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CNG/CGD
Adani Total Gas posted a bigger profit for the seventh consecutive quarter, aided by higher sales of its compressed natural gas (CNG) amid the government’s push for a wider use of gas-based vehicles. The demand for CNG in India is climbing as the government seeks to cut vehicular pollution and make cleaner-burning energy more accessible. It is targeting setting up of 20,000 CNG stations by the end of the decade. Adani Total Gas’ CNG sales volumes, which account for 67 percent of total sales, jumped 20 percent in the latest quarter, boosted by the addition of 18 new stations across the country. It has 577 CNG stations. The company secured its maiden financing, worth US$375 million (mn), to help expand its distribution network across 13 states. Sales volume in its piped natural gas (PNG) segment, its second-biggest, rose 9 percent to 157 million standard cubic metres of gas per day (mmscmd).
The government has reduced the supply of cheaper, domestically-produced natural gas to city gas retailers by up to 20 percent, which is likely to result in an INR 4-6 per kg (kilogram) increase in the price of CNG used in vehicles, unless excise duties on the fuel are lowered. This natural gas, extracted from beneath the seabed and ground across sites like the Arabian Sea and the Bay of Bengal, serves as the raw material for CNG and piped cooking gas distributed to households. However, production from legacy fields, whose prices are regulated by the government, has been decreasing by about 5 percent annually due to natural depletion, leading to significant cuts in supply to city gas distributors. According to industry insiders, the supply of gas from these fields, which met 90 percent of the demand for CNG in May 2023, has fallen progressively. As of 16 October 2024, only 50.75 percent of CNG demand is being met, down from 67.74 percent last month. City gas retailers are forced to buy imported and costlier liquefied natural gas (LNG) to make up for the shortfall, which will lead to a hike in CNG prices that varies from INR 4-6/kg. The gas from legacy fields is priced at US$6.50 per million metric British thermal units (mmBtu), as against imported LNG that costs US$11-12 per mmBtu. For now, the retailers have not raised CNG rates as they are engaged with the Ministry of Petroleum and Natural Gas to find a solution. One of the options is for the government to cut excise duties on CNG. Currently, the central government levies a 14 percent excise duty on CNG, which translates into INR 14-15 per kg. If this is cut, the retailers will not have to pass on the increased cost to consumers. Delhi and Mumbai are among the biggest CNG markets in the country. The gas supplies to city gas retailers had to be cut after the government decided to restore fuel to the Oil and Natural Gas Corporation (ONGC)-promoted OPaL (ONGC Petro additions Limited) petrochemical plant in Dahej, Gujarat.
LNG
Hindustan Petroleum Corporation Ltd (HPCL) is seeking liquefied natural gas (LNG) cargo to commission its new import terminal in December or January, and is in talks with eight to nine companies for long-term supply. HPCL has built a 5 million metric tonnes per year (mtpa) LNG import terminal at Chhara in western India, the country’s sixth, as New Delhi seeks to boost the use of the cleaner fuel. The company’s previous attempts to commission the plant in April failed due to bad weather. The company wants to use the three-month fair-weather window that begins in November to commission the LNG terminal. The terminal and related infrastructure, including pipeline connectivity for LNG sale, are completed and the plan is to commission the terminal in December-January. HPCL received "a good response" to its expression of interest seeking LNG supplies for 15 years. It is seeking one LNG cargo per month beginning from late 2026 or early 2027, priced on a Brent-linked basis. HPCL said in July it was seeking LNG deals as it expects to start its Chhara terminal by year-end. The LNG will meet requirements at its two existing refineries and a new 180,000 barrels per day (bpd) refinery and petrochemical project in the desert state of Rajasthan.
ONGC is looking to set up mini-LNG plants to evacuate natural gas from wells located in areas that are not connected with pipelines. The firm has identified five sites in Andhra Pradesh, Jharkhand and Gujarat for setting up the mini plants at wellhead that will convert the gas pumped out from under the ground into LNG by supercooling it to minus 160 degrees Celsius. This LNG will be loaded on cryogenic trucks and transported to the nearest pipeline where it will be reconverted into its gaseous state and pumped into the network for supply to users like power plants, fertilizer units or city gas retailers. ONGC has floated a tender, seeking manufacturers/service providers to tap stranded natural gas. The locations identified for setting up mini-LNG plants in the tender are two sites at Rajahmundry in Andhra Pradesh and one each at Ankleshwar in Gujarat, Bokaro in Jharkhand and Cambay in Gujarat.
LNG—used in cooking and in power plants and industries—leaves behind a greenhouse gas footprint about a third more than that of coal when looked at over a 20-year period, according to a new study. Over a 100-year period, LNG’s greenhouse gas footprint was found to be the same as or exceeding that of coal. Natural gas, an odourless gas primarily made up of methane, is cooled down to a liquid state at about minus 106 degrees Celsius to form liquefied natural gas, or LNG, thereby reducing the gas's original volume by 600 times. Being liquid, LNG can be shipped efficiently and safely. Although LNG is considered a cleaner, low-carbon alternative to coal, when processing and shipping are taken into account, its greenhouse gas footprint is about a third worse than that of coal. According to a draft policy by the Ministry of Petroleum and Natural Gas, India plans to fuel a third of its heavy duty trucks by LNG, instead of diesel, over the next five to seven years, to bring down pollution.
