India interested in boosting oil, LNG supplies via Northern Sea Route
India is interested in boosting supplies of the Russian oil, liquified natural gas, as well as utilization of the Northern Sea Route for energy supplies, according to a joint statement released following the 21st Russia-India summit on Monday. “The sides reaffirmed their commitment for increasing sourcing of Russian crude oil on long term contracts through preferential pricing, strengthening LNG imports to India, and the possible utilization of the Northern Sea Route for energy supplies,” the statement said. “The two sides further agreed for the expansion of cooperation in gas sector and welcomed the creation of a Gas Task Force to identify mutually beneficial areas including the development of investment in gas infrastructure and distribution projects, use of natural gas in transport and emerging fuels including hydrogen,” according to the statement. They also noted “the fruitful, wide-ranging collaboration between the oil and gas companies of the two countries, including between JSC Rosneft Oil Company and Oil and Gas Public Sector Undertakings of India in implementing the Vankorneft, Sakhalin-1 and Taas-Yuryakh Neftegazodobycha projects in Russia, and Nayara Energy Limited’s oil refinery in India,” the statement said.
Russia and India sign oil supply deal, see need for stable prices in talks
Russia and India signed Dec. 6 new energy cooperation agreements including a contract for Rosneft to ship almost 15 million barrels of crude to the world’s third-largest consumer of oil in 2022, according to government and company statements. Both countries also acknowledged the importance of dialogue between consumers and producers to ensure stable energy prices. S&P Global Platts assessed Dated Brent has gained 43% year-to-date to trade around $70/b in early December despite continued concerns over the COVID-19 pandemic. “The signing of a new oil supply contract confirms the strategic nature of the long-term partnership between Rosneft and IndianOil,” Rosneft CEO Igor Sechin said, according to a company statement. Russia’s largest crude producer said it has agreed to a contract to ship up to 2 million mt, or around 14.66 mil barrels, of crude by the end of 2022. Deliveries will be shipped through the Russian Black Sea port of Novorossiisk, the company said. Rosneft’s owns a 49.13% stake in the Indian company Nayara Energy, which owns the 20 million mt/year Vadinar oil refinery. The Kremlin also said both countries acknowledged the important role of dialogue between consumers and producers. “India highlighted the need for responsible and informed market pricing of global energy supplies. Both sides noted the importance of dialog between consumers and producers to stabilize energy prices.” Renewable energy On President Vladimir Putin’s visit to India, both sides “reaffirmed their commitment to increasing Russian crude oil production under long-term contracts at preferential prices, and increasing LNG imports to India with the possible use of the Northern Sea Route for energy supplies.” Russia and India cooperate extensively on energy, including Indian companies’ stakes in Russian upstream projects Sakhalin 1, Vankorneft, and Taas-Yuryakh. “The parties also agreed to consider prospects for expanding cooperation on hydro and thermal energy, energy efficiency, and the use of renewable energy sources,” the Kremlin said. Continuing joint work on developing payments in national currencies to reduce costs, time, and risks associated with payments were also discussed. Interest in non-dollar payments including for energy resources has increased in Russia in recent years, due to the risk that Western sanctions may restrict Russian companies’ access to the dollar in the future. Series of agreements During the bilateral annual summit in the Indian capital, Putin held discussions with Indian Prime minister Narendra Modi on a host of trade and energy cooperation issues. “We are also adopting a long-term vision to deepen our relationship in the economic sector,” Modi said at the summit. Russia agreed to strengthen LNG imports to India, and the possible utilization of the Northern Sea Route for energy supplies, including crude and gas. “We have set a target of $30 billion in trade and $50 billion in investment by 2025,” Modi said. Russian oil major Rosneft signed one memorandum of understanding each with India’s state-run No 1 refiner Indian Oil Corp. and ONGC Videsh. While the agreement with IOC seeks to renew the previous crude supply agreement with Rosneft, the agreement with OVL led consortium seeks to promote education and training in the oil and gas sector. In addition, IOC and Grazpromneft agreed to collaborate in vacuum gas oil hydrocracking technology, catalytic iso-dewaxing lobs and catalyst regeneration for fixed bed catalyst, said a statement issued in New Delhi after the summit Dec.6. Both countries agreed to expand cooperation in the development of gas infrastructure and distribution projects, the use of natural gas in transport, and emerging fuels, including hydrogen. Both countries also agreed to expand collaboration through Russian participation in the Indian petrochemical sector by way of investment, technological, and other means of collaboration. An agreement was reached between IOC and Russia’s integrated petrochemical company SIBUR to explore the feasibility to set up a dual-feed cracker unit along with downstream units at Paradip, in India’s East Coast, the statement said.
New plant in India to produce 4 million litres of biodiesel
LRE Petroleum received letter of intent (LOI) from Indian Oil to set up biodiesel manufacturing plant in India. The Ministry of Petroleum & Natural Gas (MPNG) announced the National Biofuels Policy back in 2018, which has a target of 5% blending of biodiesel with conventional diesel by 2030. LRE Petroleum is expected to produce at least 4 million litres of biodiesel (B-100) every year from used cooking oil (UCO). Biodiesel produces 78% less carbon emissions from conventional diesel. In India the transport sector adds about 20% every year to the annual carbon emissions which is at about 2.3 Gt CO2e emissions for the year 2019. The company is set to reduce 10,000 tonnes of CO2e from the atmosphere annually. The biodiesel plant is strategically located in Karnal, Haryana, India, with LRE’s new 1,700 tonnes per annum compressed biogas plant which is expected to be commissioned by end of March next year.
