IOC’s second compressed biogas plant, manufactured by CEID, inaugurated by CM Yogi Adityanath in Gorakhpur
Indian Oil Corporation Ltd’s second Compressed Biogas (CBG) plant was inaugurated by Uttar Pradesh Chief Minister Yogi Adityanath in Gorakhpur on Tuesday. The gas generation (EPCC 1) and gas purification (EPCC 4) aspects of the project were spearheaded by CEID Consultant and Engineering Pvt Ltd, known for its CBG technology approved by MOPNG, aimed at promoting clean energy solutions and environmental stewardship. By utilizing agricultural waste, the plant is set to generate a minimum of 20 tons of pure compressed Biogas (CBG) per day, making a significant impact on waste management and reducing the carbon footprint associated with traditional farming practices. The initiative supports CEID’s commitment to sustainable energy and aligns with UP government’s vision for promoting clean and renewable energy sources. Prince Gandhi, Founder & CEO, of CEID Consultant and Engineering Pvt Ltd expressed his pride in the project, stating, “I am thrilled to witness the successful commissioning of the CBG plant in Gorakhpur, marking another milestone in our partnership with IOCL. Our expertise in EPC services has enabled us to deliver innovative solutions that harness renewable resources like paddy straws for clean energy generation. With ongoing collaborations with GAIL and other PSUs and our recent MOU signing with IGL at India Energy Week, we are committed to accelerating the transition towards sustainable energy across India.” Abhinav Govil, DGM Marketing, CEID Consultant and Engineering Pvt Ltd further states, “As pioneers in sustainable energy solutions within the CBG sector, we take pride in implementing the second CBG plant in Uttar Pradesh. This plant signifies our dedication to utilizing agricultural waste, particularly paddy straw, to produce clean energy, generating 20 tons of CBG per day. Our first plant in UP, operating on multi feedstock and producing 5TPD CBG, located in the Hapur district, has been successfully operational for more than a year. With 14 additional plants scheduled for commissioning in UP within the next year, we eagerly anticipate continuing our journey towards a greener future.” By harnessing 200 tons per day of agricultural waste, the plant not only offers an eco-friendly solution to waste management but also fosters job creation within local communities by employing 120 individuals.
Blue Energy Motors’ LNG trucks cross 10 million kilometre on Indian roads
Pune-based Blue Energy Motors, a green truck manufacturing company has announced a significant milestone as its fleet of LNG trucks have cumulatively crossed the landmark of 10 million kilometres on Indian roads in various customer applications. The trucks while covering over 10 million kilometres have effectively helped reduce over 3,000 tonnes of CO2 emissions, which is equivalent to the environmental benefit provided by 1,20,000 mature trees. India’s trucking market is expected to grow four times larger by 2050 from 4 million trucks in 2022 to 17 million trucks, which will boost the nation’s economy and increase transportation emissions. With this projected growth, it’s crucial to ensure that green trucks contribute to a cleaner and more sustainable transport system. As per recent NITI Ayog report, LNG provides a compelling alternative to diesel trucks. It is expected that LNG HDV in total HDV sales per annum would reach 10 percent by 2032. Green trucks produce near-zero tailpipe emissions and offer opportunities for long-term fuel cost savings, making them effective replacements for current diesel trucks. Hence, the Indian government is proactively adopting policies and developing infrastructure for swift adoption of clean energy trucks. Anirudh Bhuwalka, CEO, Blue Energy Motors said, “Crossing the milestone of 10 million kilometres is a significant achievement for Blue Energy Motors and a testament to the efficiency and reliability of our zero-emission trucking technology. The government of India has been encouraging the use of alternate fuelled Green Trucks and has been providing relentless support to streamline infrastructure for early adoption of LNG trucks. We are committed in this journey to provide a cleaner and greener environment by decarbonising heavy-duty trucking and mitigating the impact of transportation on climate change.
