The Quad (Quadrilateral Security Dialogue) countries issued a joint statement in September 2021 that all member states intend to update or communicate the ambitious Nationally Determined Contributions (NDC) under the Paris Agreement before the 26th Conference of the Parties (COP26) . However, the subsequent statement issued by the relevant minister of the Indian government reiterated the historical responsibility of Western countries to respond to climate change and reiterated the problem of insufficient financial aid from the rich countries, leading most observers to believe that India is unlikely to make any major changes. From its traditional position. The day before the Prime Minister of India (PM) delivered a speech at COP26, news broke that India might associate any new commitments to the decarbonization of the Indian economy with its membership in the Nuclear Suppliers Group (NSG). The argument linking NSG membership with climate action is that nuclear power is a low-carbon alternative energy source that has the potential to replace coal as a base load electricity, and India needs to be a member of the NSG exclusive group to obtain nuclear fuel, capital and technology. But English The news in the Chinese media did not give NSG members any hope. Finally, the Indian Prime Minister’s speech at COP26 surprised observers inside and outside India in the following ambitious ways, and at this point seemed to be an unconditional commitment to India’s decarbonization:
1. Increase the installed capacity of non-fossil energy to 500 GW (Gigawatts) by 2030.
2. Meet 50% of renewable energy (RE) energy demand by 2030.
3. Reduce projected total carbon emissions by 1 billion tons (BT) by 2030.
4. Reduce economic carbon intensity by 45% or less.
5. Achieve net zero carbon by 2070.
Many environmentalists praise these five commitments (“Panchamrit”) because they promise to put India on a firm path to decarbonization. For business entities that bet on huge returns on green investments, these announcements provide a certainty that government policies will protect their returns. The validity of these expectations will only become apparent in the long run, but from a more objective point of view, the immediate priority is the interpretation of somewhat ambiguous promises. The assumption at this time is that these are ambitious, non-binding commitments, and the official statement on the revised Nationally Determined Contributions will clarify some of the issues raised by the commitments.
A special report of the Intergovernmental Panel on Climate Change (IPCC) in 2018 put forward the idea of “net zero”. The report requires countries to reach “net zero” greenhouse gas emissions by 2050 in order to control global warming. Within 1.5°C. Pre-industrial level. Although net zero is the lingua franca of policy makers' intention to reach an agreement on COP26, net zero is also seen as a means to perpetuate the belief in technological salvation in order to reduce the sense of urgency for climate disasters. Since the concept of "net zero" is inherently vague, this is the safest promise a country or company can make.
From a geopolitical point of view, India’s commitment to “net zero” at COP26 is inevitable, but it is puzzling to provide more radical commitments without “exchange terms”. The quick answer may be that it is in India’s interest to protect itself from the effects of climate change by limiting carbon emissions deeply and quickly. But climate change is a global commons issue. Unless all major polluting countries make radical commitments to limit carbon emissions in return, the climate will get worse. Ideally, India’s commitment should be hedged on the condition that other large polluting countries achieve net zero emissions by 2050 and provide India with the necessary funds.
But there is another contradiction that adds to the ambiguity. India did not participate in the non-binding agreement signed by COP26 to phase out coal for rich countries by 2030 and poor countries by 2040. Other major coal users, including China, the United States, and Australia, are also not signatories. Britain, the host country of COP26, hopes to entrust coal to history based on its own history. But Britain switched from coal to natural gas in the 1980s, partly to oppose coal unions and partly to accept cheap new offshore natural gas. A complete shift from coal to natural gas will pose a serious economic challenge for India, because imported natural gas is the most expensive fuel (used for power generation). Imported natural gas will also bring geopolitical and foreign trade-related risks to India's energy security.
Coal is viewed narrowly as the main adjustment variable between India’s “business as usual” and “low-carbon” energy paths. However, through large-scale industrialization to provide high-paying and guaranteed jobs, millions of people are waiting for a better quality of life, which is the main adjustment variable between the two paths. If India’s large-scale industrialization takes off, the quality of life of millions of households will be improved, but it will increase the carbon content of India’s energy basket unless there is a miracle in clean energy technology. India's COP26 commitment is ambitious and ambiguous, and hopes are also ambitious (non-binding). In this case, it can be said that the goal is ambitious and there is nothing wrong with it.
Source: International Energy Agency, 2021, net zero emissions by 2050, IEA, Paris; Note: The chart does not include India’s net zero commitments
Gasoline consumption in India slowed down in the first half of September compared with the previous month and remained below pre-COVID levels as the rebound of monsoon rains hit the liquidity of the agricultural sector and demand for fuel. From September 1st to 15th, the country's state-owned fuel retailer sold 2.1 metric tons of diesel, a decrease of about 1.5% from last year and a decrease of 6.8% from the same period in 2019. State-owned retailers Indian Petroleum Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corp Ltd (BPCL) own approximately 90% of retail fuel stores in the country. Diesel sales account for about two-fifths of India's overall refined fuel consumption, which is directly related to the industrial activities of Asia's third largest economy. In contrast, gasoline sales remained above 1.02 metric tons, as people continue to prefer private vehicles to public transportation and shared travel for safety reasons. India has not yet fully opened its public transportation sector, which mainly uses diesel. Gasoline sales in September increased by 8.3% from the same period in 2019 and 3.4% from August. Due to concerns about a third wave of COVID-19 infections lurking in the country before the upcoming holiday season, India’s aviation turbine fuel demand is expected to remain sluggish in the short term. Industry sources predict that if the number of cases surges, jet fuel prices will be affected by the new movement restrictions. Although domestic travel has picked up in recent months, a potential surge in cases may undermine this recovery. Due to weak aviation fuel demand, refineries restricted the production of aviation fuel, and aviation fuel production fell further in July. Production fell 10.39% month-on-month to 604,000 tons. This is the fourth consecutive decline since March. The last production decline was in October when it was 548,000 tons. However, the August data showed signs of improvement. According to preliminary data from state-owned refineries, aviation fuel sales in August increased by nearly 20% month-on-month. S&P Global Platts Analytics predicts that India's kerosene/jet fuel demand will rebound by 8% in 2021, but demand will still be 40% below 2019 levels.
