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Jun 2017
It is time for Indian companies to tie-in with equipment suppliers who will help in the transition of the Indian shipping industry into a low sulphur emission world, which will become mandatory from 2020.
8There are some good companies worldwide already in the business to help ship owners, shipyards and designers to retrofit the technology necessary to enable an easy change to a low Sulphur environment
8This is a change that allows for full compliance with the regulations with an equipment refit, so that the use of HFO as a fuel will remain viable far into the future.
Click on Reports for more Details
8There are some good companies worldwide already in the business to help ship owners, shipyards and designers to retrofit the technology necessary to enable an easy change to a low Sulphur environment
8This is a change that allows for full compliance with the regulations with an equipment refit, so that the use of HFO as a fuel will remain viable far into the future.
Click on Reports for more Details
A business development opportunity has arisen from following a decision to add two tanks of Ethanol (500 KL each) and one tank of HSD (15000 KL) to an existing terminal complex.
8The type of tankage, class and dimensions are given as well as the additional power requiement
Click on Reports for more Details
8The type of tankage, class and dimensions are given as well as the additional power requiement
Click on Reports for more Details
For reference purposes, the website carries here a general overview of what is in store for the Indian power market as long term power purchase agreements convert into short term agreements.
8The advent of solar energy has dramatically changed the energy paradigm.
8Details of how solar power prices have dropped since 2010 are also tabulated
8Changes likely in the sector are discussed
8The data here is important from the point of view of a gas supplier who is eying the Indian power sector as a possible demand source.
8Is there an opportunity for natural gas in the power sector?
Click on Reports to find out Details
8The advent of solar energy has dramatically changed the energy paradigm.
8Details of how solar power prices have dropped since 2010 are also tabulated
8Changes likely in the sector are discussed
8The data here is important from the point of view of a gas supplier who is eying the Indian power sector as a possible demand source.
8Is there an opportunity for natural gas in the power sector?
Click on Reports to find out Details
The list of new building shipping orders surfacing in ship building yards across the world during the past days has been overwhelming and is reminiscent of busier periods the industry was enjoying about four years ago.
8Yet the price levels are not seeing a big increase as competition among shipbuilders remains fierce, thus not allowing newbuilding values to move accordingly.
8In terms of recently reported deals, Estonian owner, Platano Eesti, placed an order for two firm and one optional mini-Capes (108,000 dwt) at Shanghai Shipyard, in China for a price in the region of $35 million each.
Click on Reports for more Details
8Yet the price levels are not seeing a big increase as competition among shipbuilders remains fierce, thus not allowing newbuilding values to move accordingly.
8In terms of recently reported deals, Estonian owner, Platano Eesti, placed an order for two firm and one optional mini-Capes (108,000 dwt) at Shanghai Shipyard, in China for a price in the region of $35 million each.
Click on Reports for more Details
What are the business development prospects in the Ratna and R Series fields?
8Sources said that ONGC has begun work on both greenfield and brownfield development of the fields
8The brownfield development concerns the R-12 field which was once in production.
8A capital sanction of Rs 4,100 crore has already been made for the fields.
8Find out more, particularly on the brown field development of the R-12 field, and what will it entail fixing a 40 km crude pipeline that is currently in a bad condition
Click on Details for more Details
8Sources said that ONGC has begun work on both greenfield and brownfield development of the fields
8The brownfield development concerns the R-12 field which was once in production.
8A capital sanction of Rs 4,100 crore has already been made for the fields.
8Find out more, particularly on the brown field development of the R-12 field, and what will it entail fixing a 40 km crude pipeline that is currently in a bad condition
Click on Details for more Details
Even as brow field development of the R-12 field is to be carried out, there will be green field development plan as well of the main Ratna and R series fields.
8Find out more about what the green field development will entail.
8Also get to know the key contacts in ONGC involved with the development.
Click on Details for more Details
8Find out more about what the green field development will entail.
8Also get to know the key contacts in ONGC involved with the development.
Click on Details for more Details
ONGC had patted itself on its back when it hired the semi-submersible rig, the Essar Wild Cat from Essar Oil Services India Ltd for a bargain ODR of $ 120,000.
8The contract value was a massive Rs 850 crore and it was deal that ONGC was happy with.
8Find out more on why ONGC is now regretting the decision to hire the rig
Click on Details for more Details
8The contract value was a massive Rs 850 crore and it was deal that ONGC was happy with.
8Find out more on why ONGC is now regretting the decision to hire the rig
Click on Details for more Details
Find out why ONGC becomes helpless when it comes to dealing with the Essar rig.
8What are the systemic defects in ONGC's contracting system that the Essar deal has exposed?
8Is there a way ONGC could have handled the consequences better?
Click on Details for more Details
8What are the systemic defects in ONGC's contracting system that the Essar deal has exposed?
8Is there a way ONGC could have handled the consequences better?
Click on Details for more Details
ONGC did try to find an alternate rig to the Essar semi-submersible rig
8But the effort did not bear fruit.
8Even though quotes were elicited, the company did not go through with the parallel tender to find a substitute rig
Click on Details to find out more on what happened. Details
8But the effort did not bear fruit.
8Even though quotes were elicited, the company did not go through with the parallel tender to find a substitute rig
Click on Details to find out more on what happened. Details
For reference purposes the website carries here the following tenders:
8Carrying out Civil works at “NKKDH” Drill Site in Karaikal Details
8Expression of Interest for Premium Thread Connections for Casing and Tubing Details
8Comprehensive AC interference study utilizing modeling and simulation techniques at VVSPL Details
8Rate Contract Tender for Procurement of Stationary CNG Storage Cascades for CNG DBS and Online Stations Details
8Engaging an agency to carry out Testing & Measurement Pertaining to CP Monitoring & Pipeline Coating of Cross Country Pipelines Details
8Carrying out Piping Replacement jobs in plant during shutdown Details
8Supply of Transmitters for refinery Details
8Procurement of Hydraulic set seal bore thermal packer for steam injection Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8IOC sets extensive maintenance shutdown plans for units Details
8Market now: GAIL, Oil India, Petronet plunge as crude oil prices tank Details
8Oil crawls off one-month lows, but supply gloom caps gains Details
8Shell diverts U.S. LNG cargo to Dubai after Qatari diplomatic row Details
8Oil drops on U.S. Gasoline supply gain, Nigeria output recovery Details
8New Hydrocarbon licensing policy: Government expects no fireworks Details
8Petronet LNG drops 4% as GDF International sells entire 10% stake Details
8India’s top oil refiner to take 600,000 Bpd capacity offline for maintenance Details
8Drilling rig in Norway gets all its power from land to cut emissions Details
8Indian Oil, HP, BP lose market share to Reliance, Essar, Shell Details
8GST: Core sector to face challenges Details
8From June 16, you pay a different price every day for petrol and diesel Details
You can also click on Newsclips for more Details
8Carrying out Civil works at “NKKDH” Drill Site in Karaikal Details
8Expression of Interest for Premium Thread Connections for Casing and Tubing Details
8Comprehensive AC interference study utilizing modeling and simulation techniques at VVSPL Details
8Rate Contract Tender for Procurement of Stationary CNG Storage Cascades for CNG DBS and Online Stations Details
8Engaging an agency to carry out Testing & Measurement Pertaining to CP Monitoring & Pipeline Coating of Cross Country Pipelines Details
8Carrying out Piping Replacement jobs in plant during shutdown Details
8Supply of Transmitters for refinery Details
8Procurement of Hydraulic set seal bore thermal packer for steam injection Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8IOC sets extensive maintenance shutdown plans for units Details
8Market now: GAIL, Oil India, Petronet plunge as crude oil prices tank Details
8Oil crawls off one-month lows, but supply gloom caps gains Details
8Shell diverts U.S. LNG cargo to Dubai after Qatari diplomatic row Details
8Oil drops on U.S. Gasoline supply gain, Nigeria output recovery Details
8New Hydrocarbon licensing policy: Government expects no fireworks Details
8Petronet LNG drops 4% as GDF International sells entire 10% stake Details
8India’s top oil refiner to take 600,000 Bpd capacity offline for maintenance Details
8Drilling rig in Norway gets all its power from land to cut emissions Details
8Indian Oil, HP, BP lose market share to Reliance, Essar, Shell Details
8GST: Core sector to face challenges Details
8From June 16, you pay a different price every day for petrol and diesel Details
You can also click on Newsclips for more Details
For reference purposes the website carries here the following tenders:
8EOI from the Manufactures /Contractors/ Service Providers of Multiphase Pump to be installed for short term hiring to revive production in western offshore Details
8Global Expression Of Interest under International Competitive Basis for Supply and Operation of Rental Units for Enhanced Oil Recovery Operations in Rajasthan Block Details
8Supply of Bentonite Powder Details
8Procurement of Pig Launching Barrel and Monolithic Insulating Joint Details
8Carrying out AC Interference Survey in SRPL Pipeline locations Details
8Procurement of pipes for installation of ROSOV at refinery Details
8Laying of Petroleum Product Pipeline and other associated combined station work Details
8Supply of Calibration Gas Cylinders for Gas Chromatograph at refinery Details
8Overhauling/ Revisioning of valves in refinery during Aug-Sep 2017 Shutdown Details
8Supply of Hydrocarbon, H2S and H2 Gas Detectors for VGO Unit for BS-IV Project Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8A look at how Trump's climate moves affect the coal industry Details
8Gulf firms struggle to keep Qatar business ties despite crisis Details
8Highlights and full text of RBI's bi-monthly monetary policy Details
8'Renewables least cost option in India, Denmark, Egypt' Details
8Oil dips on concerns about rising U.S. output, OPEC tensions Details
8Tankers load Qatari crude along with UAE oil as shipping ban eases Details
8Petrol price to change everyday all over India from June 16 Details
8Parallel talks on Farzad-B Gas Field Details
8India denies Iran shutting it out of gasfield development Details
8Close watch on Qatar tension Details
8France vows to go beyond Paris climate commitments Details
You can also click on Newsclips for more Details
8EOI from the Manufactures /Contractors/ Service Providers of Multiphase Pump to be installed for short term hiring to revive production in western offshore Details
8Global Expression Of Interest under International Competitive Basis for Supply and Operation of Rental Units for Enhanced Oil Recovery Operations in Rajasthan Block Details
8Supply of Bentonite Powder Details
8Procurement of Pig Launching Barrel and Monolithic Insulating Joint Details
8Carrying out AC Interference Survey in SRPL Pipeline locations Details
8Procurement of pipes for installation of ROSOV at refinery Details
8Laying of Petroleum Product Pipeline and other associated combined station work Details
8Supply of Calibration Gas Cylinders for Gas Chromatograph at refinery Details
8Overhauling/ Revisioning of valves in refinery during Aug-Sep 2017 Shutdown Details
8Supply of Hydrocarbon, H2S and H2 Gas Detectors for VGO Unit for BS-IV Project Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8A look at how Trump's climate moves affect the coal industry Details
8Gulf firms struggle to keep Qatar business ties despite crisis Details
8Highlights and full text of RBI's bi-monthly monetary policy Details
8'Renewables least cost option in India, Denmark, Egypt' Details
8Oil dips on concerns about rising U.S. output, OPEC tensions Details
8Tankers load Qatari crude along with UAE oil as shipping ban eases Details
8Petrol price to change everyday all over India from June 16 Details
8Parallel talks on Farzad-B Gas Field Details
8India denies Iran shutting it out of gasfield development Details
8Close watch on Qatar tension Details
8France vows to go beyond Paris climate commitments Details
You can also click on Newsclips for more Details
Deep Industries Ltd calls itself a leader in the gas dehydration business. It has a big chunk of this business from ONGC.
