Category: oil-&-gas

India is expected to be a significant market for petrochemicals in 2025, driven by demand from electric vehicles, solar panels, and household appliances. Despite global oversupply and depressed margins, substantial investments are planned, including major projects in Gujarat. Resilience in local demand is being observed, particularly in the automobile sector.

BPCL has signed a term contract with Total Energies Trading Asia for purchase of Middle Eastern crude oil. The contract is valid for one year starting April 2025, BPCL said in a statement without giving more details on the contract.

Indian Oil Corporation has signed a 14-year agreement to buy up to 1.2 million tonnes per annum of LNG from UAE’s ADNOC Gas starting 2026, valued at $7-9 billion. Bharat Petroleum also secured an agreement for 2.4 million tonnes of LNG annually starting April 2025. Additionally, Indian Oil will export LNG to Nepal for the first time through Dhamra Terminal.

The NCLT Hyderabad has approved JSW Energy’s revival plan for the bankrupt KSK Mahanadi Power Company, which has liabilities exceeding ₹32,335 crore. JSW Energy proposes a resolution of ₹15,985 crore. The revival is conditional on clearance from the Competition Commission of India.

Think Gas has faced challenges in connecting homes with piped natural gas due to the absence of trunk pipelines and customers’ preference for subsidised LPG, according to CEO Abhilesh Gupta. The merger with AG&P Pratham is ongoing, but plans for an IPO are uncertain. Gupta highlighted that regulations allow shifting targets if the trunk pipeline is missing, affecting household connections.

NHPC Ltd plans a capital expenditure of over ₹8,000 crore in FY26, focusing on adding 1,620 MW hydro and 1,490 MW solar projects. The company’s current projects total around 9,314 MW under construction, with plans also in place for 20 GW of pumped hydro storage project developments.

Karnataka is set to expand its transmission capacity to around 60-65 GW in the next five years, requiring an investment of ₹60,000 crore. The state will cover 40% of the investment, while competitive bidding will handle the rest. This expansion aims to address issues with renewable energy intermittencies and transmission congestion.

Freight rates to ship Urals crude from Baltic ports to India increased by around 20% in February, resulting in costs up to $8 million per voyage due to U.S. sanctions and rising exports. Higher freight costs mean Russian exporters earn less for oil as they spend more on shipping.

NTPC is in discussions with foreign firms, including those from Russia and the U.S., for constructing small nuclear reactors. These small modular reactors can be scaled up to meet demand. NTPC intends to start its first nuclear project in Rajasthan soon and seeks to boost India’s nuclear capacity to reduce its carbon footprint.

India’s goal to increase the share of natural gas in its energy mix to 15% by 2030 faces challenges due to high global LNG prices. Lower gas prices are essential for making gas-fired electricity generation competitive, which is crucial for boosting demand. Limited infrastructure and high logistical costs further constrain natural gas consumption.