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Jun 2015
Natural gas consumption witnessed an overall decline of about 10.79% during May 2015, as compared to May 2014.
8In terms of volumes, total consumption during May, 2015 was 2,942 MMSCM as compared to 3,302 MMSCM in May, 2014.
8Cumulatively, gas consumption for the April-May period declined by 8.56% to 7,144 MMSCM as compared to 7,813 MMSCM during the same period last year.
8In terms of volumes, total consumption during May, 2015 was 2,942 MMSCM as compared to 3,302 MMSCM in May, 2014.
8Cumulatively, gas consumption for the April-May period declined by 8.56% to 7,144 MMSCM as compared to 7,813 MMSCM during the same period last year.
8Fertilizer sector`s consumption stood at 1,194 MMSCM during May 2015. Cumulatively too, consumption by the fertilizer sector declined by 1.9% to 2,362 MMSCM as compared to 2,407 MMSCM during the same period last year.
8Power sector witnessed an overall decline in volumes of 14.6% from 817 MMSCM in May 2014 to 698 MMSCM in May 2015. On a cumulative basis, consumption declined by 14.6% to 1,356 MMSCM during April-May, 2015, as compared to 1,588 MMSCM during April-May, 2014.
Details
The overall LPG consumption recorded a positive growth of 6.0% during May 2015 and a cumulative growth of 7.8% for the period April-May 2015.
8This is the 21st month in a row that LPG sales have recorded a growth.
8LPG for domestic consumption registered a positive growth of 3.5% during May 2015 and 5.6% growth for the period April-May, 2015, period. This happened mainly due to release of 27.4 lakh new connections and 17.2 lakh DBCs during April-May 2015.
8LPG for non-domestic consumption registered a growth of 37.5% in May 2015 and a cumulative growth of 39.3% during April to May, 2015. This high level of growth can be attributed to implementation of the direct transfer of subsidy (DBTL) scheme, resulting in curbing in diversion of subsidized domestic cylinders.
8This is the 21st month in a row that LPG sales have recorded a growth.
8LPG for domestic consumption registered a positive growth of 3.5% during May 2015 and 5.6% growth for the period April-May, 2015, period. This happened mainly due to release of 27.4 lakh new connections and 17.2 lakh DBCs during April-May 2015.
8LPG for non-domestic consumption registered a growth of 37.5% in May 2015 and a cumulative growth of 39.3% during April to May, 2015. This high level of growth can be attributed to implementation of the direct transfer of subsidy (DBTL) scheme, resulting in curbing in diversion of subsidized domestic cylinders.
8Bulk LPG recorded a growth of 4.7% during May 2015, and a growth of 16.1% during the April-May period, 2015.
8Auto LPG registered a positive growth of 9.4% in May 2015, mainly due to curb in diversion of subsidized domestic cylinders. Cumulatively, for the April-May period, the growth stood at 10.9%.
Details
With a total all India sales volume of 6446.3 TMT, HSD (diesel) sales during May 2015 registered a 0.5% decline as compared to sales in May 2014 which were pegged at 6476 TMT.
8Marginal drop of 0.5% during the month was mainly due to price increase speculations towards the end of April 2015 (which finally happened on 1st May) prompting the dealers to increase their inventories at retail outlets which resulted in advance shifting of HSD sales to April 2015 and therefore lower sales in May 2015.
8Power deficit which was (-)2.4% in May 2015 as compared to (-)3.8 in May 2014 also resulted in reduction in diesel consumption for back-up power generation.
8Less rainfall in northwest India, the southern peninsula and central India contributed to lesser use of HSD for pump sets, in addition to depressed agriculture in the country due to feeble entry of monsoon in the country. Details
8Marginal drop of 0.5% during the month was mainly due to price increase speculations towards the end of April 2015 (which finally happened on 1st May) prompting the dealers to increase their inventories at retail outlets which resulted in advance shifting of HSD sales to April 2015 and therefore lower sales in May 2015.
8Power deficit which was (-)2.4% in May 2015 as compared to (-)3.8 in May 2014 also resulted in reduction in diesel consumption for back-up power generation.
8Less rainfall in northwest India, the southern peninsula and central India contributed to lesser use of HSD for pump sets, in addition to depressed agriculture in the country due to feeble entry of monsoon in the country. Details
MS (petrol) sales were up by 8.9% during May 2015 as compared to May 2014.
8In May 2015, Oil Marketing Companies (OMCs) sold a total of 1833 TMT of MS, as compared to 1683.4 TMT sold during the same month last year.
8Cumulatively, 3185.6 TMT of petrol was sold during the April-May period, registered a growth of 13.5% as compared to 3,616.8 TMT last year.
8One of the reason for the increase in petrol sales can be attributed to the rise in overall passenger vehicles sales which registered a growth of 4.67% during May 2015. Of the total passenger vehicles, cars alone recorded a growth of 7.73%. Details
8In May 2015, Oil Marketing Companies (OMCs) sold a total of 1833 TMT of MS, as compared to 1683.4 TMT sold during the same month last year.
8Cumulatively, 3185.6 TMT of petrol was sold during the April-May period, registered a growth of 13.5% as compared to 3,616.8 TMT last year.
8One of the reason for the increase in petrol sales can be attributed to the rise in overall passenger vehicles sales which registered a growth of 4.67% during May 2015. Of the total passenger vehicles, cars alone recorded a growth of 7.73%. Details
During May 2015, sales of Light Diesel Oil (LDO) registered a decline of 16.9%, while bitumen sales went down by 3.0% as compared to corresponding month of the previous year.
8LDO
--Total sales of LDO during May 2015 stood at 24.5 TMT as against 29.5 TMT witnessed in the corresponding month of the previous year.
--As the consumption of LDO is directly related to its price, the demand fluctuates depending on the requirement at power plants and the availability of cheaper fuel which prompts customers to switch over from LDO to other fuels.
8Bitumen
--Total sales during May 2015 stood at 539 TMT as against 555.9 TMT witnessed in the corresponding period of the previous year.
--Cumulatively, there was a drop of 6.1% for the period April-May 2015, period, at 1055.3 TMT as compared to 1124 TMT in the same period last year.
--The reason for the decline in sales can be attributed to the government`s emphasis on building concrete roads. Details
8LDO
--Total sales of LDO during May 2015 stood at 24.5 TMT as against 29.5 TMT witnessed in the corresponding month of the previous year.
--As the consumption of LDO is directly related to its price, the demand fluctuates depending on the requirement at power plants and the availability of cheaper fuel which prompts customers to switch over from LDO to other fuels.
8Bitumen
--Total sales during May 2015 stood at 539 TMT as against 555.9 TMT witnessed in the corresponding period of the previous year.
--Cumulatively, there was a drop of 6.1% for the period April-May 2015, period, at 1055.3 TMT as compared to 1124 TMT in the same period last year.
--The reason for the decline in sales can be attributed to the government`s emphasis on building concrete roads. Details
8Mercator strikes oil in Cambay block CB-9: Mercator has announced its first oil discovery, through its subsidiary Mercator Petroleum Ltd (MPL), in the Cambay block CB-9.
--Crude oil flowed from the very first well -- dubbed Jyoti-1 -- in the block in the Cambay basin (Gujarat) onto the surface in presence of the DGH representative.
--The discovery has opened up a large corridor of possible hydrocarbon accumulation in the area.
8Shyamala Gopinath and Shyam Saran cease to be IOC Directors: Indian Oil Corporation (IOC) Ltd has informed the BSE that Shyamala Gopinath and Shyam Saran have ceased to be Independent Directors on the Board of the company with immediate effect upon completion of their tenure.
--Dr. SC Khuntia, the Govt. Director on the Board of the company, too had ceased to be the Director with effect from June 16, 2015, upon his taking over as the Secretary, Ministry of HRD, Govt. of India.
8Cairn-Vedanta Scheme of Arrangement: Cairn India Ltd and Vedanta Limited have on June 24, 2015, filed a Scheme of Arrangement, along with other requisite documents, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), for their approvals.
--The website carries here, for reference purpose, a copy of the Scheme of Arrangement for our readers. Details
--Crude oil flowed from the very first well -- dubbed Jyoti-1 -- in the block in the Cambay basin (Gujarat) onto the surface in presence of the DGH representative.
--The discovery has opened up a large corridor of possible hydrocarbon accumulation in the area.
8Shyamala Gopinath and Shyam Saran cease to be IOC Directors: Indian Oil Corporation (IOC) Ltd has informed the BSE that Shyamala Gopinath and Shyam Saran have ceased to be Independent Directors on the Board of the company with immediate effect upon completion of their tenure.
--Dr. SC Khuntia, the Govt. Director on the Board of the company, too had ceased to be the Director with effect from June 16, 2015, upon his taking over as the Secretary, Ministry of HRD, Govt. of India.
8Cairn-Vedanta Scheme of Arrangement: Cairn India Ltd and Vedanta Limited have on June 24, 2015, filed a Scheme of Arrangement, along with other requisite documents, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), for their approvals.
--The website carries here, for reference purpose, a copy of the Scheme of Arrangement for our readers. Details
ONGC Petro-additions Ltd`s (OPaL) Rs 27,011 crore petrochemical plant coming up at Dahej is finally getting closer to completion.
8As per the latest report, the project has achieved an overall progress of 94%, as against the scheduled 100%.
8The project was initially approved at a cost of Rs 15,870 crore in December 2008, but later, with the addition of some units, the project cost went up to Rs 19,535 crore in June 2010.
8In August 2012, with the addition of the captive power plant (CPP), the project cost again shot up to Rs 21,396 crore.
8The highest cost escalation is on account of interest during construction, along with margin money and other preliminary expenses (project debt) which is pegged at Rs 2,483 crore. Interest during construction (due to quasi debt) has been estimated at Rs 709 crore.
8Then again, startup and commissioning expenses also shot up by Rs 1,592 crore. Also, change orders worth Rs 482 crore had to issued. Lastly, foreign exchange losses to the tune of Rs 460 crore also resulted in higher project cost.
8The petrochemical plant will consist of a dual feed cracker unit and associated facilities with a capacity to produce 1,020 KTPA of HDPE/LLDPE, 340 KTPA of poly-propylene, 150 KTPA of benzene, 115 KTPA of butadiene and 135 KTPA of pyrolysis gasoline. The associated facilities will also produce carbon black feed stock (CBFS). Details
8As per the latest report, the project has achieved an overall progress of 94%, as against the scheduled 100%.
8The project was initially approved at a cost of Rs 15,870 crore in December 2008, but later, with the addition of some units, the project cost went up to Rs 19,535 crore in June 2010.
8In August 2012, with the addition of the captive power plant (CPP), the project cost again shot up to Rs 21,396 crore.
8The highest cost escalation is on account of interest during construction, along with margin money and other preliminary expenses (project debt) which is pegged at Rs 2,483 crore. Interest during construction (due to quasi debt) has been estimated at Rs 709 crore.