8But the company is now facing very serious allegations of misdemeanors in a set of ONGC contracts
8Highly placed sources said that there is a move now to blacklist the company if further investigations find the misdemeanors to be true.
8But the company is lobbying very hard, and it has been able to elicit the support of a few key directors in fighting the move by the rest of the company to blacklist it.
Click on Details for more Details
8But the company is now facing very serious allegations of misdemeanors in a set of ONGC contracts
8Highly placed sources said that there is a move now to blacklist the company if further investigations find the misdemeanors to be true.
8But the company is lobbying very hard, and it has been able to elicit the support of a few key directors in fighting the move by the rest of the company to blacklist it.
Click on Details for more Details
Who will get higher preference in the pecking order under the Make in India policy guidelines of the petroleum ministry in ONGC?
8While the purchase preference policy is under incorporation in ONGC's tenders, there is also an independent policy for MSME vendors that is already operational.
8If bidders from both the general and MSME segments bid under the same tender, who ends up getting a preference under an ONGC tender?
Click on Details for more Details
8While the purchase preference policy is under incorporation in ONGC's tenders, there is also an independent policy for MSME vendors that is already operational.
8If bidders from both the general and MSME segments bid under the same tender, who ends up getting a preference under an ONGC tender?
Click on Details for more Details
For reference purposes, the website carries here the latest LNG production, liquefaction and shipping costs.
The data is provided for the following countries:
8Qatar
8USA Lousiana
8Australia North
8Australia West
8Australia East
8Papua New Guinea
8East Africa
8Canada
8The cost is split up into product, liquefaction and shipping segments
8t will be noticed from the data that LNG cost from East Africa where ONGC and OIL have deployed $ 5 billion in a project in Mozambique is still among the highest in the world.
Click on Reports for more Details
The data is provided for the following countries:
8Qatar
8USA Lousiana
8Australia North
8Australia West
8Australia East
8Papua New Guinea
8East Africa
8Canada
8The cost is split up into product, liquefaction and shipping segments
8t will be noticed from the data that LNG cost from East Africa where ONGC and OIL have deployed $ 5 billion in a project in Mozambique is still among the highest in the world.
Click on Reports for more Details
8Government mulls an LNG bunker near Mumbai similar to the one being set up in the Haldia dock.Click on Report for more.
8GST roll-out and its impact on the logistics industry.Click on Report for more.
8Major ports cargo handling up 7% in 2017.Click on Report for more.
8Mumbai port handles highest ever cargo.Click on Report for more.
8OPEC's willing to cut output is stronger than ever: The organization gets tighter and more efficient.
Click on Reports for more Details
8GST roll-out and its impact on the logistics industry.Click on Report for more.
8Major ports cargo handling up 7% in 2017.Click on Report for more.
8Mumbai port handles highest ever cargo.Click on Report for more.
8OPEC's willing to cut output is stronger than ever: The organization gets tighter and more efficient.
Click on Reports for more Details
A June, 2017 projection indicates that the current LNG supply glut will not end in the early 2020s.
8In fact it will continue until 2025
8For even though there is over supply, low cost producers in Qatar and the US are going ahead with more LNG projects
8The rebalancing of the market will happen in the second half of 2020s
8There are going to be some shutdown of high cost capacity, the report claims.
8Meanwhile, new trends are emerging in the LNG market, with LNG buyers competing directly with primary suppliers of the product.
8The contractual system is breaking down as well
Click on Reports for more Details
8In fact it will continue until 2025
8For even though there is over supply, low cost producers in Qatar and the US are going ahead with more LNG projects
8The rebalancing of the market will happen in the second half of 2020s
8There are going to be some shutdown of high cost capacity, the report claims.
8Meanwhile, new trends are emerging in the LNG market, with LNG buyers competing directly with primary suppliers of the product.
8The contractual system is breaking down as well
Click on Reports for more Details
Real progress in the CGD business can be made when existing entry barriers are brought down so that competing players can offer products in well development markets
8The barriers do not extend just to authorization and exclusivity alone
8There are other determinants too
Click on Reports for more Details
8The barriers do not extend just to authorization and exclusivity alone
8There are other determinants too
Click on Reports for more Details
ONGC seems to be facing a hurdle in handling tenders that it may circulate for midstream and downstream segments of the oil and gas industry.
8These have different local content percentages from the upstream segment.
8There is still a fair amount of confusion on how local content is defined for an upstream, midstream and downstream companies.
Click on Details to find out more Details
8These have different local content percentages from the upstream segment.
8There is still a fair amount of confusion on how local content is defined for an upstream, midstream and downstream companies.
Click on Details to find out more Details
The targets for local content will move up over three time slabs, going up to 2022.
8The local content limit will change with effect from April, 2018 and then again in April, 2020.
8How will public sector companies incorporate these changes in their tender conditions and when will they be applicable?
Click on Details to find out more Details
8The local content limit will change with effect from April, 2018 and then again in April, 2020.
8How will public sector companies incorporate these changes in their tender conditions and when will they be applicable?
Click on Details to find out more Details
The big problem will be for a third party supplier of materials or an authorized dealer who wants to take advantage of the local content clause in an ONGC tender
8Would a mere certificate from the supplier that the material adheres to the local content conditionality do?
8Or will more due diligence be required?
8Who will be responsible then for adherence to the local content commitment? The supplier or the producer of the material?
Click on Details to find out more Details
8Would a mere certificate from the supplier that the material adheres to the local content conditionality do?
8Or will more due diligence be required?
8Who will be responsible then for adherence to the local content commitment? The supplier or the producer of the material?
Click on Details to find out more Details
What will happen if a contactor selected on the basis of his local content commitment has been found to be violating the norm while implementing a contract?
8There is a provision for an additional bank guarantee of 10% from the contractor
8Should more penalties be imposed on him?
Click on Details to find out more Details
8There is a provision for an additional bank guarantee of 10% from the contractor
8Should more penalties be imposed on him?
Click on Details to find out more Details
ONGC seems be opposed to the provision of splitting up the tendered quantity among more than one eligible bidder under the local content drive.
8Sources said that this was not a compulsory provision under the promotion of local content programme.
8But nevertheless, the provision will be streamlined and fine tuned by ONGC.
Also the local content provisions will not be applicable on all tenders but on specific items and the local content clause will be incorporated on in those tenders where it is to be applicable.
Click on Details to find out more Details
8Sources said that this was not a compulsory provision under the promotion of local content programme.
8But nevertheless, the provision will be streamlined and fine tuned by ONGC.
