Era of leaded petrol finally over globally: UN
When service stations in Algeria stopped providing leaded petrol in July, the use of leaded petrol ended globally. This development follows an almost two decades long campaign by the UNEP-led global Partnership for Clean Fuels and Vehicles (PCFV). Since 1922, the use of tetraethyllead as a petrol additive to improve engine performance has been a catastrophe for the environment and public health. By the 1970s, almost all petrol produced around the world contained lead. When the UN Environment Programme (UNEP) began its campaign to eliminate lead in petrol in 2002, it was one of the most serious environmental threats to human health. The year 2021 has marked the end of leaded petrol worldwide, after it has contaminated air, dust, soil, drinking water and food crops for the better part of a century. Leaded petrol causes heart disease, stroke and cancer. It also affects the development of the human brain, especially harming children, with studies suggesting it reduced 5-10 IQ points. Banning the use of leaded petrol has been estimated to prevent more than 1.2 million premature deaths per year, increase IQ points among children, save $2.45 trillion for the global economy, and decrease crime rates. “The successful enforcement of the ban on leaded petrol is a huge milestone for global health and our environment,” UNEP Executive Director Inger Andersen said. “Overcoming a century of deaths and illnesses that affected hundreds of millions and degraded the environment worldwide, we are invigorated to change humanity’s trajectory for the better through an accelerated transition to clean vehicles and electric mobility.” By the 1980s, most high-income countries had prohibited the use of leaded petrol, yet as late as 2002, almost all low- and middle-income countries, including some Organisation for Economic Co-operation and Development (OECD) members, were still using leaded petrol. The PCFV is a public-private partnership that brought all stakeholders to the table, providing technical assistance, raising awareness, overcoming local challenges and resistance from local oil dealers and producers of lead, as well as investing in refinery upgrades. Kwaku Afriyie, Minister of Environment Science, Technology and Innovation in Ghana, said, “When the UN began working with governments and businesses to phase out lead from petrol, sub-Saharan African nations enthusiastically embraced this opportunity. Ghana was one of five West African countries to join early sub-regional workshops and declarations. Following PCFV’s media campaigns, reports, studies, exposing illegalities, and public testing done to expose high levels of lead in the population’s blood, Ghana became ever more determined to free its fuel from lead.” Despite this progress, the fast-growing global vehicle fleet continues to contribute to the threat of local air, water and soil pollution, as well as to the global climate crisis: the transport sector is responsible for nearly a quarter of energy-related global greenhouse gas emissions and is set to grow to one third by 2050. While many countries have already begun transitioning to electric cars, 1.2 billion new vehicles will hit the road in the coming decades, and many of these will use fossil fuels, especially in developing countries. This includes millions of poor-quality used vehicles exported from Europe, the US and Japan, to mid- and low-income countries. This contributes to planet warming and air polluting traffic and bound to cause accidents. “That a UN-backed alliance of governments, businesses and civil society was able to successfully rid the world of this toxic fuel is testament to the power of multilateralism to move the world towards sustainability and a cleaner, greener future,” Andersen said. “We urge these same stakeholders to take inspiration from this enormous achievement to ensure that now that we have cleaner fuels, we also adopt cleaner vehicles standards globally — the combination of cleaner fuels and vehicles can reduce emissions by more than 80 per cent.” In addition, while the world has now eliminated the largest source of lead pollution, urgent action is still needed to stop lead pollution from other sources — such as lead in paints, leaded batteries, and lead in household items. The end of leaded petrol is expected to support the realization of multiple Sustainable Development Goals, including good health and well-being (SDG3), clean water (SDG6), clean energy (SDG7), sustainable cities (SDG11), climate action (SDG13) and life on land (SDG15). It also offers an opportunity for restoring ecosystems, especially in urban environments, which have been particularly degraded by this toxic pollutant. Finally, it marks major progress ahead of this year’s International Day of Clean Air for blue skies on the 7th of September.
