EU pushes for energy cooperation with India as it aims to ‘diversify away’ from Russian Oil
The European Union (EU) said Monday it will seek to strengthen energy ties with India as Brussels aims to “diversify away” from sourcing oil and gas from Russia in the wake of its invasion of Ukraine. In the backdrop of the war, the EU has expressed a keen interest in partnering with India in its quest for renewable energy, and reducing dependence on non-renewable sources like fossil fuel. It has also expressed its intentions to invest in clean energy on a large scale, while stressing the importance of “EU-India cooperation”. Soon after her meeting with Prime Minister Narendra Modi in New Delhi, European Commission President Ursula von der Leyen tweeted Monday that “EU-India cooperation on solar and green hydrogen is key”. The European Commission is the executive branch of the EU. This is von der Leyen’s maiden visit to India in her present capacity
India’s Russian oil purchases since Ukraine invasion more than double 2021 total
India has bought more than twice as much crude oil from Russia in the two months since its invasion of Ukraine as it did in the whole of 2021, according to Reuters calculations, as Indian refiners snapped up discounted oil that others have shunned. Refiners in India have placed orders for at least 40 million barrels of Russian oil since the invasion on Feb. 24, Reuters calculations based on information from crude tenders and traders show. The purchases are for loading in the June quarter. That compares with total imports of Russian oil into India of 16 million barrels in the whole of last year, according to Reuters calculations. The world’s third biggest oil importer and consumer ships in over 85% of its crude oil needs of 5 million barrels per day (bpd). Its refiners are buying cheaper Russian oil to partly offset the impact of higher official selling prices of some producers like Saudi Arabia, company sources said.
Bandi: Tax on fuel by TS is among the highest in India, price hike global
BJP State chief Bandi Sanjay said on Saturday that Telangana was among the States with the highest petrol price in the country, even as 18 States have reduced petrol and diesel prices. He asked what moral ground did TRS government have to blame the Centre on fuel price hike, when it has been looting the people by increasing the value-added tax (VAT) on petrol and diesel by four times since 2014. In a statement issued on Saturday, he said that while the Centre has reduced excise duty on petrol and diesel twice, the State government was getting more in the form of VAT, whenever the prices went up. He said that ten years ago, after processing petroleum products, the resultant chemicals were used to manufacture plastic by-products, from which the government used to generate revenue and balance the impact of increasing crude oil prices. However, he said, after countries around the world resolved to reduce plastic consumption in the interest of environment, demand for those by-products has come down, this was not effective in controlling the prices. He asked why the State government that was demanding paddy procurement on the lines of Punjab was not reducing the price of petrol like Punjab, where it was just `105.46 per litre at present. The prices of petrol were not in the hands of the Central government, and that it depended on the international crude oil prices, he said. “From the selling price of petrol, 40 per cent is paid to companies manufacturing it. The rest of 60 per cent is shared by the Centre and the State in the form of taxes. Though there is discrepancy in various States in levying VAT, Telangana has been levying highest tax in the country. Even in the 30 per cent taxes levied by the Centre, 42 per cent of it goes back to the States as part of finance commission’s recommendations, which means the Centre keeps only 17 per cent,” he asked. Meanwhile, BJP leader and MLA E Rajendar said on Saturday that people of Telangana will finish TRS politically in the coming elections like Shishupala, who faced punishment after committing 100 mistakes, at the hands of God. He was addressed public meeting in Seethayapally village in Yellareddy Mandal in the district on Saturday. He said TRS’ mistakes have become unbearable. He said that K Chandrasekhar Rao has lost the moral right to continue as CM.
