Abu Dhabi’s ADNOC Gas recently announced a 14-year $7 billion-$9 billion deal with Indian Oil Corporation to export 1.2 million metric tonnes of liquefied natural gas (LNG) per year. India’s trade treaty with the UAE enables it to import LNG without paying a 2.5% import tax. A Head of Agreement (HoA) was also signed between Indian Oil Corporation and France’s TotalEnergies to establish a long-term LNG sale and purchase agreement (SPA) for the import of 0.8 million tonnes a year of LNG for 10 years starting in 2026.
Govt plans ₹6,000 crore coal gasification scheme by 2030: Coal ministry
In an official statement, the Ministry of Coal announced that the government is considering a ₹6,000 crore scheme to promote coal gasification in India. It has set a target to gasify 100 million tonnes of coal by the financial year 2030 to reduce reliance on imported natural gas, methanol, ammonia and other key products. The plan has two segments—in the first segment, the government will provide support to PSUs, and in the second segment to both the private sector and PSUs, with a budget allocation granted to each project.
CIL plans two new thermal power plants in Madhya Pradesh and Odisha at an expense of ₹21,547 cr
State-run Coal India Ltd (CIL) announced plans to set up two new thermal power plants – one each in Madhya Pradesh (near Amarkantak) and Odisha (Sundergarh district). The power plant in Madhya Pradesh, in the final stages of approval, will carry a capacity of 660MW and will be built at a cost of ₹5,660 crore. The one in Odisha is planned as a 2×800 MW pithead thermal power plant and will cost just under ₹16,000 crore. Notwithstanding the new planned coal investments, CIL is reportedly mulling dropping “coal” from its name to project a cleaner image.
IEA cuts 2023 oil demand forecast due to persistent macroeconomic headwinds
The International Energy Agency (IEA) cut its global oil demand growth forecast for the first time this year, primarily citing a weakening economic condition. In its latest monthly oil market report, the world’s leading energy watchdog said that global oil demand is now on track to climb by 2.2 million barrels per day in 2023 to reach an average of 102.1 million barrels per day. But “persistent macroeconomic headwinds, apparent in a deepening manufacturing slump, have led us to revise our 2023 growth estimate lower for the first time this year, by 220,000 barrels per day”, said IEA. China is set to account for 70% of the demand growth increase, while OECD consumption is predicted to remain anaemic. Looking ahead to next year, the IEA expects demand growth to slow to 1.1 million barrels per day.
TotalEnergies East African oil project will disrupt ecosystems
A Human Rights Watch report found that an oil pipeline under construction in East Africa will disturb some of the continent’s most sensitive ecosystems and exacerbate the global climate crisis. The East Africa Crude Oil Pipeline (EACOP) is one of the most significant fossil fuel infrastructure projects currently under development globally, connecting the Tilenga and Kingfisher oilfields in western Uganda with the port of Tanga in eastern Tanzania. It is estimated to release 379 million tonnes of carbon dioxide equivalent (CO2E)—more than the annual emissions of Australia. If completed, the pipeline will run through 178 villages in Uganda and 231 villages in Tanzania and over 100,000 people will permanently lose land to make way for the pipeline. French fossil fuel giant TotalEnergies is the principal company involved through its two East African subsidiaries, TotalEnergies EP Uganda, and TotalEnergies East Africa Midstream.
Oil and gas company lobbyists attended secret shipping climate talks
Lobbyists from oil and gas companies like Shell, BP, Equinor, ExxonMobil and Saudi Aramco are believed to have joined government negotiators at International Maritime Organization (IMO) talks on how to cut emissions from the shipping sector. At the week-long meeting in London, governments agreed to target net zero “by or around, i.e. close to 20%” and cut emissions by 20% by 2030 and 70% by 2040, compared to 2008 levels. Shipping uses the dirtiest part of a barrel of oil to fuel its vessels and oil companies are likely to struggle to sell that part elsewhere if the industry moves to cleaner fuels.
India plans to build $1.46 billion industrial water transport corridor
According to a Reuters report, Coal India Ltd, are considering investing up to $1.46 billion to set up an industrial water transport corridor in Odisha. The plan by Coal India, Paradip Port Authority and the Inland Waterways Authority of India could potentially carry 12 to 15 million tonnes of cargo by 2030 and would connect two ports in the eastern state via the Brahmi river.
India evaluating option of building gas storage: Oil Secretary
The government is evaluating the option of building storage for natural gas in case of supply disruptions. Last year, the country had to ration gas to fertiliser and other sectors after imports under a deal with Russia were affected due to the Russia-Ukraine war. India would probably seek help from foreign companies for building gas storage and the modalities would be worked out after a feasibility study.