Who is buying bargain Russian oil in Asia?
Tankers full of Russian crude still entering Japan, South Korea, India, China. Nearly two months after Russia invaded Ukraine, much Russian oil continues to flow to Japan, South Korea, China and India, the latest tanker-tracking data shows. Since the start of the war on Feb. 24 until April 18, a total of 380 oil tankers departed Russia, according to a Nikkei Asia analysis of data from Refinitiv. That is up slightly from 357 during the same period last year. The number rose on the year even after massive civilian killings in Bucha, Ukraine, came to light on April 2. From that date through April 18, 119 tankers departed from Russia, compared to 109 last year. Of the 380 tankers that departed since Feb. 24, 115 are or were headed to Asia: 52 to China, 28 to South Korea, 25 to India, nine to Japan and one to Malaysia. That represents an eightfold increase for India and a 33% increase for China over the same period last year. The numbers for the other countries were down 16%. Major Western economies, such as the U.S. and the U.K., have announced they will stop importing Russian oil as part of their broader response to the war in Ukraine. Even before decisive government action, energy companies such as BP and Shell had said they would no longer buy from Russia due to a combination of shareholder pressure, reputational risk and logistical hurdles. As a result, the benchmark price for Ural crude in Europe slipped by around 30% between early March and mid-April, falling from $111 to $78 a barrel, according to Refinitiv data. That price dip has given those willing to do business with Russia the chance to land a bargain.
India to drive forward Asia’s LNG regasification capacity
Global liquefied natural gas (LNG) regasification projects are expected to be led by Asia from 2022 to 2026, with India considered one of the main drivers with 21% of project starts, according to leading data and analytics firm GlobalData. In its latest report, the company revealed that 20 LNG regasification projects with a total capacity of 3.4 tcf (trillion cubic feet) are set to come out of India between 2022 and 2026. Around 40% of the upcoming regasification projects are considered likely to be in the approval stage and expected to start operations from 2022 to 2026, with feasibility and construction following with 35% and 20%. Commenting on the report, Sudarshini Ennelli, Oil and Gas Analyst, GlobalData, said, “In India, 16 upcoming regasification would be new-build projects while the rest are expansion projects.” “Growing demand from both industrial sectors and Indian government’s plans to increase gas share in energy mix to reduce emissions are driving the natural gas demand in India.” Two notable projects include Kakinada GBS Floating – a 351 billion cubic feet (bcf) capacity project to be operational by 2024 – and the Hindustan LNG-operated Yanam, which is expected to start operations by 2026 with a capacity of 268 bcf.
India refiners skip Rosneft crude tenders on ‘biased’ terms: Report
India’s state refiners did not submit bids in tenders issued by Russia’s top oil producer Rosneft as the terms were “one-sided”, two sources familiar with the matter said on Thursday. The terms echoed demands from Russian President Vladimir Putin for roubles-only trade in natural gas. One of the sources said the terms of the tenders, which closed on Thursday, were “very biased” towards the seller. The sources spoke on condition of anonymity due to the sensitivity of the matter. Russian oil producers face difficulties selling cargoes as international refiners and traders shun them for fear of Western sanctions imposed over Russia’s invasion of Ukraine, which Moscow calls a “special operation”.
Oil India Limited commissions India’s first 99.999% pure Green Hydrogen pilot plant
Oil India Limited (OIL), India’s second largest National Exploration & Production company, has taken the first significant step towards Green Hydrogen Economy in India with the commissioning of India’s First 99.999% pure Green Hydrogen pilot plant with an installed capacity of 10 kg per day at its Jorhat Pump Station in Assam. The plant was commissioned in a record time of 3 months. Sushil Chandra Mishra, Chairman & Managing Director, inaugurated the plant in the presence of Harish Madhav, Director (Finance) and Prasanta Borkakoty, Resident Chief Executive of the company. The plant produces Green Hydrogen from the electricity generated by the existing 500kW Solar plant using a 100 kW Anion Exchange Membrane (AEM) Electrolyser array. The use of AEM technology is being used for the first time in India. Mishra said that the company has taken an important step towards fulfilling the vision of Prime Minister for an Energy-Independent India. This plant is expected to increase its production of green hydrogen from 10 kg per day to 30 kg per day in future.
India refiners skip Rosneft crude tenders on ‘biased’ terms: Report
India’s state refiners did not submit bids in tenders issued by Russia’s top oil producer Rosneft as the terms were “one-sided”, two sources familiar with the matter said on Thursday. The terms echoed demands from Russian President Vladimir Putin for roubles-only trade in natural gas. One of the sources said the terms of the tenders, which closed on Thursday, were “very biased” towards the seller. The sources spoke on condition of anonymity due to the sensitivity of the matter. Russian oil producers face difficulties selling cargoes as international refiners and traders shun them for fear of Western sanctions imposed over Russia’s invasion of Ukraine, which Moscow calls a “special operation”.