All content in this website is sourced legitimately
Archives
All the news items since the launch of our web site are preserved in the archive section. The archive entries are freely accessible to all the users.
Jun 2016
Land acquisition for E&P activity can be a big problem as Bengal Energy, an Indian run Australian E&P company, found out to its peril.
8Land acquisition ran into serious trouble in the company's CY-ONN-2005/1 exploration block.
8This lead to force majeure conditions during the first phase of Minimum Work Programme.
8The company was therefore entitled to exit the work programme without paying any penalties.
8Bengal Energy has now quit the block.
Click on our Reports section for more. Details
8Land acquisition ran into serious trouble in the company's CY-ONN-2005/1 exploration block.
8This lead to force majeure conditions during the first phase of Minimum Work Programme.
8The company was therefore entitled to exit the work programme without paying any penalties.
8Bengal Energy has now quit the block.
Click on our Reports section for more. Details
There is yet another onland exploratory work programme for 18 wells.
8Two exploratory wells have already been drilled and gas has been found in one of them.
8Based on 3D surveys, a total of 18 additional locations have been identified.
815 of them are appraisal wells and three of them will be exploratory wells.
8The name of the key contact is also available.
Click on our Reports section for more information Details
8Two exploratory wells have already been drilled and gas has been found in one of them.
8Based on 3D surveys, a total of 18 additional locations have been identified.
815 of them are appraisal wells and three of them will be exploratory wells.
8The name of the key contact is also available.
Click on our Reports section for more information Details
A 40 well onland drilling programme is coming up.
8The estimated cost is Rs 440 crore.
8These are gas wells.
8And the job is for development drilling.
8The location is in an area where several small to medium sized fields have already been discovered.
Full details of this business opportunity are available in our Reports section Details
8The estimated cost is Rs 440 crore.
8These are gas wells.
8And the job is for development drilling.
8The location is in an area where several small to medium sized fields have already been discovered.
Full details of this business opportunity are available in our Reports section Details
Chasing business opportunities in the oil and gas sector has always been a tough job. A lot of footwork usually goes in well before an opportunity matures into a tender.
8The website carries here information on an opportunity for a Jack-up rig needed for an offshore exploratory programme by a private sector promoter that can go up to 10 wells.
8The drilling plan is in the Bay of Bengal
8The locations have been identified after a thorough interpretation of seismic studies.
8The locations are beyond 10 km from the coast.
8A number of hydrocarbon deposits have been discovered in adjacent blocks.
8The requisite support structure, including Anchor Handling Tug Supply (AHTS) vessels and Multi-purpose Support Vessels (MSV) as well as a helicopter.
8Initial sections will be drilled using Water Based Mud (WBM) followed by low toxic biodegradable Synthetic Base Mud (SBM) for deeper sections.
8A jetty will be hired either on a sole user or shared basis during the drilling campaign. Material handling equipment like cranes, forklifts, trucks, pumps etc will be deployed for loading and unloading purposes. Skilled as well as unskilled workers will be employed for material management, security, loading and unloading activities and general administration.
8The drilling programme is being undertaken under a special extension given by the DGH.
Full details of the business opportunity are available in our Reports section. Details
8The website carries here information on an opportunity for a Jack-up rig needed for an offshore exploratory programme by a private sector promoter that can go up to 10 wells.
8The drilling plan is in the Bay of Bengal
8The locations have been identified after a thorough interpretation of seismic studies.
8The locations are beyond 10 km from the coast.
8A number of hydrocarbon deposits have been discovered in adjacent blocks.
8The requisite support structure, including Anchor Handling Tug Supply (AHTS) vessels and Multi-purpose Support Vessels (MSV) as well as a helicopter.
8Initial sections will be drilled using Water Based Mud (WBM) followed by low toxic biodegradable Synthetic Base Mud (SBM) for deeper sections.
8A jetty will be hired either on a sole user or shared basis during the drilling campaign. Material handling equipment like cranes, forklifts, trucks, pumps etc will be deployed for loading and unloading purposes. Skilled as well as unskilled workers will be employed for material management, security, loading and unloading activities and general administration.
8The drilling programme is being undertaken under a special extension given by the DGH.
Full details of the business opportunity are available in our Reports section. Details
For reference purposes the website carries here the following tenders:
8Carrying out Pipeline Casing Extension jobs at Vijaipur [GAIL] Details
8Supply of Heat Transfer Fluid for Petrochemical Plant, Pata [GAIL] Details
8Invitation of bids for Enterprise Project Management Software, Assam [OIL] Details
8Thickness survey of above ground water pipings of Chaksu station [IOC] Details
8Laying of Interconnecting Pipeline between Offshore Pigging Suction Header and Fire Water Network [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Coal prices jump, pushing German curve to new 2016 high Details
8Essar Oil bags Skoch BSE Award in recognition of energy conservation and environment management Details
8Oil-poor India needs to supersize its Rosneft order: Gadfly Details
8Qatar Navigation to buy Qatar Petroleum stake in Al Shaheen Details
8Oil bust leaves states with massive well cleanup Details
8Egypt plans to import up to 120 cargos of LNG in 2017 Details
8Mahanagar Gas IPO to hit Dalal Street tomorrow Details
8Oil extends gains as Brexit fears ease Details
8Indian pipe companies dominate Rs 550 crore GAIL contract Details
8Mahanagar Gas raises Rs309.36 crore from anchor investors ahead of IPO Details
8‘LPG tankers and oil companies are not following guidelines’ Details
8India’s ONGC plans biggest Crude exploration binge Details
You can also click on Newsclips for more Details
8Carrying out Pipeline Casing Extension jobs at Vijaipur [GAIL] Details
8Supply of Heat Transfer Fluid for Petrochemical Plant, Pata [GAIL] Details
8Invitation of bids for Enterprise Project Management Software, Assam [OIL] Details
8Thickness survey of above ground water pipings of Chaksu station [IOC] Details
8Laying of Interconnecting Pipeline between Offshore Pigging Suction Header and Fire Water Network [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Coal prices jump, pushing German curve to new 2016 high Details
8Essar Oil bags Skoch BSE Award in recognition of energy conservation and environment management Details
8Oil-poor India needs to supersize its Rosneft order: Gadfly Details
8Qatar Navigation to buy Qatar Petroleum stake in Al Shaheen Details
8Oil bust leaves states with massive well cleanup Details
8Egypt plans to import up to 120 cargos of LNG in 2017 Details
8Mahanagar Gas IPO to hit Dalal Street tomorrow Details
8Oil extends gains as Brexit fears ease Details
8Indian pipe companies dominate Rs 550 crore GAIL contract Details
8Mahanagar Gas raises Rs309.36 crore from anchor investors ahead of IPO Details
8‘LPG tankers and oil companies are not following guidelines’ Details
8India’s ONGC plans biggest Crude exploration binge Details
You can also click on Newsclips for more Details
There is not going to be an automatic renewal after the expiry of a five-year tenure of a public sector director.
8This message was made loud and clear last week when the government decided not to renew the tenure of RG Rajan, the well regarded CMD of Rashtriya Chemical and Fertilizers Ltd (RCF).
8Find out why Rajan had to go and how that may impact similar extensions in oil sector companies.
8Click on Reports to find out when the tenures of all public sector directors are ending in oil companies in India.
Click on Details also for more Details
8This message was made loud and clear last week when the government decided not to renew the tenure of RG Rajan, the well regarded CMD of Rashtriya Chemical and Fertilizers Ltd (RCF).
8Find out why Rajan had to go and how that may impact similar extensions in oil sector companies.
8Click on Reports to find out when the tenures of all public sector directors are ending in oil companies in India.
Click on Details also for more Details
Now that everyone is talking of hub-based pricing for gas, there is a race on to build a hub or a bunch of them in Asia.
8Japan is pushing for one, so is China and Singapore while India hasn't pushed for its candidature yet.
8But it looks like there won't be a hub in Asia -- like the once that exists in Europe and the US -- until 2030.
8Click on Reports to find out why.
8While the Japanese and perhaps even China may be a contender for creation of such a hub, India cannot be one.
Click on Reports for more Details
8Japan is pushing for one, so is China and Singapore while India hasn't pushed for its candidature yet.
8But it looks like there won't be a hub in Asia -- like the once that exists in Europe and the US -- until 2030.
8Click on Reports to find out why.
8While the Japanese and perhaps even China may be a contender for creation of such a hub, India cannot be one.
Click on Reports for more Details
So when can Mozambique come on stream?
8There is unanimity that it will not happen anytime soon.
8The present oversupply of LNG will have to run itself out before gas at $10/mmbtu out of Mozambique can be entertained.
8Mozambique promoters are scouting the world for long term offtake commitments but it is not coming forward at their asking price.
8Since capital approval is not possible without long term contracts, start of work can only happen after 2020.
8US supply may plug the gap if gas prices go up to $8-$10/mmbtu.
8What the Mozambique project promoters will have to do if they are to aim for an early start-up will be to slash project cost by taking advantage of low upstream cost of equipment and service.
8Since no new liquefaction plants are coming up as of now beyond those which are already under construction, cost of setting up such plants is expected to come down. This should be leveraged by the promoters
8Unless the delivered cost reaches the level of US cargo costs to Asia, Mozambique will find it difficult to make it to the start-up stage.
