Category — Oil & Gas

India Open to $300 Billion Oil & Gas Investments

India will offer global investors $300 billion worth of investment opportunities in the hydrocarbon sector over the next decade to keep pace with the country’s energy demand, India’s Minister for Oil Dharmendra Pradhan said.

Speaking in New Delhi at the India Energy Forum, organized by CERAWeek the Houston-based information and insights company IHS Markit, Pradhan said that India’s oil and gas output has been stagnant for years while its fuel demand has risen. Modi’s government is taking steps to unlock the country’s vast energy reserves and boost foreign investment in the sector; it has relaxed rules, including those on pricing and marketing, he added.

Natural Gas, Oil Rig

India, which imports over 80 percent of its oil needs, wants to reduce this figure by 10 percent by 2022, reports Live Mint. The country wants to attract foreign investors to $300 billion worth of energy projects that will include increasing the country’s refining capacity, oil and gas block exploration, and developing gas infrastructure, including the transport of liquefied natural gas and re-gasification.

October 15, 2017   No Comments

U.S. Companies to Ship 1.6 million tons of Ethane to India

Planning to replace natural gas and naphtha at its petrochemical plants, Mumbai-based Reliance Industries Limited will procure 1.6 million tons of ethane from three companies in the U.S.

Reliance Industries has three joint ventures in America: one with California headquartered Chevron Corp, in which it has invested $1.7 billion; the second with Houston-based Carrizo Oil & Gas Inc, in which it has invested $392 million; and a third with Dallas-based Pioneer Natural Resources Co., in which it has invested $1.5 billion.

Ethane is expected to be produced in large volumes in North America due to the shale gas revolution, which has generated an abundance of liquefied natural gas, and liquefied petroleum gas, reports the Times of India. Amit Mehta, head of Reliance’s gas business, said that the company has contracted ethane supplies for more than 20 years from America.

Reliance Industries will get its requirement from Marcellus Shale a Middle Devonian age unit of marine sedimentary rock in the Appalachian Basin of eastern North America, and from Texas’ Eagle Ford Group a sedimentary rock formation deposited during the Cenomanian and Turonian ages of the Late Cretaceous period.

Reliance Industries

Reliance Industries

August 31, 2017   No Comments

First American Crude Oil Shipped to India

The first shipment of two million barrels of American crude oil costing $100 million will reach India in the last week of September, opening a new chapter in trade between India and the U.S. This consignment is a fraction of India’s $70 billion oil import bill for 2016-17. Given the volume being contemplated by Indian companies, this new development is currently expected to boost the bilateral oil trade to $2 billion annually.

The Hindustan Times reports that while the 40-year-old ban on export of American oil was lifted by the then U.S. President Barack Obama in December 2015, the real move started during the maiden meeting between Prime Minister Narendra Modi and U.S. President Donald Trump on June 26 when the two leaders agreed to deepen the engagement in the energy sector.

President Trump and PM Modi

Saudi Aramco‘s decision to raise Arab Light crude price by 60 cents per barrel for Asian buyers narrowed the differential between West Asian crude oil and North Sea Brent, the benchmark for most of global oil trade. The narrowed differential turned U.S. oil attractive for India even after factoring the distance between the two countries.

India’s largest state-run refiner-marketer Indian Oil Corporation Limited (IOC) and state-owned companies Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have all opted for American crude oil.

BPCL bought a cargo containing 500,000 barrels each of Mars and Poseidon, and 1 million barrels of U.S. WTI Midland sweet crude; IOC sealed a deal to purchase 1.6 million barrels of crude oil from the U.S. in July, and this month it placed an additional order of 2 million barrels. HPCL plans to buy low-sulfur oil from the United States in the next few months for its 166,000 barrel per day refinery in southern India.

Senator Ted Cruz said Texas will provide crucial oil exports to India and serve as a reliable long-term supplier of energy.

August 17, 2017   No Comments

Indian Oil Corporation to Buy American Crude Oil

State-owned Indian Oil Corporation floated its first tender to purchase high-sulfur, or sour, crude from North America as it seeks to diversify imports.

BusinessLine reports that India’s largest oil refiner is seeking to buy the crude grades Mars, Southern Green Canyon and Thunderhorse from the United States, and Western Canadian Select from Canada. Sellers are to deliver the oil in late September or early October.

Indian Oil Corporation

Indian refiners consider these heavy, high-sulfur grades as feedstocks. After effecting modifications at their plants, these types of crude grades are easier to process and they typically sell at a lower cost compared to other oil types. The U.S. could become an alternative source for the Indian companies for these grades.

July 11, 2017   No Comments

Shell Inaugurates Technology Center in India

British-Dutch oil and gas multinational Shell opened a new major technology hub in Bangalore — a 52 acre, custom-built facility – that can house up to 1,500 scientists and engineers, who will  work on worldwide innovative energy projects.

This third center, which is similar to those in Amsterdam and Houston, will have specialists who will work closely with experts from external industrial partners, universities, and institutes. In India, chemistry and catalysis research is done in collaboration with the Indian Institutes of Technology.

“Collaboration is essential to meet our biggest challenge: timely development and deployment of the best and affordable energy solutions, for today and for the future as the world transitions to a low carbon energy system,” said Harry Brekelmans, Shell’s Projects & Technology Director.

Shell Logo on a canopy

Using its IH2 (waste to fuel) technology, this center will help pioneer efforts to turn forestry, agricultural and city-generated waste into transportation fuels, with a new demonstration plant built at the site, reports the Economic Times.

“The center is slated to play a prominent role in Shell India’s aspiration to custom-build a portfolio of new energy solutions specifically suited to India’s energy challenges,” Nitin Prasad, Chairman of Shell Companies in India, said.

June 8, 2017   No Comments