India's gasoline demand will hit a record high this fiscal year. The stronger-than-expected increase in gasoline consumption may prompt Indian refiners to import fuel or increase diesel exports in the coming months. The traditional configuration of Indian refineries is to maximize diesel output, while demand is still lower than the level before the COVID, affected by the uneven economic recovery. The expected increase in Indian gasoline imports may support the fuel profit margins of Asian refiners. The country has over-refined oil and has avoided importing gasoline since May. Diesel exports in July increased by one-fifth compared with April. As fuel storage is full, weak diesel demand has forced some refineries to reduce crude oil processing. This brought India's crude oil imports in July to the lowest level in a year. According to the International Energy Agency, changes in India’s fuel demand patterns are critical to the global oil market, as Asia’s third-largest economy is seen as the main driving force for energy demand growth in the next two decades.
IOC launched the "Indane Composite Cylinder" of Liquefied Petroleum Gas (LPG), which will allow customers to easily plan their next refilling. The fiber cylinder will have a transparent component for consumers to verify the amount of LPG supplied. When the composite cylinders for domestic use were launched in Patna, the International Olympic Committee said it was a major achievement for the country.
The Karnataka State Congress urges the central government to reduce the price of LPG cylinders by at least 150 Indian rupees, because ordinary people are facing "extreme difficulties caused by rising prices of basic commodities." The Karnataka State Congress Committee is advocating and opposing the BJP’s anti-popular policy through its weekly "Ondu Prashne". Through the "Ondu Prashne" series, the party is now raising the issue of rising LPG prices that affect people from all walks of life. Currently, the cost of a LPG cylinder is about 900 Indian rupees (US$12), which has reached 956 Indian rupees in the Vidar region of the state. The committee expects that the refill volume of cylinders may soon soar to 1,000 Indian rupees ($13.34).
BPCL has created a separate platform for its cooking gas or LPG business, which runs a government-subsidized LPG cylinder program, and the subsidy amount is directly transferred to the consumer's account. As part of the sale process, a separate platform must be created to isolate the new owner from the subsidy program. Even after the privatization of BPCL, the subsidy program can run uninterrupted and the government transfers subsidies to consumers. The government sold its entire 52.97% stake in BPCL to strategic investors. After the management of BPCL is transferred to the new private sector owner, how will potential bidders run the subsidized cooking gas program? If the company accepts the subsidy, it will change the valuation of BPCL. According to PAHAL (Pratyaksha Hastaan Tarit Laabh), the price of liquefied petroleum gas cooked for consumers is subsidized by the government. The subsidy amount provided to PAHAL consumers through DBT is the difference between the market-determined price and the subsidized price.
A bottle of non-subsidized LPG is now 25 Indian rupees expensive. Petroleum companies have recently increased the price of liquefied petroleum gas. In the capital and Mumbai, a 14.2 kg bottle of domestic non-subsidized cooking gas is now priced at 884.5 Indian rupees. This is the third consecutive month that prices have risen. Due to state taxes, the price of LPG cylinders varies from state to state. The price of commercial liquefied petroleum gas has also risen. The price of 19 kilograms of commercial cylinders in Delhi increased by 75 Indian rupees to 1,693 Indian rupees (22.58 US dollars). The number of liquefied petroleum gas users continues to increase. As of July 1, 2021, there are 291.1 million (million) active domestic LPG consumers, including those using Pradhan Mantri Ujjwala Yojana. In 2018-19, the country had 265.4 million customers.
According to the Federal Ministry of Finance, petroleum products will not be included in the Goods and Services Tax (GST). The Ministry announced that the tax rate for goods and services on biodiesel will be reduced from 12% to 5%. Biodiesel will be supplied to petroleum marketing companies to be blended with diesel.
The country’s largest fuel retailer, IOC, announced that it has partnered with Google Pay to provide more incentives to Indian Oil and Google Pay customers. As the partnership progresses, the two companies plan to access XTRAREWARDS, India’s national loyalty program, on the Google Pay app.
Indian refineries are preparing to change their crude oil import mix to use lighter crude oil that produces more gasoline to meet the surge in demand for automotive fuel in Asia's third-largest economy. The world’s third-largest oil importer and consumer country’s refineries will increase imports of crude oil that can produce gasoline from the United States (the United States) and West Africa, while reducing imports of heavier sour crude oil from the Middle East, which will produce more middle distillates. Oils, such as diesel and kerosene. This move is consistent with earlier efforts to promote India to reduce its dependence on Middle East crude oil in order to enhance energy security. Indian refineries aim to maximize diesel production, mainly from Middle Eastern oil, because government-controlled prices make middle distillates the fuel of choice for industrial and trucking companies. However, since the outbreak of the coronavirus, the price gap between gasoline and diesel has been narrowing, and consumers have turned to personal vehicles instead of diesel-powered public transportation, which have helped increase gasoline consumption. Credit rating agency Moody’s India Division ICRA predicts that India’s gasoline consumption will increase by 14% to a record 31.9 million tons (739,000 barrels per day) for the fiscal year ending March 2022, while diesel consumption is expected to be in It will not be able to return to pre-pandemic levels in the fourth quarter or even next year.
With the rebound in fuel demand, India's Nayara Energy hopes to operate its 400,000 barrels per day (bpd) refinery in western India with nearly 100% capacity in 2021. Nayara, part of the Russian oil giant Rosneft, cut prices at the Vadinar refinery in Gujarat last year. With the relief of the second wave of COVID-19, the Indian economy "turns to higher growth", India's fuel demand may increase by 9-11%.
