Reliance Industries says petroleum ministry raised $2.81 billion demand in gas migration dispute case
The Ministry of Petroleum and Natural Gas has issued a demand for $2.81 billion to Reliance Industries Limited (RIL) and its consortium partners – BP Exploration (Alpha) Limited and NIKO (NECO) Limited – over a long-standing dispute regarding gas migration from ONGC’s blocks to the KG-D6 block, RIL said on Tuesday. The claim stems from a case dating back to 2018, when the Government of India (GOI) had raised allegations against the KG-D6 Consortium, which includes RIL, for allegedly causing gas to migrate from ONGC’s neighboring blocks. The Ministry had initially sought compensation of around $1.55 billion in relation to the supposed migration. This legal dispute was further complicated by a series of judicial proceedings, with the case reaching the Delhi High Court. In May 2023, a single judge bench of the Delhi High Court had dismissed the GOI’s appeal challenging an arbitral award in favor of RIL. However, following the government’s appeal to a Division Bench, the court reversed the earlier ruling in a judgment delivered on March 3, 2025. As a result of this reversal, the Ministry of Petroleum and Natural Gas has now raised a demand for $2.81 billion, citing the updated legal developments and the revised assessment of the gas migration issue.
U.S. Sanctions, Not Demand, Behind Weak Start for Asian Oil Imports
Weaker-than-expected oil flows to Asia have led to some questioning the validity of oil demand forecasts for the year. Imports have indeed been 780,000 bpd lower in January and February than a year ago—yet it has already been an eventful year. Anything might happen yet—including even more bearish things for oil. The 780,000 bpd figure comes from LSEG Oil Research, as reported by Reuters’ Clyde Russell. The decline put the average daily intake of oil in Asia at 26.17 million barrels. Unsurprisingly, it was China that drove the decline, with its crude imports falling by a sizable 840,000 barrels daily over the first two months of 2025. The total daily average stood at 10.42 million barrels, down from 11.26 million barrels over the first two months of 2024. The trend chimes in with reports about Chinese refiners slashing their run rates due to the end of cheap Russian crude, as reported last month. The cause of the price rise: the Biden administration’s last sanction package against Russia’s oil industry. The Biden Administration’s farewell sanctions on Russian oil trade and shadow fleet crippled the supply of ESPO crude, which is shipped from the Far Eastern Russian port of Kozmino. ESPO has been a favorite with Chinese refiners, but the scores of oil tankers sanctioned by the U.S. slashed the availability of non-sanctioned tankers to ship the crude to China. With the cost of procuring ESPO going up, run rates at independent refineries have gone down. However, this might change because Russia has reportedly started to reshuffle tankers to prioritize shipments to China. Aframax tankers that serviced crude exports from Russia’s western ports are now being redirected to the Russian Far East-China route to service the exports of ESPO crude. The above is according to Bloomberg and suggests that it is not demand for oil that is the problem in Asia but rather complications around securing affordable supply. Indeed, an earlier report by Reuters suggested that Chinese oil imports from Russia—and from Iran—were set for a rebound as the tanker market adjusted to the new challenges. The adjustment involved as many as 11 tankers that haven’t been sanctioned by the U.S. that have recently joined the oil delivery route from Russia to China, including vessels that have previously carried Russian oil to India, according to LSEG data cited by Reuters. That followed a surge in freight rates resulting from the last Biden sanctions against Russia. This, too, suggests that demand for crude oil in Asia is not really an issue—access to supply is the issue. Indeed, while analysts ponder whether China’s oil demand growth has already peaked, one of the world’s largest energy traders recently predicted that global oil demand will remain at current levels until at least 2040. According to Vitol, long-term oil demand will remain stable at around 105 million barrels daily, even as the drivers behind this growth change. The trading major expects gasoline demand to decline but demand from the petrochemicals industry to rise, offsetting the decline. Over the shorter term, China will continue to be among the chief drivers of oil demand growth despite the weak start of the year, seeing as the causes of that weak start have nothing to do with organic oil demand. Its contribution to global oil demand growth, however, is going to be smaller, as the pace of demand growth moderates. In the years to 2020, China