Five year disadvantage for diesel vehicles over petrol to stay in Delhi
Delhi government’s transport department on Monday clarified that even though the validity of all categories of vehicles in registration certificates (RC) is 15 years, the owner of a diesel vehicle that is more than 10 years old cannot ply it in the national capital as per a 2018 Supreme Court order. Senior officials said the department has been inundated with queries from vehicle owners regarding validity of a vehicle’s RC, which shows 15 years but isn’t applicable in Delhi. Another reason that has made the department issue public notices regularly is the provisions of the National Vehicle Scrappage Policy, which proposes to allow personal vehicles that are over 20 years old as long as these clear fitness and emission tests. While a diesel vehicle that is more than 10 years old cannot ply in Delhi, an NOC can be obtained for such vehicles older than 10 years, but less than 15 years for States that have conveyed their concurrence for registration of such diesel vehicles, the notice issued on Monday stated. “Owners of such vehicles, i.e., more than 10 year old diesel and more than 15 years old petrol vehicles are hereby advised not to ply them on Delhi-NCR roads and are further advised to get such end-of-life vehicles scrapped through authorised scrappers of the transport department, a list of which is on the department’s website,” the notice read. Officials claimed that the government felt that since the emphasis of the National Vehicle Scrappage Policy is on fitness and not on the vehicle’s age, the same principle should apply for vehicles in Delhi. An official said that work is going on to see if the provisions of the policy can be applicable in the capital and there are plans to approach the Supreme Court and request a review of its 2018 order that prohibits plying of 15-year-old petrol and 10-year-old diesel vehicles in NCR. As per the amended Motor Vehicles Act, plying of old vehicles can invite a fine of Rs 10,000, which is compoundable to Rs 5,000. However, as per the court’s directions, such a vehicle can be impounded and scrapped if found plying on the city roads.
Centre plans to nudge NE states to restart output at ONGC wells
In an attempt to work out a compromise between Assam and Nagaland to restart production from Oil and Natural Gas Corp.’s (ONGC) wells, the Union government is exploring parking the royalty from the oil wells in an escrow account till a border dispute between the states gets resolved, said two government officials aware of the development. Since June, the border dispute has stopped the state-owned explorer from drilling and exploration activities in the area claimed by both states. This comes against the backdrop of festering tension between Assam and Meghalaya that resulted in clashes and deaths. In response to Mint’s query, an ONGC spokesperson in an emailed response said, “Three wells are impacted due to the above-referred stoppage of ONGC activities.” “The three wells are Khoraghat#10z, Khoraghat#48 and Nambar#05,” the spokesperson said in the emailed response and added, “ONGC is actively pursuing the matter with the government of Assam for an early resolution.” India’s oil and gas production fell by 5.22% and 8.06%, respectively, in the year ended 31 March. Crude oil production continued to falter in July, with output down 3.22% from a year earlier. However, according to the monthly production report released by the oil ministry, there was an 18.4% increase in gas production in July. “We will get it sorted out. The question is who gets the royalty from these wells that are being questioned. We are working on getting this resolved. We are saying put the royalty in some account, but let the production begin. Something on the line of an escrow kind of an account till the Union government takes a decision. The states have not said yes. States have problems because of border disputes,” said a Union government official, one of the two people cited above, requesting anonymity. Queries emailed to the spokesperson of the Union petroleum and natural gas ministry on Thursday remained unanswered till press time. Mint couldn’t contact the spokespersons for Assam and Nagaland governments. “There is an ongoing dispute at the border between Assam and Nagaland. Assam says it is my area. Nagaland says the people there are Naga-speaking, and it is their area. Assam claims it as their land. Because of these differences, there is no production happening there,” said the senior Union government official, one of the two people cited above. The production has stopped due to protests by local villagers, said the second person, who also did not want to be named. With India’s domestic energy production being low, energy security is an important focus area for the government, as was articulated by Prime Minister Narendra Modi in his Independence Day speech on 15 August. “India has to make a resolution to make India energy independent before the completion of 100 years of independence,” Modi said in his speech. India spent $101.4 billion on crude oil imports in 2019-20 and $111.9 billion in 2018-19. It is a key refining hub in Asia, with an installed capacity of more than 249.36 million tonnes per annum (mtpa) through 23 refineries. Diversifying India’s energy basket with crude oil supplies from non-Opec sources is part of India’ energy security efforts. India is also tapping new sources such as Guyana. Following the covid outbreak, prices for the Indian basket of crude had plunged to $19.90 in April last year during the first wave before recovering to $73.54 a barrel in July, data from the Petroleum Planning and Analysis Cell showed. India spends around ₹12000 billion annually on energy imports.
