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Adani’s Rs 1.64 lakh crore petrochemical project targets India’s import dependence 

India’s petrochemical sector may be heading toward its biggest structural shift in decades as Adani Group moves ahead with a massive coal-to-chemicals strategy through two proposed integrated projects in Odisha and Chhattisgarh. The combined investment of nearly Rs 1.64 lakh crore is aimed at producing methanol, synthetic fuels, polyethylene, urea, EVA, MEG and several downstream chemicals that India currently imports heavily. The scale of the proposed Adani coal-to-chemicals project India is unprecedented and could fundamentally alter the country’s petrochemical supply chain.

The two proposed complexes under Mundra Synenergy will together consume nearly 40 million tonnes of coal annually and produce 7.2 million tonnes of methanol, 2 million tonnes of Fischer-Tropsch fuels and 1.2 million tonnes of polyethylene. The project is strategically focused on segments where domestic manufacturing remains weak despite rising demand. Products such as vinyl acetate monomer, ethylene vinyl acetate and mono-ethylene glycol are still substantially imported into India.

The most important aspect of the plan is that it bypasses the traditional naphtha-cracker route dominated by Reliance Industries. Instead, the projects rely on coal gasification and methanol-to-olefins technology. This gives Adani entry into product chains where imported gas-based producers currently dominate economics. Indian Petroplus analysis indicates the strategy is less about competing with Jamnagar and more about occupying the spaces existing refiners have not entered.The projects are still at pre-clearance stage and face execution, environmental and carbon-risk challenges. However, if implemented successfully, the Adani coal-to-chemicals project India could become one of the largest industrial transformation bets ever attempted in the country.

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Deepak Chem Tech’s Rs 8,500 crore Gujarat petrochemical project gets EAC support

Deepak Chem Tech Limited has moved significantly closer to building one of India’s largest private-sector phenolics and polycarbonate projects after receiving recommendation for environmental clearance from the Expert Appraisal Committee. The proposed Deepak Chem Tech Bharuch petrochemical project at Padariya village in Gujarat’s Bharuch district involves an investment of around Rs 8,500 crore and will strengthen domestic production of several import-dependent petrochemical products.

The project will manufacture nearly 15.9 lakh tonnes annually across 18 product categories including phenol, acetone, bisphenol-A and polycarbonate. Among the major capacities planned are 4,50,000 TPA of phenol, 2,84,220 TPA of acetone and 1,75,000 TPA of polycarbonate. The project also includes hydrogenation products and several specialty intermediates linked to downstream plastics and industrial applications.

The proposed facility will include a 90 MW captive thermal power plant and draw water from the GIDC Dahej supply network. Deepak Chem Tech has committed more than Rs 100 crore toward environmental management infrastructure along with recurring annual environmental expenditure. The clearance conditions also mandate continuous online emissions monitoring and VOC leak detection systems.

The importance of the Deepak Chem Tech Bharuch petrochemical project lies in India’s continued dependence on imported phenol derivatives and engineering plastics. The project is expected to strengthen domestic value chains linked to automotive, electronics and consumer durable manufacturing. The company’s existing integration with Deepak Phenolics and long-term propylene supply arrangements further improve project economics.Indian Petroplus analysis suggests the Bharuch investment could position Deepak Group among India’s leading integrated phenolics producers while supporting the government’s import substitution strategy in high-value petrochemicals.

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ONGC’s Rs 1,892 crore Gujarat drilling push heads for environmental review

Oil and Natural Gas Corporation Limited has proposed a large-scale onshore hydrocarbon development programme involving 349 new wells across Gujarat’s Cambay basin region. The proposed ONGC Gujarat onshore wells project has now been referred to the Expert Appraisal Committee for Fresh Terms of Reference appraisal ahead of environmental clearance evaluation.

The drilling campaign spans eight mining lease blocks across Anand, Kheda and Vadodara districts, with Padra PML accounting for the majority of proposed wells. ONGC plans to drill to an average depth of around 1,200 metres, with each well expected to require 30 to 45 days for completion. The total estimated investment for the development programme stands at Rs 1,892 crore.

The project will connect future production to existing installations including Padra GGS, Kathana GGS, Akholjuni EPS and Anklav EPS. ONGC has indicated that rapid urbanisation in parts of Gujarat’s Cambay Asset is increasing the urgency of exploiting remaining hydrocarbon reserves before land-use pressures intensify further.

