India

India Plans Larger Oil Auctions as Modi Pursues Import Cuts

15 Sep 2017   India

“We want to create a lot of E&P companies in India,” said the head of the country’s oil regulator. (Bloomberg) — India will offer larger areas with higher oil and natural gas reserves in the next auction of discovered fields later this year as Prime Minister Narendra Modi’s government seeks to curtail rising crude oil imports. “The next round would be meatier, bigger and players can expect even better fields,” Atanu Chakraborty, head of oil regulator Directorate General of Hydrocarbons, said in an interview. “The reserves are twice of that we offered in the first auction round, on a very conservative estimate.” India last year offered 67 small oil and gas fields holding about 625 million barrels of reserves in its first auction in six years allowing new entrants such as drugmakers and engineering companies to try their hand at boosting local production. The government also relaxed rules by […]

India Sees Lowest Fuel Demand Growth In 14 Years

13 Sep 2017   India

India reached a 14-year low in fuel demand as the effects of a massive flooding event that unfolded over the past few weeks become clearer. National oil demand fell by 6.1 percent as Indians in select areas tend to their homes to measure the water damage from stronger than usual monsoon rains. India is the world’s fastest growing oil consumer. The Asian country used 15.75 million tons of fuels last month, about 1 million tons lower than figures from last year from the same month. Demand for diesel – which represents 40 percent of fuel demand for the country – fell 3.7 percent as well. “Severe flooding in parts of the country may have impeded freight and manufacturing activities causing overall demand to contract,” Nevyn Nah from Energy Aspects said. “Also, demand growth was exceptionally strong in August last year resulting in a high base.” Last August’s figures showed […]

BP’s New Offshore Project In India

12 Sep 2017   India

A current existing deal between international oil giant BP (ticker: BP) and SOCAR in the Azeri-Chirag-Guneshli (ACG) field is due to expire in 2024. A new plan will take SOCAR’s stake in the field to 20 percent from the current 11.6 percent while BP’s share is predicted to drop to 30 percent from the current 35.8 percent, according to a report by Reuters. BP will remain the project operator. Oil output in the ACG field has declined from 16 million tons a year ago to 14 million tons, which may have influenced BP’s decision to reduce its share. Offshore India While BP is reducing its share in the ACG field, it is also setting its sights on India’s Krishna-Godavari Basin . Source: Directorate General of Hydrocarbons Recently Reliance and BP announced a $6 billion investment into gas projects located in the basin that is projected to increase gas production […]

ExxonMobil slashes LNG price to India in bad omen for producers

11 Sep 2017   India, LNG

India has won a price cut on a 20-year liquefied natural gas (LNG) deal with global giant ExxonMobil Corp (XOM.N) in a rare contract renegotiation, a bad sign for producers in a heavily oversupplied global market. In a trade-off for ExxonMobil, India’s Petronet LNG (PLNG.NS) will increase its volumes from the Gorgon LNG project in Australia by an extra 1 million tonnes a year to about 2.5 million tonnes a year, but at cheaper rates than initially agreed in 2009. Long-term contracts are rarely revised in the LNG market, and for a big producer to cave in shows how supply from new plants in Australia and the United States over the past two years has transformed the market, analysts said. “This trend is overall a negative for sellers, as they are forced to provide more flexibility to buyers’ needs to maintain their markets,” said Saul […]

India’s second largest state seeks to quash Goldman-backed solar project

9 Sep 2017   India, Solar

India’s second largest state has appealed to the country’s top court to quash a Goldman Sachs-backed solar project, highlighting the challenges faced by solar companies looking to expand in Asia’s third largest economy. Madhya Pradesh’s attempts to scrap the agreement with ReNew Power over the 51 megawatts (MW) project, citing land acquisition delays, were thrown out by a state court. But the central Indian state’s distribution company (discom) has now appealed to the country’s highest court, potentially setting up a prolonged legal battle. The move comes after Madhya Pradesh canceled three solar power purchase deals with Canada-based Sky Power Global, also due to issues related to land acquisitions. Sky Power challenged the cancellations in the state high court, but lost the case. India is targeting a 30-fold increase in solar power generation capacity to 100 gigawatts (GW) by 2022. But the plan risks running into […]

Renewables could bring balance to India’s economic growth.

23 Aug 2017   India

India, one of the world’s fastest growing economies, could offset the strains of development through low-carbon efforts, an international energy report found. A report on India’s energy sector from the International Renewable Energy Agency found the government could save on health-related costs and create more jobs while at the same time seeing the demand for coal and oil products drop between 17 percent and 23 percent by 2030. “Balancing economic growth and development, environmental protection, and energy security is a real challenge in India that can be tackled by enabling more renewable energy deployment,” Dolf Gielen, a technology director at IRENA, said of a report from the agency. India aims to triple its renewable power capacity by 2022 to 175 gigawatts by drawing […]

