Page 156 - CW E-Magazine (20-8-2024)

Hydrocarbons

Indian crude basket price as announced had to be worked out by the Directorate nominated fi elds in challenging areas
by Petroleum Planning and Analysis General of Hydrocarbon (DGH) for that require higher amounts of capital
(PPAC) on a monthly basis. It was approval of the Ministry of Petroleum and technology,” it said.
provided in the guidelines that for the and Natural Gas (MOPNG),” ONGC
gas produced from new wells or well said in a statement. This will enhance the investment
intervention in the nomination fi elds of capacity in the company to take up deve-
ONGC/OIL, there would be a premium “The enhanced price for new gas lopment projects which are otherwise
of 20% over APM prices – a total of will make new gas development pro- capital intensive and involve higher
12% of Indian crude basket price for jects viable and help ONGC to aug- degree of risks requiring commensurate
new gas. The modalities for the same ment production of natural gas from prices, it added.
OPEC OUTLOOK
India’s oil demand to grow by 6.6% in 2024

India’s oil demand is expected to world oil demand growth forecast for Decrease in crude oil imports
grow by 6.6% in 2024, according to 2024 downward by 135,000-bpd, bring- India’s crude oil imports in June
the latest OPEC Monthly Oil Market ing it to 2.1-mbpd. This adjustment is 2024 averaged 4.5-mbpd, a slight de-
Report. This growth positions India as primarily due to lower-than-expected crease from the strong levels observed
a key contributor to the overall non- demand growth in China and data from in previous months, refl ecting seasonal
OECD oil demand, which is projected the fi rst half of 2024. trends. Additionally, product imports
to increase by approximately 1.9-mbpd declined by 8%, mainly due to reduced
(million barrels per day) in 2024. However, India’s demand, driven infl ows of LPG.
Despite a slight downward revision in by a projected economic growth rate
global oil demand growth forecasts, of 6.6%, shows resilience amidst these Nevertheless, India’s overall oil
India’s demand outlook remains un- global revisions. Looking ahead to 2025, demand remains stable, with the coun-
changed. India’s oil demand is forecasted to rise try’s refi neries operating at high utili-
by 6.3%. This is linked to India’s ex- sation rates to meet domestic and
Globally, the report revises the panding industrial base and population. export needs.
CPCL’s margins improve on processing of cheaper crude

Chennai Petroleum Corporation Ltd. 111% capacity utilisation. This led to bility, he added. CPCL recorded its
(CPCL), a subsidiary of Indian Oil Cor- increased production volumes, better second-highest turnover of Rs. 79,207-crore
poration (IOC), said it could achieve energy performance, and enhanced profi ta- and net profi t of Rs. 2,711-crore.
improved margins in FY24 due to the
opportunity to process more cost-ef- Domestic fuel sales up in July
fective crude oil. Processing of less
costly crude reached its highest level at Petrol sales rose 10% and diesel 4.3% Petrol consumption growth was driven
31.3% (3.6-mt) enhancing the refi nery in July over the previous year as econo- by robust car and bike sales and increased
margins during FY24. The key energy mic activity gained pace, according to the mobility with the end of summer holidays
performance indicators, including fuel oil ministry data. Jet fuel consumption and the reopening of schools.
and loss of 8.81%, and Energy Intensity expanded by 9% while cooking gas sales
Index (EII) of 87.5, facilitated cost sav- increased by 11% in July. Diesel, which accounts for 40% of the
ings and improved effi ciency, informed country’s total refi ned petroleum pro-
Mr. S.M. Vaidya, Chairman, IOC, while The sales growth in petrol and die- ducts consumption, is extensively used in
addressing CPCL’s 58th annual general sel was signifi cantly higher in July than long-haul transport, mining and farming.
meeting. in the fi rst quarter of the current fi scal Its increased consumption is an indicator
year when the demand for petrol grew by of higher economic activity. Jet fuel de-
CPCL also achieved its highest-ever 7.1% and diesel by 1.6%. Jet fuel sales mand rose in July on increased air traf-
crude throughput since its commission- increased by 11.4% and cooking gas by fi c. Expanding customer base has fuelled
ing, processing 11.642-mt, resulting in 5% in the fi rst quarter. cooking gas consumption.

156 Chemical Weekly August 20, 2024

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