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Jul 2015
The liquefied natural gas (LNG) industry is up for difficult times ahead, according to the IEA.
8The projects which are currently under construction are set to come on stream broadly as planned, as large upfront capital costs have already been incurred.
8Beyond that, however, new LNG plants will struggle to get off the ground.
8Current LNG prices simply do not cover the capital costs of new plants.
8Several LNG projects have already been scrapped or postponed, and the number of casualties will rise if the gas prices do not recover.
8Final investment decisions (FID) taken in the next 24 months will determine the amount of incremental LNG supplies available in the early part of the next decade.
8If current low gas prices persist, LNG markets could start to tighten up substantially by 2020, according to the IEA report.
Comment: A spate of LNG terminals are expected to come up in India but will they be economical? Does India have an appetite for LNG? These questions do not seem to have ready answers because not enough research has done on them. Doubts are already been expressed on whether the gas pooling mechanism -- which is nothing but a way of allowing LNG to ride piggy back on demand created by cheaper domestic crude -- for the fertilizer and power sector are going to work at all. For both power and fertilizer companies, which account for the bulk of the demand in India, LNG is far too expensive a fuel. In the fertilizer sector for example, the cost of manufacture will go up with the pooling of gas prices, and will stay above imported urea. This will not be sustainable in the long run. In the power sector, even cheaper domestic gas, leave alone LNG, cannot always compete with coal in the merit based offtake matrix. If this is the realstic scenario, where is the demand for LNG going to come from in the future? This still remains a million dollar question.
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8The projects which are currently under construction are set to come on stream broadly as planned, as large upfront capital costs have already been incurred.
8Beyond that, however, new LNG plants will struggle to get off the ground.
8Current LNG prices simply do not cover the capital costs of new plants.
8Several LNG projects have already been scrapped or postponed, and the number of casualties will rise if the gas prices do not recover.
8Final investment decisions (FID) taken in the next 24 months will determine the amount of incremental LNG supplies available in the early part of the next decade.
8If current low gas prices persist, LNG markets could start to tighten up substantially by 2020, according to the IEA report.
Comment: A spate of LNG terminals are expected to come up in India but will they be economical? Does India have an appetite for LNG? These questions do not seem to have ready answers because not enough research has done on them. Doubts are already been expressed on whether the gas pooling mechanism -- which is nothing but a way of allowing LNG to ride piggy back on demand created by cheaper domestic crude -- for the fertilizer and power sector are going to work at all. For both power and fertilizer companies, which account for the bulk of the demand in India, LNG is far too expensive a fuel. In the fertilizer sector for example, the cost of manufacture will go up with the pooling of gas prices, and will stay above imported urea. This will not be sustainable in the long run. In the power sector, even cheaper domestic gas, leave alone LNG, cannot always compete with coal in the merit based offtake matrix. If this is the realstic scenario, where is the demand for LNG going to come from in the future? This still remains a million dollar question.
Click on our Reports section for more Details
In a very well argued report, the International Energy Association (IEA) has said that high prices have brought down the global demand for gas to just 2% annually until 2020.
8In a world of very cheap coal and plummeting renewables costs, it has become difficult for gas to compete.
8Very high import prices in 2013 and 2014 undermined the gas consumption growth, especially in the power sector. Several Asian countries took active steps to limit the share of gas usage in their power mix and prioritized coal capacity expansions over those of gas.
8Plunging oil and gas prices raise the question of how demand, particularly in Asia, will respond. While the report forecasts a price-driven increase in consumption, the sensitivity of Asian demand to lower prices is uncertain and is yet to be fully tested, says the report.
8In the short run, better affordability of gas imports is likely to result in higher consumption. But in the medium term, the picture becomes more complex. Trust in gas as an attractive strategic option must increase for the fuel to make sustained inroads in the energy mix of much of the developing Asia.
8The gas industry will have to prove that it can deliver gas supplies at price levels substantially below those that have prevailed in the recent past.
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8In a world of very cheap coal and plummeting renewables costs, it has become difficult for gas to compete.
8Very high import prices in 2013 and 2014 undermined the gas consumption growth, especially in the power sector. Several Asian countries took active steps to limit the share of gas usage in their power mix and prioritized coal capacity expansions over those of gas.
8Plunging oil and gas prices raise the question of how demand, particularly in Asia, will respond. While the report forecasts a price-driven increase in consumption, the sensitivity of Asian demand to lower prices is uncertain and is yet to be fully tested, says the report.
8In the short run, better affordability of gas imports is likely to result in higher consumption. But in the medium term, the picture becomes more complex. Trust in gas as an attractive strategic option must increase for the fuel to make sustained inroads in the energy mix of much of the developing Asia.
8The gas industry will have to prove that it can deliver gas supplies at price levels substantially below those that have prevailed in the recent past.
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A suggestion that was made by a section of fertilizer industry is for the government to subsidize the price of gas to urea units.
8If instead of $ 10/mmbtu, the price of gas is kept at $ 7/mmbtu and the gap is subsidized and paid to the gas producer or supplier, the cost of production of urea will go down.
8One clear advantage of this will be to keep the cost of urea production down.
8This in turn will mean that international urea producers will be forced to keep their urea prices at levels equivalent to or lower than the domestic production cost to remain competitive.
8This way, the government can keep the subsidy outgo on imported urea at a lower level.
8In the current situation, the cost of manufacturing urea is higher
8This makes it easier for the international urea lobby to keep their urea price concomitantly higher.
8Under the present system, the the overall price of urea is pegged higher and this will translate into higher import prices.
8In other words, pooling ends up benefiting the international supplier. Details
8If instead of $ 10/mmbtu, the price of gas is kept at $ 7/mmbtu and the gap is subsidized and paid to the gas producer or supplier, the cost of production of urea will go down.
8One clear advantage of this will be to keep the cost of urea production down.
8This in turn will mean that international urea producers will be forced to keep their urea prices at levels equivalent to or lower than the domestic production cost to remain competitive.
8This way, the government can keep the subsidy outgo on imported urea at a lower level.
8In the current situation, the cost of manufacturing urea is higher
8This makes it easier for the international urea lobby to keep their urea price concomitantly higher.
8Under the present system, the the overall price of urea is pegged higher and this will translate into higher import prices.
8In other words, pooling ends up benefiting the international supplier. Details
Clearly, the pooling system will entail a disproportionate burden on those urea units whose average cost of gas is lower than the pool price.
8Around 70% of the cost of urea is made up of feedstock price.
8In this context, for those units against which debit notes are issued by GAIL, the working capital requirement will be significantly higher. Those with credit notes will have a concomitantly lower requirement.
8In a scenario where subsidy payments are withheld, urea units will have to rush to banks for larger working capital limits.
8Those with debit notes will need to seek higher limits and this may not be easily forthcoming for units which are financially stressed even under ordinary circumstances to pay their gas bills.
8The government does not pay for the interest element on these loans, so the burden of footing the bill until subsidy payments are released will fall entirely on the urea units.
8Clearly, gas pooling means more problems for some urea units.
8More clarity on how the whole system will work is likely when FICC clears the monthly bills for June -- the month from when the pooling system has been made effective -- by July 2015. Details
8Around 70% of the cost of urea is made up of feedstock price.
8In this context, for those units against which debit notes are issued by GAIL, the working capital requirement will be significantly higher. Those with credit notes will have a concomitantly lower requirement.
8In a scenario where subsidy payments are withheld, urea units will have to rush to banks for larger working capital limits.