India Essar closes sale of refining arm to Rosneft led consortium

21 Aug 2017   India, Russia

India’s Essar Group on Monday announced closure of $12.9 billion deal to sell its refining arm Essar Oil to a consortium led by Russian oil major Rosneft, boosting ties between the world’s top oil producer and the fastest growing fuel consumer. The purchase is the biggest foreign acquisition ever in India and Russia’s largest outbound deal. It helps Russia deepen economic ties with India that stretch back to the Soviet era. Rosneft will get a 49.13 percent stake in Essar Oil and the two investors, European trader Trafigura and a Russian fund UCP, will hold a similar stake in equal parts, Essar group said in a statement. The rest will be held by retail investors. The deal will give Rosneft and its partners control of 400,000 barrels per day (bpd) […]

Electric cars may take over Indian roads by 2020

19 Aug 2017   Electric Cars, India

Even as Indians take to the road like never before, consumers could well be buying their last petrol or diesel car, according to a US-based expert. Using the country’s quick adaptation of smartphones as a model, Tony Seba, lecturer of Entrepreneurship, Disruption and Clean Energy at Stanford University, says electric vehicles could bring about a similar massive transportation disruption in India as early as 2020. What’s more, he predicts that internal combustion vehicles which run on petrol and diesel could be wiped out globally in as little as 8-10 years. Seba’s warning comes as passenger vehicles in India in financial year 2016-17 grew at 9.24 per cent, the fastest rate of growth in six years, largely on the backs of utility vehicles, most of which run on diesel, which is much cheaper than petrol. “Remember at the time of Smartphones India was the country which was the quickest to […]

Indian Oil Obtains Govt Approval To Import U.S. Oil Every Month

11 Aug 2017   India

India’s biggest refiner, Indian Oil Corp, has secured government permission to import one very large crude carrier (VCCC) of U.S. crude oil every month this year, as Indian firms started buying American crude for the first time. India allows oil imports only on Indian carriers, but U.S. crude transportation needs VLCCs, which can be done by foreign shipping companies. India’s shipping ministry has allowed Indian Oil to import one cargo from the U.S. every month in foreign carriers, Indian media report, quoting a senior official at the oil ministry. Last month, Indian Oil became the first Indian company to buy U.S. crude oil, purchasing 1.6 million barrels of Mars crude. A week later, Bharat Petroleum became the second Indian refiner to start buying U.S. crude oil, after Bharat purchased 500,000 bpd each of Mars and Poseidon crude, to be delivered between late September and early October. Just a few […]

India’s refiners bet big on petrochemicals as industry reshapes

11 Aug 2017   India

India’s state oil refiners – long focused on churning out transport and cooking fuels – are planning a $35 billion push into petrochemicals to meet an expected surge in demand for goods ranging from plastics to paints and adhesives. The drive comes as the government seeks to promote durable, cheaper materials in industries such as farming and food packaging, while refiners eye long-term threats to their business from renewable energy and a shift to electric vehicles. India’s per capita consumption of synthetic polymers, for instance, used to make various grades of plastics, is just 10 kg (22 lbs) a year, compared with a global average of about 32 kg. “India is one of the fastest growing economies globally, but our petrochemical use is one-fourth the world average. We import half of our petchem consumption,” said S. Mitra, executive member at trade body, the Chemical and […]

World’s Third Largest Oil Importer Secures Deal With U.S.

11 Jul 2017   India, USA

Indian Oil Corp. will take delivery of more than a million barrels of U.S. heavy crude in October—the first U.S. crude oil purchase by an Indian energy company, IOC’s finance chief told Reuters, and certainly not the last one. The deal includes 1.6 million barrels of Mars crude plus 400,000 barrels of Western Canadian Select, to be shipped to by PetroChina. The price, IOC’s A.K. Sharma said, was “very competitive” to Iraq’s Basra Light, and as long as it stays that way, more U.S. oil will ship to India. Heavier crude blends, Reuters notes, are a new favorite for Indian refineries, which recently underwent large-scale modifications, and they sell more cheaply than lighter blends. India joins Taiwan, Japan, South Korea, China, Thailand, and Australia as a U.S. oil importer as the Asian-Pacific nations seek to diversify their import sources. U.S. crude oil exports have been on the rise, hitting […]

India buys first ever U.S. crude oil, to step up purchases

10 Jul 2017   India, USA

India, the world’s third-largest oil importer, will import crude oil from the United States for the first time after Indian Oil Corp bought a cargo that will be delivered in October. The purchase comes after Indian Prime Minister Narendra Modi’s visit to the U.S. in June when President Donald Trump said his country looked forward to exporting more energy products to India. IOC bought 1.6 million barrels of U.S. Mars crude, a heavy, high-sulfur grade, and 400,000 barrels of Western Canadian Select that will be delivered onboard a Very Large Crude Carrier, IOC’s head of finance, A.K. Sharma, told Reuters. PetroChina was awarded the tender to sell the cargoes and is expected to load the oil off the U.S. Gulf Coast, said a trading source with direct knowledge of the sale. The cargo was priced on a delivered ex-ship basis, which is “very competitive” to that of Basra Light, […]

