Energy storage, offshore wind, Green Hydrogen define govt’s renewable energy strategy: MNRE Joint Secy Jagdale
In order to boost and support India’s renewable energy sector going forward, the government is working on a multi-pronged strategy that focus on energy storage, offshore wind and Green Hydrogen simultaneously, according to Dinesh Jagdale, Joint Secretary, Ministry of New and Renewable Energy (MNRE). Speaking at the US-India Energy Summit here, Jagdale said MNRE has adopted a strategy of faster adoption of renewable energy in the Indian electricity sector. “We are following the mantra of greening the grid and more electrifying of the economy. This is the way forward and at this stage defines our endeavour to move towards India’s energy transition,” he said. agdale was speaking as a panelist in a discussion on “Fostering Innovation: Technology for Sustainability”. He said the results of MNRE’s efforts over the past 5-6 years are being seen now, the electricity grid has adopted RE at a fast pace, solar power which has shown maximum growth and wind energy’s growth is also set to pick up. “What is really important is the new areas of growth we are looking at. With more penetration of renewable energy we require more support to the grid. We now need a grid that is stronger, safer and more secure. Looking at the energy era that is going to come till 2030, and the pace at which the energy capacity will be added, it will also require a lot of support in other systems and we need to add energy storage capacity,” he said.
Netherlands was top destination for US LNG supplies in May
The Netherlands was the top destination for US LNG exports in May, according to the Department of Energy’s newest LNG monthly report. The report shows that US terminals shipped 64.5 Bcf of LNG to the Netherlands in May, 51.7 Bcf to France, 31.2 Bcf to Japan, 26.9 Bcf to Argentina, and 25.2 Bcf to the UK. These five countries took 54.4 percent of total US LNG exports in May. Previously, the UK was the top destination for US LNG supplies for six months in a row. The Netherlands has expanded its capacity with the launching of Gasunie’s Eemshaven FSRU-based LNG terminal. The country’s first FSRU-based terminal adds to the Gate LNG import facility in Rotterdam, also operated by Gasunie and Vopak. US LNG exports rise 4.4 percent The US exported in total 366.7 Bcf of LNG in May, up by 4.4 percent compared to the same month last year and a drop of 1.4 percent from the prior month, the DOE report shows. US terminals shipped 127 LNG cargoes in May, compared to 114 cargoes in May 2022 and 110 cargoes in April this year, according to the report. Cheniere’s Sabine Pass plant sent 38 cargoes, while its Corpus Christi terminal shipped 18 cargoes in May. In addition, Cameron LNG dispatched 29 shipments, Freeport LNG sent 28 cargoes, Cove Point LNG sent 11 cargoes, and Elba Island LNG dispatched 3 shipments. 4816 LNG cargoes According to DOE’s report, the weighted average price by export terminal reached 7.05/MMBtu in May. Moreover, the report said that in the period from February 2016 through May 2023, the US exported 4816 cargoes or 15,368.6 Bcf to 44 countries. South Korea remains the top destination for US LNG with 524 cargoes, followed by Japan with 393 cargoes, the UK with 390 cargoes, France with 364 cargoes, and Spain with 371 cargoes. Besides these five countries, China, the Netherlands, India, Turkey, and Brazil are in the top ten as well
India’s Vedanta to Sink Billions into Oil and Gas, Commodities: Report
India’s largest private producer of crude oil Vedanta plans to invest billions of dollars into the oil and gas sector and its commodities-related business, according to a report by S&P Global Commodity Insights, citing company chairman Anil Agarwal. Agarwal said that the changing energy landscape will increase demand for oil and gas, as well as metal resources, in the foreseeable future, according to the report. Vedanta owns Cairn Oil & Gas, which is the largest private sector producer of crude oil in India, owning assets in the regions of Rajasthan, Andhra Pradesh, and Gujarat in India, according to the company website. The Mangala field in Rajasthan, discovered in January 2004, was the largest onshore oil discovery in India in two decades. The Mangala, Bhagyam, and Aishwariya fields, the three major discoveries in the Rajasthan block, cumulatively have reserves of approximately 7.7 billion barrels of oil equivalent (Bboe). Cairn has 62 licenses in India, which are estimated to contain over 3.0 Bboe of gross unrisked prospective resources. In an earlier news release, Cairn said that its estimated total gross 2P plus 2C resources have reached 1.156 Bboe, of which oil accounts for 85 percent. 2P reserves are the total of proven and probable reserves, while 2C is the best estimate of contingent resources. The company is planning up to 20 potential new development projects to bring a substantial proportion of the 846 million barrels of oil equivalent of gross 2C resources into production. The company plans to drill up to 20 exploration wells in the next two years, targeting approximately 500 million barrels of oil equivalent of gross unrisked prospective resources. “Cairn has a world-class resource base of over 1.1 Bboe gross, and we continued to sustain the business last year, adding more resources than we produced”, Cairn CEO Nick Walker said. “We have significant undeveloped resources and we’re moving at pace to apply the latest technology to define a portfolio of up to 20 new projects. We’ve also a material exploration position in India and are commencing an exciting exploration drilling program aimed at continuing to grow our resources. Cairn is committed to increasing India’s domestic oil and gas production, with a vision to contribute 50 percent of the country’s crude production.” Cairn’s current total production capacity stands at 147,000 boe per day, with the Rajasthan block contributing 120,000 boe per day, or nearly 82 percent of the total. Cumulatively, the block has produced over 700 million boe in the last decade, according to the news release. In a separate news release, Cairn said it signed three memorandums of understanding with the state governments of Rajasthan, Gujarat, and Andhra Pradesh for biodiversity conservation through the mass plantation of 750,000 trees. The carbon captured through the mass plantation is equivalent to emissions needed to provide electricity to 4,500 Indian households, the company said. The three agreements account for 38 percent of the two million trees that Cairn has pledged to plant by 2030 and will help the company achieve net-zero carbon emissions by 2050. The initiative is in line with India’s targets for the development of carbon sinks.