Click on Reports for more Details
8There is unanimity that it will not happen anytime soon.
8The present oversupply of LNG will have to run itself out before gas at $10/mmbtu out of Mozambique can be entertained.
8Mozambique promoters are scouting the world for long term offtake commitments but it is not coming forward at their asking price.
8Since capital approval is not possible without long term contracts, start of work can only happen after 2020.
8US supply may plug the gap if gas prices go up to $8-$10/mmbtu.
8What the Mozambique project promoters will have to do if they are to aim for an early start-up will be to slash project cost by taking advantage of low upstream cost of equipment and service.
8Since no new liquefaction plants are coming up as of now beyond those which are already under construction, cost of setting up such plants is expected to come down. This should be leveraged by the promoters
8Unless the delivered cost reaches the level of US cargo costs to Asia, Mozambique will find it difficult to make it to the start-up stage.
Click on Reports for more Details
Latest break-even price data of major liquefaction projects around the world, including those in which capital approval has not yet been sanctioned, indicate that the Mozambique plants -- in which a clutch of domestic public public sector companies are invested -- are not going on stream anytime soon. The Mozambique break-even point is relatively low for Asian deliveries.
8American deliveries are however at least 20% cheaper.
8Shipping costs from Mozambique to India will be less than to average assumed for the rest of Asia but even if that is taken into account, US cargoes will continue to remain more competitive.
8The point to note is that Mozambique break-even costs are lower for Asian deliveries than some existing Australian and Canadian plants.
Click on Reports for more Details
8American deliveries are however at least 20% cheaper.
8Shipping costs from Mozambique to India will be less than to average assumed for the rest of Asia but even if that is taken into account, US cargoes will continue to remain more competitive.
8The point to note is that Mozambique break-even costs are lower for Asian deliveries than some existing Australian and Canadian plants.
Click on Reports for more Details
For reference purposes, the website carries here a fresh set of data on:
8New liquefaction terminals coming up till the year 2020
8New gasification terminals coming up by then
8Calculations behind how low LNG gas prices are going to cause a switch from coal to gas fired power capacity in Europe are also given here.
Click on Reports for more. Details
8New liquefaction terminals coming up till the year 2020
8New gasification terminals coming up by then
8Calculations behind how low LNG gas prices are going to cause a switch from coal to gas fired power capacity in Europe are also given here.
Click on Reports for more. Details
In search of markets, two liquefaction ports -- Sabine Pass in the US and Gladstone in Australia -- are tying to chalk out new LNG cargo routes which have not been traversed before.
8New routes have been carved out from the US terminal of Sabine Pass to:
8The Dragon terminal in the UK, a distance of 4,602 km.
8Then again US cargoes will head 5,357 km to Rio in Brazil
8But the biggest distance that is sought to be traversed is between Sabine Pass and Dabhol by GAIL, a distance of 9,724 km
8The Gladstone terminal in Australia, which started last year, is also ferrying cargoes to distant ports.
The routes are:
8Gladstone-Dabhol: 5,833 km
8Gladstone-Manzanillo, Mexico: 6,634 km
8Gladstone-Ain Sokhana, Egypt: 8,848 km
Click on Reports for more Details
8New routes have been carved out from the US terminal of Sabine Pass to:
8The Dragon terminal in the UK, a distance of 4,602 km.
8Then again US cargoes will head 5,357 km to Rio in Brazil
8But the biggest distance that is sought to be traversed is between Sabine Pass and Dabhol by GAIL, a distance of 9,724 km
8The Gladstone terminal in Australia, which started last year, is also ferrying cargoes to distant ports.
The routes are:
8Gladstone-Dabhol: 5,833 km
8Gladstone-Manzanillo, Mexico: 6,634 km
8Gladstone-Ain Sokhana, Egypt: 8,848 km
Click on Reports for more Details
For reference purposes, the website also carries here the following LNG related data:
8Capex of all major LNG liquefaction plants in the world.
8Detailed calculations to show that even for cargoes emanating from low capex LNG plants in the US will need a delivered cost in Asia of $7.90 /mmbtu.
8The breakeven is at around $ 6.90/mmbtu in Europe and Latin America
8This is assuming a US gas hub price of of $2.50/mmbtu.
Click on Reports for more Details
8Capex of all major LNG liquefaction plants in the world.
8Detailed calculations to show that even for cargoes emanating from low capex LNG plants in the US will need a delivered cost in Asia of $7.90 /mmbtu.
8The breakeven is at around $ 6.90/mmbtu in Europe and Latin America
8This is assuming a US gas hub price of of $2.50/mmbtu.
Click on Reports for more Details
Different sets of data are being thrown up to rationalize the sale of US based LNG cargoes to Asia.
8But somehow the math does not seem to be working out yet.
8If the Barrel of Oil Equivalent (BOE) price is taken, the value of gas should be $ 8.6/mmbtu (at $ 50/bbl Brent).
8However the current LNG price in Europe is $4.2/mmbtu while it is $4.6/mmbtu in North East Asia.
8Against this how does the cost of US LNG work out?
8The variable cost comes to $2.9/mml for Europe (including freight cost) and $3.3/bbl in North East Asia.
8The problem however is that the liquefaction cost, which ranges upwards of $3/mmbtu, spoils the party.
8Even then, in search of markets, US cargoes are likely to reach Asia through the Panama Canal in the months ahead.
Click on Reports for the calculations Details
8But somehow the math does not seem to be working out yet.
8If the Barrel of Oil Equivalent (BOE) price is taken, the value of gas should be $ 8.6/mmbtu (at $ 50/bbl Brent).
8However the current LNG price in Europe is $4.2/mmbtu while it is $4.6/mmbtu in North East Asia.
8Against this how does the cost of US LNG work out?
8The variable cost comes to $2.9/mml for Europe (including freight cost) and $3.3/bbl in North East Asia.
8The problem however is that the liquefaction cost, which ranges upwards of $3/mmbtu, spoils the party.
8Even then, in search of markets, US cargoes are likely to reach Asia through the Panama Canal in the months ahead.
Click on Reports for the calculations Details
Which are the major business development projects in the oil and gas mid-stream sector around India's coast line at this point in time?
Here is a snapshot:
8LNG terminals: Five LNG terminals, worth Rs 500 crore, Rs 4,000 crore, Rs 3000 crore, Rs 3000 crore and Rs 800 crore each respectively.
8There is also a 6 MMTPA FRSU coming up in the West Coast among others
8Petrochemical clusters totaling up to Rs 1680 crore
8One identified product pipeline: Rs 500 crore
8Product pipeline: Rs 500 crore
8Enhanced pipeline connectivity: Rs 500 crore
8Two ports: Rs 5600 crore
Click on Reports for specifics Details
Here is a snapshot:
8LNG terminals: Five LNG terminals, worth Rs 500 crore, Rs 4,000 crore, Rs 3000 crore, Rs 3000 crore and Rs 800 crore each respectively.
8There is also a 6 MMTPA FRSU coming up in the West Coast among others
8Petrochemical clusters totaling up to Rs 1680 crore
8One identified product pipeline: Rs 500 crore
8Product pipeline: Rs 500 crore
8Enhanced pipeline connectivity: Rs 500 crore
8Two ports: Rs 5600 crore
Click on Reports for specifics Details
CGD players are riding high in the face of rising demand and supply of low price domestic gas.
8But they face some serious risks going ahead
8These include some court judgements that can change the dynamics of the industry.
8For those who want to make a fresh entry in this segment, it is important to read the fine print.
8The website carries here a list of 15 risk factors that CGD entities need to be worried about
Click on Reports for more Details
8But they face some serious risks going ahead
8These include some court judgements that can change the dynamics of the industry.
8For those who want to make a fresh entry in this segment, it is important to read the fine print.
8The website carries here a list of 15 risk factors that CGD entities need to be worried about
Click on Reports for more Details
There are however some advantages to US cargoes based on hub based pricing compared to oil-indexed deliveries.
8Data has been produced to show that the model that involves Henry Hub based pricing plus a fixed liquefaction charge is less volatile than just Brent indexed pricing.
8Oil indexed gas prices will go up much more if oil prices were to double than if Henry Hub prices were to to do so.
8The data makes a compelling case for Indian LNG buyers to switch from oil to a Henry Hub pricing model.
8Since the LNG market is now entirely dominated by buyers, this website site believes that Indian buyers must push through this advantage and renegotiate all long term oil indexed deals to ensure that some elements of the pricing involve hub indexed models.
8Petronet LNG Ltd must moot the idea to both Qatar and Australia and even if this may indicate to the outside world that India is not trustworthy when it comes to honouring contracts, the advantage of moving to hub based pricing regime is obvious. Details
8Data has been produced to show that the model that involves Henry Hub based pricing plus a fixed liquefaction charge is less volatile than just Brent indexed pricing.
8Oil indexed gas prices will go up much more if oil prices were to double than if Henry Hub prices were to to do so.
8The data makes a compelling case for Indian LNG buyers to switch from oil to a Henry Hub pricing model.
