ONGC looks at mini-LNG plants to evacuate natural gas from isolated fields
State-owned Oil and Natural Gas Corporation (ONGC) is looking to set up mini-LNG plants to evacuate natural gas from wells located in areas that are not connected with pipelines. The firm has identified five sites in Andhra Pradesh, Jharkhand and Gujarat for setting up mini plants at wellhead that will convert the gas pumped out from under the ground into liquefied natural gas (LNG) by super cooling it to minus 160 degrees Celsius. This LNG will be loaded on cryogenic trucks and transported to the nearest pipeline where it will be reconverted into its gaseous state and pumped into the network for supply to users like power plants, fertilizer units or city gas retailers. ONGC has floated a tender seeking manufacturers/service providers to tap stranded natural gas, according to the tender. The locations identified for setting up mini-LNG plants in the tender are two sites at Rajahmundry in Andhra Pradesh and one each at Ankleshwar in Gujarat, Bokaro in Jharkhand and Cambay in Gujarat. ONGC in the tender document said while the country has an extensive network of pipelines that connect supply and demand centres, there remains a substantial volume of stranded gas (non-connected) that is required to be tapped for enhancing domestic supplies and meeting the needs of nearby demand centres.
Gujarat Leads India’s Green Transition
Gujarat has taken center stage in India’s renewable energy revolution, notably under the leadership of Prime Minister Narendra Modi. The state, historically under Modi’s transformative governance, has demonstrated significant progress over the last 23 years. With a total power generation capacity of 52,424 MW, Gujarat stands as a beacon for renewable energy, attributing 50 percent of this to renewable sources. The state’s commitment to clean energy saw a remarkable leap from 45,912 MW to 52,424 MW in just a year, showcasing impressive advancements and a determination to lead India’s sustainability mission. Strategic investments in solar, wind, and hybrid projects, bolstered by a conducive policy environment, have been pivotal. The recent Renewable Energy Summit 2024 further highlighted Gujarat’s role as a leader, involving global stakeholders to discuss the future of clean energy. Having invested substantially in plants producing renewable energy, surpassing its conventional power investments, Gujarat’s advancements are not confined to infrastructure alone. Its policies, such as extending the Gujarat Renewable Energy Policy to 2028, underline the state’s emphasis on a sustainable agenda, empowering solar and wind energy solutions. Landmark projects like Modhera Solar Village and Charanka Solar Park exemplify Gujarat’s successes in renewable energy. These initiatives have yielded not only environmental benefits but have also been drivers for economic growth and social inclusion, as seen with the energy self-sufficiency at Modhera, which reduced resident electricity costs significantly.
Oil Prices Start the Week in Decline on Bearish Economic Data From China
Crude oil prices were falling at the start of the week following the latest economic news from China which was interpreted as bearish for oil demand. That latest news was inflation data for September, which showed consumer prices had only gone up modestly, by 0.4%, falling short of economist expectations of 0.6% as shared with Reuters. The September consumer price figure was also the slowest price rise in three months, Reuters noted in its report. Lower consumer prices are normally bullish for oil prices because the lower the prices, the stronger the consumption but in this case the dominant interpretation appears to be focusing on weaker prices as reflection of weaker demand that will only weaken further as inflation slows. “China faces persistent deflationary pressure due to weak domestic demand. The change of fiscal policy stance as indicated by the press conference yesterday (Saturday) would help to deal with such problems,” the chief economist of Hong Kong-based Pinpoint Asset Management told Reuters. On Saturday, the Chinese government announced it would be injecting further stimulus into the economy, which should have been positive for oil prices. However, Beijing did not elaborate on the size of the stimulus package, which would be in the form of “significantly increased” debt buying from local governments and subsidies to low-income households. Apparently, the only thing traders wanted to hear from that update was exactly how much the Chinese government would spend on these additional stimulus measures. As a result, oil traders forgot about the Middle East temporarily and focused on the world’s largest oil importer yet again, betting that whatever stimulus it offers, it would not be enough to prop up global stock and commodity markets. That’s despite reports from Friday that the U.S. will expand its sanctions against Iran, targeting its so-called ghost fleet of oil tankers. “These measures will help further deny Iran financial resources used to support its missile programs and provide support for terrorist groups that threaten the United States, its allies, and partners,” National Security Adviser Jake Sullivan said, as quoted by Reuters.
Indian company among dozen sanctioned by US for illicitly carrying Iranian oil
An Indian shipping firm is among the dozen-odd companies sanctioned by the US for allegedly carrying Iranian oil for sale to buyers in Asia days after slapping restrictions targetting Iran’s energy trade for its October 1 attack on Israel. Gabbaro Ship Services, the India-based company, was involved in the transport of Iranian petroleum as the technical manager of crude oil tanker Hornet and knowingly engaged in a significant transaction for the transport of petroleum from Iran as part of a ‘Ghost Fleet’, the State Department alleged. The latest American sanctions against several companies across the world comes in response to Iran’s October 1 ballistic missile attack against Israel. “This attack targeted Israel’s most populated city, Tel Aviv, and could have killed hundreds if not thousands of innocent people,” US National Security Advisor Jake Sullivan said. Following that attack, the US had made it clear that Iran would face severe consequences, he said, and added, the Departments of the Treasury and State on Friday announced the “new and significant measures to more effectively target Iran’s energy trade.” “The new designations today also include measures against the ‘Ghost Fleet’ that carries Iran’s illicit oil to buyers around the world. These measures will help further deny Iran financial resources used to support its missile programmes and provide support for terrorist groups that threaten the United States, its allies, and partners,” Sullivan said. The Treasury claimed Iran’s oil exports are enabled by a network of illicit shipping facilitators in multiple jurisdictions which, “through obfuscation and deception,” load and transport Iranian oil for sale to buyers in Asia. Prominent among them include United Arab Emirates-based Max Maritime Solutions FZE (Max Maritime), which used vessels under its management to conduct multiple ship-to-ship transfers of Iranian oil with vessels affiliated with the US-designated National Iranian Tanker Company (NITC), it alleged. The NITC moves Iranian oil for National Iranian Oil Company (NIOC) to transport it to refineries in the China. Among the companies sanctions by the State Department are Suriname-based Strong Roots Provider NV, Glazing Future Management NV, Engen Management NV; India-based Gabbaro Ship Services Pvt Ltd; Malaysia-based Alya Marine Sendirian Berhad, and Hong Kong-based Celia Armas Ltd. Secretary of the Treasury Janet L Yellen said, “Today’s sanctions target Iranian efforts to channel revenues from its energy industry to finance deadly and disruptive activity with dangerous consequences for the region and the world. Yellen described deadly and disruptive activity as those including development of Iran’s nuclear programme, the proliferation of ballistic missiles and unmanned aerial vehicles, and support to regional terrorist proxies. “We will not hesitate to take further action to hold Iran accountable,” she said.