OMCs unlikely to cut fuel prices despite fall in crude rate
Oil marketing companies (OMCs) are not likely to reduce the transport fuel prices in the domestic market even as crude prices fell below $85 a barrel in the international market, lowest since January 14, 2022. An official from one of the OMCs, on condition of anonymity, said oil companies have suffered a major loss in the past few quarters, thus there is no scope to cut the fuel price. “It is not only one company but all companies have suffered losses when crude price was high in the international market. Therefore, I don’t think there is any reason to cut down the price right now,” said the official. According to the oil marketing companies, Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) collectively lost Rs 184.80 billion on holding petrol and diesel prices. These companies said the losses were due to erosion in the marketing margin on petrol, diesel and domestic LPG. In the April to June quarter 2022, BPCL posted a loss of Rs 62.91 billion, IOCL reported a net loss of Rs 19.95 billion and HPCL’s loss was at Rs 101.97 billion. “Oil industry is volatile; I won’t be able to comment when the oil marketing companies make up their losses. In another word, the prices are not going to change in the next few months, “said the official. A Fitch report on BPCL credit outlook says: “We believe near-term prices will remain a function of the government’s efforts to balance OMCs’ financial health with inflationary and fiscal pressures. However, the marketing segment should turn profitable from FY24, as crude oil prices fall to Fitch’s assumption of $80 per barrel,” the report further says. International crude oil prices have been under pressure due to fear of global recession and rising interest rates. Brent Crude Future, the benchmark for the crude price, on Monday, (6.52 pm IST) was trading at $85.65 a barrel, down from the peak of $125 in May. However during the April to June quarter, oil companies did not revise petrol and diesel to tackle inflation in the country. Usually these companies revise oil prices on a daily basis, in line with international prices. India crude oil basket averaged $92 per barrel in September, down from $116 in June. In a nutshell Crude prices fell below $85 a barrel in global market, lowest since Jan 14, 2022. Oil companies collectively lost Rs. 184.80 billion on holding petrol and diesel prices. India crude oil basket averaged $92 per barrel in September, down from $116 in June.
ONGC gets better price for oil under new rules
India’s Oil and Natural Gas Corp has for the first time sold oil through a three-month local tender, commanding $5-$8 per barrel more than existing rates under new rules that allow producers marketing freedom, industry sources said. ONGC, the country’s top oil explorer, accepted bids at that level through auction of light sweet oil from its western offshore field, including supplies from the country’s flagship Mumbai High fields, they said. In June India abolished a rule that said oil from blocks awarded prior to 1999 must be sold to government-nominated customers, mostly state refiners. That meant producers such as ONGC and Oil India often sold oil from those blocks at below market rates. ONGC had offered 33 lots of 412,500 barrels each – 26 cargoes from Uran and seven cargoes from Mumbai offshore – for sale starting Nov. 1 at minimum 50-cent premium over the average monthly price of Brent, according to a tender document seen by Reuters. Western offshore assets, including the Mumbai High fields, account for about 70% of ONGC’s annual output of nearly 20 million tonnes, or roughly 400,000 bpd. All the cargoes were sold to state refiners except one, which was awarded to Reliance Industries Ltd, sources said. State refiner Hindustan Petroleum bought 15 cargoes; Mangalore Refinery and Petrochemicals (MRPL.NS) bought five; and Bharat Petroleum Corp was the highest bidder for three, the sources said. Indian Oil Corp, the country’s top refiner, got one cargo while its subsidiary Chennai Petroleum Crop was awarded eight, the sources said. Indian refiners bid to pay a premium of $1.80-$1.85 per barrel for cargoes from Uran, where supplies come through a pipeline, $3.8-$6.5 per barrel for offshore cargoes and about $1.55 per barrel for a parcel from Panna Mukta field, they said. Uran cargoes fetch a lower premium as local levies make the crude costlier than offshore supplies. Sources said ONGC hopes to get better participation in subsequent tenders. None of the companies involved responded to Reuters’ requests for comments. India, the world’s third-biggest oil importer and consumer, imports more than 85% of its oil, and bars crude exports.
