Page 159 - CW E-Magazine (9-7-2024)

Hydrocarbons Hydrocarbons

PROJECT UPDATE FIRST RIGHT OF REFUSAL
GAIL’s Urja Ganga gas pipeline completion delayed BPCL subsidiary gets NCLT nod to take over Videocon Oil

to March 2025 A Mumbai bankruptcy court has ap- and their commercial implications. “The of Rs. 30,640-crore from fi nancial creditors.
proved a debt resolution plan given by argument raised...that RoFR acts against Bharat Petro’s offer means a recovery of
The construction of the Rs. able for use as fuel to generate electricity, line, said its board of directors in a meet- Bharat PetroResources Ltd., a subsidiary there being a level playing fi eld is equally less than 10% for creditors. The BPCL’s
12,940-crore ‘Urja Ganga’ gas pipeline, make fertiliser or turn into CNG and ing on June 28 approved the revision of of Bharat Petroleum Corp. Ltd. (BPCL) fallacious. Being fully aware of the RoFR subsidiary’s offer received 99.96% votes
India’s most ambitious project taking cooking gas only in the western and the completion schedule. The comple- to take over Videocon Oil Ventures Ltd. available to Bharat Petro and its implica- in favour. The assets of VoVL – mainly the
environment-friendly fuel to eastern northern parts of the country, as pipe- tion schedule for the 240-km Dhamra- (VoVL), upholding Bharat Petro’s right to tions, Petro Rio submitted an offer for a oil exploration blocks – are in Brazil while
parts of the country, has been delayed lines taking the fuel from source to users Haldia pipeline has also been revised fi rst refusal as a shareholder in their Brazi- commercial value that it believed would the sale process was conducted in India.
by nine months and will now be com- were limited to these parts. from June 2024 to March 2025, it added. lian joint venture. dissuade Bharat Petro from exercising its
pleted by March 2025, state-owned ROFR....There is no question on Bharat BPCL’s subsidiary, BPRL Ventures
GAIL (India) Ltd. said. In October 2016, work on laying The company on May 10, 2019, stated The two-judge bench of the National Petro’s ROFR having an impact on the BV, had created a 50:50 joint venture with
a pipeline from Jagdishpur in Uttar that it has completed awards of all Company Law Tribunal (NCLT) dis- playing fi eld between parties,” the court Videocon’s subsidiary Videocon Energy
The 3,306-kilometre Jagdishpur- Pradesh to Haldia in West Bengal, Bokaro major contracts worth Rs. 10,500-crore missed one resolution applicant Petro said. A year ago, Bharat Petro had con- Brazil for oil and gas exploration in the
Haldia-Bokaro-Dhamra pipeline was in Jharkhand and Dhamra in Odisha for pipeline supply and laying of the Rio’s challenge to the committee of credi- sented to match Eneva and Petro Rio’s South American country. As a JV partner,
originally targeted for completion by began. The line was extended to Guwa- integrated 3,400-km Jagdishpur-Haldia tors’ (CoC) decision that allowed Bharat offers, for Potiguar Basin, Sergipe Basin BPCL has the fi rst right to match any offer
June 2024. But due to “delay in right of hati in Assam from Barauni in Bihar, and Bokaro-Dhamra Natural Gas Pipe- Petro to exercise its right to fi rst refusal and Campos Basin to PetroRio for $200-mn that lenders receive for VoVL oil basins as
use (RoU) availability”, the completion a length of 726 km, to take the fuel to line (JHBDPL) and Barauni-Guwahati (RoFR). It noted that the applicant had bid to lenders as upfront payment. The re- per the contractual arrangements governed
schedule has been revised “from June hereto-unconnected states in the eastern Pipeline (BGPL) pipeline. being fully aware of the fi rst refusal rights – solution professional had admitted claims by Brazilian law.
2024 to March 2025”, GAIL said in a region. The Jagdishpur-Haldia-Boka-
stock exchange fi ling. ro-Dhamra Pipeline (JHBDPL), popu- The government provided 40 per- TRADE TRENDS
larly called the Pradhan Mantri Urja cent viability gap funding amounting to
The bulk of the pipeline has already Ganga pipeline, is to supply gas to the Rs. 5,176-crore for execution of JHB- Petrol sales up 4%, diesel 1% in June
been constructed, and gas has started to eastern states of Bihar, Jharkhand, Odisha DPL. For the Barauni-Guwahati pipe- Petrol consumption increased 4.2% sales grew 3.6% and diesel sales declined travel and strong vehicle sales also aided