Gas Trade
As demand from the power sector slowed down, gas volumes traded on the Indian Gas Exchange (IGX) went down by 34 percent in September on a month-on-month basis. In September, the IGX traded ~3.1 mmBtu in gas volume. The all-India Plant Load Factor (PLF) of gas-based power stations stood at 14.01 percent in September, as the power demand scenario eased with extended monsoons across several parts of the country. Around 1.73 mmBtu of free market category gas was traded during the month, and about 1.4 mmBtU domestic ceiling price gas was traded at ceiling price (INR 828 or US$9.87 per mmBtu) at KG Basin and Gadimoga delivery points. Additionally, about 0.15 million mmBtu of domestic gas with complete pricing freedom was traded at the Bokaro and KG Basin delivery points. In Q2 of FY25, IGX’s total trade volume increased by 0.5 percent quarter-on-quarter to 11.8 million mmBtu. IGX currently offers trades at 15 delivery points.
Policy & Governance
The Petroleum and Natural Gas Regulatory Board (PNGRB) has unveiled an ambitious plan to enhance the natural gas infrastructure in South India by proposing a new Kochi-Kanyakumari-Thoothukudi Natural Gas Pipeline. PNGRB has commenced invitation for bids on a suo motu basis from interested and eligible entities to develop the Natural Gas Pipeline, adhering to established regulatory frameworks. Bidding commenced on 17 October 2024, and the last submission date is 18 February 2025. The pipeline will create a crucial link between the Kochi LNG terminal operated by Petronet LNG Limited and the Indian Oil Corporation Limited’s (IOC) Ennore-Thiruvallur Bengaluru-Nagapattinam-Madurai-Tuticorin pipeline at Thoothukudi. The proposed 425 kilometre (km) pipeline project aims to empower underserved regions, including Kanyakumari and its neighbouring districts in Kerala and Tamil Nadu, ensuring efficient access to natural gas for various sectors, particularly CGD entities. Under Regulation 5 of the PNGRB (Authorising Entities to Lay, Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008, the pipeline will have an initial capacity of at least 6 million cubic metres per day (m3/d). The project is expected to significantly contribute to completing the national gas grid, facilitating more equitable natural gas distribution across south India. The initiative aims to elevate natural gas’s share in the country’s energy mix from the current 6 percent to an impressive 15 percent by 2030. Natural gas, known for its cleaner-burning properties compared to oil and coal, is pivotal in addressing environmental challenges and meeting energy demands. PNGRB has authorised all mainland geographical areas to develop a CGD network to achieve this target. As of June 2024, 33,475 km of Natural Gas pipeline had been authorised, 24,921 km of which are operational, and 10,789 km are currently under various stages of construction.
Mahanagar Gas reported a 16.5 percent decline in second-quarter (Q2) profit, hurt by a surge in fuel costs. The state-backed natural gas distributor’s profit after tax fell to INR 2.83 billion (bn) (US$34 million) in the quarter ended 30 September from INR 3.39 bn a year earlier. Its revenue from operations rose 8.6 percent to INR 18.77 bn (US$219.6 mn), while total expenses rose 18 percent to INR 15.55 bn, owing to a 20 percent increase in natural gas costs. Indian city gas distribution firms' earnings have been under pressure as they are forced to procure gas on the more expensive open market. The allocation of natural gas sold under government-set pricing mechanisms has fallen due to lower domestic output.
Global
According to the International Energy Agency (IEA), the global gas balance remains "fragile" as limited LNG production growth keeps supply tight amid rising global demand. The IEA said that following the supply shocks of 2022-23, gas markets returned to more pronounced growth in 2024. While supply remains tight, geopolitical tensions continue to cause price volatility, the IEA said. Gas prices in Europe and Asia have remained volatile throughout 2024, reacting to events that could threaten supply, such as the Ukrainian incursion into Russia in early August. The IEA mentioned a recovery in Europe’s industrial gas demand, although it remains well below pre-crisis levels. In 2025, global gas demand is forecasted to increase by another 2.3 percent—or nearly 100 billion cubic metres (bcm)—again driven by Asia, which alone is expected to account for over half of incremental global gas demand. As per the IEA, with the gas supply remaining fundamentally tight, uncertainties weigh on the 2025 outlook. Global LNG supply growth remained weak in the first nine months of 2024, increasing by just 2 percent year on year. North America is expected to account for about 85 percent of global incremental LNG supply in 2025, with nearly three-quarters of these volumes coming from the United States.
Europe
According to the Norwegian oil and gas producer, Equinor, European gas prices are still subject to upward pressure due to rising demand in Asia and concerns over future supply of Russian gas and LNG. Demand for LNG in Asia, which is driving competition with Europe, and imports of Russian gas will also affect prices. Even with a normal winter, European gas storage sites should be around 40 percent full in April 2025, compared with 60 percent at the same time in 2024. European gas storage sites are currently around 95 percent full, according to data from Gas Infrastructure Europe.
German nationalised energy firm SEFE signed a long-term agreement with ConocoPhillips to purchase up to 9 bcm of natural gas over the next decade. Initial deliveries under the deal have already started, with gas supplied through various European trading hubs. ConocoPhillips, which sources gas from Norwegian production and LNG imports, will contribute to SEFE's annual demand of around 20 bcm.