Gas price review panel seeks more time
Natural gas is a fossil energy source that formed deep beneath the earth’s surface. The government-appointed panel for reviewing the pricing of natural gas has sought more time to submit its report as it does a tightrope walk of striking a balance between the expectations of producers and consumers, sources said. The panel headed by former planning commission member Kirit S Parikh was tasked to suggest a “fair price to the end-consumer” by the end of September. Given the enormity of the task, the committee wanted 30 more days to finish the report but the government wants it to wrap up the work by mid-October, two sources with knowledge of the matter said. A decision on the exact duration of the extension will be taken next week after oil secretary Pankaj Jain returns from his overseas trip, they said. Natural gas is a fossil energy source that formed deep beneath the earth’s surface. It is used to generate electricity, produce fertiliser, convert into CNG to run automobiles and piped to household kitchens for cooking and heating. It is also used in making glass, steel, cement, bricks, ceramics, tile, paper, food products, and many other commodities as heat sources. Its prices remained docile till last year but have shot up in recent months, raising the cost of production of user industries in general and city gas operators that sell CNG to automobiles and piped cooking gas to households, in particular. To keep rates under check so that they do not add fire to already high inflation, the government formed the committee to review the way prices of gas produced in India are fixed. The panel includes representatives of the gas producers association as also state-owned producers ONGC and OIL, a member from private city gas operators, state gas utility GAIL, a representative of Indian Oil Corporation (IOC) and a member from the fertiliser ministry. Sources said the committee has so far held two meetings but is no way near formalising its recommendation. The fault lines were clearly visible in the very first meeting. While the producers insisted on complete market freedom as had been guaranteed in the contracts they signed for finding and producing the fuel, consumers wanted a “fair price”, sources said. Producers argue that artificially controlling prices would dry up investments in exploration, consumers particularly the city gas sector felt that the environment-friendly fuel would lose out to other hydrocarbon fuels if the prices were not reasonable, they said. At the second meeting, there was an agreement that an attempt has to be made to see that investments in exploration are not dissuaded. At the same time, the momentum that the city gas sector has got should not be disturbed. The panel is now collecting data points from both sides to arrive at an informed decision, they said, adding that the committee will have to meet more often if only a 15-day extension is given. The Modi government had in 2014 used prices in gas surplus countries to arrive at a formula for locally produced gas. Rates, according to this, are set every six months — on April 1 and October 1 — each year based on rates prevalent in gas surplus nations such as the US, Canada and Russia in one year with a lag of one quarter. The rates according to this formula were subdued and at times lower than the cost of production till March 2022, but rose sharply thereafter, reflecting the surge in global rates in the aftermath of Russia’s invasion of Ukraine. The price of gas from old fields, which are predominantly of state-owned producers like ONGC and Oil India Ltd, was more than doubled to USD 6.1 per mmBtu from April 1, and is expected to cross USD 9 per mmBtu at the next review due on October 1. Similarly, the rates paid for gas from difficult fields such as deep sea KG-D6 of Reliance Industries went up to USD 9.92 per mmBtu from April 1 against USD 6.13 per mmBtu. They are expected to rise to USD 12 per mmBtu next month. The panel has been asked to recommend a fair price to end-consumers and also suggest a “market-oriented, transparent and reliable pricing regime for India’s long-term vision for ensuring a gas-based economy,” according to an order of the oil ministry. The government wants to more than double the share of natural gas in the primary energy basket to 15 per cent by 2030 from the current 6.7 per cent. The sources said the increase in gas price is likely to result in a rise in CNG and piped cooking gas rates in cities such as Delhi and Mumbai. It will also lead to a rise in the cost of generating electricity but consumers may not feel any major pinch as the share of power produced from gas is very low. Similarly, the cost of producing fertiliser will also go up but as the government subsidises the crop nutrient, an increase in rates is unlikely.