8Those with debit notes will need to seek higher limits and this may not be easily forthcoming for units which are financially stressed even under ordinary circumstances to pay their gas bills.
8The government does not pay for the interest element on these loans, so the burden of footing the bill until subsidy payments are released will fall entirely on the urea units.
8Clearly, gas pooling means more problems for some urea units.
8More clarity on how the whole system will work is likely when FICC clears the monthly bills for June -- the month from when the pooling system has been made effective -- by July 2015. Details
Cracks seems have developed already in the gas price pooling mechanism that the government has put together for the fertilizer industry.
8The problem seems to be more financial than conceptual at this stage, particularly because the subsidy allocation to fund the mechanism is likely to run dry by end July, leaving GAIL with prospect of having to deal with unpaid gas price differential bills beginning next month unless the finance ministry decides to release more money through supplementary allocations. In the normal course, the finance ministry -- since it has the objective of keeping the fiscal deficit under check -- is reluctant to release additional subsidy funds until the next budget.
8The system of averaging domestic gas prices with imported LNG, as it is structured today, calls for GAIL to issue debit notes on those urea units which buys gas at lower than the pool price and credit notes to those who are above the bar.
8If subsidy payments are stopped, urea units will be under severe stress when it comes to paying GAIL against the debit notes raised on them. The gas major in turn will be short of funds to pay those against whom it issues credit notes.
8So how will it all unfold? Will the pooling system be able to survive in a scenario where there will be not enough money to fund it?
Click on Details to find out more. Details
8The problem seems to be more financial than conceptual at this stage, particularly because the subsidy allocation to fund the mechanism is likely to run dry by end July, leaving GAIL with prospect of having to deal with unpaid gas price differential bills beginning next month unless the finance ministry decides to release more money through supplementary allocations. In the normal course, the finance ministry -- since it has the objective of keeping the fiscal deficit under check -- is reluctant to release additional subsidy funds until the next budget.
8The system of averaging domestic gas prices with imported LNG, as it is structured today, calls for GAIL to issue debit notes on those urea units which buys gas at lower than the pool price and credit notes to those who are above the bar.
8If subsidy payments are stopped, urea units will be under severe stress when it comes to paying GAIL against the debit notes raised on them. The gas major in turn will be short of funds to pay those against whom it issues credit notes.
8So how will it all unfold? Will the pooling system be able to survive in a scenario where there will be not enough money to fund it?
Click on Details to find out more. Details
OIL has floated tenders for laying of two gas pipelines in Assam.
8The first pipeline is a lean gas pipeline from Nagajan to Hapajan in the Tinsukia district (Assam) under the PLF Section, Duliajan.
8The length of the pipeline is 15 km.
8The other is a 13-km-long pipeline from Bhekulajan to Hatiali.
8The size of both the pipelines is 200 mm.
8Both the pipelines will be laid as per ASME B 31.8 standards.
8The bid closing date and time for both the tenders is July 24, 2015 (11.00 A.M.).
Click here for more Details Details
8The first pipeline is a lean gas pipeline from Nagajan to Hapajan in the Tinsukia district (Assam) under the PLF Section, Duliajan.
8The length of the pipeline is 15 km.
8The other is a 13-km-long pipeline from Bhekulajan to Hatiali.
8The size of both the pipelines is 200 mm.
8Both the pipelines will be laid as per ASME B 31.8 standards.
8The bid closing date and time for both the tenders is July 24, 2015 (11.00 A.M.).
Click here for more Details Details
IndianOil Corporation Ltd has been submitted to MoEF-CC for obtaining EC for the existing bulk LPG storage capacity of 1800 MT to achieve the consented LPG bottling throughput of 1,20,000 MTPA in Tirunelveli in Tamil Nadu
8The throughput will be achieved by installing two LPG cylinder Filling Carousels with 24 Filling Machines within the existing plant.
8The present demand for packed LPG in Tamil Nadu is 780 TMT as against the rated bottling capacity of 682TMTPA as on 1st April 2011.
8The packed LPG demand projection in Tamil Nadu is 1051 TMT by the year 2014-15.
8Even after exhausting the available possibilities of additional capacity of 300 TMT in the existing LPG bottling plants in Tamil Nadu, the available capacity would not be sufficient to meet the increased demand of 1051 TMT during the year 2014-15.
8Click on our Reports section more. Details
8The throughput will be achieved by installing two LPG cylinder Filling Carousels with 24 Filling Machines within the existing plant.
8The present demand for packed LPG in Tamil Nadu is 780 TMT as against the rated bottling capacity of 682TMTPA as on 1st April 2011.
8The packed LPG demand projection in Tamil Nadu is 1051 TMT by the year 2014-15.
8Even after exhausting the available possibilities of additional capacity of 300 TMT in the existing LPG bottling plants in Tamil Nadu, the available capacity would not be sufficient to meet the increased demand of 1051 TMT during the year 2014-15.
8Click on our Reports section more. Details
ONGC Ltd. proposes to drill four development, two exploratory wells and convert two other exploratory wells to development wells in Kasomarigaon Block in Assam at a project cost of Rs 200 crore.
8Standard Land Rig or Mobile Land Rig with standard water based drilling fluid treatment system will be used for drilling and the wells will be connected with flow lines to the nearest GGS/EPS.
8Exploratory and development wells will be drilled for 2-3 month only and are expected to be up to a depth of 2500m.
8Power requirement for each exploratory and development wells will be met through the operation of AC-SCR DG set of 750KW.
8One DG set will be operable during site construction, two operable and one standby during drilling operation and one for lighting and other power requirements. It is estimated that 6KLD of diesel will be required during drilling phase alone.
8Click on our Reports section more. Details
8Standard Land Rig or Mobile Land Rig with standard water based drilling fluid treatment system will be used for drilling and the wells will be connected with flow lines to the nearest GGS/EPS.
8Exploratory and development wells will be drilled for 2-3 month only and are expected to be up to a depth of 2500m.
8Power requirement for each exploratory and development wells will be met through the operation of AC-SCR DG set of 750KW.
8One DG set will be operable during site construction, two operable and one standby during drilling operation and one for lighting and other power requirements. It is estimated that 6KLD of diesel will be required during drilling phase alone.
8Click on our Reports section more. Details
ONGC will construct a Group Gathering Station in conjunction with the drilling activity which will be used for oil, gas and water separation, as well as for oil treatment and stabilization and associated gas treatment at Challang Pothar village in Assam.
The station will host the following facilities:
--Test Header
--Test Separator
--Chemical Dosing System
--Bath Heater
--HP Separator
--LP Separator
--Crude Storage Tank
--Crude Dispatch Pump
--Flare system
8A 25-km pipeline will connect the proposed Kasomarigaon GGS to existing Borholla GGS
835 Transfer Points (TP) will be constructed along the entire pipeline length.
8The power requirement will be met from the State Electricity Power Grid. An Emergency 125 KVA DG set will be kept in the premises.
8Click on our Reports section more. Details
The station will host the following facilities:
--Test Header
--Test Separator
--Chemical Dosing System
--Bath Heater
--HP Separator
--LP Separator
--Crude Storage Tank
--Crude Dispatch Pump
--Flare system
8A 25-km pipeline will connect the proposed Kasomarigaon GGS to existing Borholla GGS
835 Transfer Points (TP) will be constructed along the entire pipeline length.
8The power requirement will be met from the State Electricity Power Grid. An Emergency 125 KVA DG set will be kept in the premises.