8Since the LNG market is now entirely dominated by buyers, this website site believes that Indian buyers must push through this advantage and renegotiate all long term oil indexed deals to ensure that some elements of the pricing involve hub indexed models.
8Petronet LNG Ltd must moot the idea to both Qatar and Australia and even if this may indicate to the outside world that India is not trustworthy when it comes to honouring contracts, the advantage of moving to hub based pricing regime is obvious. Details
For reference purposes the website carries here the following tenders:
8Consultancy Services for Re-certification of offshore structures for KG-OSN-2001/3 Block [GSPC] Details
8Supply and Installation of Gas Detection System at IP & Terminal of HVJ Pipeline System [GAIL] Details
8Intelligent Pig Survey of Underground Product Pipeline, Mumbai [IOC] Details
8Civil Works at Drill Site GKHA in Geleky area [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8PMO forwards Essar complaint to Home Ministry Details
8MRPL observes Swachh Bharat fortnight Details
8Indian Oil Corp slashes oil import tender time by half Details
8Petronet picks Qatari producer Rasgas to supply cargo: Trade sources Details
8Essar Oil looks to double petrol pumps to 4,300 in 18 months Details
8IOC-led consortium to buy 24% stake in Vankor oil field Details
8BP and Rosneft create joint venture to develop prospective resources in East and West Siberia Details
8Microsoft launches centre for oil and gas in Dubai Details
8Poland receives first Middle East LNG delivery Details
8Russia's Putin says Shell is long-term, reliable partner Details
8Old aussie oil fields spurned in cheap crude age Details
8Gail likely to realign Tamil Nadu pipeline to connect LNG terminal in Kochi with Bengaluru Details
8Indian Oil, OIL and BPRL sign agreement with Rosneft Details
You can also click on Newsclips for more Details
8Consultancy Services for Re-certification of offshore structures for KG-OSN-2001/3 Block [GSPC] Details
8Supply and Installation of Gas Detection System at IP & Terminal of HVJ Pipeline System [GAIL] Details
8Intelligent Pig Survey of Underground Product Pipeline, Mumbai [IOC] Details
8Civil Works at Drill Site GKHA in Geleky area [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8PMO forwards Essar complaint to Home Ministry Details
8MRPL observes Swachh Bharat fortnight Details
8Indian Oil Corp slashes oil import tender time by half Details
8Petronet picks Qatari producer Rasgas to supply cargo: Trade sources Details
8Essar Oil looks to double petrol pumps to 4,300 in 18 months Details
8IOC-led consortium to buy 24% stake in Vankor oil field Details
8BP and Rosneft create joint venture to develop prospective resources in East and West Siberia Details
8Microsoft launches centre for oil and gas in Dubai Details
8Poland receives first Middle East LNG delivery Details
8Russia's Putin says Shell is long-term, reliable partner Details
8Old aussie oil fields spurned in cheap crude age Details
8Gail likely to realign Tamil Nadu pipeline to connect LNG terminal in Kochi with Bengaluru Details
8Indian Oil, OIL and BPRL sign agreement with Rosneft Details
You can also click on Newsclips for more Details
Competitors will continue to batter Qatar's grip of the LNG market in India.
8The best way to do so is to push cheap spot cargoes on to the price sensitive Indian market.
8A cheap cargo from Shell owned LNG facility in Nigeria this week seems to have brought the proverbial bull into the china shop in India.
8Shell operates six liquefaction units in Nigeria, together producing a massive 22 million tonnes of LNG per year.
8But low priced cargoes can come in from anywhere.
8Some of the new liquefaction facilities will soon be forced to sell their LNG at a low price just to be able to maintain throughput.
8They will not be able to cover their fixed costs but will have to keep pushing cargoes in an over supplied market.
8There is also a fair amount of shadow boxing going on between Exxon Mobil -- which has a big stake in RasGas -- and Shell, both of whom have competing LNG assets.
Click on Reports for more Details
8The best way to do so is to push cheap spot cargoes on to the price sensitive Indian market.
8A cheap cargo from Shell owned LNG facility in Nigeria this week seems to have brought the proverbial bull into the china shop in India.
8Shell operates six liquefaction units in Nigeria, together producing a massive 22 million tonnes of LNG per year.
8But low priced cargoes can come in from anywhere.
8Some of the new liquefaction facilities will soon be forced to sell their LNG at a low price just to be able to maintain throughput.
8They will not be able to cover their fixed costs but will have to keep pushing cargoes in an over supplied market.
8There is also a fair amount of shadow boxing going on between Exxon Mobil -- which has a big stake in RasGas -- and Shell, both of whom have competing LNG assets.
Click on Reports for more Details
For reference purposes, the website carries here a technical booklet on the small and marginal oilfields that are on offer currently in India.
The data is given in terms of:
8Location
8Operator
8Area
8Main Payzone & Age
8Oil or Gas Inplace
8Seismic surveys done
8Wells driled
8Nearest surface facility
8Seismic maps
Click on Reports for more Details
The data is given in terms of:
8Location
8Operator
8Area
8Main Payzone & Age
8Oil or Gas Inplace
8Seismic surveys done
8Wells driled
8Nearest surface facility
8Seismic maps
Click on Reports for more Details
Qatar is assiduously trying to woo India and the relationship between the two countries is warm as is evident from the Indian Prime minister's visit to Doha earlier this month.
8Narendra Modi called the Emir earlier on his birthday. The two leaders are also often in touch telephonically.
8A raft of MOUs were signed between the two countries when Modi was in Doha.
8In honour of the PM’s visit, the Qatari side released a bunch of Indian prisoners under the Emiri pardon on June 6, the first day of the holy month of Ramadan.
8But underpinning all this bonhomie is the fact that Qatar earns a lot of money from India selling LNG. Of the $17 billion in trade, Indian exports account for just $ 1 billion, the rest is made up of LNG imports by India.
8Both sides are tying hard to correct the trade imbalance but not much progress seems to have been made.
8The truth is that if the price of Qatari LNG continues to remain high in relation to other cargoes, Doha will continue to lose market share.
8Eventually, the relationship between the two countries is based on hard economics dictated by global LNG markets.
Click on Reports for more Details
8Narendra Modi called the Emir earlier on his birthday. The two leaders are also often in touch telephonically.
8A raft of MOUs were signed between the two countries when Modi was in Doha.
8In honour of the PM’s visit, the Qatari side released a bunch of Indian prisoners under the Emiri pardon on June 6, the first day of the holy month of Ramadan.
8But underpinning all this bonhomie is the fact that Qatar earns a lot of money from India selling LNG. Of the $17 billion in trade, Indian exports account for just $ 1 billion, the rest is made up of LNG imports by India.
8Both sides are tying hard to correct the trade imbalance but not much progress seems to have been made.
8The truth is that if the price of Qatari LNG continues to remain high in relation to other cargoes, Doha will continue to lose market share.
8Eventually, the relationship between the two countries is based on hard economics dictated by global LNG markets.
Click on Reports for more Details
Amidst all the spreading gloom over oil prices sliding back again, here is an analysis that says that prices are going to go up.
8In the long term, the analysis expects global inventory levels to normalise and OPEC spare capacity to remain below 3mmbpd (at 3% of demand), driving prices back up towards non-OPEC marginal cost of producing oil.
8Accordingly, the analysis has built a long term cost curve.
8The long-term oil price assumption is $70/bbl Brent based on a normal return for a pre-FID project towards the top end of the cost curve.
8Pertinently, the breakeven cost (defined as the price at which a development generates zero return NPV(10%)=0) for new developments has shifted over time, taking into account new sources of supply combined with service sector cost deflation.
8A long term cost curve given by this analysis uses a combination of company data on project breakevens and published cost curves from a range of industry sources.
8The base-case curve has been shifted down to provide a broad-brush indication of the impact of further cost deflation over the course of 2016 assuming a further 5% reduction in breakeven for onshore projects, 10% for offshore.
8The analysis says that the price of crude will have to stay in line with the cost curve in the long run.
Click on Reports for more Details
8In the long term, the analysis expects global inventory levels to normalise and OPEC spare capacity to remain below 3mmbpd (at 3% of demand), driving prices back up towards non-OPEC marginal cost of producing oil.
8Accordingly, the analysis has built a long term cost curve.
8The long-term oil price assumption is $70/bbl Brent based on a normal return for a pre-FID project towards the top end of the cost curve.
8Pertinently, the breakeven cost (defined as the price at which a development generates zero return NPV(10%)=0) for new developments has shifted over time, taking into account new sources of supply combined with service sector cost deflation.
8A long term cost curve given by this analysis uses a combination of company data on project breakevens and published cost curves from a range of industry sources.
8The base-case curve has been shifted down to provide a broad-brush indication of the impact of further cost deflation over the course of 2016 assuming a further 5% reduction in breakeven for onshore projects, 10% for offshore.
8The analysis says that the price of crude will have to stay in line with the cost curve in the long run.
Click on Reports for more Details
Spot LNG price that ruled above $5/mmbtu crashed back to $4.2/mmbtu by mid-week in India, according to daily LNG data monitored by this website's sister publication, www.indianpetrochem.com
8In comparison, the RasGas contract price has strengthened to $6.2/mmbtu.
8The differential seems to have widened from $0.60/mmbtu to $2/mmbtu.