Air Quality panel orders immediate closure of NCR industries not running gas or cleaner fuels despite having infrastructure
The Commission for Air Quality Management in NCR and Adjoining Areas (CAQM) on Wednesday issued directions for immediate closure of all industries where PNG infrastructure and supply are available but they have still not switched over to the PNG. As per the directions of the Commission, these violating industries/ industrial units will not be permitted to schedule their operations till December 12. The position will be reviewed for further decisions, according to an official statement. “Despite measures taken in different sectors towards the improvement of air quality of Delhi-NCR, the air quality still remains in ‘Very Poor’ to ‘Severe’ category. Keeping in view the need to enforce strict actions against the deteriorating air quality of the region, the commission believes that there is an urgent need to take further preventive measures, as a matter of extreme emergency and abundant caution,” it said. The CAQM has also deputed flying squads for field visits and rigorous inspections of different sites contributing to the deteriorating air quality of Delhi-NCR and reporting their compliance of the directions. The Commission is reviewing the progress on daily basis by holding the review meetings with the flying squads to take stock of the situation and take necessary punitive actions against the violators, it said.
Abu Dhabi chemical company, Reliance Industries form $2-bn production JV
Billionaire Mukesh Ambani’s Reliance Industries on Tuesday said it will in partnership with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) invest $2 billion in setting up a petrochemical production facility in the UAE. The oil-to-telecom conglomerate will join the recently-formed TA’ZIZ joint venture of Abu Dhabi state energy giant ADNOC and state holding company ADQ for developing the facility at Ruwais in western Abu Dhabi. “TA’ZIZ and RIL, have agreed to launch ‘TA’ZIZ EDC & PVC’, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais,” the company said in a statement. The new joint venture will construct and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility, with an investment of more than $2 billion. The TA’ZIZ Industrial Chemical Zone projects are currently in the design phase with project start up targeted in 2025. “Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally,” it said. The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ. ADNOC, which pumps most of the UAE’s 3 million barrels per day of crude oil, plans to spend USD 45 billion with partners to develop its downstream operations in Ruwais. These projects include adding refining and petrochemical capacity. The oil refinery planned at Ruwais is being designed to be integrated with the petrochemical project. “The project builds on ADNOC and Reliance’s long-standing strategic partnership and is Reliance’s first investment in the MENA region,” the statement said. The signing of the joint venture terms, which are subject to regulatory approvals, was witnessed by UAE Minister of Industry and ADNOC chief executive Sultan Ahmed Al Jaber and Reliance Chairman and Managing Director Mukesh D Ambani. The joint venture terms were signed by Khaleefa Al Mheiri, Acting CEO of TA’ZIZ and Kamal Nanavaty, President Strategy and Business Development of Reliance. The agreement capitalises on the growing demand for these critical industrial raw materials and leverages the strengths of the two firms as global industrial and energy leaders. Reliance operates the world’s largest refining complex at Jamnagar in Gujarat. It also has petrochemical plants. Besides producing oil, ADNOC too has similar operations. Under the terms of the agreement, TA’ZIZ and Reliance will construct an integrated plant with a capacity to produce 940,000 tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360,000 tonnes of PVC annually. While chlor-alkali is used in water treatment and in the manufacturing of textiles and metals, ethylene dichloride (EDC) is used for producing polyvinyl chloride (PVC). PVC is commonly used in pipes, fittings, profiles, tubes, windows, doors, sidings, wire, cable, film, sheet, and flooring. Al Jaber, said: “This strategic partnership with Reliance builds on the strong and deep-rooted bilateral ties between the UAE and India and highlights the attractive and compelling value proposition offered by TA’ZIZ as we grow a globally competitive industrial ecosystem.” “This joint venture marks a major milestone in ADNOC’s downstream expansion and the development of the TA’ZIZ Industrial Chemicals Zone. It will help strengthen domestic supply chains, drive In-Country Value and accelerate the UAE’s economic diversification, in line with the leadership’s wise directives.” Ambani said the joint venture will further cement the long standing and valued relationship between India and the UAE. “India’s need for PVC to propel its growth, and the value from the abundantly available feedstock in UAE, provides a win-win partnership for both companies. Close cooperation in the region based on shared objectives is key as we optimise resources and work together to enrich the lives of our citizens,” he said. The production of chlor-alkali, EDC and PVC will create opportunities for export to target markets in Southeast Asia and Africa, as well as providing local industry with a source of critical raw materials manufactured in the UAE for the first time, the statement said. TA’ZIZ comprises three zones, the first of which is an industrial chemicals zone that will host chemicals production, with seven world-scale projects already in the design phase. The second is a light industrial zone, which will be home to downstream conversion industries that will convert the outputs of the chemical zone into consumable products and, finally, an industrial services zone that will house a variety of companies providing the necessary services required by the TA’ZIZ industrial zones and the wider Ruwais Industrial Complex.