8Then again, startup and commissioning expenses also shot up by Rs 1,592 crore. Also, change orders worth Rs 482 crore had to issued. Lastly, foreign exchange losses to the tune of Rs 460 crore also resulted in higher project cost.
8The petrochemical plant will consist of a dual feed cracker unit and associated facilities with a capacity to produce 1,020 KTPA of HDPE/LLDPE, 340 KTPA of poly-propylene, 150 KTPA of benzene, 115 KTPA of butadiene and 135 KTPA of pyrolysis gasoline. The associated facilities will also produce carbon black feed stock (CBFS). Details
8Khuntia ceases to be IOC Director: Indian Oil Corporation (IOC) has informed the BSE that the Govt. Director on the Board of the company, Dr. SC Khuntia, has ceased to be the Director with effect from June 16, 2015, upon his taking over as the Secretary, Ministry of HRD, Govt. of India.
8ONGC Energy Centre gets patent for research on hydrogen production: The US Patent & Trademark Office has issued a patent to ONGC Energy Centre (OEC) and the Institute of Chemical Technology (ICT) for the innovative research work on “Hydrogen Production Method by Multi-step Copper-Chlorine Thermochemical Cycle.
8MRPL stake in OMPL goes up to 51%: Mangalore Refinery and Petrochemicals Ltd. (MRPL) has increased its stake in ONGC Mangalore Petrochemicals Ltd. (OMPL) from 46% to 51% to synergize its operations. The balance 49% equity is held by ONGC.
--This Aromatic Complex is situated in 442 Acres of land in the Mangalore Special Economic Zone (MSEZ), and is fully integrated with MRPL.
--OMPL is jointly promoted by ONGC and MRPL for manufacturing 0.9 million tonnes per annum of paraxylene and 0.3 million tonnes of benzene from the aromatic streams of MRPL.
--Production of benzene and para-xylene had already started from October 2014 onwards. Details
8ONGC Energy Centre gets patent for research on hydrogen production: The US Patent & Trademark Office has issued a patent to ONGC Energy Centre (OEC) and the Institute of Chemical Technology (ICT) for the innovative research work on “Hydrogen Production Method by Multi-step Copper-Chlorine Thermochemical Cycle.
8MRPL stake in OMPL goes up to 51%: Mangalore Refinery and Petrochemicals Ltd. (MRPL) has increased its stake in ONGC Mangalore Petrochemicals Ltd. (OMPL) from 46% to 51% to synergize its operations. The balance 49% equity is held by ONGC.
--This Aromatic Complex is situated in 442 Acres of land in the Mangalore Special Economic Zone (MSEZ), and is fully integrated with MRPL.
--OMPL is jointly promoted by ONGC and MRPL for manufacturing 0.9 million tonnes per annum of paraxylene and 0.3 million tonnes of benzene from the aromatic streams of MRPL.
--Production of benzene and para-xylene had already started from October 2014 onwards. Details
IOC has drawn up a plan for re-laying and re-routing of its petroleum product pipeline between the its Korukkupet depot and the Foreshore Terminal at the Chennai port, because of the ever-increasing habitations in the area.
8The proposal is for re-laying and re-routing of three new piggable lines: one line for black oil, second for white oil and the third for lubes.
8All the three lines pass through congested public areas and are mostly underground.
8Over the years, it has become extremely difficult to have access to the underground segments leading to problems in carrying out maintenance work.
8As these lines were not designed and constructed as piggable, IOC has proposed to replace the underground portion of the pipelines with piggable lines for safe and reliable operations.
8The proposal is for re-laying and re-routing of three new piggable lines: one line for black oil, second for white oil and the third for lubes.
8All the three lines pass through congested public areas and are mostly underground.
8Over the years, it has become extremely difficult to have access to the underground segments leading to problems in carrying out maintenance work.
8As these lines were not designed and constructed as piggable, IOC has proposed to replace the underground portion of the pipelines with piggable lines for safe and reliable operations.
8The Rs 50-crore project is to be completed within a period of 6-10 months after receipt of statutory clearances.
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HPCL`s Rs 1210.64 crore Rewari-Kanpur pipeline is progressing on schedule.
8The company has requested the Rajasthan Pollution Control Board (RPCB) to issue Consent to Operate (CTO) for commissioning of the facilities set up for the Rewari-Kanpur pipeline. RPCB has sought certain clarifications regarding the capacity of DG sets that are to be installed as part of the pipeline project before issuance of the CTO certificate.
8As per the permission granted by the PNGRB, the required power for sectioning valve stations (SV) needs to be drawn from the nearest power source of the state electricity board. However, DG sets will also have to be kept on stand-by at various pumping and storage installations such as, Kanpur, Rewari, Mathura and Bharatpur.
8The authorization for laying the pipeline was granted in December 2012 and HPCL was given a maximum period of 36 months for commissioning of the natural gas pipeline project.
8As per the latest progress report, the project is expected to be completed by November 2015.
8The pipeline, which will pass through Rajasthan, Haryana and Uttar Pradesh, involves laying of a total of 437 kms of cross-country multi-product pipeline.
8The pipeline will have a design capacity of 7.98 MMTPA from Rewari to Kanpur. Details
8The company has requested the Rajasthan Pollution Control Board (RPCB) to issue Consent to Operate (CTO) for commissioning of the facilities set up for the Rewari-Kanpur pipeline. RPCB has sought certain clarifications regarding the capacity of DG sets that are to be installed as part of the pipeline project before issuance of the CTO certificate.
8As per the permission granted by the PNGRB, the required power for sectioning valve stations (SV) needs to be drawn from the nearest power source of the state electricity board. However, DG sets will also have to be kept on stand-by at various pumping and storage installations such as, Kanpur, Rewari, Mathura and Bharatpur.
8The authorization for laying the pipeline was granted in December 2012 and HPCL was given a maximum period of 36 months for commissioning of the natural gas pipeline project.
8As per the latest progress report, the project is expected to be completed by November 2015.
8The pipeline, which will pass through Rajasthan, Haryana and Uttar Pradesh, involves laying of a total of 437 kms of cross-country multi-product pipeline.
8The pipeline will have a design capacity of 7.98 MMTPA from Rewari to Kanpur. Details
The website carries here, for reference purposes, details of contracts awarded by IOC during May 2015.
8The contracts were awarded for the company`s Panipat, Bongaigaon and Paradip refineries.
8Along with this, the details of contracts awarded for the naphtha cracker plant at Panipat is also carried.
Some of the contracts which need a special mention are:
8Instrumentation Jobs at Panipat Refinery: Forays Services & Construction Pvt Ltd
8Repair & Maintenance of Insulation works in PX-PTA, SRU (Old & New) & PTA-ETP at Panipat Refinery: Shree Thermocare
8Setting up of energy efficient transformer for Grid Power Infra Project: Makpower Transformers Pvt. Ltd.
8Hiring of expert services of original equipment manufacturer (OEM) Ekato, Germany for Reactor Seal Replacement /Refurbishment and Agitator Overhauling of Swing Unit: Ekato Ruehr-Und Mischtechnik.
Click on Reports for more Details
8The contracts were awarded for the company`s Panipat, Bongaigaon and Paradip refineries.
8Along with this, the details of contracts awarded for the naphtha cracker plant at Panipat is also carried.
Some of the contracts which need a special mention are:
8Instrumentation Jobs at Panipat Refinery: Forays Services & Construction Pvt Ltd
8Repair & Maintenance of Insulation works in PX-PTA, SRU (Old & New) & PTA-ETP at Panipat Refinery: Shree Thermocare
8Setting up of energy efficient transformer for Grid Power Infra Project: Makpower Transformers Pvt. Ltd.
8Hiring of expert services of original equipment manufacturer (OEM) Ekato, Germany for Reactor Seal Replacement /Refurbishment and Agitator Overhauling of Swing Unit: Ekato Ruehr-Und Mischtechnik.
Click on Reports for more Details
The total consumption of petroleum products has witnessed a 3.09% increase in May `2015, as compared to that in April `15.
8This positive growth can be attributed to the rise in consumption of Naphtha+NG(27.70%), Petroleum Coke(8.75), Lubricants & Greases(5.80%), Bitumen(4.34%), ATF(4.04%), MS(2.84%), LPG(1.74%), SKO(1.62).
8On the other hand FO and LSHS, LDO, HSD took a fall with negative growth of (-)4.46%, (-)4.29%, (-)0.67% respectively.
8Categorywise, sensitive products (LPG, SKO and HSD) recorded a cumulative negative growth of (-)0.10%, while major decontrolled products(Naptha and NGL, MS, Lubes/greases, LDO, FO/LSHS, Bitumen, ATF) and other minor decontrolled products (Pet Coke and others) recorded a cumulative growth of 7.74% and 3.09% for the period April-May `15, respectively.
8Total consumption during the month (May `15) was pegged at 15,070 TMT as compared to 14,617 TMT in April `15.
8This positive growth can be attributed to the rise in consumption of Naphtha+NG(27.70%), Petroleum Coke(8.75), Lubricants & Greases(5.80%), Bitumen(4.34%), ATF(4.04%), MS(2.84%), LPG(1.74%), SKO(1.62).
8On the other hand FO and LSHS, LDO, HSD took a fall with negative growth of (-)4.46%, (-)4.29%, (-)0.67% respectively.
8Categorywise, sensitive products (LPG, SKO and HSD) recorded a cumulative negative growth of (-)0.10%, while major decontrolled products(Naptha and NGL, MS, Lubes/greases, LDO, FO/LSHS, Bitumen, ATF) and other minor decontrolled products (Pet Coke and others) recorded a cumulative growth of 7.74% and 3.09% for the period April-May `15, respectively.
8Total consumption during the month (May `15) was pegged at 15,070 TMT as compared to 14,617 TMT in April `15.
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Details
Government data shows a very sharp growth in sales of naphta and natural gas liquids.
8Growth has gone up a massive 27.70% in May, from 956 TMT in April to 1221 TMT in May.
8No reason is given for the sharp upsurge but this could be a result of higher off take by naphtha based fertilizer units.
8The off take of naphtha will continue as these units were supposed to have shut down subsequent their conversion to using gas as feedstock but non availability of pipeline connectivity meant that they could not manage the switchover.
8The government has now allowed these units to run on naphtha or liquid fuels until gas becomes available.
Click here for details Details
8Growth has gone up a massive 27.70% in May, from 956 TMT in April to 1221 TMT in May.
8No reason is given for the sharp upsurge but this could be a result of higher off take by naphtha based fertilizer units.
8The off take of naphtha will continue as these units were supposed to have shut down subsequent their conversion to using gas as feedstock but non availability of pipeline connectivity meant that they could not manage the switchover.
8The government has now allowed these units to run on naphtha or liquid fuels until gas becomes available.
Click here for details Details
The produced water at the ONGC's wells, that are
to be drilled in Tamil Nadu, will be treated at the two existing effluent
treatment plants (ETPs).