Iraq Dethrones Saudi Arabia As India’s No.1 Oil Supplier

16 Jun 2017   India, Iraq

Iraq has been India’s largest supplier of crude oil for the last three months, shipping data from Bloomberg has revealed . This means that OPEC’s number-two has dethroned the cartel’s leader—Saudi Arabia—which has been the top supplier in the world’s fastest-growing market in terms of oil consumption. Iraq produced almost a quarter of the oil India imported last month, or 23 percent, exporting at a daily rate of 1 million barrels. That is compared to a monthly average export market share of 19 percent for the prior four months. Saudi Arabia, on the other hand, supplied 17 percent of the crude India bought in May. Iraq has consistently shown signs of an expansion strategy for its oil industry, despite its participation in the OPEC agreement for oil output reduction. While Iraq has not been fully compliant to the production caps, Saudi Arabia has been over-compliant—a fact that contributed to […]

India’s Rising Temperatures Are Deadly: Study

9 Jun 2017   India

India is now two and a half times more likely to experience a deadly heat wave than a half century ago, and all it took was an increase in the average temperature of just 0.5 degrees Celsius (less than 1 degree Fahrenheit), a new study shows. The findings are sobering considering that the world is on track for far more warming. For the last two weeks much of Asia has been gripped by a heat wave, with a record high of 53.5 degrees C (128.3 degrees F) set in the southwest Pakistani city of Turbat on May 28 — the world’s hottest-ever temperature recorded for the month of May. Temperatures in the Indian capital of New Delhi have soared beyond 44 degrees C (111 degrees F). Even if countries are able to meet the Paris Agreement goals in curbing climate-warming carbon emissions, that would still […]

India’s record diesel demand to continue in 2017, growth to slow

30 May 2017   India

India’s diesel demand is expected to rise to record levels again this year as a slew of infrastructure projects boosts use of the transport and industrial fuel, although a government-induced cash shortage will hold growth to its slowest in three years. Increased fuel efficiency, a fall in commercial vehicle sales, and the use of other fuels for power generation are also expected to dent demand growth for diesel, analysts and traders told Reuters. “The first quarter saw delayed effects of demonetization but I think (diesel demand) should improve as there are a number of projects going on such as road and railways, which should drive diesel demand up,” said Tushar Bansal, director of Ivy Global Energy, a Singapore-based consultancy. India has budgeted a record $59 […]

Exclusive: IEA to review oil demand outlook after China, India signal auto policy shifts

The International Energy Agency will review its electric vehicle (EV) use and oil demand forecasts after India and China recently signaled new policies in favor of electric cars and vehicles using other alternatives to gasoline. In its current policies scenario, last updated in November 2016, the IEA expects vehicle demand for oil to rise until 2040. But after the world’s two fastest growing oil markets, China and India, indicated they are likely to take radical turns away from gasoline, the IEA says it will need to review its forecasts. “We will therefore revisit our analysis of future EV market penetration on the basis of these new announcements for the next World Energy Outlook 2017, to be released on 14 November,” an IEA spokesman told Reuters. In […]

Oil Purchases by Top Indian Refiner Show Where Market Glut Bites

8 May 2017   India

Indian Oil boosting spot purchases of low-sulfur crude: Ashok Company reducing share of purchases made via long-term deals The global oil market glut is helping India’s biggest crude processor become nimble. While Indian Oil Corp. used to buy more than 80 percent of its crude via long-term contracts, it’s cut that share down by 10-12 percent over the past three years, said Chairman B. Ashok. That’s because a flood of “light” low-sulfur crude exacerbated by the U.S. shale boom has given the state-run company more opportunities to make spot purchases over scheduled imports of heavier, higher-sulfur Middle East oil, he said. The output-cut deal between OPEC and its allies to ease a glut has done little to shrink the flow of crude with lesser sulfur content that’s easier to process into lucrative fuels such as gasoline. Most of the supply produced in U.S. shale fields, Nigeria and Libya — […]

India admits it will miss coal emissions targets

3 May 2017   India

India’s ageing power stations will miss a government deadline to slash their emissions, the country’s power minister has admitted, as he reiterated the country’s longstanding position that the responsibility for tackling global pollution rests squarely with the west. Stricter standards from the country’s environment ministry, introduced two years ago, gave the country’s mostly state-owned thermal power plants until December this year to cut carbon dioxide, sulphur dioxide and nitrogen oxide emissions and reduce their water use. The new rules, which affect stations differently depending on how old they are but require cuts of up to two-thirds in particulate matter, were intended to “minimise pollution”. But Piyush Goyal, the power minister, told the Financial Times that the country’s coal power stations, three-quarters of which are owned by the government, “will take some more time” to upgrade their technology and cut emissions. “India is not a polluter. It’s America and the western world that has to first stop polluting . . . India is doing its bit far more than we are responsible” he said. “We don’t have enough domestic capacity to meet this requirement in such a short period.”