8Click on our Reports section more. Details
For those who are interested in energy sector analysis, the website carries here the latest energy related data on India covering a range of parameters.
Highlights:
--State-wise Estimated Reserves of Crude Oil and Natural Gas
--Source wise and State wise Estimated Potential of Renewable Power
--Installed Capacity and Capacity Utilization of Refineries of Crude Oil
--Trends in Installed Generating Capacity of Electricity in Utilities and Non Utilities
--Regionwise and State wise Installed Generating Capacity of Electricity(Utilities)
--Details of Off-grid/ Decentralised Renewable Energy Systems/ Devices
8Click on our Reports section for more. Details
Highlights:
--State-wise Estimated Reserves of Crude Oil and Natural Gas
--Source wise and State wise Estimated Potential of Renewable Power
--Installed Capacity and Capacity Utilization of Refineries of Crude Oil
--Trends in Installed Generating Capacity of Electricity in Utilities and Non Utilities
--Regionwise and State wise Installed Generating Capacity of Electricity(Utilities)
--Details of Off-grid/ Decentralised Renewable Energy Systems/ Devices
8Click on our Reports section for more. Details
Here again the website carries data on production of conventional energy sources, foreign trade in energy products and availability of crude oil, petroleum products and natural gas in India.
Highlights:
--Trends in Production of Primary Sources of Conventional Energy
--Trends in Production of Energy (in Peta Joules) by Primary Sources
--Trends in Domestic Production of Petroleum Products
--Trends in Gross and Net Production of Natural Gas
--Trends in Gross Generation of Electricity in Utilities and Non-utilities
--Trends of Foreign Trade in Coal, Crude Oil and Petroleum Products in India
--Trends in Availability of Primary Sources of Conventional Energy
--Trends in Availability of Raw Coal and Lignite for Consumption
--Trends in Availability of Crude Oil, Petroleum Products and natural gas
8Click on our Reports section more. Details
Highlights:
--Trends in Production of Primary Sources of Conventional Energy
--Trends in Production of Energy (in Peta Joules) by Primary Sources
--Trends in Domestic Production of Petroleum Products
--Trends in Gross and Net Production of Natural Gas
--Trends in Gross Generation of Electricity in Utilities and Non-utilities
--Trends of Foreign Trade in Coal, Crude Oil and Petroleum Products in India
--Trends in Availability of Primary Sources of Conventional Energy
--Trends in Availability of Raw Coal and Lignite for Consumption
--Trends in Availability of Crude Oil, Petroleum Products and natural gas
8Click on our Reports section more. Details
This section carries energy consumption details along with movements in the price indices of energy commodities, together with a look at world production and consumption of crude oil and natural gas for a broader view.
Highlights:
--Trends in Consumption of Conventional Sources of Energy
--Trends in Growth in Energy Consumption and Energy intensity
--Trends in Consumption of Conventional Energy ( Peta Joules)
--Trends in Consumption of Petroleum Products
--Sector-wise( end use) Consumption of Selected Petroleum Products
--Industry-wise Off-take of Natural Gas
--Energy Commodity Balance
--Energy Balance
--Wholesale Price Indices of Energy Commodities
--Country wise Estimates of Production of Crude Oil
--Country-wise Estimates of Consumption of Crude Oil
--Country-wise Estimates of Production of Natural Gas
--Country-wise Estimates of Consumption of Natural Gas
8Click on our Reports section for more. Details
Highlights:
--Trends in Consumption of Conventional Sources of Energy
--Trends in Growth in Energy Consumption and Energy intensity
--Trends in Consumption of Conventional Energy ( Peta Joules)
--Trends in Consumption of Petroleum Products
--Sector-wise( end use) Consumption of Selected Petroleum Products
--Industry-wise Off-take of Natural Gas
--Energy Commodity Balance
--Energy Balance
--Wholesale Price Indices of Energy Commodities
--Country wise Estimates of Production of Crude Oil
--Country-wise Estimates of Consumption of Crude Oil
--Country-wise Estimates of Production of Natural Gas
--Country-wise Estimates of Consumption of Natural Gas
8Click on our Reports section for more. Details
Aegis India Limited proposes to develop a cryogenic LPG import, storage and distribution facility along with allied infrastructure at Haldia in West Bengal, with a project cost of Rs.150 crore.
8Cryogenic LPG will be unloaded from ship at Haldia Oil Jetties HOJ- I/II/III and would be transported to a storage terminal 12 km away through two pipelines of 12" diameter.
8The storage terminal willl be provided with two double walled double integrity above ground (A/G) tanks with a gross capacity of 25100 MT.
8In addition to that, facilities for LPG Vapouriser, LPG Heater, Packaged Cooling Tower and other facilities like Mercaptan dosing will be installed at the LPG terminal.
8The power source will be from WB State Electricity Board, with a 33KVA connection and an emergency power supply to come from 1X250 KVA and 1X75KVA DG sets.
8In order to maintain the temperature of -27 degree Celsius in the refrigerated storage tanks, two Boil off compressors have been provided and and an equal number of Flash off compressors during filling of the storage tank.
8LPG Loading operation from cryogenic storage tanks to road tankers loading gantry via LPG Heaters will be done by two vertical submerged LPG Loading pumps with a capacity of 60 HT/Hr each.
8Loading rate will be controlled though flow indicator controllers to be installed on the discharge line of each pump.
8Click on our Reports section more. Details
8Cryogenic LPG will be unloaded from ship at Haldia Oil Jetties HOJ- I/II/III and would be transported to a storage terminal 12 km away through two pipelines of 12" diameter.
8The storage terminal willl be provided with two double walled double integrity above ground (A/G) tanks with a gross capacity of 25100 MT.
8In addition to that, facilities for LPG Vapouriser, LPG Heater, Packaged Cooling Tower and other facilities like Mercaptan dosing will be installed at the LPG terminal.
8The power source will be from WB State Electricity Board, with a 33KVA connection and an emergency power supply to come from 1X250 KVA and 1X75KVA DG sets.
8In order to maintain the temperature of -27 degree Celsius in the refrigerated storage tanks, two Boil off compressors have been provided and and an equal number of Flash off compressors during filling of the storage tank.
8LPG Loading operation from cryogenic storage tanks to road tankers loading gantry via LPG Heaters will be done by two vertical submerged LPG Loading pumps with a capacity of 60 HT/Hr each.
8Loading rate will be controlled though flow indicator controllers to be installed on the discharge line of each pump.
8Click on our Reports section more. Details
The issue of multiple entities setting up CNG stations (other than authorized entity) within the authorized GAs was also raised during the pre-bid conference.
8The PNGRB clarified that the matter is currently sub-judice in the Punjab and Haryana High Court.
8The Board informed that the guidelines for granting marketing rights for CNG as a transportation fuel (including setting up of CNG stations) are still at the drafting stage and have not yet been finalized.
8As of now, the stated position of the petroleum ministry is that "no entity except those (i) who are authorised by PNGRB under PNGRB Act, 2006, to establish a city or local gas distribution network in their respective Geographical Area, or (ii) who are deemed to have authorisation under PNGRB Act, 2006, for establishing a city or local gas distribution network in their respective Geographical Area, may set up a new CNG station till further order", the Board clarified. Details
8The PNGRB clarified that the matter is currently sub-judice in the Punjab and Haryana High Court.
8The Board informed that the guidelines for granting marketing rights for CNG as a transportation fuel (including setting up of CNG stations) are still at the drafting stage and have not yet been finalized.