Rajasthan Petroleum Dealers Association Withdraws Strike
It’s a big sigh of relief for people of Rajasthan as the petrol pump strike in Rajasthan has been withdrawn by Rajasthan Petroleum Dealers Association after holding talks with the state government. Rajasthan Petroleum Dealers Association announced that they have called off its strike on 11th March. They had called a strike demanding reduction in VAT imposed on petrol and diesel. The association withdrew its strike from 6 am on March 11. Association & Govt Talks The association said that the government had called for talks at 12 noon on Sunday, in which RPDA executive members Rajendra Singh Bhati, Sunit Bagai, Vijay Meena and Jaipur District President Ladu Singh, Secretary Amit Saraogi and Jaipur dealer Sandeep Bhardwaj were present. On behalf of the government, Minister Rajyavardhan Singh Rathore, Anandi, Secretary of Information Technology and Communications and officials of the Finance Department were present in the meeting. The conversation lasted for about an hour and was completely positive. ”Rajyavardhan Singh ji understood our views well and assured us that the government will take positive steps on our demands and he appealed to call off the strike to save the public from trouble”said Rajasthan Petroleum Dealers Association reported ABP News.
What Does China’s New Economic Growth Target Mean For Oil Prices?
China’s stunning economic growth was almost single-handedly responsible for the commodities supercycle from the late 1990s to the onset of the 2014-2016 Oil Price War, as analysed in full in my new book on the new global oil market order. This was characterized by consistently rising prices of the key commodities that the country required in its dramatic economic expansion. In 2013, China became the world’s largest net importer of total petroleum and other liquid fuels and, as late as 2017, its still high rate of economic growth allowed it to overtake the U.S. as the largest annual gross crude oil importer in the world. Late 2019 saw most of this activity grind to a halt as Covid hit the country, and the economic slowdown was exacerbated by its Draconian handling of the virus, with its ‘zero-Covid’ policy seeing complete shutdowns of major economic centres at the slightest hint of infection. Last week saw China officially announce its economic growth target for 2024 of “around 5 percent” – the same as last year’s, which it managed to beat by 0.2 percent. The key question now, given China’s enduring status as the world’s leading gross importer of oil, is whether can this be achieved again. One factor that cannot be underestimated in this question is the sheer political will to ensure that this growth target is met. China’s top political figures – including President Xi Jinping – are acutely aware of the potential for high youth unemployment caused by low economic growth to spiral into widespread protests. They know that just before the series of violent uprisings in 2010 that marked the onset of the Arab Spring, average youth unemployment across those countries was 23.4 percent. This is why China stopped publishing the youth unemployment data after June 2023’s figure showed this jobless rate at an all-time high of 21.3 percent – very close to the Arab Spring level. The previous November had seen the beginnings of anti-Covid lockdown protests in China, after a fire in Urumqi led to several deaths, which the leadership knows have the potential to change focus into broader anti-government movements if the economy does not maintain a high growth rate. The basic trade-off in China has long been the people’s acquiescence for most things, provided that the government provides them with what they need and want – food, a place to live, a job, education, healthcare, and the chance for their children to have even more opportunities. This is why towards the end of 2023, President Xi ordered several new stimulus measures to ensure that the government’s economic growth target – also “around 5 percent” then – was hit. This included CNY828 billion (US$115 billion) of reverse repurchase contracts announced by the People’s Bank of China (PBOC) on 20 October. On the same day, the central bank maintained record low lending rates for the one-year loan prime rate (of 3.45 percent) and for the five-year rate (of 4.2 percent), and implied that more monetary easing may be effected if required. Additionally, on 24 October, CNY1 trillion of new special sovereign bond issuance was approved, with the paper to be placed in Q4. Chinese government news channels stated that the bond proceeds would be allocated to local governments to help deliver growth. The budget adjustment also raised the cap on the general fiscal deficit to CNY4.88 trillion – or 3.8 percent of GDP, from the initially planned deficit of 3.0 percent. The effects of this latter measure partly washed through into the early part of this year too, Eugenia Victorino, head of Asia strategy for SEB in Singapore exclusively told OilPrice.com. “The incoming bond supply remains elevated, and this will require continued liquidity injections from the central bank,” she said last week. “Aside from a bigger bond supply, the