Oil & Gas
Commercial LPG prices slashed by Rs 69.50 after a Rs 19 cut in May; ATF prices revised down 6.5%
Oil marketing companies have reduced the price of 19 kg commercial LPG cylinders by Rs 69.50 in Delhi, bringing the new price to Rs 1676. This follows a Rs 19 reduction on May 1, 2024, reflecting a positive trend for businesses. Price adjustments are influenced by international oil prices and other factors.
Govt cuts windfall tax on petroleum crude
The Indian government has cut the windfall tax on petroleum crude to 5200 Indian rupees ($62.33) per metric ton from 5700 rupees, with effect from June 1, according to a notification issued on Friday.
ONGC to form an equal JV with EverEnviro to build 10 CBG plants
Oil and Natural Gas Corp (ONGC) and EverEnviro Resource Management Pvt Ltd are joining forces to construct 10 compressed biogas (CBG) plants, leveraging various feedstocks to reduce CO2 emissions by 7.5 lakh tons annually. ONGC, transitioning into the renewables sector, plans to establish solar, wind, and biofuel facilities alongside acquiring renewable projects. This strategic partnership signifies a pivotal step towards advancing renewable energy production in India.
Adani Total considering building more plants in India for LNG import
The company has a plan to double the capacity of its 5 million metric tonnes-per-year Dhamra LNG terminal in Eastern India, CEO Satinder Pal Singh said, adding that the terminal is operating at about 52% capacity.
India's natural gas demand to rise 7% in 2024, says IEA
Natural gas demand in India is projected to increase by 7% in 2024, primarily due to heightened usage in the industrial and fertilizer sectors. Additionally, the occurrence of heatwaves across the country will lead to higher usage in the power sector. However, despite this, the overall growth in natural gas consumption is expected to be slightly lower compared to 2023, when it saw a growth of nearly 10%.
IGGL updates Mizoram CM on the progress of NEGG project
IGGL, a joint venture of five major petroleum PSUs, has met with Mizoram's Chief Minister, Lalduhoma, to discuss the construction status of the Panisagar - Aizawl natural gas pipeline. The project, part of the North East Gas Grid Project, aims to connect state capitals, major cities, and demand centers in eight North Eastern states at an estimated cost of Rs 9265 crore.
Reliance signs deal with Russia's Rosneft to purchase oil in roubles
Reliance Industries has signed a one-year deal with Russia's Rosneft to purchase at least 3 million barrels of oil monthly in roubles. This agreement, following President Putin's push for alternative financial systems amid Western sanctions, secures discounted oil for Reliance and underscores India's role as a major buyer of Russian crude.
LNG terminals get busier as imports balloon
Capacity utilisation at most import terminals increased during the year, with utilisation rising to 95% from 78% in FY23 at India's largest import terminal at Dahej, showed oil ministry data. Petronet LNG operates the Dahej terminal in Gujarat. Its other terminal at Kochi operated at 21% capacity in FY24, up from 19%.
Government offers two discovered oil and gas fields, one coal bed methane block in special bidding round
DSF was launched in 2016 and since then three rounds have been held. In the first round, 67 discovered oil and gas fields that were clubbed into 46 contract areas were awarded. These fields had an inplace resource potential of 45 million tonnes of oil and oil equivalent gas.
Must Watch
India offers a special auction of discovered small oil and gas fields
The Indian government is offering three small oil and gas fields in an auction closing on July 15. The Directorate General of Hydrocarbons announced the bid round, with two fields in Mumbai offshore and one coal bed methane field in West Bengal. These fields were previously discovered but left undeveloped. Private players have the opportunity for exploration and full pricing and marketing freedom.
ONGC's high investments to delay deleveraging: S&P
S&P Global Ratings stated that increased investments by Oil and Natural Gas Corp (ONGC) will slow its deleveraging over the next 12-24 months, affecting its 'bbb+' standalone credit profile. Despite a 2-3% drop in domestic production and lower realizations in FY2024, ONGC's EBITDA rose to Rs 1.1 lakh crore due to strong performance from subsidiaries MRPL and HPCL. S&P forecasts EBITDA to remain around Rs 1 lakh crore for FY2025 and FY2026, supported by increased production from the Krishna Godavari basin and international assets.
India's robust LNG imports are Asia's standout, but higher prices may weigh: Russell
The surge in arrivals comes even as the spot price for delivery to North Asia has been rallying, rising from a near three-year low of $8.30 per million British thermal units (mmBtu) in the week to Feb. 23 to a five-month high of $12.30 last week.
Big electoral bond buyer Megha Engineering to sell city gas business
Megha City Gas Distribution (MCGDPL), a wholly-owned subsidiary, has decided to consolidate operations and reached out to state-run Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Indraprastha Gas, among other players. It ventured into city gas distribution under the brand name Megha Gas in 2015 and continued to operate as MEIL till FY22.
India's use of crude tankers to export diesel slows in May
Indian refiners reduce diesel shipments to Europe in May due to rising inventories and weak price spreads. April saw high exports, mostly from Reliance Industries' Jamnagar refinery, using Aframax and Suezmax vessels. Cost factors and ample European supply prompt refiners to shift focus back to Asia, exacerbating regional supply glut.
India, Egypt top destinations for Russian seaborne fuel oil, VGO exports in April, LSEG data shows
Crude oil Import: In April, India and Egypt were key destinations for Russian seaborne fuel oil and vacuum gasoil exports, with a total 10% decrease in exports due to maintenance and outages. The EU's embargo redirected Russian exports to Asia. Shipments to India rose while those to China decreased. Egypt saw increased fuel oil supplies for power generation.