LNG prices rebound to highest since Jan as gas inventories remain low
Asian liquefied natural gas (LNG) prices rebounded this week to their highest since January, as more spot demand emerged even as inventories remained low. The average LNG price for October delivery into Northeast Asia LNG-AS was estimated at about $17.20 per metric million British thermal units (mmBtu), up $1.70 from the previous week, industry sources said. Woodside Petroleum sold a cargo for Oct. 10-14 delivery into Tianjin, China to BP while PetroChina sold a cargo for Oct. 16 to 20 delivery into Tianjin to Trafigura on Friday, data from price agency S&P Global Platts showed. Earlier this week, China’s Hebei Gas bought a cargo for delivery into Tianjin in December at about $17.50 per mmBtu while China Gas bought a cargo for delivery into Tianjin over Sept. 2 to 4 at just below $16 per mmBtu, sources said. Still, demand growth for LNG imports into China this winter is expected to be flat from the previous winter amid an economic slowdown and high gas prices, sources said. In Japan, utilities are likely looking to stockpile ahead of winter as a hot summer drew down inventories, traders said. Hokkaido Electric bought a cargo for delivery in November at about $17.30 to $17.50 per mmBtu, they added. Demand from Turkey was firm too, with state energy company Botas seeking 30 cargoes for delivery over September to March, sources said. Kuwait Petroleum likely bought four LNG cargoes it was seeking for delivery over October to January, they added. Gail (India) issued a swap tender offering a cargo for loading from Cove Point in July, next year and seeking a cargo for delivery into Dahej, India in September, one source said. Still, several sell tenders capped price gains this week. Russia’s Novatek offered a cargo for October delivery into northeast Asia while Malaysia’s Petronas sold a cargo from its floating platform for October delivery, sources said. Oman LNG offered a cargo for delivery in late September, they added.
MNGL to extend piped gas to 15 areas in Pune, Pimpri Chinchwad
The Maharashtra Natural Gas Limited (MNGL), which supplies piped natural gas (PNG) to households, has identified more than 15 areas in Pune and Pimpri Chinchwad, where it plans to extend its PNG services in the next few months. The MNGL has so far provided over 3.5 lakh connections of piped gas in the Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) limits. The new areas on the radar include Dhayri, Jambhulwadi, Ambegaon and older parts like Dhanori, Vishrantwadi etc. In the PCMC limits, piped gas will be made available in Ravet, parts of Chinchwad, Moshi, Chikhli and Vishalnagar. The MNGL has said that teams have been approaching housing societies to extend the services and clear doubts over pipes gas services. The MNGL is expecting permission from the PMC next month for digging and laying new pipelines. “Since the permissions are not issued during the monsoon, we expect to receive the clearance next month ,” an official said.
With crude fluctuating around $70 a barrel-mark, OMCs keep fuel rates static
The fluctuation of global oil prices around the lower end of $70 a barrel-mark has ensured relief for the Indian fuel consumers who have been spared of any hike in petrol and diesel prices by the Oil marketing companies (OMC). Still in the wait and watch mode, OMCs decided to keep fuel prices static on Friday, the third consecutive day of no price revision. Accordingly, in the national capital, petrol continued to be sold for Rs 101.49 per litre and diesel Rs 88.92 a litre. Across the country as well fuel prices remained unchanged on Friday .
Indian Oil expands JV with Malaysia’s Petronas to focus on LNG plants
Indian Oil Corp is expanding its joint venture with Malaysia’s state-run Petronas to include building liquefied natural gas (LNG) terminals, fuel retailing and gas distribution, Chairman S.M. Vaidya said on Friday. IOC, the country’s top fuel retailer, imports some liquefied petroleum gas (LPG) through IndianOil Petronas Pvt Ltd, its equal joint venture with the Malaysian firm. The state-run firm is keen to tie up with global firms, as it attempts to strengthen its grip in new cleaner energy areas such as hydrogen. “We are pursuing more such win-win associations with respective segment leaders to explore newer avenues of growth and gain competitive advantage in the future,” Vaidya said at the annual shareholders meet. IOC is investing 1 trillion Indian rupees ($13.49 billion) to raise its refining capacity by 25 million tonnes a year in next 2-5 year, Vaidya said, adding his company aims to maximise yields of chemical products.
Oil and gas rig count rises for 13th month in a row -Baker Hughes
U.S. energy firms this week added oil and natural gas rigs for a fourth week, resulting in the 13th monthly increase in a row, even as a major storm approaches the Gulf of Mexico. The combined oil and gas rig count, an early indicator of future output, rose five in the week to Aug. 27 to 508, its highest since April 2020, energy services firm Baker Hughes Co said in its closely followed report on Friday. The total rig count has doubled, or risen by 254 rigs, over this time last year. For the month, drillers added 20 oil and gas rigs, putting the count up for 13 months in a row for the first time since July 2017. U.S. oil rigs rose five to 410 this week, their highest since April 2020, while gas rigs were unchanged at 97. In August, drillers added 25 oil rigs, the most in a month since January, putting the oil rig count up for 12 months in a row for the first time since July 2017. The gas rig count, meanwhile, declined by six, its first monthly decline since October 2020. U.S. crude futures gained over 10% this week to about $69 a barrel on Friday, putting the contract on track for its biggest weekly gain since June 2020 ahead of the storm. U.S. oil and gas companies on Friday raced to complete evacuations from offshore Gulf of Mexico platforms as Tropical Storm Ida advanced toward fields that provide 17% of the nation’s oil production and about 5% of dry natural gas output. Ida is forecast to become a major hurricane by early Sunday. Enverus, a provider of energy data with its own closely watched rig count, said there were 25 rigs running in the Gulf of Mexico, up 47% year-over-year. Enverus said “that number is likely to temporarily dip in the next week” with the hurricane expected to hit the area, noting the most active operators in the Gulf are units of Royal Dutch Shell PLC with seven rigs, Chevron Corp with four and BP PLC with two.