Also the local content provisions will not be applicable on all tenders but on specific items and the local content clause will be incorporated on in those tenders where it is to be applicable.
Click on Details to find out more Details
For reference purposes the website carries here the following tenders:
8Hiring Third Party Inspection Agency (TPIA) for City Gas Projects Details
8Laying/ Construction of 3LPE Coated Pipeline in OIL's operational areas of Assam Details
8Hiring of Horizontal Drilling and Mud Engineering Services for Drilling Two Horizontal Wells on call out basis Details
8Hiring of Services for Well Activation, Well Servicing, Completion of Fifteen Gas/ Oil Wells and Acidization of Five Gas/ Oil Wells in Rajasthan Details
8Supply of Carbon Steel X-Mass Tree Assembly for Rajasthan Project Details
8Carrying out Third Party Inspection Services for Barauni Refinery Vessels Details
8Supply of Liquid Nitrogen in refinery Details
8Supply of Natural Gas Analyser Package Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Qatar diplomatic crisis will not have any significant impact on crude or gas supply: Alastair Newton, Alavan Business Advisory Details
8Qatar's dispute with Arab neighbours likely to impact India's oil import bill Details
8‘Petrol pumps, gas agencies to be governed by Centre’s law’ Details
8Petronas' stake sale of offshore gas asset advances to second round-sources Details
8Oil subdued on worries Middle East rift will sap efforts to cut output Details
8ONGC may buy out government’s entire holding in HPCL Details
8OIL achieves hydrocarbon find in Upper Assam Basin Details
8Indian basket of crude oils goes below $50 per barrel Details
8Assam Gas submits expression of interest for 750-km Barauni-Guwahati natural gas pipeline Details
8Poland, Ukraine develop gas hub for independence from Russia Details
You can also click on Newsclips for more Details
8Hiring Third Party Inspection Agency (TPIA) for City Gas Projects Details
8Laying/ Construction of 3LPE Coated Pipeline in OIL's operational areas of Assam Details
8Hiring of Horizontal Drilling and Mud Engineering Services for Drilling Two Horizontal Wells on call out basis Details
8Hiring of Services for Well Activation, Well Servicing, Completion of Fifteen Gas/ Oil Wells and Acidization of Five Gas/ Oil Wells in Rajasthan Details
8Supply of Carbon Steel X-Mass Tree Assembly for Rajasthan Project Details
8Carrying out Third Party Inspection Services for Barauni Refinery Vessels Details
8Supply of Liquid Nitrogen in refinery Details
8Supply of Natural Gas Analyser Package Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Qatar diplomatic crisis will not have any significant impact on crude or gas supply: Alastair Newton, Alavan Business Advisory Details
8Qatar's dispute with Arab neighbours likely to impact India's oil import bill Details
8‘Petrol pumps, gas agencies to be governed by Centre’s law’ Details
8Petronas' stake sale of offshore gas asset advances to second round-sources Details
8Oil subdued on worries Middle East rift will sap efforts to cut output Details
8ONGC may buy out government’s entire holding in HPCL Details
8OIL achieves hydrocarbon find in Upper Assam Basin Details
8Indian basket of crude oils goes below $50 per barrel Details
8Assam Gas submits expression of interest for 750-km Barauni-Guwahati natural gas pipeline Details
8Poland, Ukraine develop gas hub for independence from Russia Details
You can also click on Newsclips for more Details
There is a tug of war going on within ONGC over how to handle the problem with Deep Industries.
8A direction has been given by the vigilance department to take action to invoke the contract and take necessary steps to blacklist the company.
8But this attempt was fobbed off by senior ONGC personnel on the basis of the argument that more information and documentation would be needed before the last steps are taken.
8So far the evidence seems to point against Deep Industries
8ONGC has now decided to appoint a senior level officer to conduct an investigation
Find out more on the allegations and counter allegations circulating against Deep Industries Details
8A direction has been given by the vigilance department to take action to invoke the contract and take necessary steps to blacklist the company.
8But this attempt was fobbed off by senior ONGC personnel on the basis of the argument that more information and documentation would be needed before the last steps are taken.
8So far the evidence seems to point against Deep Industries
8ONGC has now decided to appoint a senior level officer to conduct an investigation
Find out more on the allegations and counter allegations circulating against Deep Industries Details
Clearly GAIL's arbitrage play is going to be profitable only when the Brent price is at $ 63/bbl.
8If oil prices are lower, as they are likely to be as the recent price rally was found unsustainable because the basic fundamentals were unsupportive, GAIL will be staring at big losses.
8Then again, most of the commitments for the extra LNG that GAIL can sell in the Indian market will come without take or pay obligations.
8This is a big risk in India as the market is extremely price sensitive and furnace owners can switch back to fuel oil or other low cost fuels if the price advantage disappears.
8What is also to be kept in mind is that GAIL has for a very long time abused its position as a monopoly supplier of gas and there is not a single buyer who does not have a litany of complaints against the gas buyer.
8The gas major cannot sustain enduring relationships and in times of trouble , there will be no one in the domestic market who will be willing to help it out.
8The only relationship that it has managed to sustain with a great amount of vigour is the one with its master, the government of India, that springs to its defence every time it is in some kind of trouble, be it supporting the company brass even after an enquiry blamed the management for the death of 22 people in a pipeline blast or when there was a cry from the regulator and the industry to dilute the gas major's vice like grip on the domestic gas market.
8It will be interesting to watch what the government will do to bail out the company from the corner that it seems to have maneuvered itself into this time around.
Click on Reports for more Details
8If oil prices are lower, as they are likely to be as the recent price rally was found unsustainable because the basic fundamentals were unsupportive, GAIL will be staring at big losses.
8Then again, most of the commitments for the extra LNG that GAIL can sell in the Indian market will come without take or pay obligations.
8This is a big risk in India as the market is extremely price sensitive and furnace owners can switch back to fuel oil or other low cost fuels if the price advantage disappears.
8What is also to be kept in mind is that GAIL has for a very long time abused its position as a monopoly supplier of gas and there is not a single buyer who does not have a litany of complaints against the gas buyer.
8The gas major cannot sustain enduring relationships and in times of trouble , there will be no one in the domestic market who will be willing to help it out.
8The only relationship that it has managed to sustain with a great amount of vigour is the one with its master, the government of India, that springs to its defence every time it is in some kind of trouble, be it supporting the company brass even after an enquiry blamed the management for the death of 22 people in a pipeline blast or when there was a cry from the regulator and the industry to dilute the gas major's vice like grip on the domestic gas market.
8It will be interesting to watch what the government will do to bail out the company from the corner that it seems to have maneuvered itself into this time around.
Click on Reports for more Details
So what is the landed price of GAIL US LNG going to be in India?
8Quite expensive by any yardstick
8The FOB price of US LNG comes to around $ 6.8/mmbtu, including a 115% premium over the Henry Hub price of $ 3.30/mmbtu and a mandatory capacity charge of $ 3/mmbtu.
8The shipping cost will be around $ 2.0/mmbtu, to which an import duty of 2.5% and liquefaction charge of $ 0.7/mmbtu can be added.
8The price at which HH indexed gas can land in India (ex-terminal) will be around $ 9.7/mmbtu.
8This is expensive by any yardstick. Spot prices are invariably going to be significantly lower because of LNG over-supply globally, and oil price will have to hover around $ 65/bbl for the price to pierce the $ 9.7/bbl level.
8The final delivered price will be even higher and this is going to turn away price sensitive Indian buyers.
8If oil prices go down to $ 40/bbl, which is not unlikely, the loss for GAIL could be a staggering $ 3.2/mmbtu under this business model.
Click on Reports for more. Details
8Quite expensive by any yardstick
8The FOB price of US LNG comes to around $ 6.8/mmbtu, including a 115% premium over the Henry Hub price of $ 3.30/mmbtu and a mandatory capacity charge of $ 3/mmbtu.
8The shipping cost will be around $ 2.0/mmbtu, to which an import duty of 2.5% and liquefaction charge of $ 0.7/mmbtu can be added.
8The price at which HH indexed gas can land in India (ex-terminal) will be around $ 9.7/mmbtu.
8This is expensive by any yardstick. Spot prices are invariably going to be significantly lower because of LNG over-supply globally, and oil price will have to hover around $ 65/bbl for the price to pierce the $ 9.7/bbl level.
8The final delivered price will be even higher and this is going to turn away price sensitive Indian buyers.
8If oil prices go down to $ 40/bbl, which is not unlikely, the loss for GAIL could be a staggering $ 3.2/mmbtu under this business model.
Click on Reports for more. Details
8Reliance Gas has for the first time launched LPG in Composite Cylinders of 10 kg and 5 kg capacity in Pune. The trend towards composite cylinders is now gaining ground and there could be a business opportunity here.Click on Report for more.
8Mega tanker deals have been grabbing the headlines recently. The Trafigura Group announced this week announced that they will order up to 32 new crude oil and product tankers at Hyundai Heavy Industries (HHI) and New Times Shipbuilding (NTS) in China with a potential value in excess of $1.35 Billion. The second major deal involved Teekay Tankers who will take over fleet of ten Suezmaxes, six Aframaxes and two LR 2 product tankers from its sister company in an "all-share" transaction. Click on Report for more.
