CHEMICAL UPDATES.

INDIA

1. GAIL’s Green Hydrogen Plant Inauguration

GAIL (India) Limited inaugurated a 10 MW Green Hydrogen Plant at GAIL Vijaipur in Madhya Pradesh. This plant aligns with the National Green Hydrogen Mission and marks a significant step towards sustainable energy. It can produce 4.3 tonnes of hydrogen per day with 99.999% purity. Initially, the hydrogen will be blended with natural gas for internal use, with future plans to sell to nearby consumers.

2. India’s Petrochemical Demand Growth

India’s petrochemical demand is expected to grow by 8% in 2024. Despite the robust demand, domestic producers are facing margin pressures due to suppressed prices from ample supplies and new capacities. The market oversupply challenges are driven by increased imports, particularly from China, and the implementation of BIS certification aims to regulate imports and promote local production.

3. Reliance’s Ruble Deal with Rosneft

Reliance Industries has signed a one-year deal with Russia’s Rosneft to buy at least 3 million barrels of oil a month in rubles. This move is part of a strategy to navigate around Western sanctions and secure discounted oil rates. It underscores India’s role as a significant buyer of Russian crude.

4. Expansion of BASF’s Production Capacities

BASF India Ltd. plans to increase the production capacity of its Ultramid polyamide and Ultradur polybutylene terephthalate compounding plant in Gujarat and Maharashtra. This expansion is set to support the growing demand in the region and enhance BASF’s presence in the Indian market.

5. Joint Task Force for Ratnagiri Refinery

India and Saudi Arabia have agreed to establish a joint task force to expedite the construction of the Ratnagiri Refinery and Petrochemicals Limited (RRPCL) project in Maharashtra. This project is crucial for meeting India’s energy demands and establishing the country as a refining hub.

6. LNG Terminal Capacity Utilization

India’s LNG terminal capacity utilization has seen a significant increase. The largest import terminal at Dahej operated at 95% capacity, up from 78% in the previous fiscal year. This reflects the growing demand for LNG in the country.

7. Government’s Special Auction for Oil and Gas Fields

The Indian government offered three small oil and gas fields in a special auction. This initiative aims to attract private players for exploration and provide full pricing and marketing freedom, which could boost domestic production and reduce reliance on imports.

8. ONGC’s Investment Plans

Oil and Natural Gas Corp (ONGC) has announced increased investments which may slow its deleveraging process. Despite lower domestic production and realizations, ONGC’s EBITDA rose due to strong performance from subsidiaries, and it plans to increase production from the Krishna Godavari basin and international assets.

9. Chemical Factory Explosion in Western India

A tragic explosion and fire at a chemical factory in western India resulted in at least eight fatalities and numerous injuries. This incident highlights the importance of safety measures and regulations in the industry.

10. Petrochemical Industry’s Record Demand

India’s petrochemical demand is projected to rise by 7.5 percent, reaching a record high in the current financial year. The growth is driven by the government’s spending and the resurgence of consumer activities post-pandemic.

Weekly Newsletter

GLOBAL

1. Middle Eastern Oil Companies Expand into Chemicals Middle Eastern oil producers, particularly ADNOC and Saudi Aramco, are making significant strides into the chemical sector. Yesterday, reports indicated that these companies are eyeing further acquisitions in 2024, following major deals in 2023. This shift comes as global fuel demand declines, positioning chemicals as a promising growth market.
2. U.S. Refining Capacity Decline The U.S. and other developed nations are experiencing a reduction in refining capacity. This trend is pushing oil companies to seek alternative products to gasoline. The petrochemicals surge is seen as a viable path for the industry’s future.
3. Thermal Enhanced Oil Recovery (EOR) Market Report A new market report released yesterday highlights the potential of thermal EOR methods. Steam injection, a common thermal EOR technique, is gaining traction for its ability to heat oil, reduce viscosity, and improve flow, thus enhancing oil recovery.
4. Hydrocarbon Engineering Trends The latest trends and events from the hydrocarbon industry were summarized in a report yesterday. It covered aspects of oil refining, gas processing, and the move towards cleaner fuels, reflecting the industry’s ongoing evolution.
5. Global Push for Clean Fuels A global movement towards clean fuels is reshaping the oil refinery and petrochemical industries. Yesterday’s discussions at an international conference highlighted the industry’s commitment to reducing carbon emissions and investing in sustainable energy sources.
6. Advancements in Catalytic Processes Breakthroughs in catalytic processes for petrochemical production were announced yesterday. These advancements promise to increase efficiency and yield, while reducing the environmental impact of chemical manufacturing.
7. Oil Price Fluctuations Impact Petrochemicals Oil price volatility continues to affect the petrochemical industry. Yesterday’s market analysis showed that recent price swings are influencing production costs and profit margins across the sector.
8. New Petrochemical Plant Openings Several new petrochemical plants commenced operations yesterday. These facilities, located in various parts of the world, aim to meet the growing demand for petrochemical products and create local economic opportunities.
9. Innovations in Oil Spill Remediation Innovations in oil spill remediation techniques were presented yesterday. These new methods focus on minimizing environmental damage and improving the speed and effectiveness of response to oil spills.
10. Investments in Renewable Chemical Feedstocks The industry is increasingly investing in renewable chemical feedstocks. Yesterday, a major oil company announced a significant investment in a plant that will produce chemicals from bio-based materials, signaling a shift towards sustainability.

DEEPAK RASTOGI