ONGC (Oil and Natural Gas Company) plans to complete the merger of its refining subsidiary MRPL (Mangalore Refining and Petrochemical Co., Ltd.) with the recently acquired HPCL to integrate its upstream and downstream businesses into two verticals. The plan was delayed. The process is now expected to be completed in FY24, because ONGC plans to first integrate its refining and petrochemical businesses around MRPL itself, which will take a lot of time. The proposed merger will only take place after this merger event. The merger process of ONGC's two refining subsidiaries, HPCL and MRPL, will start after the company completes the merger of ONGC Mangalore Petrochemical Ltd (OMPL) and MRPL. According to the plan finalized earlier, MRPL may first become a subsidiary of HPCL. Under loose assumptions, the merger may begin within 1-2 years because OMPL will merge with MRPL at that time. OMPL has now become a 100% subsidiary of MRPL.
ONGC has extracted its first natural gas from its deep-water U1B well in the Krishna Godavari KG-D5 block in the Bay of Bengal. According to the company, this well in Cluster-2 at KG-DWN 98/2 Block has an estimated peak production of 1.2 million standard cubic meters (mmscmd) per day. ONGC's KG-DWN-98/2 or KG-D5 block is located next to Reliance Industries' KG-D6 block in the KG basin, and many discoveries have been integrated into the cluster. The findings in this block are divided into three clusters-clusters 1, 2 and 3. Cluster 2 will be put into production first. The Cluster 2 oil field is divided into two blocks, 2A and 2B, and is expected to produce 23.52 metric tons of oil and 50.7 billion cubic meters (bcm) of natural gas. The company is investing US$5.07 billion (billion) to develop oil and gas discoveries in the block. It will cumulatively produce approximately 25 metric tons of oil and 45 bcm of natural gas, with peak production of 78,000 bpd of oil and 15 mmscmd of natural gas.
India’s August oil imports rose to a four-month high of about 4.2 million barrels per day, rebounding from a nearly one-year low hit in July, as some refiners plan to increase production in anticipation of suppressing demand during the holiday season. Last month's oil imports increased by about 23% compared to July, and increased by about 6.2% compared with the same month last year. Most Indian refineries purchase oil about two months before processing.
The oil market fell after five consecutive days of rising. Investors took profits as investors worried that price increases might weaken fuel demand, although market sentiment remained strong despite tight supply. Brent crude oil futures fell 17 cents, or 0.2%, to $79.36 per barrel, after rising 1.8% and hitting their highest level since October 2018. US (US) West Texas Intermediate (WTI) crude oil futures fell 9 cents, or 0.1%, to US$75.36 per barrel, up 2% the day before and hit the highest level since July. Africa’s major oil exporters, Nigeria and Angola, will work hard to increase production to their OPEC (Organization of Petroleum Exporting Countries) quota levels until at least next year, as insufficient investment and maintenance issues continue to drag down production, sources from their respective oil companies warned.
OPEC member Algeria plans to increase investment in its oil and gas sector by US$2.6 billion next year to increase production by 8.9 million tons of oil equivalent (mtoe). The total oil and gas investment in 2022 will reach 10 billion U.S. dollars, higher than this year's 7.4 billion U.S. dollars. The goal is to increase production from 187 mtoe to 195.9 mtoe. Algeria, which relies heavily on the energy sector, halved its planned investment spending on oil and gas to US$7 billion last year in response to the financial pressure caused by the decline in global crude oil prices due to the epidemic. The Algerian government predicts that energy export revenue this year will increase from US$20 billion in 2020 to US$33 billion this year due to rising oil prices in the international market. The government's action plan includes reforms to improve the investment environment, mainly in the non-energy sector, to help reduce Algeria’s dependence on oil and gas, which account for more than 90% of total export revenue and 60% of the state budget.
Due to the mutation of the Delta Coronavirus, OPEC lowered its forecast of world oil demand for the last quarter of 2021, saying that further recovery will be postponed to next year, when consumption will exceed the level before the pandemic. OPEC stated in a report that oil demand in the fourth quarter of 2021 is expected to average 99.7 million barrels per day, a decrease of 110,000 barrels per day from last month's forecast. Governments, companies and traders are paying close attention to how quickly oil demand recovers from last year's crash. As predicted by OPEC, faster returns may boost prices and challenge the view that the effects of the pandemic may depress consumption for longer or permanently. After the report was released, the oil transaction price was higher than US$73 per barrel. Driven by hopes for economic recovery and OPEC + production cuts, prices have risen by more than 40% this year, despite concerns about the Delta variant. Despite the downward adjustment for the fourth quarter, OPEC stated that global oil demand will increase by 5.96 million barrels per day or 6.6% in 2021, which is basically the same as last month. The growth forecast for 2022 was adjusted to 4.15 million barrels per day, compared with 3.28 million barrels per day in the previous month’s report. OPEC sources estimated at the last meeting on September 1 to be 4.2 million barrels per day. With the latest changes, OPEC remains the agency with the highest demand growth data among the three major oil forecasting agencies—its own, the U.S. government and the International Energy Agency—consumer country consultants who issued the latest reports. The report shows that, driven by Iraq and Saudi Arabia, OPEC's August daily production increased by 150,000 barrels to 26.75 million barrels. Nigeria’s involuntary production cuts have reduced the scale of the increase in supply.
OPEC+ raised its oil demand forecast for 2022 before the meeting of the Petroleum Production Organization because the United States is under pressure to accelerate production to support the global economy. According to OPEC+ sources, the organization’s experts have raised the forecast of oil demand growth in 2022 from the previous 3.28 million barrels per day to 4.2 million barrels per day. OPEC+ expects that after a record decline of approximately 9 million barrels per day due to the COVID-19 pandemic in 2020, global oil demand will increase by 5.95 million barrels per day in 2021.