8As of now, the stated position of the petroleum ministry is that "no entity except those (i) who are authorised by PNGRB under PNGRB Act, 2006, to establish a city or local gas distribution network in their respective Geographical Area, or (ii) who are deemed to have authorisation under PNGRB Act, 2006, for establishing a city or local gas distribution network in their respective Geographical Area, may set up a new CNG station till further order", the Board clarified. Details
The following details are carried for all the 20 Geographical Areas (GAs) which were put on offer by the PNGRB:
8Population in each GA (as per the latest census)
8Minimum Work Programme (MWP) for first five years
8Total number of PNG domestic connections to be provided under each GA
8Year-wise targets (at the end of year) for PNG connections for five years
8Total length of pipeline to be laid under each GA (in inch kilometers)
8Year-wise pipeline laying targets (at the end of year) for first five years
8Application money, bid bond and net worth requirement for each GA Details
8Population in each GA (as per the latest census)
8Minimum Work Programme (MWP) for first five years
8Total number of PNG domestic connections to be provided under each GA
8Year-wise targets (at the end of year) for PNG connections for five years
8Total length of pipeline to be laid under each GA (in inch kilometers)
8Year-wise pipeline laying targets (at the end of year) for first five years
8Application money, bid bond and net worth requirement for each GA Details
The 5th bidding round for development of city gas distribution (CGD) networks has received a lukewarm response. Of the total 20 Geographical Areas (GAs), no bids have been revived for as many as eight areas.
8The eight GAs for which no bids have been received are: Badaun, Aligarh, Bulandshahr (except areas already authorized under Khurja GA) and Muzzaffarnagar in Uttar Pradesh, Latur and Osmanabad in Maharastra, Shivpuri in Madhya Pradesh and Bidar in Karnataka.
8Though GAIL Gas had initially submitted its bid for the GA of Muzzaffanagar (UP), it later decided to withdraw it.
8What is more, as single bids have been received for the GAs of Dhar (Madhya Pradesh) and Dahod (Gujarat), the PNGRB has decided to retender the two GAs.
8The last date for submission of bids for development of CGD networks was fixed as April 23, 2015, but later it was extended upto June 22, 2015. Details
8The eight GAs for which no bids have been received are: Badaun, Aligarh, Bulandshahr (except areas already authorized under Khurja GA) and Muzzaffarnagar in Uttar Pradesh, Latur and Osmanabad in Maharastra, Shivpuri in Madhya Pradesh and Bidar in Karnataka.
8Though GAIL Gas had initially submitted its bid for the GA of Muzzaffanagar (UP), it later decided to withdraw it.
8What is more, as single bids have been received for the GAs of Dhar (Madhya Pradesh) and Dahod (Gujarat), the PNGRB has decided to retender the two GAs.
8The last date for submission of bids for development of CGD networks was fixed as April 23, 2015, but later it was extended upto June 22, 2015. Details
Of the 20 Geographical Areas (GAs) which were put on offer under the 5th round of CGD bidding, offers for only 10 GAs will be processed further for authorization. The list of entities which have submitted their bids for the 10 GAs are:
8East Godavari (Andhra): Megha Engineering & Infrastructure Ltd and Consortium of Andhra Pradesh Gas Distribution Corporation Ltd and HPCL
8Balgaum (Karnataka): Megha Engineering, Indian Oil-Adani Gas Pvt Ltd and Consortium of GAIL Gas and BPCL
8Ahmadnagar (Maharashtra): Maharashtra Natural Gas Ltd and Essal Gas Company Ltd
8Krishna (Andhra): Megha Engineering and Consortium of Andhra Pradesh Gas Distribution Corporation Ltd and HPCL
8West Godavari (Andhra): Megha Engineering and Consortium of Andhra Pradesh Gas Distribution Corporation Ltd and HPCL
8Banaskantha (Gujarat): GSPC Gas Ltd, Essal Gas Company Ltd
8Tumkur (Karnataka): Megha Engineering, GAIL Gas and Indian Oil-Adani Gas combine
8Haridwar (Uttarakhand: Indian Oil-Adani Gas and Consortium of GAIL Gas and BPCL
8Dharwad (Karnataka): Megha Engineering, GAIL Gas and Indian Oil-Adani Gas combine
8Udham Singh Nagar (Uttarakhand): Indian Oil-Adani Gas and Consortium of GAIL Gas and BPCL Details
8East Godavari (Andhra): Megha Engineering & Infrastructure Ltd and Consortium of Andhra Pradesh Gas Distribution Corporation Ltd and HPCL
8Balgaum (Karnataka): Megha Engineering, Indian Oil-Adani Gas Pvt Ltd and Consortium of GAIL Gas and BPCL
8Ahmadnagar (Maharashtra): Maharashtra Natural Gas Ltd and Essal Gas Company Ltd
8Krishna (Andhra): Megha Engineering and Consortium of Andhra Pradesh Gas Distribution Corporation Ltd and HPCL
8West Godavari (Andhra): Megha Engineering and Consortium of Andhra Pradesh Gas Distribution Corporation Ltd and HPCL
8Banaskantha (Gujarat): GSPC Gas Ltd, Essal Gas Company Ltd
8Tumkur (Karnataka): Megha Engineering, GAIL Gas and Indian Oil-Adani Gas combine
8Haridwar (Uttarakhand: Indian Oil-Adani Gas and Consortium of GAIL Gas and BPCL
8Dharwad (Karnataka): Megha Engineering, GAIL Gas and Indian Oil-Adani Gas combine
8Udham Singh Nagar (Uttarakhand): Indian Oil-Adani Gas and Consortium of GAIL Gas and BPCL Details
The Petroleum and Natural Gas Regulatory Board (PNGRB) has clarified that the bidding entities will be free to determine network tariffs, compression charges and rate of returns as per their own policies and methodology.
8The clarification was made during a pre-bid conference on the 5th bidding round for development of city gas distribution (CGD) networks.
8It is pertinent to note that the Supreme Court (in the case between IGL and PNGRB) too, on July 1, 2015, had ruled that CGD companies, having their own distribution networks, would be free to fix their own tariffs.
8The apex court dismissed a Special Leave Petition (SLP) filed by the PNGRB seeking power to regulate prices of intra-city supplies. The apex court found no substance in the PNGRB's arguments challenging the decision of the Delhi High Court which had quashed the Board's order on network tariff and compression charge.
8What is more, the PNGRB, during the pre-bid conference, also clarified that authorized entities would be given a free hand in deciding the number of PNG domestic connections for their network for the rest of 20 years of the economic life.
8In other words, the Minimum Work Programme (MWP) targets would be applicable for only first five years. Details
8The clarification was made during a pre-bid conference on the 5th bidding round for development of city gas distribution (CGD) networks.
8It is pertinent to note that the Supreme Court (in the case between IGL and PNGRB) too, on July 1, 2015, had ruled that CGD companies, having their own distribution networks, would be free to fix their own tariffs.
8The apex court dismissed a Special Leave Petition (SLP) filed by the PNGRB seeking power to regulate prices of intra-city supplies. The apex court found no substance in the PNGRB's arguments challenging the decision of the Delhi High Court which had quashed the Board's order on network tariff and compression charge.
8What is more, the PNGRB, during the pre-bid conference, also clarified that authorized entities would be given a free hand in deciding the number of PNG domestic connections for their network for the rest of 20 years of the economic life.
