Gail India logs a whopping 87% yoy growth in Q2 PAT to Rs2,863cr as performance improves across segments
State-owned Gail India reported a standalone net profit of Rs2,863cr in the quarter ending September 2021 (Q2FY22) compared to Rs. 15.30 billion of Q2FY21 – rising by a whopping 87% yoy. On a quarterly basis, standalone Turnover increased by 24% to Rs. 214.77 billion in Q2 FY22 as against Rs. 173.52 billion in Q1 FY22. In the quarter, the physical performance improved across all segments. Natural Gas Transmission increased to 114.32 MMSCMD in Q2 FY22 as against 107.66 MMSCMD in Q1FY22, up by 6%. Natural Gas Marketing increased to 97.72 MMSCMD during the quarter as against 95.95 MMSCMD in Q1 FY22, up by 2%. Petrochemical production sales were at 221 TMT in the quarter as against 138 TMT in Q1 FY 22, clocking an increase of 60%. Manoj Jain, Chairman & Managing Director, GAIL informed that during the H1 FY22, GAIL has incurred a Capex of Rs. 31.80 billion mainly on Pipelines, Equity and Petrochemicals etc. On a consolidated basis, Turnover in Q2 FY22 was Rs. 217.39 billion in comparison to Rs. 175.51billion in Q1 of FY22, up by 24 %. The PBT in Q2 FY22 was Rs. 37.28 billion vs. Rs. 25.40 billion in Q1 FY22, up by 47 %. The PAT in Q2 FY22 is Rs. 28.83 billion vs. Rs. 21.38 billion in Q1 FY22, up by 35%. The company registered its highest ever Half Yearly Turnover and profit in H1 FY 22, clocking a turnover of Rs. 388.29 billion as against Rs 256.71 billion in the last fiscal, an increase of 51%. The Profit before Tax increased by 201% to Rs 57.36 billion vis a vis Rs 19.07 billion in H1 of previous year. Profit after Tax also jumped by 194% to Rs 43.93 billion for the half year as against Rs 14.95 billion in H1 FY 21. He stated that performance of all segments of the company have improved significantly during the quarter and further added that a sustainable future performance is expected.
No investment in Petroleum sector in 2 yrs caused hike in fuel prices
Union Minister Dharmendra Pradhan who has previously served as Minister of Petroleum and Natural Gas, on Saturday asserted that there has been almost no investment in the petroleum sector for almost two years due to the COVID-19 pandemic which led to the increase in fuel prices. Speaking to the media in Kanpur, BJP Uttar Pradesh’s election in charge said, “India imports around 80 per cent petroleum products. There has been no investment in the petroleum sector for past two years due to COVID-19 pandemic which caused increase in fuel prices.” He further said, “the cost of imports has also been increased, so the Government of India is trying to bring more plans for the use of renewable energy.” As per official data, Petrol prices in Delhi stand at Rs 109.69 per litre (up by Rs 0.35) and diesel prices are Rs 98.42 per litre (up by Rs 0.35) today. Meanwhile, petrol and diesel prices in Mumbai stand at Rs 115.50 and Rs 106.62 respectively, while petrol and diesel prices in Kolkata are Rs 110.15 and Rs 101.56 respectively. In Chennai, petrol prices are Rs 106.35 and diesel prices are Rs 102.59 on Monday. Apart from talking about fuel prices, the minister also asserted that there is no shortage of Diammonium phosphate (DAP) and other fertilisers in Uttar Pradesh. “There’s no shortage of DAP (di-ammonium phosphate), the situation had arisen temporarily. Yesterday I spoke with Chemicals and Fertilizers Min Mansukh Mandaviya,” said Pradhan. The developments in the state come ahead of Assembly polls due to be held early next year.