fl ow in most cities along the route. and West Bengal. line, a 60 percent viability gap funding, year-on-year in June while diesel sales 1.3% in June, according to provisional data petrol consumption. Most new cars sold in
amounting to Rs. 5,559-crore, has been
Traditionally, natural gas was avail- GAIL, the fi rm executing the pipe- provided by the government. expanded 0.7%, according to provisional sourced from state companies. The 4.3% the country are petrol-powered these days.
sales data published by the petroleum and year-on-year increase in ATF sales for state Diesel, which accounts for nearly 40% of
L&T bags ONGC order worth upto Rs. 2,500-crore natural gas ministry. Sales of aviation tur- companies was slower than the industry the national oil product demand, is used
mainly in long-haul transport, mining and
bine fuel (ATF) and liquefi ed petroleum growth rate of 8.7%. A slower-than-indus-
Larsen & Toubro (L&T) said Mr. Subramanian Sarma said, “This order Fabrication, Advanced Value Engi- gas (LPG) increased 8.7% and 5.1%, try growth for state companies meant the farming. During the April-May period,
it has secured an order worth up to refl ects ONGC’s continued confi dence neering & Technology (AdVENT) and respectively, in June. market share for private players increased diesel sales increased 1.9% year-on-year
Rs. 2,500-crore from state-run Oil and in L&T, and this emanates from our Offshore Wind Farm Business Groups, during the month. ATF sales expansion in and petrol sales 8% year-on-year. ATF
Natural Gas Corporation (ONGC). The track record of successfully delivering LTEH offers integrated design-to-build For state-run fuel retailers, which con- June was powered by the holiday season, consumption went up 15% while LPG
L&T Energy Hydrocarbon (LTEH) verti- complex offshore projects.” Organised solutions across the hydrocarbon sector trol 90% of pumps in the country, petrol when leisure travel increases. Holiday sales grew 6.7%.
cal of L&T has secured an order from the under Offshore, Onshore EPC, Modular to domestic and international customers.
ONGC for the eighth phase of pipeline Govt. raises windfall tax on crude oil
replacement project (PRP-VIII Group B) GAIL advances net zero emission
off India’s west coast, the company said. The government has raised the wind- taxing crude oil production and the export on strong refi ning margins instead of
Under L&T’s project classifi cation, target to 2035 fall tax on petroleum crude to Rs. 6,000 of gasoline, diesel, and aviation fuel. supplying it domestically. In the previ-
signifi cant orders are in the range of per metric ton from Rs. 3,250, with effect ous revision on June 15, India had cut
Rs. 1,000-crore to Rs. 2,500-crore. The State-run GAIL said that its Board of the Maharatna company said. India’s from July 2, according to an offi cial notifi - This measure was introduced to the windfall tax on petroleum crude to
order involves engineering, procurement, Directors has approved the advance of its largest gas utility plans to achieve this cation. The tax is reviewed every fort- control private refi ners who preferred Rs. 3,250 per metric ton from Rs. 5,200
construction, installation and commis- net zero target for Scope-1 and Scope-2 ambitious goal through a strategic night. Starting in July 2022, India began selling fuel internationally to capitalise a fortnight before.
sioning (EPCIC) of 129-km subsea emissions by fi ve years to 2035. approach involving electrifi cation of
pipelines and associated modifi cation natural gas-based equipment, renewable IOC to boost LNG portfolio to 20-mn tonnes by 2030
works across India’s west coast offshore This decision follows an extensive energy, battery energy storage systems
fi elds of the exploration and production study undertaken by GAIL to enhance (BESS), compressed biogas (CBG), Indian Oil Corporation (IOC) aims to by 2030, from 7.8-mtpa currently, Mr. Su- a recent industry event. The power sector
(E&P) major, it added. L&T’s Whole- its sustainability goals and align with green hydrogen, CO valorisation initia- increase its liquifi ed natural gas (LNG) joy Choudhury, head of planning and busi- is expected to be one of the key drivers
2
Time Director & President-Energy, India’s broader net zero commitments, tives and afforestation, it added. portfolio to 20-mn tonnes per year (mtpa) ness development at the company, said at for Indian LNG demand, he added.

158 Chemical Weekly July 9, 2024 Chemical Weekly July 9, 2024 159

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