India plans to emerge as a global leader in green hydrogen: Power Minister R K Singh
India plans to emerge as a global leader in green hydrogen and the country is proposing to mandate using green hydrogen in fertilizer and in refining, power minister R K Singh has told the US Special Presidential Envoy for Climate (SPEC) John Kerry. In a telephonic conversation last evening, Singh also informed Kerry that India will invite bids for green hydrogen in the next 3-4 months to encourage viable usage of hydrogen as a fuel, according to a power ministry statement. India is looking at bids for 4,000 MW of electrolysers capacity, it stated. As per the statement, Kerry has congratulated India on achievements in renewable energy on reaching 146GW Renewables with 63 GW under construction and 25 GW under bids. “Union Minister R K Singh has informed Mr Kerry about India’s plan to emerge as a global leader in green hydrogen. India is proposing to mandate using green hydrogen in fertilizer and in refining. This is part of the government’s commitment towards replacing grey hydrogen with green hydrogen,” the statement said. Singh underlined to the US Presidential envoy that Prime Minister Narendra Modi places the highest importance on the environment. He suggested to him that India and the USA could work together in the areas of innovations for power and technology, pointing out the requirement of bringing down the cost of storage of renewable power. The minister informed Kerry about the recent milestone the country had achieved by crossing 100 GW in Installed solar and wind capacity. “If we add Hydro capacity also, the total installed renewable capacity is 147 GW. Further, 63 GW of renewable capacity is under construction which makes India one of the fastest growing in terms of renewable capacity addition,” it stated. Singh also informed Kerry that the National Hydrogen Energy Mission has been launched to enable cost competitive green hydrogen production. He added that India would be conducting competitive bids for green hydrogen in the next 3-4 months to pave the road for viable usage of hydrogen as a fuel. The other countries need to come up with more electrolyser plants to bring down the costs. It was suggested that India and the USA should work at setting up an alternate supply chain for lithium in order to secure input material for battery energy storage.
Cairn operated Mangala oil field in Barmer completes 12 years of output
Discovered in 2004 as the largest offshore crude oil reserve in the country, the prolific Mangala oil field in Barmer completed 12 years of production. Since first oil was drilled out on August 29, 2009, Mangala field has produced more than 473 mmstb (million stock tank barrels) as on July 2021. The oil fields operated by Cairn Oil & Gas today contributes over 25% to India’s domestic crude oil production. Production from Mangala, and its sister fields Bhagyam and Aishwariya, has contributed $19 billion to the national and state exchequer as on 2021-21, the company said in a statement. The cumulative production from the block has crossed 600 mmboe (million barrel of oil equivalent), playing a significant role in fulfilling the country’s energy demands. Harish Choudhary, state revenue minister, said, “Since the beginning of oil and gas exploration and production by Cairn, there has been visible socio-economic transformation in the landscape of western Rajasthan. The region now produces over 150,000 barrels of crude oil every day.” Going forward, Cairn Oil & Gas has set an ambitious target of contributing 50% of India’s domestic crude oil production. For this, the Rajasthan block and Mangala particularly, will continue to play a driving role. Since the discovery of first oil in 2009, the Mangala field has lived up to its name to truly become auspicious for the country’s energy needs. We have followed a path of continuous innovation, research, and adoption of new technology to maintain production levels,” said Prachur Sah, deputy CEO, Cairn Oil & Gas. The field is home to the world’s largest Alkaline Surfactant Polymer (ASP) flood project and the Mangala pipeline, the world’s longest continuously heated and insulated pipeline that runs from the fields of Rajasthan to refineries in Gujarat, covering 705 km. Additionally, it is home to a full-field Enhanced Oil Recovery (EOR) polymer project that is also the largest of its kind in the world.