Mishra said. India in 2015 had not taken delivery of the cargoes as it renegotiated the pricing of the long-term supply contract after prices hit double-digit. Qatar had then agreed to revise the pricing formula subject to India buying an additional 1 million tonnes per annum of LNG. As regards the cargoes that were not taken, it was decided that India can see the cargoes anytime during the remainder of the contract that ends in 2028. In case, Qatar is unable to meet the request, the deferred cargoes can be delivered in 2029. “We have requested Qatar to give us the pending 50 cargoes next year,” Mr. Mishra said. “They haven’t yet given a response to our request.” He said the demand can be brought up when the renewal talks start. Spot LNG prices in Asia rose to a record $6.33 per million British thermal units on October 6, valuing a standard cargo at about $190 million. Petronet pays about $11 per mmBtu under its oil-linked contract with Qatar. Last year, Petronet had sought 3 cargoes additional to the annual contracted volume, of which Qatar delivered two, an official aware of the matter said. Petronet is promoted by four state oil firms — Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), GAIL (India) Ltd and Oil and Natural Gas Corp (ONGC). Its chairman is Secretary to the Ministry of Petroleum and Natural Gas, Government of India. Sources said the government is backing Petronet’s efforts to get the undelivered LNG at times when energy prices have climbed to record high. The 50 cargoes will come at $11-12 per mmBtu against more than double the rate that is prevalent in the spot or current market presently. The Oil Ministry, they said, has assured Petronet to take up on its behalf the demand for supply of undelivered cargoes.
Exxon looks to buy stake in ONGC’s Indian deep sea fields
Global oil major ExxonMobil Corp is looking at buying a stake in some of the local deep water fields of Indian explorer Oil and Natural Gas Corp, oil secretary Tarun Kapoor said on Friday.