India ramps up security for petroleum refineries near western border
India has ramped up security and threat monitoring for Indian refineries and petroleum production facilities near the western border, people familiar with the matter said, citing preparations that include camouflaging exercises and activation of air defences. The heightened security covers installations that account for more than 38% of India’s total 257 million tonnes of annual refining capacity, located in the border states of Gujarat, Punjab, and Rajasthan “All security protocols are active, and both security agencies and refinery managements are prepared to thwart any attempt by hostile entities,” said a senior official who asked not to be named. Key petroleum installations under enhanced protection include Reliance Industries Ltd’s Jamnagar refineries, Nayara’s Vadinar refinery in Gujarat, HPCL Mittal Ltd’s Bathinda refinery in Punjab, and Vedanta Ltd’s Barmer oil fields in Rajasthan. India has capabilities to detect, intercept and destroy incoming ballistic missiles, ranking among the few nations with such capacities. “All air defence assets have been put at their highest levels,” said a second official, requesting anonymity.
U.S. Freeport LNG Export Plant Set to Resume Service After Outage
Freeport LNG in Texas is set to take more feedgas on Wednesday in a sign that the U.S. liquefied natural gas export plant is gradually resuming service after an outage on Tuesday, per LSEG gas flow data cited by Reuters. Freeport LNG, the company owning the plant, told the Texas environmental regulators on Tuesday that the interruption of power feed led to the shutdown of the three liquefaction trains at the export facility. Over the years, Freeport LNG has suffered more outages than other U.S. export facilities because it uses only electric motors for the liquefaction compressors, instead of gas turbines. GE, which has provided the motors, says that with 675 MW total electric power installed, Freeport LNG is the world’s largest all-electric LNG plant built to date. While all-electric driven liquefaction lowers emissions at the project, the plant is more susceptible to storms and other causes of power outages than other U.S. LNG export facilities. Freeport LNG has three operating liquefaction units, or trains, that have a combined baseload capacity of 1.98 billion cubic feet per day (Bcf/d) and peak capacity of 2.14 Bcf/d. The facility shipped its first LNG cargo in September 2019, and it was the fifth U.S. LNG export terminal to come online in the Lower 48 states. Shutdowns at Freeport LNG shut in more than 10% of U.S. LNG export capacity, which drives European benchmark gas prices higher and U.S. domestic gas prices lower. That’s because with lower volumes of gas for export, more gas is available domestically in the United States. Early on Wednesday, benchmark U.S. natural gas prices at the Henry Hub jumped by more than 5% to $3.640 per million British thermal units (MMBtu) as reports emerge that feedgas flows to Freeport LNG are recovering and as the early season heat is set to boost demand in the coming weeks.
India to save Rs 1.8 lakh cr on import bill on softening global oil prices
India, the world’s third largest oil importing and consuming nation, is likely to save as much as Rs 1.8 lakh crore on import of crude oil and LNG if the trend of softening international energy rates continues, Icra said Wednesday. India, which meets over 85 per cent of its crude oil needs through imports, spent USD 242.4 billion on buying crude from overseas in the fiscal year ended March 31, 2025. With domestic production meeting roughly half of the demand, it also spent USD 15.2 billion on import of liquefied natural gas (LNG) in the fiscal. Oil prices in international markets fell to over four-year low of USD 60.23 per barrel earlier this week on fears of rising global supply at a time when demand outlook is uncertain. Brent crude and US West Texas Intermediate crude, which fell to their lowest since February 2021, have since risen to USD 62.4 on signs of more Europe and China demand and less US output. Still the rates are USD 20 per barrel lower than March 2024 when petrol and diesel prices were cut by Rs 2 per litre each ahead of general elections. “Icra expects average crude prices for FY2026 (April 2025 to March 2026 fiscal year) to remain in the USD 60-70 per barrel range,” the rating agency said in a note. At these levels, earnings of upstream companies is estimated at Rs 25,000 crore for FY2026. Upstream companies are ones that produce crude oil. “However, there would be savings of Rs 1.8 lakh crore for crude imports and Rs 6,000 crore for LNG imports,” it said. For fuel retailers, the marketing margins on auto-fuels will remain healthy, while LPG under-recoveries are likely to reduce, Icra said. Uncertainty related to global tariffs and their impact on growth, coupled with an announcement by OPEC+ to steadily withdraw their production cuts, starting with 411,000 barrels per day addition from May 2025 and another 411,000 bpd from June 2025, have resulted in oil prices declining from about USD 77 a barrel as on March 31 to about USD 60-62. Stating that India meets a large portion of its domestic crude oil requirements through imports, Icra said in the scenario where crude remains in USD 60-70 a barrel range, the profit before tax for upstream players in FY2026 is expected to be lower by Rs 25,000 crore. In spite of this, Icra foresees the capex plans of domestic upstream players to remain intact. Marketing margins on auto fuels for oil marketing companies (OMCs) would remain above long term average of Rs 2.5-4 a litre and under recoveries on LPG are expected to reduce with decline in crude prices. While petrol and diesel prices are deregulated, the government controls cooking gas LPG prices. OMCs sell the fuel at way below cost and are compensated for the under-recovery by way of subsidy from the government. Lower LPG under-recovery and compensation by the government would support profitability of downstream companies, despite the increase in excise duty on auto fuels by Rs 2 a litre with effect from April 8, 2025. However, there would be inventory losses for refiners owing to the sharp decline in crude prices. Moreover, further hikes in excise duty can not be ruled out. Icra said the pricing for Administered Price Mechanism (APM) gas and LNG imported from Qatar are linked to crude oil prices. “Decline in crude prices will lead to a moderation in gas prices, which could translate to significant savings on term LNG imports. If crude oil prices sustain between USD 60-70 per barrel, Icra projects the savings in Qatar LNG imports at Rs 6,000 crore in FY2026 vis-a-vis FY2025,” the note added.