Why India Is Suddenly Buying Less Russian Crude
India, which has been buying large volumes of Russian crude since the Russian invasion of Ukraine to take advantage of cheap oil, is set to slow purchases of Russian oil this month and look to more African and Middle Eastern supply as shipping rates on longer voyages have jumped. Before the war in Ukraine, India was a small marginal buyer of Russian oil. After Western buyers started shunning crude from Russia, India became a top destination for Russian oil exports alongside China. Indian refiners haven’t expressed hesitation to deal with Russia—their primary incentive to buy has been the much cheaper Russian oil than international benchmarks and similar grades from the Middle East and Africa. However, with a recent surge in freight rates, Russian oil doesn’t look so cheap. Moreover, the travel time from Russia’s Far East, where the ESPO grade is loading for exports, is a month to India, compared to a week necessary for a Middle Eastern cargo to reach India. In September, Indian refiners are not expected to buy any ESPO crude from Russia because of the higher shipping rates, industry sources told Reuters on Thursday. “On net back basis after factoring in the freight, the landed cost of ESPO is turning out to be $5-$7 a barrel costlier in comparison to similar grades from other countries such as UAE’s Murban,” an Indian industry source with knowledge of the deals and prices told Reuters. Refiners in India prefer to purchase crude from Africa and the Middle East instead of Russia’s ESPO, the source added. This shift in India buying comes just a few months after Russia overtook Saudi Arabia to become India’s second-largest supplier of crude oil earlier this year. As a result of no ESPO loading for India this month, more volumes of that grade would likely go to China, which is much closer to Russia’s Far Eastern oil export ports.
Natural Gas Prices Continue Plunge As Europe Fills Up Ahead Of Schedule
Europe’s natural gas prices have continued their sharp pullback across UK and European benchmarks as the continent has filled up its gas storage ahead of schedule. Benchmark Dutch front-month futures fell 6.7% on Monday while the UK Natural Gas Futures benchmark crashed 15.2 per cent to £2.43 per therm–a level well below all-time highs posted only a month ago. Gas prices have now eased 50% from record highs last month, thanks to Europe managing to successfully top off supplies ahead of winter while Russia has not meaningfully escalated the energy crisis since it cut off flows via the Nord Stream 1 pipeline a month ago. The plunge has brought some relief after a furious rally, though futures are still trading multiples higher than a year ago. Europe is on the brink of a recession, with inflation running at the highest in decades in several countries. European Governments have collectively set aside some 280 billion euros ($278 billion) in relief packages. Europe’s gas storage is running about nine weeks ahead of last year, an impressive feat even after flows from Russia have been severely curtailed. European gas storage levels are close to 90%, and have even surpassed the 5-year average, according to data from Gas Infrastructure Europe (GIE). Analysts at Standard Chartered Plc have said that President Vladimir Putin’s gas weapon will be effectively blunted by Europe’s inventory build, with Europe set to go through winter “comfortably” without Russian gas. That said, Europe will have to pay a heavy price: the cost of replenishing natural gas stocks is estimated at over 50 billion euros ($51 billion), 10 times more than the historical average for filling up tanks ahead of winter. Another big factor driving the gas price decline: inclement weather. Hurricane Ian is currently hurtling toward Florida and the Southeast and could hit the coastline later this week. Forecasters have predicted that Hurricane Ian could turn into a major hurricane with winds reaching 111 mph or greater by the time it makes landfall in the U.S.
