Petroleum products import export indian option
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Petroleum products import export indian option Petroleum products import export indian option Presentation Transcript

  • PETROLEUM PRODUCTS
    IMPORT & EXPORT
    IndianOption
    A Presentation By
    Muzahid Khan (muzahidkhan123@gmail)
    UNIVERSITY OF PETROLEUM & ENERGY STUDIES
  • Highlights
    • International Trading of Petroleum Products
    • The Indian Scenario
    • India-The Future Refinery Hub for exports
  • Internationally traded Petroleum Products
    • Motor Gasoline
    • Jet Fuel
    • Kerosene
    • Distillate Fuel Oil
    • Residual Fuel Oil
    • Liquefied Petroleum Gas
  • Major Refining Hubs
    Rotterdam
    Refinery Capacity: 64 MMTPA
    Refinery product surplus: 62 MMTPA
    Product Export: Europe hinterland, US
    US Gulf Coast (USGC)
    Refinery Capacity: 385 MMTPA
    Refinery product surplus: 106 MMTPA
    Product Export: Far East, Asia, Europe
    Middle East
    Refinery Capacity: 340 MMTPA
    Refinery product surplus: 92 MMTPA
    Product Export: Far East, Asia, Europe
    Singapore
    Refinery Capacity: 67 MMTPA
    Refinery product surplus: 40 MMTPA
    Product Export: Asia Pacific
  • Total Exports and Imports of Refined Petroleum Products
    WORLD TOTAL
    Imports: 21,083.59
    Exports: 21,856.61
    Source: EIA (2008)
  • World Oil Refining
    World Refining capacity 1.1.2008
    World Refining capacity & thruput
    1980-2008 (mbpd)
    88.6
    Refinery capacity
    Total: 88.6 mbpd
    (4431 MMTPA)
    Sources: BP Stats 2009
    • World oil demand grown faster than refining capacity-better capacity utilization
    • World average refy capacity utilization moves around 75% (1980) to 87% (2008)
    • USA: Refining capacity declining, reached peak of 18.6 mbpd in 1980.
  • Regional product balance, 2020
    Russia
    Deficit: 13
    MS: 7
    Jetkero: 4
    Others: 3
    Surplus: 71
    LPG: 1
    Naphtha: 2
    HSD: 34
    FO: 34
    Net: (+) 58
    All figures in MMTPA
    North America
    Deficit: 43
    MS: 24
    Jet kero: 19
    Surplus: 68
    LPG: 19
    Naphtha: 15
    HSD: 5
    FO: 14
    Others: 15
    Net: (+) 25
    Europe
    Deficit: 145
    LPG: 17
    Naphtha: 23
    Jet kero: 54
    HSD: 49
    Surplus: 133
    MS: 126
    FO: 7
    Net: (-) 12
    Middle East
    Deficit: 31
    MS: 26
    Others: 5
    Surplus: 188
    LPG: 85
    Naphtha: 44
    Jet/kero: 19
    HSD: 17
    FO: 23
    Net: (+) 157
    Asia Pacific
    Deficit: 419
    LPG: 40
    Naphtha: 56
    MS: 107
    Jet kero: 26
    HSD: 86
    Others: 28
    Surplus: 0
    Net: (-) 419
    Africa
    Deficit: 71
    LPG: 5
    MS: 24
    Jetkero: 3
    HSD: 38
    Others: 1
    Surplus: 36
    Naphtha: 11
    FO: 25
    Net: (-) 35
    Latin America
    Deficit: 50
    Naphtha: 7
    MS: 10
    HSD: 32
    Others: 1
    Surplus: 30
    LPG: 5
    FO: 25
    Net: (-) 20
    • By 2020, world would be net product deficit @ 247 MMTPA
    • 100 MMT surplus (LPG:49 & Fuel Oil:51)
    • 347 MMT deficit (Naphtha:15, MS:72, Jet/kero:88, HSD:147 & Others:25)
    Source: EIA
  • Highlights
    • International Trading of Petroleum Products
    • The Indian Scenario
    • India-The Future Refinery Hub for exports
  • Crude Oil
    Import
    Product
    Export
    Product
    Import
    India:Imports & Exports
    US$ Billion
    • Gross crude and petroleum products
    • Crude/product Imports : ~ 28% of total imports
    • Product Exports : ~ 8% of total exports
    Source: PNGRB
    India - A Net Exporter of Products
  • Total Exports and Imports of Refined Petroleum Products in India
    Net Imports: 220.45
    Net Exports: 450.70
    Source: EIA (2008)
  • Refineries in India
    BHATINDA
