Beauty is what you buy

India’s private refiners, Reliance Industries and Nayara Energy, are shifting focus to domestic fuel sales due to squeezed global profit margins. They are capitalizing on India’s growing fuel demand by offering discounts and expanding retail networks. This strategic shift allows them to leverage cheaper crude oil and compete effectively with state-owned refiners.

That’s even higher than the 359,000 bpd they had collectively committed to additionally produce under Opec+’s plan to raise output by 409,000 bpd. Saudi Arabia, the biggest contributor to the group’s supply increase, delivered the largest incremental volume to India in May, expanding its market share by 3 percentage points over April to 13.1%. The gain was driven by price cuts offered to Asian buyers. Saudi Aramco had cut the May OSP for Arab Light—its flagship grade—by $2.30 per barrel.

Power Grid Corporation of India has acquired MEL Power Transmission from PFC Consulting for Rs 558 crore. This acquisition will facilitate the establishment of a transmission system to evacuate power from Mahan Energen’s generation station in Madhya Pradesh. The project includes a 400 kV transmission line and associated infrastructure, ensuring reliable power evacuation.

India’s coal-fired electricity generation experienced a significant 9.5% drop in May, marking the fastest decline in five years, driven by decreased power demand and a surge in renewable energy output to a record high. Consequently, natural gas-fired power generation also plummeted, while the share of coal in the power mix reached its lowest level since June 2022.

The Grid Controller of India has revised down its peak power demand target for June to 261 GW, a decrease from the earlier projection of 269 GW. This adjustment is attributed to the early arrival of the monsoon and unexpectedly mild temperatures, which are expected to dampen electricity consumption.

India’s city gas distribution sector is set to become the top natural gas consumer, overtaking fertiliser plants. This growth is fueled by expanding CNG and piped gas networks. Natural gas consumption is projected to increase significantly in the coming years. However, India will rely on LNG imports to meet the rising demand.

India aims to diversify its import basket by increasing purchases of shale gas, LNG, and crude oil from the US, leveraging lower prices. Trade talks are scheduled amidst uncertainties like potential tariff hikes, with India prioritizing a balanced, mutually beneficial agreement. Both nations are targeting to more than double bilateral trade to USD 500 billion by 2030.

The Indian Energy Exchange (IEX) witnessed a 14% surge in electricity trade volume, reaching 10,946 MU in May. Renewable Energy Certificates (RECs) trading jumped 65% year-on-year. While Day Ahead Market prices fell 22% to Rs 4.12/unit, the Real-Time Market saw a record volume increase of 42%.

Numaligarh Refinery Limited (NRL) is planning to establish a 200 KTPA aviation fuel plant in Odisha as part of its net-zero initiative, targeting completion by 2040. NRL is also exploring activated carbon production from bamboo dust, with assistance from IIT Guwahati, and expanding its capacity from 3 to 9 MMTPA with a new crude oil pipeline.

ONGC faces financial strain in Assam. Low production and high manpower contribute to losses. Employee protests arise over overtime payment discontinuation. ONGC defends its local hiring and community investments. Medical facility changes aim to curb misuse. Despite challenges, ONGC commits to Assam through CSR initiatives. Dialogue continues between management and employee representatives.