Experts: U.S. Could Enter Lithium Market In A Very Big Way
The US could enter the lithium market in a very big way. At least, that’s what some experts are claiming. The global demand for lithium is on the rise, especially in the US. This should come as no surprise, as lithium-ion batteries are essential to electric vehicles and energy storage. Still, the question remains: is the US capable of breaking its reliance on lithium imports from Argentina, Chile, Russia, and China? Lithium Production Needs to Increase Because of the increased demand for electric vehicles, lithium extraction technology has seen heavy investment. These millions aren’t just coming from the likes of General Motors either, but the US Energy Department. Right now, much of the focus is on direct lithium extraction (DLE). These technologies aim to extract lithium from brine using filters, membranes, ceramic beads, and other “micro-level” solutions. While such methods are successful, it’s unclear whether they can be scaled up for commercial production. DLE technology necessitates vast amounts of potable water and electricity. Before the US could boost lithium production, we would need a clear plan to provide ample amounts of both. Since these resources are not particularly abundant, it also gives detractors more ammo to criticize lithium investment. Looking to Geothermal Sources According to this report, geothermal technologies are about to unlock large amounts of lithium hidden in naturally occurring hot brines. These are essentially concentrated saline solutions that circulate through super heated rock in places like San Diego’s Salton Sea. In doing so, the solutions pick up many of the elements contained within the rock, including lithium. The previously-mentioned issue of water supply is clearly addressed through this method. After all, geothermal power plants use heat from the earth to generate a constant supply of steam. This allows them to run the turbines necessary to produce electricity. The report also stated that if current tests are successful, the 11 existing geothermal plants along the Salton Sea could produce enough lithium metal to meet US demand 10 times over. Science Paving the Way to the Lithium Market Cypress Development Corp recently announced results from its Lithium Extraction Pilot Plant in Amargosa Valley, Nevada. It stated that the lithium extracted via the ion exchange in the recovery area boasts superior separation efficiencies. At the same time, major cations exceeded 98%. Results have also identified preliminary extraction rates of between 83% and 85% within the washed tails. Meanwhile, lithium extractions performed with the Lionex process are clocking in at 98%. Perhaps most importantly, the report stated that overall impurity removal exceeded 99%. US Energy Secretary Jennifer Granholm remarked at an energy conference last month that DLE technology was a “game-changer” and a “great opportunity” for the United States. This should come as no surprise to energy insiders. Recently, Warren Buffett’s Berkshire Hathaway Inc. was given a US $15 million grant by the US Energy Dept. to test DLE technology. Again, the site of the tests will be California’s Salton Sea. Scoping Study in North America Just 700 km from CentrePort Canada, Snow Lake Lithium is creating the world’s first all-electric, fully renewable lithium mine. Meanwhile, Snow Lake Resources Ltd. has commissioned a scoping study to assess the proposed creation of a Lithium Hydroxide Plant in South Manitoba. The company called the study “a strategically important step” toward creating North America’s first fully renewable, fully-electric, and fully integrated lithium processing operation. Starting this month, the study will accelerate the company towards commercialized lithium production. It’s hoped the research will identify the technologies, innovations, skills, and potential partners required to create a world-class lithium hydroxide plant in Manitoba . The creation of a lithium hydroxide plant would greatly impact North American industry. Specifically, it would enable the integration of a domestic supply of this critical resource. Electric car companies could improve output and potentially even lower prices. Waiting for the Future Snow Lake Lithium currently has 11.1 million metric tons of inferred resources at 1% Li2O. The mine has further plans to expand its resources based on the current active drilling campaign. The scoping study mentioned above will commence in April 2022 and should complete by Spring 2023. Meanwhile, Snow Lake Lithium will continue its engineering evaluation and drilling program across its Thompson Brothers Lithium Project site. Company leaders expect that the mine will transition to commercial production in late 2024. Only time will tell if the US and its northern neighbor can capitalize on this massive opportunity. Until we experience a breakthrough, the entry into the global Lithium Market remains a matter of “baby steps.”