8It is still very early data to comment upon conclusively and it may not be the trend but there may be indications of strengthening of RasGas contract prices while spot prices move in the opposite direction.
Click on Details to find out why there is a possibility of spot prices and contract prices diverging from here onwards Details
8In comparison, the RasGas contract price has strengthened to $6.2/mmbtu.
8The differential seems to have widened from $0.60/mmbtu to $2/mmbtu.
8It is still very early data to comment upon conclusively and it may not be the trend but there may be indications of strengthening of RasGas contract prices while spot prices move in the opposite direction.
Click on Details to find out why there is a possibility of spot prices and contract prices diverging from here onwards Details
For Qatar, the Indian market is of paramount importance.
8This is because it takes only three days to ship a cargo of LNG to India and this is an advantage that Qatar would not like to let go of.
8Qatar has already lost the top spot position as a supplier of LNG in Japan and China.
8It cannot afford to lose market share in India.
8At the same time however it cannot retain its grip while trying to keep its price high.
8Qatar may in fact be forced to make some painful choices in the months ahead.
8And India will have have to show sensitivity while Qatar makes its adjustments. Details
8This is because it takes only three days to ship a cargo of LNG to India and this is an advantage that Qatar would not like to let go of.
8Qatar has already lost the top spot position as a supplier of LNG in Japan and China.
8It cannot afford to lose market share in India.
8At the same time however it cannot retain its grip while trying to keep its price high.
8Qatar may in fact be forced to make some painful choices in the months ahead.
8And India will have have to show sensitivity while Qatar makes its adjustments. Details
It is still too early to decipher the trends in spot and contract prices at PLL's Dahej regasification facility.
8The trend as enunciated by this website is based on sparse data but a firmer indication will be available within the next few weeks.
8Will such a divergence see a higher level of spot cargoes to be processed at Dahej instead of contract LNG?
8If a renegotiation is ruled out, there will be take or pay charges that PLL may have to incur in case of any deferment of cargoes.
8India however will lose all credibility in the international LNG market if PLL were to go knocking on Qatar's doors for a renegotiation of price.
8This time around, if take or pay provisions are invoked, it will hit PLL's balance sheet harder than it did last year.
Click on Details for more Details
8The trend as enunciated by this website is based on sparse data but a firmer indication will be available within the next few weeks.
8Will such a divergence see a higher level of spot cargoes to be processed at Dahej instead of contract LNG?
8If a renegotiation is ruled out, there will be take or pay charges that PLL may have to incur in case of any deferment of cargoes.
8India however will lose all credibility in the international LNG market if PLL were to go knocking on Qatar's doors for a renegotiation of price.
8This time around, if take or pay provisions are invoked, it will hit PLL's balance sheet harder than it did last year.
Click on Details for more Details
The differential between the spot and contract price is about 32% at present
8There is a real possibility of the two prices diverging further in the coming weeks and months.
8This differential is already high and there is a possibility that if the trend continues, there will be resistance from consumers to it.
8Will the resistance reach a point where offtake of contract gas is adversely impacted?
Find out more on what lies ahead for the LNG market in India and why the differential may not bite as hard as it did earlier. Details
8There is a real possibility of the two prices diverging further in the coming weeks and months.
8This differential is already high and there is a possibility that if the trend continues, there will be resistance from consumers to it.
8Will the resistance reach a point where offtake of contract gas is adversely impacted?
Find out more on what lies ahead for the LNG market in India and why the differential may not bite as hard as it did earlier. Details
For reference purposes the website carries here the following tenders:
8ARC for calibration of Gas Flow Meters [GAIL Gas Limited] Details
8Carrying out Post Rig Building Works at Drill site in Madanam Area, Karaikal [ONGC] Details
8Procurement of FLP Fittings, Assam [OIL] Details
8Carrying out Civil works at Drill site in Thiruvarur, Cauvery Asset [ONGC] Details
8AMC for Hydraulic Coke Cutting System of DCU, Panipat Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Keeping tab on Brexit, oil prices : Sinha Details
8Monsoon to wash away diesel demand surge Details
8Oxigen ties up with HPCL for faster checkouts at fuel stations Details
8NTPC, CIL incorporate JV to revive Gorakhpur and Sindri plants of Fertilizer Corporation Details
8IEA to house new Clean Energy Ministerial Secretariat Details
8Russia, Venezuela discuss oil production freeze Details
8India's ONGC to Invest $5 Bln in Russia Projects in 2016 Details
8India taking lead to create alliance of gas importers: Dharmendra Pradhan Details
8Govt forms panel to boost country's refining capacity through 2040 Details
8Indian Oil to raise diesel prices by 2.3 percent from Thursday Details
8India now looks to set up reverse SEZ in Mozambique Details
8GAIL (India) moves higher ahead of Mahanagar Gas IPO Details
8Petrol price hiked by 5 paise a litre, diesel by Rs. 1.26 Details
8Indian Oil Corp likely to bag 37.5% stake in proposed JV to manage ATF at airports Details
8ONGC sets pre-monsoon rig record Details
8Jaya demands Centre to roll back oil price hike Details
You can also click on Newsclips for more Details
8ARC for calibration of Gas Flow Meters [GAIL Gas Limited] Details
8Carrying out Post Rig Building Works at Drill site in Madanam Area, Karaikal [ONGC] Details
8Procurement of FLP Fittings, Assam [OIL] Details
8Carrying out Civil works at Drill site in Thiruvarur, Cauvery Asset [ONGC] Details
8AMC for Hydraulic Coke Cutting System of DCU, Panipat Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Keeping tab on Brexit, oil prices : Sinha Details
8Monsoon to wash away diesel demand surge Details
8Oxigen ties up with HPCL for faster checkouts at fuel stations Details
8NTPC, CIL incorporate JV to revive Gorakhpur and Sindri plants of Fertilizer Corporation Details
8IEA to house new Clean Energy Ministerial Secretariat Details
8Russia, Venezuela discuss oil production freeze Details
8India's ONGC to Invest $5 Bln in Russia Projects in 2016 Details
8India taking lead to create alliance of gas importers: Dharmendra Pradhan Details
8Govt forms panel to boost country's refining capacity through 2040 Details
8Indian Oil to raise diesel prices by 2.3 percent from Thursday Details
8India now looks to set up reverse SEZ in Mozambique Details
8GAIL (India) moves higher ahead of Mahanagar Gas IPO Details
8Petrol price hiked by 5 paise a litre, diesel by Rs. 1.26 Details
8Indian Oil Corp likely to bag 37.5% stake in proposed JV to manage ATF at airports Details
8ONGC sets pre-monsoon rig record Details
8Jaya demands Centre to roll back oil price hike Details
You can also click on Newsclips for more Details
The Floating Storage and Regasification Unit (FRSU) and the Floating Gas Storage Unit are estimated to cost around Rs 2000 crore according to first round of preliminary RFQs taken out by the promoter.
8Further rounds of RFQs are likely.
Another Rs 750 crore has been earmarked for:
8Land development
8Dredging
8Shore protection (sheet piling work)
8Berth construction
8Marine equipment -- topsides
8Onshore civil, pipeline and utilities
8Contingency expenses
Click on Reports for more Details
8Further rounds of RFQs are likely.
Another Rs 750 crore has been earmarked for:
8Land development
8Dredging
8Shore protection (sheet piling work)
8Berth construction
8Marine equipment -- topsides
8Onshore civil, pipeline and utilities
8Contingency expenses
Click on Reports for more Details
Amidst fierce competition between yards, new building price levels seem to be more fragile than ever, with each deal pushing the market lower.
8There was much discussion on this in Posidonia.
8The decision of the South Korean government to create a $9.5 billion fund to support banks exposed to shipyard financing comes to reaffirm in the crisis faced by the industry.
8In terms of recently reported deals, Maran Tankers placed an order for two firm VLCCs (318,000cbm) at DSME, in S. Korea for a price of about $ 84.0m each and delivery set in 2019.
Click on Reports for more Details
8There was much discussion on this in Posidonia.
8The decision of the South Korean government to create a $9.5 billion fund to support banks exposed to shipyard financing comes to reaffirm in the crisis faced by the industry.
8In terms of recently reported deals, Maran Tankers placed an order for two firm VLCCs (318,000cbm) at DSME, in S. Korea for a price of about $ 84.0m each and delivery set in 2019.
Click on Reports for more Details
The attention of the shipping community was diverted by Posidonia, the biggest maritime event in the world, held at Attica in Greece.
8And despite the fact that the event kept an overwhelming number of market participants away from their desks, tanker market activity continued to stay active.
8Restricted volatility is expected in the second half of June as oil prices appeared to have plateaued, with Brent crude moving below $50/barrel as investors have started looking at Asian growth prospects skeptically. Moreover, the market has become sensitive to additional number of US rigs being deployed as oil prices began their rise.
8VL rates in the Middle East managed to put forth some resistance amidst an overall quiet market especially during the second part of the week, while the West Africa market was also steady with business now focusing on
more forward dates.
8Despite the fact that West Africa Suezmax tonnage was sill in demand, rates in the region lost the support built up during the past couple of weeks, as the sharp fall in the Black Sea market quickly set the tone all around. The Aframax Med was also particularly quiet last week, while North Sea rates quickly reversed the negative sentiment of the week prior, cashing in on particularly firm demand.