Population Threat to India’s economy

18 Apr 2017   India

As of Thursday, April 13, 2017, India’s population, based on the latest United Nations estimates, was 1,339,040,095, only some 47 million more than China’s total population on that day. The UN estimate (Worldometers) records India’s population as 17.86 per cent of the total world population as against China’s 18.47 per cent. In 2016, India’s population grew by 1.20 per cent, compared to China’s 0.54 per cent despite the latter’s lately liberalised two-child-per-family population policy. Demographers have forecast that India may overtake China’s population as early as in 2022, that is five years from now. Currently, China ranks No.1 in the list of countries (and dependencies) by population. India is No. 2. At the time of India’s Independence in 1947, the country’s population was only around 330 million. It went up to 520 million in 1968, said a report in an External Affairs Ministry publication, that year. Indira Gandhi was India’s Prime Minister, then. The population growth rate was always politically sensitive, and Mrs Gandhi avoided its official reference, until her younger son, Sanjay Gandhi, made it a part of his five-point programme during the national emergency period and started a vigorous birth-control campaign through ‘forced’ sterilisation that was said to be partly responsible for the Congress party’s crushing defeat in the post-emergency 1977 Lok Sabha election. Ever since, every government went for ‘self-control for birth control’ policy until BJP’s newly-elected Assam Chief Minister Sarbananda Sonowal announced a few weeks ago a new rigorous-looking population control policy — first time by any state in this country — for Assam which has been witnessing a big population explosion due to high birth rate as well as constant illegal immigration from bordering Bangladesh.

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India Oil Demand Shrinks 3rd Month Amid Demonetization Drag

11 Apr 2017   India

Diesel use rises 0.3 percent, gasoline demand up 2.9 percent Consumption in January-March about 3% lower from year earlier India’s oil consumption fell for a third straight month, with the use of bitumen and naphtha declining and diesel demand growth flat, amid the continuing effects of demonetization. Total fuel consumption fell 0.7 percent to 17.36 million tons in March, according to the Oil Ministry’s Petroleum Planning and Analysis Cell. That puts consumption during January-March about 3 percent lower than the same period last year as the economy slows under the impact of Prime Minister Narendra Modi’s decision in November to remove high-denomination currency notes from circulation. “I think the resilience of demand in the face of an incredibly high 2016 base is impressive, especially given the turbulence caused by demonetization,” Virendra Chauhan, an oil analyst at Energy Aspects, said. “Gasoline, diesel and LPG, the key drivers of Indian oil […]

Iran leapfrogs Iraq as India’s no. 2 oil supplier in February: trade data

13 Mar 2017   India, Iran, Iraq

India’s oil imports from Iran rose nearly 17 percent in February from a month earlier as refiners received less crude from key OPEC producers Saudi Arabia and Iraq after an OPEC deal to cut output, shipping data showed on Monday. The jump meant Iran replaced regional rival Iraq as India’s second-biggest oil supplier – a role Tehran used to occupy before Western sanctions were imposed against it over the country’s disputed nuclear program. While Saudi Arabia remained the biggest oil supplier to India, ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts showed imports from Iran rose to 647,000 barrels per day (bpd) in February. That was 16.7 percent more than January, and almost trebled from February […]

India’s Oil Demand Is Set To Break More Records

22 Feb 2017   India

India continues to look for alternatives to oil imports as its auto sector, economy, and population continue to boom. India’s oil consumption growth reached a record-level 11 percent last year as an increasing urban population with rising income fueled greater use of cars, trucks, and motorbikes. The country consumed 196.5 million tons of oil products in 2016, up from 177.5 million tons in 2015, according to the Oil Ministry’s Petroleum Planning & Analysis Cell. Demand for gasoline jumped 12 percent last year to 23.7 million tons, while diesel demand grew 5.6 percent to 76.7 million tons. The U.S. Department of Energy reports that India was the fourth largest consumer of crude oil and petroleum products in the world in 2015, after the U.S., China, and Japan. The country depends heavily on imported crude oil, mostly from the Middle East, similar to China. More than 80 percent of its crude […]

India’s Air Pollution Rivals China’s as World’s Deadliest

14 Feb 2017   India

India’s rapidly worsening air pollution is causing about 1.1 million people to die prematurely each year and is now surpassing China’s as the deadliest in the world, a new study of global air pollution shows. The number of premature deaths in China caused by dangerous air particles, known as PM2.5, has stabilized globally in recent years but has risen sharply in India, according to the report, issued jointly on Tuesday by the Health Effects Institute, a Boston research institute focused on the health impacts of air pollution, and the Institute of Health Metrics and Evaluation, a population health research center in Seattle. India has registered an alarming increase of nearly 50 percent in premature deaths from particulate matter between 1990 and 2015, the report says. “You can almost think of this as the perfect storm for India,” said Michael Brauer, a professor of environment and health […]

India’s Oil Demand Plunges Most in 13 Years Amid Cash Ban

13 Feb 2017   India

India’s monthly oil demand fell the most since May 2003 as the government’s crackdown on high-value currency notes continued to reverberate through the country’s $2 trillion economy. Fuel consumption fell 4.5 percent to 15.5 million tons in January from 16.2 million tons a year ago, the Oil Ministry’s Petroleum Planning and Analysis Cell said Friday. Diesel use, which accounts for about 40 percent of total fuel demand in India, dropped 7.8 percent to 5.8 million tons, the biggest decline since September. Gasoline consumption fell the most since June. Expansion in the world’s fastest-growing major economy is under pressure after Prime Minister Narendra Modi in November withdrew high-value currency notes in a country where almost all consumer payments are in cash. Growth in gross domestic product may slow to 6.5 percent in the year through March from 7.9 percent the previous year, according to an Economic Survey presented by the […]