accounted for some 60% of global oil demand growth, according to the International Energy Agency. This decade, this contribution is seen by the IEA declining to 19%. Yet others in Asia are going to replace China with fast demand growth. India is expected to account for 25% of global oil demand growth this year, the U.S. Energy Information Agency said in December, estimating the rate of oil demand growth at 330,000 barrels per day. Estimates also say that India’s gas consumption could double by 2040 and triple by 2050. So, with India, forecasters see both a strong 2025 and a strong long-term trend in oil demand growth. All this suggests that the weak start to the year in Asian imports of crude oil may well be a glitch, driven by the former U.S. administration’s foreign policy rather than any fundamental factor. The new administration, meanwhile, is making an effort to drive demand for oil higher—including by ending the war in Ukraine and clearing the way for freer Russian oil exports once U.S. sanctions are lifted. Should this scenario play out, it is quite likely that bearish oil demand forecasts will change significantly, as they tend to do when fundamentals point to stronger, not weaker demand ahead. After all, even the IEA has had to repeatedly adjust its forecast numbers because demand kept surprising it to the upside.
Petroleum regulator firms up new guidelines for transporting petroleum products by road
India’s Petroleum and Natural Gas Regulatory Board has issued fresh guidelines on transporting petroleum products by road in the wake of recent tragic accidents involving trucks carrying liquified petroleum gas, or LPG. The regulator has prohibited transporting petroleum products by road at night and mandated quarterly safety checks of vehicles to ensure that all safety fittings are installed, maintained and tested, as per its regulations. PNGRB suggested avoiding roads to transport bulk petroleum products over long distances and using pipelines or railway rakes instead. It added that spare pipeline capacity of oil marketing companies be utilized under product sharing or as common carriers to transport petroleum products. On 10 December, the regulator proposed developing nine LPG pipelines with a cumulative length of 3,470 km to connect 50 bottling plants with ports and refineries. “In view of the recent road incident involving the transportation of LPG in tank truck resulting in several casualties and injuries, PNGRB has reviewed the relevant existing statutory rules/regulations, contractual obligations between the entity and transporter, existing practices, etc.,” the regulator said in a recent notification. “While deciding the mode of travel, commerciality should not be the only consideration. Public safety is also an important consideration, particularly when the travel is over long distance and through congested areas,” PNGRB added. The board has asked oil marketing companies to develop comprehensive journey management plans covering aspects such as authorized stops along a particular route, sensitising drivers and crews on black spots and accident-prone areas, emergency actions to be taken in case of accidents, weather forecast for the route.
Anglo-Eastern sets up LNG/ammonia bunkering station skid for maritime training
Ship management services provider Anglo-Eastern has established a new LNG/ammonia bunkering station skid to provide hands-on training in safe and efficient fueling of LNG- and ammonia-powered vessels. The skid was set up at Anglo-Eastern Maritime Academy (AEMA) in Mumbai, India, and inaugurated on February 20, 2025, to offer real-world experience to industry professionals working with these fuel types, Anglo-Eastern said. As explained, the skid is equipped with the latest cryogenic fuelling technology and safety systems, providing a controlled environment for training in LNG and ammonia transfer operations, emergency response procedures, and regulatory compliance, and replicating real-world bunkering operations. Aalok Sharma, Group Director of Training at Anglo-Eastern, said: “We are thrilled to introduce this LNG/Ammonia bunkering station skid as part of our commitment to shaping the future of maritime fuel safety and efficiency. As the industry transitions toward sustainable fuels, the need for well-trained professionals has never been greater. This new facility will equip maritime personnel with the knowledge and hands-on experience required to meet the challenges of LNG and ammonia bunkering.” Additionally, the company has added the Anglo-Eastern MAN PrimeServ training facility at Anglo-Eastern Maritime Training Centre (AEMTC Mumbai), built for Mk 2 ME-GI engines. The new facility is capable of demonstrating important aspects of engine operations and correct procedures for carrying out maintenance and safe operation of ME-GI engines onboard.
