Page 154 - CW E-Magazine (30-4-2024)

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TRADE TRENDS FUTURE PLANS
India’s crude oil import bill drops 16%, but import GAIL mulls doubling Dabhol LNG terminal capacity

dependency hits new high GAIL India Ltd. is planning to more GAIL is also drawing up plans for Underutilisation

than double the capacity of its LNG new LNG import terminals, but those The government’s goal of increas-
India’s crude oil import dropped Net oil and gas import bill (crude oil plus terminal at Dabhol, Maharashtra, and are in the preliminary stages, Mr. Gupta ing the use of natural gas in the eco-
16% in the fi scal year ended March 31 petroleum product plus LNG import bill build new terminals in the country to revealed. nomy has spurred the growth of multi-
due to lower global prices, but the minus exports) stood at $121.6-bn in tap opportunities expected to emerge ple LNG terminals in recent years.
dependency on overseas suppliers rose 2023-24, down from $144.2-bn. Petro- from the future growth in gas imports. “Around half the current gas con- Gas consumption or imports, how-
to a new high, as per data compiled by leum imports as percentage of India’s sumption is met by imports and the ever, haven’t increased at the same
the oil ministry’s Petroleum Planning gross imports (in value terms) stood at The nation’s largest natural gas share is unlikely to come down by pace, resulting in a deep underutilisa-
and Analysis Cell (PPAC). 25.1%, down from 28.2% in 2022-23. marketer and transporter plans to raise 2030. If more gas has to be imported, tion of terminals. Mr. Gupta said the
Similarly, petroleum exports as a per- the capacity of its Dabhol terminal more terminals will be needed,” he said. underutilisation would be addressed
India imported 232.5-mt of crude oil centage of the country’s gross exports to 12-mtpa in a phased manner by over time by rising domestic demand
in FY2023-24, almost the same as in came at 12% in 2023-24, as compared 2030-31, informed GAIL’s Chairman, The country has about 48-mtpa and imports. Of the seven LNG ter-
the previous fi nancial year. But it paid to 14% in the previous year. Mr. Sandeep Kumar Gupta. of LNG import capacity and another minals in the country, four operate
$132.4-bn for the imports in FY24 as ted 62.2-mt of products for $47.4-bn. 20-mtpa is said to be in the pipelines. below 25% capacity and another
against $157.5-bn import bill in 2022-23. Other than oil, India also imports gas in India’s fuel consumption rose 4.6% The Dabhol terminal has a name- “But if the gas goals are to be met, these two below 40%. Just one terminal at
Import dependence of crude oil soared its liquid form, called LNG. to a record 233.3-mt in the year ended plate capacity of 5-mtpa but operates at terminals will not be suffi cient, and Dahej, India’s oldest and largest,
to 87.7% in 2023-24, up from 87.4%, March 31, 2023. This compared with about 2.9-mtpa as it remains idle during we will need to add more,” Mr. Gupta operates above 95%.
according to PPAC. Domestic crude oil After the price shock of 2022-23, 223-mt consumption in 2022-23 and the monsoon. The company is building said, referring to the national goal of
production was almost unchanged at import of 30.91-bcm (billion cubic metres) 201.7-mt in 2021-22. While the country a breakwater infrastructure, which will increasing the share of natural gas in the GAIL also has a 12.5% stake in
29.4-mt in 2023-24. of gas cost $13.3-bn in the fi scal year is short in crude oil production, it has help the terminal operate also during primary energy mix to 15% by 2030 Petronet LNG Ltd., which operates the
ended March 31, 2024. This compared surplus refi ning capacity which enables this time. from around 6.5% now. Dahej terminal.
Gas imports with $17.1-bn spent on import of export of petroleum products like diesel.
Besides crude oil, India spent 26.3-bcm of gas in 2022-23 when energy Against the consumption of 233.3-mt, CRUDE PROCUREMENT
$23.4-bn on import of 48.1-mt of petro- prices shot up to record levels in the petroleum product production was
leum products like LPG. It also expor- aftermath of Russia’s invasion of Ukraine. 276.1-mt in 2023-24, PPAC data showed. HPCL to set up a global oil trading desk

ONGC awards PMC contract to Nauvata, PERC Corporation Ltd. (HPCL) is reportedly company planning to set up an inter- Delhi. IOC, BPCL, and HPCL source
HPCL is the second oil marketing Corporation (IOC) has a trading desk in
State-run Hindustan Petroleum
Engineering planning to set up an international oil national trading unit. Bharat Petroleum 70% of crude oil on term contracts
trading desk. The company is currently Corp. Ltd. (BPCL) is also evaluating and the rest on a spot basis. This helps
Oil and gas exploration and pro- ONGC producing its fi rst oil from its to 100 resources deployed for the pro- in the process of fi nalising the location. setting up a similar facility in Singapore, companies diversify their crude supply
duction (E&P) major, ONGC, has KG-DWN-98/2 development project ject, managing the interfaces on a very Dubai or Gift City in Gujarat. Indian Oil basket and address market volatility.
awarded a Front End Engineering where Nauvata, along with its con- elaborate and complex contracting A trading desk helps companies
Design (FEED) and project management sortium partner, were the project man- quilt, which comprised of multiple inter- procure crude oil from the international BPCL to link Noida airport with
consultancy (PMC) contract to a con- agement consultants for SURF (sub- national and local contractors,” NET market on a real-time basis, helping
sortium of Nauvata Energy Transition sea umbilicals, risers, and fl owlines), Enterprises Group CEO, Mr. Baroruchi cut import prices by locking in the best jet fuel pipeline
Enterprise and PERC Engineering of SPS (subsea production systems), Mishra said. The company intends to price and quality.
the US. FPSO (fl oating production storage maintain the same momentum on this Bharat Petroleum Corporation Ltd. bon emissions by eliminating the need
and offl oading) and onshore scopes newly awarded contract, he added. The trading desk may help HPCL (BPCL) has signed an agreement with for tanker lorry movements. The 34-km
The contract, for pre-FEED, FEED of work. trade in energy derivatives, international Noida International Airport to construct dedicated ATF pipeline, including 1.2-km
and PMC services, encompasses con- “The project is a great opportunity financing, and other joint ventures a pipeline for jet fuel supply. inside the airport, will operate on a
cept study and tender bid package “We have played a signifi cant role to showcase our capabilities in this exci- that the company may plan in the common/contract carrier basis. The
preparation for two developments in in ONGC’s KG-DWN-98/2 project by ting market and we are confi dent that future. HPCL had similar plans around The agreement proposes to lay a initiative is expected to enhance the
the Krishna-Godavari (KG) basin on providing PMC services. ONGC’s KG- our successful execution will result in eight years ago, which were put on the dedicated aviation turbine fuel (ATF) effi ciency of fuel usage at the airport,
India’s east coast, Nauvata said. DWN-98/2 is one of the most complex a longstanding relationship with both back burner as the company wanted pipeline from BPCL’s Piyala terminal while setting a benchmark for sustain-
deepwater development projects in the ONGC and Nauvata,” PERC’s President, to study the prospects of setting up a to the tank farm at the airport for effi - able infrastructure development in
The award comes at the heels of world. At its peak, Nauvata had close Mr. Felipe Gonzalez, said. trading desk in detail. cient fuel supply and reduction in car- India’s aviation sector.

154 Chemical Weekly April 30, 2024 Chemical Weekly April 30, 2024 155

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