India air passenger traffic to double by 2030: minister

Spanish Market: Oil products
19/01/24

India's domestic air passenger traffic will double to 300mn by 2030, civil aviation minister Jyotiraditya Scindia said on 18 January.

Domestic air travel serves as an indicator of jet fuel demand. India's demand for jet fuel demand rose by 15pc from a year earlier to 174,000 b/d in 2023, petroleum ministry data show.

India's domestic air passenger traffic hit a record high of 152mn passengers in 2023, up by 23pc from 123mn in 2022, data from the civil aviation ministry show. The rise has reflected the sector's recovery from the impact of the Covid-19 pandemic, aided by rising air travel demand and improving airport infrastructure.

"Today our penetration is roughly about 3-4pc," Scindia said. "That will grow to about 10-15pc. We still have 85pc penetration to go." The government is working towards this by creating capacity, he added, removing bottlenecks and simplifying procedures in the sector.

The Indian government also aims to increase the number of airports, waterports and heliports to over 200 by 2030 from 149 currently, Scindia said. He added that India's fleet size will increase from 713 to over 2,000 by 2034, with India becoming the third-largest buyer of aircraft behind the US and China.

Domestic air passenger traffic is expected to expand by 8pc in the April 2023-March 2024 fiscal year and by 13pc in April 2024-March 2025, Indian credit rating agency Icra said.

By Roshni Devi

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30/10/24

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Cepsa rebrands to Moeve to reflect sustainability shift

30/10/24

Cepsa rebrands to Moeve to reflect sustainability shift

Madrid, 30 October (Argus) — Spain-based integrated energy company Cepsa has changed its name for the first time in its 95 years of existence, to Moeve (pronounced Moo-eh-vey). The change reflects Cepsa's transition "in which the majority of profits will come from sustainable activities by the end of this decade," said chief executive Maarten Wetselaar. Cepsa has sold nearly 70pc of its oil and gas production over the past two years, including its stakes in upstream assets in Abu Dhabi , in Peru and in Colombia . It has retained stakes in light crude and gas production in Algeria, which has a significantly lower carbon footprint. The company reported provisional working interest crude production of 36,000 b/d in July-September, down from 80,000 b/d in the same period of 2021. Since then it has announced an €8bn ($8.65bn) investment strategy to decarbonise much of its business through ventures such at the planned 2GW Andalusian Hydrogen Valley , announced at the end of 2022, together with second-generation biofuels, biomethane and renewables development. Cepsa, or Compañia Espanola de Petroleos SA, was founded in 1929. It has been been majority controlled by Abu Dhabi sovereign wealth investors IPIC and Mubadala Investment Company since 2011. US investment fund Carlyle acquired 37pc of the firm in 2019. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LPG bunker demand lags despite competitive pricing

29/10/24

LPG bunker demand lags despite competitive pricing

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Brazil fossil fuel subsidies outpace renewables: Study

29/10/24

Brazil fossil fuel subsidies outpace renewables: Study

Sao Paulo, 29 October (Argus) — Brazil's spending on fossil fuels subsidies in 2023 was around 4.5 times larger than its spending on renewables subsidies, according to a study published by the institute of socioeconomic studies Inesc. The country spent R99.8bn ($17.49bn) in subsidies for both fossil fuels and renewables in 2023, a 3.6pc increase from 2022, the study said. Of the total, R81.74bn were related to fossil fuels — a 0.5pc decrease from a year prior — while R18.06bn went to renewable sources, a near 27pc hike from 2022. The slight fossil fuel subsidies reduction was due to the return of taxes on gasoline, such as the VAT-like PIS/Confins, the study said. "The government lost the chance of providing greater relief for public coffers as it decided to maintain exemptions for diesel," it added. But while incentives to fossil fuel consumption decreased, those for exploration and production activities increased by R5.55bn. Cassio Carvalho, a co-author of the study for Inesc, said the fossil fuels subsidies will harm Brazil's energy transition. "The study indicates that consumers are bearing the subsidies for renewables through electricity bills, while the oil and natural gas industry remains untouched," Carvalho said. Ending subsidies to fossil fuels is an "unavoidable global commitment" laid out in the UN Cop 28 climate summit in Dubai, said Alessandra Cardoso, the other co-authored of the study. "What is expected of the Brazilian government is that it recognizes the problem of production subsidies as a domestic problem, the solution to which involves global reform," she said. "Brazil needs to take on this agenda as part of its leading role in the global climate scenario, especially as it will host Cop 30." Brazil will host Cop 30 in 2025 in Para's state capital Belem, on the edge of the Amazon forest. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

