Page 139 - CW E-Magazine (6-2-2024)

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ENERGY OUTLOOK JOINT VENTURE
Natural gas demand to rise 6% in 2024: IEA Wabag to set up 100 bio-CNG plants at sewage

India’s natural gas demand is duced the Unifi ed Tariff (UFT) treatment facilities
expected to rise by 6% in 2024 with a rise policy in April 2023 to create a single,
in consumption in fertiliser units, power consistent and fair tariff structure for VA Tech Wabag Ltd., a water tech- tive would not only meet the growing and greener fuel,” said Mr. Shailesh
generation and industrial sectors, ac- natural gas transport across the coun- nology company, has entered into an energy demand in a responsible and Kumar, CEO-India Cluster, Wabag.
cording to the International Energy try. The UFT policy will apply to a MoU with Peak Sustainability Ventures eco-friendly manner, but also contri-
Agency (IEA). Following the 7% network of 21 pipelines, representing (PEAK) to establish 100 bio-CNG plants bute to India’s commitment to GHG PEAK manages an Alternative
year-on-year decline observed in 2022, around 90% of pipelines in operation at sewage treatment facilities across emission reduction and to reduction of Investment Fund (AIF) which invests
India’s primary gas demand rose by 5% or under construction. The price of India and other mutually agreed loca- air pollution from methane, which has across four verticals: new energy (renew-
in 2023, with growth primarily driven transporting gas consists of two com- tions in the GCC, Africa, and Europe. much higher Global Warming Potential ables, energy storage, waste-to-energy,
by the petrochemical, power genera- Power companies imported 2.32-bcm ponents: a fi xed unifi ed tariff based (GWP) than carbon dioxide,” it said in hydrogen, etc.), food systems, water and
tion, refi nery and industrial sectors. of LNG in 2023, accounting for around on the levelised cost of service of the The parties aim to harness the a statement. other climate-related sectors. Wabag will
9% of total imports, and up by 76% on entire pipeline network, and a variable unutilised potential of sewage treatment serve as technology partner and be res-
“Natural gas demand in India is the year. zonal factor depending on distance. plants to generate bio-CNG, which can “Wabag is already producing more ponsible for execution, commissioning
expected to increase by 6% in 2024, mainly be used for mobility application in than 40-MWh of green energy through and O&M of the bio-CNG plants, while
supported by higher gas use in industry In November 2023, India approved “The UFT policy aims to create a trucks & heavy duty vehicles, and for its various plants. With this collabora- PEAK would assist in raising capital for
(including in the fertiliser sector) and mandatory blending of compressed more stable, competitive and transpa- industrial applications, thereby reduc- tion, we are taking the next step in our the projects. The collaboration aims to
stronger gas burn in the power sector biogas (CBG) into the domestic gas rent pricing regime, which should bene- ing the need for fossil fuels. “This initia- green energy segment to produce cleaner generate over 73-ktpa of bio-CNG.
amid the development of its national supply. The mandate will be set at 1% fi t both gas supply and demand. It is
pipeline grid and city gas infrastruc- of total compressed natural gas (CNG) expected to assist the government in DECEMBER TRENDS
ture,” IEA’s Gas Market Report released and domestic piped natural gas (PNG) achieving the ‘One Nation One Grid Natural gas production up 6.1%, LNG imports
recently said. Liquefi ed natural gas consumption from 2025, and raised One Tariff’ model’,” it said.
(LNG) imports rose by 7% in 2023 to gradually to 5% from 2028-29. grow 12.8%
29-bcm (billion cubic meters), pegging The IEA said India has approved a
the import dependency at 44% of the Continued reforms National Green Hydrogen Mission in India’s natural gas sector showed In the fi scal year-to-date, from April evident in the fertiliser sector, which
nation’s natural gas consumption. Domes- On reforms, IEA said, “India con- January 2023. The mission sets a target a substantial increase in activity in to December 2023, the total natural gas utilised 867-mmscm, demonstrating
tic production was up 6% on the year to tinued to advance gas market reforms for at least 5-mtpa of green hydrogen December 2023, with gross natural gas available for sale in the country spiked the strategic importance of natural gas
35-bcm on the back of a rise in output in 2023. The country introduced a production by 2030, with potential to production rising by 6.1% to 3,132-mil- by 10%, reaching 5,021-mmscm. This in supporting India’s agricultural back-
from Reliance Industries’ KG-D6 block. unifi ed pipeline tariff system on April 1, reach 10-mtpa with growth of export lion standard cubic metres (mmscm) aligns with the Indian government’s bone.
which could benefi t consumers located markets. It proposes two distinct fi nan- compared to the same month the pre- initiatives to amplify the use of cleaner
“We expect India to increase its far from domestic gas supply sources cial incentive schemes to support vious year, according to the Petroleum energy sources as part of its broader green The report also noted a growing
LNG imports in 2024 by 7%, fuelled and/or LNG terminals.” domestic manufacturing of electrolysers, Planning & Analysis Cell (PPAC). economy agenda. A sectoral breakdown trend in Regasifi ed LNG (R-LNG)
by demand from the power and ferti- as well as the production of green for December 2023 stated that fertiliser consumption across various sectors,
liser sectors, as the country plans to The Petroleum and Natural Gas hydrogen. The initial outlay of the The report also highlighted a 12.8% production continued to be the most with the fertiliser sector accounting for
stop importing urea by 2025,” IEA said. Regulatory Board (PNGRB) intro- mission is around $2.4-bn. year-on-year growth in imported Lique- signifi cant consumer of natural gas at 1,615-mmscm, refl ecting the govern-