Small Players Are Struggling To Survive In The Booming LNG Market
The surge in LNG prices has caused the international market for the fuel to concentrate in the hands of several large players, with a multitude of small LNG traders getting squeezed out. Reuters noted in a report today that the physical LNG market had swelled twofold since 2011, which has led to the increase in the numbers of LNG traders, especially small ones. These small traders, according to the report, accounted for a fifth of China’s imports of the liquefied fuel. The price spike that came amid Europe’s energy crisis, however, has left many of these small players struggling, giving the upper hand to larger LNG traders with the means to weather the price shock and take advantage of it. The price for a cargo of liquefied natural gas, the report notes, has risen from between $15 to $20 million in 2020 to between $175 and $200 million today. This has reflected an increase of benchmark LNG prices from less than $2 per mmBtu in 2020 to $57 in August this year. Prices have eased since hitting that high but they remain significantly elevated. “The biggest challenge facing every market participant right now is credit,” the head of one small LNG trader that had to shrink its operations told Reuters. “The ballooning of LNG cargo values, along with the spike in volatility, has … put quite a strain on those players operating with smaller balance sheets,” the managing director of LNG consultancy Capra Energy said. The higher prices are going nowhere, too. According to a recent study by Rystad Energy, commissioned by the API and the International Association of Oil & Gas Producers, Europe’s demand for U.S. LNG may have been underestimated in earlier forecasts. In fact, Rystad said, demand could grow by as much as 150 percent between 2021 and 2040. With LNG producers having to play catch-up with demand, chances are that the LNG market will remain dominated by large players.
Oil Prices Are About To Reverse Course
“That would be the road to hell for America,” JP Morgan’s CEO Jamie Dimon said last week, referring to a suggestion that all big banks divest from the oil and gas industry. In the same week, Aramco’s chief executive warned that years of underinvestment in new oil production are beginning to bear fruit, which is an undersupplied market. Despite these statements that suggested oil prices should move higher, oil fell for much of the week. Yet it wasn’t dragged down by fundamentals. Oil prices are down because many traders and investors are bracing for a recession. The bad news is that even in a recession, oil prices can go higher, and this is exactly what some of those banks that kept JP Morgan company at last week’s Congress hearing expected. Actually, JP Morgan was one of the bullish forecasters. Last week, the banking major’s analysts wrote in a note that they expected Brent crude to rebound to $101 in the fourth quarter. The analysts cited tighter supply as the reason for their forecast. Goldman Sachs is even more bullish. Three weeks ago, the bank’s analysts said Brent could hit $125 next year despite the oil price cap touted by the G7 as a tool both for keeping the market supplied with Russian oil and for lowering prices. They remain bullish to date. Morgan Stanley is a little more modest in its price expectations, seeking Brent crude at $95 per barrel in the last quarter of the year. It’s worth noting that this is a downward revision of the bank’s price outlook for the fourth quarter, which happened two weeks ago, prompted by growing recession fears. UBS also revised down its price expectations earlier this month, again citing recession concerns as well as the continued flow of Russian oil to Asian importers. That downward revision, however, brought Brent to $110, with analysts noting it could rise to $125 by the end of the third quarter of 2023. The reasons that the Swiss bank gave for the expected rebound are as interesting as they are worrying. According to UBS, oil prices wouldn’t rebound because of a recovering global economy. They would rebound because of the greater demand for oil products for electricity generation and because of tighter overall markets as the U.S. ends its SPR oil sale program. During the current quarter, oil prices have slumped by 20 percent, Bloomberg noted in a report on bank forecasts about its price. The reason, once again, had nothing to do with supply and demand dynamics. It had a lot to do with central bank policies and specifically the Fed’s aggressive move to rein in inflation by a quick succession of rate hikes that have pushed the dollar a lot higher, making commodities priced in the currency more expensive. On the fundamental front, the G7 is pushing ahead with the oil price cap, even though Russia said that it