An ExxonMobil-led consortium will move to the second phase of seismic research for gas exploration in a block off the Greek island of Crete, Greece said. According to Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), the consortium of ExxonMobil and Hellenic Energy have acquired a total of 7,789 kilometres (km) of two-dimensional seismic data in the "southwestern" block off Crete, compared to a required minimum of 3,250 km of 2D data needed for the project to proceed. As per the HEREMA, the consortium will now move to the second stage for the collection of three-dimensional seismic data in the area. That process will take three years and will determine the final decision for exploration drilling. Greece, which views gas as a transition fuel as it ramps up renewables, has produced small quantities of oil in the past and has renewed its efforts to explore its hydrocarbon potential following the 2022 energy crisis in Europe.
The TurkStream pipeline that ships Russian gas to Turkey via the Black Sea could help Europe cope with the expected loss of gas pumped via Ukraine, Hungarian Foreign Minister Peter Szijjarto said. A five-year deal between Kyiv and Moscow on Russian gas transit via Ukraine to Europe will expire on 31 December. An extension is seen as unlikely, given the military conflict between the two countries. Szijjarto said the loss of Russian gas routed via Ukraine will not hurt Hungary as the country receives Russian gas via the TurkStream pipeline. Russia shipped about 15 bcm of gas via Ukraine in 2023. That was equivalent to just 8 percent of peak Russian gas flows to Europe via various routes in 2018-2019.
Africa & Middle East
Egypt President Abdel Fattah al-Sisi met with Eni CEO (chief executive officer) Claudio Descalzi to discuss moves aimed at supporting gas production, the Italian energy group said, after the African country was forced to turn to the LNG market to cover domestic demand. The country had planned to become a major gas exporter after Eni discovered the giant Zohr offshore field in 2015, but domestic gas production in Egypt has been falling since 2021 to reach a six-year low this year. Average production at Zohr was 1.9 billion cubic feet per day in the first half of this year, well below the peak reached in 2019, fuelling speculation about technical issues and a halt in investment at the giant field. Egypt planned to issue a tender seeking up to 20 cargoes of LNG to meet requests for the first quarter of 2025.
Qatar is finding it hard to agree to new deals to supply LNG to Japan and South Korea, as rising competition from the US (United States) and elsewhere with more flexible contract terms challenges Doha's decades-old dominance of the market. Qatar was once the top LNG supplier to Japan and South Korea, but buyers are showing preference for supplies from the US, the United Arab Emirates (UAE) and Oman. Qatar’s major 4.92 mtpa deal to supply the Korea Gas Corporation (KOGAS) expires this year. Another 2.1 mtpa supply deal expires in 2026, official data showed. Japan’s LNG demand is falling due to nuclear reactor restarts, more renewable energy and a slowing economy. Imports fell to 66 million metric tonnes in 2023, from 83 tonnes in 2018, Japan customs data shows. QatarEnergy is working to sign deals to supply European and Asian buyers with fresh supplies of LNG expected to come onstream from its North Field expansion, which will boost its overall production by 85 percent. Chief Executive Saad Al-Kaabi said that he sees a bright future for LNG for at least 50 years, especially in Asia. Between 2022-2023, QatarEnergy agreed a series of 27-year deals to supply Chinese buyers with new gas from North Field. Taiwan and Kuwait have also signed up for more LNG since Qatar announced its latest expansion. Yet, little else has been sold. Analysts estimate around 48 percent of total Qatar LNG from North Field and its project in the US has no contract.
North and South America
The US government will award grants totaling US$196 mn for the repair and replacement of aging natural gas pipelines across 20 states, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration has announced. The grants, funded by President Joe Biden's Bipartisan Infrastructure Law, will support 60 modernisation projects.
According to the US Energy Information Administration (EIA), US natural gas production will decline in 2024, while demand will rise to a record high. EIA projected that dry gas production will ease from a record 103.8 billion cubic feet per day (bcfd) in 2023 to 103.5 bcfd in 2024, as several producers reduce drilling activities after average monthly spot gas prices at the Henry Hub benchmark fell to a 32-year low in March. In 2025, EIA projected output would rise to 104.6 bcfd. The latest projections for 2024 were higher than EIA’s forecasts in September of 103.4 bcfd for supply and 89.9 bcfd for consumption. The agency forecasted that average US LNG exports would reach 12.1 bcfd in 2024 and 13.8 bcfd in 2025, up from a record 11.9 bcfd in 2023.
Russia & the Far East
Russia plans to arrange ship-to-ship transfers of LNG and gas condensate in the Barents and Bering Seas to free up more ice-class tankers for its biggest LNG producer, Novatek, a draft project document showed. Novatek has been pressing ahead with its new Arctic LNG 2 project despite Western sanctions restricting access to the tankers it needs to carry LNG along the Northern Sea Route to Asian markets. Loadings of Russian LNG will be prohibited in EU (European Union) ports from March 2025. Novatek already uses the same scheme to perform ship-to-ship LNG transfers off the coast of Russia’s Murmansk region.
China
Cheniere Energy expects China’s gas demand to grow to more than 600 bcm by 2040 from 400 bcm. China will be the world’s first 100 mt LNG market very soon, with LNG accounting for about 25 percent to 30 percent of China’s overall gas demand mix, Yingying Zhou, director of LNG origination at Cheniere, said. China is the world’s largest importer of LNG. It imported 71.19 mt of LNG last year, according to the country’s customs data.