8The total capacity of the ETPs add up to 1900m3/day.
8While the fresh water requirement for each well will be 25m3/day, total waste water generation will be around 20m3/day.
8The nearest ETP, with a capacity of 1400m3/day, is located at Narimanam (approximately 50 km away) while the other ETP, having a capacity of 500 m3/day is being commissioned at EPS KMP (approximately 25 km away).
8Blow-out preventers (BOPs) will also be installed to control fluid from the formation gushing to the surface. In the event, a well is unsuccessful, the well bore will have to be cement plugged.
8The gas produced during testing will be flared Details
8The total capacity of the ETPs add up to 1900m3/day.
8While the fresh water requirement for each well will be 25m3/day, total waste water generation will be around 20m3/day.
8The nearest ETP, with a capacity of 1400m3/day, is located at Narimanam (approximately 50 km away) while the other ETP, having a capacity of 500 m3/day is being commissioned at EPS KMP (approximately 25 km away).
8Blow-out preventers (BOPs) will also be installed to control fluid from the formation gushing to the surface. In the event, a well is unsuccessful, the well bore will have to be cement plugged.
8The gas produced during testing will be flared Details
ONGC plans to drill a total of 76 wells in seven
of its Cauvery basin onland blocks.
8The seven blocks are Greater Narimanam ML Block, Addiyakkamangalam ML Block, Nannilam-I Nannilam-ll ML Blocks, Kali & Kali # 6 ML Blocks, Kuthanallur ML, Greater Kovikalagal ML Block and Pundi ML Block. All the seven blocks fall in Tamil Nadu.
8Notably, environment clearance (EC) for development drilling of 30 wells, out of the total 76 wells planned, has already been granted by the MOEF. The cost of drilling 30 wells is estimated at Rs 120 crore.
8Later, as per fresh G&G studies carried out in the area, another 46 wells were required to be drilled in Nagapattinam, Thanjavur, Thiruvarur districts of Tamil Nadu as these were found to be very prospective.
8As ONGC already has EC for drilling of 30 wells, it has requested the MOEF to amend it so that it can go ahead with the drilling of the additional 46 wells without seeking any additional clearance. Details
8The seven blocks are Greater Narimanam ML Block, Addiyakkamangalam ML Block, Nannilam-I Nannilam-ll ML Blocks, Kali & Kali # 6 ML Blocks, Kuthanallur ML, Greater Kovikalagal ML Block and Pundi ML Block. All the seven blocks fall in Tamil Nadu.
8Notably, environment clearance (EC) for development drilling of 30 wells, out of the total 76 wells planned, has already been granted by the MOEF. The cost of drilling 30 wells is estimated at Rs 120 crore.
8Later, as per fresh G&G studies carried out in the area, another 46 wells were required to be drilled in Nagapattinam, Thanjavur, Thiruvarur districts of Tamil Nadu as these were found to be very prospective.
8As ONGC already has EC for drilling of 30 wells, it has requested the MOEF to amend it so that it can go ahead with the drilling of the additional 46 wells without seeking any additional clearance. Details
HSD sales registered a negative growth in May over April, 2015 -- with sales at 6446 TMT in May from 6490 TMT in the previous month -- indicating stretched conditions in the economy.
8Faltering agricultural growth has limited offtake of HSD.
8Then again, MS sales have registered a modest increase of 2.84% at 1834 TMT in May in relation to 1783 TMT in April.
8Clearly, the market for HSD and MS are maturing, and earlier scorching rates of growth are unlikely to return soon unless agricultural sowing picks up speed (leading to higher usage of irrigation pumps) and the economy as a whole shows robust growth.
8Faltering agricultural growth has limited offtake of HSD.
8Then again, MS sales have registered a modest increase of 2.84% at 1834 TMT in May in relation to 1783 TMT in April.
8Clearly, the market for HSD and MS are maturing, and earlier scorching rates of growth are unlikely to return soon unless agricultural sowing picks up speed (leading to higher usage of irrigation pumps) and the economy as a whole shows robust growth.
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Details
Some more guidelines that have been issued by the DGH are:
8MoD clearances for vessel deployment in exploration areas: Work programme for at least six months to be submitted
8The MOD will have to be informed regarding award of contracts to parties, in advance of operations by the licensee and submit the work programme for at least six months on vessel deployment.
8All vessels deployed in the area will have to undergo naval security inspection under the aegis of the FOC-in-C of the concerned Naval Command, Flag Officer, Offshore Defence Advisory Group (FODAG) prior to their deployment. As per norm, one month’s notice will have to be given to facilitate inspection.
8The contracted companies will have to ensure that all foreign personnel on board vessel have been duly cleared by Ministry of Home Affairs.
8The licensee will have to strictly adhere to the relevant provisions and notifications under Environment Protection Act, 1986 and Forest Conservation Act, 1980, as amended from time to time.
Click here for detailed guidelines Details
8MoD clearances for vessel deployment in exploration areas: Work programme for at least six months to be submitted
8The MOD will have to be informed regarding award of contracts to parties, in advance of operations by the licensee and submit the work programme for at least six months on vessel deployment.
8All vessels deployed in the area will have to undergo naval security inspection under the aegis of the FOC-in-C of the concerned Naval Command, Flag Officer, Offshore Defence Advisory Group (FODAG) prior to their deployment. As per norm, one month’s notice will have to be given to facilitate inspection.
8The contracted companies will have to ensure that all foreign personnel on board vessel have been duly cleared by Ministry of Home Affairs.
8The licensee will have to strictly adhere to the relevant provisions and notifications under Environment Protection Act, 1986 and Forest Conservation Act, 1980, as amended from time to time.
Click here for detailed guidelines Details
According to the new guidelines issued by the DGH, the raw data acquired cannot be given to foreign contractors without the approval of the government.
8In other words, preference will have to be given to Indian companies for processing of the raw data.
8Then again, a copy of all data collected during surveys and exploration will have to be forwarded to the Naval Head Quarters (MoD) and the Chief Hydrographer, Dehradun, free of cost, by the licensee within 2-3 weeks of completion of the survey.
8Along with this, a copy of compliance will also have to be submitted to the DGH.
Click here for detailed guidelines Details
8In other words, preference will have to be given to Indian companies for processing of the raw data.
8Then again, a copy of all data collected during surveys and exploration will have to be forwarded to the Naval Head Quarters (MoD) and the Chief Hydrographer, Dehradun, free of cost, by the licensee within 2-3 weeks of completion of the survey.
8Along with this, a copy of compliance will also have to be submitted to the DGH.
Click here for detailed guidelines Details
ONGC has floated a tender for construction of surface facilities for its Gamij re-development project in the Ahmedabad asset.
8The cost of the project is estimated at Rs 1,881 crore.
8The brief scope of work for the project includes carrying out of surveys (pre-engineering, pre-construction and post-completion), design, detailed engineering, procurement, transportation, fabrication, installation/erection, hook-up, testing, pre-commissioning and commissioning of equipment/ facilities.
8ONGC plans to executed the project on a lump sum turnkey basis. Equipment like heater-treater and separators, for the existing installations, will be sourced by ONGC and supplied as free issue materials to the LSTK contractor for installation and commissioning.
8The stock tank original oil-in-place (STOIIP) in the field is estimated at 51.39 MMt. The project is expected to give 2.29 MMT of incremental oil.
8With the execution of the project, the crude production from the Gamij field is expected to go up from 350 tpd to 1,474 tpd.
8The last date of submission of bids is August 19, 2015, (2:00pm). Details
8The cost of the project is estimated at Rs 1,881 crore.
8The brief scope of work for the project includes carrying out of surveys (pre-engineering, pre-construction and post-completion), design, detailed engineering, procurement, transportation, fabrication, installation/erection, hook-up, testing, pre-commissioning and commissioning of equipment/ facilities.
8ONGC plans to executed the project on a lump sum turnkey basis. Equipment like heater-treater and separators, for the existing installations, will be sourced by ONGC and supplied as free issue materials to the LSTK contractor for installation and commissioning.
8The stock tank original oil-in-place (STOIIP) in the field is estimated at 51.39 MMt. The project is expected to give 2.29 MMT of incremental oil.
8With the execution of the project, the crude production from the Gamij field is expected to go up from 350 tpd to 1,474 tpd.
8The last date of submission of bids is August 19, 2015, (2:00pm). Details
As per the new guidelines issued by the DGH, an E&P operator will have to give a clear advance notice of at least two or more months on commencement of exploration work in the area so that the exploration work does not clash with any defence exercise in the area.
8The application will have to be submitted to the ministry of defence (MoD) through the DGH. The application, to the DGH, will have to be submitted atleast two and half months before for processing by the MoD.
8Then again, only Indian companies should preferably be deployed for surveys. Should foreign companies be deployed, prior approval of the MOD will have to be obtained. The data will have to be collected under the supervision of the MOD.
8Vessels deployed shall engage in only bonafide activities. No physical oceanographic observations or seabed studies will be allowed to be undertaken by parties without the specific clearance of the MOD.
Click here for detailed guidelines Details
8The application will have to be submitted to the ministry of defence (MoD) through the DGH. The application, to the DGH, will have to be submitted atleast two and half months before for processing by the MoD.
8Then again, only Indian companies should preferably be deployed for surveys. Should foreign companies be deployed, prior approval of the MOD will have to be obtained. The data will have to be collected under the supervision of the MOD.
8Vessels deployed shall engage in only bonafide activities. No physical oceanographic observations or seabed studies will be allowed to be undertaken by parties without the specific clearance of the MOD.
Click here for detailed guidelines Details
The website carries here a review of refinery production (in terms of crude throughput) for the month of May 2015 as well as for the April-May 2014-15 period. Data on the corresponding periods in the previous fiscal (2013-14) are also carried here to aid comparison.
8Indian refineries registered a crude throughput of 19.70 MMT during the month, which was 1.6% above the target of 19.38 MMT. Cumulatively, in April-May, these refineries processed 36.79 MMT of crude, which was 1.17% higher than the target of 36.36 MMT.
8Despite the overall increase in crude throughput, it was below target at IOC`s Barauni, Haldia, Mathura, Digboi refineries, NRL`s Numaligarh refinery, MRPL`s Mangalore refinery, ONGC`s Tatipaka refinery and RIL`s Jamnagar and SEZ refineries.
8Crude throughput at IOC`s Guwahati, Gujarat, Panipat, Bongaigaon refineries, BPCL`s Mumbai, Visakh refineries, CPCL`s Manali, Narimanam (CBR) refineries, BORL`s Bina refinery, HMEL`s GGSR, Bhatinda refinery and EOL`s (Essar Oil Limited) Vadinar refinery exceeded their planned targets.
8Indian refineries registered a crude throughput of 19.70 MMT during the month, which was 1.6% above the target of 19.38 MMT. Cumulatively, in April-May, these refineries processed 36.79 MMT of crude, which was 1.17% higher than the target of 36.36 MMT.
