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Feb 2016

The consumption of all petroleum products registered a growth of 12.7 percent in January, 2016 as compared to that in January, 2015.
 8Except for SKO and LDO, all other products recorded a positive growth.
 8On cumulative basis, a growth of 9.9 percent was registered for the period April 2015 to January 2016.
 8SKO and Lubes/Greases are the only products which have recorded a negative growth of -3.5 percent, and -2.6  percent respectively during the period April 2015 to January 2016.
 8Recovery from flood related contractions, better weather and stronger underlying demand were said to be the main drivers during the month. Export order inflow strengthened, employment was up, and consumer goods remain the principal growth engine. All these factors drove sales of petroleum products.
 8Low commodity prices, a consumption boost from the Seventh Pay Commission and an expected normal monsoon in 2016 along with revival of rural demand are likely to spur sales in the months ahead.
 Click on our Report section for more. Details
MS consumption during the month of January, 2016 recorded a growth of 11.4 percent when compared to same month in the previous year
 8Cumulatively, petrol consumption recorded a growth of 14.0  percent for the period April 2015 to January 2016.
 8Despite the move towards dieselization earlier on, enhanced metro ridership and odd-even vehicles on road in Delhi, the sale of MS has continued to follow the high trajectory of growth, clearly indicating that growth in petrol consumption is driven by healthy growth in the automobile Industry.
 8Further, the declining prices of MS have resulted in a greater usage of cars and two wheelers, with consumer preference for petrol driven vehicles.
 8The changing economics of oil and narrowing price gap between diesel and petrol has resulted in a shift again towards petrol driven cars.
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Bitumen consumption registered a growth of 28.9 percent during the month of January, 2016 and cumulatively it rose 13.2 percent for the period April 2015 to January 2016.
8The government plans to develop a total of 66,117 km of roads under different programs such as National Highways Development Project (NHDP), Special Accelerated Road Development Program in North East (SARDP-NE) and Left Wing Extremism (LWE) initaitve, and has set an objective of building 30 km of road a day from 2016.
8High consumption of Bitumen is attributed to the major repair and road widening projects being undertaken across the country.
Some of the major projects that are underway are as follows:- 
-- In Rajasthan, a four lane-mega highway between Kota-Jhalawar has been approved by the government and the work has started.
-- In Haryana, four laning of NH-10 between Hissar and Rohtak is underway.
-- Four lane expansions are also in progress in state of Maharashtra on NH-166, 211, 13 and 9.
-- Road repair projects post floods are in full swing in Tamil Nadu. NH widening projects in different stretches of Bihar, Jharkhand and West Bengal are also in progress.
FO and LSHS
8FO and LSHS consumption registered a growth of 13.7 percent during January, 2016. On cumulative basis, there has been a growth of 8.2 percent for the period April 2015 to January 2016.
8The growth is mainly from the steel and other general trade sectors. The consumption of LSHS however went down due to shift to natural gas by major customers like power and fertilizer industries.
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HSD consumption in the country recorded a growth of 8.0 percent during the month of January, 2016 as compared to January, 2015 and a cumulative growth of 6.4 percent for the period April 2015 to January 2016.
 8Diesel growth could have been better but there was a price reduction from 1st February, 2016, resulting in low inventory with dealers towards the month end.
 8Falling diesel prices and increasing manufacturing and infrastructure activities are helping fleet operators to deploy more vehicles. Medium and heavy commercial vehicles sales recorded a 33.5  percent growth during January, 2016.
 8Also there has been a growth of 4.9 percent in  port traffic for the month of January, 2016, leading to higher diesel consumption
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On month on month basis, natural gas consumption saw a marginal increase of 1.81 percent in January, 2016 as compared to January, 2015.
 8In terms of volumes, total consumption in January, 2016 was 3,137 MMSCM as compared to 3,081 MMSCM during January, 2015.
 8On cumulative basis (April-Janaury), gas sales declined by 2.64 percent to 31,265 MMSCM from 32,115 MMSCM during the same period last year predominantly due to reduction in domestic gas production and lower off-take of gas in core sectors.
 8There was a net increase in consumption by power sector to the tune of 6.54 percent from 683.31 MMSCM in January, 2015 to 728 MMSCM in January, 2016.
 8Whereas, growth in fertilizer sector remained flat during the month as compared to the same month last year.
 8CGD sector showed a growth of 32.5 percent during January, 2016.
 8From a consumption level of 345 MMSCM in January, 2016, it increased to 457 MMSCM in January, 2016 mainly due to increase in off-take by CGD companies in all the regions. However on cumulative basis, overall consumption growth during April 2015 to January 2016 remained negative at around 1 percent declining to 3504 MMSCM as compared to 3,535 MMSCM during the same period last year.