The ONGC Gujarat onshore wells project also includes environmental safeguards such as wastewater treatment systems, reuse mechanisms, HDPE-lined pits and water-based mud systems for drilling waste management. Water demand has been estimated at around 22 KLD per well.According to Indian Petroplus analysis, the proposal highlights ONGC’s continued focus on sustaining mature onshore production regions while balancing rising environmental scrutiny around new fossil fuel developments. The project also reflects the growing importance of smaller and medium-depth onshore fields in maintaining domestic oil and gas output stability.

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Essar’s mega SAF project in Gujarat gets environmental recommendation

India’s sustainable aviation fuel sector is preparing for a major capacity jump after the Expert Appraisal Committee recommended environmental clearance for Essar Future Energy Limited’s proposed biofuel complex in Gujarat. The planned Essar sustainable aviation fuel project India at Kajurda village in Devbhumi Dwarka district will have capacity to produce around 9.3 lakh tonnes annually of SAF and renewable diesel.

The scale of the project is far larger than existing Indian SAF facilities. IndianOil’s currently operational SAF production remains relatively limited, while Essar’s proposed complex is designed to support India’s future aviation decarbonisation requirements as blending mandates begin tightening from 2027 onward.

The project gains strategic significance because India has committed to phased SAF blending targets for international aviation operations. Global schemes such as CORSIA and European sustainability mandates are expected to create strong long-term demand for low-carbon aviation fuels. The proposed facility therefore positions India as a potential export hub for SAF production in Asia.

The Essar sustainable aviation fuel project India will source water from nearby Essar Power Gujarat infrastructure and includes multiple environmental compliance measures such as VOC capture systems, sulphur recovery and continuous emissions monitoring. Public hearings reflected mixed local responses, with both support and environmental concerns recorded during consultations.Indian Petroplus analysis indicates the project could become one of the most important clean-fuel investments in India’s energy transition landscape if executed successfully. However, long-term viability will depend on feedstock economics, export demand and actual plant utilisation rates after commissioning.

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LNG corridor study in East India: IPPL tender reveals uncertainty over real trucking demand

LNG corridor study in East India is exposing one of the biggest uncertainties inside India’s gas mobility transition — nobody yet knows where commercially sustainable LNG trucking demand actually exists across eastern freight corridors. IndianOil Petronas Pvt Ltd’s latest feasibility tender linked to the Haldia LNG terminal effectively turns the study into a large-scale demand discovery exercise. Indian Petroplus analysis indicates that the sector’s biggest risk is no longer infrastructure construction, but downstream consumption viability.

The tender requires consultants to independently identify LNG trucking corridors, evaluate freight density, model transportation economics and validate real customer demand. Unlike western India’s relatively mature LNG transport ecosystem, eastern India still faces fragmented industrial activity, lower LNG familiarity among transport operators and weaker downstream gas penetration.

A major signal inside the LNG corridor study in East India is IPPL’s insistence that consultants secure actual customer engagement agreements during the study itself. This suggests the company is less interested in theoretical market projections and more focused on proving whether bankable LNG demand truly exists.

The Haldia LNG terminal has effectively become the anchor point for the entire eastern India LNG mobility experiment. All supply-chain modelling and route simulations will revolve around Haldia as the principal sourcing node.Indian Petroplus analysis suggests that India’s LNG expansion strategy now faces a critical test: whether demand ecosystems can scale quickly enough to justify the infrastructure being built across eastern freight corridors.

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 Non-OMC offtake in India: HOEC resale signals structural change in upstream crude marketing

Non-OMC offtake in India is becoming commercially viable for the first time as India’s upstream crude marketing structure slowly moves beyond the traditional OMC-controlled framework. HOEC’s recent decision to resell its disputed B-80 crude cargo to a third-party buyer instead of routing it through HPCL has established a precedent that could reshape upstream commercial architecture. Indian Petroplus analysis indicates that this development marks the early weakening of the long-standing refinery monopsony that historically dominated Indian E&P.

For decades, Indian upstream operators depended almost entirely on IOCL, BPCL, HPCL or a few integrated refiners for crude evacuation. Alternative buyers lacked storage access, refining capacity and logistical infrastructure. That equation is now changing due to rising private refining flexibility, expanding crude trading networks and increasing stress on OMC marketing economics.

The importance of non-OMC offtake in India is visible in how upstream operators are repositioning themselves. Companies such as Antelopus Selan Energy are building diversified operator-level portfolios that depend on capturing stronger commercial margins through flexible crude sales rather than relying entirely on standard OMC procurement structures.