Although the supply in the U.S. Gulf of Mexico increased after the two hurricanes, oil prices have hardly changed, and the benchmark contract is expected to achieve a weekly increase of about 4%, because the recovery of production lags behind demand. Preliminary data from the US Energy Information Administration show that US crude oil exports in September have fallen from 3 million barrels per day at the end of August to 2.34 million barrels per day to 2.62 million barrels per day.
Goldman Sachs said that the impact of Hurricane Ida on oil production was greater than the impact on refinery demand, and it had a net "bullish" impact on the U.S. and global storage levels. The investment bank described the blow to U.S. production as the "largest in history" and expected to lose nearly 40 million barrels of crude oil production. The challenge of restarting the Martian stream may not be until mid-October. U.S. refineries are recovering faster than oil production. This is contrary to the recovery from past storms. Only three of the nine refineries were completely idle, accounting for about 7% of the Gulf Coast refineries, while oil production was shut down by two-thirds. . The impact on oil refining is roughly the same as that of previous hurricanes. Approximately 1.5 million barrels of oil per day are still offline, and the recovery may "follow the usual exponential pattern, with interruptions halving every 10 days." Concerns about the suspension of production caused by Ada pushed oil prices above US$70 per barrel, Brent crude oil was trading at US$73.39, and WTI crude oil in the United States was trading at US$70.19. Goldman Sachs estimates that the impact of the hurricane on peak demand is only about 450,000 barrels per day, mainly due to the disruption of petrochemical plants in the lower Gulf of Mexico, which account for a large part of petrochemical production capacity.
Despite the severe sanctions imposed by the United States, exports of Iranian fuel and petrochemical products have boomed in recent years. If Washington lifts the restrictions, Iran can quickly expand its sales in Asia and Europe. The United States imposed sanctions on Iran’s oil and gas industry in 2018 to stifle Iran’s main source of income in a dispute with Tehran over its nuclear work. These measures have weakened crude oil exports, but have not affected the sales of more difficult-to-track fuels and petrochemicals. Crude oil can be identified as Iran by its grade and other characteristics, while large tankers are easier to track by satellite. According to data from the Iranian Ministry of Petroleum and the Central Bank, the value of petrochemical and petroleum products exported by Iran in 2020 is nearly 20 billion U.S. dollars, twice the value of its crude oil exports.
The lack of diluents for the production of Venezuelan flagship crude oil has affected oil exports last month, forcing the state-run PDVSA to announce the "highest warning" at its main terminal. Due to PDVSA's shift to refining more light and medium crude oils into automobile fuels, the shortage of these mixed raw materials also led to a decrease in oil production in Venezuela's main producing areas last month. Historically, these grades have been used to dilute its richer extra-heavy crude oil. More than three-quarters of Venezuela's oil shipments are destined for Asian destinations, mainly China and Malaysia. Political ally Cuba receives approximately 40,000 barrels of crude oil and residual fuel for power generation, and PDVSA's fuel oil exports to destinations such as Turkey, China, Malaysia and the United Arab Emirates have also fallen from last month’s peak of 274,000 barrels per day to 128,000 barrels per day. /day. But the company managed to increase petcoke exports to Cuba and Europe.
According to the oil giant Sinopec, China's oil consumption may peak around 2026, reaching 800 metric tons, or about 16 million barrels per day. It also believes that natural gas will become China's largest fossil fuel resource around 2050. China said it will announce the details of its strategic reserve crude oil sales plan in due course. The State Bureau of Grain and Strategic Reserves issued a four-sentence statement announcing that the country will sell its national crude oil reserves through a public auction for the first time. The Chinese government may choose key factories with direct pipeline connections as the reserve base for this type of auction, but there are still questions about how to price the sales. China pays close attention to information about its emergency stocks and has been temporarily selling some reserves to state-owned refineries for years at prices consistent with current market prices.
China’s demand for spot crude oil appears to be recovering due to a shortage of import quotas, a reduction in high inventories, and the COVID-19 blockade that has led to a decline in China’s fuel consumption. Purchasing has slowed in the past five months. Weak purchases by the world's largest crude oil importer since April and China's refining output fell to a 14-month low in July, which has pushed the prices of major crude oil grades in West Africa and Brazil to multi-month lows. But with the relaxation of blockade restrictions, Chinese importers are now speeding up their purchases and paying higher premiums to ensure supply from November. The continued rebound in Chinese demand may tighten supply and support global oil prices. Oil demand in the world's second-largest consumer seems to be recovering, because since the country's emergence in July, Beijing has largely contained several outbreaks of the COVID-19 Delta variant and eased its lockdown measures. Traders hope that Beijing will end the investigation of importers' resale of import quotas and tax evasion as soon as possible, which has brought uncertainty to the market. The fourth batch of quotas is also expected to be released in September or October, which may revive demand from independent refineries, also known as teapots, which account for one-fifth of China's imports.
Pakistan has increased its oil and natural gas imports this year from last year, because with the lifting of restrictions caused by the coronavirus, demand in the power sector has increased and economic activity has increased. So far, from 2021 to September, this South Asian country has imported at least 785,000 tons of fuel oil through bidding, an increase of 52% over last year's annual imports. According to Pakistan’s Ministry of Petroleum, in the fiscal year ending in June, its total imports of petroleum and refined fuels increased by 24% to approximately 10 metric tons.
As fuel prices are rising in Kabul, Afghanistan, locals urge the Taliban-led government to step in to prevent companies and fuel importers from overcharging. The price of gasoline has increased by 15 Afs ($0.17) per kilogram, and the price of gasoline has increased by 4 Afs. The shopkeeper in Kabul claimed that the fuel import company increased the price of fuel, which caused the price of fuel to rise. Local residents have asked the Taliban-led government to prevent excessive fuel charges by stopping the blackmail of fuel import companies.