8Price build-up matrix for kerosene.Click on Report for more.
8Latest prices of the Indian basket for crude and under recoveries.Click on Report for more.
8Advisory from the ministry of urban development on laying of gas pipelines.Click on Report for more.
8Latest HOEC update on the Phase 1 of Dirok Gas Development project. Click on Report for more.
8The CGD sector has benefited in a significant manner from the government’s decision to prioritise the allocation of domestic natural gas for CNG and domestic PNG customers. This has enabled Mahanagar Gas Ltd to access cheaper gas for CNG and domestic business segments, constituting 86% of total sales volume. MGL’s strong gas pipeline infrastructure and expanding operations in Mumbai, its adjoining areas and Raigad district will enable the company to capture the benefits of the large and growing market given the low penetration.
Click on Reports for more Details
8Mega tanker deals have been grabbing the headlines recently. The Trafigura Group announced this week announced that they will order up to 32 new crude oil and product tankers at Hyundai Heavy Industries (HHI) and New Times Shipbuilding (NTS) in China with a potential value in excess of $1.35 Billion. The second major deal involved Teekay Tankers who will take over fleet of ten Suezmaxes, six Aframaxes and two LR 2 product tankers from its sister company in an "all-share" transaction. Click on Report for more.
8Price build-up matrix for kerosene.Click on Report for more.
8Latest prices of the Indian basket for crude and under recoveries.Click on Report for more.
8Advisory from the ministry of urban development on laying of gas pipelines.Click on Report for more.
8Latest HOEC update on the Phase 1 of Dirok Gas Development project. Click on Report for more.
8The CGD sector has benefited in a significant manner from the government’s decision to prioritise the allocation of domestic natural gas for CNG and domestic PNG customers. This has enabled Mahanagar Gas Ltd to access cheaper gas for CNG and domestic business segments, constituting 86% of total sales volume. MGL’s strong gas pipeline infrastructure and expanding operations in Mumbai, its adjoining areas and Raigad district will enable the company to capture the benefits of the large and growing market given the low penetration.
Click on Reports for more Details
Had GAIL had the foresight to hire international talent for its gas buying and trading arm, the going could have perhaps been smoother for the gas major.
8Some of the intractable problems that GAIL is facing now could have been better answered had it hired talent with international experience.
8There would have been someone to point out that depending upon a single arbitrage model will be too risky and that it needed to have a diversified arbitrage portfolio if it wanted to be in the global gas buying business.
8Yet others would have given the gas major a different set of advise on whether it needed to have an LNG shipping fleet of its own.
8Still others would have provided more choices than what is available now on what to do with its LNG cargos from the US.
8The problem however is that Indian oil and gas majors do not have a policy of hiring international talent as the salary structures will not fit into the stratified system that is already in place.
8So what eventually happens is that a bright and earnest executive director or a general manage from the corporate office is put in charge of critical decisions on which the officer has little or no experience.
8There are many examples of wrong decision making.
8Oil India's foray into Mozambique or Venezuela were taken by a bunch of officers whose exposure was limited to serving time in Duliajan and Noida. It is easy then for a smart international consultant to make a sales pitch to bunch of gullible officers.
8Eventually, decisions are taken without full risk analysis.
8Responsibility is diffused in Indian public sector oil companies and there is no one there to take the blame when things go wrong.
8One of the suggestions in a recent policy paper is for oil companies to be given the freedom to hire global talent and pay a premium for it.
8Whether the government is going to follow through on the suggestion remains a moot point.
Click on Reports for more Details
8Some of the intractable problems that GAIL is facing now could have been better answered had it hired talent with international experience.
8There would have been someone to point out that depending upon a single arbitrage model will be too risky and that it needed to have a diversified arbitrage portfolio if it wanted to be in the global gas buying business.
8Yet others would have given the gas major a different set of advise on whether it needed to have an LNG shipping fleet of its own.
8Still others would have provided more choices than what is available now on what to do with its LNG cargos from the US.
8The problem however is that Indian oil and gas majors do not have a policy of hiring international talent as the salary structures will not fit into the stratified system that is already in place.
8So what eventually happens is that a bright and earnest executive director or a general manage from the corporate office is put in charge of critical decisions on which the officer has little or no experience.
8There are many examples of wrong decision making.
8Oil India's foray into Mozambique or Venezuela were taken by a bunch of officers whose exposure was limited to serving time in Duliajan and Noida. It is easy then for a smart international consultant to make a sales pitch to bunch of gullible officers.
8Eventually, decisions are taken without full risk analysis.
8Responsibility is diffused in Indian public sector oil companies and there is no one there to take the blame when things go wrong.
8One of the suggestions in a recent policy paper is for oil companies to be given the freedom to hire global talent and pay a premium for it.
8Whether the government is going to follow through on the suggestion remains a moot point.
Click on Reports for more Details
This is as good a time as any for the government to rethink its policy of opposing PNGRB's long standing suggestion to split up GAIL's transmission and marketing functions.
8There is a clear conflict of interest here, as GAIL's network is the backbone of India's gas transmission infrastructure and yet the same company uses up to 80% of this capacity.
8There are many examples of how GAIL pressurizes its customers into one sided gas sales agreements.
8A recent complaint filed with the PNGRB speaks of shocking highhandedness by the public sector gas major with its customers.
8Then again, other gas suppliers speak of how GAIL creates all kinds of entry barriers, including direct and indirect sops, to retain existing customers when a competitor reaches out to them. The informal waiving of Take or Pay conditions for customers when another supplier comes knocking is a way to keep a customer away from a competitor who cannot afford to waive that clause.
8"Most of GAIL's marketing policies are monopolistic in nature and violate competitive principles but such is the terror unleashed by this monopoly supplier of gas on consumers that most choose to stay quiet than to speak out," a big gas buyer told this website.
8The views of the Modi government on breaking up GAIL into its transmission and marketing arms are not known but the signals are that it supports the status quo.
8GAIL recently got an infusion of government funds to build the trunk Jagdishpur-Haldia pipeline. This is an argument often used by GAIL to silence its critics: that it builds pipeline infrastructure in places where others will not go even though the counter argument could well be that any pipeline company will build such a pipeline if viability gap funding is granted .
8GAIL is a corporate entity driven by profit as much as its competitors are. It will never lay a pipeline that does not provide for a positive NPV.
8The sooner GAIL's monopoly is broken up, the better it is going to be for India as the free play will allow more sophisticated global and local players to enter the gas supply business to be benefit of buyers.
Click on Reports for more Details
8There is a clear conflict of interest here, as GAIL's network is the backbone of India's gas transmission infrastructure and yet the same company uses up to 80% of this capacity.
8There are many examples of how GAIL pressurizes its customers into one sided gas sales agreements.
8A recent complaint filed with the PNGRB speaks of shocking highhandedness by the public sector gas major with its customers.
8Then again, other gas suppliers speak of how GAIL creates all kinds of entry barriers, including direct and indirect sops, to retain existing customers when a competitor reaches out to them. The informal waiving of Take or Pay conditions for customers when another supplier comes knocking is a way to keep a customer away from a competitor who cannot afford to waive that clause.
8"Most of GAIL's marketing policies are monopolistic in nature and violate competitive principles but such is the terror unleashed by this monopoly supplier of gas on consumers that most choose to stay quiet than to speak out," a big gas buyer told this website.
8The views of the Modi government on breaking up GAIL into its transmission and marketing arms are not known but the signals are that it supports the status quo.
8GAIL recently got an infusion of government funds to build the trunk Jagdishpur-Haldia pipeline. This is an argument often used by GAIL to silence its critics: that it builds pipeline infrastructure in places where others will not go even though the counter argument could well be that any pipeline company will build such a pipeline if viability gap funding is granted .
8GAIL is a corporate entity driven by profit as much as its competitors are. It will never lay a pipeline that does not provide for a positive NPV.
8The sooner GAIL's monopoly is broken up, the better it is going to be for India as the free play will allow more sophisticated global and local players to enter the gas supply business to be benefit of buyers.
Click on Reports for more Details
Jun 06 : GAIL in trouble over US LNG commitments-II: Oil price crash brought down its business model
So where is GAIL headed with the bulk of its US commitments?
8It does not have the depth and expertise to play the international market where sophisticated and deep pocketed players have a hegemony.
8So the gas major is headed to the only place where it feels safe, which is India.
8But it will be playing a dangerous game of arbitrage in its own backyard over which it will have little or no control, with the capacity to singe its balance sheet.
8GAIL is going to buy at Henry Hub prices in the US and then sell in oil-indexed contracts in India.
8That was in fact the original plan, but that was when oil prices were ruling at over $ 100/bbl and there was a wide differential between HH and oil indexed pricing.
8But oil prices have crashed and the business model went down with it.
Click on Reports for more Details
8It does not have the depth and expertise to play the international market where sophisticated and deep pocketed players have a hegemony.
8So the gas major is headed to the only place where it feels safe, which is India.
8But it will be playing a dangerous game of arbitrage in its own backyard over which it will have little or no control, with the capacity to singe its balance sheet.