Rest of Asia-Pacific
Thailand power firm B.Grimm Power is seeking five to seven LNG cargoes for delivery in 2025 and 2026. Andrew Kirk, head of LNG business at B.Grimm Power, said the company will seek up to 1 million tonnes of LNG supply in a long-term deal after these initial short-term cargoes. B.Grimm was allocated an LNG import quota of 1.2 mtpa by Thailand’s Energy Regulatory Commission. It received its first spot cargo in August, and tendered for its third spot cargo for delivery in December. Kirk said that Thailand's LNG imports will increase in the coming years, as coal is phased out and domestic gas production declines. Thailand is Southeast Asia’s largest LNG importer. The country imported 11.69 mt of the fuel last year, according to data from the analytics firm Kpler. It shipped 10.18 mt of LNG so far this year.
Japan is considering stepping up purchases of LNG for emergency needs to at least 12 cargoes a year from three, the Ministry of Economy, Trade and Industry (METI) said. The reserve-boosting plan entails additional purchases by the world’s second biggest buyer of LNG after China, increasing its buys to at least 0.84 million tonnes (mt) of LNG per annum from 0.21 million. Japan is expanding its role as an LNG trader at a time of falling domestic demand overall for the fuel, but in a plan to boost energy security, it trades some cargoes that are not wanted at home during periods of weak demand. Australia is Japan’s top LNG supplier by far, but the Middle East, including Qatar and Oman, provided 14 percent of its August needs of the super-chilled gas, Japanese customs said, with Russia supplying another 10 percent. Japan has no underground gas storage but has LNG storage capacity of around 12 billion cubic metres, or just over a month of consumption, at its LNG receiving terminals, which number more than 30, the IEA said.
1 November: India’s petrol consumption soared 7.3 percent in October, on the back of increased demand from the start of the festive season but diesel sales were down 3.3 percent, preliminary data of state-owned firms showed. Petrol sales of three state-owned firms, which control 90 percent of the fuel market, rose to 3.1 million tonnes (MT) during October when compared to 2.87 MT of consumption in the same month last year. Diesel demand dropped 3.3 percent to 6.7 MT. While petrol sales were up mostly due to an increase in the use of personal vehicles as the festive season kicked in, diesel demand dropped due to lower demand from the agriculture sector, owing to the extended rainy season. Petrol and diesel sales have been tepid during the last few months as monsoon rains reduced vehicular movement and demand for the agriculture sector. Month-on-month petrol sales were up 7.8 percent when compared to 2.86 MT of consumption in September. Diesel demand was, however, almost 20 percent more than 5.59 MT of consumption in September.
1 November: Jet fuel, or ATF (aviation turbine fuel) price was hiked by 3.3 percent, and the rate of commercial LPG (liquefied petroleum gas) used in hotels and restaurants increased by INR 62 per 19 kilogram (kg) cylinder in the monthly revision done in line with international oil price trends. The ATF price was increased by INR 2,941.5 per kilolitre (kl), or 3.3 percent, to INR 90,538.72 per kl in the national capital, according to fuel retailers. The hike comes after two rounds of reduction that had taken the rates to their lowest this year. Commercial LPG costs INR 1,754.50 per 19-kg cylinder in Mumbai, INR 1,911.50 in Kolkata and INR 1,964.50 in Chennai. The rate for cooking gas used in domestic households, however, remained unchanged at INR 803 per 14.2-kg cylinder. The Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revise prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rates. Prices of petrol and diesel continue to remain frozen. Rates had been cut by INR 2 per litre in mid-March. Petrol costs INR 94.72 a litre in Delhi while diesel is priced at INR 87.62.
3 November: The Oil and Natural Gas Corporation (ONGC)’s third attempt to get a partner to rescue the Deen Dayal gas field in the KG basin in the Bay of Bengal has met with the same fate as previous efforts, getting no bids. The tender offering stake to technical and financial partners in the Deen Dayal field, which ONGC had acquired from a Gujarat government firm for US$1.2 billion, received no bids. The field has produced negligible quantities of gas since ONGC acquired Gujarat State Petroleum Corporation (GSPC)’s 80 percent interest in the KG-OSN-2001/3 block off the east coast of India in January 2017. The block contains the Deen Dayal West (DDW) gas/condensate field which was discovered by GSPC almost two decades back. The Gujarat government company had showcased the field as a promising prospect when it sold its stake to ONGC in order to cut its debt. The field, which was initially said to hold up to 20 trillion cubic feet of in-place gas reserves—by far the biggest in any deepsea field in the country—but later trimmed to a tenth, has proved to be tougher than anticipated.
1 November: Coal production rose by 7.4 percent to 84.45 million tonnes (MT) in October, compared to 78.57 MT in the corresponding month of the previous fiscal, the coal ministry said. Coal production from captive and other entities rose to 16.59 MT in October over 11.70 MT in the corresponding month of the previous fiscal. Coal dispatches witnessed a boost in October reaching 82.89 MT compared to 79.25 MT recorded in October last fiscal. In the April-October period of 2024-25, India's coal production rose by 6.1 percent to 537.45 MT compared to 506.56 MT in the corresponding period of the previous fiscal, the ministry said. Cumulative coal dispatch during the April-October period rose to 571.39 MT compared to 541.51 MT during the corresponding period in 2023-24.