central government will likely raise the pressure on local government to implement the budget in a timely manner and, assuming the run rate of government bond issue is accelerated in the coming months, growth in aggregate financing will likely pick up,” she added. “The 50 bps [basis points] reduction in reserve requirement ratio implemented in February [2024] has already injected CNY1 trillion in long term liquidity and this gives the PBoC some time to assess if there is need for further policy easing,” she concluded. Added to this, there are signs that China’s trade globally is beginning to markedly trend up again. Exports jumped 7.1 percent year on year to US$528 billion in January and February, following a 2.3 percent gain in December 2023, and ahead of market forecasts of a 1.9% rise. This was echoed in its trade surplus, which increased to US$125 billion over the January and February period, compared to just US$104 billion in the same period a year earlier, again beating market forecasts. Stronger global trade on its own is unlikely to be sufficient to achieve the official “around 5%” growth figure, though. To reach its target, Beijing will need to increase infrastructure investment and to do so it will need to overcome two key obstacles, Rory Green, chief China economist for GlobalData.TSLombard exclusively told OilPrice.com last week. The first obstacle is the lack of money in local government for such projects, and to deal with this the government is likely to set an expansive fiscal stance, with central government taking on greater debt and redistributing to weaker provincial authorities. “The deficit target of 3.2 percent, a central government special-purpose bond quota of CNY1 trillion, and a local government special purpose bond quota of CNY3.9 trillion, mark a departure from the hawkish fiscal stance over H2 2022 and H1 2023,” he added. The second obstacle is a lack of projects that would promote Xi’s longer-term policy objectives, and here the expansive fiscal position might indicate that Beijing is shifting to a cyclical pro-growth stance, thinks Green. “In addition to the stimulus announced at the NPC [National People’s Congress], we expect government borrowing – CNY1 trillion between central and provincial balance sheet) and pledged
PNGRB Advances Plans to Transport Green Hydrogen Through Natural Gas Pipelines
The Petroleum and Natural Gas Regulatory Board (PNGRB) is making strides in transporting green hydrogen through natural gas transmission lines by blending hydrogen with natural gas to integrate green energy into the nation’s infrastructure. With a considerable portion of the Natural Gas Transmission pipeline network already operational, PNGRB views this as a strategic step in bridging the gap between regions abundant in renewable energy resources and hydrogen-consuming centers such as fertilizer plants, refineries, and heavy iron and steel industries. In a recent mega-stakeholder interaction, PNGRB convened to discuss and gather inputs on a draft report developed in collaboration with the World Bank and study partner ICF. The report, titled ‘Pathways for Hydrogen Transmission in Natural Gas Pipelines and City Gas Distribution Networks,’ aims to outline the feasibility and regulatory framework for integrating hydrogen into the existing infrastructure. Dr. Anil Kumar Jain, Chairperson of PNGRB, emphasized the importance of hydrogen blending in natural gas pipelines and city gas distribution networks, underlining PNGRB’s commitment to ensuring the safety and integrity of the infrastructure. He also mentioned PNGRB’s efforts in formulating a global-level regulatory regime for the transportation of green hydrogen. The stakeholder interaction witnessed participation from representatives of various Ministries, Statutory/Autonomous bodies, research institutions, and Oil & Gas entities. Presentations from ICF, Petroleum and Explosives Safety Organization (PESO), GAIL (India) Limited, and Gujarat Gas Limited (GGL) shed light on initiatives and perspectives regarding hydrogen promotion in the country. PNGRB’s collaboration with the World Bank since August 2023 has focused on a comprehensive study, encompassing the mapping of hydrogen demand and supply, technical assessment of the existing pipeline network, commercial evaluation of the sector, and identifying policy and regulatory bottlenecks. The study aims to frame milestones until 2040 for the expeditious implementation of hydrogen blending in India. According to the draft study report, the total Hydrogen demand in India is expected to increase from the current demand of 6 – 7 MMTPA to 16 – 18.5 MMPTA by 2040, driven mainly by sectors such as ammonia, refineries, and transport. The report also recommends blending limits for various components in the transmission pipeline and city gas distribution networks, along with projections for additional capital and operational expenditures required for equipment and fittings. This mega-stakeholder interaction serves as a pivotal step towards achieving the Government of India’s target of 5 MMTPA green hydrogen production by 2030, as part of its clean energy agenda through the National Green Hydrogen Mission.