The Hormuz disruption and rising under-recoveries have further weakened OMC purchasing flexibility, encouraging upstream players to explore alternative sales channels. Independent traders and private refiners now represent commercially meaningful buyers for Indian-produced crude. Petroplus analysis suggests that if third-party crude trading expands further, India’s upstream-refining commercial relationship may undergo its biggest structural shift in decades, fundamentally altering pricing power across the domestic oil sector.

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M11 Energy Transition SAF JV: IOCL’s unusual 50:50 structure raises strategic questions over partner capability

M11 Energy Transition SAF JV has emerged as one of the most closely watched partnership structures in India’s energy transition space after IOCL approved a Rs 1,063-crore sustainable aviation fuel project at Paradip. The significance of the announcement lies less in the SAF project itself and more in IOCL’s decision to form a 50:50 joint venture with relatively low-profile M11 Energy Transition Pvt Ltd. Indian Petroplus analysis indicates that the equal-control structure marks a major departure from IOCL’s traditional majority-led joint venture approach.

The project will produce 100 KTPA of HEFA-based sustainable aviation fuel using hydroprocessed esters and fatty acids technology. While HEFA processing technology is commercially mature and globally available through established licensors, the real challenge lies in feedstock aggregation and sustainability certification.

This is where the strategic importance of the M11 Energy Transition SAF JV becomes critical. Feedstock sourcing for used cooking oil, vegetable oils and other lipid-based inputs requires specialised logistics, supplier networks and certification capability that IOCL may not currently possess internally at commercial scale.

The equal-equity structure suggests M11 may be contributing binding-constraint capabilities linked to feedstock supply chains and sustainability compliance systems. The project’s success will depend heavily on whether these capabilities are genuine and scalable.Indian Petroplus analysis suggests that the upcoming reviews by NITI Aayog and DIPAM will become the first public test of the partnership rationale. If approved smoothly, the Paradip SAF structure could become a template for future energy-transition JVs across India’s PSU refining ecosystem.

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The same crisis, three different bills: OMCs, CGDs and industrial users are absorbing Hormuz shock differently

The same crisis, three different bills is becoming the defining pattern across India’s downstream energy chain after the Hormuz disruption. The latest quarterly results from IOCL, IGL and Somany Ceramics show that refiners, gas distributors and industrial consumers are each absorbing the same energy shock through entirely different financial mechanisms. Indian Petroplus analysis indicates that the current pricing architecture is creating asymmetric pressure across the fuel ecosystem rather than distributing costs evenly.

IOCL posted a sharp jump in quarterly profitability as refining margins expanded due to favourable crude spreads and discounted imports. However, the refining windfall is simultaneously being used to absorb heavy marketing under-recoveries on LPG, diesel and petrol. The stronger refining segment is effectively subsidising retail fuel losses.

The situation looks very different for city gas distributors. IGL reported record gas sales volumes but declining profitability because regulated tariffs prevented full pass-through of rising LNG-linked input costs. Reduced APM gas allocation and higher spot LNG dependence have compressed margins despite stable demand growth.

Meanwhile industrial consumers like Somany Ceramics have managed to preserve profitability by transferring higher gas costs downstream through product price increases. The ceramics sector successfully protected EBITDA margins even after significant energy-cost inflation.The same crisis, three different bills therefore reflects a structural policy outcome where each tier absorbs the Hormuz shock differently depending on pricing flexibility and regulatory constraints. Indian Petroplus analysis suggests that future stress will intensify if crude prices rise further or Russian crude waivers tighten.

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Indian Gas Exchange growth faces liquidity challenge

Indian Gas Exchange market development is facing a structural liquidity challenge despite India’s push toward transparent gas trading and market-based pricing reforms. The latest Indian Gas Exchange data shows IGX still accounts for only around 3% of India’s total gas consumption even after completing five years of operations. While the exchange has captured nearly 20% of the country’s spot gas market, overall traded gas volumes remain limited due to long-term contracts, administered pricing systems and sector-linked gas allocation mechanisms. Industry stakeholders warn that deeper reforms including derivatives and long-tenor contracts may arrive before the physical gas market develops sufficient liquidity depth. Analysts also point to challenges including high LNG prices, pipeline access constraints, limited storage and price-sensitive industrial demand. Indian Petroplus analysis suggests India has successfully built the institutional framework for a gas trading market, but the underlying traded gas pool remains too narrow to support a fully mature and liquid gas exchange ecosystem.

