GSPC seeks LNG cargo for Oct-Nov delivery, sources say
India’s Gujarat State Petroleum Corp (GSPC) is seeking a liquefied natural gas (LNG) cargo for delivery between Oct. 23 and Nov. 5 to the Dahej terminal, two industry sources said on Tuesday. The tender closes on Aug. 27.
India’s crude oil production falls 2.9% in July 2024; petroleum product output sees 7.1% growth
India’s crude oil and condensate production declined by 2.9% in July 2024, registering a total output of 2.4 million metric tonnes (MMT), according to data released by the Petroleum Planning and Analysis Cell (PPAC). The decline is in comparison to July 2023, where production figures were higher. State-owned Oil and Natural Gas Corporation(ONGC) led the production figures with 1.6 MMT, followed by Oil India Limited (OIL) at 0.3 MMT, and Production Sharing Contracts/Revenue Sharing Contracts (PSC/RSC) contributing 0.5 MMT. In contrast, the total crude oil processed in the country saw a 3.2% rise in July 2024, reaching 22.6 MMT compared to the same period last year. Public sector undertakings (PSUs) and joint venture (JV) refiners processed 15.3 MMT, while private refiners accounted for 7.3 MMT. Of the total processed crude, 2.1 MMT was indigenous, with the remaining 20.5 MMT being imported. The production of petroleum products saw a significant increase, rising by 7.1% to 24.4 MMT in July 2024 compared to July 2023. Refinery production accounted for 24.1 MMT, while fractionators contributed 0.3 MMT. High-speed diesel (HSD) constituted 42.4% of the total production, followed by motor spirit (15.7%), naphtha (7.3%), aviation turbine fuel (6.1%), and petcoke (5.3%).
Exxon says oil and gas will still be the dominant sources of energy by 2050
Contrary to forecasts for oil demand to peak in the coming years, Exxon Mobil says oil and gas will remain the dominant sources of energy until the middle of this century. The oil major said in an outlook published this month that global oil demand will remain above 100 million barrels a day through 2050, even as the share of renewable powers grows. Broken down by source, it sees oil and gas accounting for 54% of the global energy mix by 2050, coal at 13%, nuclear energy at 6%, bioenergy at 10%, and renewables like wind, solar, and hydroelectric at 15%. That forecast stands in contrast to predictions from the International Energy Agency, which predicts that oil and gas demand will peak and plateau at 105.6 million barrels per day by 2029. Exxon, the leading oil and gas company in the US, pointed to a rise in the global population to 10 billion in 2050, up from 8 billion today. With half of the world’s population currently living below Exxon’s “modern energy minimum”—having enough energy for housing, infrastructure, jobs, and mobility—the company projects a 15% increase in global energy use is necessary for reliable energy worldwide by 2050. That rise in energy use will be predominantly driven by a 25% increase among developing countries, whose current energy problems put inhabitants at risk from harmful cooking fuels, limited electricity, and poverty, the report says. Developed countries, on the other hand, will decrease energy use by 10% due to improved efficiency. The report says that even greater adoption of electric vehicles won’t make a dent in oil and gas usage. “What many don’t realize is that making gasoline is but one relatively small use for oil,” Exxon said in its report, adding that the majority of the world’s oil is used for industrial processes like manufacturing, and for transportation like shipping, trucking, and air travel.
Independent natural gas transport system operator likely soon
The oil ministry may soon float a cabinet note on setting up an independent transport system operator (TSO) to manage the common carrier capacity of natural gas pipelines to give all gas marketers a level playing field in the country, according to people with knowledge of the matter. The common carrier capacity of a gas pipeline, which averages about a quarter of the full capacity, is managed by the company that laid the pipeline and now operates it. In most cases, these pipeline operators such as GAIL and GSPC also have gas marketing businesses. In this dual role, the operator also becomes a competitor for its pipeline customer in the gas marketing business. To remove this perceived conflict of interest, and allow fair, transparent and non-discriminatory access to the gas grid to all gas marketers, the government is planning to set up the TSO, the people cited above said. The common carrier capacity of a gas pipeline, which averages about a quarter of the full capacity, is managed by the company that laid the pipeline and now operates it. In most cases, these pipeline operators such as GAIL and GSPC also have gas marketing businesses. In this dual role, the operator also becomes a competitor for its pipeline customer in the gas marketing business. To remove this perceived conflict of interest, and allow fair, transparent and non-discriminatory access to the gas grid to all gas marketers, the government is planning to set up the TSO, the people cited above said.
Gas demand uptick driven by power sector bumps up India’s LNG imports in April-July
Growth in domestic demand for natural gas amid reasonable prices and ample availability of liquefied natural gas (LNG), or super-chilled gas, in the international market led to a double-digit growth in India’s LNG imports in the first four months of the current financial year (FY25). Notably, the uptick in imports came amid a growth in domestic gas production as well. The consumption growth was primarily driven by the power sector, given that the government’s thrust on raising power production to meet high summer demand led to higher-than-usual electricity generation by gas-based units. The country’s LNG imports rose 13.1 per cent year-on-year in April-July to 11,423 million standard cubic metres (mscm), while natural gas consumption was higher by 8.6 per cent at 23,364 mscm, per latest provisional data available with the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry. Net domestic natural gas production for the four-month period was 11,941 mscm, up 4.6 per cent year-on-year. For the April-June quarter (Q1)—the peak summer quarter in most parts of India—power generation by gas-based plants jumped 62.5 per cent year-on-year to 13.49 billion units (1 unit is 1 kilowatt hour), per data from the Central Electricity Authority (CEA). The overall plant load factor (PLF)—capacity utilisation of power generation units—for gas-based plants in Q1 was almost 25 per cent, up from 15.3 per cent in the year-ago quarter. PLF for gas-based power plants in June this year was 25.8 per cent, up from 17 per cent in June 2023. Festive offer For April-July, the PLF for gas-based power plants was 22.2 per cent, against 15 per cent a year ago. Power generation from these units in April-July jumped to 16.17 billion units from 10.54 billion units in the corresponding four months of last year.