Page 147 - CW E-Magazine (2-1-2024)

Hydrocarbons Hydrocarbons

OUTLOOK its consistent performance over the last
India’s liquid fuels consumption to grow at average three years. The award was received by
Mr. Mandeep Narang, Director Opera-
0.3-mbpd in 2024: US EIA tions, Cairn Oil & Gas, at a ceremony
held in Bengaluru recently.

India’s liquid fuel consumption, 2023 and by 0.3-mbpd in 2024. India’s in Q1 2024 calendar year, 5.72 mbpd As part of its sustainability efforts,
which includes crude oil and refi ned liquid fuels consumption in our forecast in April-June 2024, 5.34-mbpd and Cairn has implemented various initia-
petroleum products, is expected to increases by an average of 0.3-mbpd in 5.68-mbpd in Q3 and Q4 2024, re- tives aligned with its Net Zero target.
grow at an average of 0.3-million bar- both 2023 and 2024,” it added. spectively. For the entire 2024, the The company said it continuously
rels per day (mbpd) in 2024, the U.S. world’s third-largest crude oil impor- explores innovative solutions and tech-
Energy Information Administration Liquid fuels include crude oil and ter’s consumption of liquid fuels as well nologies to optimise resource utilisa-
(EIA) has said. refi ned petroleum products, natural as crude oil is projected at 5.6-mbpd, tion, enhance energy effi ciency, and
gas liquids, biofuels and liquids against 5.31-mbpd in the current calen- minimise greenhouse gas emissions to
According to the US EIA’s short- derived from other hydrocarbon sources dar year and 5.02 mbpd in 2022. reduce its carbon footprint across opera-
term energy outlook (STEO), global (including coal to liquids and gas to tions.
liquid fuel consumption is projected to liquids). It does not include liquefi ed OPEC has projected India’s oil
increase by 1.8-mbpd in 2023 and by natural gas (LNG) and liquid hydrogen. demand in 2024 at 5.59-mbpd against TRADING CHALLENGES
1.3-mbpd in 2024. Most of the expected 5.37-mbpd in 2023 and 5.14-mbpd in
growth in liquid fuels demand is in non- Rising consumption 2022. In Q1 2024, oil demand is pro- Rupee payment for crude oil imports fails to take off
OECD Asia, led by China and India. The US Department of Energy’s jected to grow by a healthy 227,000
statistical and analytical agency has barrels per day (bpd), on an annual The oil ministry has said that India’s countries, the Indian currency conti- in Indian rupee, subject to the suppliers’
“We expect China’s liquid fuels projected India’s petroleum and other basis, OPEC said in its monthly oil push for rupee transactions for crude oil nues to be shunned by oil exporters. complying with regulatory guidelines
consumption to rise by 0.8-mbpd in liquid fuels consumption at 5.65-mbpd market report of December 2023. import has not found any takers as sup- in this regard,” the ministry said. “Cur-
pliers have expressed concern about the “During FY 2022-23, no crude oil rently, Reliance Industries Ltd. and oil
TRADE TRENDS repatriation of funds and high transac- imports by oil PSUs were settled in PSUs do not have an agreement with
India exports 43% more diesel in November tional costs. Indian rupee. Crude oil suppliers (in- any crude oil supplier to make purcha-
cluding UAE’s ADNOC) continue to ses in Indian currency for the supply of
India exported 43% more diesel Lower local demand in November, Production of refi ned petroleum Currently, the default payment cur- express their concern on the repatria- crude oil.”
in November than a year ago as local along with high refi nery runs, helped products increased 12% year-on-year in rency for all contracts for import of tion of funds in the preferred currency
demand slipped while refi neries ran above build a surplus for strong exports. India November and 5% in the April-Novem- crude oil is the US dollar as per the and also highlighted high transactional In FY 2023, India spent $157.5-bn
their capacity. Domestic diesel demand exported 28% of the diesel it produced ber period. Diesel comprised 44% of international trade practice. However, costs associated with the conversion of on import of 232.7-mt of crude oil. Iraq,
fell 3% year-on-year in November as in November. the total refi ned products produced in in a bid to internationalise the Indian funds along with exchange fl uctuation Saudi Arabia, Russia, and UAE were its
commercial transport and factory acti- November. Private sector refi ners – currency, the Reserve Bank of India on risks,” the oil ministry told the parlia- biggest suppliers. Of this, 141.2-mt came
vity slowed after a festive surge. In the Local refi neries processed 5.29 Reliance Industries and Rosneft-backed July 11, 2022 allowed transactions for mentary department related standing from the Middle East, accounting for 58%
fi rst seven months of this fi nancial year, million barrels a day (mbd) of crude Nayara Energy – are the main exporters. importers and exporters in the Indian committee. of all supplies. In the current fi scal, India
the increase in domestic diesel demand in November, higher than 4.78-mbd State-run refi ners also buy from rupee. While a few non-oil trades have imported 152.6-mt of crude oil between
had been unusually strong at 6.7%, last November and 5.17-mbd in the private refi ners to meet domestic happened in the rupee with a select few “Payments for crude oil can be made April and November for $113.4-bn.
higher than petrol’s 6%. The growth in April-November period of this year. demand. Europe and the US are the key
diesel consumption was 5.4% for the The combined nameplate capacity for destinations for India’s diesel exports PNGRB invites bids for 875-km gas pipeline connecting
April-November period. Indian refi ners is 5-mbd. these days.
Ennore to Barshi
CORPORATE OF THE YEAR AWARD
Cairn Oil & Gas’s sustainability initiatives recognised Regulatory Board (PNGRB) has in- serve industrial, commercial and other bids must be submitted by April 16.
The Petroleum and Natural Gas including common carrier space, and connectivity with demand centres. The
by Frost & Sullivan vited bids for laying an 875 km-long customers falling along the route in Interested parties will have to offer a
natural gas pipeline between Ennore in Andhra Pradesh, Telangana, Karnataka natural gas pipeline tariff bid for each
Cairn Oil & Gas, part of Vedanta the Frost & Sullivan Sustainability 4.0 Social and Governance). In addition, Tamil Nadu and Barshi in Maharashtra. and Maharashtra, according to the year of the economic life of the project.
Group, has received the ‘Sustainable Awards. The award recognises Cairn’s Cairn was also awarded the “Consis- PNGRB bid document. IOC has an The successful bidder will need to lay,
Corporate of the Year’ award in the manu- commitment in practicing the high- tency Silver Award” in the ‘Sustainabi- The proposed pipeline will have LNG import terminal at Ennore, which build, and operate the natural gas pipe-
facturing sector at the 14th edition of est standards of ESG (Environmental, lity Leaders’ category, acknowledging a minimum capacity of 8-mmscmd, is barely utilised today due to a lack of line.

146 Chemical Weekly January 2, 2024 Chemical Weekly January 2, 2024 147

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