Oil demand continues to healthily outpace supply
Crude oil prices averaged about 1 percent higher on a week-over-week basis, as investors remained focused on the strength of the global oil supply and demand fundamentals ahead of winter. Prices rose the most amid signs of a fast-tightening US oil market, specifically at Cushing, and a large drop in gasoline stocks. However, rising coronavirus disease (COVID-19) cases in several countries, concerns about global economic growth, and a larger-than-expected build in US crude stocks last week limited gains. Crude prices retreated, though they remained firm after the Energy Information Association reported a larger-than-anticipated build in US crude oil stocks, which eased concerns about a tightening crude oil market and prompted investors to take profit from bullish long positions. The rise in total US crude stocks offset a drop in crude stocks at Cushing and the decline in US gasoline and distillates stocks. Prices have been trading above $80 per barrel, a level that secures significant profits for US shale producers, but there is no sign that this will lead to a significant increase in investment in the shale sector. It seems that US shale production is still being mainly sustained by the activation of drilled but uncompleted wells relative to new drilled wells. However, the longer prices remain high, the more likely it is that US crude output could start to see growth again. India’s crude oil imports in September rose 16 percent to a five-month high, government data showed, as a pick-up in economic activity and mobility led to higher fuel demand. Liquefied natural gas imports into China have remained resilient, especially from long-term contracts, with utilization rates at key coastal terminals in excess of 90 percent. Asian spot LNG prices declined marginally due to more cautious Chinese buyers, who have largely retreated from the spot market given forbiddingly high prices. The LNG market is balanced by newly reported supply disruptions, most recently from Bontang LNG, where feed gas constraints are expected to take up to one cargo a month off the market from November through mid-2022. The vaccine success and reopening of social activities have enabled the US economy, and oil consumption, to flourish faster than in other regional markets, and production, hampered most recently by Hurricane Ida, has not been able to keep up with the pace of refinery intake. Rising Indian gasoil demand, tighter supplies from China and the onset of seasonal refinery maintenance in the West, are set to keep gasoil prices well supported heading into the winter heating season. Global refinery crude requirements are expected to pick up starting in November as refineries return from major turnarounds and respond to the market’s call to replenish product stock levels, given growing product tightness. The US weather forecast is trending toward colder-than-average weather in November and would likely result in expectations for higher heating fuel demand in the upcoming days. The oil price trajectory remains bullish as natural gas prices continue firm, a potentially cold winter awaits just around the corner, and oil demand continues to healthily outpace supply.
National Gas partners with HP lubricants to offer global lubricants portfolio to customers in Oman
As the country’s automotive sector and industrial segment continue to grow, lubricant consumption in Oman is projected to rise. Considering this, National Gas, Oman’s first & largest LPG marketing company, has aligned with HP lubricants to offer its global lubricants portfolio to customers in Oman. HP Lubricants, a vital part of India’s public sector undertaking Hindustan Petroleum Corporation Ltd (HPCL), is India’s largest lubricant marketer, which markets more than 350 grades of lubricants, specialities and greases. HP Lubricants find applications in automotive, industrial, mining and construction, agriculture, defence and among others. Its fast-moving products include diesel engine oil, anti-wear hydraulic oil, automatic gear oils, transmission oils, oat coolants/corrosion inhibitors, water soluble-cutting oils; and greases, namely rock breaker, multi-application/high temperature, general-purpose greases; and a range of passenger motor oils. Sanjay Kumar, Head, Lubricants, India, said, “HPCL owns and operates two major refineries producing a wide variety of petroleum fuels and specialities. We are extremely delighted having entered the Oman market to sell our high-quality lubricants.” The visit of high-profile HPCL official delegation comprising of Sanjay Kumar, Head – Lubricants, India; Vinay Kumar Sinha, GM – International Trade; and Subhendu Mohanty, CEO, HPCL Middle East, has boosted the morale of National Gas in devising effective marketing strategies to augment the sales of HPCL lubricants in Oman. Impressed with the sales, the HPCL management which reviewed the lubricants sales has acknowledged NGC by awarding it the best performer award. Nalin Chandna, CEO, National Gas Company, Oman, said, “We launched HP lubricants in Oman market on September 6, 2020 and the customer response towards HP Lubricants has been good and we are confident that it will grow further.” He added, “The collaboration demonstrates the synergies between HPCL and National Gas. Both the managements look forward to making this association long and mutually beneficial and is aimed at increasing the customer base of lubricants in Oman and the region.” The lubricants industry serves as a bellwether of economic activity as lubricants are used in all kinds of machinery, power equipment, mining and automobiles.
