Page 147 - CW E-Magazine (13-2-2024)

Hydrocarbons Hydrocarbons

ATF PRODUCTION BUDGET ESTIMATES
MRPL becomes India’s fi rst refi nery to bag new ONGC, IOC, other oil PSUs to invest Rs. 1.2 lakh-

aerospace standard crore in FY25

Mangalore Refi nery and Petro- precision, reliability, and safety in its criticalities like the addition of quali- ONGC, IOC and other oil PSUs country’s top oil refi ner, will be the Rs. 6,880-crore next year as compared
chemicals Ltd. (MRPL) has been certi- supply chain. As a certifi ed organisa- fi ed additives and catalysts, standardi- will invest about Rs. 1.2 lakh-crore in top spender with an investment outlay to Rs. 5,648-crore in the current fi scal.
fi ed with AS9100:D standard prepared tion, MRPL is now well-positioned to sation of production processes, transfer the coming fi scal starting April in oil of Rs. 30,910-crore, with the bulk of it
by International Aerospace Quality serve as a trusted partner to aerospace through a dedicated pipeline network, and gas exploration, refi neries, petro- in expansion and upgrade of its seven In her interim budget for 2024-25
Group (IAQG) to assure customer satis- companies within India and globally,” ensuring fuel devoid of foreign object chemicals and laying pipelines to meet refi neries. This outlay also includes ahead of general elections, Finance
faction in aviation, space and defence it said in a statement. detection (FOD) in storage tanks, the needs of the world’s fastest-grow- Rs. 3,299-crore in the petrochemical Minister Ms. Nirmala Sitharaman had
organisations, under the scope of “pro- followed by certifi cation and distribu- ing energy consuming nation. business and another Rs. 236.48-crore on February 1 put off capital support to
duction, storage, testing and distribu- The standard ensures the interaction tion to customers. in the small oil and gas exploration oil marketing companies – IOC, BPCL
tion of aviation turbine fuel”. and confi guration of various processes, The investment proposed in 2024-25 portfolio it has. The investment planned and HPCL – to the next fi scal year. In
from sourcing raw materials to the fi nal MRPL’s newly acquired certifi ca- is 5% higher than Rs. 1.12 lakh-crore by IOC is less than Rs. 31,254-crore the previous budget (for 2023-24),
“MRPL is India’s fi rst refi nery to product certifi cation. The certifi cation tion is expected to give it leverage to spent by the State-owned oil fi rms spending in the current 2023-24 fi scal. she had announced equity infusion of
get this new aerospace standard. The process involves an audit of the entire expand its presence in the aerospace in the current fi scal year that ends on Rs. 30,000-crore in IOC, BPCL and HPCL
aerospace industry demands the utmost life cycle of ATF, involving production sector. March 31, according to Budget 2024-25 Bharat Petroleum Corp Ltd. (BPCL) has to support their energy transition plans.
documents. proposed a 30% higher capital spending Alongside, she had also proposed
at Rs. 13,000-crore, two thirds of which Rs. 5,000-crore for buying crude oil to
UNSAFE SEAS Oil and Natural Gas Corp. (ONGC) will be in its core refi -ning business. fi ll strategic underground storages at
India’s diesel exports slump in January as refi ners has a planned capital spending of Gas utility, GAIL India Ltd., will patnam in Andhra Pradesh that India has
Mangalore in Karnataka and Visakha-
Rs. 30,800-crore in the next fi nancial
avoid Red Sea year. This expenditure in fi nding new see its planned investment decline to built to guard against any supply disrup-
reserves of oil and gas and bringing over Rs. 8,000-crore in 2024-25, from tions.
to production discoveries it has Rs. 9,750-crore in the previous fi scal,
India’s diesel exports slipped to a shows that clean petroleum product Sea – more refi ners are avoiding Bab-el- already made, is slightly higher than as most of its pipeline grid expansion In November last year, the Finance
multi-year low in January 2024, after (CPP) exports from India to the US fell Mandeb that connects Red Sea to Gulf Rs. 30,500-crore capex in 2023-24. It projects are nearing completion. Ministry halved the equity support and
registering a 17-month high in Decem- to around 47,226-bpd in January 2024 of Aden and accounts for 12% of sea- is developing discoveries on both east the interim budget for 2024-25 showed
ber 2023, as more transporters and from 85,620-bpd in December 2023. borne crude oil and 8% of LNG trade. and west coasts of the country. Hindustan Petroleum Corp. Ltd. no allocation for equity infusion in the
refi ners, including Reliance Industries Similarly, cumulative shipments to Cape of Good Hope (COGH) is fast (HPCL), a subsidiary of ONGC, will current fi scal. The Rs. 15,000-crore has
Ltd. (RIL), are avoiding the Red Sea. the UK plus nine countries, including emerging as the preferred route. S&P The top oil producer’s overseas invest Rs. 12,500-crore in FY25, mar- now been earmarked for 2024-25 fi scal.
France, Netherlands and Spain, fell to Global Commodity Insights in a Janu- arm, ONGC Videsh Ltd. (OVL) will ginally higher than Rs. 12,000-crore in
According to energy intelligence 152,010-bpd from 425,193-bpd. ary 16 report said “S&P Global Com- invest 68% more at Rs. 5,580-crore the previous year. The budget documents did not
fi rm, Kpler, India shipped around modities at Sea data showed that Indian in 2024-25 in oil and gas operations provide any funds either in the current
302,000 barrels per day (bpd) of Analysts and trade observers point refi ner Reliance, a key diesel/ gasoil abroad when compared with the pre- Oil India Ltd. (OIL), the nation’s fi scal or the next for fi lling the strategic
diesel last month compared to almost out that since January 12 – when the supplier to Europe, had loaded no prod- vious fi scal. Indian Oil Corp. (IOC), the second-largest oil producer, will invest reserves.
551,000-bpd in December 2023, a US and the UK carried air strikes on uct for export to the continent in the
decline of more than 45%. Kpler data Houthi rebel positions along the Red fi rst two weeks of January.”
Government raises windfall tax on crude petroleum
GREENER FUEL
MRPL signs long term RLNG pact with BPCL tax on domestically produced crude oil at nil. tonne.
The Government has hiked windfall and jet fuel or ATF, has been retained Rs. 2,300 per tonne from Rs. 1,300 per