Oil company BP temporarily closed some of its gasoline forecourts in the UK because its ability to transport fuel from refineries has been hit by the industry’s widespread shortage of truck drivers. BP, which has approximately 1,200 branded gas stations in the UK, is taking action to solve this problem. The Petrol Retailers Association (PRA), which represents independent front yards of 65% of UK gas stations, said these problems appeared to be limited to London and south-east England and appeared to be temporary.
Sudan hopes to reach a long-term agreement with Saudi Aramco to supply petroleum derivatives at preferential prices, and some products from Saudi national oil producers have begun to ship. The energy experts of the two countries signed a general energy memorandum of understanding, and the targeted agreement reached with Saudi Aramco aims to ensure a "stable and sustainable" supply of petroleum derivatives for Sudan. The crisis has caused severe shortages of fuel and other basic commodities, although fuel shortages have recently eased. The Sudanese government reached an agreement with tribal protesters to allow the resumption of exports of crude oil from the interior of South Sudan through a terminal in the Red Sea. The Sudanese Ministry of Energy and Petroleum warned that if the blockade continues, the oil depot at the port will be full within 10 days. This will in turn force South Sudan's oil fields to suspend production. The protesters also forcibly closed a pipeline that carried imported crude oil to the capital Khartoum.
October 1: Government data show that despite the recovery of factory activities, the growth rate of fuel and electricity consumption in India has slowed down compared with August. Preliminary government data show that diesel sales at state-owned retailers increased by 0.79% in September, and diesel accounts for about two-fifths of India's refined fuel demand. Compared with last year, diesel sales in August increased by 16%. Data from the Federal Power Grid Regulatory Agency POSOCO shows that electricity consumption increased by 0.8% in September, after an increase of 17.1% in August. A private survey showed that factory activity in India improved last month as the economy recovered from the recession caused by the pandemic, boosting demand and output. It is not clear why the growth rate of energy demand has slowed. Gasoline sales increased by 6.57% in September, compared with a 13.6% increase in August. Indian Petroleum Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) own approximately 90% of the country's fuel retail stores.
October 1: The city-based Mangalore Refinery and Petrochemicals Limited (MRPL) signed a diesel door-to-door delivery (DDD) agreement with the start-up company PEP Fuels promoted by ONGC. PEP Fuels is a start-up company registered with the Department of Industry and Internal Trade Promotion (DPIIT) of the Ministry of Commerce and Industry. According to the agreement, PEP Fuels will purchase HSD from MRPL and deliver it to customers' doorsteps through mobile tankers, thereby simplifying product procurement and reducing customers' inventory holding costs. The pep Fuel online platform enables customers to place and process orders via mobile/web, minimizing manual intervention. Based on the success of this model, MRPL intends to expand DDD services to other cities and towns in the short term.
September 29: Although the Narendra Modi government is focused on a faster transition to clean energy, India will continue to rely on oil for 25 years. By 2045, demand will increase by one. Times more than that, reaching 11 million barrels per day, making fuel consumers vulnerable to impact. The crude oil market is volatile. According to OPEC (Organization of Petroleum Exporting Countries) "World Oil Outlook 2021", in the context of expanding population, increasing prosperity and rapid urbanization, by 2045, the contribution of diesel and gasoline to the country's oil demand will increase from 51% To 58% between 2020 and 2045. The latest long-term market outlook from the Petroleum Exporting Countries Group accounts for about 40% of global oil supply. It is estimated that oil will account for 28.6% of India’s main energy structure in 2045, marking an increase of more than 3 percentage points in growth compared to 2020. This is due to the expected increase of 200 million passenger vehicles and the tepid adoption of electric vehicles. Faced with stagnant oil and natural gas production, rising oil demand will also push up India’s dependence on imports. This will push up fuel prices when oil prices skyrocket and directly affect consumers. For example, gasoline and diesel prices have begun to climb in recent weeks, as crude oil has reached US$80 per barrel in a turbulent market.
September 29: The Chief Minister of Rajasthan (CM) Ashok Gehlot asked the center to reduce various types of fuel taxes to reduce the burden of price increases. Gehlot said the center imposes various types of excise taxes on gasoline and diesel, and the states hardly get a share of these taxes. CM said after breaking up that if the price of a liter of diesel in Rajasthan is 98.80 Indian rupees, then the center will deduct 31.80 Indian rupees from it, leaving only 21.78 Indian rupees in value-added tax. Gehlot said that given the poor financial situation of the states after COVID-19, the center should reduce the burden on ordinary people by reducing additional consumption taxes, special consumption taxes, and agricultural taxes.
October 5: Fitch Ratings stated that the Indian government's 62% increase in natural gas prices will increase the profitability of upstream companies in the country and support their investment spending. In October 2021, the price of natural gas for oil fields allocated by the state to oil companies (mainly Oil and Gas Corporation (ONGC) and Oil of India Limited (OIL)) rose to US$ 2.90 per million metric British thermal units (mmBtu)-2022 In March 2008, starting at $1.79 per millimeter of British thermal unit for the first six months. Domestically produced natural gas is preferentially supplied to certain industries, of which 30% is consumed by electricity producers, about 27% is consumed by the fertilizer industry, and 19% is consumed by city gas distributors. Fitch said that rising natural gas prices will hit the profitability of the fertilizer industry by increasing working capital requirements. The government also raised the price ceiling for natural gas produced in deepwater and other difficult oil fields from US$3.62 per mmBtu to US$6.13 per mmBtu.
October 4: Torrent Gas Ltd stated that it has begun supplying natural gas to households and industries in the town of Gorakhpur in Uttar Pradesh (UP). The company said that Yogi Adityanath, the state's chief minister, unveiled the first phase of the city gas distribution (CGD) network in Gorakhpur. Torrent Gas is a CGD utility company under the diversified Torrent Group. The group revenue is 211 billion Indian rupees. It has been authorized by the Oil and Gas Regulatory Commission (PNGRB) to establish and operate a CGD network and provide compressed natural gas (CNG) and The 15 districts of PNG UP, including Gorakhpur. With this investment, Torrent intends to connect more than 825,000 homes in UP with the PNG supply, and establish more than 225 CNG stations in UP in the next few years.
