Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry


BP, India's Reliance to invest $6 B more in offshore gasfield

NEW DELHI (Reuters) — BP and Reliance Industries said on Thursday they would invest $6 B to boost India's gas output from an east coast block and expanded their tie-up to feed the South Asian nation's rising fuel and renewable energy demand.

India is replacing China as the driver of fuel demand growth globally. The International Energy Agency expects India to account for a quarter of global energy use by 2040.

BP wants to sell fuels in India in a tie up with Reliance, which operates the world's biggest refining complex and is chaired by billionaire Mukesh Ambani.

"We will not do it (setting up fuel stations) alone. It will be in tie-up with Reliance. Maybe we will expand this to jet fuel also," BP's Chairman Bob Dudley told Reuters on the sidelines of an event to announce the investment plan and partnership.

BP has a license to sell jet fuel and build 3,500 fuel stations in India. India's pricing formula gives higher profits to retailers with refining plants or domestic supply sources.

Ambani said the partnership would also look at opportunities in trading that could include products such as oil, gas, fuels, LNG, power and carbon.

Dudley, who wants BP to catch up with production volumes of its biggest rivals ExxonMobil and Royal Dutch Shell, is banking on Indian policy moves and a favorable investment climate to unlock the resources.

After eight years, Reliance and BP have decided to invest in the D6 block on the east coast to raise gas output by 30 MMm3–35 MMm3 a day between 2020 and 2022. This will help in India's gradual migration to a gas-based economy.

"This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep-water gas resources offshore India efficiently and economically," Dudley said.

BP in 2011 made a foray into India's exploration sector when it signed a $7.2 B deal to buy a 30% stake in some oil and gas blocks operated by Reliance. It also formed gas sourcing and marketing tie-ups with the Indian conglomerate.

The gas joint venture is marketing some of the LNG sourced from BP's portfolio.

"I think that's what we are going to revive and reinvigorate," Dudley said, when asked if BP planned a long-term LNG supply deal with the Indian joint venture.

Dudley said the two companies were "not putting boundaries" on the expansion of the partnership, which will cover all forms of fuel marketing, retail distribution, and a combination of gas and renewables.

Reporting by Neha Dasgupta and Nidhi Verma; Editing by Mark Potter


Copyright © 2016. All market data is provided by Barchart Market Data Solutions. Futures: at least 10 minute delayed. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  Cmegroupicon                                     Icelogo

FEATURED COLUMNS

Business trends
-Adrienne Blume
The small-scale GTL (SSGTL) and small-scale LNG (SSLNG) sectors are gaining ground, providing alternative sources of power generation and transportation fuel in remote regions and areas not connected to major gas pipeline routes.
Editorial comment
-Adrienne Blume
Gas Processing and Hydrocarbon Processing are pleased to announce that as of August 2017, Gas Processing will be distributed along with both Pipeline & Gas Journal and Hydrocarbon Processing.
Regional focus
-Eugene Gerden
Novatek, Russia’s largest independent natural gas producer, plans to invest up to $11 B in the large-scale Arctic LNG 2 project. The project involves the construction of an LNG plant on the Gydan Peninsula—a geographical feature of the Siberian coast of the Kara Sea.


ADIP ULTRA: ADIP-X Reimagined

View on Demand

Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
Why attend?
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts

May 9, 2017 9am UTC

View on Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2015 Gulf Publishing Company.