1 November: In a recent report to the Meghalaya High Court, the BP Katakey Committee proposed critical measures to combat illegal coal mining in the state. The committee’s 25th interim report emphasises the need for technical and logistical support to seal the entrances of illegal coal mines using explosives. This action aims to prevent the reactivation of these mines, which pose significant environmental and safety risks. The committee has recommended conducting regular aerial surveys of areas known for illegal coal mining activities. These surveys would serve to monitor and identify any ongoing illegal operations, facilitating timely action under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957).
5 November: The Indian Energy Exchange (IEX) achieved an electricity traded volume of 9,642 MUs in October 2024, marking a 4 percent year-on-year increase, IEX said. The Day-Ahead Market (DAM) volume declined 7 percent to 4,388 MU in October, from 4,742 MUs volume in the same month last year. The Real-Time Electricity Market (RTM) achieved a monthly volume of 3,123 MUs in October 2024, compared to 2,402 MUs a year ago, a 30 percent increase.
4 November: India is overhauling the way it forecasts electricity demand to ensure generation capacity matches what’s needed, and the grid remains stable with increasing volumes of clean energy. The government’s Central Electricity Authority (CEA) is seeking cooperation with weather agencies to access better environmental data and plan more frequent forecasts to account for unexpected events. Changing power usage patterns, the rising use of intermittent solar and wind energy, and increasingly frequent extreme weather events have complicated demand forecasting, requiring systemic reforms. Gauging future demand more precisely has become imperative to prevent supply-demand mismatches, keep costs in check for utilities and to prevent blackouts. Demand assessments at a national level are based on aggregation from state distribution utilities, since more than 80 percent of the country’s electricity is traded through them.
1 November: India’s power consumption rose marginally by about 1 percent to 140.47 billion units (BUs) in October compared to a year ago, mainly due to a heavier base effect. In the year-ago period, power consumption grew by over 22 percent to 139.44 BUs from 113.94 BUs in October 2022. The highest supply in a day (peak power demand met) dipped to 219.22 gigawatt (GW) in October 2024 from 221.53 GW in the year-ago month. The peak power demand touched an all-time high of about 250 GW in May this year. The previous all-time high peak power demand of 243.27 GW was recorded in September 2023. Earlier this year, the power ministry projected a peak power demand of 235 GW during the day and 225 GW during evening hours for May, with 240 GW during daytime and 235 GW in the evening hours for June. The ministry also estimated that peak power demand may hit 260 GW this summer.
5 November: The Ministry of New and Renewable Energy (MNRE) has approved 50 solar parks with a total capacity of nearly 37.5 gigawatts (GW), Union Minister Pralhad Joshi announced. While addressing the seventh General Assembly of the International Solar Alliance, he outlined India’s ambitious renewable energy targets, which included identifying potential offshore wind energy sites to reach 30 GW capacity by 2030. He said that India reached an impressive 90 GW of installed solar capacity, moving steadily toward its broader goal of 500 GW renewable energy capacity by 2030. India is setting its sights on new horizons, with a target to produce 5 million metric tonnes of green hydrogen by 2030, supported by 125 GW of renewable energy capacity, he said.
4 November: Uttar Pradesh (UP) is planning to set up floating solar power plants in partnership with top energy players, including NTPC Ltd, to expand its renewable energy inventory. The state is targeting 14,000 megawatt (MW) solar power generation by 2027. The state has already received new renewable energy investment proposals of INR 7 trillion, of which INR 570 billion worth of projects came under the UP State Bio-Energy Policy 2022. The Yogi Adityanath government is also mulling over large-scale solar energy projects, including solar parks with a combined capacity of 4,800 MW, with the tendering process underway. To make UP self-sufficient in energy production within three years, the state has set a target to connect 2.5 million households to solar energy under the “PM Surya Ghar Yojana”. So far, 48,000 houses have been equipped with solar panels with another 30,000 expected to be covered by the end of the current financial year 2024-25.
4 November: NTPC Ltd and the Oil and Natural Gas Corporation (ONGC) announced the formation of a 50:50 joint venture company (JVC) to further promote their interests in the renewable and new energy arena. The JVC between the country’s largest power generating company and largest oil and gas producer has been formed through their green energy subsidiaries—NTPC Green Energy Ltd (NGEL) and ONGC Green Energy Ltd. The new company will venture into various renewable energy and new energy opportunities, including solar and wind energy, both onshore and offshore, and green molecules such as green hydrogen, green ammonia, sustainable aviation fuel, and green methanol.
2 November: India has, since 2010, made noteworthy progress on fossil fuel subsidy reforms through a calibrated “remove”, “target”, and “shift” approach, the Asian Development Bank (ADB) said in a new report. ADB said India gradually phased out the subsidy on petrol and diesel (from 2010 to 2014) and carried out incremental tax increases (from 2010 to 2017), which created fiscal space to increase government support for renewable energy, electric vehicles, and strengthening electricity infrastructure. From 2010 to 2017, Government of India introduced a cess (tax) on coal production and imports. Around 30 percent of the cess collections were channelled to a national clean energy and environment fund that supported clean energy projects and research.