8Despite the overall increase in crude throughput, it was below target at IOC`s Barauni, Haldia, Mathura, Digboi refineries, NRL`s Numaligarh refinery, MRPL`s Mangalore refinery, ONGC`s Tatipaka refinery and RIL`s Jamnagar and SEZ refineries.
8Crude throughput at IOC`s Guwahati, Gujarat, Panipat, Bongaigaon refineries, BPCL`s Mumbai, Visakh refineries, CPCL`s Manali, Narimanam (CBR) refineries, BORL`s Bina refinery, HMEL`s GGSR, Bhatinda refinery and EOL`s (Essar Oil Limited) Vadinar refinery exceeded their planned targets.
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Details
Crude oil production across the industry during May 2015 stood at 3.184 MMT, representing a 2.5% gain over the planned monthly target of 3.105 MMT.
8The production during the month was also a bit more than the figure of 3.160 MMT in May last year. The cumulative production during April-May 2015 was 6.204 MMT, which rose up from its target by 2.48%. The targeted production for the cumulative period was 6.053 MMT. Comparative production during the period reveals a shortfall of around 0.95% over the 6.264 MMT produced in the corresponding period of the last fiscal.
8ONGC missed its total crude oil production by a whisker with its monthly target aggregating to 1.905 MMT, as against the planned 1.907 MMT, representing a 0.1% shortfall. This is attributed to the increase in water cut, decline in air injection and power shut down in the Mehsana area. The cumulative production for the April-May period, however, rose up from its target with the company producing 3.715 MMT of crude as against the targeted 3.701 MMT.
8Oil India Limited (OIL) produced 0.285 MMT during the month, which is behind its planned production (0.296 MMT) by 3.82%. During the two-month period ending May, the company produced 0.565 MMT, which was behind its target of 0.578 MMT. Production was affected in Assam and Arunachal Pradesh due to miscreant activities, bandhs and blockades.
8Crude production of private/JV companies rose up by 10.3% during the month, having produced 0.994 MMT as against the targeted 0.901 MMT. Production over the April-May period also was 6.5% higher standing at 1.923 MMT as against the target of 1.773 MMT. However Arunachal Pradesh witnessed shortfall due to repeated sand ingress problems. Gujarat`s onshore dip is mainly due to an increase in water cut in the existing well in the CB-ON/3 block and lack of adequate EPS facility to handle increasing water in existing wells in the CB-ONN-2000/1 field. Production operation in the block CB-ONN-2002/3 had to be discontinued as wells were not found to be commercially viable.
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8The production during the month was also a bit more than the figure of 3.160 MMT in May last year. The cumulative production during April-May 2015 was 6.204 MMT, which rose up from its target by 2.48%. The targeted production for the cumulative period was 6.053 MMT. Comparative production during the period reveals a shortfall of around 0.95% over the 6.264 MMT produced in the corresponding period of the last fiscal.
8ONGC missed its total crude oil production by a whisker with its monthly target aggregating to 1.905 MMT, as against the planned 1.907 MMT, representing a 0.1% shortfall. This is attributed to the increase in water cut, decline in air injection and power shut down in the Mehsana area. The cumulative production for the April-May period, however, rose up from its target with the company producing 3.715 MMT of crude as against the targeted 3.701 MMT.
8Oil India Limited (OIL) produced 0.285 MMT during the month, which is behind its planned production (0.296 MMT) by 3.82%. During the two-month period ending May, the company produced 0.565 MMT, which was behind its target of 0.578 MMT. Production was affected in Assam and Arunachal Pradesh due to miscreant activities, bandhs and blockades.
8Crude production of private/JV companies rose up by 10.3% during the month, having produced 0.994 MMT as against the targeted 0.901 MMT. Production over the April-May period also was 6.5% higher standing at 1.923 MMT as against the target of 1.773 MMT. However Arunachal Pradesh witnessed shortfall due to repeated sand ingress problems. Gujarat`s onshore dip is mainly due to an increase in water cut in the existing well in the CB-ON/3 block and lack of adequate EPS facility to handle increasing water in existing wells in the CB-ONN-2000/1 field. Production operation in the block CB-ONN-2002/3 had to be discontinued as wells were not found to be commercially viable.
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Gas output was also below target by 0.1% during May 2015. While Private/JVC exceeded their natural gas production target by 1.8%, ONGC & OIL fell short of their respective targets by 0.3% and 3.8% during the month.
8For the industry as a whole, 2852 MCM gas was produced during May, as against the targeted 2853 MCM. The cumulative production over the April-May 2014-15 period came to 5521 MCM, which was 1.25% lower than the planned target of 5591 MCM.
8During the month, ONGC`s gas production stood at 1898 MCM, which fell short of monthly target of 1903 MCM. The company registered a surplus in Andhra Pradesh and Gujarat onshore fields only, all other incurred shortfall. Eastern Offshore`s dip can be primarily attributed to restricted gas withdrawal by GAIL in view of safety issues in its gas pipeline.
8OIL`s gas production was fell short of its target at 221 MCM during the month as against the planned 230 MCM. The cumulative production for the April-May period, however, was a lower at 416 MCM as compared to the planned 460 MCM.
8Production at Assam and Arunachal Pradesh fields fell due to a fire incident at NRL`s Hydro Cracker unit. Though production was resumed during the same month, there was lesser withdrawal of 6.88 MMSCM by NRL during the month. Also, less drawal by BCPL and BVFCL resulted in less than their planned drawl.
8Private/JV firms registered a significant overproduction, with total production from these companies coming to 731 MCM as against 719 MCM target set for May 2015. This was despite the fact that new wells in West Bengal faced the problem of dewatering and underperformance of RIL`s MA wells in the eastern offshore.
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8For the industry as a whole, 2852 MCM gas was produced during May, as against the targeted 2853 MCM. The cumulative production over the April-May 2014-15 period came to 5521 MCM, which was 1.25% lower than the planned target of 5591 MCM.
8During the month, ONGC`s gas production stood at 1898 MCM, which fell short of monthly target of 1903 MCM. The company registered a surplus in Andhra Pradesh and Gujarat onshore fields only, all other incurred shortfall. Eastern Offshore`s dip can be primarily attributed to restricted gas withdrawal by GAIL in view of safety issues in its gas pipeline.
8OIL`s gas production was fell short of its target at 221 MCM during the month as against the planned 230 MCM. The cumulative production for the April-May period, however, was a lower at 416 MCM as compared to the planned 460 MCM.
8Production at Assam and Arunachal Pradesh fields fell due to a fire incident at NRL`s Hydro Cracker unit. Though production was resumed during the same month, there was lesser withdrawal of 6.88 MMSCM by NRL during the month. Also, less drawal by BCPL and BVFCL resulted in less than their planned drawl.
8Private/JV firms registered a significant overproduction, with total production from these companies coming to 731 MCM as against 719 MCM target set for May 2015. This was despite the fact that new wells in West Bengal faced the problem of dewatering and underperformance of RIL`s MA wells in the eastern offshore.
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During the month of May 2015 refinery capacity of Indian refineries utilization rose up from the target by 8.18%, which is more than what was achieved in the corresponding month of 2013-14 fiscal (May 2014) when planned utilisation exceeded the planned target by 0.02%.
8Total prorated installed capacity for May 2015, stood at 18.216 MMT, while the actual crude throughput came to 19.706 MMT for the month.
8Cumulatively too, capacity utilization at Indian refineries during the April-May 2015, period was lower than planned utilization by 0.4% with actual crude throughput standing at 36.794 MMT as against the prorated installed capacity of 35.844 MMT.
8The public sector maintained a prorated installed capacity of 10.170 MMT during May, while the actual crude throughput came to 10.602 MMT, indicating a 104.25% capacity utilization.
8The private sector, with a prorated installed capacity of 6.776 MMT, generated a crude throughput of 7.607 MMT, thereby utilizing 112.28% capacity during the month.
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8Total prorated installed capacity for May 2015, stood at 18.216 MMT, while the actual crude throughput came to 19.706 MMT for the month.
8Cumulatively too, capacity utilization at Indian refineries during the April-May 2015, period was lower than planned utilization by 0.4% with actual crude throughput standing at 36.794 MMT as against the prorated installed capacity of 35.844 MMT.
8The public sector maintained a prorated installed capacity of 10.170 MMT during May, while the actual crude throughput came to 10.602 MMT, indicating a 104.25% capacity utilization.
8The private sector, with a prorated installed capacity of 6.776 MMT, generated a crude throughput of 7.607 MMT, thereby utilizing 112.28% capacity during the month.
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The production of petroleum products across the industry during May 2015 stood at 19.512 MMT, representing a 1.2% gain over the planned monthly target of 19.275 MMT.
8Of the total production of 19.512 MMT, 19.197 MMT came from the refineries, while the remaining 0.315 MMT came from fractionators.
8While the products produced from refineries were up by 1.3% of its target, the production from fractionators' was down by 2.3%.
8The production of petroleum products by public sector refineries stood at 10.02 MMT, which was 2.1% higher than the planned target of 9.82 MMT. The JV refineries also surpassed their target by 17.5%, thereby producing 1.30 MMT, as against the planned production of 1.111 MMT.
8The production by private sector refineries were however lower than their target by 1.9%. The private refineries produced 7.863 MMT during the month as against the planned target of 8.017 MMT.
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8Of the total production of 19.512 MMT, 19.197 MMT came from the refineries, while the remaining 0.315 MMT came from fractionators.
8While the products produced from refineries were up by 1.3% of its target, the production from fractionators' was down by 2.3%.
8The production of petroleum products by public sector refineries stood at 10.02 MMT, which was 2.1% higher than the planned target of 9.82 MMT. The JV refineries also surpassed their target by 17.5%, thereby producing 1.30 MMT, as against the planned production of 1.111 MMT.
8The production by private sector refineries were however lower than their target by 1.9%. The private refineries produced 7.863 MMT during the month as against the planned target of 8.017 MMT.
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ONGC has floated a tender for acquisition of 2D seismic data in un-appraised onland areas of Indian sedimentary basins (for Sectors 07 to 11).
8It has been the government's policy to explore the un-appraised sedimentary areas in the country as soon as possible for availability of hydrocarbons.
8India has 26 sedimentary basins covering an area of 3.14 million square kilometers. The sedimentary basins of India, both onland and offshore, upto the 400m isobath, have an areal extent of about 1.84 million sq. km. In the deepwater areas, beyond the 400m isobath, the sedimentary area has been estimated to be about 1.30 million sq. km.
8As per the India Hydrocarbon Vision 2025, 100% of Indian sedimentary areas has to be apprised. However, as of now, only about 48.04% area has been apprised and more than 50% of the area still remains unexplored.
8It is in this context that ONGC has floated a tender for acquisition of 2D seismic data in areas which have not yet been explored.
8The tender documents can be procured before August 19, 2015.
8The last date of submission of bids is August 19, 2015 (4.00 pm). The bids will be opened on the same day (August 19, 2015) at 5.00 pm.