Click on Reports for more Details
8And despite the fact that the event kept an overwhelming number of market participants away from their desks, tanker market activity continued to stay active.
8Restricted volatility is expected in the second half of June as oil prices appeared to have plateaued, with Brent crude moving below $50/barrel as investors have started looking at Asian growth prospects skeptically. Moreover, the market has become sensitive to additional number of US rigs being deployed as oil prices began their rise.
8VL rates in the Middle East managed to put forth some resistance amidst an overall quiet market especially during the second part of the week, while the West Africa market was also steady with business now focusing on
more forward dates.
8Despite the fact that West Africa Suezmax tonnage was sill in demand, rates in the region lost the support built up during the past couple of weeks, as the sharp fall in the Black Sea market quickly set the tone all around. The Aframax Med was also particularly quiet last week, while North Sea rates quickly reversed the negative sentiment of the week prior, cashing in on particularly firm demand.
Click on Reports for more Details
Battery powered cars have been the centre of attention around the world as an alternative to the conventional oil based automobile.
8But giant steps are now being taken to get hydrogen power cars on to commercial production.
8These cars have the advantage of higher mileage and better efficiency.
8Ford is testing its cars in US, Canada and Germany and is targeting commercial production by 2020.
8Honda says it will start selling cars by the end of 2016.
8Other big companies such as Nissan, Daimler and Toyota are also pushing their own hydrogen vehicles.
8Toyota has already announced a price for its fuel cell drive cars.
8For strategists in our oil companies, a time has come to keep track of these developments.
8For eventually, when climate change begins to bite, the use of hydrogen cars is going to gain quick traction.
8For reference purposes, the website carries here a full report on India's plans to keep pace with the hydrogen economy. The report has sought an allocation of Rs 500 crore to push hydrogen research in a timebound manner in India.
Click on Reports for more. Details
8But giant steps are now being taken to get hydrogen power cars on to commercial production.
8These cars have the advantage of higher mileage and better efficiency.
8Ford is testing its cars in US, Canada and Germany and is targeting commercial production by 2020.
8Honda says it will start selling cars by the end of 2016.
8Other big companies such as Nissan, Daimler and Toyota are also pushing their own hydrogen vehicles.
8Toyota has already announced a price for its fuel cell drive cars.
8For strategists in our oil companies, a time has come to keep track of these developments.
8For eventually, when climate change begins to bite, the use of hydrogen cars is going to gain quick traction.
8For reference purposes, the website carries here a full report on India's plans to keep pace with the hydrogen economy. The report has sought an allocation of Rs 500 crore to push hydrogen research in a timebound manner in India.
Click on Reports for more. Details
For reference purposes, the website carries here the following energy sector related data:
8Source wise energy consumption India in terms of coal, oil and gas, nuclear, thermal, hydroelectric, renewables and biogas
8India's petroleum and other liquids production and consumption (forcast up to 2017)
8India's crude oil production by region
8Indian refining sector capacity
8Crude imports by source
8India's gas production and consumption
8Map showing India's gas pipeline network
8India's existing and planned regasification terminals
8India's coal consumption and production
8India's coal imports by source and India's installed power capacity .
8India's installed power capacity by type
8India's utility based installed power capacity
8Indian househiolds by primary fuel used for cooking.
Click on Reports for more Details
8Source wise energy consumption India in terms of coal, oil and gas, nuclear, thermal, hydroelectric, renewables and biogas
8India's petroleum and other liquids production and consumption (forcast up to 2017)
8India's crude oil production by region
8Indian refining sector capacity
8Crude imports by source
8India's gas production and consumption
8Map showing India's gas pipeline network
8India's existing and planned regasification terminals
8India's coal consumption and production
8India's coal imports by source and India's installed power capacity .
8India's installed power capacity by type
8India's utility based installed power capacity
8Indian househiolds by primary fuel used for cooking.
Click on Reports for more Details
The data on how many planned regasfication terminals are going to come on stream keeps changing.
8The website carries here the latest data on new installed LNG capacity that is going to come on stream between now and 2019.
The data is given here in terms of:
8Name of the project
8Owners
8Peak output
8Target commissioning year
Click on Reports for more Details
8The website carries here the latest data on new installed LNG capacity that is going to come on stream between now and 2019.
The data is given here in terms of:
8Name of the project
8Owners
8Peak output
8Target commissioning year
Click on Reports for more Details
Indian gas entrepreneurs have now begun to infuse scale and grandeur into their plans.
8Of the 21 mmscmd of throughput from the FRSU that is planned, as much as 14 mmscmd is going for captive consumption whereas the rest will be injected into the pipeline network.
8Already, a second FRSU is planned of a similar capacity soon after.
8The fall in LNG price is what is prompting a number of end use promoters, in sectors such as power and steel and even fertilizers, to think of bringing in their own LNG and use it captively.
8Most of these end use facilities are on or near the coast where FRSUs can quickly cater to demand.
8Already GMR is planning to set up a 1.75 MMTPA LNG regasification unit at the Kakinada port which will supply gas to two of the group's power plants and to other adjacent power units.
8GMR has a 220 MW barge mounted power plant near Kakinanda and a 1138 MW gas based power plant at Vemagiri.
8The company claims that low spot prices have emboldened it to set up the LNG plant.
8Two locations within the port are being investigated to site the plant.
8The investment is low: the unit in one location is going to cost just Rs 471 crore while for another it will be Rs 651 crore.
Click on Reports for more Details
8Of the 21 mmscmd of throughput from the FRSU that is planned, as much as 14 mmscmd is going for captive consumption whereas the rest will be injected into the pipeline network.
8Already, a second FRSU is planned of a similar capacity soon after.
8The fall in LNG price is what is prompting a number of end use promoters, in sectors such as power and steel and even fertilizers, to think of bringing in their own LNG and use it captively.
8Most of these end use facilities are on or near the coast where FRSUs can quickly cater to demand.
8Already GMR is planning to set up a 1.75 MMTPA LNG regasification unit at the Kakinada port which will supply gas to two of the group's power plants and to other adjacent power units.
8GMR has a 220 MW barge mounted power plant near Kakinanda and a 1138 MW gas based power plant at Vemagiri.
8The company claims that low spot prices have emboldened it to set up the LNG plant.
8Two locations within the port are being investigated to site the plant.
8The investment is low: the unit in one location is going to cost just Rs 471 crore while for another it will be Rs 651 crore.
Click on Reports for more Details
A round of RFQs is likely to be floated soon for a Floating Storage and Regasification Unit (FRSU) coming up in the West Coast of India.
8It is a big sized unit -- with a maximum capacity of 6 MMTPA -- and the promoter is looking to either buy it outright or take it on 20-year hire.
8There will be a floating gas storage unit too with a capacity of 265,000 cubic metres and the regasification speed can go up to a maximum of 21 mmscmd.
8The promoter is looking at quick completion of work and that's one reason why the choice was to go for an FRSU instead of a fixed online terminal.
8Completion is aimed at within six months of clearance.
8Gas will go directly through hoses to online pipeline and captive intake facilities.
Click on Reports for more and for Key Contact information. Details
8It is a big sized unit -- with a maximum capacity of 6 MMTPA -- and the promoter is looking to either buy it outright or take it on 20-year hire.
8There will be a floating gas storage unit too with a capacity of 265,000 cubic metres and the regasification speed can go up to a maximum of 21 mmscmd.
8The promoter is looking at quick completion of work and that's one reason why the choice was to go for an FRSU instead of a fixed online terminal.
8Completion is aimed at within six months of clearance.
8Gas will go directly through hoses to online pipeline and captive intake facilities.
Click on Reports for more and for Key Contact information. Details
Clearly, end use industries are trying to beat India's legacy gas procurement and distribution systems by creating their own import structures while reaching out directly to global LNG suppliers.
8Many players and intermediaries have emerged in the LNG market, making it easier than ever before for consumers in India to reach out directly to them, overriding legacy institutions that want to retain their monopoly over both India's gasification facilities and gas distribution networks.
8Technology is evolving rapidly too. The size of FRSUs can vary depending upon the need of the captive consumer. GMR's FRSU will cost only Rs 471 crore while the new 6 MMTPA FRSU on the west coast will come with a price tag of Rs 2700 crore.
8The flexibility has emboldened consumers to think of breaking free. They now want full control on their supplies of feedstock and energy.
8The LNG business today provides for different business models to coexist and that has acted as a catalyst too.
8The fact that power producers now believe that they can run their stranded gas based assets on an FRSU-based model is a big leap towards a decentralization of the LNG market in India.
8More such trends will be discernible as not just power but steel, petrochemical and fertilizer producers too seek to buy gas at their own terms rather than being dictated to by monopolies such as GAIL.
8Will Indian players eventually build a necklace of LNG terminals around the Indian coast line?
8The answer seems to be 'yes'. For the moment. Details
8Many players and intermediaries have emerged in the LNG market, making it easier than ever before for consumers in India to reach out directly to them, overriding legacy institutions that want to retain their monopoly over both India's gasification facilities and gas distribution networks.