 Click on our Reports section for more. Details
Petcoke consumption registered a growth of 28.2 percent during January, 2016 and a cumulative growth of 22.7 percent during the period April 2015 to January 2016.
 8Multi-fuel cement plants use petcoke for their production and fall in prices of petroleum products makes it very lucrative to use the feedstock..
 LDO
 8LDO consumption recorded a de-growth of -14.1 percent in the month of January, 2016 and a growth of 11.0 percent on cumulative basis for the period April 2015 to January 2016.
 8The month wise demand also fluctuates depending on its requirement at power plants for boiler restart after trips
 8Moreover, it is also extensively used in various types of furnaces and and a slow down in the manufacturing industries lead to a fall in consumption
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Naphtha consumption recorded a growth of 22.8 percent during the month of January, 2016 and a growth of 23.2 percent on cumulative basis for the period April 2015 to January 2016.
 8Growth is on account of higher use of Naphtha by the petrochemical and fertilizer sectors.
 ATF 
 During January, 2016 the growth in consumption of ATF was 10.0 percent and on cumulative basis. A growth of 8.2 percent during the period April 2015 to January 2016 was recorded.
 8Passengers carried by domestic airlines during January, 2016 were 76.55 lakh as against 62.45 lakh during the corresponding period of the previous year, thereby registering a growth of 22.6 percent. 
 8The data showed that low-cost carrier (LCC) SpiceJet had the highest passenger load factor during the month under review at 92.1 percent.
 8SpiceJet was followed by budget segment players such as GoAir (84.9) and IndiGo (84.7), despite the fact the seat factor declined marginally during the period due to the end of tourist season in the month of January, 2016.
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Total LPG consumption has gone up continuously for the last 29 months in a row, recording a positive growth of 4.4 percent during January, 2016 and a cumulative growth of 7.3 percent for the period April 2015 to January 2016.
 8Packed domestic consumption registered a growth of 5.1 percent during January, 2016 and a growth of 5.7 percent during the period April 2015 to January 2016. Last year during the month of January, 2015, LPG packed had registered a growth of 8.6 percent and April 2014 to January 2015 saw a rise of 6.0 percent.
 8The Non-Domestic consumption for the thirteenth month in a row registered a positive growth. For January, the growth was 23.8 percent while the cumulative growth was 42.2 percent during April 2015 to January 2016. High growth in Non-Domestic segment can be attributed to easy availability, low price of non-domestic LPG and a curb in diversion of subsidized domestic cylinders after the launch of DBTL.
 8However, the bulk LPG and auto LPG registered a negative growth, with the foerm recording a de-growth of -18.0 percent during January, 2016 and a minor growth of 0.4 percent during the period April 2015 to January 2016, whereas auto LPG , for the second month in a row saw a downward trend in consumption of -3.4 percent in January, 2016 while recording a positive 5.4 percent growth during April 2015 to January 2016.
 Click on our Reports section for more. Details
The Economic Survey has called for market-determined arm’s length pricing for domestic gas, with an effective regulator, to provide adequate incentive for investment and also ensure compositeness in the oil and gas sector.
 8This would reflect the appropriate gas price in relation to alternative fuels, the Survey has said.
 8Eventually, the Survey feels, India should be able to set the LNG price in the region by virtue of the fact that it will emerge as a very big buyer.
 8The survey goes on to say that petroleum products and natural gas should be included under the Goods and Services Tax (GST), or at least its exclusion should not be indicated in the Constitution Amendment Bill.
 8The cess collections could be used to support construction of a network of gas pipelines, the Survey goes on to claim. The progress is somewhat constrained at present by having been linked to revival of fertilizer units and development of small industries in areas along the gas highway projects. Alternatively, in order to promote the gas pipeline network, Viability Gap Funding (VGF) may be provided for promoting pipeline assets creation and development of efficient markets.
 8Impetus is required for construction of not only cross-country pipelines but also city gas distribution. The present system of bidding by the Petroleum and Natural Gas Regulatory Board (PNGRB) is lopsided and long-drawn-out and needs to be reformed since it has constrained development of the gas network. Expansion of the PNG and CNG network could help provide gas connections to rural areas, the Survey adds.
 8The Survey says the continued rationalization of LPG subsidy is essential. It may be useful to cap subsidy to 10 LPG cylinders for each household (that being the maximum used for usual domestic cooking) while aligning taxes and duties on domestic and commercial LPG users.
 8The Survey has suggested that LNG for use in the power industry is exempt from customs duty while LNG for all other uses attracts 5 per cent customs duties. There should be no exemptions for any sector.