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8It has been the government's policy to explore the un-appraised sedimentary areas in the country as soon as possible for availability of hydrocarbons.
8India has 26 sedimentary basins covering an area of 3.14 million square kilometers. The sedimentary basins of India, both onland and offshore, upto the 400m isobath, have an areal extent of about 1.84 million sq. km. In the deepwater areas, beyond the 400m isobath, the sedimentary area has been estimated to be about 1.30 million sq. km.
8As per the India Hydrocarbon Vision 2025, 100% of Indian sedimentary areas has to be apprised. However, as of now, only about 48.04% area has been apprised and more than 50% of the area still remains unexplored.
8It is in this context that ONGC has floated a tender for acquisition of 2D seismic data in areas which have not yet been explored.
8The tender documents can be procured before August 19, 2015.
8The last date of submission of bids is August 19, 2015 (4.00 pm). The bids will be opened on the same day (August 19, 2015) at 5.00 pm.
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8BCPL invites bids for supply of gaskets for GSU/C2+ recovery units: Brahmaputra Cracker & Polymer Ltd (BCPL), has invited bids under a two-bid system for supply of gaskets for its GSU /
C2+ recovery unit at Dibrugarh, Assam
--The last date of submission of bids is July 10, 2015, up to 14.30 hrs (IST).
--A pre-bid meeting is scheduled for June 29, 2015, at 15.00 hrs.
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8ONGC floats tender for hiring of (O&M) services for WSS units: ONGC has floated a tender for hiring of operation & maintenance (O&M) services for its well stimulation (WSS) units for a period of three years.
--The services will be used in the company's Agartala area in Tripura.
--The last date of submission of bids in August 3, 2015, (2:00 pm).
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C2+ recovery unit at Dibrugarh, Assam
--The last date of submission of bids is July 10, 2015, up to 14.30 hrs (IST).
--A pre-bid meeting is scheduled for June 29, 2015, at 15.00 hrs.
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8ONGC floats tender for hiring of (O&M) services for WSS units: ONGC has floated a tender for hiring of operation & maintenance (O&M) services for its well stimulation (WSS) units for a period of three years.
--The services will be used in the company's Agartala area in Tripura.
--The last date of submission of bids in August 3, 2015, (2:00 pm).
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Arcis Seismic Solution (Arcis), which provides seismic solutions to the energy industry, has assured ONGC to provide all help to the Indian E&P major in developing core competencies in some specialized fields relating to processing of seismic data.
8ONGC Director (Exploration), A.K Dwivedi, had a discussion on the matter with Arcis officials during the recent Global Petroleum Show (GPS) 2015, held at Calgary, Alberta, Canada.
8Arcis, which is a wholly-owned subsidiary of TGS-NOPEC Geophysical Company, is based at Calgary.
8The website carries here, for reference purposes, a research paper titled "Unconventional reservoir characterization using conventional tools" prepared by Arcis. Details
8ONGC Director (Exploration), A.K Dwivedi, had a discussion on the matter with Arcis officials during the recent Global Petroleum Show (GPS) 2015, held at Calgary, Alberta, Canada.
8Arcis, which is a wholly-owned subsidiary of TGS-NOPEC Geophysical Company, is based at Calgary.
8The website carries here, for reference purposes, a research paper titled "Unconventional reservoir characterization using conventional tools" prepared by Arcis. Details
The Department of Fertilizers (DOF) is banking on a significant increase in gas production by the 2018-19 to be able to handle the incremental requirement of the feedstock if new domestic urea capacity is to come up.
8The fertilizer minister Ananth Kumar is perhaps banking on projections from the petroleum ministry that output will reach around 160 mmscmd in 2018-19 from around 100 mmscmd in 2014-15. That`s a big 60% jump from current levels.
8The data shows that gas output will go up to 109 mmscmd in 2015-16, to 124 mmscmd in 2016-17, and to 140 mmscmd in 2017-18 and onwards to 163 mmscmd the year after.
8Incremental output will jump by 15 mmscmd in 2016-17 to 2017-18 and by 23 mmscmd in 2018-19.
8The increment is sizeable. At 23 mmscmd of additionhal gas by 2018-19, at least 9 or may be 10 new state of art ammonia-urea plant can come on stream by 2018-19.
8The timing is right too, if the plants are hurried up, and because the technology is tested and optimized, they can indeed be commissioned by 2018-19.
8Fertilizer minister Ananth Kumar is touring the country, announcing new plants from Namrup to Nangal. His calculations perhaps take into account incremental gas output from within India to power most of this expansion, as depending entirely on LNG will be a very high risk game even for a risk taker like him.
8And if these units do come up as envisaged by the minister, it will be a huge job accomplished, and his name will be cast in stone, unlike his predecessors, as someone who made the all important difference to the fertilizer industry. Details
8The fertilizer minister Ananth Kumar is perhaps banking on projections from the petroleum ministry that output will reach around 160 mmscmd in 2018-19 from around 100 mmscmd in 2014-15. That`s a big 60% jump from current levels.
8The data shows that gas output will go up to 109 mmscmd in 2015-16, to 124 mmscmd in 2016-17, and to 140 mmscmd in 2017-18 and onwards to 163 mmscmd the year after.
8Incremental output will jump by 15 mmscmd in 2016-17 to 2017-18 and by 23 mmscmd in 2018-19.
8The increment is sizeable. At 23 mmscmd of additionhal gas by 2018-19, at least 9 or may be 10 new state of art ammonia-urea plant can come on stream by 2018-19.
8The timing is right too, if the plants are hurried up, and because the technology is tested and optimized, they can indeed be commissioned by 2018-19.
8Fertilizer minister Ananth Kumar is touring the country, announcing new plants from Namrup to Nangal. His calculations perhaps take into account incremental gas output from within India to power most of this expansion, as depending entirely on LNG will be a very high risk game even for a risk taker like him.
8And if these units do come up as envisaged by the minister, it will be a huge job accomplished, and his name will be cast in stone, unlike his predecessors, as someone who made the all important difference to the fertilizer industry. Details
There are problems however in taking these gas supply projections at face value.
8For one, these projections do not always come true and invariably they are always lower than actual output. The oil exploration and production business is fraught with engineering and regulatory risks and it is near-impossible to predict the future with any amount of certainity.
8The other point to note is how much of this incremental gas output, assuming for the time being that all of it fructifies, will be earmarked for the fertilizer sector?
8The government may have shifting priorities for allocation of this gas -- for the CGD industry is the current favorite -- and bulk of the gas may not get allocated to the fertilizer sector.
8Currently the domestic gas shortfall is large and the gap is growing. Of a total requirement of 43 mmscmd, domestic supply is 30 mmscmd.
8Under an optimistic calculation, which Ananth Kumar will be very happy with, if the incremental gas, of around 10 mmscmd in 2015-16, and 15 mmscmd in the subsequent two years are allocated to the fertilizer industry, it will obviate the need for LNG supply!
8If that is a very unlikely scenario, Kumar can push for the current allocation of LNG to remain at the same level, so that the percentage of LNG content comes down in the overall gas supply to the fertilizer industry from the current year onwards.
8In any of these combinations, fresh urea capacities can become viable, as it will counter the fear that all of new capacity will have to be based on imported LNG.
8If the petroleum ministry were to be able to give some kind of an assurance that gas will indeed be produced as promised and if the government can come up with a five year or a 10 year game plan, promising that this or a given quantum of the incremental gas will be supplied to the fertilizer industry at a pre-determined gas pricing formula, it will assure investors and bankers alike of stability of feedstock supply and price in the medium term, thereby giving them enough confidence to put in the investments. Details
8For one, these projections do not always come true and invariably they are always lower than actual output. The oil exploration and production business is fraught with engineering and regulatory risks and it is near-impossible to predict the future with any amount of certainity.
8The other point to note is how much of this incremental gas output, assuming for the time being that all of it fructifies, will be earmarked for the fertilizer sector?
8The government may have shifting priorities for allocation of this gas -- for the CGD industry is the current favorite -- and bulk of the gas may not get allocated to the fertilizer sector.
8Currently the domestic gas shortfall is large and the gap is growing. Of a total requirement of 43 mmscmd, domestic supply is 30 mmscmd.
8Under an optimistic calculation, which Ananth Kumar will be very happy with, if the incremental gas, of around 10 mmscmd in 2015-16, and 15 mmscmd in the subsequent two years are allocated to the fertilizer industry, it will obviate the need for LNG supply!
8If that is a very unlikely scenario, Kumar can push for the current allocation of LNG to remain at the same level, so that the percentage of LNG content comes down in the overall gas supply to the fertilizer industry from the current year onwards.
8In any of these combinations, fresh urea capacities can become viable, as it will counter the fear that all of new capacity will have to be based on imported LNG.
8If the petroleum ministry were to be able to give some kind of an assurance that gas will indeed be produced as promised and if the government can come up with a five year or a 10 year game plan, promising that this or a given quantum of the incremental gas will be supplied to the fertilizer industry at a pre-determined gas pricing formula, it will assure investors and bankers alike of stability of feedstock supply and price in the medium term, thereby giving them enough confidence to put in the investments. Details
Jun 22 : Will gas availability go up-III: Why Chambal Fertilizers is more aggressive than the others
UInlike what was reported earlier by this website, Chambal Fertilizers Ltd seems to have deployed an internal team to begin work on a standard brownfield urea-ammonia plant. The website stands corrected on that information.
8Negotiations have been restarted with Toyo Engineering for setting up the complex after the gas pooling and the new urea policy have been announced.
8Part of the enthusiasm emanates from the fact that Bhartias (Shyam and Hari Bhartia) are stakeholders in Chambal, and have a wide exposure to the oil and gas industry. They have a stake in GSPC-led block in the deepwater KG Basin where gas is already being produced. Then again they have interests in several onland oil and gas blocks. Their understanding of the domestic gas industry is deeper than the rest of the fertilizer industry, and they are more likely to believe the kind of projections made on gas supply.
8When contacted, spokesperson Ms Saina Sharif was tightlipped. "We have absolutely nothing to comment," she said, rather abruptly.
8Also, Chambal had survived on imported LNG so far for its Gadepan plants. Of the total requirement of 4 mmscmd of gas, as much as 2.28 msmcmd was based on long and medium term LNG. In fact their plant had to take a shutdown as it did not make sense to produce urea because of the high LNG content under the pricing paradigm in the earlier policy. In that sense they are not afraid to handle a situation where the dependency on LNG is high, for they have survived under such circumstances.
8In this context, Chambal is expected to be more aggressive in pursuing fresh brownfield capacity than any other private player in the business.
8All this of course does not mean that the Bhartias are going to dive in with their eyes shut. All they are doing for the time being is studying the policy, talking to Toyo and figuring out their next move. Details
8Negotiations have been restarted with Toyo Engineering for setting up the complex after the gas pooling and the new urea policy have been announced.