8GAIL is going to buy at Henry Hub prices in the US and then sell in oil-indexed contracts in India.
8That was in fact the original plan, but that was when oil prices were ruling at over $ 100/bbl and there was a wide differential between HH and oil indexed pricing.
8But oil prices have crashed and the business model went down with it.
Click on Reports for more Details
Finally, the chickens are coming home to roost for GAIL on its US LNG bet.
8The gas major is now going to play an extremely risky game for which it does not have either the stomach or the expertise.
8To begin with, news reports have been falsely claiming that of the committed offtake of 5.8 MMTPA of US LNG, 1.5 MMTPA has been placed by GAIL in safe long term contracts.
8In fact the only "safe" contract is for 0.6 MMTPA of LNG with Shell for 25 years.
8The other two contracts -- for 0.6 MMTPA with Gunvor and another 0.3 MMTPA with a third party -- are negotiable within one year.
8And they are complicated contracts, with one that is a risky swap between Henry Hub-indexed and oil indexed supplies. The swap is at a steep 12% slope to oil prices.
8Clearly this is a risky transaction. The arbitrage risk is on GAIL in this one, and while Gunvor is an experienced player who knows how to hedge its risks, does GAIL have the tools and the information to know where it is headed?
8The answer is a clear "no".
8GAIL has been furiously looking at placing the rest of its US offtake into safe contractual commitments for the past couple of years but in the prevailing uncertain times, no one is willing to simply take on someone else's risk portfolio.
Click on Reports for more Details
8The gas major is now going to play an extremely risky game for which it does not have either the stomach or the expertise.
8To begin with, news reports have been falsely claiming that of the committed offtake of 5.8 MMTPA of US LNG, 1.5 MMTPA has been placed by GAIL in safe long term contracts.
8In fact the only "safe" contract is for 0.6 MMTPA of LNG with Shell for 25 years.
8The other two contracts -- for 0.6 MMTPA with Gunvor and another 0.3 MMTPA with a third party -- are negotiable within one year.
8And they are complicated contracts, with one that is a risky swap between Henry Hub-indexed and oil indexed supplies. The swap is at a steep 12% slope to oil prices.
8Clearly this is a risky transaction. The arbitrage risk is on GAIL in this one, and while Gunvor is an experienced player who knows how to hedge its risks, does GAIL have the tools and the information to know where it is headed?
8The answer is a clear "no".
8GAIL has been furiously looking at placing the rest of its US offtake into safe contractual commitments for the past couple of years but in the prevailing uncertain times, no one is willing to simply take on someone else's risk portfolio.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Carrying out Topographic and Geotechnical Investigation for Vijaipur Auraiya Pipeline Project Details
8Procurement of 1200MT Hydrochloric Acid for integrated offsite plant at BCPL Lepetkata Details
8Inspection by Third Party Agency for Coal Gasification Plant at Talcher Odisha for Talcher Fertilizers Limited Details
8Hiring of PNGRB Accredited TPIA for certification of IMS Documents for Sonepat, Meerut, Kota and Dewas Details
8Procurement of Multi-Function Gas Detectors for O&M Bases for City Gas Distribution Project Details
8Optical fiber based Pipeline Intrusion Detection System for monitoring third party intrusion in HPCL Pipelines Details
8Annual Maintenance Contract of Gas Monitoring System Details
8Extension of surge line from PT 02 to PT 04 at Paradip Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8India's Petronet: no impact on Qatar LNG as Saudi, others cut ties Details
8Qatar's dispute with Arab states lifts oil prices, may impact LNG supplies Details
8Australian state looks to ease power volatility with gas Details
8Big oil, small U.S. towns see new reward in old production technique Details
8Oil Ministry forms 'super-board' to monitor ONGC, OIL performance Details
8US energy secretary challenges China to be leader on climate Details
8Oil prices dip on fears Middle East spat could harm OPEC cuts Details
8Qatar row: India's natural gas import to remain unaffected Details
8'India First' policy shuts China bidders out of Gail pipeline projects worth Rs 3,000 crore Details
8For Sardar Patel statue, oil PSUs are ‘directed’ to pay Rs 200 crore Details
8Hindustan Oil Exploration Company updates on Dirok Gas Development Project Details
8Twin panels to track oil drill Details
You can also click on Newsclips for more Details
8Carrying out Topographic and Geotechnical Investigation for Vijaipur Auraiya Pipeline Project Details
8Procurement of 1200MT Hydrochloric Acid for integrated offsite plant at BCPL Lepetkata Details
8Inspection by Third Party Agency for Coal Gasification Plant at Talcher Odisha for Talcher Fertilizers Limited Details
8Hiring of PNGRB Accredited TPIA for certification of IMS Documents for Sonepat, Meerut, Kota and Dewas Details
8Procurement of Multi-Function Gas Detectors for O&M Bases for City Gas Distribution Project Details
8Optical fiber based Pipeline Intrusion Detection System for monitoring third party intrusion in HPCL Pipelines Details
8Annual Maintenance Contract of Gas Monitoring System Details
8Extension of surge line from PT 02 to PT 04 at Paradip Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8India's Petronet: no impact on Qatar LNG as Saudi, others cut ties Details
8Qatar's dispute with Arab states lifts oil prices, may impact LNG supplies Details
8Australian state looks to ease power volatility with gas Details
8Big oil, small U.S. towns see new reward in old production technique Details
8Oil Ministry forms 'super-board' to monitor ONGC, OIL performance Details
8US energy secretary challenges China to be leader on climate Details
8Oil prices dip on fears Middle East spat could harm OPEC cuts Details
8Qatar row: India's natural gas import to remain unaffected Details
8'India First' policy shuts China bidders out of Gail pipeline projects worth Rs 3,000 crore Details
8For Sardar Patel statue, oil PSUs are ‘directed’ to pay Rs 200 crore Details
8Hindustan Oil Exploration Company updates on Dirok Gas Development Project Details
8Twin panels to track oil drill Details
You can also click on Newsclips for more Details
The website also carries here answers to the following queries:
8Will the high Asian spot prices of winter 2016–2017 be sustained?
8Will there be more liquefaction FIDs despite loose market conditions?
8What trends could emerge for new LNG contracts?
8Will there be more LNG-related asset ownership changes?
8How will existing LNG contracts come under pressure in 2017?
8Can LNG in shipping bunkers be transformative for LNG demand?
8How will individual country (regional) dynamics impact the LNG balance?
Will price relationship shifts slow India’s spot import momentum?
8For the last two years, India has provided an important destination for spot cargoes and it is expected that this will continue into 2017 and 2018. Additional regasification capacity is coming up during the year. A key factor in India’s current procurement will be the oil price and arbitrage potential between oil-indexed LNG contracts and spot volumes. If spot prices increase relative to oil, this could yield a much milder appetite for spot LNG.
Click on Reports for more Details
8Will the high Asian spot prices of winter 2016–2017 be sustained?
8Will there be more liquefaction FIDs despite loose market conditions?
8What trends could emerge for new LNG contracts?
8Will there be more LNG-related asset ownership changes?
8How will existing LNG contracts come under pressure in 2017?
8Can LNG in shipping bunkers be transformative for LNG demand?
8How will individual country (regional) dynamics impact the LNG balance?
Will price relationship shifts slow India’s spot import momentum?
8For the last two years, India has provided an important destination for spot cargoes and it is expected that this will continue into 2017 and 2018. Additional regasification capacity is coming up during the year. A key factor in India’s current procurement will be the oil price and arbitrage potential between oil-indexed LNG contracts and spot volumes. If spot prices increase relative to oil, this could yield a much milder appetite for spot LNG.
Click on Reports for more Details
A reasonable amount of momentum is being noticed towards kick starting investments in offshore development and attached LNG projects in Mozambique.
8Three Indian companies, ONGC, OIL and BPCL are heavily investment in one of the two big gas projects in the African country
8Indications are that one set of promoters -- not the one in which the Indian trio are involved -- have launch the implementation of their upstream-cum-LNG project
8It will be a 3.4 MMTPA Floating Natural Gas Unit, and gas will be fed from an adjacent field with reserves of 16 tcf.
8The main promoters of the project in which ONGC, OIL and BPCL are involved are also making efforts at implementation but the they have not borne fruit as yet.
8But there is a now more excitement over Mozambique than earlier and there is activity among teams in the Indian companies attached to it.
8Project implementation however is still a long way off. Various cost estimates are being investigated, including the cost of liquefaction terminals, both onshore and offshore.
8The consortium had submitted a 12 MMTPA onshore development project but now that the rivals have stolen a march by going in for a much smaller 3.4 MMTPA floating terminal, there is rethinking going on over what should be the best option out.
8For reference purposes, the average cost breakdown of liquefaction plants globally are carried here.
8The website also carries here the risks that such a liquefaction facility carries for stakeholders and the reasons for the holdup in Mozambique.
Click on Reports for more Details
8Three Indian companies, ONGC, OIL and BPCL are heavily investment in one of the two big gas projects in the African country
8Indications are that one set of promoters -- not the one in which the Indian trio are involved -- have launch the implementation of their upstream-cum-LNG project
8It will be a 3.4 MMTPA Floating Natural Gas Unit, and gas will be fed from an adjacent field with reserves of 16 tcf.