India, Italy to collaborate on green hydrogen, gas sector
Rome/New Delhi India and Italy have agreed to explore development of green hydrogen, setting up renewable energy corridors, and joint projects in the natural gas sector as the two nations sought to strengthen partnership in energy transition. A joint statement issued after Prime Minister Narendra Modi held the first in-person meeting with his Italian counterpart Mario Draghi on the sidelines of the G20 Summit in Rome, said the two leaders agreed to encourage joint investments of Indian and Italian companies in energy transition-related fields. They agreed to “initiate a dialogue to support the development and deployment of green hydrogen and related technologies in India” as well as to “consider working together to support a large size green corridor project in India to capitalize on India’s target to produce and integrate 450 GW of renewable energy by 2030.” The two leaders also agreed to “encourage Italian and Indian companies to develop joint projects in natural gas sector, technological innovation for decarbonisation, smart cities and other specific domains (i.e.: electrification of urban public transport).” India set an ambitious target of building capacity to generate 450 gigawatts of electricity from renewable sources such as solar and wind and more than double the share of natural gas in its energy basket to 15 per cent by 2030 as its transitions to a low carbon emitting economy. It is also looking at scaling up hydrogen production from all sources, particularly green hydrogen as part of its energy transition pathway. The joint statement said a joint working Group established by the Memorandum of Understanding on Cooperation in the field of Energy, signed in Delhi on October 30, 2017, will be tasked to explore cooperation in areas such as smart cities; mobility, smart-grids. The group will also explore cooperation in electricity distribution and storage solutions; gas transportation and promoting natural gas as a bridge fuel; integrated waste management (waste-to-wealth); and green energies (green hydrogen; CNG & LNG; bio-methane; bio-refinery; second-generation bio-ethanol; castor oil; bio-oil –waste to fuel). The two leaders also agreed to “share useful information and experiences especially in the field of policy and regulatory framework, including possible means to facilitate the transition to cleaner and commercially viable fuels/technologies, long-term grid planning, incentivizing schemes for renewables and efficiency measures, as well as with regard to financial instruments for accelerating clean energy transition.” They acknowledged significant progress in bilateral relations since the adoption of the Action Plan for an enhanced Partnership between India and Italy (2020-2024) on November 6, 2020. They expressed their resolve to strengthen cooperation in the strategic sectors addressed by the Action Plan, including the cross-cutting issue of accelerating the clean energy transition to fight climate change, central to both the G20 Leaders Summit in Rome and the COP26 in Glasgow. They also recalled the India-EU Leaders’ Meeting held in Porto on May 8, 2021, where the European Union and India highlighted the urgency of addressing the interdependent challenges of climate change, biodiversity loss and pollution. The two leaders agreed to deepen cooperation for accelerating the deployment of renewable energy, including deployment of innovative renewable technologies such as offshore wind energy and exploiting the potential of green hydrogen, promoting energy efficiency, developing smart grids and storage technologies, modernizing the electricity market. “In addition, both sides agreed on the utmost importance of cost effective integration of a growing amount of renewable energy into their respective power systems, as a key asset for an effective clean transition that generates jobs, GDP growth, reinforces universal energy access while eradicating energy poverty,” it said. “In this perspective, the two Prime Ministers appreciated India’s resolve to deploy 450 GW of renewable energy by 2030 as well as Italy’s prompt ratification and active support to the International Solar Alliance, and agreed to launch a bilateral strategic partnership in the domain of energy transition.” Such a partnership could build on existing bilateral mechanisms, including by giving new impetus to the cooperation on renewable energy and sustainable development between the Italian Ministry of Ecological Transition and its Indian counterparts, namely Ministry of New and Renewable Energy, Ministry of Power and Ministry of Petroleum and Natural Gas, it added.