GreenLine expands LNG network in India
GreenLine Mobility Solutions is expanding its LNG fuel station network in India, going from three to 10 outlets this year. The Indian transport solutions company also aims to reach 1,000 LNG-powered trucks by the end of this year, doubling the current amount. Founded in 2021, GreenLine Mobility Solutions – an Essar Group subsidiary – brings liquefied natural gas (LNG) and compressed natural gas (CNG) to corporations in off-gas-grid locations. LNG and CNG As a leader in the green logistics space, the company’s mission is to help make transportation in India sustainable, and it does so by offering LNG and CNG as eco-friendly alternatives to mainstream fossil fuels like petrol and diesel. GreenLine’s own fleet of LNG-powered trucks allows Indian companies to pursue the decarbonization of their trucking fleets. By expanding its network of LNG fuel stations, the company adds a crucial lever to its strategy, allowing more companies to transform their fleet, reduce emissions, and uncouple from the reliance on mainstream fossil fuels.
India emerges as world’s 3rd largest biofuel producer: Hardeep Puri
India has emerged as the world’s third-largest biofuel producer, driving the shift toward cleaner, renewable energy, Minister of Petroleum and Natural Gas, Hardeep Singh Puri, said on Monday. In a post on X, Puri highlighted that India has achieved 19.6% ethanol blending in petrol as of January and is on track to reach 20% very soon, five years ahead of its original 2030 target. This rapid progress is expected to reduce fuel imports and cut emissions. “From the quiet town of Digboi to the world’s top energy markets, India’s petroleum journey is a story of resilience & progress, guided by the visionary leadership of Prime Minister Narendra Modi,” Puri said. Over the last decade, ethanol blending has contributed significantly to rural economic growth, increasing farmers’ incomes and creating jobs while reducing CO2 emissions, equivalent to planting 175 million trees, according to official estimates. The initiative has also saved the country Rs. 850 billion in foreign exchange. Public sector oil marketing companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum have introduced various ethanol-petrol blends nationwide and signed agreements with 131 ethanol plants, which are set to add an annual production capacity of 7.45 billion litres. OMCs are also ramping up storage and infrastructure to handle higher ethanol blending percentages. Puri also noted that Ethanol 100 (E100) fuel is now available at over 400 outlets nationwide. The petroleum minister had launched the high-octane E100 fuel at 183 Indian Oil outlets in March 2024. According to Indian Oil, with an octane rating of 100-105, Ethanol 100 is ideal for high-performance engines. It improves efficiency and power output while environmental impact. E100 can be used in a wide range of vehicles, particularly flex-fuel vehicles capable of running on gasoline, ethanol, or a blend of both. India has also become the fourth-largest in the world in LNG terminal capacity, ensuring stable energy supplies, Puri said. He further noted that the country holds the fourth-largest global refining capacity and ranks as the seventh-largest exporter of refined petroleum products.
China’s LNG Imports Slump to 5-Year Low
Liquefied natural gas imports to China slumped to the lowest since 2020 in February, at 4.5 million tons, Kpler data showed, as reported by Bloomberg. A relatively warm February contributed to the weaker demand, which led to China slipping to the global number-two spot in LNG imports, overtaken by energy-hungry Japan. In addition to the weather, demand in China was also weaker due to lower industrial activity and ample gas in storage. Last year, China saw a surge in LNG and pipeline gas imports as it sought to fill its storage caverns. Over just the first half of the year, total natural gas imports saw an annual increase of 14.3%, reaching 64.65 million tons. After the rush to fill storage, imports of natural gas weakened as facilities were full at capacity. Meanwhile, the introduction of a 15% retaliatory tariff on U.S. imports of LNG, on the other hand, would affect future flows of the energy commodity from and into the world’s largest energy importer. The tariffs, triggered by President Trump’s introduction of an additional 10% tariff on all Chinese imports into the United States, are widely expected to affect global energy markets. China may stop buying U.S. LNG on the spot market and seek to swap American cargoes from elsewhere after the tariffs went into effect. Chinese gas buyers could also become more hesitant to commit to long-term contractual supply for U.S. LNG from projects expected to make final investment decisions in the coming years, analysts and industry representatives say. If the U.S.-China trade dispute escalates, Chinese buyers may not be willing to enter into long-term agreements to buy American energy. This could undermine one of the top priorities of the Trump Administration – boosting LNG exports to reduce the U.S. trade deficit and increase geopolitical influence.