8The main promoters of the project in which ONGC, OIL and BPCL are involved are also making efforts at implementation but the they have not borne fruit as yet.
8But there is a now more excitement over Mozambique than earlier and there is activity among teams in the Indian companies attached to it.
8Project implementation however is still a long way off. Various cost estimates are being investigated, including the cost of liquefaction terminals, both onshore and offshore.
8The consortium had submitted a 12 MMTPA onshore development project but now that the rivals have stolen a march by going in for a much smaller 3.4 MMTPA floating terminal, there is rethinking going on over what should be the best option out.
8For reference purposes, the average cost breakdown of liquefaction plants globally are carried here.
8The website also carries here the risks that such a liquefaction facility carries for stakeholders and the reasons for the holdup in Mozambique.
Click on Reports for more Details
GAIL seems to be ill prepared compared to other deep pocketed and more sophisticated LNG players who have booked capacities in US LNG terminals.
pricing.
8A large portion of US LNG is contracted out to big portfolio players, such as Shell, Gas Natural, Total and EDF, which have positions on both the buy and sell side of the market. They also have their own shipping fleets. Because of these variables, a clear or consistent pricing incentive may not be required to see high levels of US LNG exports from these portfolio players.
8In contrast however, GAIL is ill prepared to take on forthcoming LNG supplies as it lacks the buy and sell side depths of these big players and is devoid of a shipping fleet.
8Beyond portfolio players, Asian utilities that have capacity offtake agreements for US LNG are beginning to trade volumes of LNG on a spot and short-term basis.
8Whether GAIL will have the sophistication and finesse to play this game without loss remains a moot point.
8US LNG offtakers are also swapping cargoes to minimize shipping costs and GAIL intends to do that too.
8GAIL is in this business too, as it looks to swap US LNG cargoes in exchange for LNG supply elsewhere but whether it can do so without trouble remains to be seen
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pricing.
8A large portion of US LNG is contracted out to big portfolio players, such as Shell, Gas Natural, Total and EDF, which have positions on both the buy and sell side of the market. They also have their own shipping fleets. Because of these variables, a clear or consistent pricing incentive may not be required to see high levels of US LNG exports from these portfolio players.
8In contrast however, GAIL is ill prepared to take on forthcoming LNG supplies as it lacks the buy and sell side depths of these big players and is devoid of a shipping fleet.
8Beyond portfolio players, Asian utilities that have capacity offtake agreements for US LNG are beginning to trade volumes of LNG on a spot and short-term basis.
8Whether GAIL will have the sophistication and finesse to play this game without loss remains a moot point.
8US LNG offtakers are also swapping cargoes to minimize shipping costs and GAIL intends to do that too.
8GAIL is in this business too, as it looks to swap US LNG cargoes in exchange for LNG supply elsewhere but whether it can do so without trouble remains to be seen
Click on Reports for more Details
For those who are setting up LNG degasification terminals in India, it is important to know the global cost benchmarks for such terminals in India.
8In 2017, the average unit cost of onshore regasification capacity is $334/tonne. This cost has been moving up rapidly over the last few years. In 2015 for example, the cost was $ 90 per tonne less.
8But this is more on account of larger storage tanks to allow for higher imports. The storage capacity size per unit of regasification capacity has been going up.
8There is the likelihood of the regasification cost coming down in 2018.
8On the other hand, the capx of FSRUs has gone down over the past three years, declining from a high of $158/tonne in 2014 to $ 78/tonne in 2017 beginning.
8A rise in FSRU conversions, which can be brought into operations at a lower cost than new-build vessels, will be a factor in reducing average floating terminal capex
8As of now, there are six FSRUs considered to be under construction as well as seven forthcoming FSRU projects that have selected an FSRU provider.
8Four of these projects have notably high capex, indicating that average FSRU costs could be rising moving forward. The website carries here full details of FRSUs in terms of those Laid-Up, Converted FSUs & Converted FLNGs
8As with onshore terminals, larger vessels – and thus greater storage and send-out capacity – have accompanied higher capex. Still, there is generally less variation in overall capx for floating terminals than for onshore facilities, which is partly a reflection of fewer differences in capacity and storage size for vessel-based terminal solutions.
8Data shows that the trend towards choosing FRSUs is likely to gain momentum in the rest of 2017 and in 2018
8A map of global LNG receiving terminals is carried here for reference purposes as also regasification terminals which are currently under construction.
8A full list of regasification terminals is documented in terms of country, start year, terminal name, nameplate capacity, owners and type
8A similar list of under construction, under planning and running liquefaction terminals is carried here.
Click on Reports for more Details
8In 2017, the average unit cost of onshore regasification capacity is $334/tonne. This cost has been moving up rapidly over the last few years. In 2015 for example, the cost was $ 90 per tonne less.
8But this is more on account of larger storage tanks to allow for higher imports. The storage capacity size per unit of regasification capacity has been going up.
8There is the likelihood of the regasification cost coming down in 2018.
8On the other hand, the capx of FSRUs has gone down over the past three years, declining from a high of $158/tonne in 2014 to $ 78/tonne in 2017 beginning.
8A rise in FSRU conversions, which can be brought into operations at a lower cost than new-build vessels, will be a factor in reducing average floating terminal capex
8As of now, there are six FSRUs considered to be under construction as well as seven forthcoming FSRU projects that have selected an FSRU provider.
8Four of these projects have notably high capex, indicating that average FSRU costs could be rising moving forward. The website carries here full details of FRSUs in terms of those Laid-Up, Converted FSUs & Converted FLNGs
8As with onshore terminals, larger vessels – and thus greater storage and send-out capacity – have accompanied higher capex. Still, there is generally less variation in overall capx for floating terminals than for onshore facilities, which is partly a reflection of fewer differences in capacity and storage size for vessel-based terminal solutions.
8Data shows that the trend towards choosing FRSUs is likely to gain momentum in the rest of 2017 and in 2018
8A map of global LNG receiving terminals is carried here for reference purposes as also regasification terminals which are currently under construction.
8A full list of regasification terminals is documented in terms of country, start year, terminal name, nameplate capacity, owners and type
8A similar list of under construction, under planning and running liquefaction terminals is carried here.
Click on Reports for more Details
Nominal liquefaction capacity by status and region as on March, 2017
8Local liquefaction capacity build-out, 1990-2022
8Number of trains commissioned vs. average train capacity, 1964-2022
8Nominal liquefaction capacity by country, 2016-2022
8Nominal liquefaction capacity and utilization by country, 2016
8Liquefaction capacity by type of process, 2016-22
8Unde construction and total proposd FLNG capacity by country in MTPA and share of total , as of March, 2017
8Global liquefaction plants, as of 2017
8Post-FID liquefaction capacity build-out, 2016-22
8Nominal liquefaction capacity by region in 2010, 2016 and likely in 2022
8Liquefaction capacity by region in 2010, 2016 and 2022
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8Local liquefaction capacity build-out, 1990-2022
8Number of trains commissioned vs. average train capacity, 1964-2022
8Nominal liquefaction capacity by country, 2016-2022
8Nominal liquefaction capacity and utilization by country, 2016
8Liquefaction capacity by type of process, 2016-22
8Unde construction and total proposd FLNG capacity by country in MTPA and share of total , as of March, 2017
8Global liquefaction plants, as of 2017
8Post-FID liquefaction capacity build-out, 2016-22
8Nominal liquefaction capacity by region in 2010, 2016 and likely in 2022
8Liquefaction capacity by region in 2010, 2016 and 2022
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For those interested in the LNG industry, the website carries here the following data:
8LNG exports and market share by country
8Incremental LNG exports by country in 2016 over 2015
8Share of global LNG exports by country (1900-2016)
8Re-exports by country (2005-2016)
8LNG exports by region (1990-2016)
8LNG imports and market share by country
8Incremental 2016 LNG imports by country and incremental change relative to 2015
8Disaggregated details of global gas trade 2000-2016 (LNG, pipeline and consumed where produced)
8Inter-Basin trade flows, 1964-2016
8Inter-Basin Trade, 2000 vs. 2016
8LNG trade volumes between countries, 2016
8Short, medium and long term trade, 2010-2016
8Non-long term volumes, 1995-2016
8Non-long tem cargo market development, 1995-2016
8Monthly average regional gas prices, 2010-March, 2017
8European import price formation, 2005-2015
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8LNG exports and market share by country
8Incremental LNG exports by country in 2016 over 2015
8Share of global LNG exports by country (1900-2016)
8Re-exports by country (2005-2016)
8LNG exports by region (1990-2016)
8LNG imports and market share by country
8Incremental 2016 LNG imports by country and incremental change relative to 2015
8Disaggregated details of global gas trade 2000-2016 (LNG, pipeline and consumed where produced)
8Inter-Basin trade flows, 1964-2016
8Inter-Basin Trade, 2000 vs. 2016
8LNG trade volumes between countries, 2016
8Short, medium and long term trade, 2010-2016
8Non-long term volumes, 1995-2016
8Non-long tem cargo market development, 1995-2016
8Monthly average regional gas prices, 2010-March, 2017
8European import price formation, 2005-2015
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Global LNG fleet by year of delivery vs. average vessel size.
