According to
industry experts, the consumption of petroleum products in the month of April
was only 30-40 per cent of what it had been prior to the lockdown. Due to this,
refineries were forced to bring down their capacity too.
Image used for representational purpose. Photograph:
Andy Buchanan/Reuters.
The steep decline in fuel
consumption due to the Covid-19 lockdown had pulled down India’s refinery
production during the month of April by 29 per cent to 14.7 million tonne (MT),
from 20.7 MT in April 2019.
Similarly, due to lower gas
off take by consumers, India’s natural gas production in April 2020 was 19 per
cent down, at 2,161 million metric standard cubic meter (mmscm) as against
2,656 mmscm during the same time last financial year.
The decline in natural gas production was also due to force majeure clauses invoked by several consumers.
According to industry
experts, the consumption of petroleum products in the month of April was only
30-40 per cent of what it had been prior to the lockdown. Due to this,
refineries were forced to bring down their capacity too.
During the month,
production from refineries run by public sector entities saw 37 per cent drop
in production to 7.1 MT. The production from refineries of Indian Oil
Corporation (IOC) was seen 45 per cent down at 3 MT, compared to 5.5 MT in
April 2019.
Similarly, production from
refineries of Bharat Petroleum Corporation (BPCL) was down 38 per cent.
However, Hindustan Petroleum Corporation (HPCL) saw 21 per cent increase in
production.
Production in joint venture
refineries during April, 2020 were 9.3 MT which was 46 per cent lower than the
production achieved in the corresponding month of last year. Production
in private refineries during the month was down 13 per cent compared to the
same time last year.
On the other hand, natural
gas production in by Oil and Natural Gas Corporation in the nomination block
during April 2020 was 1,725.69 mmscm, 15 per cent lower than April 2019. The
shortfall in gas production was primarily due to less gas off take by consumers
due to Covid-19 lockdown.
Natural gas production by
OIL in the nomination block also dipped 10 per cent compared to actual
production in April 2019.
“Reasons for this shortfall
by OIL include loss of potential in Deohal area due to presence of carbon
dioxide in production stream and less gas off take by consumers due to Covid19
lockdown,” said a government statement.
Natural gas production by
private joint ventures in production sharing contract (PSC) regime during
April, 2020 was 233.59 mmscm, 40.67 per cent lower than production during the
same time last year.
Crude oil production during
April 2020 was 2.5 MT down 6.35 per cent lower than the production achieved in
April 2019.
Crude oil production by
ONGC in the nomination block during April was 1.68 MT which was 0.53 per cent
lower when compared with actual production in April 2019.
According to a government
statement, the reasons for shortfall in production include closure of wells in
the Western Offshore due to less offtake by GAIL due to Covid-19 Lockdown and
restriction of movements for field operations in Onshore fields due to Covid-19
lockdown.
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Economy