October 1: After the 62% increase in natural gas prices, the price of CNG (compressed natural gas) in the capital rose by INR 2.28 per kilogram, and the price of pipeline gas supplied to households by INR 2.10. The price adjustment will result in an increase of 2.28 Indian rupees per kilogram in the consumer price of CNG in Delhi, and 2.55 Indian rupees per kilogram in consumer prices in Noida, Greater Noida and Ghaziabad. The new consumer price in Delhi is 47.48 Indian rupees per kilogram, and the new consumer price in Noida, Greater Noida and Ghaziabad is 53.45 Indian rupees per kilogram. It will take effect from 6 a.m. on October 2, 2021 . Gurugram is 55.81 Indian rupees per kilogram; in Rewari INR56.50; Karnal and Kaithal INR54.70; Muzaffarnagar, Meerut and Shamli INR60.71; Kanpur, Fatehpur and Hamlipur INR63.97; in Ajmer , Starting at 6 am on October 2nd, the price is 62.41 Indian rupees per kilogram. The consumer price of PNG (pipeline natural gas) supplied to Delhi households increased by 2.10 Indian rupees per cubic meter to 33.01 Indian rupees per square meter. The applicable price of domestic PNG for families in Noida, Greater Noida and Ghaziabad is 32.86 Indian rupees per scm (standard cubic meter).
October 1: Indian utilities are scrambling to secure coal supply as inventories hit critical lows after a surge in industrial power demand and weak imports (due to record global prices pushing power plants to the edge). According to government data, more than half of the 135 coal-fired power plants in India have fuel stocks of less than three days. As the demand for electricity rebounds with industrial growth and the supply of coal and liquefied natural gas tightens, the price of global power generation fuel is soaring. India is competing with buyers such as China, the world's largest coal consumer, and China is under pressure to increase imports amid severe power crunch. Rising oil, natural gas, coal and electricity prices are intensifying global inflationary pressures and slowing the economic recovery following the COVID-19 pandemic. India’s average weekly coal imports from August to late September-when global coal prices rose by more than 40% to a record high-were down by more than 30% from the average for the first seven months of this year. Indonesia’s September coal price benchmark was seven times higher than the similar quality fuel sold by Coal India Ltd (CIL) to Indian utilities. According to CIL, rising global coal prices and freight rates have prompted utility companies that rely on imported coal to cut power production, leading to greater reliance on domestic coal-fired power plants. Although India has the fourth largest coal reserves, it is still the world's second largest coal importer. Utilities account for about three-quarters of its total consumption, and CIL accounts for more than 80% of the country's production.
October 4: The Ministry of Coal is planning to propose a plan to allow coal block distributors to surrender coal mines that cannot be developed due to technical reasons. The proposed plan will allow the coal lump to be surrendered without imposing financial penalties or merit-based penalties after the review committee reviews the proposal. The coal lump handed over under this plan will be auctioned immediately for commercial mining in order to be produced in advance. This move will help increase coal production from coal mines allocated through auctions. The Ministry of Coal stated that in order to meet the country's growing demand for coal, it is developing a plan to allow distributors to sell up to 50% of the produced fuel after meeting their own needs. The incentives for distributors will stimulate them to produce more coal and sell it on the market. In the last fiscal year, India’s total coal production fell slightly by 2.02% to 71.084 million tons. According to temporary statistics from the Ministry of Coal for 2020-21, the country produced 730.874 tons of coal in FY20. Of the total coal production, 671.297 metric tons are non-coking coal, and the remaining 44.787 metric tons are coking coal. The public sector produced 685.951 metric tons, while the remaining 30.133 metric tons were produced by the private sector.
October 2: CIL (Coal of India Limited) coal production rose slightly to 40.7 million tons in September. This development is of great significance after the national power plants have struggled to cope with coal shortages. In September 2020, CIL production was 40.5 metric tons. CIL's production from April to September 2021 increased by 5.8% to 249.8 metric tons, compared with 236 metric tons in the same period last year. The company's offtake last month also increased to 48.3 metric tons, exceeding the 46.7 metric tons in the corresponding month of the previous fiscal year. Its offtake volume from April to September 2021 also increased from 255.1 metric tons in the same period last year to 307.7 metric tons. Indian coal accounts for more than 80% of domestic coal production, and its goal is to produce 1 billion tons by 2023-24.
October 4: According to data from Ind-Ra (Indian Ratings and Research Corporation), due to the continuous increase in imported coal prices, short-term electricity prices may remain high in the short term. It pointed out that although coal production has not increased to the expected level, most of the increased power generation will continue to be met by coal-fired power plants. Ind-Ra said that this is reflected in the low inventory of power plants, so part of the increased energy demand will have to be met by imported coal. It said that in view of the expected high imported coal prices, India's short-term electricity prices may remain high.
October 2: According to the notice, the Jharkhand government has granted retrospective power tax exemption for five years to industrial units with self-provided power plants starting in 2016. Looking back at new or existing industrial units, 100% of the electricity tax has been exempted. It stated that the notice should be regarded as effective from April 1, 2016, and valid until March 31, 2021.
October 5th: India is committed to reducing carbon emissions from Antarctica and fully protecting its environment, designating it as a nature reserve dedicated to peace and science, said Union Minister Jitendra Singh (Jitendra Singh) . Singh said that India under the leadership of Indian Prime Minister Narendra Modi (Narendra Modi) is committed to reducing carbon emissions from Antarctica. He said that India has adopted the green energy initiative by testing the feasibility of wind energy production and installing wind energy generators with moderate output on the basis of the test. He pointed out that India looks forward to contributing to the continuous development of the Environmental Protection Committee’s climate change response work plan. He said that the absorption of carbon dioxide in the polar ocean caused by climate causes acidification, destroys the marine environment and ecosystems, and gradually affects fisheries and promotes catastrophic biological communities. Transformation is one of the challenges for the next 30 years. He said that India is committed to comprehensively protecting the Antarctic environment and its affiliated and related ecosystems, and designated Antarctica as a nature reserve dedicated to peace and science.