8Technology is evolving rapidly too. The size of FRSUs can vary depending upon the need of the captive consumer. GMR's FRSU will cost only Rs 471 crore while the new 6 MMTPA FRSU on the west coast will come with a price tag of Rs 2700 crore.
8The flexibility has emboldened consumers to think of breaking free. They now want full control on their supplies of feedstock and energy.
8The LNG business today provides for different business models to coexist and that has acted as a catalyst too.
8The fact that power producers now believe that they can run their stranded gas based assets on an FRSU-based model is a big leap towards a decentralization of the LNG market in India.
8More such trends will be discernible as not just power but steel, petrochemical and fertilizer producers too seek to buy gas at their own terms rather than being dictated to by monopolies such as GAIL.
8Will Indian players eventually build a necklace of LNG terminals around the Indian coast line?
8The answer seems to be 'yes'. For the moment. Details
Competition among suppliers of gas will continue to keep growing as the market fragments into different parts.
8One clear trend is for bulk buyers to find their own gas sources. They are likely to use FRSUs to drive their ambition instead of fixed land based terminals.
8On one end there will be independent gasification terminals which will entirely depend on supplying gas to third parties. Given that existing pipeline monopolies are difficult to break, they will have to spend heavily in building their own trunk networks to ferry gas. This is an expensive model fraught with risk
8There will be hybrid models which will cater to captive end-use industries with some of the liquefaction capacity reserved for independent third party supply.
8The inadequate penetration of the gas pipeline network or non-availability of third party access in trunk pipelines means that new FRSUs will try and reduce their dependency on trunk pipelines.
8Instead they will have a limited perimeter of influence.
8Using trucks to ferry LNG is going to be increasingly in vogue as will be short length pipeline networks catering to industries within these perimeters.
8There is also the possibility of similar industries banding together around FRSUs to reap the benefits of cheap LNG but without the stranglehold of monopoly distributors of gas.
8The PNGRB will have to evolve a policy framework for delivery of LNG by road as such supplies are going to be increasingly competing with supplies coming out of city gas networks severed by legacy pipeline networks.
8Sooner than later, the gas market has to evolve into two distinct but independent sets of players: those who own the infrastructure and those who use the infrastructure.
8The business models for both will be different and there will be hybrid models too which will coexist.
8The Indian gas market is only just beginning to evolve.
8Exciting times are ahead of us. Details
8One clear trend is for bulk buyers to find their own gas sources. They are likely to use FRSUs to drive their ambition instead of fixed land based terminals.
8On one end there will be independent gasification terminals which will entirely depend on supplying gas to third parties. Given that existing pipeline monopolies are difficult to break, they will have to spend heavily in building their own trunk networks to ferry gas. This is an expensive model fraught with risk
8There will be hybrid models which will cater to captive end-use industries with some of the liquefaction capacity reserved for independent third party supply.
8The inadequate penetration of the gas pipeline network or non-availability of third party access in trunk pipelines means that new FRSUs will try and reduce their dependency on trunk pipelines.
8Instead they will have a limited perimeter of influence.
8Using trucks to ferry LNG is going to be increasingly in vogue as will be short length pipeline networks catering to industries within these perimeters.
8There is also the possibility of similar industries banding together around FRSUs to reap the benefits of cheap LNG but without the stranglehold of monopoly distributors of gas.
8The PNGRB will have to evolve a policy framework for delivery of LNG by road as such supplies are going to be increasingly competing with supplies coming out of city gas networks severed by legacy pipeline networks.
8Sooner than later, the gas market has to evolve into two distinct but independent sets of players: those who own the infrastructure and those who use the infrastructure.
8The business models for both will be different and there will be hybrid models too which will coexist.
8The Indian gas market is only just beginning to evolve.
8Exciting times are ahead of us. Details
Time has already arrived for both gas suppliers and equipment and service providers to begin working on Coal India Ltd, NTPC and even Indian Oil Corporation for business development purposes.
8The PMO instructions are clear: that urea-ammonia plants must come up in syncronization with GAIL's Plulpur-Haldia pipeline.
8These companies have little or no idea about urea-ammonia complexes and they will need all the help they can garner.
8The first movers will have a big advantage.
8It is learnt that IOC may have an advantage is pushing gas supply contracts with the promoters as it is also one of the equity partners in the holding company.
8As for technology suppliers, EIL is expected to push hard for a slice of the action on the basis of being a public sector company.
Click on Reports to down details of the JV that Coal India and NTPC has signed to set up these projects Details
8The PMO instructions are clear: that urea-ammonia plants must come up in syncronization with GAIL's Plulpur-Haldia pipeline.
8These companies have little or no idea about urea-ammonia complexes and they will need all the help they can garner.
8The first movers will have a big advantage.
8It is learnt that IOC may have an advantage is pushing gas supply contracts with the promoters as it is also one of the equity partners in the holding company.
8As for technology suppliers, EIL is expected to push hard for a slice of the action on the basis of being a public sector company.
Click on Reports to down details of the JV that Coal India and NTPC has signed to set up these projects Details
For reference purposes the website carries here the following tenders:
8Carrying out DCVG Survey & Closed Interval Potential Survey and rectification of identified pipeline coating defects [IOC] Details
8Modification for increasing operation efficiency and flexibility of operation in HVJ/ DVPL Pipeline System [GAIL] Details
8Rate contract for maintenance of Siemens make VFD panels, Mehsana [ONGC] Details
8Intelligent Pigging of Chichinada-Mortha Pipeline [GAIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Exxon, BHP considering sale of Australia oil and gas assets Details
8Oil prices drop further on supply, Britain EU exit fears Details
8At $50/barrel, oil risks "reverse Goldilocks" syndrome Details
8Shell CEO Ben van Beurden says oil giant would be hit by Brexit Details
8'Enormous' inventories to keep lid on oil price: IEA Details
8India seeks better LNG deal by teaming up with South Korea and Japan Details
8Nissan to develop ethanol-based fuel cell technology by 2020 Details
8India taking lead to create alliance of gas importers: Dharmendra Pradhan Details
8CNG retail licences: PNGRB drops 7 out of 11 cities Details
8India seeks better LNG deal with S Korea, Japan Details
You can also click on Newsclips for more Details
8Carrying out DCVG Survey & Closed Interval Potential Survey and rectification of identified pipeline coating defects [IOC] Details
8Modification for increasing operation efficiency and flexibility of operation in HVJ/ DVPL Pipeline System [GAIL] Details
8Rate contract for maintenance of Siemens make VFD panels, Mehsana [ONGC] Details
8Intelligent Pigging of Chichinada-Mortha Pipeline [GAIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Exxon, BHP considering sale of Australia oil and gas assets Details
8Oil prices drop further on supply, Britain EU exit fears Details
8At $50/barrel, oil risks "reverse Goldilocks" syndrome Details
8Shell CEO Ben van Beurden says oil giant would be hit by Brexit Details
8'Enormous' inventories to keep lid on oil price: IEA Details
8India seeks better LNG deal by teaming up with South Korea and Japan Details
8Nissan to develop ethanol-based fuel cell technology by 2020 Details
8India taking lead to create alliance of gas importers: Dharmendra Pradhan Details
8CNG retail licences: PNGRB drops 7 out of 11 cities Details
8India seeks better LNG deal with S Korea, Japan Details
You can also click on Newsclips for more Details
Building of gas networks for several smart cities is still some time away as is evident from the PNGRB's decision to drop plans for city gas distribution projects in six of the 11 smart cities for the time being.
8No trunk gas line connectivity is available for them.
8Click on Reports for more on cities which have been dropped and those which have included in the list of geographical areas for which bids have invited to set up city gas distribution networks.
Please also click on Reports for a copy of the application-cum-bid document for bidders who want to build city gas distribution networks. Details
8No trunk gas line connectivity is available for them.
8Click on Reports for more on cities which have been dropped and those which have included in the list of geographical areas for which bids have invited to set up city gas distribution networks.
Please also click on Reports for a copy of the application-cum-bid document for bidders who want to build city gas distribution networks. Details
Nripendra Misra is a man who was picked up from retirement by Prime Minister Narendra Modi to be his Principal secretary.
8Misra is a no-nonsense officer and commands immense respect in New Delhi's power structure.
8He is undoubtedly a man who has the Prime Minister's ear. He is the points man who gets things done.
8And Misra knows the fertilizer sector well, having served as secretary in the Department of Fertilizers (DOF) earlier.
8Many credit him with the idea of getting the government to bankroll the construction of big ticket fertilizer projects in India at a time when private sector investment was scarce not just in the fertilizers but in other segments of the economy.
8After the private sector turned recalcitrant, it was Misra who thought up the idea of cash rich public sector companies investing to set up these projects.
8He also did not appreciate any attempt by the DOF to retain its hegemony over the SPV. The proposal by the Department of Fertilizers to retain a grip on the SPV -- by ensuring that fertilizer PSUs keep a majority stake -- was shot down by the Principal Secretary in the meeting on Monday.
8He thought that an SPV is better run independently though it is yet to be settled which administrative ministry will be handling it. Details
8Misra is a no-nonsense officer and commands immense respect in New Delhi's power structure.