8In other words, the Minimum Work Programme (MWP) targets would be applicable for only first five years. Details
The PNGRB issued clarifications on the following issues which were raised during the pre-bid conference:
8Formation of SPVs and consortium related issues
8Lock-in period
8Withdrawal and modification of bids
8Number of Charge Areas (CAs) under GAs
8High number of targets for PNG connections to be achieved in first five years
8Penalty criteria for not completing the MWP
8Change in equity structure of company after submission of bids but before award of project Details
8Formation of SPVs and consortium related issues
8Lock-in period
8Withdrawal and modification of bids
8Number of Charge Areas (CAs) under GAs
8High number of targets for PNG connections to be achieved in first five years
8Penalty criteria for not completing the MWP
8Change in equity structure of company after submission of bids but before award of project Details
The oil demand in India is expected to go up by 3.37% in 2015, according to OPEC`s Monthly Oil Market Report.
8In 2014, the oil demand in India stood at 3.79 million barrels per day (mb/d), which is now expected to go up to 3.91 mb/d in 2015.
8In Q1, 2015, the demand was at 4 mb/d, but in Q2, 2015, it is expected to go down marginally to 3.91 mb/d. In Q3, it is further expected to go down to 3.76 mb/d, finally touching 3.99 mb/d in Q4, 2015.
8In April, India’s crude imports averaged 3.6 mb/d, which is 329 tb/d or 9% lower than last month’s level, while on an annual basis, they dropped by 560 tb/d or 14%. This decline occurred ahead of a planned maintenance shutdown.
8The oil production in India will decrease by 10 tb/d, according to OPEC estimates.
8Oil product sales rose in April 2015, from a year earlier by 8.7%, driven by strong demand for gasoline and gasoil.
8India`s economy grew 7.5% in the Q1, 2015, which was above expectations, and grew 7.3% during the fiscal year ending 31 March 2015, outpacing China`s growth for two out of the last three quarters.
8Expectations for India's growth in 2015 is a rapid 7.5%.
Click here to access the OPEC`s Monthly Oil Market Report Details
8In 2014, the oil demand in India stood at 3.79 million barrels per day (mb/d), which is now expected to go up to 3.91 mb/d in 2015.
8In Q1, 2015, the demand was at 4 mb/d, but in Q2, 2015, it is expected to go down marginally to 3.91 mb/d. In Q3, it is further expected to go down to 3.76 mb/d, finally touching 3.99 mb/d in Q4, 2015.
8In April, India’s crude imports averaged 3.6 mb/d, which is 329 tb/d or 9% lower than last month’s level, while on an annual basis, they dropped by 560 tb/d or 14%. This decline occurred ahead of a planned maintenance shutdown.
8The oil production in India will decrease by 10 tb/d, according to OPEC estimates.
8Oil product sales rose in April 2015, from a year earlier by 8.7%, driven by strong demand for gasoline and gasoil.
8India`s economy grew 7.5% in the Q1, 2015, which was above expectations, and grew 7.3% during the fiscal year ending 31 March 2015, outpacing China`s growth for two out of the last three quarters.
8Expectations for India's growth in 2015 is a rapid 7.5%.
Click here to access the OPEC`s Monthly Oil Market Report Details
A tail gas treating unit will take sulphur recovery to 99.9%
Sulphur Recovery Unit Revamp
8To recover sulphur from sour gas generated from DHT unit, revamp of existing SRU units
will be done using oxygen enrichment technology for SRU.
8Further the Mumbai refinery is implementing a tail gas treating unit (TGTU) at the downstream of the SRU to increase the recovery of sulphur from 99% to 99.9%.
8A heavy duty Gas Turbine Generator (GTG) will be set up for power generation purposes.
Sour Water Stripper Revamp
8Sour water from DHT unit will be treated in existing two stage SWS unit after revamp of the same.
8H2S is stripped off from sour water in first stage column and NH3 is stripped off in second stage column.
8H2S is sent to SRU for Sulphur recovery and NH3 is sent to incinerator stack. The stripped water from two stage stripper is sent separately to DHT.
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Sulphur Recovery Unit Revamp
8To recover sulphur from sour gas generated from DHT unit, revamp of existing SRU units
will be done using oxygen enrichment technology for SRU.
8Further the Mumbai refinery is implementing a tail gas treating unit (TGTU) at the downstream of the SRU to increase the recovery of sulphur from 99% to 99.9%.
8A heavy duty Gas Turbine Generator (GTG) will be set up for power generation purposes.
Sour Water Stripper Revamp
8Sour water from DHT unit will be treated in existing two stage SWS unit after revamp of the same.
8H2S is stripped off from sour water in first stage column and NH3 is stripped off in second stage column.
8H2S is sent to SRU for Sulphur recovery and NH3 is sent to incinerator stack. The stripped water from two stage stripper is sent separately to DHT.
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BPCL-KR is in the midst of a Rs 290 crore tankage expansion spree at Kochi to cope with the expansion in refinery capacity by 6 MMTPA from its existing capacity of 9.5 MMTPA.
8To meet the storage requirements it proposes to construct two additional crude storages with a total 82,300 KL capacity.
8Presently there are 4 crude storage tanks of 82,300 KL capacity at the Shore Tank Farm (STF) and 8 tanks at the refinery with net storage capacity of 287 TMT while one tank of 41 TMT is under mainteneance.
8There are now plans to convert 4 existing crude oil tanks into High Speed Diesel and Naptha storage facilities
8Crude Oil received at the SPM is pumped to shore through a 1200 NB submarine pipeline at rate of 8250 m 3 /hr.
8The Onshore Shore Tank Farm at Puthuvypeen has facilities for receipt, storage and transfer of the crude oil to the Kochi Refinery at a rate of 3150m 3 /hr and then from the STF, crude oil is pumped to the Refinery through a 750 NB cross- ountry pipeline.
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8To meet the storage requirements it proposes to construct two additional crude storages with a total 82,300 KL capacity.
8Presently there are 4 crude storage tanks of 82,300 KL capacity at the Shore Tank Farm (STF) and 8 tanks at the refinery with net storage capacity of 287 TMT while one tank of 41 TMT is under mainteneance.
8There are now plans to convert 4 existing crude oil tanks into High Speed Diesel and Naptha storage facilities
8Crude Oil received at the SPM is pumped to shore through a 1200 NB submarine pipeline at rate of 8250 m 3 /hr.
8The Onshore Shore Tank Farm at Puthuvypeen has facilities for receipt, storage and transfer of the crude oil to the Kochi Refinery at a rate of 3150m 3 /hr and then from the STF, crude oil is pumped to the Refinery through a 750 NB cross- ountry pipeline.
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Maintenance of existing tanks at the Kochi refinery is scheduled in terms of two tanks in 2017, one in 2018 and another in 2019 which makes the net available storage capacity go down to 287 TMT and 165 TMT at the Refinery and th eStorage Tank Farm (STF) respectively in the three years.
8By taking this into account and by constructing two tanks at the STF, crude oil stock availability can be increased by an additional 1.2 days.
8Subsequent to the refinery expansion, the usage of one tank each at the refinery and the STF works out to be 6 days and 3.5 days respectively and hence monthly throughput will be 1400 TMT for which 5x 280 TMT VLCCs are required.
8One VLCC cargo load has to be planned once in 6 days to meet the crude oil requirement of refinery on sustained basis while the refinery would be processing 46.5 TMT of crude oil every day.
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8By taking this into account and by constructing two tanks at the STF, crude oil stock availability can be increased by an additional 1.2 days.