8Part of the enthusiasm emanates from the fact that Bhartias (Shyam and Hari Bhartia) are stakeholders in Chambal, and have a wide exposure to the oil and gas industry. They have a stake in GSPC-led block in the deepwater KG Basin where gas is already being produced. Then again they have interests in several onland oil and gas blocks. Their understanding of the domestic gas industry is deeper than the rest of the fertilizer industry, and they are more likely to believe the kind of projections made on gas supply.
8When contacted, spokesperson Ms Saina Sharif was tightlipped. "We have absolutely nothing to comment," she said, rather abruptly.
8Also, Chambal had survived on imported LNG so far for its Gadepan plants. Of the total requirement of 4 mmscmd of gas, as much as 2.28 msmcmd was based on long and medium term LNG. In fact their plant had to take a shutdown as it did not make sense to produce urea because of the high LNG content under the pricing paradigm in the earlier policy. In that sense they are not afraid to handle a situation where the dependency on LNG is high, for they have survived under such circumstances.
8In this context, Chambal is expected to be more aggressive in pursuing fresh brownfield capacity than any other private player in the business.
8All this of course does not mean that the Bhartias are going to dive in with their eyes shut. All they are doing for the time being is studying the policy, talking to Toyo and figuring out their next move. Details
The natural gas production in India in May 2015 has gone up to 2852.22 MMSCM, which is 6.84% higher then the production of 2669.70 MMSCM witnessed during the month of April 2015.
8The maximum increase has come from the Assam and Arunachal fields (13.3%), followed by Tamil Nadu blocks (9.76%), albeit on a lower production base.
8Production of CBM in the West Bengal region saw an increase of 7.22% during the month at 32.15 MMSCM from April's production of 29.99 MMSCM.
8The total onshore production during May went up by 6.2% at 752.10 MMSCM, from 708.17 MMSCM in April 2015.
8The offshore gas production, on the other hand, which accounts for maximum production of natural gas in India, increased by 7.07% to 2,100.13 MMSCM during May from 1,961.53 MMSCM in April. Details
8The maximum increase has come from the Assam and Arunachal fields (13.3%), followed by Tamil Nadu blocks (9.76%), albeit on a lower production base.
8Production of CBM in the West Bengal region saw an increase of 7.22% during the month at 32.15 MMSCM from April's production of 29.99 MMSCM.
8The total onshore production during May went up by 6.2% at 752.10 MMSCM, from 708.17 MMSCM in April 2015.
8The offshore gas production, on the other hand, which accounts for maximum production of natural gas in India, increased by 7.07% to 2,100.13 MMSCM during May from 1,961.53 MMSCM in April. Details
Is it likely that higher domestic output of gas leads to a concomitant lowering or stagnation in of LNG consumption.
8It is difficult to make a one on one correlation unless all the variables -- such as the fact that a plant dependent on LNG may have taken a shutdown and the supplier is unable to place the gas elsewhere -- are in place but the data shows rough relationship between the two. This, if true, also goes to prove the unpalatable fact that the Indian market still has not developed a healthy appetite for high cost LNG. This however will always remain the case until there is a huge differential between the domestic price of gas and LNG.
8The only way to eradicate the problem is to create a pooling mechanism as is being done in the case of the fertilizer sector.
8Data shows that sales of domestic natural gas and Coal Based Methane has gone up by 7.12% and 10.52% during April-May '15 which could be attributed to higher domestic production.
8On the other hand, the import of Liquefied Natural Gas in domestic market has gone down byb y 1.35% from 1.111 MMT in April '15 to 1.096 MMT in May '15.
8It is now known whether this is a result of the substitution effect.
8For the April-May period, sale of R-LNG might have gone down by a significant 3.97%, from 1580.50 MMSCM in April '15 to 1517.67 MMSCM in May '15. Details
8It is difficult to make a one on one correlation unless all the variables -- such as the fact that a plant dependent on LNG may have taken a shutdown and the supplier is unable to place the gas elsewhere -- are in place but the data shows rough relationship between the two. This, if true, also goes to prove the unpalatable fact that the Indian market still has not developed a healthy appetite for high cost LNG. This however will always remain the case until there is a huge differential between the domestic price of gas and LNG.
8The only way to eradicate the problem is to create a pooling mechanism as is being done in the case of the fertilizer sector.
8Data shows that sales of domestic natural gas and Coal Based Methane has gone up by 7.12% and 10.52% during April-May '15 which could be attributed to higher domestic production.
8On the other hand, the import of Liquefied Natural Gas in domestic market has gone down byb y 1.35% from 1.111 MMT in April '15 to 1.096 MMT in May '15.
8It is now known whether this is a result of the substitution effect.
8For the April-May period, sale of R-LNG might have gone down by a significant 3.97%, from 1580.50 MMSCM in April '15 to 1517.67 MMSCM in May '15. Details
ONGC's cumulative incremental gas production from the much awaited Tapti-Daman block is expected to touch 27.67 BCM by 2034-35.
8The project to develop the Tapti-Daman block -- dubbed the Daman Development project -- consists of additional development of C-24 and B-12 marginal fields (involving the B-12-11, B-12-13 and B-12-15 fields).
8A peak production of 8.5 mmscmd (with upside potential 10 mmscmd) is expected from the project.
8The cost of the project is estimated at Rs 6,086 crore.
8Though the facilities for additional production are expected to be completed by March 2017, gas production is likely to start earlier from July 2016 onwards. Maximum wells would be drilled by 2018-19 and the project would be completed by pre-monsoon 2019. Details
8The project to develop the Tapti-Daman block -- dubbed the Daman Development project -- consists of additional development of C-24 and B-12 marginal fields (involving the B-12-11, B-12-13 and B-12-15 fields).
8A peak production of 8.5 mmscmd (with upside potential 10 mmscmd) is expected from the project.
8The cost of the project is estimated at Rs 6,086 crore.
8Though the facilities for additional production are expected to be completed by March 2017, gas production is likely to start earlier from July 2016 onwards. Maximum wells would be drilled by 2018-19 and the project would be completed by pre-monsoon 2019. Details
ONGC has decided to take over the TCPP and TPP platforms from the Tapti JV (where ONGC has a 40% stake and BG and RIL hold 30% each) so that the facilities can be used for processing the additional gas that would be produced from the company's Tapti-Daman Block or the Daman Development project.
8As the Tapti gas fields have experienced a steep decline in their output, production is likely to cease by the third quarter of 2015, and as per Tapti PSC, the equipment and assets which are no longer required for petroleum operations need to be first offered free of cost to the government or its nominee. The facilities come free of cost as they have already been cost recovered by the JV.
8It was on DGH`s request that ONGC evaluated the option of taking over the Tapti JV facilities for production and processing of gas from its C-series discoveries and agreed to take over only the TCPP and TPP platform facilities.
8Along with the two platform facilities, the E&P major will also take over two spur lines (18" and 20") connected to the South Bassein Hazira Trunk (SBHT) lines (42" and 36") for the Daman development project, subject to the understanding that the abandonment and site restoration of balance facilities (wells, unmanned platforms and infield pipelines within the field which ONGC is not taking over) will be carried out by the PMT JV and adequate funds would be transferred to ONGC that would be required to abandon the facilities which ONGC is taking over. Details
8As the Tapti gas fields have experienced a steep decline in their output, production is likely to cease by the third quarter of 2015, and as per Tapti PSC, the equipment and assets which are no longer required for petroleum operations need to be first offered free of cost to the government or its nominee. The facilities come free of cost as they have already been cost recovered by the JV.
8It was on DGH`s request that ONGC evaluated the option of taking over the Tapti JV facilities for production and processing of gas from its C-series discoveries and agreed to take over only the TCPP and TPP platform facilities.
8Along with the two platform facilities, the E&P major will also take over two spur lines (18" and 20") connected to the South Bassein Hazira Trunk (SBHT) lines (42" and 36") for the Daman development project, subject to the understanding that the abandonment and site restoration of balance facilities (wells, unmanned platforms and infield pipelines within the field which ONGC is not taking over) will be carried out by the PMT JV and adequate funds would be transferred to ONGC that would be required to abandon the facilities which ONGC is taking over. Details
ONGC`s project for integrated development of the Vashishta (VA) and S1 fields is likely to get completed by April 2017.
8The project work got slowed down because of delays in handing over a part of the land earmarked for the Odalarevu onland terminal by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
8Under the integrated project, natural gas will be produced from the two fields in the KG offshore through four subsea wells tied back to the onshore processing facility at Odalarevu.
8The proposal for development of the Vashishta (VA) and S1 fields was okayed by ONGC after proven and probable (2P) gas reserves in the S1 field, factoring in the post-drilling results of an appraisal well in the S-1 field, went up from 0.33 BCM to 11.152 BCM.
8As per the original plan, the onshore terminal work was expected to completed by February 2016, while the offshore installation work was likely to be over by Jan-April of 2016. However, now with the delay in handing over of the land to ONGC, the scheduled completion is expected by April 2017.
8The total cost of the project is pegged at Rs 4,124 crore.
8A total of 15.96 BCM of incremental gas production is expected from the project by 2025-26. Details
8The project work got slowed down because of delays in handing over a part of the land earmarked for the Odalarevu onland terminal by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
8Under the integrated project, natural gas will be produced from the two fields in the KG offshore through four subsea wells tied back to the onshore processing facility at Odalarevu.
8The proposal for development of the Vashishta (VA) and S1 fields was okayed by ONGC after proven and probable (2P) gas reserves in the S1 field, factoring in the post-drilling results of an appraisal well in the S-1 field, went up from 0.33 BCM to 11.152 BCM.
8As per the original plan, the onshore terminal work was expected to completed by February 2016, while the offshore installation work was likely to be over by Jan-April of 2016. However, now with the delay in handing over of the land to ONGC, the scheduled completion is expected by April 2017.
8The total cost of the project is pegged at Rs 4,124 crore.
8A total of 15.96 BCM of incremental gas production is expected from the project by 2025-26. Details
After taking over the operatorship of the KG onland block KG-ONN-2003/1 from Cairn, ONGC has drawn up a plan to drill a total of 20 horizontal wells in the block.
8The project will be executed in two phases and will entail a cost of Rs 5,000 crore.
8While only two wells will be drilled in Phase-I, the remaining 18 wells will be drilled in Phase-II, with multistage hydro-fracturing in high pressure - high temperature (HP-HT) domain.
8A total of 2.54 MMT of oil and 1.31 BCM of gas is expected from the project by 2030-31.
8ONGC, with a 51% stake is the operator of the block, while Cairn India Ltd (CIL) holds the remaining 49%. Details
8The project will be executed in two phases and will entail a cost of Rs 5,000 crore.
8While only two wells will be drilled in Phase-I, the remaining 18 wells will be drilled in Phase-II, with multistage hydro-fracturing in high pressure - high temperature (HP-HT) domain.
8A total of 2.54 MMT of oil and 1.31 BCM of gas is expected from the project by 2030-31.