Uncertainty In Oil Markets As Fundamentals Counter Economic Concerns
Oil prices dropped in Asian trading early on Wednesday before bouncing back slightly as market participants continue to weigh tightening supply and China’s fresh stimulus pledge against concerns of slowing developed economies amid rate hikes. In Asian trade on Wednesday, the U.S. benchmark WTI Crude was down by 0.13% to $75.65. The international benchmark, Brent Crude, recovered its early losses and was up 0.05% to $79.68. Concerns about the U.S. and European economies, coupled with the lower-than-expected Chinese growth in the second quarter, continue to put downward pressure on prices, although the American Petroleum Institute (API) estimated late on Tuesday a small draw of 797,000 barrels to U.S. crude oil inventories. U.S. gasoline inventories are also estimated to have fallen last week, per API data. If confirmed by the official EIA inventory report later on Wednesday, draws could support oil prices in the latter part of this week. The market, however, appears to be continuously concerned about the U.S. and European economies. The Fed is widely expected to raise the key interest rate by a quarter percentage point, with odds on Wall Street at 93.6% for a rate hike at the July 26 meeting. “A retail sales report confirmed the US economy is still healthy and ready for another quarter-point rate rise by the Fed,” Ed Moya, senior market analyst at OANDA, said on Tuesday. Still, “Wall Street grows confident Fed will be ‘One and Done’ on rate hikes,” Moya notes. Limiting the slide in oil prices early on Wednesday was the Chinese pledge from Tuesday that it would “formulate and introduce more effective policies for restoring and expanding consumption as soon as possible.” On the fundamentals front, Russian crude oil exports are now showing signs of decline for a second consecutive week and are estimated to have sunk to a six-month low in the four weeks to July 16. “With Russian flows falling to a six-month low, expectations are growing that OPEC+ will keep this market tight throughout the summer,” OANDA’s Moya commented. “Brent crude looks like it wants to find a home above the $80 level and that shouldn’t be too hard as long as the crude demand outlook doesn’t get blindsided,” the analyst noted.
ADNOC Signs LNG Deal With Indian Oil Major Worth Up To $9 Billion
ADNOC Gas has signed a long-term agreement to supply liquefied natural gas to Indian Oil Corporation, in a deal worth between $7 billion and $9 billion. Under the terms of the agreement, ADNOC Gas, the integrated gas unit of Abu Dhabi National Oil Company (ADNOC), will export up to 1.2 million metric tonnes per annum (mmtpa) of LNG to Indian Oil over a period of 14 years, the Abu Dhabi company said in a statement. ADNOC Gas, which supplies around 60% of the UAE’s sales gas needs and has access to 95% of the UAE’s huge gas reserves, looks to expand its global presence as the LNG market grows and countries look to diversify supply to boost energy security. “The landmark deal marks another significant milestone for ADNOC Gas as it expands its global reach, reinforcing its position as a global LNG export partner of choice, and reaffirming IOCL as its key strategic partner in the LNG market,” ADNOC Gas said. India, for its part, aims to boost the share of natural gas in its energy mix to 15% by 2030, up from around 6% now. Competition for LNG has increased and long-term LNG contracts have returned, after the Russian invasion of Ukraine upended the global gas market, prompted Europe to pledge to ditch Russian pipeline gas by 2027, and kickstarted a competition between Europe and Asia for spot and long-term LNG supply. The United States and Qatar have recently signed major long-term deals with both Chinese and European firms. Last month Germany signed a 20-year deal with U.S. firm Venture Global LNG to import 2.25 million tons of LNG per year from Venture Global’s third project, CP2 LNG, as Europe’s biggest economy is looking to secure gas supply after Russia stopped deliveries. Chinese buyers, for their part, have recently signed with Qatar the longest LNG term deals in the history of the industry while also discussing additional agreements with QatarEnergy and with U.S. LNG developers.