Rystad: Oil Demand To Sink By 1.4 Million Bpd
Global oil demand will drop by 1.4 million barrels per day, according to the latest forecast by Rystad Energy on Friday cited by the National. The 1.4 million bpd loss would sink oil demand to 99.6 million bpd on average, below 2019 levels of 100.2 million bpd. And a rebound in this demand isn’t expected to happy until next year at the soonest, Rystead said. The drop in oil demand will likely come from the Russian invasion of Ukraine, soaring inflation, China’s covid-inspired lockdowns, and supply chain disruptions. And even more oil demand pressure could be applied through future lockdowns or geopolitical issues. “Shrinking demand is a direct result of the impact of lower economic activity globally,” the consultancy said, adding that such a demand decrease could ease today’s tight oil markets, calming oil prices. Rystad isn’t the only one lowering oil demand forecasts. OPEC cut its 2022 oil demand growth forecast by 480,000 bpd on the back of lower expected global economic growth given the war in Ukraine and China’s covid lockdowns. The IEA also cut its oil demand forecast by 260,000 bpd to reflect the return of severe covid lockdowns in China. Meanwhile, the World Bank and the IMF have both cut their overall global growth expectations for this year. But Rystad isn’t changing its outlook for bullish oil prices. According to Rystad, if the Russian war in Ukraine drags on, it will increase oil and gas prices, particularly if the EU ends up banning oil and gas this year. “The Russian war worst case for oil demand is premised on Brent prices reaching $180 per barrel in the fourth quarter, triggering a further economic slowdown and outright destruction of oil demand,” Rystad said.
High LNG Prices Are Here To Stay
In just one year, the global market of liquefied natural gas (LNG) turned from a buyer’s market to a seller’s market, with LNG suppliers commanding a tight market as buyers scramble to secure gas from providers other than Russia. The European Union’s target to diversify gas supplies, speed up the roll-out of renewable gases, and replace gas in heating and power generation in hopes of cutting EU demand for Russian gas by two-thirds before the end of the year has created a global race for spot LNG supply. In this race for LNG supplies, Europe is currently winning over Asia, the traditional outlet for most of the global spot supply. This has not been the case for several months now, even before the Russian invasion of Ukraine, as Europe was plunged into an energy crisis in the autumn of 2021 with low levels of gas in storage and rebounding industry demand post-COVID. The Russian war in Ukraine and the determination of the EU to reduce its reliance on Russia’s gas—at around 40 percent pre-war—further made Europe the preferred destination of spot LNG cargoes, especially cargoes from the United States. Spot supply will not be able to cover current needs or replace a large portion of Russian supply because more than half of the global LNG trade is contracted under long-term agreements, leaving fewer spot cargoes with flexible destination terms. That’s why buyers are now looking to sign long-term contracts for LNG supply. It also is a way to hedge against skyrocketing spot prices. And sellers rule the market. In this tight LNG market, which is set to become even tighter through the mid-2020s until major new capacity in the U.S. and Qatar comes online, LNG exporters, suppliers, and developers are demanding from future long-term buyers much higher prices for contracts, traders familiar with the negotiations tell Bloomberg. The largest LNG suppliers are now offering buyers 10-year term contracts with a start date in 2023 at rates that are 75 percent higher than those for similar deals agreed upon only last year, Bloomberg’s sources say. The price of long-term LNG contracts is generally linked to the price of oil or Henry Hub prices and is lower than the near-record-high spot LNG prices. However, with demand skyrocketing as Europe races to replace Russia, the gap between long-term and spot LNG prices is narrowing. “There is anecdotal support – via industry channel checks – of increased appetite and discussions by European and Asian LNG buyers in recent weeks, looking to secure long-term LNG volumes and equity in LNG projects,” Saul Kavonic, Head of Australia Integrated Energy and Resources Securities Research at Credit Suisse, told Nick Toscano of Sydney Morning Herald at the end of March. The Russian war in Ukraine and the West’s determination to wean off Russian gas—sooner rather than later—is the “most structural bullish event” in the history of the global LNG market, Kavonic said. According to Credit Suisse’s analyst, the war in Ukraine and its consequences on global gas flows would eclipse the previous major market shift and surge in LNG demand that resulted from Japan shuttering its nuclear power plants in the wake of the Fukushima disaster in 2011. “Ukraine could have more than 10 times the impact of Fukushima and last much longer,” Kavonic told Sydney Morning Herald. For example, Germany, which until two months ago had only sporadically thought of LNG import terminals and imports, now seeks a long-term deal with one of the world’s top LNG exporters, Qatar. The global race to procure LNG supply is bullish for U.S. developers and exporters, but with facilities maxed out, the United States can do little more in the short term to ease the tight market. In the longer term, environmental concerns about the greenhouse gas emissions of the LNG supply chain, from fracking to methane leaks, could put a limit on the amount of LNG America will be able to send to Europe a decade or two from now. Nevertheless, competition for LNG supply by 2025 will be fierce, due to the EU’s shift away from Russian fossil fuels. “With only modest volumes of new LNG supply coming onstream during this period and Europe’s decision to diversify away from Russia now irreversible, the stage is set for fierce competition,” Gavin Thompson, Vice Chairman, Energy – Asia Pacific, at Wood Mackenzie, said earlier this month.