October 3: Federal Environment Minister Bhupender Yadav said that the center has received constructive cooperation from the governments of Punjab, Haryana, Delhi and Uttar Pradesh on the issue of straw burning. Yadav held an important meeting with the governments of Delhi and its neighbors Haryana, Punjab, Uttar Pradesh and Rajasthan to discuss an action plan to reduce air pollution caused by straw burning. Yadav, who also serves as the Minister of Forests and Climate Change and Labor and Employment, said when talking about the pollution caused by burning straw, the center has received constructive cooperation from these northern states. He said that last month there were discussions on states’ implementation of action plans to reduce pollution caused by agricultural straw burning, dust, construction and demolition waste, and vehicle pollution.
October 3rd: Chhattisgarh Chief Minister (CM) Bhupesh Baghel launched a power generation project that uses cow dung as fuel in farmers’ celebrations of Gandhi Jayanti. He said it will be environmentally friendly and will also benefit women's self-help groups engaged in manure procurement and the Takamori Committee. On this occasion, CM introduced such cow dung power plants at Sikola gauthan in Durg, Bancharoda gauthan in Raipur and Rakhi gauthan in Bemetara.
October 2: Chief Minister (CM) Hemant Soren of Jharkhand State called on ordinary people to generate electricity in their backyards and promised to provide subsidies for the newly planned factories. He promised that the excess electricity will be purchased by the state government, which will also help people create additional income. Construction of 82 projects valued at INR 2.75 billion was started, and foundations were laid for 18 projects worth INR 917.9 million. Among the completed projects, Itkhori's grid substation and the 108-kilometer-long Chatra-Latehar transmission line will provide uninterrupted power supply to most of the Chatra district. He claimed that his government is promoting solar power generation and urged people to build plants on barren land and roofs. CM said his government is formulating special plans for the development of underdeveloped areas such as Chatra, Garhwa and Latehar.
September 30: Adani Renewable Energy (MH) Co., Ltd. (AREMHL), a wholly-owned subsidiary of Adani Green Energy Co., Ltd. (AGEL), will acquire a 40-megawatt solar project in Odisha. The company stated that AREMHL has signed a definitive agreement with Essel Green Energy Pvt Ltd to obtain 100% of the economic value of the special purpose vehicle (SPV) that owns the Odisha solar project. The company stated that the project has signed a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) at 4.235 Indian rupees per unit and the remaining PPA lifespan is approximately 22 years. Through this acquisition, AGEL's total installed capacity of renewable energy will reach 19.8 GW. The total investment portfolio includes 5.4 GW of operating assets, 5.7 GW of assets under construction and 8.7 GW of assets under construction.
September 30: The transition to clean energy is critical for Indian cities, including Mumbai, to reduce air pollution, improve residents’ health, and achieve climate goals consistent with the Paris Agreement. The state stated that it will achieve its goal of meeting 25% of its electricity demand through renewable energy by 2025. The air pollution (annual PM2.5 concentration) in Mumbai is more than three times the WHO guidelines. In India, business leaders estimate that employees’ productivity will drop by 8-10% on days of severe pollution. Mumbai is drafting its climate action plan, which is expected to be ready later this year. An analysis of the greenhouse gas (GHG) inventory based on the plan shows that the energy sector contributes to Mumbai’s greenhouse gas emissions in view of the city’s high domestic emissions maximum. Electricity demand and the fact that 95% of Mumbai's electricity comes from coal.
September 29: The Minister of Electricity RK Singh has approved the establishment of a "dispute avoidance mechanism" for the construction contract of the Central Public Sector Enterprise (CPSE) that implements the hydropower project, the Ministry of Electricity said. The dispute avoidance mechanism requires the appointment of independent engineers with knowledge of specific project subject areas to regularly monitor the project and openly communicate with all key stakeholders who can play an effective role in avoiding disputes, the ministry said in a press release. Hydropower CPSE has been worried that the current dispute resolution mechanism in the hydropower industry does not provide an adequate framework to resolve conflicts between owners and contractors, but only after disputes occur and notified between the two parties. Party.
October 4: OPEC (Organization of the Petroleum Exporting Countries) and its main allies will meet to decide whether to increase oil production in order to calm overheated global energy prices. Since the meeting of the oil exporting cartel and its allies (collectively referred to as OPEC+) on September 1, the market structure has hardly changed, and demand continues to put pressure on global crude oil supply. Oil prices jumped to above US$80 for the first time in nearly three years, which has brought a boost and a dilemma for clubs led by Saudi Arabia and Russia. OPEC has been insisting on reaching an agreement in July to increase production by 400,000 barrels per day, but it is still possible to further open the tap. The administration of U.S. (U.S.) President Joe Biden (Joe Biden) urged this approach in August, when National Security Adviser Jake Sullivan stated that the cartel was “not doing enough” to increase oil production. .
October 1: PetroChina will spend billions of dollars to accelerate the drilling of rare shale formations in Northeast China, which is critical to maintaining oil production in the world's largest consumer. Company officials and analysts said the state-owned oil and gas producer's goal is to start production of its unconventional oil projects in 2025 and double its production capacity by the end of the decade. If the pilot is successful, these technologies can be replicated elsewhere to unleash China's huge untapped shale reserves. Gulong is located in the vast Songliao Basin, within the area of PetroChina’s flagship Daqing Oilfield. Daqing Oilfield is China’s largest oilfield. The oilfield has been exploited for more than 60 years, but its output is declining. The oil giant’s plan will maintain Daqing’s position as the largest oil producing field and help curb the decline in China’s oil production. China only produces 35,000 barrels/day of shale oil in the northern Ordos Basin and the northwestern Junggar Basin, which is less than 1% of the total output. But Gulong is touted as a more forward-looking project with lower cost, higher output and better output. Analysts said that Gulong's success may be the key to maintaining China's oil production at 4 million barrels per day, accounting for nearly 30% of its consumption, which is the minimum supply for power manufacturing activities and military services.