ENERGY TRANSITION fi ed Natural Gas (LNG), amounting 32%, followed by city gas distribution ment’s push for a cleaner environment
to 2,410-mmscm, indicating the coun-
(CGD) at 20%, and power generation at through initiatives such as the Green
Essar Oil UK rebrands to EET Fuels try’s escalating demand for cleaner fuel 11%. The emphasis on domestic natu- Hydrogen Mission and the promotion
alternatives. ral gas consumption was particularly of battery energy storage systems.
Essar Oil UK has become EET the River Mersey, to support industrial  Industrial carbon capture (ICC),
Fuels, as it delivers on its plan to become decarbonisation, with the ambition to which was announced in November BPCL’s Q3 net profi t up 81%
the UK’s fi rst low carbon refi nery, set- deliver a 95% cut in carbon emissions 2022 and is scheduled to be opera-
ting the global benchmark for lower associated with its production proces- tional by 2028. The project will result Bharat Petroleum Corporation from Rs. 8,244-crore in Q2FY24. “Improved market sales and
emitting refi neries and industrial decar- ses by 2030. in a reduction of ~1-mtpa of CO . (BPCL) has reported 81% y-o-y Consolidated total income during refinery throughput in Q3FY24
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bonisation.  Hydrogen fuel switching – from natu- growth in consolidated net profit at Q3FY24 stood at Rs. 1.31-lakh crore, compared to Q3FY23 resulted in
The decarbonisation strategy will ral gas and other refi nery fuel sources Rs. 3,181-crore in Q3FY24 aided by compared to Rs. 1.17-lakh crore in increased profits for Q3 FY24,
EET Fuels is investing $1.2-bn on reduce refi nery emissions with two to hydrogen as a fuel – resulting in an better sales and marketing margins. Q2FY24 and Rs 1.34-lakh crore in BPCL’s CMD, Mr. G. Krishnakumar
its refi nery based at Stanlow (UK), on approaches: annual reduction of ~1-mtpa of CO . However, net profit slipped 61% Q3FY23. said.
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138 Chemical Weekly February 6, 2024 Chemical Weekly February 6, 2024 139

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