Year-End- Review of Ministry of Petroleum & Natural Gas

Dec 23,2021

The Ministry of Petroleum & Natural Gas is concerned with exploration and production of Oil & Natural Gas, refining, distribution and marketing, import, export and conservation of petroleum products. Oil and Gas being the important import for our economy, many initiatives have been taken by the Ministry for increasing production and exploitation of all domestic petroleum resources to address the priorities like Energy Access, Energy Efficiency, Energy Sustainability and Energy Security. Following initiatives have been taken up by the Ministry in the current year:

Pradhan Mantri Ujjwala Yojana: PMUY was launched in May, 2016 to provide 8 crore deposit free connections to poor women. The second phase of the scheme Ujjwala 2.0 has been launched by Prime Minister in the Mahoba District of Uttar Pradesh on 10th August, 2021 on pan-India basis to provide additional one Crore LPG connections, along with free first refill and stove. As on 01.12.2021, a total of 80.5 lakh connections have been released under this scheme. This Ministry is monitoring the implementation of the scheme on a daily basis.

Refill Portability: In order to create competition among distributors in the interest of customer service, refill portability was implemented which enables customer to choose his/ her distributor at the time of booking the refill. In such a scenario, a customer not satisfied with services of his parent distributor can choose any distributor from the list of distributors of the same company serving in his locality/area. This would result in better customer satisfaction and impetus for distributors for providing better service. With customers exercising the right to choose the delivery partner, it further motivates the distributors to provide best in class services to the customers and improve their performance ratings. The flexibility to choose the Distributor for each refill further expands the bouquet of digital services being offered to LPG customers.

Hassle free Non-subsidised LPG Connection (Across the counter): To ease out the process of issuance of new connection, LPG Non-subsidised domestic connection can be issued across the counter with the submission of requisite proof of ID and self-declaration of address by the customer. In case customer wants to submit documents to avail subsidy after taking non-subsidised connection, provision is also enabled to convert to subsidised connection, by submitting Proof of Address other than self- declaration subject to OMC and NIC dedupe clearance.

Development of Non-monetized Discoveries: A total of 09 discoveries {03 from nomination regime (03 from ONGC) and 06 from PSC} have been monetised as on November, 2021. Ministry of Petroleum and Natural Gas vide resolution dated 8.11.2019 revised the guidelines for authorization to market transportation fuels, which would promote ease of doing business and boost private players to invest in retail sector. The said resolution applies for marketing of only Motor Spirit and High Speed Diesel for “Bulk” and “Retail” business. Further, under the New Guidelines, authorization has been given to 10 Companies as on 16th December, 2021.

104643189104. Gas Grid: A total of 21735 Kms of pipelines have been laid upto September, 2021 as part of the Gas Grid.

Ethanol Blended Petrol (EBP) Programme: During Ethanol Supply Year (ESY) 2020-21, 302.30 crore litre of Ethanol has been procured by OMCs for blending purpose till 30.11.2021. The feedstock wise enhanced ethanol prices have been announced for the ongoing Ethanol Supply Year (ESY) 2021-22- from C heavy Molasses route at Rs.46.66/- per litre; from B heavy Molasses route at Rs.59.08/- per litre; from sugarcane juice/ sugar/ sugar syrup route at Rs.63.45/- per litre; from Maize and damaged food grains route at Rs.52.92/- per litre and from surplus rice available with FCI route at Rs.56.87/- per litre.

Biodiesel Blending Programme: On 4th May, 2021, the Minister of Petroleum & Natural Gas remotely flagged off the first supply of UCO (Used Cooking Oil) based Biodiesel blended Diesel under the EOI Scheme from Indian Oil’s Tikrikalan Terminal, Delhi. The GST rate on biodiesel, which is sold to Oil Marketing Companies for blending with diesel, has been reduced from 12% to 5% by the Ministry of Finance w.e.f. 1st October, 2021.

Sustainable Alternative Towards Affordable Transportation (SATAT): “Sustainable Alternative Towards Affordable Transportation (SATAT)” initiative was launched on 1st October 2018 wherein Oil and Gas Marketing Companies are inviting Expression of Interest (EoI) from potential entrepreneur to procure Compressed Bio Gas (CBG). Under this initiative, 2700 Letters of Intent (LoIs) have been issued till 15th December 2021. Supply of CBG initiated from 16 plants through 26 ROs and injection of CBG in CGD network at one place in Gujarat.

Reduction of Regulatory Compliance Burden: Reducing compliance burden, simplification of procedures and improving ‘Ease of Doing Business’ is a continuous process in the Petroleum & Natural Gas sector. In the special campaign launched by the Government in the year 2021, a total number of 276 compliances were reduced and procedures simplified.

Performance Indicator of MoP&NG: Production as on 01.12.2021 is 42.65 MtoE (Oil – 19.88 MMT; Gas – 22.77 BCM). Total of 105 exploration blocks covering an area of 1,56,580 sq km awarded till date. 50 discoveries monetized till 30.11.2021. INR 2,75,781 Cr spent on Hydrocarbon infrastructure till 30.11.2021. As on 01.12.2021, 80.5 Lakh LPG connections released against 1.29 Cr cleared application under Ujjwala 2.0. Indian Gas Exchange launched in June 2020. 21,735 km gas pipeline laid upto Sept., 2021. A total of 83.7 Lakh PNG (D) connections and 3532 CNG stations as on 31.10.2021. CAPEX in overseas assets till date is INR 22,681 Cr. Production of ~56 MMToE from overseas O&G assets added since FY 19 (achieved 50% of the target).

DSF-III: DSF-III was launched on 10th June 2021 by the Minister of Petroleum & Natural Gas. Thereafter on 30.07.2021, a Promotional Road show on DSF-III was organized in presence of Hon’ble Minister of Petroleum & Natural Gas, Shri Hardeep Singh Puri.

Setting up of PSA Plants : In view of perturbing situation created due to second wave of Covid-19 and shortage of oxygen supply in various States across India, as per the directions of MoH&FW, 13 Oil PSUs were assigned 110 Hospitals in States of Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Odisha, Karnataka, Kerala, Gujarat, Nagaland, Arunachal Pradesh, Delhi and Maharashtra for setting up a Pressure Swing adsorption (PSA) Oxygen Plants of adequate capacity under CSR activity so as to appropriately address the oxygen shortage in these Hospitals/Districts. CPSEs are setting up PSA Plants of combined capacity of 98840 LPM. A total of 101 Plants are commissioned and others are at later stage of commissioning.

Setting up of Jumbo facilities: In some refineries, LMO (Liquid Medical Oxygen) is not produced, but Oxygen at low pressure is available. This cannot be liquefied or transported via cylinders. As this Oxygen can be used for medical purposes, hence jumbo Covid care Facilities have been set up adjacent to the refinery premises in coordination with the State Govts. The details of such facilities are as below:

Gasoline Desulphurization (GDS) Unit under CPCL-fuel Quality up-gradation project has been dedicated to the nation by Hon’ble Prime Minister through video conferencing on 17.02.2021. INDMAX project at Bongaigaon Refinery of IOCL was dedicated to nation on 22.02.2021. Propylene Derivatives Petrochemical Project (PDPP) at Kochi Refinery of BPCL was dedicated to the nation by Hon’ble Prime Minister on 14.02.2021.

******

YB/RKM