India looking at increasing ethanol blending with petrol to over 20%: Hardeep Singh Puri
India is looking at increasing its target to blend ethanol with petrol to more than 20% and has formed a committee under the NITI Aayog to look into it, Petroleum and Natural Gas Minister Hardeep S. Puri said on Wednesday (February 26, 2025). Addressing the Advantage Assam 2.0 business summit, he said 19.6% blending has already been achieved. “We will be looking at more than 20% blending of biofuel. Already a NITI Aayog group has been set up and they are looking into it,” he said. Mr. Puri said that all the fossil fuel production companies will achieve net zero by 2045, even though India has developmental challenges.
TAPI Pipeline to Remain Failure Without India and Pakistan’s Participation
During a cabinet meeting on February 7, President of Turkmenistan Serdar Berdimuhamedov urged Turkmen officials to accelerate the construction of the $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. While highlighting Turkmenistan’s energy policy for 2025, Berdimuhamedov stressed the need to modernize the energy sector on a priority basis to enhance the country’s oil and gas production capacity. When emphasizing reliable gas supplies to domestic and international markets, he urged for fast-track construction of the much-delayed TAPI pipeline (Afghanistan International, February 8; News Central Asia, February 10). The TAPI pipeline is a strategic energy transportation project, opening the Galkynysh gas field in Turkmenistan to the energy-starved markets of India and Pakistan (see EDM, June 6, 2023; News AZ, September 12, 2024). The TAPI pipeline is projected to transport 33 billion cubic meters (BCM) of natural gas each year from Turkmenistan’s gas field to the Indian city of Fazilka near the Pakistan border via Afghanistan and Pakistan through the construction of an approximately 1,800-kilometer (1,120-mile) long pipeline (Business Turkmenistan, August 23, 2022; Interfax, January 14). The preliminary cost of the pipeline is estimated at $10 billion (Interfax, January 14). The project was launched in 2018, but the construction work could not proceed due to security concerns in Afghanistan (Pakistan Today, January 18, 2022). The state-owned Turkmengaz, a Turkmen energy company, has already completed a 214-kilometer (133-mile) section of the pipeline in Turkmenistan. In the TAPI project, Turkmengaz holds an 85 percent stake (Interfax, January 14). Afghanistan, India, and Pakistan hold the remaining stakes with 5 percent of shares each (News AZ, September 12, 2024). In September 2024, Ashgabat and Kabul officially resumed work on the Afghanistan section of the TAPI gas pipeline project (Turkmen Portal, September 11, 2024). India has already raised concerns about this pipeline project on different grounds. In 2018, India objected to the price of natural gas and sought renegotiation (Economic Times India Times, August 22, 2018). India contended that the 2013 gas sale purchase agreement benchmarked the price of exported Turkmen gas at 55 percent of the prevailing crude oil price (Economic Times India Times, August 22, 2018). Moreover, transit fees and transportation charges would further increase the price of gas imported to India through the TAPI pipeline to over $10.5 per British thermal unit (mmBtu), which at the time was more than double the average rate of natural gas prices in India (Economic Times India Times, August 22, 2018). India also expressed dissatisfaction with the logistical and security challenges the project could face in constructing the pipeline through volatile areas in Afghanistan and Pakistan (South Asian Voices, November 6, 2024). New Delhi is also worried about becoming dependent on its arch-rival Pakistan for its gas supply. India considers that the pipeline would grant Pakistan leverage in the case of a future bilateral conflict, allowing Pakistan to potentially halt India’s gas supply (Economic Times India Times, September 17, 2024). New Delhi has not completely withdrawn from the project but has not firmly committed to joining it. India’s concerns make its participation in the TAPI pipeline uncertain, and due to this response, Pakistan is also losing interest in the project. Officials in Islamabad consider the TAPI pipeline project unsustainable for Pakistan without India’s participation. Pakistan would have to pay a transit fee of $500 million annually, not including a gas price of $7.5 per MMBtu (The News, November 6, 2024). The project would only be economical for Pakistan if India committed to paying a transit fee of $700–800 million per year to Pakistan. With India’s participation, Pakistan could save $200–300 million per year just in transit fees. India’s withdrawal from the project and Pakistan’s subsequent departure would mean an end to this pipeline, meaning Turkmenistan’s ambition and 30-year-long plans to export its gas to India and Pakistan’s major energy-starved markets would fail.