8ONGC, with a 51% stake is the operator of the block, while Cairn India Ltd (CIL) holds the remaining 49%. Details
First production from the Nagayalanka discoveries in the KG onland block KG-ONN-2003/1, is expected by September 2016.
8The "in-place" oil and gas reserves in the two Nagayalanka discoveries -- Nagayalanka 1z and Nagayalanka-SE-1 -- that have been made in the block are estimated to hold 13.93 MMT of oil and 9.43 BCM of gas.
8While the Nagayalanka 1z discovery has been made in the Raghavapuram reservoir, the Nagayalanka-SE-1 discovery is in the Gollapalli reservoir.
8As the Raghavapuram and Gollapalli reservoirs fall within a common area, both ONGC and Cairn believe that developing both the plays together will lead to cost optimization and better economics.
8The cost of the project is estimated at $786 million (approximately Rs 5,000 crore). Details
8The "in-place" oil and gas reserves in the two Nagayalanka discoveries -- Nagayalanka 1z and Nagayalanka-SE-1 -- that have been made in the block are estimated to hold 13.93 MMT of oil and 9.43 BCM of gas.
8While the Nagayalanka 1z discovery has been made in the Raghavapuram reservoir, the Nagayalanka-SE-1 discovery is in the Gollapalli reservoir.
8As the Raghavapuram and Gollapalli reservoirs fall within a common area, both ONGC and Cairn believe that developing both the plays together will lead to cost optimization and better economics.
8The cost of the project is estimated at $786 million (approximately Rs 5,000 crore). Details
Around 35% of the ONGC's total crude production is expected to come from its increased and enhanced oil recovery (IOR/EOR) schemes but given that these fields are also rapidly on decline it is a matter of time before output from them begin to falter.
8Currently only around 13.1% of its is expected from its new fields.
8This gain from IOR/EOR schemes is expected because 21 out of 26 IOR/EOR projects have been completed.
8The total gain from these schemes is envisaged at 185 MMT.
8The incremental gain in FY 2015 stood at 7.19 MMT (34.5% of ONGC’s crude oil production). The total incremental gain, upto FY 2015, is pegged at around 94.66 MMT.
8ONGC's domestic crude oil production level currently stands at 25.94 MMT.
8An amount of Rs 36,187 crore has already been spent on these projects against the planned investment of Rs 55,000 crore. Details
8Currently only around 13.1% of its is expected from its new fields.
8This gain from IOR/EOR schemes is expected because 21 out of 26 IOR/EOR projects have been completed.
8The total gain from these schemes is envisaged at 185 MMT.
8The incremental gain in FY 2015 stood at 7.19 MMT (34.5% of ONGC’s crude oil production). The total incremental gain, upto FY 2015, is pegged at around 94.66 MMT.
8ONGC's domestic crude oil production level currently stands at 25.94 MMT.
8An amount of Rs 36,187 crore has already been spent on these projects against the planned investment of Rs 55,000 crore. Details
Last minute hiccups have come up in implementing the gas pooling system for the fertilizer industry but sources said that none of the issues are insurmountable.
8Both GSPC and Oil India Ltd have opposed the idea of selling their share of gas supplied to the fertilizer industry to GAIL instead of fertilizer companies.
8"That`s not what we want to do," one of the suppliers told the website. Oil India sells gas to the Namrup fertilizer plant whereas GSPC has LNG buyers amongst fertilizer companies.
8The pooling system allows for one aggregator of gas, and this means that other sellers will have to sell their supplies to GAIL which in turn will aggregate the gas for the industry.
8Petroleum ministry officials were busy all of last week trying the settle the problem as everyone rushes to implement the July 1 deadline for launch of the pooling scheme.
8The industry however is neutral to the issue. In one sense competition among suppliers is welcome but only if the other players are dealing in substantial volumes of gas. Both GSPC and Oil India are small players compared to GAIL, and the industry believes that it is perhaps better to have a big monopoly supplier to deal with than a bunch of smaller players.
8When it comes to Take or Pay conditions, a big aggregator can switch supplies elsewhere in case of downtime and not ask for penalties, and this is the kind of flexibility that is not available to the small gas supplier," an industry representative told this website. Details
8Both GSPC and Oil India Ltd have opposed the idea of selling their share of gas supplied to the fertilizer industry to GAIL instead of fertilizer companies.
8"That`s not what we want to do," one of the suppliers told the website. Oil India sells gas to the Namrup fertilizer plant whereas GSPC has LNG buyers amongst fertilizer companies.
8The pooling system allows for one aggregator of gas, and this means that other sellers will have to sell their supplies to GAIL which in turn will aggregate the gas for the industry.
8Petroleum ministry officials were busy all of last week trying the settle the problem as everyone rushes to implement the July 1 deadline for launch of the pooling scheme.
8The industry however is neutral to the issue. In one sense competition among suppliers is welcome but only if the other players are dealing in substantial volumes of gas. Both GSPC and Oil India are small players compared to GAIL, and the industry believes that it is perhaps better to have a big monopoly supplier to deal with than a bunch of smaller players.
8When it comes to Take or Pay conditions, a big aggregator can switch supplies elsewhere in case of downtime and not ask for penalties, and this is the kind of flexibility that is not available to the small gas supplier," an industry representative told this website. Details
The oil and gas equipment market, which is now going through a difficult period due to the steep fall in the global crude oil prices, is expected to improve during the second half of 2015-16, according to Oil Country Tubular Ltd (OCTL).
8OCTL, which manufactures drilling pipes used in oil and gas exploration, is of the view that the rig count has continued to follow the oil prices displaying some of the sharpest declines in the history adversely affecting the exploration and drilling activities world over. During the year, there has been a steep fall in the global crude oil prices by more than 50% from a high of $115/barrel.
8A decline in rig count has a direct bearing on the drilling and exploration activities and the current situation is expected to continue during the current financial year 2015-16.
8The company is of the view that even if the rig market is expected to improve during the second half of 2015-16, the selling prices will be under pressure because of the inventory available on the ground.
8Procurement of OCTL's products by oil and gas exploration companies for the fiscal year 2014-15 were deferred due to the sharp fall in the crude oil prices. For the domestic market, the tenders have been announced only during March, 2015, and orders are expected to be finalized not before the first quarter of Financial Year 2016. Details
8OCTL, which manufactures drilling pipes used in oil and gas exploration, is of the view that the rig count has continued to follow the oil prices displaying some of the sharpest declines in the history adversely affecting the exploration and drilling activities world over. During the year, there has been a steep fall in the global crude oil prices by more than 50% from a high of $115/barrel.
8A decline in rig count has a direct bearing on the drilling and exploration activities and the current situation is expected to continue during the current financial year 2015-16.
8The company is of the view that even if the rig market is expected to improve during the second half of 2015-16, the selling prices will be under pressure because of the inventory available on the ground.
8Procurement of OCTL's products by oil and gas exploration companies for the fiscal year 2014-15 were deferred due to the sharp fall in the crude oil prices. For the domestic market, the tenders have been announced only during March, 2015, and orders are expected to be finalized not before the first quarter of Financial Year 2016. Details
Indianpetro Plus is an offshoot of Indianpetro.com but under a new management and editorial team.
8We have started with an entirely clean slate and we intend to follow impeccable standards of reportage, guaranteeing 100 per cent accuracy of the information we publish. We validate our news and analysis from multiple sources.
8The website is a result of a careful survey of the market that showed that there is indeed a big gap between a reader`s appetite for information and what the market has to offer. We intend to plug this gap.
8Our attempt will be to provide you with actionable information that will help in your decision making while bringing a fresh perspective to the issues at hand.
8We will support the government in its endeavour to rejuvenate the industry through new policies and initiatives while retaining our independence as a credible voice that speaks up for every stakeholder.
8We also want to assure you that we source all our information legitimately and all information provided here is a consequence of pure journalistic efforts by our editors and journalists.
8To preserve continuity, subscribers of indianpetro.com can access this website using their allocated usernames and passwords.
8We indemnify that we carry no information in any part of the website that is in violation of Indian law in any manner whatsoever. Details
8We have started with an entirely clean slate and we intend to follow impeccable standards of reportage, guaranteeing 100 per cent accuracy of the information we publish. We validate our news and analysis from multiple sources.
8The website is a result of a careful survey of the market that showed that there is indeed a big gap between a reader`s appetite for information and what the market has to offer. We intend to plug this gap.
8Our attempt will be to provide you with actionable information that will help in your decision making while bringing a fresh perspective to the issues at hand.
8We will support the government in its endeavour to rejuvenate the industry through new policies and initiatives while retaining our independence as a credible voice that speaks up for every stakeholder.
8We also want to assure you that we source all our information legitimately and all information provided here is a consequence of pure journalistic efforts by our editors and journalists.
8To preserve continuity, subscribers of indianpetro.com can access this website using their allocated usernames and passwords.
8We indemnify that we carry no information in any part of the website that is in violation of Indian law in any manner whatsoever. Details
There are more amendments that have been proposed by the Petroleum & Natural Gas Regulatory Board (PNGRB) in the award of City Gas Distribution licenses.
8As per the existing provision, the grant of authorization to an entity cannot be renunciated by way of sale, assignment, transfer or surrender to any person or entity during a period of three years from the date of its issue. But this provision is now proposed to be diluted. As per the proposed provision, an eligible new partner can be inducted as long as the original entity remains the lead partner without impacting the eligibility criteria as provided in the regulations. The original entity must have equity of more than 50% after inducting the new partner.
8The existing provision under which an entity can renunciate its authorization in favour of another entity after a period of three years is also now proposed to be extended to five years.
8Then again, amendment has also been proposed in the clause which relates to award of authorization in case of a tie between two bidding entities.
8PNGRB has sought comments and views from all stakeholders on the proposed amendments before July 11, 2015.
Click here for more information Details
8As per the existing provision, the grant of authorization to an entity cannot be renunciated by way of sale, assignment, transfer or surrender to any person or entity during a period of three years from the date of its issue. But this provision is now proposed to be diluted. As per the proposed provision, an eligible new partner can be inducted as long as the original entity remains the lead partner without impacting the eligibility criteria as provided in the regulations. The original entity must have equity of more than 50% after inducting the new partner.
8The existing provision under which an entity can renunciate its authorization in favour of another entity after a period of three years is also now proposed to be extended to five years.
8Then again, amendment has also been proposed in the clause which relates to award of authorization in case of a tie between two bidding entities.
8PNGRB has sought comments and views from all stakeholders on the proposed amendments before July 11, 2015.
Click here for more information Details
PNGRB`s dilution of its earlier insistence that there should be no cross subsidization of the marketing and transportation divisions will ential a dilution of its earlier stand on splitting up GAIL is seen as victory for the gas major as it had fought hard to fend off the move.
8The petroleum ministry stands behind GAIL on this, and had called the earlier move premature.
8The ministry had said that the regulaotor should wait five years and do an assessment though it was willing to allow an accounting and financial separation
8The law ministry had also said that the PNGRB Act calls for separation of the marketing and transportation functions of GAIL but not a legal separation.