 8In order to develop a cost-effective and revenue-neutral mechanism for swapping of gas across producing and consuming states for the national gas grid, the Survey has called for a special tax provision for sale of natural gas under the Central Sales Tax Act 1956. Natural gas and LNG may be treated as declared goods to bring about tax parity with crude oil and make prices uniform across states.
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There is a debate going on over whether the Indian economy would have been better off transferring all the benefits of the oil price crash to consumers instead of mopping most it up by way of taxes. Only about 30-40% of the oil price fall was allowed to translate into lower petroleum prices while the rest was mopped by way of higher taxes.
 8The central government has already appropriated a benefit of around Rs one lakh crore by raising fresh indirect taxes and saving in subsidy outgo on LPG and SKP -- they have from Rs 60,000 crore in 2014-15 to Rs 28,000 crore in April-December, 2015 -- on account of the oil price fall.
 8One argument is that if this money were to have been left with the consumers, it would have translated into higher spending, giving a fillip to the economy.
 8The government argues that the extra money that has gone to shore up public investments has had a multiplier effect on the economy.
 8But the benefit of the crude price fall will not be available this year as prices are not expected to fall..
 8Then again, the Indian economy and foreign exchange earnings were buoyed the non-decline in remittance flows from foreign workers. But this may not be favourable for too long, as with oil prices remaining low in the near future, oil exporting countries in the Middle East will eventually be forced to curtail their use of foreign labour.
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Under pressure on account of lower crude prices, engineering companies around the world are entering into strategic alliances and partnerships.
8The price crash has hit these companies badly. Assets are being resized, offices are being closed and engineering offices are being resized as sales offices. Jobs are being cut.
8A new paradigm is now evolving to beat low prices for equipment and services in the oil & gas sector.
8There is now an emergence of integrated groups of service companies who are able to provide full-field development expertise.
8There is a change in asset intensity and a trend towards of commoditization of some asset classes is noticed
8The emphasis seems to be on technology that is critical in the design and operation phases
8All this is being sought to be backed up with strong project execution capabilities.
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Indian gas discoveries are only going to be tapped if gas prices are freed.
 8Not otherwise.
 8This is evident from the fact that the projected price of Henry Hub gas has been revised downwards over the next three years on account of record inventories.
 8The current projected prices are going to be in the range of $ 2.25/mcf for 2016, $ 2.50/mcf for 2017 and $ 2.75/mcf for 2018 in the base case and $1.95/mcf, $ 2.25/mcf and $ 2.40/mcf respectively, in the stress case (1 mcf = 0.9756 mmbtu).
 8At these kind of Henry Hub prices, other hub prices are unlikely to show any noticeable improvements.
 8Since the Indian gas pricing formula is based on the netback prices in major gas hubs around the world, the projected prices mean that over the next three years, the price in India will be too low too.
 8This will discourage any investments from taking place to produce gas from the discoveries off the KG Basin.
 8Just a gas price premium may also not do, as it may not be enough to shore up investment.
 8If domestic gas price is made market driven, then the ceiling is likely to be the landed price of LNG. Even at this price, some of the discoveries may still be unviable.
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A global rating agency has claimed that the current crude supply overhang in the market will be felt not just to 2016 but in 2017.
 8The agency has now revised downwards the price of crude that is likely to prevail in 2016 and 2017 from its earlier estimate.
 8No doubtp prices are going to go up over over a the two years period, albeit very modestly.
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The big challenge seems to be for engineering companies to make sub-sea developments economic in a low price environment.
 8The advise is for them to continue investing in R&D albeit through joint efforts despite the low price-low cost environment.
 8Additionally, engineering companies will have to leverage the cost deflation to their advantage.
 8The changed matrix includes early engagement with suppliers so as to standardize and optimize manufacturing operations.
 8The focus has to be on integrated solutions -- from subsea to topside, from concept to full project implementation
 8Finally, of course, there is a need to accelerate time to first oil, elminate conflicts between equipment design and fleet capabilities.
 8Eventually, the proof of the pudding is in enchancing field production so that you can get a bigger bang from the buck.
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In what is seen as an affirmation of the Indian E&P sector, engineering giant McDermott has signed an agreement to use the L&T Hydrocarbon Engineering Ltd's state-of-the-art, strategically located Kattupalli facility near Chennai for new contracts in the KG Basin.
 8The facility will be used for fabrication and setting up of a local spool base in India.
 8McDermott will use both S lay and Reel lay methods for laying of subsea pipelines.
 8The ti-up offers a unique and compelling value proposition for future east coast India deepwater developments.
 8L&T and McDermott have recently won a tender for Rs.2450 crore order for the Vashistha deepwater greenfield development.
