Fuel dynamics: Constantly changing – 2 Mar 2023

The dynamics which determine the usage of liquid fuels and gas are always shifting.

And alternate fuel usage costings are important parameters to watch out for.

India focus is on ethane, RIL imports vast quantities and now GAIL is trying to follow on GAIL's footsteps.

In Morbi it is mostly propane that is used.

Even between, say ethane and naphtha for example, the economics keep shifting.

Currently, the spreads are favouring naphtha use over the last six months.

Costly propane could enable feedstock switching as operators of flexi-crackers — chemical production units that can switch between naphtha and propane as a feedstock — aim to maximize the use of naphtha. Interestingly however, ethane is what is sought to be imported by GAIL and is imported by RIL, and ethane prices are usually lower than propane.

Gas sellers need to keep these facts in mind in India as gas is a substitute too in India's dual feed furnaces

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