Oil India Limited CMD highlights bamboo-based 2G ethanol plant
At the Advantage Assam 2.0 Summit on Tuesday, Dr Ranjit Rath, Chairman & Managing Director (CMD) of Oil India Limited (OIL), underscored the company’s pioneering efforts in the energy sector, particularly the establishment of a bamboo feedstock-based second-generation (2G) ethanol plant at Numaligarh Refinery Limited(NRL). This initiative, he emphasized, aligns with Prime Minister Narendra Modi’s vision for import substitution and self-reliance in energy production. He stated, “This is one of the path-breaking initiatives under which we are doing this. If you recall, the Prime Minister’s clarion call for import substitution, and so bamboo feedstock-based 2G ethanol plant; this will be one of its kind in the whole world. And given that we have a lot of bamboo as a grass.”
Natural Gas is Still a Dirty Word, But It’s Here to Stay: WoodMac
Natural gas will play a critical role in the global energy transition, serving as a bridge fuel between coal and renewables, according to a new report from Wood Mackenzie. Despite concerns over emissions and affordability, gas is expected to remain a key part of the energy mix for decades, particularly in power generation, industrial processes, and transport. According to WoodMac, natural gas demand has surged 80% over the last 25 years, now accounting for nearly a quarter of global energy consumption. While electrification and renewables are expanding, they alone won’t be enough to meet rising global energy demand, especially in Asia and Europe. Gas provides flexibility, reliability, and a lower-carbon alternative to coal, which still powers 30% of the world’s energy needs. In Southeast Asia, countries like Vietnam, Indonesia, Malaysia, and the Philippines are expected to add up to 180 GW of new gas-fired power by 2050 to support economic growth. In China and India, natural gas demand is projected to rise 95 bcm by 2050, offering a practical path to reducing coal dependency. However, high LNG prices remain a key barrier to further adoption. Without a carbon price of $100/tonne, coal could remain the more attractive option for many Asian markets. Beyond power generation, natural gas is also enabling low-carbon technologies, including carbon capture and storage (CCS) and blue hydrogen. While green hydrogen remains too expensive for large-scale deployment, blue hydrogen—produced from natural gas with CCS—will help drive early adoption. WoodMac forecasts 40 Mt of blue hydrogen capacity by 2050. However, the report warns that gas is still a “dirty” word in climate discussions due to methane emissions and its fossil fuel status. Addressing LNG supply chain emissions and scaling up low-carbon alternatives like biomethane and e-methane will be critical to securing its long-term role. WoodMac argues that governments must balance net-zero goals with energy security, ensuring that gas remains a viable option if renewables and emerging technologies fail to scale fast enough. With the next wave of LNG supply expected in 2026, market dynamics could shift, making gas more affordable and reinforcing its position as an essential transition fuel.
India has lowest petroleum prices in the world, says Union Minister
Union Petroleum Minister Hardeep Singh Puri asserted that petroleum prices in India were the lowest in the world. The petroleum prices had come down in ‘absolute and real terms’ in the country, he said. The Minister was in the city to address a meeting on Budget with intellectuals and businessmen, on Friday. Addressing a press conference, Mr. Puri said that more oil was coming from the U.S., Brazil, Guyana, Suriname and Canada in the western hemisphere, while hinting at a price drop. ‘‘There is no shortage of oil. The number of India’s oil suppliers has already gone up from 27 to 40. And if more oil comes in, this is something that we welcome. Hopefully, the prices will come down,’‘ he said. The Minister, however, was quick to add that the government did not benefit from petroleum. The government, instead, had to give ₹220 billion to the oil companies. ‘‘In fact, petroleum prices have come down during the last three years. While a negative growth of -0.67% was witnessed with regard to petrol price, the diesel price increased marginally by 1.15%,’‘ he said. Referring to the Indian economy, the Union Minister said that India was part of the “Fragile Five” (a group of countries that were considered to be overly reliant on foreign investment for economic growth) when Narendra Modi became the Prime Minister in 2014. ‘‘The Indian economy developed significantly under his rule. It was the 10th largest economy then. India’s place improved and the country made strident steps since then: from 10th largest economy to the fifth largest and to the fourth largest. India will soon achieve a 4-trillion dollar economy,’‘ he said, adding, by 2027 India would become the third largest economy.