 8The tie-up will help strengthen L&T's capabilities to provide ‘EPCI’ solutions for the offshore oil and gas industry combining customized engineering, procurement, fast-track project management and world-class fabrication and installation capabilities meeting stringent timelines and conforming to international safety standards.
 8The tie-up with McDermott will give L&T a near-invincible edge for bagging future orders from the KG basin.
 Click on Reports for more. Details
Floating Storage Regasification Units (FSRUs) are going to play an increasing role in the global LNG market.
 8This is on account of the fact that FRSUs allow for lower cost and increased speed to market.
 8Already, around 25 MMTPA of FSRU based capacity has been created in less than 5 yrs.
 8The website carries here details of existing FRSUs in the world today along with new units that are currently under construction.
 8In India too, the FRSU model is gaining acceptance.
 8FSRUs are gaining traction in 14 new LNG markets opened since 2010 and will play an important role in 25 new markets likely in the next 10 years
 8Already, new markets – such as Kuwait, Pakistan, Brazil, Egypt, Jordan -- are outstripping all demand forecasts
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The website carries here forward projections of LNG prices going up to the year 2030.
 8The standard deviations however show a wide band of prices, from less than $2/mmbtu to nearly $6/mmbtu up to the year 2020.
 8To put everything in proper perspective, the website also carries here a set of projections for gas prices costs going up to 2030 for the following indices:
 -- Henry Hub
 -- NW Europe (Long Tterm Contract)
 -- US Gulf Coast full cycle cost
 -- US Gulf Coast short-run marginal cost
 8The indices show very interesting deflections and they must be analyzed carefully by any long term supplier or buyer of gas in India.
 Click on Reports for more Details
8The big challenge for any aggregator for LNG in the county is to chose between a gas index price or a oil indexed price for LNG in India.
 8The general view point now is that Henry Hub indexed prices will have less upside cost risk than oil or Brent indexed prices.
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While new LNG projects are under construction, the large slate of "announced projects" are of variable quality.
 8Many of them based out of  Western Canada, Australia, E. Africa and Russia are high cost and they may not make the grade yet.
 8Some of them like in he Eastern Mediterranean and West Africa are "politically challenged"
 8Many projects are also running out of gas in countries such as Egypt, Indonesia, Malaysia and Trinidad
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The short term glut in LNG may not deter some determined US suppliers to continue to put up more LNG liquefaction terminals.
 8The projections are that current supply-demand gap will reverse in 2020 and the subsequent gap will widen going forward.
 8FIDs for new projects will be needed now to meet the gap four years down the line.
 8It is projected that US LNG might be a stable long-term global supply base with 20% of supply by 2022 and 30% by 2025.
 8A research paper seeks to argue that costs in energy chains will matter more than ever and low-cost, mid-scale LNG from the US will compete effectively in all global markets
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The International Monetary Fund has said that world economy is in now in pretty bad shape.
 8Financial turbulence has increased in the midst of falling asset prices.
 8The crash in oil prices has added to this depression.
 8There is a high risk of the world economy derailing altogether, the IMF has warned
 8The problem now is that the world seems to have exhausted the option of spending its way out of the slowdown as interest rates are already at rock bottom levels.
 8The risk of default by countries such as Venezuela is now looming large.
 8Can India be an exception to this global slowdown?
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India stores much more crude in its inventories than in its strategic storage facilities.
 8Tanks around the country today store  14.8 MMT of crude oil and 13.7 MMT of petroleum products.
 8And this is equivalent to 63 days of consumption of petroleum products.
 8The country is in the process of setting up 5.33 MMTPA of strategic storage.
 8Of this only the Vizag storage facility of 1.3 MMTPA is being filled up as of now.
 8Strategic reserves as of now make up an abysmally 28 days of reserves.
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There has been a 7.7% growth in the demand for bitumen in the April-January 2015-16 period and this shows an upturn in the road sector where it is used.
8But the growth has been uneven. Some states have done well, others have not.
8Andhra Pradesh saw a 24% spurt but there was a 23% fall in demand in Gujarat.
8Haryana saw a 25% decline as did Punjab at 34% whereas Tamil Nadu and Uttar Pradesh saw a rise in demand of 28% and 24.3%.
8So demand has been quite uncertain across different parts of the country.
8If the highway sector has seen an upswing, it has been uneven across India.
8Clearly a deeper look is needed on how such variations have occurred.
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The government has now claimed that two other underground strategic crude reserve facilities at Mangalore and Padur will  be completed by March and May 2016 respectively.
 8Mangalore will have a capacity of 1.5 MMT and Padur 2.5 MMT.
 8The government says that detailed feasibility reports have been prepared to set up more underground strategic storage facilities around the country.
