Vedanta makes oil discovery in Rajasthan’s Barmer, notifies Indian government
On February 21, Cairn Oil & Gas, a Vedanta group company, stated that it had discovered oil in an exploration well in Rajasthan’s Barmer area. The company stated it has alerted the Directorate General of Hydrocarbons (DGH) and the Ministry of Petroleum and Natural Gas about the oil discovery in a block it was given under the Open Acreage Licensing Policy, according to a regulatory filing (OALP). The Management Committee, the block monitoring panel, has also been informed of the discovery uncovered in the OALP block, according to Vedanta. “The company has notified the Management Committee, DGH and Ministry of Petroleum and Natural Gas on February 21, 2022 of an oil discovery (named ‘Durga’) in its exploratory well WM-Basal DD Fan-1 drilled in OALP Block RJ-ONHP-2017/1 in Barmer District of Rajasthan,” Vedanta said. ‘Durga’ is the name given to the find. According to the corporation, the consent of the block monitoring panel, known as the Management Committee, has also been requested. In October 2018, the company secured 41 areas in the first phase of the open acreage licencing policy (OALP) bid round. Cairn Oil & Gas, a subsidiary of Mumbai-listed Vedanta Ltd., owns the entire block. “Durga-1 (earlier WM-Basal DD Fan-1) is the second well drilled in Block RJ-ONHP-2017/1 to a depth of 2615 meters,” the firm said.
India’s January bitumen imports fall on year
Some bitumen-carrying vessels have also been stopped at Indian ports because of documentation issues, increasing fears of a supply constraint in the country. India’s January bitumen imports of 218,000t were down by 22pc from a year earlier, data from the Indian oil ministry’s Petroleum Planning and Analysis Cell (PPAC) show. Demand for bitumen, which is used in road construction, has been on a recovery path since falling to a one-year low in August last year, but non-seasonal rains and a colder-than-expected winter in some parts of India have weighed on roadworks. Ongoing issues with a disbursement of project funds from a few state governments have also pressured road activity. Bitumen consumption is expected to pick up further at the end of March or early April, but market participants are apprehensive after a few vessels arriving from the Middle East were scrutinised at the western Indian ports of Pipavav, Kandla and Mundra because of issues with documentation of the origin of the cargoes. These vessel scrutiny issues could potentially lead to a product shortage in the Indian market in the near term. Meanwhile, a recent surge in prices in Iran and its subsequent impact on Indian domestic-listed prices may also push some traders to continue looking for imported cargoes. Indian state-controlled refiners have lifted listed prices for bulk and drummed bitumen in Mumbai by 4,740 rupees/t ($63/t) for the second half of February in line with rising import prices. Argus assessed bulk prices at $430/t fob Iran for the week ended 18 February, the highest since November 2014. Prices have also increased by 40pc since early January. Drum prices were assessed at $470/t fob Iran. Indian refiners are keeping bitumen production at normal levels and looking to maximise output in the coming months. Bitumen output of 486,000t last month was up from 433,000t in December but down from 526,000t in January 2021, according to the PPAC data.
Qatar’s LNG production capacity to reach 126m tons a year by 2027, says Emir
Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani said on Tuesday that Qatar’s liquefied natural gas production capacity will rise to 126 million tons a year by 2027. Speaking at a gas exporters summit hosted in Doha, Al-Thani renewed calls for further dialogue among member countries of the gas forum, as well as gas importers and exporters to ensure the security of global gas supply. “To further promote our role in the production of natural gas, we are endeavouring toward increasing our LNG production capacity from 77 million tons yearly to 126 million tons yearly by 2027,” he said. Al Thani touted a carbon capture facility Qatar is building — the biggest in the Middle East — he said, which will isoalte and store 2.5 million tons of carbon per year in four years. By 2030, the facility will isolate 9 million tons per year.