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Gujarat gas pipeline project highlights India’s fragmented gas reality

Gujarat gas pipeline project economics are drawing attention after GSPL proposed a short 20 km pipeline connection for gas volumes peaking below 0.35 MMSCMD. The latest Gujarat gas pipeline project involves linking Antelopus Selan Energy’s Cambay field with GSPL’s Ishwarwada SV Station through a 6-inch pipeline costing nearly Rs 40 crore. Despite the limited gas output and steep production decline profile, the project still requires regulatory approvals, compression systems, gas quality infrastructure and nearly 20 months of execution. The case highlights how India’s domestic gas ecosystem increasingly depends on fragmented, infrastructure-intensive and field-specific developments rather than large-scale discoveries. Analysts say every new domestic gas molecule now requires dedicated evacuation systems, regulatory clearances and specialized engineering support before entering the national gas grid. Indian Petroplus analysis indicates that India’s gas transition continues to rely heavily on piecemeal infrastructure expansion even as LNG imports remain strategically important for long-term energy security.

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 ONGC jackup rig hire tender lowers offshore bidding barrier

Jackup rig hire tender activity in India’s offshore drilling sector is seeing a major shift after ONGC relaxed bid security requirements for multiple rig participation under tender ZW3AC26003. The latest jackup rig hire tender revision allows bidders to submit EMD for only one non-empaneled rig even if several rigs are offered, reducing liquidity pressure and potentially widening participation in India’s offshore rig market. However, ONGC has retained strict technical qualification norms including class certification, serviceability, operating history, TPI compliance and residual life certification. The tender covers charter hiring of two or more MLT/BMC jackup rigs for a three-year period under an international competitive bidding framework. Industry observers believe the corrigendum improves bid economics for offshore contractors while allowing ONGC to maintain tight control over rig quality and operational reliability. Indian Petroplus analysis suggests the move reflects ONGC’s strategy to attract wider offshore capacity participation without compromising fleet discipline or execution standards in India’s offshore drilling segment.

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US LNG export approval queue expands beyond mega LNG terminals

US LNG export approval activity is widening beyond large Gulf Coast liquefaction projects as smaller distributed LNG facilities seek access to global export markets. The latest filing by Navergy Infrastructure Partners highlights how the US LNG export approval pipeline is no longer limited to billion-dollar LNG terminals. Instead, operational LNG plants linked to ports across Texas, Florida, Washington, Louisiana and Alabama are now seeking long-term authorization to export LNG to both FTA and non-FTA countries. The filing signals a structural shift in the LNG business model toward smaller, flexible and multi-source LNG aggregation systems. For Asian LNG buyers including India, this creates additional long-term LNG supply optionality and greater market flexibility. The development also reinforces how the US LNG industry continues expanding despite geopolitical uncertainty, climate scrutiny and export policy debates. Analysts believe distributed LNG exports could gradually complement traditional mega-terminals and reshape future LNG trade flows. Indian Petroplus analysis indicates that smaller LNG export pathways may increase supply competition and diversify LNG sourcing models for global buyers over the next decade.

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ONGC jackup rig tender: EMD relaxation widens bidder participation

The ONGC jackup rig tender reflects a calibrated shift in procurement strategy, where entry barriers are being softened without compromising technical discipline. The key change—limiting EMD to only one non-empaneled rig even if multiple rigs are offered—directly improves bidder liquidity and participation.

However, the technical gate remains firmly intact. ONGC continues to enforce strict requirements around rig serviceability, recent operating history, class certification, TPI compliance, and residual life. This ensures that while more bidders can enter, only technically robust rigs remain competitive.

From an Indian Petroplus analysis, this approach signals a dual objective: expand offshore rig availability while maintaining control over execution risk. The structure allows ONGC to attract a wider pool of contractors without diluting asset quality standards.

The tender also retains flexibility on the number of rigs to be awarded. While the baseline requirement is two rigs, additional capacity depends on operational needs, giving ONGC strategic control over fleet deployment.Overall, the ONGC jackup rig tender is not just a procedural adjustment. It reflects a broader strategy where financial entry barriers are eased to stimulate competition, while technical and operational controls remain tightly enforced to safeguard project delivery, ONGC, Jackup Rig, Offshore Drilling, Oil And Gas India, Energy Tenders.