Rs 2.2 trillion revenue foregone due to excise duty cuts on petrol, diesel: Hardeep Puri
Union minister for petroleum and natural gas, Hardeep Singh Puri, announced on Saturday that the government forewent approximately Rs 2.2 trillion in revenue due to cuts in excise duty on petrol and diesel from November 2021 to May 2022. Addressing a press conference, Puri discussed the measures taken by the Modi government to manage fuel prices amidst global crude oil price fluctuations. Excise duty on petrol and diesel saw a reduction of Rs 13 and Rs 16 per litre, respectively, during the mentioned period, resulting in the revenue loss. Puri responded to queries about potential future cuts, emphasizing that decisions would hinge on geopolitical stability and international oil prices. “The decision (to cut petrol and diesel prices) can be considered if the world situation and oil prices remain stable. However, unforeseen events, such as global conflicts, can impact these decisions,” Puri said, referencing incidents like the Houthi attacks in the Red Sea and the ongoing Russian-Ukraine war. Highlighting that 85% of India’s crude oil needs are met through imports, Puri detailed the impact of the Russia-Ukraine war on crude oil supply. Despite potential sanctions, India diversified its sources and increased purchases from Russia.
Saudi Aramco Reduces Heavy Crude Supply to Asia
Saudi oil giant Aramco is cutting supply of its heavier crudes to Asia in April, due to field maintenance, despite meeting full volume nominations for next month, multiple sources familiar with the plans told Reuters on Monday. Most buyers in China and India will receive the full contractual volumes they had asked for, although the supply slate of grades is being reshuffled to include fewer barrels of heavier crudes, according to the unnamed sources who have spoken to Reuters. At least one Chinese buyer asking for additional volumes of Arab Medium and Arab Heavy has been denied, while at least one Indian refiner saw full volumes met, but with reduced heavy crude volumes, the sources told Reuters. Last week, Saudi Arabia raised the official selling prices of its crude for Asian buyers for April following the extension of the OPEC+ production cut agreement until the end of the first half of 2024. The price for the country’s flagship Arab Light grade was raised by $0.20 per barrel over the Oman/Dubai average, meaning April deliveries will cost $1.70 per barrel more than the Oman/Dubai average, up from $1.50 per barrel this month. At the same time, Saudi Aramco lowered its prices for European buyers, by between $0.60 and $0.70 per barrel. Prices for sales to the United States were virtually unchanged. The price hike to Asia came despite expectations by some in the oil industry that the Saudis would leave the April prices unchanged from March. Early this month, OPEC+ agreed to extend its production cuts as benchmark prices remained stubbornly range-bound, largely on expectations of weak demand growth and additional supply from non-OPEC producers that could satisfy most of the new demands coming this year. The rollover of the cuts, including Saudi Arabia’s extension of its extra voluntary production reduction of 1 million barrels per day (bpd), was widely expected by the market and failed to make any impression on oil prices.
GAIL slashes prices of CNG across 20 cities
GAIL India on Saturday announced slashing of compressed natural gas prices by ₹2.50 a kg in 20 cities, including Bengaluru, Patna, Ranchi and the Taj Trapezium Zone, brightening prospects of petrol and diesel rates cut as state-run energy firms are reducing retail prices of fuels ahead of the 2024 general elections. A “substantial reduction” in the prices of CNG was made across India in areas under its operation, GAIL said on Saturday. The price cut ranged from 2.7% to 3.6% in 20 places including Varanasi, Jamshedpur, Bhubaneshwar, Cuttack, Dewas, Meerut, Sonepat, Dehradun, Puri and Adityapur. GAIL’s decision coincides with the move of three major state-run oil marketing companies (OMCs) — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – reducing cooking gas rates by ₹100 per cylinder for all 360 million customers, as announced by Prime Minister Narendra Modi on Friday. “The burden of the price cut will be largely borne by OMCs as government gives cooking gas subsidy to only 103 million Ujjwala beneficiaries,” an executive working for an OMC said, requesting anonymity. Ujjwala beneficiaries — 103 million poor households – get an additional subsidy of ₹300 per 14.2 kg cylinder. Earlier on Wednesday, Mahanagar Gas Ltd (MGL), and on Thursday, Indraprastha Gas Ltd (IGL), announced CNG rates cut of ₹2.50 per kg. While MGL serve the Mumbai region, IGL serves Delhi and the national capital region. Both firms are promoted by state-run entities. GAIL promotes MGL and IGL is promoted by GAIL and Bharat Petroleum. “Although announcements happened on different dates, the decisions to cut fuel rates were coordinated. The same could be possible for petrol and diesel in the coming days,” a second person with direct knowledge of fuel pricing by state-run entities said, declining to be named. The three oil marketers have posted about ₹70,000 net profit in first three quarters of current financial year, as against combined net profit of ₹11.3789 billion in the entirety of 2022-23, and are expected to make significant profits even in the three months to March as average international crude oil rates are more or less stable, he said. State-run OMCs have not changed pump prices of petrol and diesel for 23 months. IOC pumps of Delhi have kept prices of petrol at ₹96.72 per litre and diesel at ₹89.62.