1 November: The Thiruvananthapuram Municipal Corporation has been chosen for the Global Award for Sustainable Development in Cities, an initiative led by the United Nations Human Settlements Programme (UN Habitat) and the Shanghai Municipality. The award is meant for recognising the outstanding progress and achievements of cities and municipalities around the world in the implementation of the new urban agendas for sustainable urban development. A total of five global cities were chosen for the award. The other cities to win the award this year are Agadir (Morocco), Melbourne (Australia), Doha (Qatar) and Iztapalapa (Mexico). Thiruvananthapuram is the first Indian city to win the award.
4 November: The difference in prices for US (United States) shale oil in West Texas and at Houston has widened in the last two months on account of dwindling pipeline space to move the crude to the export hub on the Gulf Coast, pricing data showed. Record crude production at the top US oilfield in the Permian basin that straddles Texas and New Mexico, combined with export demand for its light sweet crude due to a shortfall of the grade from OPEC (Organisation of the Petroleum Exporting Countries) member Libya has about tripled the price difference from last year’s average.
3 November: OPEC+ has agreed to delay a planned December oil output increase by one month, the group said on Sunday, as weak demand, notably from China, and rising supply outside the group maintain downward pressure on the oil market. Eight members of OPEC+, which groups the Organisation of the Petroleum Exporting Countries (OPEC) plus Russia and other allies, were due to raise output in December as part of a plan to gradually unwind the group's most recent layer of output curbs—a cut of 2.2 million barrels per day (bpd). The eight countries decided to extend the 2.2 million bpd cut for a month until the end of December, OPEC said. Oil prices closed on Friday just above US$73 a barrel, supported in part by the prospect of a further delay to the OPEC+ increase. Even so, Brent crude is still not far from its lowest levels this year of below US$69, reached in September.
1 November: Top oil exporter Saudi Arabia may cut prices for most of the crude grades it sells to Asia in December, tracking weakness in Middle East benchmark Dubai, traders said. Price cuts for Saudi oil would signal weak demand and provide more evidence for the OPEC+ to potentially delay plans to increase production from December. The official selling price (OSP) for flagship Arab Light crude may fall by 30 to 50 cents a barrel in December from the previous month, a Reuters survey of six refining sources showed, in line with a similar drop in Dubai price spreads last month. Spot premiums for Middle East crude fell last month as the Asia market was well supplied, while demand from key buyers such as China remained lacklustre despite a rebound in refining margins.
31 October: United States (US) oil production rose 1.5 percent in August to a monthly record high of 13.4 million barrels per day (bpd), the US Energy Information Administration (EIA) said. That topped the prior record high of 13.31 million bpd in December 2023. With regards to top oil-producing states, output in Texas rose 1.7 percent in August to a record 5.82 million bpd, while New Mexico’s output increased 2.8 percent to a record 2.09 million bpd. That compared with previous record highs of 5.76 million bpd in June in Texas and 2.04 million bpd in July in New Mexico. Gross natural gas production in the US Lower 48 states, meanwhile, eased by about 0.6 percent in August to 115.9 billion cubic feet per day (bcfd), according to the EIA. That compared with a monthly record high of 118.2 bcfd in December 2023. US crude and petroleum products supplied, or demand, rose in August to 20.7 million bpd, the highest reading since May, according to the EIA’s data.
31 October: The Druzhba pipeline will remain Hungary’s primary route for crude oil imports, Foreign Minister Péter Szijjártó said. The pipeline transports Russian crude oil through Belarus and Ukraine to Hungary and also Slovakia. Supplies resumed to Hungary’s energy company MOL’s refineries after a halt to shipments following Kyiv's addition of Russian company Lukoil to a sanctions list in June. Together with Slovakia and the Czech Republic, it has been granted an exclusion from a European Union (EU) embargo on Russian oil due to its lack of alternatives, but the EU has urged it to diversify its resources. Szijjarto said that Hungary has received 3.9 million metric tonnes of crude through the Druzhba pipeline and "shipments are continuous". Szijjarto said Hungary also received 6.2 billion cubic metres of Russian gas via Turkstream so far this year.
4 November: Guyana and Suriname could supply 12 million metric tonnes of liquefied natural gas (LNG) annually at a competitive price by the next decade, according to a report by Wood Mackenzie. LNG demand is expected to spike by the end of the decade as industries switch from highly polluting coal to gas, which can cut greenhouse gas emissions by as much as half. Guyana and its neighbour Suriname have emerged as hotbeds for oil and gas exploration, with energy majors such as Exxon Mobil and TotalEnergies, committing billions of dollars for new projects. Suriname’s offshore Block 52 and Guyana's offshore Haimara cluster are estimated to hold 13 trillion cubic feet (tcf) of discovered non-associated gas, according to the report. Non-associated gas refers to natural gas sourced from a conventional gas field which has no crude oil or has such minimal amounts that it cannot be economically extracted.
4 November: China’s state oil and gas major Sinopec Corp said it has signed Heads of Agreement to buy two million metric tonnes of liquefied natural gas (LNG) a year from TotalEnergies for 15 years starting 2028. The deal, signed in Shanghai at the China International Import Expo, is a step forward from a strategic alliance the companies agreed in May, Sinopec said.