8Estimated future conventional vessel deliveries 2017-2022
8Existing fleet by containment type, 2017
8Existing and on order LNG fleet by propulsion type, 2017
8Active LNG global LNG fleet by capacity and age, 2017
8Propulsion type and associated characteristics
8Average LNG sport charter rates vs. vessel deliveries, 2012-2016
8Major LNG shipping routes, 2017
8Atlantic-Pacific Trade vs. total voyages per year, 2010-2016
8Estimated long term and spot charter rates vs new build orders, 2011-2017
8Firm conventional newbuild orders by quarter, 2011-2017
8LNG fleet owner-wise, 2017
8Average delivery and cost per cubic meter in ordered year by LNG carrier type 2006-2017
8Detailed LNG vessel order book position is carried here as well as a table of all active LNG vessels in terms of shipowner, builder, type, delivery year, capacity and propulsion type.
Click on Reports for more Details
8Estimated future conventional vessel deliveries 2017-2022
8Existing fleet by containment type, 2017
8Existing and on order LNG fleet by propulsion type, 2017
8Active LNG global LNG fleet by capacity and age, 2017
8Propulsion type and associated characteristics
8Average LNG sport charter rates vs. vessel deliveries, 2012-2016
8Major LNG shipping routes, 2017
8Atlantic-Pacific Trade vs. total voyages per year, 2010-2016
8Estimated long term and spot charter rates vs new build orders, 2011-2017
8Firm conventional newbuild orders by quarter, 2011-2017
8LNG fleet owner-wise, 2017
8Average delivery and cost per cubic meter in ordered year by LNG carrier type 2006-2017
8Detailed LNG vessel order book position is carried here as well as a table of all active LNG vessels in terms of shipowner, builder, type, delivery year, capacity and propulsion type.
Click on Reports for more Details
It is extremely difficult for policy makers to firm up a view on how gas will fare in an increasingly turbulent world.
8There are always two sides to the story.
8The IEA had predicted a golden age for gas in a report in 2011. In this report, Are We Entering a Golden Age of Gas?, supply and demand predictions were made in scenarios that showed a rapid expansion of natural gas usage, with global natural gas demand projected to increase dramatically by 2020.
8But the golden age did not really materialize.
8There were six main reasons why expectations were belied.
8We carry here a detailed analysis of what went wrong.
8Can the situation be retrieved?
Click on Reports for more Details
8There are always two sides to the story.
8The IEA had predicted a golden age for gas in a report in 2011. In this report, Are We Entering a Golden Age of Gas?, supply and demand predictions were made in scenarios that showed a rapid expansion of natural gas usage, with global natural gas demand projected to increase dramatically by 2020.
8But the golden age did not really materialize.
8There were six main reasons why expectations were belied.
8We carry here a detailed analysis of what went wrong.
8Can the situation be retrieved?
Click on Reports for more Details
Then there is the other side of the story to gas
8Projections are given right up to the year 2020 that shows natural gas as the fossil fuel with the biggest growth.
8This growth is made possible by increased production and use of LNG.
8n the medium term, LNG production is increasing despite an already well supplied market leading to excess capacity and more flexible contracting for LNG.
8If the world pursues a more aggressive emission reduction matrix, demand for gas will slow down but gas demand will still grow
Click on Reports for more Details
8Projections are given right up to the year 2020 that shows natural gas as the fossil fuel with the biggest growth.
8This growth is made possible by increased production and use of LNG.
8n the medium term, LNG production is increasing despite an already well supplied market leading to excess capacity and more flexible contracting for LNG.
8If the world pursues a more aggressive emission reduction matrix, demand for gas will slow down but gas demand will still grow
Click on Reports for more Details
For reference purposes, the website carries here India’s demand curve for gas based on the delivered cost of gas.
8For large segments of the Indian industry, the delivered cost of LNG remains unaffordable.
8The segments which can afford to absord LNG are much less than those who can.
8A new policy paper now calls for a more getting realistic and trying to push gas into segments these segments only for the moment.
8Similarly, a more intensive attempt has been called for to kickstart India’s moribund oil and gas sector to meet the Prime Minister’s 2022 aspirations
8The paper also sets out steps for a more robust energy architecture for India, and these include:
8Allowing ONGC and OMCs to create an international talent pool
8Allow only serious players to bid for CGD licenses
8Further simplify contract administration
8Strengthen organizational strcutures
8Establish an energy fund
8Give a level playing field to the fossil fuel industry in relation to renewal energy
Click on Reports for more Details
8For large segments of the Indian industry, the delivered cost of LNG remains unaffordable.
8The segments which can afford to absord LNG are much less than those who can.
8A new policy paper now calls for a more getting realistic and trying to push gas into segments these segments only for the moment.
8Similarly, a more intensive attempt has been called for to kickstart India’s moribund oil and gas sector to meet the Prime Minister’s 2022 aspirations
8The paper also sets out steps for a more robust energy architecture for India, and these include:
8Allowing ONGC and OMCs to create an international talent pool
8Allow only serious players to bid for CGD licenses
8Further simplify contract administration
8Strengthen organizational strcutures
8Establish an energy fund
8Give a level playing field to the fossil fuel industry in relation to renewal energy
Click on Reports for more Details
8BP’s Lamar McKay, Deputy Group Chief Execuive said last week, “Given the current political uncertainty - not only here in the US, but also in the UK, Europe and elsewhere around the world - none of us can predict what the world’s energy and carbon policies will look like even two years from now, let alone 10 or 20 years from now.”.Click on Report for more.
8Trump’s climate change deal rejection has ratted the oil market.Click on Report for more.
8India and Russia relationship: How to dramatically upgrade ties through joint breakthrough projects.Click on Report for more.
HPCL’s project activity
The project activities for HPCL’s Visakh Refinery Modernization Project (VRMP) for enhancing the refinery capacity to 15 MMTPA with an outlay of Rs. 20,928 crore and Mumbai Refinery expansion Project (MREP) for enhancing the refinery capacity to 9.5 MMTPA with an outlay of Rs. 4,199 crore are on track. Environmental clearance for both the projects has been received. Licensors are finalized for most of the units and process engineering is in progress for VRMP. For MREP, process Engineering is nearing completion.
Click on Reports for more Details
8Trump’s climate change deal rejection has ratted the oil market.Click on Report for more.
8India and Russia relationship: How to dramatically upgrade ties through joint breakthrough projects.Click on Report for more.
HPCL’s project activity
The project activities for HPCL’s Visakh Refinery Modernization Project (VRMP) for enhancing the refinery capacity to 15 MMTPA with an outlay of Rs. 20,928 crore and Mumbai Refinery expansion Project (MREP) for enhancing the refinery capacity to 9.5 MMTPA with an outlay of Rs. 4,199 crore are on track. Environmental clearance for both the projects has been received. Licensors are finalized for most of the units and process engineering is in progress for VRMP. For MREP, process Engineering is nearing completion.
Click on Reports for more Details
Many of our readers represent foreign companies in India and they are interested in business development opportunities not just in the oil & gas sector but across other important segments of the economy as well.
8For reference purposes, the website carries here specific assessments of orders likely in the defence sector in the foreseeable future.
8Under the Make in India programme, the total investment per year is expected to be around Rs one lakh crore, which is a little more than the orders placed in the oil & gas sector.
8While many consider the oil & gas sector as a sunset industry on account of climate change mitigation policies and explosive technological change, defence is not
8Overall, the total orders over the next 15 years in this segment of the defence industry is expected to be of the order of Rs 15 lakh crore.
8These are big numbers by any yardstick
8The website carries here a detailed assessment of how these orders are going to be divided up over the army, navy and air force wings.
8Yes, the defence sector is a closed club but when it comes to the Make in India programme, it will not be the end product manufacturers but the various component and assembly producers who will get involved.
8This is where potential business opportunities lie in this segment, in networking with thousands of such manufacturers around the world who may be interested in setting up base in India in the hope of soliciting orders under this programme.
8On our part, the website has built a unique low-cost project monitoring database that will provide advance leads on defence manufacturing activities in India.
Click on Reports for more on which are the specific armaments in which demand is likely to come up and also contact us to find out more on our defence sector project monitoring database Details
8For reference purposes, the website carries here specific assessments of orders likely in the defence sector in the foreseeable future.
8Under the Make in India programme, the total investment per year is expected to be around Rs one lakh crore, which is a little more than the orders placed in the oil & gas sector.
8While many consider the oil & gas sector as a sunset industry on account of climate change mitigation policies and explosive technological change, defence is not
8Overall, the total orders over the next 15 years in this segment of the defence industry is expected to be of the order of Rs 15 lakh crore.
8These are big numbers by any yardstick
8The website carries here a detailed assessment of how these orders are going to be divided up over the army, navy and air force wings.
8Yes, the defence sector is a closed club but when it comes to the Make in India programme, it will not be the end product manufacturers but the various component and assembly producers who will get involved.