Power minister calls for global efforts for efficient hydrogen fuel cells
RK Singh on Sunday said that countries should come together and work towards making hydrogen fuel cells more efficient in a bid to move towards hydrogen-based economies. In order to boost investments and set up renewable energy facilities in developing and under-developed countries, including those in Africa, Singh said there would be requirements for a credit guarantee fund and a renewable energy bank. He also stressed on the need for easier technology transfer to accelerate the pace of energy transition.
Reliance purchases over 15 million barrels of crude oil from Russia
Ambani’s Reliance Industries owns and runs the largest oil refining complex in the world, placed an order for over 15 million barrels of oil from Russia since Ukraine was invaded by the largest country in the world. According to official sources, the largest Indian conglomerate purchased an average of 5 million barrels every month during the 2ndquarter. The company was contacted for a comment but their representatives have remained quiet about it. Prior to the military invasion, Indian companies, which includes Reliance, generally strayed away from Russia oil due to the heavy tariffs and freight costs But ever since the invasion, companies and countries all around the world have pulled their operations out of Russia and placed an embargo on the country. Countries have also cut trade ties with them. This has caused oil prices around the world to surge but at the same time has contracted the Russian economy drastically. This has forced the largest country in the world to sell their oil at lower prices even below the market value.
ONGC commissions Rs 60 billion projects to boost oil, gas output
Oil and Natural Gas Corporation (ONGC) has commissioned two projects costing Rs 60 billion to add 7.5 million tonnes of oil production and 1 billion cubic meters of gas output over the life of the Mumbai High fields, as it doubles down efforts to raise productivity from mature and aging fields. A Rs 3,740-crore spend has been made on a state-of-the-art 8-legged water injection-cum-living quarter platform, as part of the Mumbai High South Redevelopment Phase-IV, while Rs 22.9246 billion have been spent on Cluster-8 marginal field development project at Mumbai High, the company said in a statement. “The two projects will result in an incremental gain of 7.5 million tonnes of oil and more than 1 BCM of gas,” it said. Oil Minister Hardeep Singh Puri dedicated the two major projects to the nation at Western offshore on April 23. He was accompanied by chairman Alka Mittal, Director (T&FS) O P Singh and Director (Offshore) Pankaj Kumar. The minister expressed his appreciation for the ONGC team for implementing the two projects. He exhorted ONGC to further enhance their efforts to add more oil and gas to the kitty of nations, adopting accelerated exploration activities,” the statement said.
Who is buying bargain Russian oil in Asia?
Tankers full of Russian crude still entering Japan, South Korea, India, China. Nearly two months after Russia invaded Ukraine, much Russian oil continues to flow to Japan, South Korea, China and India, the latest tanker-tracking data shows. Since the start of the war on Feb. 24 until April 18, a total of 380 oil tankers departed Russia, according to a Nikkei Asia analysis of data from Refinitiv. That is up slightly from 357 during the same period last year. The number rose on the year even after massive civilian killings in Bucha, Ukraine, came to light on April 2. From that date through April 18, 119 tankers departed from Russia, compared to 109 last year. Of the 380 tankers that departed since Feb. 24, 115 are or were headed to Asia: 52 to China, 28 to South Korea, 25 to India, nine to Japan and one to Malaysia. That represents an eightfold increase for India and a 33% increase for China over the same period last year. The numbers for the other countries were down 16%. Major Western economies, such as the U.S. and the U.K., have announced they will stop importing Russian oil as part of their broader response to the war in Ukraine. Even before decisive government action, energy companies such as BP and Shell had said they would no longer buy from Russia due to a combination of shareholder pressure, reputational risk and logistical hurdles. As a result, the benchmark price for Ural crude in Europe slipped by around 30% between early March and mid-April, falling from $111 to $78 a barrel, according to Refinitiv data. That price dip has given those willing to do business with Russia the chance to land a bargain.