 8They are going to come up at:
 --Chandikhol (3.75 MMT)
 --Padur(2.5 MMT)
 --Rajkot (2.5 MMT)
 --Bikaner (3.75 MMT).
 Click on Details for more Details
Is there a innovative way of filling up India's strategic storage capacities than using sovereign funds?
 8The world is already bursting in the seams with excess storage of crude as supply has significantly outstripped supply.
 8One way out is to rope in international trading companies to use this capacity.
 Click on Details on who were these companies and with whom were discussions held and what were the discussions all about. Details
UAE's national oil comnpany ADNOC and even Kuwait Petroleum Corporation have shown interest in using the capacities that are thrown open by strategic crude storage caverns.
 8Discussions were held with them and ADNOC has evinced keen interest.
 8The issues that needed hammering out boiled down to adequate tax exemption and unfettered entry and exist and a certain commitment from the India to offtake the reserves.
 8They did not want the reserves to be just "dead" stocks
 Click on Details for more Details
Strategic storage is possible by third parties only when there is a guarantee of full exemption from a myriad taxes that prevail in India.
8Then again, will the government levy a cess to be able fund upcoming strategic storage capacities as all of this capacity is unlikely to be taken up by third parties?
8These are good times to fill up the caverns at crude prices are at historic lows.
8Find out more on what kind of options are available with the government.
Click on Details for more Details
To get ADNOC into keeping its oil in Indian strategic storage facilities will require amendments to Indian tax laws.
8That would mean amending statutory acts involving:
--Service Tax
--Income Tax
--Customs Act
--GST Act
--FEMA provisions
--Local Acts
Click on Details to find out more how this is going to pan out. Details
For reference purposes, the website carries here the following details:
 8The average monthly prices of Indian basket of crude oil and Retail Selling Price of Petrol & Diesel (at Delhi) in May 2014 and February, 2016
 8The details of increase in excise duty on Petrol and Diesel since May 2014.
 8What extent of the fall in crude prices that is being passed on to consumers after central and state taxes
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For reference purposes, the website carries here the state-wise net and gross production of natural gas in India for the period 2008-09 to 2015-16.
The data is given in terms of the following parameters:
8Gross Production
8Flared
8Net Availability
8Re-injected (Internal Use)
8Net Production (Sales)
8% Flared to GP
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The petroleum ministry has confirmed that the new marginal fields policy will unlock hydrocarbon reserves of Rs 70,000 crore. No details were given on how this figure was arrived at.
8Will the union budget now flesh out the new auction policy for oil and gas blocks along the lines of the marginal fields policy?
8The domestic E&P industry had been furiously opposed to the revenue sharing model.
8Steps for continuous auction of acerages are also likely to be announced in the budget now that the National Data Repository is being put in place.
Click on Details to find out more on what the domestic industry has to say on the revenue sharing model and a lot more on the subject. Details
Which are the issues in the petroleum sector where the Union budget can bring about changes.
 They are:
 8Cut in cess rate for E&P companies
 8Re-introduction of custom duty on crude and petroleum products
 8Increase in excise duty for auto fuels (petrol/diesel)
 8Roadmap for Direct Benefit Transfer for Kerosene
 8Tax benefits for CGD projects
 Click on Reports to know more on the possible changes likely in the budget and the impact of these changes Details
Shale gas production has gone up to commercial scale only in the US and Canada but there are several countries in the world where production from shale can ramp up, thereby dramatically changing the gas supply matriz.
 862% of the total reserves of the US is made of shale gas
 8But up to 75% of Canada's reserves are made of shale gas
 8Interestingly 77% of Chinese reserves are shale gas as is 14% of Russia's.
 8These gas reserves have not been tapped yet.
 8So going ahead, more and more supplies of gas will be coming in from shale reserves.
 Click on Reports for more Details
For reference purposes, the website carries here details on the latest trends in the global LNG market.
 8Country-wise global shale gas share in total reserves
 8Country-wise production, import and export of LNG
 8Countries where large LNG capacities are coming up
 8Total LNG trade by pipeline, LNG and other means
 8Gas pricing mechanisms followed across the world -- in terms of it being regulated, spot, fossil fuel indexed or "others".
 8Gas price differentials across the world
 8Region-wise liquefaction facilities coming up
 8Average liquefaction unit cost -- in terms of greenfield, brownfield and floating -- by basin and project type and its change over time.
 Click on Reports for more Details
For reference purposes, the website carries here the projected demand and contracted supply of LNG until the year 2040.
 8The demand data is divided country-wise.
 8Some kind of balance is expected only in the early 2020a.
 8Then again the website also carries here a detailed FOB breakeven prices for LNG projects across the world.
 8It is noticed that except for one project in Malaysia where the FOB breakeven is at $4.2/mmbtu the others are all over $6/mmbtu.
