Page 5 - AsianOil Week 09 2021

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India calls on OPEC+ to ease production cuts

POLICY THE Indian government has once again called
on OPEC+ to walk back production cuts in the
name of stabilising oil prices, similarly warning
that if prices did not come down then the coun-
try would seek alternative energy supplies.
Indian Minister of Petroleum and Natural
Gas Dharmendra Pradhan called on the oil usual. But I am sorry to say the production is yet
cartel this week to help deliver on its promises to be normal. If you do not supply properly, if
of “reasonable and responsible” oil prices, PTI there is a gap in demand and supply artificially
reported on March 4. [created], there is a price rise.”
Pradhan, speaking at IHS Markit’s CER- Pradhan added: “It may suit some of our
AWeek conference, said: “I never supported [last [producing] friends but in emerging coun-
year’s] price collapse and India supported pro- tries like India, [where] our fiscal scope is very
duction cuts. But today we expect the produc- challenging... we need a reasonable price of our
ing countries, especially OPEC and its friendly energy, responsible price of energy.”
countries, should do business as usual and The official reiterated a previous warning that
[do] what they had promised. And out of that, if prices did not ease then India would have no
responsible, reasonable price will come, which choice but to look for alternative energy supplies.
is not today.” Pradhan protested in January against Saudi
Benchmark crude prices this year have Arabia’s decision to cut 1mn bpd of crude pro-
rebounded to more $64 per barrel from the sub- duction in February and March even as other
$20 per barrel low seen in April 2020. The surge OPEC+ members failed to plug the gap.
in crude prices, coupled with the government’s The minister described the move on Janu-
unwillingness to remove tax hikes on gasoline ary 19 as a “contradiction” during his talks with
and diesel that were introduced when crude was OPEC Secretary-General Mohammad Barkindo
cheap, has led to soaring domestic fuel prices. at the Atlantic Council. Pradhan said the policy
Pradhan said: “At that point in time, the pro- was “creating confusion for the consuming coun-
ducers especially OPEC assured the global mar- tries”, before adding that OPEC’s decision might
ket that by the beginning of the 2021 demand encourage India and other buyers to embrace
will be coming back and production will be as alternative energy sources more readily.™

IOC plans Panipat refinery expansion

PROJECTS & STATE-RUN refiner Indian Oil Corp. (IOC) has while also improving the quality of the fuels,
COMPANIES unveiled a multi-billion-dollar plan to expand lubricants and specialty products it produces.
the capacity of its Panipat refinery by 200,000 The land, which is adjacent to the refinery, is
barrels per day. currently being leased by Hindustan Fertilizers
The company said on February 26 that it Corporation Ltd (HFCL) from Syama Prasad
would invest INR329.46bn ($4.49bn) to increase Mookerjee (SMP) Port Trust. Pradhan wrote
the facility’s capacity to 500,000 bpd by Septem- to the Minister of Chemicals and Fertilizers D
ber 2024. IOC also intends to install catalytic V Sadanand Gowda and Minister of State for
dewaxing and polypropylene units at the facility. Ports, Shipping & Waterways Mansukh Man-
The country’s largest refiner said the expansion daviya saying that the Haldia expansion would
would expand petrochemicals and value-added improve the country’s oil product self-reliance.
product production, helping to boost margins and He added that Haldia’s ability to upgrade its
to “de-risk” its conventional fuel business. facilities to meet Bharat Stage VI standards had
In addition to the Panipat refinery expan- been hampered by space constraints, noting that
sion the company is also trying to secure land to IOC had been forced to dismantle pre-existing
expand its Haldia refinery. storage tanks in order to carry out modernisa-
IOC said on February 26 that Indian Min- tion work.
ister of Petroleum and Natural Gas Dharmen- IOC’s expansion efforts are in line with the
dra Pradhan had called on other government Indian government’s stated goal of doubling
departments to help the refiner secure 175 acres current national refining capacity of 5mn bpd
(70.8 hectares) of land for the project. The down- by 2030. New Delhi wants to stimulate a domes-
stream operator intends to upgrade Haldia’s tic manufacturing renaissance, which is in turn
crude processing capacity from 2.5mn tonnes expected to stimulate local demand for high
per year (50,000 bpd) to 8mn tpy (160,000 bpd), quality fuels and specialty products.™

Week 09 04•March•2021 www. NEWSBASE .com P5