would simply not sell oil to a country enforcing a price cap. The EU, for its part, is currently discussing yet another package of sanctions against Moscow following the news that four eastern Ukrainian regions would be holding referendums to join the Russian Federation. Related: OECD: Ukraine War Will Hurt Global Economy More Than Expected Meanwhile, OPEC+ keeps falling well short of its production targets, and this will likely continue. In addition, some analysts expect the cartel to implement more production cuts, further squeezing global supply. In the U.S., inventories in the strategic petroleum reserve are at the lowest in decades, and this has worried some. Others, like Robert Rapier, have pointed out that the SPR is not as vital for the country’s supply as it used to be decades ago when the U.S. was heavily dependent on oil imports. What the above suggests is what Aramco’s Nasser warned about last week. The oil market is not in balance, and supply is getting tighter because there is little in the way of new supply to make up for natural depletion, which has been accompanied by other factors such as political instability and U.S. sanctions on large producers. At the same time, with the EU tightening the sanction screws on Russia, chances are that gas prices will remain elevated, which will result in what UBS noted as one factor for higher oil prices: greater demand for fuels to use in the generation of electricity instead of even costlier natural gas. “The consequence of global inventory drawdowns is that once demand picks up, the upshot in prices will happen all over again,” Morgan Stanley global oil strategist Martijn Rats told Bloomberg. “For now, demand has taken a step back, but the supply picture hasn’t changed that much; the supply ceiling is not that far away at all. As soon as demand picks up, we will have the same price pressures in the market again.” In a nutshell, this is the ultimate reason why oil prices will likely soon be on their way back up. Supply growth is stalling while demand is about to pick up. And depending on how strongly it picks up, we could see a lot higher oil prices next year.
IndianOil launches domestic production of aviation fuel AVGAS 100 LL
In a big step towards reducing dependence on imports to meet energy needs the government-run Indian Oil Corporation (IOC) has launched domestic production of AVGAS 100 LL, a special aviation fuel meant for piston engine aircrafts and unmanned ariel vehicles. “We are undergoing a remarkable transformation which is almost revolutionary. We are reducing dependence on imported fuels by promoting biofuel blending, green hydrogen and introduction of electric vehicles,” said Hardeep Singh Puri, Minister of Petroleum and Natural Gas & Housing and Urban Affairs, while addressing the event to launch AVGAS 100 LL. The launch event hosted by Indian Oil Corporation at Hindan Air Force Station witnessed participation by senior officials from the Indian Air Force, Flying Training Organisations and the ministries of petroleum and civil aviation. At present AVGAS 100 LL is completely imported product. The domestic production of AVGAS 100 LL produced by Indian Oil at its Gujarat Refinery will make flying training more affordable in India. This product which fuels the aircraft operated by FTOs and Defense forces is being imported for decades by India. Indian Oil’s R&D, Refineries and Marketing teams have achieved this feat of indigenous production and have offered price advantage to the industry, according to an official statement released by the Ministry of Petroleum & Natural Gas. Talking to ANI SM Vaidya, Chairman of Indian Oil Corporation Ltd (IOCL), said the indigenous production of AVGAS 100 LL will lead to significant savings in foreign exchange for the country. Vaidya expressed hope that India would soon become self-reliant in AVGAS 100 LL production. India’s consumption of AVGAS 100 LL stands at around 3,000 kilo litre per year. IOCL has been importing this special aviation fuel. Now it will start producing it at its refinery in Gujarat. Vaidya said with the new refinery capacity India would not only become self-reliant in AVGAS 100 LL but also be in a position to export it to other countries. Highlighting the importance of launch of indigenous AV GAS 100 LL, the Minister for Petroleum and Natural Gas Hardeep Singh Puri said the launch of indigenous AV GAS 100 LL is important to serve the needs of a thriving aviation industry with increase in footfall on airports, rise in number of aircrafts and Flying Training Organisations (FTOs) in trainee aircrafts for pilot training in future. As the demand for air transport in India is expected to increase manifolds in the future, there is going to be a huge demand for trained pilots also. And for this, the