India’s Jet Fuel demand surpasses pre-pandemic levels in February amid air travel surge
India’s aviation industry witnessed a remarkable resurgence in February as the demand for jet fuel surged past pre-pandemic levels, driven by increased air travel activity, according to preliminary data from state-owned firms. Aviation turbine fuel sales by three state-owned fuel retailers recorded a notable uptick, rising by 7.1 percent to reach 6,32,600 tonnes in February compared to the same period last year. This surge in demand marked a significant milestone, surpassing consumption levels from the Covid-impacted February 2022 and even slightly outpacing the figures from February 2020, just before the onset of the pandemic. The month-on-month data revealed a 3.5 percent increase in jet fuel sales, reflecting the ongoing recovery trend in India’s aviation sector. Following the stringent lockdown measures in late March 2020, fuel sales plummeted by as much as 60 percent, severely impacting travel and business operations across the country. While petrol consumption rebounded to pre-Covid levels in late 2021 and diesel sales followed suit in mid-2022, jet fuel demand remained subdued due to the slow resumption of international flights. However, with the resurgence of flight departures and rising passenger footfall, monthly jet fuel consumption has now exceeded pre-pandemic levels. In addition to jet fuel, petrol and diesel sales also witnessed robust growth in February. Petrol sales surged by 7.2 percent to 2.75 million tonnes, while diesel demand saw a marginal increase of 0.4 percent to 6.55 million tonnes compared to the previous year. The winter season in northern India contributed to a tapering of air-conditioning demand, further impacting fuel consumption patterns. Both petrol and diesel sales experienced month-on-month growth, with petrol consumption rising by 6.2 percent and diesel demand increasing by 7.2 percent compared to January figures. Diesel remains India’s most consumed fuel, constituting nearly 40 percent of all petroleum product consumption, with the transport sector accounting for 70 percent of diesel sales. The fluctuating trend in fuel consumption over recent months has been evident, with February petrol consumption showing a 20 percent increase over the Covid-affected levels of February 2022 and a 29.3 percent surge compared to pre-pandemic February 2020. Similarly, diesel consumption recorded a 13.6 percent growth over February 2022 and a 7.4 percent increase compared to February 2020. Cooking gas LPG sales also demonstrated a positive trajectory, rising by 6.6 percent year-on-year in February. The month-on-month data showed a 1.4 percent increase in LPG demand, reflecting sustained growth in household energy consumption
Qatar’s Gas Boost Will Bring Energy Dominance — and Lots of Cash
With a two-phase mega-expansion already underway and an enormous new buildout now on the horizon, the small Gulf nation of Qatar is setting itself up to control about a quarter of all liquefied natural gas by the end of the decade — and with it, a growing share of the world’s influence and wealth. Qatar’s energy minister Saad Al-Kaabi unveiled last Sunday plans to boost capacity another 13% on top of its previously announced projects, together lifting the nation’s output of LNG from 77 million metric tons per year today to 142 million tons by 2030. That puts the peninsula with fewer residents than the state of Mississippi on track to produce the equivalent of about 7.25 million barrels of oil per day. Most of that will be exported, essentially matching the oil shipments from the region’s reigning energy giant, Saudi Arabia.
Sri Lanka awards energy deal to India after rejecting China
Sri Lanka on Friday awarded the construction of three solar and wind hybrid power generation facilities to an Indian company after scrapping a tender won by a Chinese firm. New Delhi has long been concerned about growing Chinese influence in the island nation, which sits near key global shipping lanes and which India considers to be within its sphere of influence. The project, initially financed by an Asian Development Bank (ADB) loan, was temporarily shelved two years ago after India raised concerns over China’s involvement. Sri Lanka’s energy ministry said Friday that the project had been revived and was now fully funded by an $11 million Indian government grant. It added that renewables firm U-Solar from India’s tech hub of Bengaluru had been awarded the building contract. India’s assistance “underscored the significance New Delhi attached to bilateral energy partnership”, the Indian embassy said in a statement. The three facilities will have a combined 2,230 kilowatts of renewable energy capacity and be located on islets near the northern city of Jaffna, not far from India’s southern coast. China and India have been competing for major infrastructure projects in Sri Lanka, which is currently emerging from its worst economic crisis since independence from Britain in 1948. Beijing is also Sri Lanka’s single largest bilateral creditor, accounting for around 10 percent of the island nation’s $46 billion foreign debt at the time of a government default at the peak of the crisis in 2022.
