Oil & Gas Procurement

Oil & Gas procurement refers to the process of acquiring crude oil from various sources to meet the demand of refineries or end-users. The procurement process involves a number of activities, including identifying potential suppliers, negotiating contracts, and ensuring timely delivery of the product.
Oil can be procured from a variety of sources such as domestic production, imports, or through long-term contracts with international suppliers. The procurement process can vary depending on the source of the oil, the location of the supplier, and the quantity required.
Some common methods of oil procurement include spot purchases, term contracts, and futures contracts. Spot purchases are made on a one-time basis, often when there is an urgent need for oil. Term contracts involve a longer-term commitment to purchase a certain quantity of oil over a specified period of time, while futures contracts involve purchasing oil at a fixed price for delivery at a later date.
Oil procurement is a critical aspect of the oil and gas industry, as the availability and price of oil can have a significant impact on the profitability of companies in the sector.

Our business procurement process involves various stages such as identifying suppliers, negotiating contracts, arranging for transportation, and ensuring compliance with safety regulations.
The first step in LPG procurement is to identify reliable suppliers who can provide the required volume and quality of LPG at a competitive price. This involves evaluating the supplier's reputation, production capacity, and track record of meeting delivery schedules.
Once a supplier is selected, the next step is to negotiate the terms of the contract, including the price, volume, delivery schedule, and payment terms. It is important to ensure that the contract includes clauses that protect the buyer's interests, such as quality assurance, safety, and compliance with environmental regulations.
After the contract is signed, arrangements are made for the transportation of LPG from the supplier's production facility to the buyer's point of use. This involves selecting the appropriate mode of transport, such as trucks, rail, or ships, and ensuring that the transport company has the necessary licenses and permits.
Throughout the procurement process, it is important to comply with safety regulations to prevent accidents and ensure the safe handling of LPG. This includes training personnel on safe handling procedures, conducting regular safety audits, and complying with all relevant safety regulations and standards.

LNG is a cleaner and more efficient alternative to traditional fossil fuels such as coal and oil, and its use is increasing around the world.
There are several methods of LNG procurement, including long-term contracts, spot purchases, and tolling agreements. Long-term contracts involve the purchase of LNG for a set period of time, typically 10-20 years, at a negotiated price. Spot purchases involve the purchase of LNG on a short-term basis, usually within a few months, and are subject to market prices. Tolling agreements involve the exchange of LNG for natural gas, with the LNG supplier providing liquefaction services in exchange for natural gas.
The procurement process typically involves the following steps:

Identifying the need for LNG based on energy demand forecasts and other factors.
Identifying potential suppliers and evaluating their capacity, reliability, and pricing.
Negotiating the terms of the procurement, including price, delivery schedule, and quality requirements.
Entering into a contract or agreement with the chosen supplier.
Managing the delivery and use of the LNG, including transportation, storage, and distribution.

LNG procurement is subject to various regulations and compliance requirements, including those related to safety, environmental protection, and import/export laws.

Hydrogen (H2) can be procured from a variety of sources including natural gas, coal, and water, through processes such as steam methane reforming, coal gasification, and electrolysis. The procurement process can depend on factors such as the availability and cost of feedstocks, the efficiency and cost of the production process, and the intended end use of the hydrogen. Some common methods of hydrogen procurement include contracting with suppliers, building or purchasing hydrogen production facilities, and investing in research and development to improve hydrogen production and storage technologies.

CNG stands for compressed natural gas, which is a fuel source used in vehicles and industrial applications. CNG is a type of natural gas that is compressed to a pressure of around 3,600 psi to make it easier to store and transport.
CNG procurement involves the process of obtaining compressed natural gas from suppliers for use in vehicles or industrial processes. This can involve negotiating contracts with natural gas producers or distributors, selecting the most cost-effective suppliers, and arranging for the delivery of the gas to the required locations.
CNG procurement may also involve the purchase or lease of equipment such as compressors and storage tanks, as well as the installation and maintenance of this equipment. In addition, procurement teams may need to ensure that the natural gas being procured meets required quality and safety standards, and comply with relevant regulations and guidelines.

Biogas is a renewable energy source that is produced through the breakdown of organic matter such as agricultural waste, food waste, animal waste, and sewage sludge, in the absence of oxygen (anaerobic digestion). The primary component of biogas is methane, which is a potent greenhouse gas. By capturing and utilizing biogas, it can be used as an alternative to traditional fossil fuels in a variety of applications, including electricity and heat generation, transportation, and industrial processes. The production of biogas also provides benefits such as waste reduction and nutrient recycling.

Synthetic Natural Gas (SNG), also known as substitute natural gas or synthetic methane, is a type of fuel gas that is produced from various carbon sources such as coal, biomass, municipal solid waste, and natural gas through a gasification and methanation process.
The gasification process involves heating the carbon source to high temperatures in the presence of oxygen and steam to produce a syngas consisting of hydrogen and carbon monoxide. The syngas is then subjected to methanation process where the hydrogen is reacted with carbon monoxide to produce methane (CH4), the main component of natural gas.
SNG can be used as a substitute for natural gas in various applications, such as heating, power generation, and transportation. It has similar properties to natural gas and can be transported through existing natural gas pipelines.