Month: February 2025

Oil smuggling remains highly profitable despite sanctions on Russia, Iran, and Venezuela, which together produce about 16 million barrels per day at a discount. Western sanctions create obstacles but fail to halt illicit trading. Smugglers continually find ways to circumvent restrictions, with non-Western countries still purchasing sanctioned oil, and the political will to enforce stricter measures is weak.

Petronet LNG’s underutilized Kochi terminal highlights India’s struggle to reduce coal reliance due to infrastructure issues, high gas prices, and regulatory challenges. Despite Modi’s push for increased gas use, the share remains stagnant. Significant investment in pipelines and terminals is crucial to achieving the 2030 target of 15% gas in the energy mix and mitigating carbon emissions.

Indian Oil is purchasing Russian crude oil cargoes without involving sanctioned entities. The company predicts gasoline and diesel demand growth by the fiscal year 2026 and foresees weak petrochemical margins in 2025. Expansion of the Panipat refinery is expected by June 2026, while the construction of the Nagapattinam refinery awaits approval.

Adani Power has been asked by Bangladesh to fully resume power supply from its 1600 MW plant in India after a period of reduced sales due to payment disputes and low winter demand. Bangladesh is making payments to settle overdue amounts. The country’s court has ordered a review of the power contract, possibly leading to renegotiations.

NTPC Ltd., India’s largest power producer, is discussing technology cooperation with multiple international firms to expand its nuclear energy capacity by 10 GW by 2033. The company is targeting both small modular reactors and larger ones as part of India’s decarbonization efforts, with ongoing talks including EDF, Holtec, and Rosatom.

Hindustan Petroleum plans to increase the capacity of its Vizag oil refinery by 20% to meet rising local fuel demand. The company will also start operations at Vizag’s new units to improve yield and margins while building a petrochemical plant at its Barmer refinery to enhance petrochemical conversion.

Oil and Natural Gas Corporation (ONGC) has signed a MoU with BP to explore collaboration in oil and gas projects in India and abroad. The partnership will focus on enhancing production, trading, and exploring new energy vectors. This collaboration aims to boost ONGC’s output, optimize management of fields, and create value in additional energy vectors such as carbon sequestration.

India is expanding its crude oil import sources, now sourcing from 40 countries, including the recent addition of Argentina. The Petroleum Minister emphasized the dynamic nature of imports, influenced by price and proximity advantages. With over 80% of crude oil reliant on imports, India is also promoting natural gas and alternative fuels to boost domestic production and reduce dependency.

India will begin licensing rounds for oil and gas blocks this week, Oil Minister Hardeep S. Puri announced. He expressed hope that energy supply issues would be discussed during Prime Minister Modi’s upcoming meeting with U.S. President Trump, stating, “I will be surprised if energy sourcing is not part of the discussion.”

Plans for refining capacity in Ratnagiri are being restructured into smaller units, with potential collaborations from Saudi Aramco and ADNOC. The Maharashtra government will continue to support electric vehicles, and infrastructure projects like the Nagpur-Mumbai Expressway and rapid rail developments are set to advance.