8Subsequent to the refinery expansion, the usage of one tank each at the refinery and the STF works out to be 6 days and 3.5 days respectively and hence monthly throughput will be 1400 TMT for which 5x 280 TMT VLCCs are required.
8One VLCC cargo load has to be planned once in 6 days to meet the crude oil requirement of refinery on sustained basis while the refinery would be processing 46.5 TMT of crude oil every day.
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Power requirements will be met by 2X15 KVA DG Sets, wherein one DG set will be kept as standby for emergency.
8During the drilling phase, about 8 KLD of High Speed Diesel (HSD) will be required, which will be supplied through mobile tankers.
8Major part, about 85% will be consumed by the rig and rest 15% by the campsite, in addition to that 56 KL of excess fuel will be stored at an onsite storage facility as per rules.
8The total projected average consumption of water during the drilling phase of 120 days will be about 3000 KL per well.
8Additionally, there will be other ancillary facilities like drilling mud system, Effluent Treatment Plant (ETP), cuttings disposal and the drill cementing equipments.
8Facilities to supply Power (DG sets), water, fuel (HSD) to the drilling process and will be set up as a part of the project.
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8During the drilling phase, about 8 KLD of High Speed Diesel (HSD) will be required, which will be supplied through mobile tankers.
8Major part, about 85% will be consumed by the rig and rest 15% by the campsite, in addition to that 56 KL of excess fuel will be stored at an onsite storage facility as per rules.
8The total projected average consumption of water during the drilling phase of 120 days will be about 3000 KL per well.
8Additionally, there will be other ancillary facilities like drilling mud system, Effluent Treatment Plant (ETP), cuttings disposal and the drill cementing equipments.
8Facilities to supply Power (DG sets), water, fuel (HSD) to the drilling process and will be set up as a part of the project.
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The major activity carried out at Bharat Petroleum Refinery is refining of Crude oil & it’s separation into various fractions / constituents viz. Gas, LPG, Motor Spirit, Naphtha, Kerosene, Diesel, Fuel Oil, Low Sulphur Heavy Stock, Bitumen.
The processes to sustain these activities can be classified as:
Primary Processing:
Crude distillation unit, Vacuum Distillation Units, Aromatics
Recovery, Continuous Catalytic Reformer.
Secondary Processing:
Catalytic cracking Units, Hydro cracker.
Treatment units:
Diesel Hydro Desulphurization, Naphtha Hydro Desulphurization, SRU,Merox for LPG / Gasoline / ATF.
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The processes to sustain these activities can be classified as:
Primary Processing:
Crude distillation unit, Vacuum Distillation Units, Aromatics
Recovery, Continuous Catalytic Reformer.
Secondary Processing:
Catalytic cracking Units, Hydro cracker.
Treatment units:
Diesel Hydro Desulphurization, Naphtha Hydro Desulphurization, SRU,Merox for LPG / Gasoline / ATF.
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HPCL plans to bring about a sharp increase in hydrogen production -- required to upgrade to BS-IV and V quality fuel -- without using any additional fuel or utility
Revamp of Hydrogen Generation Unit-II
8Hydrogen Plant revamp by the Mumbai refinery will lead to a 30 % increase in hydrogen production, and this will be done by utilizing heat available from the process gas at the Steam Methane Reformer (SMR) outlet for steam reforming in a heat exchanger type of reactor.
8In a parallel combination with SMR, 20 - 30 % of the feed is split and taken to the heat exchanger type of reactor.
8A proportion of heat is utilised in the process side which reduces the steam production from the plant.
8The major advantage of this revamp scheme is increase in hydrogen production without any increase of Fuel / Utility consumption.
Amine Regeneration Unit
8The unit will remove the acid gases (H2S and CO2) from the rich amine streams produced in the refinery processing units.
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Revamp of Hydrogen Generation Unit-II
8Hydrogen Plant revamp by the Mumbai refinery will lead to a 30 % increase in hydrogen production, and this will be done by utilizing heat available from the process gas at the Steam Methane Reformer (SMR) outlet for steam reforming in a heat exchanger type of reactor.
8In a parallel combination with SMR, 20 - 30 % of the feed is split and taken to the heat exchanger type of reactor.
8A proportion of heat is utilised in the process side which reduces the steam production from the plant.
8The major advantage of this revamp scheme is increase in hydrogen production without any increase of Fuel / Utility consumption.
Amine Regeneration Unit
8The unit will remove the acid gases (H2S and CO2) from the rich amine streams produced in the refinery processing units.
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BPCL`s Mumbai refinery will end up spending a whopping Rs 2368 crore in 2.6 MMTPA Diesel Hydrotrater Unit (DHT) just so that it an meet the government`s mandate of producing 100% BS-IV HSD from April 1, 2017.
8The company has an installed capacity of 12 MMTPA and it plans to remove impurities such as sulphur, nitrogen and trace metals from the feedstocks by hydrogen reaction at high pressure and high temperature to meet the BS-IV/V specification for HSD.
8The DHT would also facilitate MR in meeting proposed BS- V Auto Fuel mandates w.e.f. 1st April 2020.
8In the absence of the DHT Unit, the Mumbai refinery would be capable of producing only 3.5 MMTPA of BS-IV HSD and the balance HSD, to the extent of 2.4 MMTPA, will be of BS-III quality.
8This would entail export of 2.4 MMTPA BS-III HSD and simultaneous import of an equivalent quantity of BS-IV HSD to meet the requirements.
8The combined handling of 4.8 MMTPA of HSD will also require the use of infrastructure facilities on a massive scale that is not available at the port.
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8The company has an installed capacity of 12 MMTPA and it plans to remove impurities such as sulphur, nitrogen and trace metals from the feedstocks by hydrogen reaction at high pressure and high temperature to meet the BS-IV/V specification for HSD.
8The DHT would also facilitate MR in meeting proposed BS- V Auto Fuel mandates w.e.f. 1st April 2020.
8In the absence of the DHT Unit, the Mumbai refinery would be capable of producing only 3.5 MMTPA of BS-IV HSD and the balance HSD, to the extent of 2.4 MMTPA, will be of BS-III quality.
8This would entail export of 2.4 MMTPA BS-III HSD and simultaneous import of an equivalent quantity of BS-IV HSD to meet the requirements.
8The combined handling of 4.8 MMTPA of HSD will also require the use of infrastructure facilities on a massive scale that is not available at the port.
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The work on Reliance Gas Pipelines Limited's (RGPL) Shahdol-Phulpur gas pipeline is expected to be completed ahead of schedule.
8The PNGRB had granted authorization for the pipeline in July 2013, to be completed within 36 months, that is, by July 2016. However, the project has already achieved an overall progress of 72%.
8RIL is fully geared up for completing the pipeline work by second half of FY 2015-16, so that it can coincide with the first CBM gas coming from the company's twin Sohagpur blocks -- Sohagpur East and West -- in Madhya Pradesh.
8Land acquisition has been completed for all critical installations. Right to Use (RoU) for 261 km out of 302 km is handed over to pipeline construction contractors.
8Basic engineering (FEED) and detailed engineering have been completed and ordering for all long-lead and other items has been completed.
8The company has been authorized to lay the 312 km long pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh. The pipeline will travel from Shahdol to Jaysing Nagar to Beohari to Gurh and finally culminate at Phulpur. At Phulpur, the pipeline will be hooked into the GAIL's main Hazira-Vijaypur-Jagdishpur trunk gas pipeline.