number of FTOs is also expected to increase significantly, he added. Under Prime Minister’s Atmanirbhar Bharat vision IOCL has come up with AV Gas 100 fuel which was imported so far at huge cost. It will ensure that all our flight schools and all other smaller aircrafts that use AV Gas 100 LL are able to buy this from indigenous sources and save money. It will make huge difference to us in terms of exporting it to areas and countries which need AV Gas 100 LL fuel, said Gen V K Singh (Retd.), Minister of State for Civil Aviation, and Road Transport and Highways. Principal grade of Aviation Gasoline, AVGAS 100 LL is designed for use in turbo-charged reciprocating piston engines aircrafts, mainly used by FTOs and defence forces for training pilots. AV GAS 100 LL produced by IndianOil’s flagship refinery at Vadodara has been tested and certified by the Directorate General of Civil Aviation (DGCA), the statutory body of the Government of India to regulate civil aviation in India. It is a higher-octane Aviation fuel meeting the product specifications with superior performance quality standards, as compared to imported grades. The indigenous availability of AV GAS 100 LL will help reduce dependence on imports and address the associated logistical challenges. The country will be able to save precious foreign exchange with the in-house availability of this product. This will also benefit more than 35 FTOs across India. With the domestic availability of this product, Ministry of Civil Aviation is considering opening more training institutes in the country. Seeing the increase in aviation traffic, the requirement of trained Pilots is expected to increase, the Ministry of Petroleum & Natural Gas said in the statement.
GAIL India pays nearly double the amount for LNG compared to the previous year
After crucial Russian deliveries were suspended, India bought some of the most expensive liquefied natural gas shipments the country has ever received. For a delivery between October and November, GAIL India Ltd. purchased a number of LNG cargoes at a price that was more than two times what it had spent at the same time the previous year. The company, which has its headquarters in New Delhi, is striving to replace the supply from the former trading division of Gazprom PJSC, which Germany nationalized earlier this year and is now paying fines in accordance with its contract rather than supplying fuel. Price-sensitive emerging nations have been heavily hurt by the global spike in natural gas prices following Russia’s invasion of Ukraine; they are now forced to pay the high spot market rates or risk blackouts and industrial shutdowns. Due in part to rising fuel prices, India’s retail inflation spiked in August. According to news reports, GAIL this week purchased three LNG shipments for delivery from October to November for more than $40 per million British thermal units, making them some of the most costly cargoes ever delivered to India. Just before the 20-year contract with Gazprom’s marketing branch in Singapore began in 2018, the company had secured price and volume reductions. Technically, that division belonged to Gazprom Germania GmbH, which the German regulator seized in April and renamed Securing Energy for Europe GmbH. The new company has stated that it is unable to obtain petroleum from Russia’s Yamal Peninsula and that it is unable to transport fuel to India. The contractual penalties for non-delivery it is paying to GAIL are most likely a small portion of the current spot rates.
IndianOil says LIOC will always remain aligned with Sri Lanka’s national interests
Lanka IOC PLC Chairman Ranjan Kumar Mohapatra on Saturday reiterated that the company’s business priorities for the past two decades was and will always remain aligned with Sri Lanka’s national interests and assured further excellence going forward. He made this remark at the gala celebrations of LIOC’s 20th anniversary at Hilton Colombo attended by the Speaker of Parliament, Indian High Commissioner, Cabinet Ministers, State Ministers, officials, private sector and business partners. “LIOC has been working tirelessly to develop the Sri Lankan market for the past two decades and be a partner in the progress of the national economy,” Mohapatra told the ceremony. He said that the anniversary offers a fresh opportunity to reiterate the company’s commitment further the service and product excellence in the future along with greener operations. It is also an opportunity to reflect on the 20-year journey, celebrate the many achievements and the learnings, he stressed. “LIOC business priorities will always remain aligned with Sri Lanka’s national priorities as displayed during the recent energy crisis times including operating the Trincomalee terminal around the clock for two