GAIL and ADNOC gas ink a long-term lng contract fuelling India’s natural gas industry growth

GAIL (India) Limited, India's largest Natural Gas company, has successfully concluded a long-term LNG purchase agreement for purchase of around 0.5 MMTPA LNG from ADNOC Gas, said Polymerupdate.

This is pursuant to an MoU dated 30.10.2022 between GAIL and Abu Dhabi National Oil Company (ADNOC) P.J.S.C wherein Parties agreed that, in potential areas of collaboration both parties shall explore opportunities including purchase of LNG by GAIL from ADNOC for a tenure ranging from short term to medium and long-term. This significant development between GAIL and ADNOC will reinforce the robust cultural and economic bonds between India and the United Arab Emirates (UAE).

Under this agreement, the deliveries will commence from 2026 onwards for a duration of 10 years, across India. This arrangement is believed to further aid in India’s rising energy security requirements and, simultaneously, also fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving Natural Gas landscape of the country.

We remind, GAIL India is looking to allot Rup 30,000 crore of investment in the succeeding three years for pipelines, city gas distribution projects, existing petrochemical projects, equity contribution in group firms, and operational capex. It also anticipates polymer sales to rise twofold and natural gas transmission volume to increase by 12% in FY 2024. (1 crore=10 M, 1 lakh=100,000).

GAIL, headquartered in New Delhi, is India’s largest natural gas company, with a diversified interest across natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P etc. It owns and operates a network of over 16,000 km of natural gas pipelines spread across the country along with concurrently working on enhancing the spread further. GAIL commands around 70% market share in gas transmission and has a gas trading share of over 50% in India.

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LUKOIL Group 2022 Sustainability Report debuted in the international Global Corporate Sustainability Awards and received a bronze class award in the Sustainability Reporting category, said the company.

The category recognizes organizations for disclosure of information in transparent and credible manner.

In 2023, 80 companies representing 8 countries submitted 90 applications to the contest. LUKOIL became its only Russian participant and winner. Among other Sustainability Reporting Awards winners are such companies as Delta Electronics, Inc., Hewlett Packard Enterprise, China Airlines Ltd., Logitech International S.A. etc.

We remind, Romania's Petrotel Lukoil refinery, owned by Russia's Lukoil, will shut for one month from Wednesday for planned maintenance works, online news website Profit.ro reported. Lukoil's Romanian unit has a relatively small market share compared to bigger refineries in the country. The refinery uses alternative fuel supplies and is not affected by a ban on Russian imports.

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Mitsubishi Heavy Industries Compressor International Corporation will supply critical turbomachinery packages to Dow for their Fort Saskatchewan Path2Zero Project – the world’s first net-zero scope 1 and 2 CO2 emissions ethylene cracker, said Hydrocarbonprocessing.

The Path2Zero Project, which supports the drive for industrial decarbonization, is projected to decarbonize approximately 20 percent of Dow’s global ethylene capacity. MCO-I’s turbomachinery equipment will be purchased under two contracts in support of Dow’s $6.5 billion brownfield investment at their existing manufacturing complex in Fort Saskatchewan, Alberta, Canada.

The scope includes the supply of three compressor packages: a steam turbine driven cracked gas compressor (CGC) train, a propylene refrigerant compressor package, and an ethylene refrigerant compressor package; as well as two condensing steam turbine generator packages. In total, the scope includes three API 612 steam turbines and four API 617 centrifugal compressors. The CGC turbine alone will exceed 100 MW in rated power, making it one of the largest API 612 turbines to be built.

Satoshi Hoshi, president and CEO, MHI Compressor Corporation (MCO), said, “MCO and MCO-I are proud to partner with Dow for the Path2Zero project. Dow’s commitment to decarbonize their global footprint mirrors our own commitment to contributing to a carbon neutral society. We are grateful to have this opportunity to support their goals and objectives through the supply of world-class turbomachinery.”

Ron Huijsmans, global MEGA project director, Dow, said, “Dow is very excited to expand the partnership with MHI Compressor Corporation. Their technology and high-quality execution is an excellent fit to our ambitious project.”

The compressors and steam turbines will be manufactured and tested by MCO at its factory in Hiroshima, Japan. MCO-I will provide project management and engineering support, as well as installation and commissioning services. MCO & MCO-I will work together with Dow’s engineering, procurement and construction management (EPCM) contractor through detailed engineering, manufacturing and testing to ensure all local Canadian regulations and industry standards are met, with final deliveries occurring in 2025.

Hoshi added, “The project will increase Dow’s production significantly with capacities exceeding 1,800 KTA by 2029. This further establishes MCO and MCO-I’s position as a market-leading turbomachinery provider for large scale ethylene production.”

We remind, The tanker Luggati is being loaded at Novatek's NVTK.MM terminal at the Baltic Sea port of Ust-Luga, where the company's fuel-producing complex was damaged by fire in January, according to industry sources and LSEG data. The tanker is designed for loading dirty oil products and, presumably, can take on fuel oil from the complex’s storage tanks, the sources added. Novatek did not respond immediately to a request for comment.

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The tanker Luggati is being loaded at Novatek's NVTK.MM terminal at the Baltic Sea port of Ust-Luga, where the company's fuel-producing complex was damaged by fire in January, according to industry sources and LSEG data, said Hydrocarbonprocessing.

The tanker is designed for loading dirty oil products and, presumably, can take on fuel oil from the complex’s storage tanks, the sources added.

Novatek did not respond immediately to a request for comment. Fuel tanker Breeze was also loaded at the terminal this week. According to market sources and LSEG data, the cargo was naphtha from the complex’s storage tanks and is heading to Singapore.

The fire at the Novatek's refinery complex started on Jan. 20, forcing the company to suspend "technological processes". Novatek resumed fuel loadings at its Ust-Luga terminal on Jan. 24, according to industry sources and LSEG data. Operations at the processing complex have yet to resume.

The complex, launched in 2013, processes gas condensate into light and heavy naphtha, jet fuel, fuel oil and gasoil. It enables the company to ship oil products as well as gas condensate to international markets.

In 2022 the Ust-Luga complex processed 6.943 million metric tons of gas condensate into 6.825 million tons of end products, including 4.208 million tons of light and heavy naphtha, 1.052 million tons of jet fuel and 1.487 million tons of fuel oil and gasoil as well as 78,000 tons of liquefied petroleum gas (LPG).

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Phillips 66’ Q4 pre-tax chemicals profits firmed year on year despite an overall drop in adjusted earnings due to weaker refining operations, the US-based firm said.

Pre-tax income stood at $106m, steady from the $104m in the preceding three months, and substantially up from $52m in the same period a year earlier.

The midstream producer’s chemicals earnings are derived from its stake in joint venture CP Chem, which it owns alongside fellow producer Chevron. Global olefins and polyolefins operating capacity for the business stood at 94% for the quarter, Phillips 66 added.

Weaker refining profitability on a quarterly and annual basis was the result of slimmer profits during the period, with average realised margins of $14.41/bbl compared to $18.96 in Q3 2023.

We remind, Phillips 66 is committed to playing a meaningful role in the energy transition by offering lower-carbon solutions to supplement its production of traditional fuels. That was the message delivered by Suresh Vaidyanathan, the company’s vice president of renewable fuels, at the Argus America Crude Summit in Houston on Jan. 24. He was joined by executives from other refiners operating in the U.S. on a panel discussion exploring refining in a low-carbon world.

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