India plans oil giant to take on global rivals

1 Feb 2017   India

India plans to form a giant national oil company by combining other state-owned firms, finance minister Arun Jaitley said on Wednesday, as New Delhi wants to expand its foreign presence to meet growing domestic fuel demand. India, struggling to lift its local oil production, imports about 80 percent of its oil needs. Prime Minister Narendra Modi in 2015 set the goal of cutting this import dependence to 67 percent by 2020. “We propose to create an integrated public sector oil major which will be able to match the performance of international and domestic private sector oil and gas companies,” Jaitley said in his budget speech. India has about a dozen state-run oil and gas companies – including Indian Oil Corp ( IOC.NS ), Oil and Natural Gas Corp ( ONGC.NS ), Hindustan Petroleum Corp ( HPCL.NS ) and others – but alone they do not have the financial power […]

Explorers in World’s Fastest-Growing Oil Market Seek Tax Breaks

20 Jan 2017   India

Explorers in the world’s fastest-growing oil market are seeking lower taxes on crude produced domestically to encourage fresh drilling as India tries to reduce its dependence on energy imports. State-run Oil & Natural Gas Corp. and the biggest private producer Cairn India Ltd. want Finance Minister Arun Jaitley to at least halve the tax on crude oil production in the federal budget due Feb. 1. India surprised some explorers last year with its 20 percent levy on crude produced locally, moving from a fixed charge. Companies pay more now with crude near $50 a barrel than they did under the old system when it was double the price. “Globally, given the low oil price scenario, governments have provided incentives to stimulate and attract investments,” said Sudhir Mathur, interim chief executive officer at Cairn India. “In India, the cess rate of 20 percent acts as a disincentive to increase production […]

India’s Auto Sales Trigger Oil Demand Rising 11% to Record

11 Jan 2017   India

No compatible source was found for this media. India’s oil consumption surged 11 percent to the most on record last year as rising income levels spur greater use of cars, trucks and motorbikes, expanding fuel demand. The world’s second most populous nation consumed 196.5 million tons of oil products in 2016, up from 177.5 million tons in 2015, according to the Oil Ministry’s Petroleum Planning and Analysis Cell. Gasoline demand increased 12 percent in the year to 23.7 million tons and diesel consumption grew 5.6 percent 76.7 million tons. Greater automotive use spurred by rapid economic expansion has made India a bright spot for global oil demand and local refiners are racing to add capacity. The International Energy Agency forecasts India to be the fastest-growing crude consumer in the world through 2040. “We expect gasoline growth at 10 percent” and oil demand to expand by 7.6 percent this year, […]

India’s gasoline thirst shows no sign of being slaked: Kemp

11 Jan 2017   India

India’s gasoline consumption continues to grow rapidly as an increasing number of individuals purchase their first motorized vehicle, helping drive the fastest growth in fuel demand in the world. India’s gasoline consumption rose more than 12 percent in 2016 compared with 2015, according to preliminary fuel sales figures compiled by the Ministry of Petroleum and Natural Gas ( tmsnrt.rs/2ierliq ). Motor spirit consumption averaged 574,000 barrels per day in 2016, up from 513,000 bpd in 2015 and 447,000 bpd in 2014. Consumption is being driven by an enormous increase in the number of drivers on the country’s roads for the first time. The number of registered motor vehicles hit 210 million by March 2015 up from just 105 million in March 2008 (“Road Transport Yearbook”, Ministry of Road […]

Feature: India aims to revive oil, gas output in pursuit of energy security

30 Dec 2016   India

India is making a concerted effort to lower its reliance on imported crudes with the government focused on boosting domestic production, promoting renewables and improving the refining process, at a time of increasing demand. Highlighting the growing importance of energy security, Indian Prime Minister Narendra Modi told delegates as much at an energy conference in early December. “We need to increase our domestic oil and gas production and reduce import dependence. I have set a target to reduce import dependence by 10% by [fiscal] 2022,” Modi told the Petrotech conference in New Delhi, referring to crude oil. “This will have to be achieved during a period of increasing oil consumption.” India is witnessing double-digit growth in oil product demand on the back of sustained GDP growth and rising disposable incomes. The country imported 197.5 million mt (4.33 million b/d) of crude oil in the first 11 months of 2016, […]

India data: Nov crude oil imports rise 12.7% on year

20 Dec 2016   India

India’s crude oil imports in November rose 12.7% year on year to 18.76 million mt, or an average 4.58 million b/d, latest provisional data from the country’s Petroleum Planning and Analysis Cell showed. The imports in November were 3.3% higher than October. Domestic refiners have been trying to run refineries at over 100% capacity as local demand soar. Crude imports are expected to rise in financial year 2016-17 (April-March) as the newly commissioned 15 million mt/year Paradip refinery on the east coast ramped up to capacity, and the west coast Kochi refinery completed an expansion to 15.5 million mt/year in May, from 9.5 million mt/year. LPG imports in November rose 38.2% year on year to 1.01 million mt and also 0.5% higher than October. Naphtha imports in November rose 26.6% year on year to 200,000 mt, but fell 7.0% from October. –Ratnajyoti Dutta, newsdesk@spglobal.com –Edited by Irene Tang, irene.tang@spglobal.com […]

