Gujarat: PLL to invest Rs 17 billion to build third jetty at Dahej
Petronet LNG Ltd, which meets about 40% of the country’s total gas demand from its terminal at Dahej, is planning to invest Rs 17 billion to build a third jetty, said industry sources close to the development. “The company recently floated a tender to initiate construction work for the project. The expansion was stuck for some time due to the Covid pandemic,” said an industry expert, aware of the matter. As many as eight companies are in the race for the jetty project, he further said. With this project, the company aims to undergo diversification as it has chalked out plans to import liquid ethane and propane at the third jetty. Ethane is feedstock for the manufacturing of petrochemicals and is used to produce plastics, while propane is used as cooking gas and for home and water heating. Earlier this year, a senior company executive said they were exploring plans to set up a petrochemicals complex in Gujarat. PLL owns and operates LNG terminal at Dahej which commenced its commercial operations in April 2004. “Considering the increasing demand of natural gas in the country and proposed expansion of LNG terminal from 17.5 MTPA to 20 MTPA, PLL has now proposed to construct third berth (jetty) of 2.5 km adjacent to the existing second berth for unloading of LNG and transport to the storage tanks,” according to a pre-feasibility report for the third jetty. It will also act as a risk mitigation measure in case existing berths are unable to operate for an extended period or to cater to the anticipated number of ships at a time, the report states. LL is also planning to import and unload liquid ethane and propane at the third berth through carriers of parcel size of 1 lakh cubic metres. It is expected that 1.25 MTPA ethane will be handled initially and expandable to 2.5 MTPA in the future, as per the report. “There is a huge demand for ethane and propane by petrochemical industries available in the vicinity. Thus, it is proposed to import ethane and propane also through third berth and supply to the consumers,” it said. The onshore infrastructure for ethane and propane storage & regasification system shall be planned and installed at a later stage. Ethane and propane unloading shall only be done after construction/installation of onshore ethane and propane storage & regasification system, it said. A company official declined to comment on the matter.
India to seek higher volume, better price for Qatar LNG deal renewal
India’s top gas importer Petronet LNG (PLNG.NS) will seek higher volumes at better prices from Qatar Gas during negotiations for an extension of its long-term liquefied natural gas (LNG) deal beyond 2028, its head of finance said on Wednesday.
India’s October fuel demand surges, gasoline sales hit record
India`s fuel demand rose in October to a seven-month peak, with gasoline sales surging to an all-time high, government data showed on Tuesday, as festivals boosted mobility and economic activity in the world`s third biggest oil consumer. Fuel consumption, a proxy for oil demand, rose over 12% to 17.87 million tonnes last month from September. It was up 0.8% from the corresponding period last year and 3% from October 2019, data from the Petroleum Planning and Analysis Cell (PPAC) showed. Consumption got a boost from the start of the festival season in October, offsetting the impact of high prices, Refinitiv analyst Ehsan Ul-Haq said. October`s sales of gasoline, or petrol, were 8.3% and 3.4% higher than in 2019 and 2020 respectively and at 2.75 million tonnes, was the highest-ever monthly figure recorded as per data going back to 1998. Improving vaccination coverage and the opening up of schools, colleges and offices helped demand, said Prashant Vasisht, vice president and co-head, corporate ratings at ICRA. Diesel sales, which typically rise ahead of the Diwali festival, rose nearly 20% from September to 6.61 million tonnes, helped along by the quickest monthly expansion in the country`s factory activity in eight months. Consumption of diesel, which accounts for about 40% of India`s refined fuel sales, was also up 1.5% from October 2020, but down 5.6% year-on-year. India, Asia`s third-largest economy, reduced excise duty on petrol by 5 rupees ($0.0674) per litre, and that on diesel by 10 rupees ($0.1348) per litre, last week. The lower prices and an uptick in economic activity should also aid diesel demand, ICRA`s Vasisht added. Compared to last year, sales of cooking gas, or liquefied petroleum gas (LPG), increased nearly 3% to 2.49 million tonnes, while naphtha sales fell 5.2% to 1.28 million tonnes.
Gautam Adani looks to join race for BPCL
Gautam Adani is said to be in talks with two private equity firms for a potential partnership to enter the race to buy state-run oil refiner and marketing company Bharat Petroleum Corporation Ltd (BPCL), sources said. The Adani Group is understood to be negotiating with Apollo Global Management Inc and I Squared Capital; the two private equity firms are separately doing a due diligence for BPCL, one of the sources said. Major deal The two bidders have been scouting for partners to share the risks given the huge deal size, estimated at $12-13 billion. But a global shift towards renewable energy to combat climate change concerns has made the task of finding partners difficult. Qualified bidders for BPCL can change and/or bring in new partners before placing the financial bid, according to the sale terms stipulated by the Department of Investment and Public Asset Management. Adani’s move is seen as an afterthought as the billionaire stayed away from putting in an EoI (expression of interest) for BPCL when the deadline ended in November last year. The energy clash A few months down the line, though, the scenario has changed dramatically with Adani and Reliance Industries Ltd’s Mukesh Ambani engaged in a clash over green energy related businesses. In June, Mukesh Ambani announced that Reliance Industries would make a massive ₹75,000-crore investment in a green energy giga complex in Jamnagar, Gujarat. On July 30, Adani responded by setting up Adani Petrochemicals Ltd to “carry on the business of setting up refineries, petrochemicals complexes, speciality chemical units, hydrogen and related chemicals plants and other such similar units,” Adani Enterprises Ltd, the Ahmedabad-based conglomerate’s flagship company said in a regulatory filing, without offering any details. Oil industry sources said that Adani’s foray into petrochemicals business lacked vision without a refinery in its fold. In the refining business, the availability of petrochemicals in the product portfolio hedges against a drop in price/demand of fuels. Besides, integration of refining and petrochemicals leads to better profit margins. BPCL, hence, would fit well into Adani’s petrochemical ambitions without impacting the Group’s sustainability goals. However, there is no certainty that a partnership will fructify, and the talks could collapse, said one source. Adani Group and I Squared Capital did not respond to emails seeking comments. Apollo Global Management said it has “no comments” to offer. Disinvestment plan The government has decided to privatise BPCL by selling its 52.98 per cent stake to a strategic buyer. BPCL runs refineries in Mumbai, Kochi and Bina (in Madhya Pradesh) and is India’s No 2 oil marketing company and third largest by refining capacity. Anil Agarwal-led resources giant Vedanta Ltd is the third contender for BPCL.