8The pipeline will have a capacity to transport 3.5 million standard cubic metres per day (MMSCMD) of gas. The pipeline will also have an extra capacity of 0.875 MMSCMD which will be available for use as a common carrier by any third party on an open access and a non-discriminatory basis.
8Notably, RIL plans to produce 3.5 MMSCMD of gas from its Sohagpur (East) and Sohagpur (West) CBM blocks in Madhya Pradesh from 2015-16 onwards. Details
8The PNGRB had granted authorization for the pipeline in July 2013, to be completed within 36 months, that is, by July 2016. However, the project has already achieved an overall progress of 72%.
8RIL is fully geared up for completing the pipeline work by second half of FY 2015-16, so that it can coincide with the first CBM gas coming from the company's twin Sohagpur blocks -- Sohagpur East and West -- in Madhya Pradesh.
8Land acquisition has been completed for all critical installations. Right to Use (RoU) for 261 km out of 302 km is handed over to pipeline construction contractors.
8Basic engineering (FEED) and detailed engineering have been completed and ordering for all long-lead and other items has been completed.
8The company has been authorized to lay the 312 km long pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh. The pipeline will travel from Shahdol to Jaysing Nagar to Beohari to Gurh and finally culminate at Phulpur. At Phulpur, the pipeline will be hooked into the GAIL's main Hazira-Vijaypur-Jagdishpur trunk gas pipeline.
8The pipeline will have a capacity to transport 3.5 million standard cubic metres per day (MMSCMD) of gas. The pipeline will also have an extra capacity of 0.875 MMSCMD which will be available for use as a common carrier by any third party on an open access and a non-discriminatory basis.
8Notably, RIL plans to produce 3.5 MMSCMD of gas from its Sohagpur (East) and Sohagpur (West) CBM blocks in Madhya Pradesh from 2015-16 onwards. Details
ONGC will be drilling a total of 72 additional development wells in its two PML blocks -- Godavari Onland and West Godavari -- in Andhra Pradesh at a cost of Rs 792 crore.
8The development locations have been firmed up for drilling to enhance oil and gas production from existing reservoirs and increase the recovery factor from the existing established oil and gas fields.
8These 72 wells are over and above the 40 development drilling wells for which environment clearance has already been granted.
8Of the total additional 72 wells, 56 are in the Godawari Onland block, while the remaining 16 blocks are in the West Godawari PML block.
8The E&P major will deploy self-owned electrical type rigs for drilling in the two contract areas.
8Each well is expected to take around 2-3 month for drilling.
8Once the drilling operations are completed, the wells will be tested by perforation in the production casing which will normally takes 2-3 days.
8After this, the wells will be connected to production installation and put on regular production.
8It is pertinent to note that ONGC has already invited quotations for Rate Contracts (RC) for carrying out surveys for laying of flow lines of different sizes in the two PML blocks in the East Godawari, West Godawari and Krishna districts of Andhra Pradesh. The last date for submission of bids is July 14, 2015 (14:00 hrs).
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8The development locations have been firmed up for drilling to enhance oil and gas production from existing reservoirs and increase the recovery factor from the existing established oil and gas fields.
8These 72 wells are over and above the 40 development drilling wells for which environment clearance has already been granted.
8Of the total additional 72 wells, 56 are in the Godawari Onland block, while the remaining 16 blocks are in the West Godawari PML block.
8The E&P major will deploy self-owned electrical type rigs for drilling in the two contract areas.
8Each well is expected to take around 2-3 month for drilling.
8Once the drilling operations are completed, the wells will be tested by perforation in the production casing which will normally takes 2-3 days.
8After this, the wells will be connected to production installation and put on regular production.
8It is pertinent to note that ONGC has already invited quotations for Rate Contracts (RC) for carrying out surveys for laying of flow lines of different sizes in the two PML blocks in the East Godawari, West Godawari and Krishna districts of Andhra Pradesh. The last date for submission of bids is July 14, 2015 (14:00 hrs).
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The field-wise proposed development drilling locations are:
8Godavari Onland PML block: (Total 56 wells)
--Mandapeta: 12 wells
--Kesanapalli West: 12 wells
--Pasarlapudi: 8 wells
--South Pasarlapudi: 4 wells
--Ravulapalem: 4 wells
--Koravaka: 2 wells
--Geddanapalli: 2 wells
--Mukkamala: 2 wells
--East Rangapuram: 2 wells
--Elamanchili: 2 wells
--Bantumilli South: 6 wells
8West Godavari PML block: (16 wells)
--Suryaraopeta: 2 wells
--Malleswaram: 12 wells
--Vanadurru South: 2 wells
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8Godavari Onland PML block: (Total 56 wells)
--Mandapeta: 12 wells
--Kesanapalli West: 12 wells
--Pasarlapudi: 8 wells
--South Pasarlapudi: 4 wells
--Ravulapalem: 4 wells
--Koravaka: 2 wells
--Geddanapalli: 2 wells
--Mukkamala: 2 wells
--East Rangapuram: 2 wells
--Elamanchili: 2 wells
--Bantumilli South: 6 wells
8West Godavari PML block: (16 wells)
--Suryaraopeta: 2 wells
--Malleswaram: 12 wells
--Vanadurru South: 2 wells
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GSPL India Gasnet Limited's (GIGL) two gas pipelines -- Mehsana-Bathinda and Bhatinda-Jammu-Srinagar -- have already missed their completion targets and are nowhere near completion even after one year of missing their deadline.
8Both the pipelines were originally scheduled to be completed by July 6, 2014.
8Recently, the J&K Minister for CA&PD, Ch. Zulfkar Ali met representatives of GSPL to discuss various issues regarding the implementation of the Mehsana-Bhatinda-Srinagar Gas Pipeline Project.
8Ali called for expediting work on the Bhatinda-Srinagar stretch of the gas pipeline as Kashmir Valley remains mostly cutoff from rest of the country during winter season due to heavy snowfall and road blockades.
8However, there was no commitment from GSPL on how much time it needed to complete the project.
8The Mehsana-Bathinda trunkline (MBPL) is a 36-inch diameter pipeline having various spur lines along the route, accounting to a total of approximately 1,650 kms. The pipeline will traverse through Gujarat (47kms), Rajasthan (1334kms), Haryana (200 kms) and Punjab (66 kms).
8The Bathinda-Jammu-Srinagar Pipeline (BJSPL), with a 24-inch diameter, will be having various spur lines along the route, accounting for about 750 kms. MBPL will traverse through Punjab (450 kms) and J&K (300 kms). Details
8Both the pipelines were originally scheduled to be completed by July 6, 2014.
8Recently, the J&K Minister for CA&PD, Ch. Zulfkar Ali met representatives of GSPL to discuss various issues regarding the implementation of the Mehsana-Bhatinda-Srinagar Gas Pipeline Project.
8Ali called for expediting work on the Bhatinda-Srinagar stretch of the gas pipeline as Kashmir Valley remains mostly cutoff from rest of the country during winter season due to heavy snowfall and road blockades.
8However, there was no commitment from GSPL on how much time it needed to complete the project.
8The Mehsana-Bathinda trunkline (MBPL) is a 36-inch diameter pipeline having various spur lines along the route, accounting to a total of approximately 1,650 kms. The pipeline will traverse through Gujarat (47kms), Rajasthan (1334kms), Haryana (200 kms) and Punjab (66 kms).