 8A lot of the projects are breaking even at over $6.5/mmbtu.
 8Some of them going up to $14/mmbtu.
 Click on Reports for more. Details
The low profile Gas Transmission India Ltd (GTIL), which is building a pipeline from Krishnapatnam to Ennore and its sister company LNG Bharat Ltd, which is setting up an LNG terminal to feed to pipeline, have suddenly acquired a high profile status.
 8It is now learnt that the main promoter of two companies is none other than one of the most prominent families in the state.
 Click on Details to find out how the two companies have now emerged from the shadows to take on established players in the business Details
Rapped by the PNGRB for slow progress, GTIL Is now claiming that it did lose valuable time looking for loans and now that it is going to be internally funded, it will rush though the 250 km pipeline and commission it by the stipulated deadline of December 2017.
 8What is going to be the project cost?
 And the company has tied up with an EPC contractor already for the pipeline Also on how banks refused to fund the project and public sector companies tried to sabotage the project.
 Click on Details for cost and contractor details Details
Both GTIL and LNG Bharat Ltd have KEI-RSOS Petroleum & Energy Pvt Ltd (KRPEPL) as their main company.
 8The company believes that it is a "disruptive force" in gas import and transmission business by trying to break the monopoly of public sector companies and other large companies.
 Click on Details to find out more on how it plans to set up the terminal by shunning bank loans, depending only on internal funding and investment by its EPC partner. Details
There are two terminals that are showing signs of coming up so far in the area -- of the four which were planned -- within the next two years.
 8Against potential supply of 10 MMTPA of LNG, there is demand for only 4 MMTPA in the region.
 8Ganga LNG howvever has drawn up plans to beat IOC to take on the market
 8It plans to set up the terminal 9 months ahead of IOC. It has picked up an EPC contractor that will lay the pipeline in the fastest possible time.
 Click on Details for more on the gameplan that the company plans to adopt to survive in the market. Details
If the pipeline-cum-LNG terminal-cum-FSU does come up in Krishnapatnam as promised, there is likely to be a demand for services and equipment to the tune of around Rs 1700 crore.
8Rs 1000 crore for onland LNG facilites and Rs 700 crore or so for the pipeline.
8The EPC contractor for the pipeline is likely to be China Petroleum Company.
8The basic engineering and design has begun for the onland facilities for the LNG terminal.
8So clearly the business opportunities are evident for suppliers of all kinds of assorted equipment.
8Click on Details for the name of the key contacts to find out on the exact RFQ dates Details
In what is a first on the west coast in the Pliocene formation, the presence of gas at a 1000-meter depth in the Mumbai offshore MB-OSN-2005/3 in is being hailed as a significant geological find. 8The block is operated by an ONGC-Essar consortium.
 8This find particularly encouraging in terms of market cost effectiveness as gas occurs typically in the Mumbai basin at 2000-2500 depth.
 Click on Details for more on how this discovery has the potential of making a big difference to the Mumbai offshore oil business. Details
Efforts  are on to deploy new technologies for the production of fuel from waste. Serving the twin imperative of minimising carbon and greenhouse emissions, and reducing crude imports, biofuels seem to be the ideal renewable fuel for the future.
 8While the 2009 drafted National Biofuel Policy had mandated a 5% green fuel blend with petrol and diesel, India has barely managed to achieve a 3% bioethanol blending.
 8Renewable fuels like molasses based bioethanol and tree-borne biodiesel don’t measure up to ideal standards either in terms of net energy ratio or net carbon reduction
 8A research paper now claims that  2-G advanced biofuels that do not adversely affect the human food chain and have minimum carbon emissions are a good feed to India's needs
 8Non surplus agri wastes and municipal solid wastes( MSD) have the potential to replace petroleum fuel requirements to a good extent. Rice straw wastes in Punjab , empty fruit bunch in Andhra or bamboo in Assam among other wastes, account for 250 million tonnes of surplus agri residues.
 8The prospect of generating renewable fuels through direct solar energy utilisation is one of the several ways to production of 2-G advanced biofuels, according to the paper.
 8The specific areas of advance biological research in India now deal with enzyme and fermentation technologies utilizing a range of microorganisms, including freshwater and marine algae.
 Click on Reports for more Details
The Modi government seems to have taken on itself to give a huge push towards deployment of cutting-edge technologies for 2G-biofuel production.
 8Special support instruments both in terms of capital funding as well as product promotion are being devised to give a boost to biofuel production.