Government Headhunter Fails to Find BPCL CEO
After HPCL, the government headhunter struggled to find a suitable candidate for the top job at Bharat Petroleum, as most applicants were narrow specialists lacking multidisciplinary experience needed to run a large organisation. The Public Enterprise Selection Board (PESB) last month interviewed a dozen candidates including BPCL Director (Finance) Vetsa Ramakrishna Gupta and its Director (Refineries) S Khanna but found none suitable for the job of chairman and managing director of Bharat Petroleum Corporation Ltd (BPCL), according to a PESB order. It advised the administrative ministry “to choose an appropriate course of further action for selection including the search cum selection committee,” according to the order. Incumbent G Krishnakumar superannuates as chairman and managing director of BPCL on April 30 this year. BPCL is the fourth company in the oil sector where PESB couldn’t find a suitable candidate since 2021. PESB in May 2023 did not make any recommendation for the top post at Indian Oil Corporation (IOC) and the task was then entrusted to a search cum selection committee. That panel picked Arvindar Singh Sahney who was appointed chairman of IOC in November 2024. In June last year, PESB interviewed eight candidates, including a director on HPCL board and managing director of Indraprastha Gas Ltd, for the post of chairman and managing director at HPCL but rejected them all. HPCL top position has been lying vacant since August 31, 2024, when Pushp Kumar Joshi superannuated. Previously in June 2021, PESB reached a similar conclusion while looking for a candidate for the top job at Oil and Natural Gas Corporation (ONGC). A year later, a search-cum-selection committee picked Arun Kumar Singh, the former chairman and managing director of BPCL, for that job.
Study Hints At Hydrocarbon Reserves In B’putra North Bank
A pioneering research by a team of energy exploration experts has found promising hydrocarbon potential in the north of the Brahmaputra, defying traditional assumptions that oil and gas reserves in the state were limited to its southern parts. This has come at a time when the hydrocarbon-rich state is poised for major expansion in its energy sector with Prime Minister Narendra Modi himself pitching for energy investments in the state, which delivers 50% of India’s onshore natural gas, at the recently held Advantage Assam 2.0 investment and infrastructure summit. The state has signed MoUs worth Rs 850 billion investment commitments for hydrocarbon exploration in the state over the next five years from OIL, ONGC and Cairn Oil & Gas, Vedanta Ltd. Dr Annapurna Boruah, senior associate professor at the University of Petroleum and Energy Studies (UPES), Dehradun, alongside Dr Sumit Verma, associate professor at the University of Texas Permian Basin (USA), Dr Gaurav Gairola, a researcher from KAUST Saudi Arabia, Anuj Gogoi, and Dr Abdul Rasheed, a scientist from the Gujarat Energy Research and Management Institute (GERMI), carried out the study from 2019 and the findings indicate the presence of hydrocarbon reserves in the northern part of Assam. “Until now, all of Assam’s commercially producing oil fields were concentrated in the southern part of the Brahmaputra. This discovery, however, suggests untapped reserves in the north bank, sparking fresh hopes for new energy exploration ventures,” Dr Boruah told TOI adding, Assam’s Himalayan foothill regions including particular areas of Gohpur, Lakhimpur, Dhemaji have hydrocarbon potential. “In the foothill regions extraordinary observations were made — many gas seepages were analysed which are flowing continuously over many years. This finding, along with the presence of active gas seepages, strengthens the case for potential hydrocarbon reserves in the region,’ she said.