4 November: US (United States) energy company Glenfarne Group LLC said it had selected construction contractor Kiewit to build its proposed Texas LNG export terminal in Brownsville. The proposed terminal has the capacity to turn about 0.5 billion cubic feet per day (bcfd) of natural gas into 4 million tonnes per annum of liquefied natural gas. Glenfarne said it would work with Kiewit to meet the requirements needed to achieve a final investment decision (FID). The company was expected to begin construction by November 2024 and commercial operations by 2028. However, in May it asked federal energy regulators to give it until 2029 to put its plant into service.
1 November: Japanese trading house Mitsubishi sees its liquefied natural gas (LNG) output capacity growing by 5 million metric tonnes per year to over 17 million tonnes (MT) early in the 2030s, thanks to its stakes in projects, including those in Malaysia and Canada. Mitsubishi is a shareholder in 12 LNG projects in Brunei, Malaysia, Australia, Oman, Russia, Indonesia, the US (United States) and Canada, with a total output capacity of 110.4 MT per year, an earnings presentation by the company showed. LNG Canada is due to ship its first cargo by mid-2025, but all the other projects are producing gas. That will increase Mitsubishi’s LNG production capacity to 14 MT per year next year from 12 MT per year.
1 November: European companies are not nearing a deal to replace Russian gas imports via Ukraine, with supply from Azerbaijan, Slovak state-owned gas buyer SPP said. The current five-year deal between Moscow and Kyiv on Russian gas exports via Ukraine to Europe expires at the end of the year, forcing the European Union to search for alternative sources of gas, including from Azerbaijan, while engaging in talks to keep the route open.
31 October: United States (US) liquefied natural gas (LNG) exports this year will rise about 2 percent, analysts estimate, the smallest annual increase since 2016, when the first big US LNG export plant opened, launching a boom that drove the country’s producers to the top of world gas exporters. Slower gains reflect delays and production outages, and the absence of a new facility since March 2022 when Venture Global LNG started up its Calcasieu Pass project in Louisiana. This year’s 2 percent increase in export volumes to 12.1 billion cubic feet per day (bcfd) is down 12 percent from last year and the average growth rate of 43 percent between 2018 and 2022, according to data from the US Energy Information Administration. The dollar value of US exports reached a peak of US$47.33 billion in 2022, when prices skyrocketed after Russia's invasion of Ukraine. Prices eased and last year’s US exports were valued at US$34.27 billion, according to US government data. US LNG capacity could more than double over the next four years, rising to around 17.8 bcfd next year, 20.6 bcfd in 2026, and reach 24.5 bcfd in 2028, analysts estimate. The seven big LNG export plants are capable of turning around 13.8 bcfd of natural gas into LNG for export. Since 2023 the US has been the world’s largest exporter of the superchilled gas.
31 October: Australia’s Origin Energy reported a sequential rise in its first-quarter revenue from its stake in the Australia Pacific LNG (APLNG) project, underpinned by strong natural gas sales and higher prices. LNG prices rose during the reported quarter, helped by warm weather conditions in Asia driving increased energy requirements, although prices have moderated in recent times amid tepid demand. LNG sales at the APLNG project rose by 4 percent from the previous quarter to 36.3 petajoules (PJ), the Australia-based company said, adding that its total production share from the project still fell 1 percent sequentially to 47.7 PJ.
30 October: British utility Centrica and US (United States) producer Coterra Energy have entered into two gas sale and purchase agreements, which will reduce market risk in Centrica’s liquefied natural gas (LNG) portfolio, Centrica said. Under the contracts, Coterra will supply 100,000 million metric British thermal units (mmBtu) per day of natural gas linked to European gas prices, such as the Dutch TTF (Title Transfer Facility) and British NBP (National Balancing Point hubs, for a period of 10 years commencing in 2028, Centrica said.
1 November: Costs and reliability concerns related to the burgeoning trend of building energy-intensive data centers next to US (United States) power plants were the focus of a technical conference held on Friday by the Federal Energy Regulatory Commission. As the technology industry races to deploy data centers for technologies like generative artificial intelligence (GenAI), quickly accessing the massive amounts of electricity for the centers has become a critical problem. Connecting data centers directly to power plants, in an arrangement known as co-location, has presented a fast route to accessing large amounts of electricity, instead of toiling for years in queues to connect to the broader grid.
31 October: US (United States) utility WEC Energy beat third-quarter profit estimates, as the utility firm benefited from an increase in residential power usage during summer months and lower operational costs. The company provides electricity and gas to nearly 4.7 million customers in Wisconsin, Illinois, Michigan and Minnesota. Residential power use rose 1.3 percent during the quarter and electricity consumption by small commercial and industrial customers rose 1 percent over the year earlier.
31 October: Japan’s Electric Power Development (J-Power) said it has decided to sell its 50 percent stake in a US (United States) gas-fired power company as part of a reshuffle in its assets portfolio to improve capital efficiency. The Japanese utility will sell the stake, held by US subsidiaries, in Tenaska Frontier Partners, which operates an 830 megawatt (MW) gas-fired power station in Texas, to investment fund ACR IV Frontier Holdings for US$155 million. J-Power expects to book US$93 million in investment income upon the transfer, though it is unclear if this will be reflected in the current or next fiscal year, the company said. In June, J-Power said it would divest its 50 percent stake in another US gas-fired power generator, Green Country Energy, which operates a 795 megawatt (MW) gas power station in Oklahoma, selling it to Public Service Company of Oklahoma, a subsidiary of American Electric Power, for an undisclosed sum.