 8Different ministries (MNRE, Ministry of Petroleum, Oil & Natural Gas (MoPNG) in collaboration with the apex Ministry of Science & Technology (MoS&T)) are working with the Indian oil marketing companies and various research centres, universities as well as commercial technology providers to ensure to significantly push biofuel production and use by the year 2020
 8Clearly, India needs to develop a sustainable alternative technology to produce ethanol, biodiesel, and hydrogen that is easy to deploy and operate indigenously.
 8Bio mass and bio-waste technologies in India, however typically face three constraints: the scales of economy are too large, capital costs too high and most technologies are speedstock- specific and will need varied and different feedstock.
 Click on Reports to access the paper that discusses in details the opportunities and challenges faced by the biofuels industry today Details
ONGC's crude oil production during January, 2016 was 1832.293 TMT which is 6.19 percent lower than the target for the month and 2.84 percent lower than the production achieved in the corresponding month of last year.
 8The shortfall in ONGC's production mainly came from Gujarat: in Mehsana, less air injection in the Santhal field, increasing water cut in down dip wells of the N Kadi field.
 8In Ahmedabad too, delayed gains from Gamij field led to a decline in production. Around the region as a whole there has been an increase in water cut, sick wells and power shut downs.
 8Similarly, from Karaikal block in Tamil Nadu: less than anticipated production from Madanam field and closure of wells due to less off-take by consumers caused output to fall.
 8The production shortfall also arisen in the following regions:-
 -- Mumbai High: Delay in commencement of production from B127 cluster. Less production from Cluster-7 & WO-16 cluster.
 -- Assam: Low Gas injection pressure, power shut down and closure of wells for "rig-less jobs".
 -- Condensate: Less condensate from the Hazira plant due to less gas receipt in view of less gas production from the B & S Asset mainly because of BPA shutdown.
 8Cumulatively also, production during April, 2015-January, 2016 was 18717.153 TMT which is 0.90 percent lower than the cumulative target and 0.58 percent higher than the production during the corresponding period of last year.
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Oil India Ltd's crude oil production during January, 2016 was 260.361 TMT which is a sharp 16.65 percent lower than the target for the month and 9.81 percent lower than the production achieved in the corresponding month of last year.
 8The rise in water cut in the wells of Shalmari, Greater Chandmari and Greater Hapjan fields contributed to lower production.
 8Moreover, major loss of production at Makum, Hapjan, Haveda and TX fields occured due to a blocade called by the by the All Moran Student Union on 27.01.2016. Miscreant activities in many wells affected gas lift operation leading to crude oil production loss.
 8Cumulatively too, production during April, 2015-January, 2016 was 2710.973 TMT which is 9.20 per cent lower than the cumulative target and 5.46 per ent lower than the production during the corresponding period of last year.
 Private and JV output
 8Pvt. and JVs crude oil production during January, 2016 was 944.883 TMT which is 3.86 percent higher than the target for the month and 6.54percent lower than production of corresponding month of last year.
 8Output could have been higher but for the underperformance from RIL's KG D6 wells and Cairn's Bhagyam wells in th eRJ-ON-90/1 block which lead to lower production volumes.
 8Cumulatively, production during April, 2015-January, 2016 was 9562.835 TMT which is 6.75 percent higher than the cumulative target and 3.24 percent lower than the production during the corresponding period of last year.
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ONGC's natural gas output during January, 2016 was 1530.864 MMSCM which is a massive 26.33 percent lower than the target for the month and 19.35 percent lower than the production achieved in the corresponding month of last year.
 8From eastern offshore region, the lower production could be attributed to a delay in commencement of production from one deep water well (S2AB) as well as due to restricted withdrawal by GAIL.
 8The shutdown taken at the BPA installation in Basein and Satellite area for carrying out reconstruction activities slowed downed the production process quiet significantly.
 8In Gujarat also output fell on closure of wells due to the unplanned shut down of GAIL gas pipeline from Ahmedabad to Ramol.
 The following are the other reasons why output is down:
 --Andhra Pradesh: Closure of 42 wells as GAIL pipelines in Tatipaka-Lanco & Endamaru-Oduru sections are still under repair.
 --Tamilnadu: Closure of wells on account of less off-take by consumers in the Ramnad area.
 --Assam: Decline in associated gas production in Geleki & Lakwa fields.
 --Tripura: Less off take due to stoppage of 2nd unit of OTPC.
 8Cumulatively, natural gas production during April, 2015-January, 2016 was 17803.007 MMSCM which is 10.36 percent lower than the cumulative target and 3.74 percent lower than the production during the corresponding period of last year.
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OILs natural gas production during January, 2016 was 245.717 MMSCM which is 1.24 percent lower than the target for the month and 7.04 percent higher than the production achieved in the corresponding month of last year.
 8The shortfall in production of natural gas was mainly due to the low upliftment by the consumers like BCPL, NTPS, and NRL.