The World’s Most-Polluted Region Faces a Conundrum

16 Dec 2016   India

Rail tracks shrouded in smog in New Delhi. Sandeep Singh Parmar embodies in one man the conundrum facing the most-polluted region in the world. Parmar, 35, who lives in New Delhi, also has a 180-hectare family farm in the northern state of Haryana. After every harvest, leftover stubble at his farm is burnt, like thousands of others, blanketing north India in a dense, heavy smog that can be seen by satellites and leaves people gasping for breath. This year, the harvest has been particularly good, boosting Parmar’s farm earnings. But, in a twist of fate, he’s spent most of it buying air purifiers so that his 2 1/2 year-old son can breathe. “The air has been really bad this year,” Parmar said. “My son fell sick and he was wheezing and vomiting and gasping for air because of the pollution.” Parmar’s tale shows the dilemma facing India’s policy makers […]

India data: Nov oil products demand rose 12% on year to 4.3 Mil b/d

16 Dec 2016   India

India’s demand for oil products in November rose 12% year on year to 16.6 million mt, or 4.35 million b/d, latest provisional data from the Petroleum Planning and Analysis Cell showed. The higher growth in November was the second straight month of positive growth, after a negative growth in September when demand fell 0.8% year on year to hit a two-year low of 14.6 million mt, or 3.82 million b/d. In October, demand for oil products rose 6.6% year on year to 16.5 million mt, as demand for transport fuel rose after the rainy season ended in September. “Half of the November 2016 demand growth was due to higher petrol/diesel sales, which had been elevated as fuel stations continued accepting old high-denomination currencies,” said a Credit Suisse report Wednesday. Article continues below… Platts 4th Annual Asian Refining Summit March 9 to 10, 2017 | Novotel Clarke Quay, Singapore Running […]

India pushes Nigeria for more oil term contract volumes

7 Dec 2016   India

Indian state-run oil refiners have called for Nigeria to increase its total term contract volumes next year by more than 20% as demand from the South Asian country climbs, an official from Nigeria’s state-owned Nigerian National Petroleum Corporation said. This request comes a few weeks before Nigeria’s crude oil term lifting contracts for 2017 are finalized, which will be decided by mid-December. India as the largest buyer of Nigerian crude, has always said it should have a longer-term arrangement with NNPC to ensure security of supply. “Three Indian companies mentioned that they are looking for a combined total of 11 million mt [in 2017] from 9 million mt [this year],” Anibor O. Kragha, group executive director at NNPC, told S&P Global Platts in an interview on the sidelines of the Petrotech conference in New Delhi late Monday. Article continues below… Platts 4th Annual Asian Refining Summit March 9 to […]

Oil Market’s New Engine Losing Steam on Modi Cash Crackdown

5 Dec 2016   India

Oil demand growth in the world’s fastest-growing crude market may weaken as the government’s cash crackdown slows the economy. Diesel and gasoline use, which account for more than half of India’s oil demand, will slow or contract this month and possibly early next year, according to Ivy Global Energy Pte., FGE and Centrum Broking Ltd. Expansion in the world’s fastest-growing major economy is widely expected to ease temporarily after Prime Minister Narendra Modi last month withdrew high-value currency notes in a country where almost all consumer payments are in cash. “As the Indian economy largely depends on various cash-intensive sectors, the demonetization saga will no doubt slow down economic growth in the near term,” said Sri Paravaikkarasu, head of East of Suez oil at FGE in Singapore. “Moving into the first quarter, an expected slowdown in the economic growth should marginally drag down oil consumption, particularly that of transport […]

Iran Pulls Ahead in Race to Supply India With Oil

29 Nov 2016   India, Iraq

Iran is pulling ahead in the race for market share in the world’s fastest-growing oil consuming nation, India, weakening the hold of rival OPEC members amid the group’s struggle to agree on output cuts. Iran, which dramatically boosted crude sales in 2016 after they were curbed for years by sanctions over its nuclear program, is challenging the sway of Saudi Arabia and Iraq as it offers perks for refiners to help rebuild its standing in Asia’s third-largest economy. Cargoes to fill strategic petroleum reserves helped Iran emerge last month as India’s biggest supplier for the first time in 2016, according to data compiled by Bloomberg. Iran’s progress in building market share assumes significance amid a glut that’s more than halved oil prices since 2014. Members of the Organization of Petroleum Exporting Countries meet Wednesday to try to finalize the terms of a production decrease with some countries, including Iran, […]

Bruised Oil Nations Seek Solace in Fastest Growing Guzzler

24 Nov 2016   India

Nigeria, Venezuela are among OPEC’s most hurt by the oil rout Indian oil demand is forecast to double through 2040 As the oil market anxiously awaits OPEC’s decision next week, some of the countries hardest hit by the biggest price crash in a generation may have found a lifeline outside of the group. India, the world’s fastest growing crude consumer whose appetite for fossil fuels is forecast to surge in the next two decades, will likely decide next month on whether to advance $15 billion to Nigeria for future supplies. Essar Oil Ltd., operator of India’s second-biggest refinery, has struck a $13 billion deal which may lead to the plant processing more oil from Venezuela. With prices languishing at under $50 a barrel, about 55 percent below its 2014 peak, smaller sellers have been the most vulnerable to falling revenues. Nigeria has been pushed to the brink of its […]