    (9.0)
    PANIPAT
    (12.0+3.0)
    DIGBOI
    (0.65)
    BONGAIGAON
    (2.35)
    MATHURA
    (8.0)
    NUMALIGARH
    (3.0)
    GUWAHATI
    (1.0)
    BARAUNI
    (6.0)
    BINA
    (6.0)
    BARODA
    (13.7)
    JAMNAGAR
    (RIL 33.0 + 29.0)
    ESSAR 10.5+ 3.5)
    HALDIA
    (6.0+1.5)
    PARADEEP
    (15.0)
    MUMBAI
    (BPC 12.0)
    (HPC 5.5+ 2.4)
    VISAKH
    (7.5+0.8)
    TATIPAKA
    (0.08 + 0.08)
    MANGLORE
    (9.69 +5.31)
    Existing IOC
    CHENNAI (9.5+ 1.7)
    Subsidiaries of IOC
    KOCHI
    (7.5 + 2.0)
    Others
    NARIMANAM (1.0)
    New / Additions
  • India : Product Demand & Refining Capacity
    Gap between Refining Capacity & Product Demand
    140
    100
    29
    Surplus refining capacity is expected to increase further by 2030
    India will continue to be product surplus
    Import/Export requirement for crude/products to be quite substantial
    Source: Draft XI Plan Demand Document
  • Govt. of India Policies
    Administered Pricing Mechanism (APM) dismantling effective 1.4.2002
    Gas Pricing
    NELP
    Policy on Refining
    Auto Fuel Policy
    Policy on Marketing of Petroleum Products
    Gas Pipeline Policy
    Petroleum Product Pipeline Policy
    FDI Policy
  • Highlights
    • International Trading of Petroleum Products
    • The Indian Scenario
    • India-The Future Refinery Hub for exports
  • Located in the major maritime route from Middle East
    Established refineries on western coast
    Geographical advantage to serve western and eastern markets
    Strong domestic demand provides an effective edge against fluctuations in exports
    Strategic Location
  • Cost Competitiveness
    Cash Operating costs
    Cost competitiveness driven by lower manufacturing wages
    Low capital and cash operating costs
    Access to large, technically skilled manufacturing base and workforce
    Source: A T Kearney
  • Refinery Configuration
    For Indian companies, the surplus capacity comes at a time when the international refining industry witnesses capacity crunch
    New capacity creation to address the current refining challenges
    Above measures contribute in improving the refining margins
  • Integration:Petrochemical Industry
    • Major capacity additions post 1991 have significantly reduced import dependence
    • Petroleum Chemicals and Petrochemicals Investment Regions (PCPIR) being set up
    • Major capacity additions done by IOC and RIL
    Aggregate Petrochemical Demand in ‘000T
    Demand for polymers alone has the potential to reach 12.5 MMT by the end of the 11th Five-Year Plan, growing at a CAGR of 18%.
    Growing rapidly at 1.5 - 2.5 times the GDP growth rate
  • World’s 6th largest refiner with 3% of world oil consumption
    Over 10,000 KM products pipeline network
    Excellent maritime infrastructure:
    POL facilities at 14 locations – 39 berths
    2 barge jetties
    8 SPMs
    Infrastructure
  • India as a refining hub
    competing with Singapore & Middle East
    Singapore (MMTPA)
    Refinery Capacity: 67
    Refinery product surplus: 40
    Product supplied to: Asia Pacific
    India
    Middle East (MMTPA)
    Refinery Capacity: 340
    Refinery product surplus: 92
    Product supplied to: Asia Pacific/Europe
  • Way Forward
    Leverage strategic advantage of coastal locations
    Consolidate with current/proposed location
    Proposed PCPIRs / SEZs
    Cost competitiveness to position the product in target markets
    Integration with petrochemicals, derivative and utility units, for maximizing value addition
    Environmental norms and product quality specs to meet the export markets
    Opportunity for India to emerge as a refining hub appears to be real and attractive
  • References
    • PNGRB India
    • MOPNG
    • EIA