Jio-bp to sell additive fuels at no extra cost; EV charging, battery swap, 24×7 retail at RIL’s fuel stations
Jio-bp, the fuel retailing joint venture between Reliance Industries Ltd and BP Plc, will sell additivised fuel at no extra cost, instead of regular fuels, at its ‘mobility stations’, the company said in a statement today. Additionally, Jio-bp will also offer EV charging and battery swap at its mobility outlets and other standalone locations. The additivised fuel sold at Jio-bp stations will contain active technology, which forms a protective layer on critical engine parts to help keep the engines clean, it said. RIL’s 1,400 existing fuel retailing stations across the country too will soon be rebranded into Jio-bp mobility stations. Reliance BP Mobility launched its first Jio-bp branded Mobility Station at Navi Mumbai, Maharashtra on Tuesday. In addition to fuel refill and EV charging, Jio-bp will also offer oil change service in partnership with Castrol. Further, apart from fuel and oil services, Mukesh Ambani’s Reliance Retail will also offer 24×7 food and beverage retail at Jio-bp outlets. Wild Bean Café, a brand by bp, will serve its signature coffee along with masala chai, samosa, etc., to customers who are on the move. Jio-bp will also offer instant discounts, happy hour schemes, implementation of flexible and uniform digital payment across the network, going ahead. Jio-bp mobility stations have been designed to meet the growing demand for fuels and mobility. In 2019, BP had bought a 49 per cent stake in over 1,400 petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance for $100 crore. Reliance holds the remaining 51 per cent stake in Reliance BP Mobility Ltd (RBML). RBML has already received the marketing authorisation for transportation fuels. The joint venture after taking over Reliance’s existing petrol pumps started selling fuels and Castrol lubricants. In due course, the outlets will be rebranded ‘Jio-bp’.
Numaligarh Refinery inks pipeline ‘Right to Use’ sharing agreement with Indradhanush Gas Grid
A pipeline ‘Right to Use (RoU)’ sharing agreement was inked between Numaligarh Refinery Limited (NRL) and Indradhanush Gas Grid Limited (IGGL), which is a joint venture of NRL with Indian Oil Corporation (IOCL), Oil & Natural Gas Corporation (ONGC), Gas Authority of India Limited (GAIL) and Oil India Limited (OIL), on 21st October 2021. The agreement, a mutually beneficial arrangement for both organizations, was signed by General Manager (Project), NRL P J Sarmah and Chief Project Manager, IGGL Pankaj Patowary in the presence of Director (Technical), NRL B J Phukan; Director (Finance), NRL Indranil Mittra; CEO, IGGL A K Thakur and senior officials from both organizations. NRL is in the process of laying the 1,630 KM long ParadipNumaligarh Crude Pipeline (PNCPL), a crude pipeline originating from Paradip Port in Odisha and traversing through West Bengal, Jharkhand, Bihar, before terminating at its refinery in Numaligarh (Assam). The pipeline project is a crucial part of NRL’s mega Integrated Refinery Expansion project for capacity expansion from 3MMTPA to 9 MMTPA, which is being executed with an investment of more than Rs.280 billion. IGGL is executing the laying of a natural gas pipeline from Guwahati to Numaligarh as part of its marquee project for connecting India’s North-east Region (NER) with the National Gas Grid. IGGL’s natural gas pipelines will connect Guwahati to major cities of NER like Itanagar, Dimapur, Kohima, Imphal, Aizwal, Agartala, Shillong, Silchar, Gangtok and Numaligarh. NRL and IGGL’s pipeline sharing agreement leverages synergies between the PNCPL project and NER Gas Grid project as the pipelines share a common route from Baihata (North Guwahati) to Numaligarh for around 386 KM. The RoU model streamlines land acquisition and resource sharing for optimal execution of pipeline laying work and subsequently, efficient operations of the pipeline. This pact follows NRL’s earlier pipeline RoU sharing agreement with GAIL, signed on 14th October 2020, for a 550 KM stretch from Purnia in Bihar to Baihata, also a part of the Pradhan Mantri Urja Ganga Project. These agreements form important milestones in the Government of India’s Hydrocarbon Vision 2030 for North-east India which seeks to leverage the region’s hydrocarbon potential for enhancing access to clean fuel in line with NER’s growing demand for petroleum products, and also underline NRL’s key role in ushering in socio-economic development of the region.