October 1: Asian liquefied natural gas (LNG) spot prices rose to a record high amid strong demand for ultra-cold fuel and insufficient supply. Low inventories and strong natural gas demand have jointly pushed up prices in Europe, and the colder-than-expected winter in North Asia is driving prices soaring. Price agency S&P Global Platts said its Japan-Korea-Marker (JKM), which is widely used as a benchmark for spot LNG contracts, rose to $34.47 per million metric British thermal units (mmBtu). In Europe, due to the economic recovery after the blockade, natural gas reserves are still below the historical average, LNG imports are restricted, and natural gas demand is strong. Due to supply concerns, cold weather forecasts and short covering before the official start of the winter natural gas season, natural gas prices at the European benchmark Dutch TTF center rose to new highs.
October 1: The Zimbabwe Coal Producers Association stated that due to the limited intake of its largest coal-fired power plant, the plant often fails and therefore allows the export of 200,000 tons of excess thermal coal. The six coal mining companies in this southern African country have a long-term arrangement to supply 300,000 tons of coal to the Hwange Power Station every month, but the continuous failure of aging equipment means that the plant is reducing coal consumption. The association said that coal will be exported to other countries in southern Africa, but if port facilities are available, producers can look beyond the region. Zimbabwe usually does not allow the export of thermal coal to ensure sufficient domestic supply.
September 30: China is paying a high price for its policy of restricting domestic coal production and imports, resulting in a fuel shortage, which is still mainly powering the world's second largest economy. The good news for Beijing is that although the scarcity of coal will cause problems for energy-intensive industries such as steel and aluminum, this situation is likely to be resolved sooner. Looking at the domestic coal situation first, it is obvious that supply will become a problem in 2021. Australia used to be China's second largest coal supplier. About 60% of coal shipments are thermal coal, which is used in power generation and other industries. For example, cement and about 40% of coking coal are used for steelmaking.
September 30: The Norwegian state-owned coal company said that it will close its last coal mine in the Arctic Svalbard in 2023, which will result in the loss of 80 jobs and end 120 years of mining. Although Store Norske Spitsbergen Kullkompani (SNSK) has closed its main mine on the island in the past 20 years, it still keeps the smaller No. 7 mine open, mainly to ensure the supply of electricity to a local coal-fired power plant and some Export. Russia operates a coal mine in its Barentsburg settlement to power a local power plant.
October 5th: European Commission President Ursula von der Lein stated that the leaders of the European Union (EU) will discuss the idea of establishing an EU strategic natural gas reserve and decoupling electricity prices from natural gas prices later in October. She said that the surge in electricity prices for European consumers is mainly due to the rebound in global demand, but the price of natural gas has risen sharply, but major European natural gas suppliers such as Russia have not increased their supply. She said that the EU must invest in renewable energy because it will make it independent of imports and stabilize prices. But a more direct step will be the subject of the next EU summit on October 21-22.
October 4: Greenpeace and other environmental organizations call for a European ban on advertising and sponsorship by oil and gas companies, comparing them with harmful tobacco promotion. These groups stated that they will initiate a protest and collect one million signatures from citizens of the European Union (EU) in order to submit a law banning fossil fuel advertising to the European Commission.
October 1: Environmentalists chain themselves to a huge excavator to stop the expansion of a large open-pit coal mine in western Germany. More than 20 climate activists climbed onto the excavators in the Garzweiler brown coal mine. Police said that eight people have been removed since then. Garzweiler, operated by the utility giant RWE, has become the focus of protests by people who want Germany to stop mining and burning coal as soon as possible. Activists and local residents said that expanding the mine runs counter to Germany’s goal of reducing greenhouse gas emissions to achieve the Paris Climate Agreement’s goal of limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit).
September 30: The Australian government pledged to provide 250 million Australian dollars (180 million US dollars) in grants to support the development of carbon capture, use and storage (CCUS) projects as part of a broader technology push to help reduce carbon emissions. The grant will be used to support the design and construction of carbon capture centers and shared infrastructure, to support the research and commercialization of carbon capture technologies, and to determine feasible carbon storage locations. The spending details announced in the government budget for the first time in May come at a time when Canberra is facing international pressure to require, like most major countries, to achieve net zero carbon emissions by 2050, and to deepen the commitment to reduce emissions by 2030 before the United Nations Climate Summit. Months. Australia, which relies heavily on coal and natural gas exports, has targeted carbon capture and storage (CCS) and hydrogen development to help reduce emissions while still allowing the use of natural gas and coal.
September 29: Six investors, including Fidelity International, have assets under management totaling US$4 trillion. They stated that their goal is to strengthen contacts with major Asian companies such as banks and energy producers to ensure that they develop Roadmap goals for tackling climate change. The initial participation will focus on the carbon risk and coal of banks and coal-related power companies. This group of investors is promoted by the Singapore consultant Asian Research and Participation (ARE), said. Investor groups will encourage banks and other companies to take specific actions, such as withdrawing from financing for the most carbon-intensive fossil fuels, and stopping financing for fossil fuel expansion and related infrastructure. Measures also include encouraging Asian power companies to develop plans to make their operations in line with the goals of the Paris Agreement.
This is a weekly publication of the Observer Research Foundation (ORF). It covers current national and international energy information systematically classified to add value. 2021 is the eighteenth consecutive publication of the newsletter. The newsletter has been registered in the Indian Newspaper Registry under the number DELENG/2004/13485.
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