ENERGY UPDATE

Given the ‘Make in India’ thrust, he expects large production to be from within India. “J M Baxi Heavy is and will increase capacities to match demand, with the objective of increasing efficiency and maintaining on-time deliveries. We are focused on effective asset utilization and knowing the geographic hotspots we need to concentrate on. Movement of equipment is our core expertise whether it is greenfield, expansion or refurbishment of refineries. While India is a priority for us, we are also looking to countries like Europe, Korea and China which have most of the refineries and have license-based equipment.”

Trans Global Projects Group’s Charnok expresses a similar degree of optimism for providers of project cargo transportation and heavy-lift services. Asked if the sector has adequate capacity to meet the anticipated demand in India, Charnok replied with an emphatic, ‘yes,’ singling out components as presenting the biggest opportunity for the project cargo sector. “We anticipate equipment and components will be sourced from

Korea and China on the basis of low cost and relatively low freight rates compared to ex-U.S. or ex-Europe.”

Meanwhile, offshore energy activity should not be overlooked. This is because the upcoming capacity expansion is not limited to activity on land, but also extends to offshore initiatives. One example is a collaboration cemented between ExxonMobil and India’s Oil and Natural Gas Corporation, or ONGC, aimed at deepwater exploration off the east and west coasts of India. The collaboration areas focus on the Krishna Godavari and Cauvery Basins in the eastern offshore and the Kutch-Mumbai region in the western offshore.

During an agreement signing ceremony, India’s Petroleum Secretary Shri Pankaj Jain said: “Partnerships between a national oil company like ONGC and an international oil company like ExxonMobil will bring tangible benefits in the entire energy value chain and open new vistas to [the] exploration and production paradigm. This collaboration will boost our confidence in going further ahead in deepwater exploration in the east coast of India where the potential is quite significant.”

“We are building strong alliances with leading Indian firms to position India for a new era of economic growth, improved living standards and reduced emissions. This is the time to bring together the best of Indian and international industry to put natural gas to work for India,” added Bill Davis, CEO of ExxonMobil Gas (India) Private Limited.

With demand pushing expansion of refining capacity and project approvals being processed at a steady pace, there certainly are reasonable grounds to assume that there will be steady demand for project cargo transportation and heavy-lift services in India well beyond 2026. BB

Thomas Timlen is a Singaporebased analyst, researcher, writer and spokesperson with over 30 years of experience addressing the regulatory and operational issues that impact all sectors of the maritime industry.