PM unveils oil and gas projects worth Rs 1.62 lakh cr across India
Prime Minister Narendra Modi on Saturday unveiled a series of oil and gas sector projects worth about Rs 1.62 lakh crore across the country from Bihar’s Begusarai district. The projects are spread across various states like Bihar, Haryana, Andhra Pradesh, Maharashtra, Punjab and Karnataka. The PM also flagged off four trains, including the Danapur-Jogbani Express (via Darbhanga-Sakri). Trains from Jogbani to Saharsa and Siliguri and Sonpur-Vaishali Express were also flagged off. Bihar Governor Rajendra Vishwanath Arlekar, Chief Minister Nitish Kumar and Deputy CMs Samrat Chaudhary and Vijay Kumar Sinha were present on the occasion. The PM dedicated to the nation the ‘First Oil’ from KG Basin and flagged off the first crude oil tanker from the ONGC Krishna Godavari deepwater project.
ONGC Board Approves JV with EverEnviro to Set up CBG Plants
State-run Oil and Natural Gas Corporation (ONGC) will form a joint venture with EverEnviro Resource Management Pvt. Ltd., India’s leading compressed biogas / RNG developer to set up compressed biogas plants (CBG) across the country. The board of ONGC at its meeting held recently considered and accorded in principle, an approval for formation of joint venture companies with EverEnviro and another entity to set up 15 CBG plants. The board also accorded, in principle, approval for formation of 50:50 Joint Ventures separately with both the entities either by ONGC or through its subsidiary (ies) associates. EverEnviro’s aims to establish over 100 CBG plants across India based on diverse feedstock, including municipal solid waste (MSW), agro waste, and agro-industrial waste. The organisation is already executing 20+ CBG projects across Madhya Pradesh, Uttar Pradesh, Delhi, and Punjab with a significant capital investment of nearly Rs 20 billion which will result into a robust output of 320 metric tons per day of CBG. Mr. Deepak Agarwal, Executive Director, EverEnviro Resource Management Pvt. Ltd. said, “We are honoured to partner with ONGC, one of the Navratnas of Government of India for bolstering domestic renewable energy production. Our vision is to attain a daily CBG output of 1000 metric tons on a pan India scale within the next five years. This partnership reflects our joint commitment towards achieving India’s energy transition goals by 2023 and promote our country’s environmental stewardship with reduced carbon emissions.”
OPEC+ Agrees to Extend Output Cuts Until Mid-Year
Anonymous sources within OPEC revealed on Sunday that certain OPEC members and allies, spearheaded by Russia, have reached an agreement to prolong voluntary oil output reductions from the first quarter into the second quarter of 2024. These cuts, initially totaling approximately 2.2 million barrels per day (bpd), were endorsed by OPEC+ in November, with Saudi Arabia leading by example by extending its own voluntary reduction. OPEC+ has been implementing successive output reductions since late 2022 to stabilize the market amidst heightened production from non-member producers like the United States, coupled with concerns regarding demand due to elevated interest rates in major economies. Oil analysts, for the most part, had expected the extension. While some pundits argued that some OPEC+ members would seek to increase supply with Brent prices above $80, it appears that OPEC+ remains cautious about bringing back additional supply amid ongoing uncertainty surrounding demand in China. Looking ahead, the next OPEC meeting in June will provide insight into how OPEC perceives demand growth in Asia developing in late 2024 and 2025. Thus far, the group of producers has managed to align its interests, but maintaining this unity may become more challenging if the anticipated surge in demand materializes later this year.