8This is where potential business opportunities lie in this segment, in networking with thousands of such manufacturers around the world who may be interested in setting up base in India in the hope of soliciting orders under this programme.
8On our part, the website has built a unique low-cost project monitoring database that will provide advance leads on defence manufacturing activities in India.
Click on Reports for more on which are the specific armaments in which demand is likely to come up and also contact us to find out more on our defence sector project monitoring database Details
For reference purposes the website carries here the following tenders:
8Supply of Industrial Gases Details
8Supply of Corrosion Inhibitor for Cross Country LPG Pipeline Details
8Supply of MDPE Pipes for Hyderabad, Vijayawada and Kakinada for City Gas Distribution Projects Details
8Carrying out MDPE laying GI/CU Installation and associated works in Kanpur Details
8Complete removal of Hydrocracker Unit Reactor Insulation Details
8Supply of Fuel Additive for Naptha in Gas Turbine in refinery Details
8Supply of SS Pipe under Third Party Inspection for LCNG and Praxair Vessels Details
8Soil Investigation Survey in Dadri Panipat Pipeline at two locations in refinery Details
8Upkeep of plant units WWTP 1/2/3 & WAO in oil movement and storage Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8US authorises LNG export from offshore JV with India Details
8How IIT-Delhi is coming up with eco-friendly technologies to boost a sustainable environment Details
8Profit more than doubles for Malaysia's Petronas Details
8Assam refinery to process bio fuel from Arunachal bamboo Details
8U.S. drillers add oil rigs for record 20th week in a row -Baker Hughes Details
8Gulf to consolidate as oil remains soft Details
8Shell Lubricants India to focus on 3 segments Details
8Refinery job jab at Pradhan Details
8Coal's future in India Details
8Centre pushes states on city gas pipeline Details
8Essar offers to prepay LIC to save Rosneft deal Details
8SBI head says Essar-Rosneft deal to close in June Details
You can also click on Newsclips for more Details
8Supply of Industrial Gases Details
8Supply of Corrosion Inhibitor for Cross Country LPG Pipeline Details
8Supply of MDPE Pipes for Hyderabad, Vijayawada and Kakinada for City Gas Distribution Projects Details
8Carrying out MDPE laying GI/CU Installation and associated works in Kanpur Details
8Complete removal of Hydrocracker Unit Reactor Insulation Details
8Supply of Fuel Additive for Naptha in Gas Turbine in refinery Details
8Supply of SS Pipe under Third Party Inspection for LCNG and Praxair Vessels Details
8Soil Investigation Survey in Dadri Panipat Pipeline at two locations in refinery Details
8Upkeep of plant units WWTP 1/2/3 & WAO in oil movement and storage Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8US authorises LNG export from offshore JV with India Details
8How IIT-Delhi is coming up with eco-friendly technologies to boost a sustainable environment Details
8Profit more than doubles for Malaysia's Petronas Details
8Assam refinery to process bio fuel from Arunachal bamboo Details
8U.S. drillers add oil rigs for record 20th week in a row -Baker Hughes Details
8Gulf to consolidate as oil remains soft Details
8Shell Lubricants India to focus on 3 segments Details
8Refinery job jab at Pradhan Details
8Coal's future in India Details
8Centre pushes states on city gas pipeline Details
8Essar offers to prepay LIC to save Rosneft deal Details
8SBI head says Essar-Rosneft deal to close in June Details
You can also click on Newsclips for more Details
8A full update on Indian Oil Corporation, including its future plans which, strangely for many, are focused on raising existing capacities while remaining completely silent on how technological change, as many have predicted, can wreck its business model in less than 10 years.
Click on Reports for more Details
Click on Reports for more Details
Even as crude production remained staganant, ONGC’s gas output seems to be looking up.
8Crude oil production increased marginally YoY but remained flat in the last quarter of 2016-17 at 5.6 MMT for ONGC and 0.8 MMT for PSC JVs.
8However, natural gas production increased 13.4% YoY and came in at 5.7 BCM for ONGC and 0.3 BCM for PSC JVs.
8The company expects to maintain growth in production after the commencement of gas production from fields of C26, Daman, Vashishtha, Cauvery and Rajahmundry along with a hopeful ramp-up in oil production from redevelopment projects in the Mumbai offshore area (north & south), associated oil from Daman and Vasai (East) which will make up for the loss in production from its other ageing fields.
8OVL’s production also went up in FY17 with the production of 12.8 mmtoe of oil and gas mainly from the acquisition of 26% stake in Vankor oilfield in Russia. But the cost dynamics of this investment will depend on how oil prices will behave in the future.
8On the positive side, given that crude prices are unlikely to see a major increase, and the advent of alleviating government policies such as deregulation of diesel prices and a hike of 25 paise per month in the kerosene prices by the government and scheme of direct benefit transfer (DBT) for LPG, the net subsidy share of ONGC will remain at sustainable levels of around Rs 100 crore in the next two years.
8The bottomline, however, is that for ONGC, there is nothing really dramatic to look forward to. It is going to be a boring a predictable couple of years before new gas comes in from its KG Basin developments. Here again, if there are delays and cost overruns, the IRRs will get badly impacted.
Click on Reports for more. Details
8Crude oil production increased marginally YoY but remained flat in the last quarter of 2016-17 at 5.6 MMT for ONGC and 0.8 MMT for PSC JVs.
8However, natural gas production increased 13.4% YoY and came in at 5.7 BCM for ONGC and 0.3 BCM for PSC JVs.
8The company expects to maintain growth in production after the commencement of gas production from fields of C26, Daman, Vashishtha, Cauvery and Rajahmundry along with a hopeful ramp-up in oil production from redevelopment projects in the Mumbai offshore area (north & south), associated oil from Daman and Vasai (East) which will make up for the loss in production from its other ageing fields.
8OVL’s production also went up in FY17 with the production of 12.8 mmtoe of oil and gas mainly from the acquisition of 26% stake in Vankor oilfield in Russia. But the cost dynamics of this investment will depend on how oil prices will behave in the future.
8On the positive side, given that crude prices are unlikely to see a major increase, and the advent of alleviating government policies such as deregulation of diesel prices and a hike of 25 paise per month in the kerosene prices by the government and scheme of direct benefit transfer (DBT) for LPG, the net subsidy share of ONGC will remain at sustainable levels of around Rs 100 crore in the next two years.
8The bottomline, however, is that for ONGC, there is nothing really dramatic to look forward to. It is going to be a boring a predictable couple of years before new gas comes in from its KG Basin developments. Here again, if there are delays and cost overruns, the IRRs will get badly impacted.
Click on Reports for more. Details
Bharat Petroleum Corporation Ltd is also looking at a listless future for the time being.
8Marketing margins are under pressure as private players have begun making inroads even as the expected growth in demand for petroleum products is not materializing as of now.
8The company’s market share growth curve has under delivered from what was the general expectation.
8Thruput estimates for this year and ahead are now lower than estimated on account of a number of factors.
8The impact of the new GST regime remains another point of worry.
8The entire focus is now on the completing the Kochi refinery expansion on time.
8This is t is expected to lead to a $2/barrel improvement in Kochi refinery GRMs. The improvement in refining margins will be the key factor to watch along with the marketing sales volume figures.
Click on Reports for more Details
8Marketing margins are under pressure as private players have begun making inroads even as the expected growth in demand for petroleum products is not materializing as of now.
8The company’s market share growth curve has under delivered from what was the general expectation.
8Thruput estimates for this year and ahead are now lower than estimated on account of a number of factors.
8The impact of the new GST regime remains another point of worry.
8The entire focus is now on the completing the Kochi refinery expansion on time.
8This is t is expected to lead to a $2/barrel improvement in Kochi refinery GRMs. The improvement in refining margins will be the key factor to watch along with the marketing sales volume figures.
Click on Reports for more Details
8One company which does not really have a plan for the future is Oil India Ltd
8The company has posted a below expected performace in 2016-17
8And the future does not hold any triggers either.
8There are neither new discoveries to tap that can raise output or any exciting diversification plans.
8The company stays burdened by some of its ambitious acquisition, such as a stake in Mozambique, abroad. They are a long way from being monetized.
8Looks like OIL is left to fight declining output from it ageing oil fields in Upper Assam for the time being from where bulk of its output is derived from till the management can come up with somethings which are exciting and new.
8An oil price rise or a cut in the cess rate are the only two determinants of the company’s performance in the forseeable future.
8For the company brass to depend entirely on parameters over which it has no control over must be a humbling experience indeed.
Click on Reports for more
Details
8The company has posted a below expected performace in 2016-17
8And the future does not hold any triggers either.
8There are neither new discoveries to tap that can raise output or any exciting diversification plans.
8The company stays burdened by some of its ambitious acquisition, such as a stake in Mozambique, abroad. They are a long way from being monetized.
8Looks like OIL is left to fight declining output from it ageing oil fields in Upper Assam for the time being from where bulk of its output is derived from till the management can come up with somethings which are exciting and new.
8An oil price rise or a cut in the cess rate are the only two determinants of the company’s performance in the forseeable future.
8For the company brass to depend entirely on parameters over which it has no control over must be a humbling experience indeed.
Click on Reports for more
Details