Good if we get Russian crude, but no major concern if we don’t: BPCL Director (Refineries) Sanjay Khanna
Fuel retailer Bharat Petroleum Corporation (BPCL) does not expect any disruption in supply of Russian crude to have significantly impact its profitability or crude supply security since discounts on Russian crude have shrunk considerably and there are numerous oil supply sources available, according to BPCL’s director (refineries) SANJAY KHANNA. As for its planned greenfield coastal refinery project in Andhra Pradesh, BPCL is open to taking on international oil majors as partners. A decision on this front is expected only when there is a “certain level of clarity” about this project. In an interview with SUKALP SHARMA, Khanna talks about oil imports and energy security, BPCL’s expansion plans, decarbonisation, and its energy transition and evolution path.
Oil Prices Inch Higher on Caspian Supply Disruption and Cold Weather in the U.S.
Crude oil prices rose today following a drone attack on the Caspian Pipeline Consortium and cold weather in the United States, both disruptive to production. At the time of writing, Brent crude was trading at $75.90 per barrel, with West Texas Intermediate at $71.91 per barrel. A statement by the Russian government said that flows along the Caspian Pipeline Consortium infrastructure had dropped by between 30% and 40% on Tuesday following the terrorist attack that involved seven unmanned aerial vehicles, per a statement by the CPC. Reuters said the attack was carried out by Ukrainian forces. In U.S. news, North Dakota’s Pipeline Authority has warned the state’s crude oil and gas production rate could suffer a decline of between 120,000 bpd and 150,000 bpd because of frigid weather. North Dakota is the third-largest oil-producing state in the country. Additional fuel for oil prices came from Riyadh, where top Russian and U.S. diplomats met to discuss bilateral ties and their restoration, causing anxiety in Europe about the possibility of a deal on the Ukraine war that would not reckon with European Union desires and preferences. Counterpressure on prices came from statements from U.S. officials suggesting that sanctions on Russia could be lifted soon, which would make exports much easier, boosting global oil availability. The deal is not done, however, and the U.S. and Russia will meet again before there is clarity on any issue discussed. Further counterpressure came with the news that oil exports from Iraq’s Kurdistan region could be restarted as soon as next month, after a prolonged pause amid disputes between Iraq and Turkey, to where the oil flows, and between the central government in Baghdad and the Kurdistan autonomous government on the issue of oil revenue sharing. Like the U.S.-Russia deal on Ukraine, the restart is not certain.
Iranian Oil Exports to China Rebound
Iranian crude oil flows to China have rebounded this month after a U.S. crackdown on shipments launched in late 2024 decimated them in January. In a last-minute push to sanction Iran, the Biden admin blacklisted a number of tankers, trading entities, and shipping companies as participants in sanctioned oil trade. The February average of Iranian oil exports to its biggest buyer is set to average 1.74 million barrels daily, according to preliminary data from Kpler cited by Bloomberg. The figure is an 86% increase from January flows. The boost in shipments was enabled by the opening of new receiving terminals and more ship-to-ship transfers, the Bloomberg report noted. The Trump administration has threatened to return to the maximum pressure approach of Trump’s first term in a bid to force Iran to give u developing a nuclear weapon. U.S. Treasury Secretary Scott Bessent said the target is to squeeze Iranian oil exports to a tenth of their current levels. Kpler said in a recent analysis that the return to a maximum pressure campaign against Iran on the part of Washington was likely to weaken oil exports to China, at least for a while. “Some buyers, particularly larger Chinese privately owned refiners, are likely to steer clear of such dealings as a precaution in the near term,” due to higher prices resulting from workarounds to avoid U.S. sanctions, Kpler analyst Homayoun Falakshahi wrote. China’s private oil refiners, the so-called teapots, are key buyers of Iran’s sanctioned crude, and the two sides have established a trade relationship favorable for both. Iran gets to sell its crude that nearly everyone else shuns, while China’s independent refiners, the so-called teapots, get cheap oil. However, the tougher U.S. squeeze on Iran’s oil industry will inevitably lift prices, which would affect buying decisions, as noted by Kpler.
