India's plan could be similar to a move by Australia, which last month said it would build up an emergency oil stockpile initially by buying crude to store in the U.S. Strategic Petroleum Reserve to take advantage of low oil prices.
Executives at Petronet LNG, which imports Qatari gas are likely to meet via videoconference with Qatargas executives soon to discuss how prices can be cut for the 8.5 million tonne a year of supply deal that expires in 2028.
The lockdown and travel curbs aimed at stemming spread of COVID-19 since March 25 forced people to stay home, cutting India's fuel demand by 45.8% in April.
A relief package has become crucial for the survival of companies such as ONGC.
Natural gas output from Dhirubhai-1 and 3 gas fields in the KG-D6 block in the Bay of Bengal started to lag company projections from the second year of production itself in 2010 and the field ceased to produce in February this year much ahead of its projected life.
A rebound in fuel demand indicates India is getting back to work and the world’s third-largest energy market is poised to regain its position as the global demand centre.
Lower production was due to a 15.3 per cent drop in output by the country's top producer ONGC at 1.72 bcm. State-owned Oil India Ltd also produced 10 per cent less natural gas at 202.05 million cubic metres due to "loss of potential in Deohal area (in Assam) due to presence of CO2 in production stream (and) less gas offtake by consumers due to COVID-19 lockdown," it said.
Indian Oil, the nation’s largest refiner and fossil fuel retailer, wants to keep itself relevant to motorists in future should vehicles shift away from polluting fossil fuels under the combined pressure of climate change obligations and technological innovations. Fuel cell vehicles carry a hydrogen tank and produce their own electricity, unlike other electric vehicles.
Under the Pradhan Mantri Garib Kalyan Package for healing COVID pain of poor, the government had in March announced distribution of three 14.2-kg LPG cylinders free of cost to Ujjwala beneficiaries from April to June.
Dixit, who was appointed CEO of Cairn Oil and Gas in mid-April last year, has decided not to seek an extension of his contract when it comes to an end at the end of the month, sources with direct knowledge of the development said.
Natural gas sales by GAIL has risen to 74 million metric standard cubic meters a day (mmscmd) from 56 mmscmd in the last week of March when the nationwide lockdown started, severely restricting mobility and shutting most industries. The volumes are still much lower than the 86 mmscmd GAIL supplied before the lockdown began.
The diesel and petrol sales by state oil companies have fallen by 28% and 47.5%, respectively, in the first fortnight of May from a year earlier, according to industry executives.
ONGC placed Notice of Award to seven successful bidders in 13 contract areas comprising of 49 marginal oil and gas fields," the company said. ONGC clubbed the 64 fields in Gujarat, Assam, Andhra Pradesh, and Tamil Nadu into 17 onshore contract areas by clubbing some of them. These have a cumulative 300 million tonnes of oil and oil equivalent natural gas reserves.
Aramco deal will allow Reliance to build financial muscle as it carves out space in omnichannel retail.
ONGC, a heavy spender traditionally, invested Rs 30,100 crore, the highest last year. Indian Oil Corp followed with Rs 28,300 crore. However, in terms of achieving the annual capex target, HPCL topped the table with a spending of Rs 13,800 crore, or 145% of its annual target.
Easing of nationwide lockdown that permitted people to step out of their homes and engage in economic activity in most parts of the country appears to have revived fuel demand that had witnessed a record fall in April.
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