Asia’s Coal Boom is Bad News For Natural Gas
Natural gas bulls betting on the world’s largest and fastest-growing power market to drive global demand over the next couple of decades could be in for disappointment. According to Global Energy Monitor (GEM), Asia’s largest economies have three times more coal-fired power capacity under construction than gas-fired capacity, with coal accounting for ~45% of the region’s power generation. Asia’s largest economies are developing far more solar, wind and hydropower capacity than gas-fired capacity. According to GEM, across 10 of Asia’s largest economies, there is just over 1 million megawatts (MW) of new power capacity under construction, with coal & clean energy sources dominating the continent’s power development pipeline. Solar energy accounts for 26%, or 270,000 MW, of Asia’s power generation under construction, while new coal-fired capacity makes up the second largest share at 24% with just under 250,000 MW. Wind farms and hydropower plants account for a further 20% each, while gas-fired power plants account for a mere 7% share, or 70,000 MW. For some perspective, natural gas accounted for 43.1% of utility-scale power generation in the U.S. in 2023, renewable energy 21.4% while coal contributed 16.2%. Asia’s largest economies are not about to ditch coal despite some having ambitious clean energy goals. China approved 66.7 gigawatts (GW) of new coal-fired power capacity in 2024, with Asia’s largest economy building coal-fired power plants at a record clip as it tries to counter the effects of drought on hydropower production. In 2024, China’s coal production reached a record 4.76 billion tons, a 1.3% increase from 2023, according to China’s National Bureau of Statistics (NBS). At the same time, 94.5 GW of new coal power projects started construction and 3.3 GW of suspended projects resumed construction in 2024, the highest level since 2015, with a large number of new coL plants slated to come online in the next 2-3 years. “China’s government has put energy security and energy transition at odds with one another. Beijing has clearly stated that coal power will still grow at a ‘reasonable pace’ into 2030,” Greenpeace’s Gao Yuhe has told Reuters. Meanwhile, two years ago, India’s coal minister declared that the country has no intention of ditching coal from its energy mix any time soon. Addressing a parliamentary committee, minister Pralhad Joshi said that coal will continue to play an important role in India until at least 2040, referring to the fuel as an affordable source of energy for which demand has yet to peak in India. “Thus, no transition away from coal is happening in the foreseeable future in India,” Joshi said, adding the fuel will continue to play a big role until 2040 and beyond. China Still Rules Renewable Energy In sharp contrast, the global coal fleet outside China shrank by 9.2 GW in 2024, reinforcing China’s dominant role in shaping the future of coal power. China now accounts for 93% of global construction starts for coal power in 2024. In yet another paradox, China remains the global leader in clean energy manufacturing. Last year, China’s clean-energy technologies made up more than 10% of the country’s economy for the first time ever, with sales and investments hitting 13.6tn yuan ($1.9tn), exceeding the real estate sector. China’s renewable energy sales and investments dwarfed the global fossil fuel funding total of $1.12 trillion. China’s installed capacity for renewable energy, including wind and solar, reached 1,410 gigawatts last year, surpassing coal. China has become especially dominant in solar energy manufacturing, having invested 10 times more than Europe in wafer-to-solar panel production lines. China controls ~95% of the world’s polysilicon and wafers, prompting the International Energy Agency (IEA) to warn of the dangers the world is exposing itself to by relying so heavily on the Middle Kingdom for its solar needs, “The world will almost completely rely on China for the supply of key building blocks for solar panel production through 2025. This level of concentration in any global supply chain would represent a considerable vulnerability,” the agency wrote in a special report. Last year, U.S. Treasury Secretary Janet Yellen warned that China’s national underwriting for energy and other companies is creating oversupply and distorting global markets.“I will convey my belief that excess capacity poses risks not only to American workers and firms and to the global economy, but also productivity and growth in the Chinese economy, as China itself acknowledged in its National People’s Congress this month,” she added.