8He is undoubtedly a man who has the Prime Minister's ear. He is the points man who gets things done.
8And Misra knows the fertilizer sector well, having served as secretary in the Department of Fertilizers (DOF) earlier.
8Many credit him with the idea of getting the government to bankroll the construction of big ticket fertilizer projects in India at a time when private sector investment was scarce not just in the fertilizers but in other segments of the economy.
8After the private sector turned recalcitrant, it was Misra who thought up the idea of cash rich public sector companies investing to set up these projects.
8He also did not appreciate any attempt by the DOF to retain its hegemony over the SPV. The proposal by the Department of Fertilizers to retain a grip on the SPV -- by ensuring that fertilizer PSUs keep a majority stake -- was shot down by the Principal Secretary in the meeting on Monday.
8He thought that an SPV is better run independently though it is yet to be settled which administrative ministry will be handling it. Details
Australia overtook Qatar in 2012 to become the largest LNG exporter to Japan. In 2015, Australia accounted for 22 per cent (18.6 million tonnes) of Japan’s LNG imports.
8Western Australia became the first exporter of LNG to China in 2006. In 2015, Australia overtook Qatar to again be the largest LNG exporter to China. In 2015, Australia accounted for 29 per cent (5.8 million tonnes) of China’s LNG imports
8The North West Shelf, through its contract with Guangdong Dapeng LNG, was Australia’s biggest supplier of LNG to China in 2015.
8Australia’s next biggest markets in 2015 were South Korea (1.8 million tonnes), India (0.9 million tonnes) and Singapore (0.8 million tonnes).
8The website carries here a fact sheet on Western Australia's LNG facilities and associated infrastructure -- in terms of capacity already installed and capacity coming up -- that will be of interest to potential LNG importers in India.
8Western Australia is just 9 shipping days away from India as compared to 13 days from LNG projects in the East Coast of Australia.
8The volume of Australia’s LNG sales in 2015 was 29.4 million tonnes, with Western Australia accounting for around 70 per cent of Australia’s total exports.
8If all Australian projects currently under construction proceed as scheduled, Australia will have a total capacity of 87 mtpa by 2018.
8While Japan is expected to remain Western Australia's largest destination for LNG exports, new long-term contracts with customers in China and India will make the distribution of the Western Australia's future LNG exports more diverse.
8As new projects move into production, the volume of Western Australia’s LNG exports will increase significantly.
8The proportion of Western Australia’s LNG export capacity used will depend on a number of factors, including the ability of LNG projects to sell production capacity not committed through long-term contracts into the spot market.
Click on Reports for more Details
8Western Australia became the first exporter of LNG to China in 2006. In 2015, Australia overtook Qatar to again be the largest LNG exporter to China. In 2015, Australia accounted for 29 per cent (5.8 million tonnes) of China’s LNG imports
8The North West Shelf, through its contract with Guangdong Dapeng LNG, was Australia’s biggest supplier of LNG to China in 2015.
8Australia’s next biggest markets in 2015 were South Korea (1.8 million tonnes), India (0.9 million tonnes) and Singapore (0.8 million tonnes).
8The website carries here a fact sheet on Western Australia's LNG facilities and associated infrastructure -- in terms of capacity already installed and capacity coming up -- that will be of interest to potential LNG importers in India.
8Western Australia is just 9 shipping days away from India as compared to 13 days from LNG projects in the East Coast of Australia.
8The volume of Australia’s LNG sales in 2015 was 29.4 million tonnes, with Western Australia accounting for around 70 per cent of Australia’s total exports.
8If all Australian projects currently under construction proceed as scheduled, Australia will have a total capacity of 87 mtpa by 2018.
8While Japan is expected to remain Western Australia's largest destination for LNG exports, new long-term contracts with customers in China and India will make the distribution of the Western Australia's future LNG exports more diverse.
8As new projects move into production, the volume of Western Australia’s LNG exports will increase significantly.
8The proportion of Western Australia’s LNG export capacity used will depend on a number of factors, including the ability of LNG projects to sell production capacity not committed through long-term contracts into the spot market.
Click on Reports for more Details
Petitioners have also demanded that PNGRB should conduct a feasibility study of a geographical area before it is placed under bidding.
8The regulator should convince itself about the viability of a particular GA before inviting bids as is done by the DGH for exploration blocks, this argument claims.
8While individual bidders may still do their own assessments, a prior appraisal by the PNGRB will go a long way in fostering more competition.
8It will also avoid no shows or single bids in some blocks.
8Currently the entire onus of assessing the viability of a CGD block is left to the bidder to assess.
Click on Reports for more Details
8The regulator should convince itself about the viability of a particular GA before inviting bids as is done by the DGH for exploration blocks, this argument claims.
8While individual bidders may still do their own assessments, a prior appraisal by the PNGRB will go a long way in fostering more competition.
8It will also avoid no shows or single bids in some blocks.
8Currently the entire onus of assessing the viability of a CGD block is left to the bidder to assess.
Click on Reports for more Details
There are some who are protesting the carving out of city gas distribution footprints into geographical areas that span hundreds or even thousands of square kms.
8To reach each Taluka or village will require 500-600 km of steel line networks, which translate into 6000-7500 inch km of infrasttructure.
8Laying such a huge network would cost around 800-1000 crore, reportedly an unviable investment proposition.
8This kind of penetration can only be done over a 15 year development period and not in 5 years as stipulated by the PNGRB, it is argued.
8Ironically, even as some claims existing GAs are too big, other petitioners have demanded that some geographical areas be merged for the sake of contiguity or to allow the development of common infrastructure across areas.
Click on Reports for more Details
8To reach each Taluka or village will require 500-600 km of steel line networks, which translate into 6000-7500 inch km of infrasttructure.
8Laying such a huge network would cost around 800-1000 crore, reportedly an unviable investment proposition.
8This kind of penetration can only be done over a 15 year development period and not in 5 years as stipulated by the PNGRB, it is argued.
8Ironically, even as some claims existing GAs are too big, other petitioners have demanded that some geographical areas be merged for the sake of contiguity or to allow the development of common infrastructure across areas.
Click on Reports for more Details
Existing CGD entities and potential bidders see trucked LNG as a big threat to their business.
8GAIL has used its subsidiary companies to lodge a strong protest with PNGRB against allowing such LNG supplies to slip into CGD areas.
8The GAIL sponsored Natural Gas Society, headed by a former GAIL executive, has come out strongly against allowing LNG on wheels to make inroads in India.
8The Natural Gas Society claims that allowing trucked LNG to reach select industrial units within a geographical area amounts to cherry picking of customers. It wants all gas activity within a geographical area, including supplies to vessels plying in inland waterways, to be the exclusive preserve of the authorized CGD entity.
8Even independent entities, such as BPCL, are against trucking of LNG.
8The refiner has asked for disallowing the movement of LNG trucks or CNG cascades beyond a perimeter of 300 km.
8Feeding a CGD network like Jaipur from Dahej by truck would entail 100 round trips each day, leading to higher levels of pollution besides raising serious safety issues, BPCL has argued.
8Even supply of gas from isolated gas fields is opposed on the ground that the entire process of liquefaction at well head and its subsequent transportation and regasification makes it an unviable proposition.
8Others have asked for a complete ban of trucked supplies in defined CGD areas.
8But some voices support supplies by truck to areas where there is no pipeline connectivity.
8Another group has petitioned the PNGRB for a ban on the use of liquid fuels such as FO and naphtha within city limits to ensure that gas is used instead.
Click on Reports for more Details
8GAIL has used its subsidiary companies to lodge a strong protest with PNGRB against allowing such LNG supplies to slip into CGD areas.
8The GAIL sponsored Natural Gas Society, headed by a former GAIL executive, has come out strongly against allowing LNG on wheels to make inroads in India.
8The Natural Gas Society claims that allowing trucked LNG to reach select industrial units within a geographical area amounts to cherry picking of customers. It wants all gas activity within a geographical area, including supplies to vessels plying in inland waterways, to be the exclusive preserve of the authorized CGD entity.
8Even independent entities, such as BPCL, are against trucking of LNG.
8The refiner has asked for disallowing the movement of LNG trucks or CNG cascades beyond a perimeter of 300 km.
8Feeding a CGD network like Jaipur from Dahej by truck would entail 100 round trips each day, leading to higher levels of pollution besides raising serious safety issues, BPCL has argued.
8Even supply of gas from isolated gas fields is opposed on the ground that the entire process of liquefaction at well head and its subsequent transportation and regasification makes it an unviable proposition.
8Others have asked for a complete ban of trucked supplies in defined CGD areas.
8But some voices support supplies by truck to areas where there is no pipeline connectivity.
8Another group has petitioned the PNGRB for a ban on the use of liquid fuels such as FO and naphtha within city limits to ensure that gas is used instead.
Click on Reports for more Details
Apollo Hospital promoted Bharat LNG Ltd has set the cat among the pigeons after announcing that is setting up a 5 MMTPA LNG terminal in Krishnapatnam, with a completion deadline of December 2017, which will supply as much as 0.7 MMTPA of LNG through trucks to new CGD areas.
8The LNG terminal will have 8 truck loading bays capable of fueling 50 trucks a day.