China’s Sinopec cuts crude runs, sales in 3Q 2024

29/10/24

China’s Sinopec cuts crude runs, sales in 3Q 2024

San Francisco, 28 October (Argus) — Chinese state-controlled Sinopec cut crude runs and product sales in the third quarter as downstream margins weakened, leading to lower profits for the quarter. Sinopec processed 5.08mn b/d (190.69mn t) of crude in the first nine months of this year. The firm set a full-year target of 260mn t (5.2mn b/d) earlier in March. It sold 3.94mn b/d (138.06mn t) of gasoline, diesel and jet in the first nine months of this year domestically and has set a 2024 target of 191mn t. This suggests it will need to further ramp up throughput and sales in the fourth quarter to meet full-year targets. Sinopec is expected to pare back refinery runs this month from last month as margins weaken. But the company's gas output grew faster than expected. Output rose by 5.6pc on the year to 3.83bn ft³/d. It set a 2024 target of 3.78bn ft³/d earlier this year, which would be a 3pc growth from a year earlier. The company has this year "adjusted utilisation rate and product mix," it said, to counter "severe challenges" from rapidly decreasing oil prices and narrowing margins for certain products during the first nine months of this year. But this still failed to stem losses in its downstream segments in the July-September quarter, including refining and chemicals. Chinese gasoline crack spreads have collapsed to -$1.22/bl on 25 October, from their summer peak of $18.68/bl on 5 August, because of weak demand exacerbated by rapid displacement in the transport sector by electric vehicles, and this is forcing refiners to cut runs and boost exports. The company's net profit fell by 55pc on the year to 8.03bn yuan ($1.12bn) in July-September, a slightly bigger drop than some analysts estimated. Refining earnings before interest and taxes (ebit) of -$0.29/bl in the quarter is the lowest level since the fourth quarter of 2022, when it fell to -$2.61/bl. The fall in July-September ebit may be partly because of crude inventory loss, although the company did not specify. The company stepped up its "oil to chemicals" and "oil to specialties" project expansions. Its combined capital expenditure (capex) of Yn28bn for its refining and chemicals segments in January-September went to expanding the refining capacity at its 540,000 b/d Zhenhai refinery in eastern Zhejiang and adding of ethylene capacity at refineries including its 470,000 b/d Maoming refinery in southern Guangdong. Sinopec 3Q 2024 results 3Q24 3Q23 ±% Profit Yn bn Profit 8.0 17.9 -55.2 Upstream 16.1 16.2 -1.0 Refining -1.0 7.3 -113.3 Marketing 5.2 9.6 -45.4 Chemicals -1.6 -3.3 -51.5 Natural gas and pipeline NA NA NA Sales mn b/d Domestic product sales 4.1 4.3 -4.4 Total product sales 5.3 5.4 -2.0 Output Crude output mn b/d 0.8 0.8 -0.2 Natural gas output bcf/d 3.8 3.6 4.7 Refinery runs mn b/d 5.1 5.3 -4.8 Gasoline output mn b/d 1.5 1.6 -0.5 Diesel output mn b/d 1.1 1.3 -14.2 Jet output mn b/d 0.7 0.7 2.8 Source: Sinopec, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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