to Rs. 3,200 per tonne from Rs. 1,700
As a major step towards meeting its practices and greener fuels. Apart from poration Ltd. (BPCL) for long-term gas per tonne with effect from February 3. On January 16, the government India fi rst imposed windfall profi t
‘net zero’ goals of reducing carbon foot- plans to set up a bio-ATF plant, green supply for fi ve years. Under the agree- The tax is levied in the form of Special reduced the windfall tax on petroleum taxes on July 1, 2022, joining a host
print, Karnataka-based petroleum refi nery hydrogen generation and sourcing ment, BPCL will supply 0.43-mmscmd Additional Excise Duty (SAED). crude to Rs. 1,700 per tonne from of nations that tax supernormal profi ts
Mangalore Refi nery and Petrochemi- greener electric power from the grid, of RLNG to MRPL’s refi nery and petro- Rs. 2,300 per tonne. Further back on of energy companies. The tax rates are
cals Ltd. (MRPL) has taken up various MRPL, on February 1, 2024, signed an chemical facility at Mangaluru from the According to an offi cial notifi ca- January 2, the government lifted the reviewed every fortnight based on average
initiatives towards a shift to sustainable agreement with Bharat Petroleum Cor- Kochi LNG terminal. tion, SAED on export of diesel, petrol, windfall tax on petroleum crude oil to oil prices in the previous two weeks.

146 Chemical Weekly February 13, 2024 Chemical Weekly February 13, 2024 147

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