Page 159 - CW E-Magazine (19-11-2024)

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POLICY FOCUS HUGE POTENTIAL
‘India moving towards gas-based economy from ‘Northeast gas grid to be operational by 2026’

import dependent crude-based one’ Work on the Northeast Natural Gas
Grid is proceeding as per schedule and
India is moving towards a gas- He also added that by encouraging This steady rise in production will will likely be operational by 2026,
based economy from the imported domestic producers to invest in gas support India’s journey towards be- according to Mr. Rajesh Mediratta,
crude-based economy for its energy production, the government is not only coming a gas-based economy, ensuring Managing Director and CEO of Indian
requirements, according to oil minister, creating a stronger energy foundation greater energy security and stability, he Gas Exchange (IGX).
Hardeep Singh Puri. within India but also supporting the said. He noted that one of the key re-
nation’s economic and environmental forms implemented by the government India’s northeast region has tre-
He stated that in recent years the goals. includes an incentive for gas producers mendous potential in the production of
government has taken transformative from new wells in nomination fi elds, natural gas. The region has a deposit
steps to increase domestic gas pro- The minister also noted that gas which are eligible to receive 20 per- of 6-million mmscmd of natural gas
duction and reduce India’s reliance on production in India saw an 18 percent cent higher prices. This policy aims which can be monetised by the existing
imports. Currently, India imports about increase last year, a promising sign of to attract greater investment in India’s producers, said Mr. Mediratta, while
50 percent of its natural gas needs, but growth. Forecasts show production exploration and production (E&P) sector, speaking at the ‘Gas Market Develop- mated national-level gas exchange for companies can unearth 6-mmscmd. This
with new investments in the upstream volumes reaching 38.2 billion cubic boosting confi dence among investors ment for North East’, where leading physical delivery of natural gas. will save approxmately Rs. 14,000-crore
sector, this dependence is expected to metres (bcm) in 2024, 40.9-bcm in and encouraging them to take an active energy producers and stakeholders apart from allowing backward linkage
come down over time. 2025, and 45.3-bcm by 2026. role in India’s energy transition. participated in Guwahati. India stands to benefi t tremendously in the local economy with job and
Inox India bags major LNG terminal contract in the Bahamas “This (grid) will add to the coun- from the exploration of the Northeast’s trade opportunities in the region,”
rich natural gas deposits. India cur-
Mr. Mediratta said.
try’s energy security as IGX will help rently imports about 50 percent of its
Inox India Ltd. has secured a con- provide shore power to cruise ships at June 2026. The facility will be capable gas producers to monetise stranded gas consumption, around 100-mmscmd to Highlighting the market potential
tract from Island Power Producer Ltd. the Nassau Cruise Port. With a total of receiving LNG through smaller ships who can sell the surplus gas to the other meet the total demand of 200-mmscmd. for the export of natural gas from the
(IPP) to build a mini-LNG terminal in storage capacity of 15,000-m³ of LNG, and reloading LNG in ISO containers regions,” Mr. Mediratta added, as per region, he said that neighbouring Bangla-
the Bahamas, the company announced it will be the world’s largest installation for nearby users. This marks Inox a statement by the gas exchange. Esta- “With the effective gas pipelines desh has tremendous market potential as
in a regulatory fi ling. The project in- of shop-built double-walled vacuum India’s third mini-LNG terminal pro- blished in 2020, IGX is India’s fi rst auto- in the region, the existing petroleum the country has been using natural gas.
volves supplying 10 LNG storage tanks insulated cryogenic tanks. ject, following the recent completion of
of 1,500-m³ capacity each and a regasi- their terminal in Antigua. The company TRADE TRENDS
fi cation system for IPP’s 60-MW The project will be executed in two will manufacture the major components
combined cycle power plant. phases, with the fi rst phase of fi ve tanks at its Kandla facility. While the contract ‘India, Saudi Arabia top buyers of Russian VGO and
and regasifi cation system scheduled for value wasn’t disclosed, the company
The terminal, set to be the company’s completion by February 2026, followed stated this is its biggest-ever order for fuel oil in October’
largest mini-LNG facility to date, will by the second phase of fi ve tanks by its LNG business division.
India and Saudi Arabia were the top from Russian ports to Saudi Arabia
India’s Russian oil imports kept global prices destinations for Russian seaborne fuel declined in October by 9% month-on-
oil and vacuum gasoil (VGO) exports
month to 0.65-million tons on falling
in check: Minister in October, a Reuters report said quot- demand as summer heat was over.
ing traders and LSEG (formerly Refi -
Global oil prices “would have hit Before that, India bought little oil from Mr. Hardeep Singh Puri, wrote on nitiv) data. Russian fuel oil and VGO loadings
the roof” if India had not bought oil Russia. social media platform, X. to India rose in October by 56% to
from Russia following the Ukraine war, Total fuel oil and VGO exports around 0.51-million tons, while dark oil
oil minister Hardeep Singh Puri said, India has repeatedly defended its India’s crude oil imports from from Russian ports in October declined products supplies from Russian ports
adding that prices would determine purchases from Russia as necessary to Russia rose by 11.7 percent to about by 3% from September to about 4.15 - to China decreased by 35% to 0.47-
where the country buys oil from. India, keep prices in check in the country. 1.9-million barrels per day in September, million metric tons, according to Reuters million tons.
the world’s third largest oil importer accounting for about two-fi fths of the calculations based on LSEG data.
and consumer, has become the top “What many around the world don’t nation’s overall crude imports in the countries became the main destination China and India import straight-run
buyer of discounted Russian sea-borne seem to realise is that global oil prices month. Russia was followed by Iraq Since the European Union’s full for Russia’s fuel oil and VGO supplies. fuel oil and VGO as cheaper alternative
oil shunned by Western countries since would have hit the roof if India had not and Saudi Arabia as India’s biggest embargo on Russian oil products went to Urals crude oil in their refi nery feed-
Ukraine’s invasion began in early 2022. bought oil from Russia,” oil minister, suppliers. into effect in February 2023, Asian Direct fuel oil and VGO shipments stock pool, according to the report.

158 Chemical Weekly November 19, 2024 Chemical Weekly November 19, 2024 159

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