8GAIL too had lobbied hard against such a move, claiming that splitting up the company at this point in time would hamper the building of cross country pipelines and the spread of the gas network across India.
Comment: Making it easy for GAIL to continue doing business the way it had been will eventually hurt the sector. A target date has to be set for the unbundling or else growth will be stymied as competition will suffer.
Click on Reports for more Details
8The petroleum ministry stands behind GAIL on this, and had called the earlier move premature.
8The ministry had said that the regulaotor should wait five years and do an assessment though it was willing to allow an accounting and financial separation
8The law ministry had also said that the PNGRB Act calls for separation of the marketing and transportation functions of GAIL but not a legal separation.
8GAIL too had lobbied hard against such a move, claiming that splitting up the company at this point in time would hamper the building of cross country pipelines and the spread of the gas network across India.
Comment: Making it easy for GAIL to continue doing business the way it had been will eventually hurt the sector. A target date has to be set for the unbundling or else growth will be stymied as competition will suffer.
Click on Reports for more Details
It seems like the Petroleum & Natural Gas Regulatory Board (PNGRB) has given up the battle to split up GAIL`s gas transportation and marketing wings into separate legal entities.
8Last year the regulator had sent a Board resolution and copies of a gazette notification to the petroleum ministry for legal separation of the two, that would entailed splitting up GAIL into two companies, but this stand is now sought to be diluted by the regulator.
8The PNGRB had then said that activities involved in the transportation of natural gas should made a separate legal entity by February 2017. The PNGRB proposal for unbundling GAIL`s transmission and marketing business came close on the heels of a strong representation by its customers and competitors that the PSU was taking advantage of being a bundled player as it is involved both in the supply and transportation of gas. The situation would have been different if GAIL`s supply and transportation services are legally unbundled, RGTIL had claimed.
8But last week, the regulator has sought to make a departure from this stand by seeking to delete one of the provisions for award of City Gas Distribution networks which makes it mandatory for the authorized entity to ensure that there is no cross subsidization of the costs between the activity of transportation and the activity of marketing of natural gas in the CGD network.
Click on our Reports section for more Details
8Last year the regulator had sent a Board resolution and copies of a gazette notification to the petroleum ministry for legal separation of the two, that would entailed splitting up GAIL into two companies, but this stand is now sought to be diluted by the regulator.
8The PNGRB had then said that activities involved in the transportation of natural gas should made a separate legal entity by February 2017. The PNGRB proposal for unbundling GAIL`s transmission and marketing business came close on the heels of a strong representation by its customers and competitors that the PSU was taking advantage of being a bundled player as it is involved both in the supply and transportation of gas. The situation would have been different if GAIL`s supply and transportation services are legally unbundled, RGTIL had claimed.
8But last week, the regulator has sought to make a departure from this stand by seeking to delete one of the provisions for award of City Gas Distribution networks which makes it mandatory for the authorized entity to ensure that there is no cross subsidization of the costs between the activity of transportation and the activity of marketing of natural gas in the CGD network.
Click on our Reports section for more Details
Two departments of the Assam government have raised a total demand of Rs 8,574 crore on Oil India Limited (OIL) claiming tax and royalty on sharing of under-recoveries to downstream oil companies and on transportation charges on crude oil.
8While the Assam Value Added Tax (VAT) Authority has issued a notice of demand for Rs 1,349.71 crore claiming tax on sharing of under-recoveries with downstream oil companies and on transportation charges on crude oil, the Geology and Mining Department has claimed Rs 7,224.20 crore on account of royalty on sharing of under-recoveries on crude oil for the period from 2008-09 upto 2013-14.
8The demand made by the VAT Authority has been contested by the company and pursuant to the directive of the Gauhati High Court the matter is pending before the VAT Appellate Authority.
8As far as the demand made by the Geology and Mining Department is concerned, the company has informed the authorities that it has been paying royalty on post-discounted price as instructed by the petroleum ministry and in line with the Oil Field (Regulation & Development) Act, 1948, and hence does not consider the claim as a liability.
Comment: Clearly, Assam like Gujarat, is looking at enchashing the judgement of the Gujarat High Court and an interim order by the Supreme Court that the royalty has to be paid at the pre-discount price of crude and not on the highly discountd rate subsequently by ONGC and OIL. How exactly the government is going to deal with the demand is to be seen because it is a gargantuan amount: Rs 17,000 crore, of which Gujarat has a claim of Rs 10,000 crore. Details
8While the Assam Value Added Tax (VAT) Authority has issued a notice of demand for Rs 1,349.71 crore claiming tax on sharing of under-recoveries with downstream oil companies and on transportation charges on crude oil, the Geology and Mining Department has claimed Rs 7,224.20 crore on account of royalty on sharing of under-recoveries on crude oil for the period from 2008-09 upto 2013-14.
8The demand made by the VAT Authority has been contested by the company and pursuant to the directive of the Gauhati High Court the matter is pending before the VAT Appellate Authority.
8As far as the demand made by the Geology and Mining Department is concerned, the company has informed the authorities that it has been paying royalty on post-discounted price as instructed by the petroleum ministry and in line with the Oil Field (Regulation & Development) Act, 1948, and hence does not consider the claim as a liability.
Comment: Clearly, Assam like Gujarat, is looking at enchashing the judgement of the Gujarat High Court and an interim order by the Supreme Court that the royalty has to be paid at the pre-discount price of crude and not on the highly discountd rate subsequently by ONGC and OIL. How exactly the government is going to deal with the demand is to be seen because it is a gargantuan amount: Rs 17,000 crore, of which Gujarat has a claim of Rs 10,000 crore. Details
As the Dahej-Uran-Dabhol-Panvel and the Dabhol-Bangalore pipelines, which will be connected to the Jaigarh LNG Terminal, do not cater to the natural gas requirement in and around the south-western coastal stretch of Panjim, Karwar, Murudeshwar, Udupi and Mangalore, H-Energy Pvt. Limited (HEPL) has submitted an Expression of Interest (EOI) to the Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build and operate a natural gas pipeline from Jaigarh (Maharashtra) to Mangalore (Karnataka).
8The coastal stretch of Panjim, Karwar, Murudeshwar, Udupi and Mangalore is presently not connected to the gas grid.
8As the demand for natural gas in this region is expected at approximately 7.0 mmscmd by 2019, H-Energy plans to lay a natural gas pipeline from Jaigarh to Mangalore to meet the natural gas requirement of south-west markets.
8The pipeline will originate from Jaigarh LNG terminal where re-gasified LNG from LNG terminal will be injected into the pipeline.
8The length of the proposed Jaigarh-Mangalore pipeline is 635 kms.
8A map depicting the route of the proposed gas pipeline, along with the delivery points, is also carried by the website. Details
8The coastal stretch of Panjim, Karwar, Murudeshwar, Udupi and Mangalore is presently not connected to the gas grid.
8As the demand for natural gas in this region is expected at approximately 7.0 mmscmd by 2019, H-Energy plans to lay a natural gas pipeline from Jaigarh to Mangalore to meet the natural gas requirement of south-west markets.
8The pipeline will originate from Jaigarh LNG terminal where re-gasified LNG from LNG terminal will be injected into the pipeline.
8The length of the proposed Jaigarh-Mangalore pipeline is 635 kms.
8A map depicting the route of the proposed gas pipeline, along with the delivery points, is also carried by the website. Details
H-Energy Gateway Private Limited`s (HEGPL) upcoming onshore LNG re-gasification terminal at Jaigarh, (Ratnagiri district) in Maharashtra, is expected to commence operations from 2019.
8The nameplate capacity of HEGPL`s -- which is an affiliate of Hiranandani Group`s energy arm, H-Energy -- LNG terminal is 8.0 MMTPA. In other words, the LNG terminal will be capable of supplying 29.0 mmscmd of re-gasified LNG in the downstream markets on a daily basis.
8The LNG terminal will be connected to two major trunk pipelines: the Dahej-Uran-Dabhol-Panvel pipeline and the Dabhol-Bangalore pipeline. These pipelines will be used to transport natural gas from Jaigarh LNG terminal to the downstream markets connected to the gas grid.
8The LNG terminal will be the first tolling terminal in the country offering 100% of re-gasification capacity to third party users (open access).
8In this model, the customers will reserve re-gasification capacity to unload, store and re-gasify the LNG procured from international suppliers. The terminal owner shall act as an infrastructure provider and would not have any interest in the commodity. The customers will have the flexibility to source LNG at competitive prices and terms from worldwide sources, and use the terminal infrastructure for re-gasification of LNG to meet their natural gas requirement. Details
8The nameplate capacity of HEGPL`s -- which is an affiliate of Hiranandani Group`s energy arm, H-Energy -- LNG terminal is 8.0 MMTPA. In other words, the LNG terminal will be capable of supplying 29.0 mmscmd of re-gasified LNG in the downstream markets on a daily basis.
8The LNG terminal will be connected to two major trunk pipelines: the Dahej-Uran-Dabhol-Panvel pipeline and the Dabhol-Bangalore pipeline. These pipelines will be used to transport natural gas from Jaigarh LNG terminal to the downstream markets connected to the gas grid.
8The LNG terminal will be the first tolling terminal in the country offering 100% of re-gasification capacity to third party users (open access).
8In this model, the customers will reserve re-gasification capacity to unload, store and re-gasify the LNG procured from international suppliers. The terminal owner shall act as an infrastructure provider and would not have any interest in the commodity. The customers will have the flexibility to source LNG at competitive prices and terms from worldwide sources, and use the terminal infrastructure for re-gasification of LNG to meet their natural gas requirement. Details
Advanced seismic studies carried out in the Tripura block AA-ONN-2001/1 (also known as Khubal block), have forced the operator, ONGC, to change five of its drilling locations.
8The E&P major was granted environment clearance by the MOEF in July 2014, for drilling a total of eight locations in the block.
8As these locations were finalized based on study of preliminary data acquired in the block, the E&P major decided to shot fresh seismic data.
8The newly acquired advanced seismic data carried out in the area necessitated changes in the co-ordinates of atleast five locations, namely RKH-15, RKH-17, RKH-18, RKH-19 and RKH-21.
8Accordingly, the E&P major has now requested the MOEF to amend the earlier granted EC so that it can complete the work within the stipulated time.
8ONGC is the operator of the block with 100% participating interest.
8The E&P major was granted environment clearance by the MOEF in July 2014, for drilling a total of eight locations in the block.
8As these locations were finalized based on study of preliminary data acquired in the block, the E&P major decided to shot fresh seismic data.
8The newly acquired advanced seismic data carried out in the area necessitated changes in the co-ordinates of atleast five locations, namely RKH-15, RKH-17, RKH-18, RKH-19 and RKH-21.
8Accordingly, the E&P major has now requested the MOEF to amend the earlier granted EC so that it can complete the work within the stipulated time.
8ONGC is the operator of the block with 100% participating interest.