GAIL to build 4.5 tpd green hydrogen plant
India’s largest state-owned natural gas company is looking to buy a 10 MW electrolyzer to produce 4.5 tons of green hydrogen daily. Gas Authority of India Limited (GAIL), India’s largest state-owned natural gas company, wants to build the country’s largest green hydrogen plant in the next 12-14 months. As written in an article by Millennium Post then re-published by the natural gas corporation, Gail aims to buy a 10 MW electrolyzer to produce 4.5 tons of green hydrogen daily. Gail, which has already launched a global tender, is looking into a couple of different potential sites for the plant, including one at Vijaipur, in the state of Madhya Pradesh. The electrolyzer will be based on proton exchange membrane (PEM) technology. Earlier this year, IndianOil (Indian Oil Corporation Limited) announced its plans to build India’s first green hydrogen plant at its Mathura refinery in the Indian State of Uttar Pradesh. The project will strengthen the clean energy offerings of the state-run oil and gas major that has already been pursuing hydrogen fuel cell, hydrogen-enriched hydrogen-enriched compressed natural gas (H-CNG) and solar. IndianOil plans to wheel wind power from its Rajasthan project to the Mathura refinery to produce green hydrogen from water electrolysis.
LNG Demand to Rise 25-50% By 2030 – Morgan Stanley
Demand for liquefied natural gas (LNG) is expected to rise by 25 to 50% by 2030, making it the fastest growing hydrocarbon over the next decade, analysts from Morgan Stanley Research said in a note on Monday. Morgan Stanley has raised its long-term LNG price outlook to $10 per million British thermal units (mmBtu), expecting spot prices of the super-chilled fuel to average 40% higher over the next decade, versus the past five years. Asian spot LNG prices hit a record above $56 mmBtu earlier this month as surging demand ahead of the northern hemisphere winter spurred by an economic rebound from the pandemic outstripped supply. Morgan Stanley said at least 73 million tonnes per annum (mtpa) of new projects are needed to meet LNG demand by 2030. This will require an additional $65 billion of new projects, on top of the $200 billion of projects already under construction which were sanctioned since 2019. “Contrary to investor expectations, the world is going to need more LNG in the initial phase of the energy transition,” the analysts said. “Competing technologies for natural gas are not being developed fast enough, and there are significant benefits in reducing coal consumption while greener fuels are commercialized.” Projects with lower emission intensity will be more sought after and are more likely to progress, they said. While higher gas prices are likely to underpin further investment in LNG, supply will be slower to respond than in previous cycles, the analysts said. “This will be driven by uncertainty over medium-term demand along with more capital discipline from the industry, including diversification into greener energies,” they said. “We think investor sentiment towards LNG-focused companies is likely to increase given better prices and returns expectations.” LNG demand will outpace growth in other hydrocarbons over the next 10 to 15 years, they said, adding that oil demand is expected to grow in line with recent averages while coal demand is expected to be flat. Asia, where coal makes up a high proportion of the energy mix, will be the key driver for LNG demand growth led by China and India as well as Taiwan, Thailand, Bangladesh, Indonesia and Malaysia, they added.
Tractebel to manage LNG fuelling station construction projects in India
As part of the government’s initiative to reduce greenhouse gas (GHG) emissions, LNG will soon be available at fuelling stations in the southern Indian states of Tamil Nadu and Kerala, for dispensing to long haul trucks. Bharat Petroleum Corporation Limited, an Indian government-owned company, has selected Tractebel’s gas and energy experts for the overall design, detailed engineering, project management, and construction supervision at two locations. The company is also assisting with the procurement of LNG equipment such as cryogenic tanks, dispensers, pumps, and associated fittings. Once operational, the LNG stations will provide commercial vehicle operators with increased access to cleaner fuel, thereby driving a reduction in vehicular pollution. The LNG fuelling stations are expected to open in July 2022. Mridul Kumar, Project Manager at Tractebel, stated: “A top priority of the Clean India Green India sustainability plan is to reduce vehicle pollution, a major contributor to GHG emissions throughout the country. We are pleased to be a part of the initiative by providing LNG as a cleaner alternative at retail fuelling stations. Expanding the availability of LNG will help reduce the volume of harmful CO2 emissions, an essential step in stopping the clock on climate change.”