Brazil Joins OPEC+
Brazil has joined OPEC+ two years after the group extended an invitation, but its membership will not be binding with regard to production cuts, the country’s energy minister said. At the announcement of the Brazilian government’s decision to join the group, Mines and Energy Minister Alexandre Silveira described OPEC as “a forum for discussing strategies among oil-producing countries. We should not be ashamed of being oil producers. Brazil needs to grow, develop and create income and jobs,” the AP reported. Brazil is already one of the biggest oil producers in the world but it has ambitions to climb in the ranks to the number-four spot from number seven, with a production target of 5.4 million barrels daily for 2030. Brazil has also been a focal point for non-OPEC production forecasts, regularly named alongside the United States, Canada, and Guyana as a hotspot for non-cartel production growth. Now, this will change even though the new OPEC+ member is under no obligation to comply with the OPEC+ production cuts. OPEC’s production, meanwhile, has been declining. The group booked dips for both December and January, with the January rate down by 50,000 bpd from December’s daily average of 26.53 million barrels, according to a Reuters survey. Supply from Iran and Nigeria dropped by 60,000 bpd each, the most among OPEC producers, according to the survey. The oil producer group was scheduled to start relaxing these production cuts starting in April but there have been reports that the rollback of the output caps could be delayed once again, in line with OPEC’s prioritization of actual market conditions rather than an agenda set in stone. With oil prices wobbly amid U.S.-Russia negotiations that could lead to the lifting of U.S. sanctions, OPEC will likely not be in any rush to stick to its plans for boosting production, seeing as these plans are very flexible to serve the purposes of the group.
Europe’s LNG Tango: A Love-Hate Relationship with Reality
The European Union, ever the conflicted protagonist in its own energy saga, is gearing up to throw its weight around in the global LNG market—again. A leaked draft from the European Commission suggests Brussels will “immediately engage” with LNG suppliers to stabilize energy prices, all while still pretending it’s on track to kiss fossil fuels goodbye by 2050. The cognitive dissonance is almost admirable. At issue is Europe’s chronic dependence on imported gas. Having sworn off Russian pipeline supplies (at least officially), the bloc now finds itself tethered to liquefied natural gas imports—primarily from the U.S., which it may soon be paying even more for if Donald Trump follows through on tariff threats. Meanwhile, Russia remains Europe’s second-largest LNG supplier, because, well, energy security is a funny thing when reality checks your moral grandstanding. Now, Brussels wants to emulate Japan’s strategy of investing in overseas LNG infrastructure to lock in long-term contracts, Reuters reported on Tuesday. Sensible, perhaps. But in true EU fashion, there’s a regulatory catch: European gas contracts must vanish by 2049 to meet the net-zero commitment. This means suppliers will be asked to commit to deals that evaporate just when they start getting lucrative. A tough sell. Meanwhile, natural gas prices have jumped to nearly $4/MMBtu, and power prices across Europe remain tethered to gas market volatility. The EU’s latest plan also includes joint LNG purchasing, an attempt at leveraging collective buying power to force lower prices. But as past attempts have shown, pooling desperation doesn’t necessarily translate to bargaining strength. The takeaway? Europe still needs LNG—more than it cares to admit. And the longer it dithers between energy realism and green ambition, the more it will pay.