Democrats Seek Probe Into U.S. Oil and Gas Mergers
Nearly 50 Democratic Senators and Representatives are urging the Federal Trade Commission (FTC) to investigate the recent mergers in America’s oil and gas sector amid concerns that they would harm competition and hurt consumers. In a letter to FTC chair Lina Khan, the Democratic Members of Congress, led by Senate Majority Leader Chuck Schumer, wrote that the recent wave of oil and gas industry consolidation “threatens competition in the industry and could lead to higher prices and fewer choices for businesses across the supply chain, suppress worker wages, and make heating, cooling, and gas at the pump more expensive for consumers.” The lawmakers urge the FTC to fully investigate the announced mergers and oppose any acquisitions if it determines them to be in violation of antitrust law. “Contrary to disinformation spread by industry groups, these deals are not about efficiency, international competitiveness, or lowering costs; they are designed to pump more profits out of Americans’ pockets – plain and simple,” the Democratic Members of Congress wrote in the letter. “Fossil fuel companies have overwhelmingly identified investor pressure as the reason to keep prices high so they can continue to benefit from record profits. Americans are paying the price for Big Oil’s greed and are still struggling to keep up with gas prices higher than prepandemic levels.” Last year, Democrats had already raised the issue with the FTC when ExxonMobil and Chevron announced their respective mega deals. In November, Democratic lawmakers urged the antitrust regulator to “carefully consider all of the possible anticompetitive harms that these acquisitions present,” referring to Exxon’s proposed $60 billion acquisition of Pioneer Natural Resources and Chevron’s proposed $53 billion acquisition of Hess Corporation. Since Exxon and Chevron announced the acquisitions, many other companies, large and small, have entered into M&A deals, including Occidental and Chesapeake. The value of global upstream mergers and acquisitions this quarter is the highest first quarter since 2017, driven by frenzied consolidation in the U.S. shale patch, analysts told Reuters last month. Industry executives and analysts expect the consolidation drive in the U.S. oil and gas sector to continue amid high stock values and the desire of many firms to get their hands on more inventory for production in the top shale basin, the Permian.
ONGC Approves Rs 990 million Investment In Newly Created Green Arm
India’s largest oil and gas producer Oil and Natural Gas Corp., has approved a Rs 990 million equity investment in its newly created wholly-owned subsidiary ONGC Green Ltd. The company’s board has also accorded in-principle investment approval in additional equity of Rs 11 billion in ONGC Green, according to an exchange filing. This additional investment would be at a later date in furtherance of its business expansion, it said. ONGC Green ONGC Green Ltd. was incorporated as a wholly-owned subsidiary of ONGC on Feb. 27 to pursue renewable energy, bio-fuels, green hydrogen, and carbon capture projects. It is proposed to be engaged in renewable energy spaces like solar, wind, hyrbid, hydel, tidal and geothermal. It will also engage with renewable energy sources like biofuels and biogas, green hydrogen and its derivatives like green ammonia and green methanol. ONGC also stated that the company will also be involved in storage, carbon capture utilisation and storage, and the liquified natural gas business. The company was set up with an authorised capital of Rs 10 billion; the company subscribed to 1 million shares of face Rs 10, which is 100% of ONGC Green’s shareholding.