Two Children, One Rich, One Poor, Gasping for Air in Delhi’s Smog

24 Nov 2016   Air Quality, India

In the dense smog that engulfed India ’s capital early this month, a baby named Vaishnavi gasped through the night. Inside the concrete room that her father and mother rent for $20 a month, they took turns staying up, laying a hand on her rib cage, feeling it move up and down. Her coughing fits became so violent that she vomited, milk mixed with ropes of sputum. Three times they thought she would not survive until morning. Twenty miles away, inside an elegant, high-ceilinged house in an elite neighborhood, a 4-year-old boy named Mehtab was also struggling to fill his lungs with air. His mother, heavily pregnant, sat beside him, administering corticosteroids through a nebulizer mask once an hour. But once an hour wasn’t enough. Mehtab’s father fought waves of panic as they waited for the sun to rise. The boy looked, to him, like a […]

India aims to boost low-grade coal sales while global prices high

21 Nov 2016   Coal, India

India is trying to boost sales of its low-quality coal by offering more of the fuel at home and initiating steps to lower freight costs, while global prices are high, with the government hoping the moves will help cut imports. State-controlled Coal India, the world’s largest miner of the fuel, has sharply boosted output in the past two years but has struggled to sell all of that due to softer domestic demand and the availability of superior-grade foreign coal at competitive rates, until recently. Benchmark Australian coal prices have more than doubled this year, helped by reduced Chinese mining and strong demand across Asia and Europe just when exporters cut output. But prices have begun to recoil this month as China eased restrictions on domestic mining. “Our prices are already very competitive,” India’s Coal Secretary Anil Swarup told Reuters. “If transportation costs can be brought down, more and more […]

Smog lifts, but companies’ view of polluted Delhi skies is dim

11 Nov 2016   India

As New Delhi grappled with its worst smog in 17 years, the head of India’s largest mobile payment firm got on a plane and left, one of thousands of professionals escaping pollution that could cost the capital and the broader economy dear. Vijay Shekhar Sharma, founder of PayTM payment start-up, left last Sunday for a temporary stay in Mumbai, worried about the impact of hazardous clouds of dust, smoke and fumes that hang over Delhi during the winter months. “It became very visibly clear that it is going to be tough in Delhi, especially with young kids,” Sharma said in Mumbai. “We were worried that it could create long-term (health) problems.” His company, which has considered moving from its base outside Delhi, has installed air purifiers, brought in plants and masks and offered extra health assistance. […]

A Lesson for India in a Fog So Thick It Could Kill a Cow

11 Nov 2016   India

In December 1873, London was blanketed for a week in a yellow fog so thick that people could not see their feet. “Ladies & gentlemen,” Mark Twain said in a public lecture at the time, “I hear you, & so know that you are here — & I am here, too, notwithstanding I am not visible.” Some 780 people died and 50 prize cattle on display at the Smithfield Club panted, wheezed and eventually died of asphyxia. Still, it took 83 more years of noxious air before the country passed the Clean Air Act in 1956. This history, described in “ London Fog: The Biography ,” is a lesson in just how difficult it is for governments to put public health first when it comes into conflict with economic development, the political power of industry and even the polluting habits of their people. The government of India is up […]

Smog Chokes Delhi, Leaving Residents ‘Cowering by Our Air Purifiers’

9 Nov 2016   Air Quality, Coal, India

For days, many in Delhi have been living as if under siege, trying to keep the dirty air away from their children and older parents. But it is not easy: Open a window or a door, and the haze enters the room within seconds. Outside, the sky is white, the sun a white circle so pale that you can barely make it out. The smog is acrid, eye-stinging and throat-burning, and so thick that it is being blamed for a 70-vehicle pileup north of the city. If in past years Delhi’s roughly 20 million residents shrugged off wintertime pollution as fog, over the past week they viewed it as a crisis. Schools have been ordered closed for three days — an unprecedented measure, but not a reassuring one because experts say the concentration of pollutants inside Indian homes is typically not much lower than outside. Levels […]

India: New Delhi closes schools in air pollution fight

8 Nov 2016   India

The Indian city of New Delhi has closed schools, halted construction and ordered that all roads be doused with water to settle dust in order to combat crippling air pollution. The capital, which is one of the world’s dirtiest cities, saw levels of PM2.5, tiny particulate matter that can clog lungs, climb to over 900 micrograms per cubic metre on Saturday. This is more than 90 times the level considered safe by the World Health Organisation and 15 times the Indian government’s norms. The severe pollution at the weekend followed a week of constant grey smog. New Delhi’s chief minister, Arvind Kejriwal, said schools would be closed for three days, and all construction and demolition activity stopped for at least five days. He also said a coal-fuelled power plant on the edge of the […]

Delhi smog: Respiratory issues along with cases of asthma and allergies on the rise

7 Nov 2016   India

New Delhi: The smog that has set in post Diwali in the national capital Delhi, has begun to show its dark side, with more cases of people complaining of asthma, allergies, severe breathlessness and other respiratory problems. As the city grapples with the worst smog to hit Delhi in 17 years, doctors and experts say that besides spike in fresh cases, health complications have aggravated in people having a history of asthma, allergy or other related ailments. “Earlier 15-20% pollution-related ailment cases were reported at our hospital. But now these have gone up to 60%. “The most common problem is related to respiration. But this time we are seeing a rather large number of cases of severe breathlessness, coughing and sneezing and bronchiolitis due to the smog,” says Dr SP Byotra, senior consultant and chairman of the department of medicine at Sir Ganga Ram Hospital (SGRH). “Children and elderly […]