 8Cumulatively, natural gas production during April, 2015-January, 2016 was 2365.778 MMSCM which is 6.10 percent lower than the cumulative target and 3.41 percent higher than the production during the corresponding period of last year.
 Private and JV production: Output in January, 2016 was 670.802 MMSCM which is 4.11 percent lower than the target for the month and 11.80 percent lower than the production achieved in the corresponding month of last year.
 8The underperformance of RIL's KG D6 wells due to sand ingress and water loading os a big reason
 8Cairn's non-associated gas producing from the well LB-7 also watered out prematurely in the CB-OS2 block and this contributed to lower production.
 8The extended dewatering in the Raniganj South (GEECL) and delayed forest clearance in Raniganj East (Essar) boock led to lower CBM production.
 8Cumulatively, natural gas production during April, 2015-January, 2016 was 6975.763 MMSCM which is 0.46 percent lower than the cumulative target and 7.02 percent lower than the production during the corresponding period of last year.
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Refinery production during January, 2016 was 20624.000 TMT which is 4.36 percent higher than the target for the month and 4.84 percent higher than the production during corresponding period of last year.
 8The output from PSU refineries during January, 2016 was 11301.753 TMT which is 3.06 percent higher than the target for the month and 5.00 percent higher than the production achieved in the corresponding month of last year.
 8In spite of higher overall throughput, IOC's Gujarat refinery and Digboi refinery witnessed restricted  throughput due to the lower crude oil receipt from North Gujarat and Assam respectively. CPCL's Manali refinery also recorded lower throughput on account of VGO containment.
 8Similarly, NRL's Numaligarh refinery  fell short of its target as it received lower crude oil from OIL.
 8Cumulative public sector output during April, 2015-January, 2016 was 103259.785 TMT which is 0.96 percent higher than the cumulative target and 2.68 percent higher than the production during the corresponding period of last year.
 8The production in JV refineries during January, 2016 was 1419.310 TMT which is 12.44 percent higher than the target for the month and 9.44percent higher than the production achieved in the corresponding month of last year.
 8Production in private refineries during January, 2016 was 7902.937 TMT which is 4.90 percent higher than the target for the month and 3.83 percent higher than the production achieved in the corresponding month of last year.
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There is growing all round skepticism over the ability of the little known KEI-RSOS Petroleum & Energy Pvt Ltd. (KRPEPL) to set up a 5 MMTPA LNG facility in Krishnapatnam along with a Rs 729 crore pipeline that will link Ennore to Nellore and Krishnapatnam. The pipeline is being built by KRPEPL promoted Gas Transmission India Pvt Ltd (GTIPL) while the another company LNG Bharat Ltd (LNGB) will construct the LNG terminal.
 8The  PNGRB had recently encashed 25% of the bank guarantee (BG) for its inability to make much progress on the pipeline and for what the regulator called suspicious manipulation of its internal accounts by the promoter. What has caught the attention of the PNGRB is the sudden and disproportionate rise in networth of the promoters of the projects. Then again, the regulator has observed that there are no sign of the LNG terminal coming up, from where the pipeline is meant to source its supply of gas.
 8To clear the air, the promoters are now saying that they are determined to go ahead with their 5 MMTPA LNG import facility with a Floating Storage Unit (FSU) at the existing Krishnapatnam port in Nellore, Andhra Pradesh.
 LNGBL, the promoters are claiming, is a special purpose vehicle promoted by KEI-RSOS Petroleum & Energy Pvt Ltd. It has an MOU with Krishnapatnam Port Company Ltd. for using a POL jetty at the port to handle the for Floating Storage Unit (FSU)
 8The company proclaims that it has tied up with the following international companies:
 --EXMAR (Belgium) to carry out LNG terminal operations
 --INOX India Ltd to provide the cryogenic infrastructure onshore to handle the LNG pumped from the floating storage facility
 --Global United Shipping Ltd to own and operate the floating storage unit
 8The jetty will be designed to accommodate LNG carriers in the size range of 80,000 m3 to 2,65,000 m3
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The company claims that the FSU will be there till the planned onshore regasification unit is completed.
8The onshore LNG storage tanks will take about 36 months to build and the FSU will be there till the tanks are built.
8The company has earmarked Rs 1000 crore for the onshore work and this will include:
8Land & Site Development: Rs 10 crore
8Buildings: Rs 2 crore
8Roads: Rs 2 crore
8Tanks, equipments, engineering, erection, commissioning, related civil work and utilities: Rs 841crore
8EMP and safety measures: Rs 20
8Contingencies and other project related expenses: Rs 100 crore
8Engineering and Project Management: Rs 25 crore
8Total capital cost: Rs 1000 crore
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