Sri Lanka runs out of cash to buy fuel: Here’s how India is helping forex-starved nation
Sri Lankan government on Monday admitted that it has run out of cash to buy fuel as pumps in most filling stations across the country have run dry, exacerbating the deepening foreign-exchange crisis that has crippled the island nation’s economy. So dire is Sri Lanka’s current economic situation that it does not even have adequate US dollars to pay for two shipments of fuel. “Two shipments of fuel have arrived today, but we are unable to pay for it,” Sri Lanka’s Energy Minister Udaya Gammanpila said on Monday. Last week, state-owned refinery Ceylon Petroleum Corporation (CPC) said it was out of money to procure supplies from abroad. The CPC suffered losses to the tune of USD 415 million in 2021 due to the sale of diesel at prices fixed by the government. “I had warned about the impending fuel shortages due to the dollar crisis twice in January and once earlier this month,” Gammanpila said. Sri Lanka’s worsening foreign-exchange shortage has seriously impacted the energy sector, which largely depends on imports for fuel. The fuel shortage has led to long queues at understocked pumps across the country. Gammanpila reckoned that the only way out of this mess is by hiking the retail prices of fuel. The minister also urged the government to reduce the customs duty on fuel imports in order to pass the benefits to the public. Earlier this month, Sri Lanka bought 40,000 metric tonnes of diesel and petrol from India’s oil major Indian Oil Corporation to meet the urgent energy requirements in the economic crisis worsened by depleted foreign reserves. India a committed partner and a true friend of Sri Lanka. The High Commissioner (Gopal Baglay) handed over 40,000 MT fuel consignment by Indian Oil Company,” a statement issued by the Indian High Commission here had said. The delivery of the fuel by India came amidst the announcement of Sri Lankan Finance Minister Basil Rajapaksa’s visit to India in a fortnight to formalise India’s economic relief package for the country facing a serious forex crisis. Last month, India announced a USD 900 million loan to Sri Lanka to build up its depleted foreign reserves and for food imports, amid a shortage of almost all essential commodities in the country. Earlier this month, an agreement to grant Sri Lanka a credit line of USD 500 million for fuel purchases was also sealed which was part of the immediate economic relief package. Sri Lanka’s economy is also seeing a scarcity of food and other essentials, which has pushed inflation to a record 25 per cent last month. Tourism, another key foreign-exchange earner, has also witnessed a lull due to the pandemic.
Explained: Why the Nord Stream 2 pipeline between Germany and Russia is controversial
In a development that could ratchet up tensions between the United States and Germany, the consortium building the Nord Stream 2 pipeline has said that it has resumed work on the controversial project. On Saturday, Russian energy major Gazprom said that it had resumed laying pipes in Danish waters, defying US sanctions. “All works are performed in line with the relevant permits. We will provide further information about the construction works and further planning in due time,” the consortium said about the project, which will double the amount of natural gas exported from Russia to Germany through the Baltic Sea. The Nord Stream 2 pipeline In 2015, Gazprom and 5 other European energy firms decided to build Nord Stream 2, valued at around $11 billion. The 1,200 km pipeline will run from Ust-Luga in Russia to Greifswald in Germany, and will carry 55 billion cubic metres of gas per year. The under-construction pipeline will run along the already-completed Nord Stream 1 system, and the two together will supply an aggregate of 110 billion cubic metres of gas to Germany per year. The pipeline falls in German and Danish territory, and all but 150 km of pipes for the project have already been laid. Why the pipeline is controversial Since it was first planned, Nord Stream 2 has drawn criticism from the US, where both the Democratic and Republican parties believe that the project would increase Europe’s dependence on Russia for natural gas, thus boldening its President Vladimir Putin. Currently, EU countries already rely on Russia for 40% of their gas needs. The project has also irked Ukraine, whose ties with Russia have seriously deteriorated in the aftermath of the Crimean conflict in 2014. There is an existing land pipeline between Russia and Europe that runs through Ukraine, which feels that once Nord Storm 2 is completed, Russia could bypass the Ukrainian pipeline, and deprive the country of lucrative transit fees. France has also expressed its opposition to the project, as have some others in Eastern Europe. Germany, however, has solidly stood behind the Nord Stream 2, despite opposition from allies, with Chancellor Angela Merkel’s government insisting that it is a commercial project. Critics of the US position say that Washington is forcing Europe to buy its sea-borne liquified natural gas. Avoiding America’s wrath In December 2019, work on the project was suspended due the threat of US sanctions. Then in January this year, the US carried out its threat for the first time, imposing sanctions on a Russian ship tasked with laying pipes for the project. Although work on the project has resumed, experts believe that US sanctions could still end it. According to The Economist, a possible way to salvage the project and allay Washington’s fears would be by imposing automatic sanctions on Russia should it decide to stop using the land pipelines through Ukraine and deprive it of transit fees.
Assam-based Numaligarh Refinery to manufacture ethanol out of bamboo
Assam-based Numaligarh Refinery Limited (NRL) has collaborated with a Finnish company to manufacture ethanol out of bamboo, a top company official said on Tuesday. Speaking at a CII event virtually, managing director of NRL Bhaskar Jyoti Phukan said the company has invested heavily in a bio-ethanol plant. “We have tied up with a Finnish firm to manufacture ethanol out of bamboo. Bamboo will be procured from the farmers and the plant can be a back-up supplier of oil marketing companies in the northeast for blending motor spirit with ethanol”, Phukan said The MD said to reduce carbon emissions, the company is trying to get out of captive power generation and get connected to the grid for which it has do a power purchase agreement with a green power producer. He said that India needs to get out of volatility of the crude prices. According to him, since the northeast has plenty of water, hydrogen can be locally produced and be used as green fuel He said there is a need to monetise gas reserves lying underneath and also storing of carbon dioxide in dead wells and reservoirs.