Nayara Energy News

Rosneft-backed Nayara Energy is looking to invest ₹68,000 crore ($8 billion) to set up a 1.5 million tonne per annum (mtpa) ethane cracker at its 20 mtpa refinery at Vadinar in Gujarat, according to people aware of the development.

diesel exports to Europe surged fourfold in June over the previous month as refiners profited from better margins available in the continent. Indian refiners exported 119,400 barrels per day of diesel to Europe in June, up from 24,500 barrels per day in May, according to energy cargo tracker Vortexa. However, India's overall diesel exports fell 4% to 482,400 barrels per day. Europe alone received a quarter of India's diesel shipments. Supplies to Asia fell 10% to 107,800 barrels per day last month, with nearly 30% cut seen in shipments to other markets including Africa.

₹600 crore to establish two ethanol plants in Andhra Pradesh and Madhya Pradesh, each with a production capacity of 200 kilolitres per day. The move, in line with the government's 2025 ethanol-blending target, will help the oil-refining to fuel-retailing major achieve vertical integration, the company said in a statement. Land has already been acquired for the proposed facilities in both states, it added.

Nayara Energy is planning to invest ₹600 crore to set up two ethanol manufacturing plants in the country, said a senior company executive. Each plant will have a production capacity of 200,000 kilo litres of ethanol per day. These will be set up in Andhra Pradesh's Naidupeta and Madhya Pradesh's Balaghat, and are slated for commissioning by 2026. The company will use broken rice and maize for feedstock. In the long run, the company plans to have five ethanol manufacturing plants. «We have big plans on the ethanol front. By 2025, we have to blend 20% ethanol, so we have a mission for 100% sourcing. We aim to have at least five ethanol plants in the long term but to start with, we are setting up two,» said Prasad Panicker, executive chairman at Nayara Energy.

Private sector fuel retailers Jio-BP, Rosneft-backed Nayara Energy and Shell haven't yet been able to fully regain the market share they gave up in 2022 after the beginning of the Russia-Ukraine war that triggered a turmoil in the global oil market and made domestic fuel sales loss making for some time. The three private sector retailers had a combined market share of 8.7% in petrol sales in February, lower than 10% in the same month of 2022, according to industry data. For diesel, their share was 9.3% as against 10.8% two years earlier. Their share, however, is up from last year's 7.4% in petrol and 4.9% in diesel. The market share for all three private companies is lower than their respective shares two years ago in both petrol and diesel. Nayara Energy leads the private players, accounting for more than half of their combined sales. Nayara also operates the largest network of petrol pumps among private retailers. It has 6,590 pumps while Jio-BP, the joint venture of Reliance Industries and BP, operates 1,700 pumps, according to the oil ministry data. Shell has just 340 fuel stations and less than 1% share in domestic sales of petrol and diesel.

diesel exports to Europe rose 42% year-on-year in December on a combination of winter demand and the near absence of Russian supplies in the continent. India exported 248,000 barrels per day (bpd) of diesel to Europe in December, up from 175,000 bpd in December 2022 and 247,000 bpd in November, according to energy cargo tracker Vortexa. India's overall exports rose 17% year-on-year in December to 637,000 bpd. Europe's share in India's diesel exports was 39% in December, up from 32% in December '22 and 37% in November. India didn't export any diesel to the US in December.

Indian Oil Corp. has a mooring facility and Nayara Energy, which counts Rosneft as its single largest shareholder, has a refinery.

Private sector refiners helped boost India's imports of Russian oil in July after a decline in June amid reports of narrowing discounts. India imported 1.92 million barrels a day of Russian crude in July, almost reaching the record levels of May, according to energy cargo tracker Vortexa. Imports in July were 5% higher than in June and barely 6,000 barrels per day lower than in May.

Indian Oil Corporation has been appointed to the board of Rosneft in a fresh sign of growing energy ties between India and Russia. G K Satish, who served as Indian Oil’s planning and business development chief between 2016 and 2021, has been appointed to the Rosneft board along with 10 other members, the Russian firm said in a statement. The Rosneft board includes five independent directors, including Satish and a representative each from Qatar and the Philippines.