Month: April 2025

India’s ONGC faces declining natural gas production from aging fields, impacting CNG and piped gas supplies to city distributors like IGL and MGL. GAIL has notified a cut in APM gas supplies by up to 20%, effective April 16, 2025.

India plans to amend its nuclear liability laws, capping accident penalties for equipment suppliers to attract US firms like GE and Westinghouse. This move aims to boost nuclear power production to 100 gigawatts by 2047 and facilitate a $500 billion trade deal with the US. The changes address concerns stemming from the 2010 law, influenced by the Bhopal disaster.

Reliance Industries (RIL) and its British partner BP boosted their share in the domestic aviation turbine fuel (ATF) market by 2.5 percentage points, spurred by a 62% sales growth in the just-ended fiscal year. RIL-BP’s market share rose to 7.5% in 2024-25 from 5% in previous year, according to industry data.

India is considering gas-based power generation as a captive energy source for its rapidly expanding data center industry. Utilizing gas plants could provide cost-effective and reliable power, offering a cleaner alternative to coal with reduced emissions. The adoption hinges on energy storage costs and long-term gas supply agreements, ensuring a stable and dispatchable energy source.

The government has decreased the supply of lower-cost APM gas to city gas distributors like Indraprastha Gas Ltd by up to 20%, substituting it with more expensive fuel. This reduction in APM gas allocation, effective April 16, 2025, will lead to higher input costs for CGD companies, potentially resulting in CNG price hikes and impacting profitability.

In a landmark collaboration, Reliance Industries, BP, and ONGC secured a Gujarat offshore oil block in the OALP-IX bid round. ONGC emerged as the dominant winner, acquiring 15 blocks, while Vedanta secured seven. This round witnessed significant investment commitments and aims to boost India’s oil and gas production, reducing the nation’s reliance on imports.

Gujarat State Petroleum Corp (GSPC) is looking to secure a liquefied natural gas (LNG) cargo for delivery in the second half of May. The tender for this cargo closes on April 15, according to industry sources.

BPCL’s finance chief, Vetsa Ramakrishna Gupta, anticipates oil prices to remain stable in the near term, fluctuating between $60-70 per barrel as US tariff uncertainties resolve. He dismisses the possibility of a significant price crash similar to 2015-16, expecting OPEC to implement production cuts if prices decline to $50-55.

Assam Chief Minister Himanta Biswa Sarma met with Vedanta Group representatives to plan the company’s Rs 50,000 crore investment in Assam’s energy sector. Vedanta aims to boost oil and gas production to 100,000 barrels per day, potentially transforming the region into a major hydrocarbon hub.

India’s diesel demand growth hit a pandemic-era low in fiscal year 2024-25, rising just 2% due to a slowing economy and the increasing adoption of electric vehicles. While diesel still dominates the transport sector, the shift to EVs in public transport and logistics is moderating its growth.