8The company claims that it will supply LNG by trucks within a radius of 500 kms from its terminal.
8It has listed out 14 districts in Andhra Pradesh, 9 in Telengana, 25 in Tamil Nadu, 20 in Karnataka and 3 in Pondicherry which it will be targeting for supply of trucked LNG.
Click on Reports for more Details
8The LNG terminal will have 8 truck loading bays capable of fueling 50 trucks a day.
8The company claims that it will supply LNG by trucks within a radius of 500 kms from its terminal.
8It has listed out 14 districts in Andhra Pradesh, 9 in Telengana, 25 in Tamil Nadu, 20 in Karnataka and 3 in Pondicherry which it will be targeting for supply of trucked LNG.
Click on Reports for more Details
City Gas Distribution companies have dubbed at least two of the five smart cities selected by the PNGRB for inclusion in the bidding round as unviable on account of long distance to the nearest Tap of Point for gas.
8Bhopal for example is 13O km from the nearest TOP. Udaipur is 110 KM away while Solapur is 71 km away.
8The only three cities are less than the 50 kms away -- the distance that CGD Companies say is ideally suited for connectivity.
8Bidders are now seeking a dilution of minimum work programme norms in case TOP distances are beyond the 50 km mark.
Click on Reports for more Details
8Bhopal for example is 13O km from the nearest TOP. Udaipur is 110 KM away while Solapur is 71 km away.
8The only three cities are less than the 50 kms away -- the distance that CGD Companies say is ideally suited for connectivity.
8Bidders are now seeking a dilution of minimum work programme norms in case TOP distances are beyond the 50 km mark.
Click on Reports for more Details
For reference purposes, the website carries here details of:
8Nearest trunk or spur gas line to which each of the newly shortlisted smart cities for bidding purposes are connected
8Distance of TOPs for each of these cities as notified by the pipeline operator
8Location details of the TOPs
8Targets set for coverage area and year wise targets for building of infrastructure for the smart cities for which bidding will take place
8Targets for gas connectivity for each of these cities.
Click on Reports for more Details
8Nearest trunk or spur gas line to which each of the newly shortlisted smart cities for bidding purposes are connected
8Distance of TOPs for each of these cities as notified by the pipeline operator
8Location details of the TOPs
8Targets set for coverage area and year wise targets for building of infrastructure for the smart cities for which bidding will take place
8Targets for gas connectivity for each of these cities.
Click on Reports for more Details
Why are there two opposing views on investing in fertilizer projects in India?
8The government view, as propounded by Nirpendra Misra, is that India must have its own domestic capacity for urea so that the country is not pushed to buy urea at high prices set by the international suppliers' cartel. India is currently the largest buyer of urea in the world.
8Once India's vulnerability is known, the cartel will raise the price sky high, this argument goes.
8The other view is that the international cartel will always be able to sell urea at a strategically lower price than the cost of production of the new capital intensive plants in India. The cost of production will always be lower where gas is cheaper than in India, such as in the Gulf or in Russia or even the US. This view believes India does not have the comparative advantage to manufacture urea.
8Currently, the cost of production of urea at prevailing prices will be around $300 per tonne, whereas the imported price of urea is at around $200 per tonne.
8It is a big differential and it has to be paid by the government as subsidy as the BJP government has no intention of raising the price of urea to plug the gap.
8When 9 MMTPA of urea capacity comes on stream, and if the differential between imported price and domestic price remains at $100 per tonne, the central government will have to pay an additional $900 million as subsidy every year.
8This is big money by any yardstick and the question that is being asked is whether the finance ministry will continue to pay out the differential and resist the temptation to import urea if the differential continues to persist year after year.
8One of the reasons why the private urea industry is unwilling to invest is because there is a huge lag in the dispensation of subsidy. Companies are forced to borrow to tide over their working capital requirements -- the interest on such borrowings is often not compensated -- while the government takes its own time to pay up the differential between the cost of production of urea and the farm gate price of urea.
8This will hurt new urea units more than those with depreciated plants. Details
8The government view, as propounded by Nirpendra Misra, is that India must have its own domestic capacity for urea so that the country is not pushed to buy urea at high prices set by the international suppliers' cartel. India is currently the largest buyer of urea in the world.
8Once India's vulnerability is known, the cartel will raise the price sky high, this argument goes.
8The other view is that the international cartel will always be able to sell urea at a strategically lower price than the cost of production of the new capital intensive plants in India. The cost of production will always be lower where gas is cheaper than in India, such as in the Gulf or in Russia or even the US. This view believes India does not have the comparative advantage to manufacture urea.
8Currently, the cost of production of urea at prevailing prices will be around $300 per tonne, whereas the imported price of urea is at around $200 per tonne.
8It is a big differential and it has to be paid by the government as subsidy as the BJP government has no intention of raising the price of urea to plug the gap.
8When 9 MMTPA of urea capacity comes on stream, and if the differential between imported price and domestic price remains at $100 per tonne, the central government will have to pay an additional $900 million as subsidy every year.
8This is big money by any yardstick and the question that is being asked is whether the finance ministry will continue to pay out the differential and resist the temptation to import urea if the differential continues to persist year after year.
8One of the reasons why the private urea industry is unwilling to invest is because there is a huge lag in the dispensation of subsidy. Companies are forced to borrow to tide over their working capital requirements -- the interest on such borrowings is often not compensated -- while the government takes its own time to pay up the differential between the cost of production of urea and the farm gate price of urea.
8This will hurt new urea units more than those with depreciated plants. Details
The Principal Secretary to the Prime Minster on Monday, in a meeting that lasted only 20 minutes, put into shape a special purpose vehicle (SPV) that will set up three fertilizer projects worth Rs 18,000 crore.
8As much as 89% of the equity of the SPV, dubbed Hindustan Urvarak Ltd, will be controlled by three cash rich public sector companies, Coal India Ltd (CIL), National Thermal Power Corporation (NTPC) and Indian Oil Corporation (IOC), while the rest of the money will come in the form of land and existing infrastructure from the ailing Hindustan Fertilizer Corporation (HFC) and Fertilizer Corporation of India (FCI).
8Pertinently, none of the three companies has any previous fertilizer sector experience.
The PMO has decided that FCI’s Sindri unit will be put up by Coal India, FCI’s Gorakhpur by NTPC and HFC’s Barauni plant by IOC instead of ONGC, which was previously shortlisted, as the former has a refinery at Barauni.
8This is a clear top-down decision by none other than the Principal Secretary to push through three fertilizer plants in politically sensitive parts of India after the private sector did not respond to tenders taken out by the government to build them.
8The government is stepping in where the private sector is not willing to invest.
Click on Details for more Details
8As much as 89% of the equity of the SPV, dubbed Hindustan Urvarak Ltd, will be controlled by three cash rich public sector companies, Coal India Ltd (CIL), National Thermal Power Corporation (NTPC) and Indian Oil Corporation (IOC), while the rest of the money will come in the form of land and existing infrastructure from the ailing Hindustan Fertilizer Corporation (HFC) and Fertilizer Corporation of India (FCI).
8Pertinently, none of the three companies has any previous fertilizer sector experience.
The PMO has decided that FCI’s Sindri unit will be put up by Coal India, FCI’s Gorakhpur by NTPC and HFC’s Barauni plant by IOC instead of ONGC, which was previously shortlisted, as the former has a refinery at Barauni.
8This is a clear top-down decision by none other than the Principal Secretary to push through three fertilizer plants in politically sensitive parts of India after the private sector did not respond to tenders taken out by the government to build them.
8The government is stepping in where the private sector is not willing to invest.
Click on Details for more Details
Know more about these fertilizer sector investments from us through our project monitoring software.
8After years of stagnancy, the sector is seeing some very active traction.
8Business development opportunities are available not just in the ammonia-urea segment but also in new DAP, NPK, SSP, ammonia and sulphuric acid plants.
8We track hundreds of capital and maintenance projects in this segment.
Our software does just monitor projects. It also provides information on:
8Design capacity and actual capacity utilization in fertilizer facilities and units
8120-day bid outlook
8Demand projections for raw materials
8Gas demand by commissioning date
8Gas usage, connectivity details and pipeline data
8Captive power requirement, electrical demand catered by the grid, electrical sub station and transmission line details
8Energy consumption matrices
8Unit technology details
8Short to medium term investment projections
8Equipment demand estimations
8Status, Type, Stage, and Phase of a project
Click on our Projects button on our home page to know more Details
8After years of stagnancy, the sector is seeing some very active traction.
8Business development opportunities are available not just in the ammonia-urea segment but also in new DAP, NPK, SSP, ammonia and sulphuric acid plants.
8We track hundreds of capital and maintenance projects in this segment.
Our software does just monitor projects. It also provides information on:
8Design capacity and actual capacity utilization in fertilizer facilities and units
8120-day bid outlook
8Demand projections for raw materials
8Gas demand by commissioning date
8Gas usage, connectivity details and pipeline data
8Captive power requirement, electrical demand catered by the grid, electrical sub station and transmission line details
8Energy consumption matrices
8Unit technology details
8Short to medium term investment projections
8Equipment demand estimations
8Status, Type, Stage, and Phase of a project
Click on our Projects button on our home page to know more Details