India Raises Refinery Output By 9% In September

25 Oct 2016   India

Essar tank truck Monsoon torrents and regional civil disturbances did not affect India’s hunger for fuels last month, with local refineries processing 4.82 million barrels per day, up 9.27 percent on the year, according to preliminary government data cited by Reuters. The increase highlights India’s booming fuel demand as well as efforts from state-owned downstream majors to satisfy it, yet the country still relies on imports for 80 percent of its fuel demand. This puts it at a disadvantage to other huge consumers, as its local crude oil production is disproportionately small, at 712,800 bpd in September, down 4.09 percent on the year. Asia’s fastest-growing economy took a breather in September, as fuel demand declined by 0.8 percent on the year to 3.82 million bpd due to heavy rains and what Platts called “regional unrest,” regarding water-sharing rights in two states in southern India, Karnataka and Tamil Nadu. However, […]

Analysis: India’s oil demand seen rebounding after sluggish September

24 Oct 2016   India

After posting double-digit growth in August, India’s oil products demand in September declined as widespead rains and regional unrest took toll on transport, but analysts expect a rebound in October on the back of firm fundamentals and following the end of the monsoons. The sharp growth in consumption of LPG and jet fuel in September was not enough to offset a drop on demand for diesel and gasoline, pulling down overall oil products demand 0.8% year on year to 14.6 million mt, or 3.82 million b/d, latest provisional data from the Petroleum Planning and Analysis Cell showed. “The conclusion of seasonal rainfalls, the onset of winter, and improving industrial demand amid festive season should propel growth in coming months, notwithstanding any increases in crude prices,” said Sri Paravaikkarasu, senior consultant and Asia downstream specialist at Facts Global Energy. The negative growth recorded in September was a steep decline from […]

Rains, Unrest Slow India Oil Demand First Time in Two Years

19 Oct 2016   India

Diesel use drops 11.4% y-o-y, first decline since July 2015 Monsoon rains, violence in southern states hurt demand: BPCL India’s oil product demand contracted for the first time in almost two years amid strong monsoon rains and unrest in some provinces. Fuel use during September in the world’s fastest growing consumer fell to 14.6 million tons last month, down 2 percent from a year earlier, according to the oil ministry’s Petroleum Planning & Analysis Cell. That’s the first time demand has fallen year-on-year since October 2014. In addition to seasonal rains that damped demand, violent protests in the southern Indian states of Karnataka and Tamil Nadu over sharing river water disrupted fuel supplies, S. Ramesh, director-marketing at India’s second-largest oil retailer Bharat Petroleum Corp., said in a phone interview. Unrest in the northern state of Jammu and Kashmir also affected demand, he said. “This was an unusual month. There […]

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

18 Oct 2016   India, Russia

Rosneft may use Venezuelan crude at Essar’s Vadinar refinery India forecast by IEA as world’s fastest growing oil consumer A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend. Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports. “India will be the most important product-growth market over the next 25 years, making it important to Russia,” according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co. […]

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

17 Oct 2016   India

Rosneft may use Venezuelan crude at Essar’s Vadinar refinery India forecast by IEA as world’s fastest growing oil consumer A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend. Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports. “India will be the most important product-growth market over the next 25 years, making it important to Russia,” according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co. […]

Emerging Climate Accord Could Push A/C Out of Sweltering India’s Reach

13 Oct 2016   India

A thrill goes down Lane 12, C Block, Kamalpur every time another working-class family brings home its first air-conditioner. Switched on for a few hours, usually to cool a room where the whole family sleeps, it transforms life in this suffocating concrete labyrinth where the heat reached 117 degrees in May . “You wake up totally fresh,” exulted Kaushilya Devi, a housewife, whose husband bought a unit in May. “I wouldn’t say we are middle class,” she said. “But we are closer.” But 3,700 miles away, in Kigali, Rwanda, negotiators from more than 170 countries gathered this week to complete an accord that would phase out the use of heat-trapping hydrofluorocarbons, or HFCs, worldwide, and with them the cheapest air-conditioners that are just coming within reach of people like Ms. Devi. Millions of Indians might mark the transition from poverty with the purchase of their first air-conditioner, […]

After Paris, India gets support for solar power

5 Oct 2016   Climate, India, Solar

Asian Development Bank lends India a hand to help advance rooftop solar power programs. Photo by Craig Russell/Shutterstock After depositing its signature to the Paris climate deal, India’s low-carbon objectives received financial support to advance solar energy, a lender said. The Asian Development Bank said it would set aside $500 million in funding to help advance a rooftop solar energy system to help India acclimate to what, for the country’s energy sector, is emerging technology. “There is huge potential for India to expand its use of solar rooftop technologies because of the sharp drop in the price of solar panels, meaning the cost of producing solar energy is at or close to that from fossil fuels,” Anqian Huang, a regional specialist at the ADB’, said in a statement. “Sourcing more solar energy will also help India meet the carbon emissions reduction target that it has committed to as part […]