Page 8 - AsianOil Week 10 2021

AsianOil SOUTH ASIA AsianOil

India’s LPG penetration almost 100%

PERFORMANCE INDIA has extended liquid petroleum gas (LPG) quarter of fiscal 2020-2021. In addition to the
access to almost all of its 1.37bn citizens, state- expanding network, however, government ini-
owned Indian Oil Corp. (IOC) announced this tiatives aimed at helping BPL families pay for
week. their LPG during the coronavirus (COVID-19)
The company said on March 10 that LPG pandemic have also helped to stimulate demand.
penetration had expanded from 55% in 2014 IOC said the uptick in demand had contin-
to more than 99%. Increasing the availability ued into the December-February quarter, with
of LPG to the country’s residents has been one national LPG consumption climbing by 7.3%
of the government’s key development drives in year on year. National demand in the 11 months
recent years, as it strives to wean the population to February, meanwhile, expanded by 10.3% y/y.
off dirtier-burning coal and biomass fuels. The state company said LPG consumption by
New Delhi launched the Pradhan Mantri PMUY customers grew by 19.5% in the Decem-
Ujjwala Yojana (PMUY) social welfare scheme ber-February quarter to 1mn tonnes.
in May 2016, with the goal of reducing rural Hailing the importance of switching from
emissions by providing concessional LPG con- traditional biomass fuels such wood, IOC said:
nections to below poverty line (BPL) families. “While the upfront per kg cost of firewood is
IOC said this week that as part of that initia- cheaper, LPG is a more economical fuel in the
tive the oil and gas industry had provided 80mn long run when costs such as total volume of
LPG connections to PMUY beneficiaries across fuel consumed and handling costs are factored
the country thanks to INR128bn ($1.76bn) in in. Even at the current rates, LPG is cheaper
government funding. than firewood/other traditional fuels in many
Demand has picked up in line with the num- states, largely on account of its overall heating
ber of connections, with IOC noting that LPG efficiency.”™
consumption had surged 23.2% in the first

EAST ASIA

China Gas, Sinopec forge deeper ties

PROJECTS & NATURAL gas distributor China Gas has agreed recharging pole joint stations, LNG distribution
COMPANIES to forge a closer working relationship with state- warehouse and relevant logistics system, as well
owned Sinopec Group in the natural gas import as jointly develop initiatives in the transporta-
and distribution segments. tion energy business”.
The privately owned infrastructure operator China Gas said it would work with Sinopec to
said on March 4 that the two had signed a stra- establish a national association of LPG import-
tegic co-operation framework agreement that ers, co-ordinate external procurement of the
would mainly focus on natural gas, liquefied nat- fuel and push for the creation of a Chinese LPG
ural gas (LNG) and liquid petroleum gas (LPG). import price index.
The two firms intend to establish a gas trad- China Gas will allow Sinopec to rent and use
ing company as well as a joint venture to han- its LPG terminals and storage facilities in order
dle downstream gas interests and investments. to support the state major’s onshore LPG busi-
China Gas said the trading company would buy ness. The two sides will also conduct joint feasi-
gas on its behalf from Sinopec, while the joint bility studies into building LPG storage capacity
venture would handle the merger and acqui- in coastal and riverine areas as well as working
sition (M&A) of downstream gas companies together to supply LPG consumers.
as well as the acquisition of new downstream China Gas chairman and president Liu Ming
gas project concession rights. China Gas said Hui said the agreement would help his company
it would “tentatively control” the downstream to ramp up its LNG imports as it strives to diver-
joint venture. sify its supplies and lower its gas purchase costs.
In the LNG space, Sinopec is expected to He added: “The comprehensive co-opera-
invest in the two companies’ newly established tion … will strengthen [China Gas’] extensive
LNG receiving terminal projects, with China deployment in the upstream, midstream and
Gas noting that the investment would help it to downstream of LPG, greatly promoting the
realise its import strategy more quickly. utilisation rate of assets such as terminals and
China Gas said its focus on local gas distri- storage areas, and realise the rapid development
bution, storage and sales would synergise with of trading and terminals, terminals and our new
Sinopec’s infrastructure network, allowing the Smart MicroGrid business as we embark on its
two companies to co-operate in developing “gas/ full value-chain development.”™

P8 www. NEWSBASE .com Week 10 11•March•2021