months to ensure adequate supplies. LIOC is always poised to leverage its resources and strengthen fuel supplies with the support of the Government of Sri Lanka,” said Mohapatra, who is also the IndianOil Human Resources Director and IndianOil Mauritius Ltd. Chairman. Commending all LIOC employees for the journey so far in transforming the energy sector in Sri Lanka, Mohapatra stressed: “Our employees belong to our company and also to Sri Lanka.” He also thanked Sri Lankan people for reposing their faith in LIOC. “What we set out for in 2002 we have made people realise that in 2022 it is possible and we can and we care.” Indian Oil Corporation (IOC) owns 75% stake in LIOC and the public float of 25% is held by 13,000 shareholders. LIOC Chairman also announced the start of the commercial operations of Sri Lanka’s first grease plant with 3,000 tons capacity set up by LIOC in Trincomalee with an investment of Rs. 350 million. “This is a proud moment for LIOC as it will save valuable foreign exchange since the hitherto grease requirement of Sri Lanka was entirely imported,” added Mohapatra who visited Trincomalee to commission the facility yesterday. He also officiated the launch of Servo Futura P+ 10W30 Lubricant blended at Trincomalee, which is premium performance Petrol Engine Oil specially produced for new generation petrol vehicles. Indian High Commissioner Gopal Baglay, pointing to 20 years, said LIOC has come of age adding that teenage is a very exciting time but youth is when you see the potential and move towards fulfilling it. He commended LIOC for winning the trust of Sri Lankans and also thanked the Government of Sri Lanka for its support. He described the 20-year journey as remarkable especially in 2022 especially in helping Sri Lanka overcome its fuel crisis. He likened O in Oil for opportunity and C in Company to challenge and said LIOC have risen to the occasion converting challenges to opportunities and in doing so the company helped India to fulfil a promise of ensuring energy security to Sri Lanka. He added that LIOC has a major role to play going forward as well with the proposed development of Trincomalee oil tank farm in partnership with Ceylon Petroleum Corporation for further energy security. On a lighter vein, Baglay recalled that when he assumed office in Sri Lanka many diplomats said that the Indian High Commissioner in Sri Lanka is a very powerful person. “But I can say that Manoj Gupta (LIOC Managing Director) gave me a run for my money,” said Baglay, erupting the audience at anniversary celebrations into laughter. Power and Energy Minister Kanchana Wijesekera on behalf of President Ranil Wickremesinghe and the Government congratulated LIOC for its 20th anniversary and thanked LIOC for its contribution to the country. He thanked India for $ 700 million credit line and LIOC continued support of the CPC in the difficult economic situation. He said LIOC is a good trademark of India Sri Lanka bilateral corporate relationship. He said Sri Lanka and India can collaborate further in terms of ensuring energy security especially in terms of creating an energy hub that exports petroleum products to the region. Minister Wijesekera concluded his remarks with two requests to the IOC. One was to release its Lankan Managing Director Gupta to CPC after he completes his term in Sri Lanka. The other request was IOC as the parent will set off the dues from CPC to LIOC. Managing Director Manoj Gupta said LIOC was extremely fortunate and humbled to be marking the 20th anniversary which he described as a unique milestone. He said it has been an incredible journey full of challenges and success and it was a testimony of LIOC’s vision, entrepreneurship spirit and commitment of founders and leaders. He also said LIOC prides itself on its diversity and inclusivity. “With utmost humility I would like to express my sincere most gratitude for the trust placed in LIOC over the years by our value stakeholders including the Government of Sri Lanka, shareholders, employees, export houses, retail customers, business partners and the entire Sri Lankan community by and large,” he said, adding: “We remain resolute on our commitment to create a sustained long-term value for all our stakeholders,” Gupta added. It was pointed out that as prospects remain promising LIOC is confident of a brighter future under the aegis of experienced and versatile Chairman and the Board of Directors. “We are relentlessly pursuing the unparalleled value creation in an enduring pledge to serve the people of Sri Lanka.” Gupta also thanked and commended the Government of Sri Lanka, Ministry of Power and Energy, the Central Bank for constructive approach and inclusive decision making in handling various industry issues in most challenging circumstances.