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India gas pipeline project: Small volumes demand high infrastructure effort

The India gas pipeline project example highlights a structural reality in the country’s gas ecosystem—significant effort is required to monetise even small volumes of domestic gas. A ~20 km pipeline with an estimated capex of Rs 40 crore and a 20-month execution timeline is being developed for peak volumes below 0.35 MMSCMD.

This mismatch between scale and effort is critical. The production profile shows a short-lived peak followed by rapid decline, yet the infrastructure investment remains substantial. The project underscores that domestic gas supply in India is fragmented, field-specific, and infrastructure-dependent.

From an Indian Petroplus analysis, this reflects a system where each incremental molecule requires dedicated evacuation, regulatory clearance, and engineering intervention before reaching the grid. Connectivity, rather than volume, becomes the primary strategic objective.

This also reinforces a broader implication: scaling domestic gas is operationally complex and time-intensive. As a result, imports continue to play a stabilising role in India’s gas balance.In essence, the India gas pipeline project illustrates that India’s gas transition is not driven by large discoveries, but by piecemeal integration of small, dispersed supply sources into the national network, Gas Pipeline, India Energy, Natural Gas, Pipeline Infrastructure, Energy Transition.

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Indian Gas Exchange IGX: Market depth remains limited despite five years

The Indian Gas Exchange IGX has completed five years of operation, yet its share in the overall gas market remains limited at around 3% of total consumption. This highlights a fundamental gap between market infrastructure and actual trading depth.

While IGX accounts for a larger share within the spot market, the spot segment itself is relatively small. A significant portion of India’s gas consumption continues to be tied to long-term contracts, administered pricing, and sector-specific allocations, limiting the volume available for exchange-based trading.

From an Indian Petroplus analysis, the constraint is not the platform but the underlying gas ecosystem. Limited domestic production growth, high LNG prices, and restricted pipeline access all contribute to a shallow trading pool.

The implication is clear: market reforms aimed at price discovery, derivatives, and financialisation may be advancing faster than the physical gas market can support. Without sufficient liquidity, price signals remain fragile.Ultimately, the Indian Gas Exchange IGX represents an important institutional step, but not yet a mature gas market. The next phase of reform will depend on expanding flexible supply and demand that can actively participate in trading, IGX, Gas Trading, Energy Market, Natural Gas India, Energy Reforms.

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US LNG export approvals: Smaller projects expand the export queue

The US LNG export approvals landscape is evolving beyond large-scale liquefaction terminals, with smaller LNG facilities increasingly seeking entry into the export market. This marks a shift from a purely mega-project-driven model to a more distributed supply framework.

Recent applications show multiple operational LNG facilities aiming to secure export authorisation through port-linked networks. While individually small, these facilities collectively represent a growing layer of supply ambition.

From an Indian Petroplus analysis, this trend introduces additional flexibility into global LNG sourcing. Aggregated volumes from smaller facilities may not match mega terminals, but they can enhance optionality in contracts and delivery structures.

However, regulatory clarity remains a key challenge. Many of these facilities operate outside traditional large-terminal frameworks, raising questions around approval pathways and compliance requirements.In summary, the US LNG export approvals trend indicates that LNG supply growth is becoming more fragmented and diversified. Alongside mega terminals, smaller distributed export models are emerging as a parallel pathway that could reshape future global LNG trade dynamics, US LNG, LNG Exports, Global Gas Market, Energy Trade, LNG Supply.

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BPCL AI refinery surveillance tender: Competition narrows to one bidder

The BPCL AI refinery surveillance tender highlights how digital procurement is reshaping competition at Bharat Petroleum Corporation Limited. This BPCL AI refinery surveillance tender has effectively reduced the field to a single technically qualified bidder despite multiple participants.

In Indian Petroplus analysis, the outcome reflects how standard eligibility criteria can become restrictive in emerging technology segments like AI-driven surveillance. Experience and turnover thresholds, though typical, favour established players over newer firms.

The absence of MSME or startup relaxation further limits participation. As a result, the tender sees broad interest but narrow qualification.

An additional layer comes from the ±25% option clause, which shifts operational flexibility risk to the contractor. With limited competition, price discovery may weaken, impacting long-term benchmarking.

From BPCL’s perspective, the approach prioritises safety during refinery turnaround operations, where risk tolerance is low.The BPCL AI refinery surveillance tender ultimately signals a broader trend—digital adoption is advancing, but through conservative, experience-driven procurement frameworks.