About Positron Energy Limited

Positron Energy is engaged in Management & Technical Advisory Services of Oil and Gas Industry. They provide end to end solutions for Gas distribution to the Industries across India. They provide Management Consultancy Services like commercial and financial advisory, technical services including Project Management and O&M (Operation and Management) Services, across the Gas Sector in India. They have successfully developed a Gas aggregation business volume of 35 MMSCM (approx), especially Natural Gas. Their technical qualifications and empanelment with most industrial customers attest to their reliability and competence. Moreover, distribution of Natural gas is facilitated through common carrier pipeline networks operated by major public and private sector players in the Indian market. 

The quality certification is towards providing consultancy services, O&M services to the Oil & Gas sector. They have in-house capabilities to deliver a project from conceptualization to completion with fast turnaround time from acquisition to launch to completion, which focuses on derisking and improving return on investment. Their core competence lies in professional management and attracting and retaining talent to maximize value creation. Since incorporation, they have provided services to major companies which are engaged in the Oil & Gas Sector, including both PSUs and private companies. The Company has demonstrated a prominent presence in the Oil and Gas Sector and has developed significant expertise and competencies in this field. The Company aims to leverage its strength and continue expansion into the Oil and Gas sector lead our company to desired growth trajectory.

In addition to their operational endeavours, their business is secured with the Indian Gas Exchange (IGX) through its clearing member. This client membership enables us to source natural gas on-demand for their short-term requirements from the free market, where prices are determined through a transparent exchange mechanism. Moreover, it also provides flexibility to offload excess Gas if necessary. As at March 31, 2024, our portfolio includes a substantial daily volume of 4000-5000 MMBTU of gas from various sources. They engage in long-term contracts linked with formulas, determined through mutual discussions with their customers.

The Company has entered into collaboration agreement with ICOM North America LLC (New Hudson, MI) for installation of ICOM Dual Fuel LNG conversion systems in on-road trucks weighing over 3.5 tons in India. The new system will result in reduction in emissions with the utilization of LNG contributing to environmental sustainability. The dual-fuel system allows for cost-effective operation with the flexibility of fuel ratios. The product has undergone thorough testing under Indian operating conditions, ensuring optimal performance and reliability. They are currently in the process of obtaining technical approvals from the Automotive Research Association of India (ARAI).

OIL AND GAS INDUSTRY: INDIAN PERSPECTIVE
The oil and gas sector is among the eight core industries in India and plays a major role in influencing the decision-making for all the other important sections of the economy. 

India’s economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment. India retained its spot as the third-largest consumer of oil in the world as of 2022.

The Government has adopted several policies to fulfil the increasing demand. It has allowed 100% foreign direct investment (FDI) in many segments of the sector, including natural gas, petroleum products and refineries, among others. The FDI limit for public sector refining projects has been raised to 49% without any disinvestment or dilution of domestic equity in existing PSUs. Today, it attracts both domestic and foreign investment, as attested by the presence of companies such as Reliance Industries Ltd (RIL) and Cairn India. The industry is expected to attract US$ 25 billion investment in exploration and production by 2022. India is already a refining hub with 23 refineries, and expansion is planned for tapping foreign investment in export-oriented infrastructure, including product pipelines and export terminals.

Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation. Crude oil consumption is expected to grow at a CAGR of 5.14% to 500 million tonnes by FY40 from 202.7 million tonnes in FY22. In terms of barrels, India’s oil consumption is forecast to rise from 4.05 MBPD in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050. Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and petrol covering 58% of India’s oil demand by 2045. Demand is not likely to simmer down anytime soon, given strong economic growth and rising urbanisation. 

Indian refiners would add 56 million tonnes per annum (MTPA) by 2028 to increase domestic capacity to 310 MTPA. 

India is planning to double its oil refining capacity to 450-500 million tonnes by 2030. 

Energy demand of India is anticipated to grow faster than energy demand of all major economies globally on the back of continuous robust economic growth. Moreover, the country’s share in global primary energy consumption is projected to increase to two-fold by 2035.

Natural Gas Industry
As per recent GOI declarations, in India the share of natural gas in energy basket is 6.7%. The Government has set a target to raise the share of natural gas in energy mix to 15% in 2030. Various steps have been taken by the Government in this direction. These, inter-alia, include expansion of National Gas Grid (24,623 kms operational and 10,860 km under construction), expansion of City Gas Distribution (CGD) network (300 Geographical Areas (GAs) with Minimum Work Plan of approx. 12.50 crore PNG connections, 17,751 CNG Stations and 5.42 lakh inch-km pipeline by 2023) and setting up of Liquefied Natural Gas (LNG) Terminals (current 47.7 MMTPA capacity to 66.7 MMTPA),etc. As regards increase in production of Natural Gas, there has been approx 20% increase in natural gas production from 28.7 billion cubic meters (BCM) in 2020-21 to 34.45 BCM in 2022-23. For increasing domestic gas production, Government has notified Hydrocarbon Exploration and Licensing Policy (HELP) on 30th March 2016. Government further notified policy reforms on 28th February 2019 with concessional royalty/royalty holiday provisions, relaxed approvals, reduced revenue share from Category II & III type of basins for early monetization of fields along with Marketing and Pricing freedom for natural gas.

POSITRON ENERGY LIMITED STRENGTHS 
1. Customized Solutions and Services
2. Adaptability to Changing Gas Pricing Landscape
3. Embracing Government Reforms
4. Diversified Portfolio for Future Growth
5. Experienced Leadership and Execution Team

POSITRON ENERGY LIMITED STRATEGIES
1. Continued focus on maintaining high quality standards in their Consulting Services for oil and gas companies and expanding this segment of their business.
2. Developing new applications to meet the market demand
3. Expanding Market Access
4. Overcoming Regulatory and Market Challenges Strategy
5. Optimizing underutilized pipeline infrastructure strategy
6. Reform Driven Growth Strategy
7. Adapting to the changing natural gas pricing landscape strategy
8. Expanding the business in the industrial & commercial sector for natural gas.
9. Re-Alignment of Old Gas Contracts

POSITRON ENERGY LIMITED RISK FACTORS & CONCERNS
1. The Company is dependent on a few numbers of customers for sales.
2. They have executed Gas Sales Agreements (GSAs) with their Suppliers.
3. They are dependent on third parties for transportation of natural gas.
4. Company is obtaining approximately 80% of its total supplies of natural gas from two major private suppliers of the Country.
5. They are dependent on Government policies.
6. Prices of alternate fuel changes frequently.