30 October: Larsen & Toubro (L&T)’s Power Transmission & Distribution (PT&D) vertical won new 'major' orders in the Middle East and Africa for expanding and strengthening the electricity grids at high-voltage levels. The orders include the implementation of an energy management system for a country-wide electricity network. One of the orders that the business vertical has won, is in consortium with a leading original equipment manufacturer to build the new National System Control Centre for Kenya. The transmission hub will manage the power flow in the country by integrating diverse generation sources and by despatching power based on merit order. The hub will be a crucial element in Kenyas grid for ensuring stable, efficient and reliable operations, in view of variable renewable energy sources getting added, and the high-voltage regional interconnections being established. The scope also involves the implementation of a back-up energy management system at a distant location. In the Middle East, new orders have been secured for the turnkey construction of high-voltage transmission lines in Saudi Arabia. Additional Gas Insulated Substation orders have been received in an ongoing power system expansion project in Qatar.
5 November: Britain faces a huge challenge to meet its goal of decarbonising the electricity system by 2030 with rapid reform required, the country’s National Energy System Operator (NESO) said in a report for the government. The decarbonisation target, which will mean moving away from fossil fuels, with a rapid increase in wind and solar power, is part of Britain's efforts to reach its wider climate goals. The government asked the NESO to provide advice on how the power target can be met. Britain will need to contract more offshore wind capacity in its next two annual renewable auctions than it has done in the previous six, building an additional 28-35 gigawatts (GW) by 2030. A more than doubling of onshore wind capacity is needed, to 27 GW from 13 GW now, while solar capacity will need to triple to 47 GW from 15 GW, the report said. The NESO said moving to cleaner power would not increase the overall cost of Britain’s energy system and that it will help protect the country from future fossil fuel price shocks.
4 November: Some of the biggest Chinese-owned solar factories in Vietnam are cutting production and laying off workers, spurred on by the expansion of US trade tariffs targeting it and three other Southeast Asian countries. Meanwhile, in nearby Indonesia and Laos, a slew of new Chinese-owned solar plants are popping up, out of reach for Washington’s trade protections. Their planned capacity is enough to supply about half the panels installed in the US last year. Chinese solar firms have repeatedly shrunk output in existing hubs while building new factories in other countries, allowing them to sidestep tariffs and dominate the US and global markets despite successive waves of United States (US) tariffs over more than a decade designed to rein them in. While Chinese firms have been moving their solar manufacturing for years, the scope of the shift to Indonesia and Laos in this latest phase has not previously been reported. More than a dozen people in five countries, including employees at Chinese plants, officials at non-Chinese solar companies and lawyers were interviewed for this article. China accounts for about 80 percent of the world’s solar shipments, while its export hubs elsewhere in Asia make up much of the rest, according to SPV Market Research. America’s imports of solar supplies, meanwhile, have tripled since Washington began imposing its tariffs in 2012, hitting a record US$15 billion last year, according to federal data. While almost none came directly from China in 2023, some 80 percent came from Vietnam, Thailand, Malaysia and Cambodia—home to factories owned by Chinese firms. Washington slapped tariffs on solar exports from those four Southeast Asia nations last year and expanded them in October, following complaints from manufacturers in the US. Over the last 18 months, at least four Chinese or China-linked projects have begun operations in Indonesia and Laos, and another two have been announced. Together, the projects total 22.9 gigawatts (GW) in solar cell or panel capacity.
4 November: The Canadian government released draft regulations that would cap the emissions of greenhouse gases from the oil and gas (O&G) sector at 35 percent below 2019 levels by 2030, drawing condemnation from the industry that said it will force a production cut. Oil and gas is Canada’s highest-polluting industry and its emissions continue to rise, undercutting progress in many other parts of the economy. Ottawa will likely fall short of its commitment to reduce emissions by 40-45 percent from 2005 levels by 2030, unless the oil and gas sector intensifies efforts to decarbonise. Ottawa said oil and gas production is still expected to grow 16 percent from 2019 levels by 2030-2032 even with the emissions cap in place, and there would only be a 0.1 percent reduction in Canadian gross domestic product (GDP) as a result. Producers will be required to start reporting their emissions from 2026, and the first three-year compliance period will run from 2030 to 2032.
31 October: Spanish oil company Repsol is working on more deals in its renewable operations in Spain and the US (United States), while it also seeks a solution for its exploration and production businesses in the North Sea, chief executive officer (CEO) Josu Jon Imaz said. Repsol’s strategy has been focused on selling minority stakes in renewable projects to help fund the expansion of green energy and biofuel capacity ,while focusing its upstream business on key markets like the US. The company expects the divestment of stakes in renewable projects in the US and Spain, with an overall impact on its debt of some 1.4 billion euros (US$1.52 billion), to close by the end of the year or early next year, the CEO said. This includes the 637 megawatt (MW) Frye Solar project in Texas and two solar plants in New Mexico with a total capacity of 125 MW, he said, as well as two portfolios of Spanish green assets between 400 and 500 MW each.
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