8The Bathinda-Jammu-Srinagar Pipeline (BJSPL), with a 24-inch diameter, will be having various spur lines along the route, accounting for about 750 kms. MBPL will traverse through Punjab (450 kms) and J&K (300 kms). Details
Iranian exports have failed to reach export levels that existed before the latest sanctions, according to the U.S Energy Information Administration (EIA).
8Iran's crude oil and condensate exports started increasing in late 2013 and averaged 1.4 million b/d in 2014, almost 150,000 b/d above the 2013 level, according to the EIA. And most of the increase came from exports to China and India.
8Iran's exports of crude oil and condensate dropped from 2.6 million b/d in 2011 to almost 1.3 million b/d in 2013 as a result of the US and European Union sanctions that targeted Iran's oil exports.
8The largest buyers of Iranian crude and condensate are China, India, Japan, South Korea, and Turkey.
8Iran's crude oil and condensate exports averaged 1.4 million b/d in 2014, 1.2 million b/d less than the volume exported in 2011 but almost 150,000 b/d above the 2013 export level.
China and India accounted for nearly all of the year-over-year increase.
8Iran's ability to sell oil was substantially impeded by new sanctions -- ban on all Iranian petroleum imports as well as the imposition of insurance and reinsurance bans -- imposed by the United States and the European Union, that went into effect in 2012.
8European insurers underwrite the majority of insurance policies for the global tanker fleet. The insurance ban particularly affected Iranian oil exports, as lack of adequate insurance impeded the sales of Iranian crude to all of its customers, including those in Asia. Iranian exports dropped to about 1.0 million b/d in July 2012 as Japanese, Chinese, South Korean, and Indian buyers scrambled to find insurance alternatives.
8Though China and India have began to accept the Iranian Kish P&I Club guarantee on vessels that shipped oil to its refineries, Iranian exports have failed to reach export levels that existed before the latest sanctions. Details
8Iran's crude oil and condensate exports started increasing in late 2013 and averaged 1.4 million b/d in 2014, almost 150,000 b/d above the 2013 level, according to the EIA. And most of the increase came from exports to China and India.
8Iran's exports of crude oil and condensate dropped from 2.6 million b/d in 2011 to almost 1.3 million b/d in 2013 as a result of the US and European Union sanctions that targeted Iran's oil exports.
8The largest buyers of Iranian crude and condensate are China, India, Japan, South Korea, and Turkey.
8Iran's crude oil and condensate exports averaged 1.4 million b/d in 2014, 1.2 million b/d less than the volume exported in 2011 but almost 150,000 b/d above the 2013 export level.
China and India accounted for nearly all of the year-over-year increase.
8Iran's ability to sell oil was substantially impeded by new sanctions -- ban on all Iranian petroleum imports as well as the imposition of insurance and reinsurance bans -- imposed by the United States and the European Union, that went into effect in 2012.
8European insurers underwrite the majority of insurance policies for the global tanker fleet. The insurance ban particularly affected Iranian oil exports, as lack of adequate insurance impeded the sales of Iranian crude to all of its customers, including those in Asia. Iranian exports dropped to about 1.0 million b/d in July 2012 as Japanese, Chinese, South Korean, and Indian buyers scrambled to find insurance alternatives.
8Though China and India have began to accept the Iranian Kish P&I Club guarantee on vessels that shipped oil to its refineries, Iranian exports have failed to reach export levels that existed before the latest sanctions. Details
ONGC, lone operator of the Vindhyan basin block in Madhya Pradesh (also known as VN-ONN-2009/3), has chalked out a Rs 160 crore plan for four exploratory wells in the midst of habited villages.
8The entire block falls in the Damoh and Chhatarpur districts of Madhya Pradesh and as the drilling will be proposed on agricultural land, ONGC says it will ensure proper restoration of temporarily acquired sites to avoid any impact on crop productivity.
8Out of 4 wells, location of one well “R-HAT-A” in the Luhari village has been finalized based on seismic data while three other locations are tentative.
8The drilling will be to a depth of 2800 m.
8This block was awarded to ONGC in the NELP- VIII with 100% equity participation.
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8The entire block falls in the Damoh and Chhatarpur districts of Madhya Pradesh and as the drilling will be proposed on agricultural land, ONGC says it will ensure proper restoration of temporarily acquired sites to avoid any impact on crop productivity.
8Out of 4 wells, location of one well “R-HAT-A” in the Luhari village has been finalized based on seismic data while three other locations are tentative.
8The drilling will be to a depth of 2800 m.
8This block was awarded to ONGC in the NELP- VIII with 100% equity participation.
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8UP Singh assumes additional charge of OIL CMD: OIL has informed the BSE that on the orders of the petroleum ministry, UP Singh, Joint Secretary (Exploration), MOP&NG has assumed the additional charge of Chairman & Managing Director, (CMD) of the company with effect from July 1, 2015.
--The petroleum ministry has issued the order on June 30, 2015.
--SK Srivastava has ceased to be the CMD of the company pursuant to his superannuation on June 30, 2015 (after closing of working hours).
8Khuntia resigns as ONGC Director: ONGC has informed the BSE that consequent upon taking over charge as Secretary, Department of School Education & Literacy, Ministry of HRD, Dr. Subhash Chandra Khuntia, has submitted his resignation from the Directorship of ONGC.
--Before this, Khuntia had also resigned from the Board of HPCL and IOC, with effect from June 16, 2015, for the same reason.
8ONGC Company Secretary NK Sinha relinquishes office: ONGC, Company Secretary, NK Sinha, has relinquished the office of Company Secretary, on his superannuation, on attaining the age of retirement at the close of working hours on June 30, 2015. Details
--The petroleum ministry has issued the order on June 30, 2015.
--SK Srivastava has ceased to be the CMD of the company pursuant to his superannuation on June 30, 2015 (after closing of working hours).
8Khuntia resigns as ONGC Director: ONGC has informed the BSE that consequent upon taking over charge as Secretary, Department of School Education & Literacy, Ministry of HRD, Dr. Subhash Chandra Khuntia, has submitted his resignation from the Directorship of ONGC.
--Before this, Khuntia had also resigned from the Board of HPCL and IOC, with effect from June 16, 2015, for the same reason.
8ONGC Company Secretary NK Sinha relinquishes office: ONGC, Company Secretary, NK Sinha, has relinquished the office of Company Secretary, on his superannuation, on attaining the age of retirement at the close of working hours on June 30, 2015. Details
OIL has decided to hire two work-over rigs for deployment in its Assam and Arunachal Pradesh areas.
8As per OIL's terms and conditions, the horsepower rating of the rigs offered should be between 500 HP (Minimum)-750 HP (Maximum).
8The rig will be put into operation for a period of three years.
8The well depths are expected to be in the depth range of 2500-6000 metres.
8The two rigs will have to be mobilized within 120 days from the date of issue of the LOA.
8The bidder must have at least two years experience of providing drilling and work-over services to oil companies with a charter hired rig in the last seven years.
8A tender has already been floated for hiring of the rigs and the last date for submission of offers is July 7, 2015 (11.00 hrs).
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8As per OIL's terms and conditions, the horsepower rating of the rigs offered should be between 500 HP (Minimum)-750 HP (Maximum).
8The rig will be put into operation for a period of three years.
8The well depths are expected to be in the depth range of 2500-6000 metres.
8The two rigs will have to be mobilized within 120 days from the date of issue of the LOA.
8The bidder must have at least two years experience of providing drilling and work-over services to oil companies with a charter hired rig in the last seven years.
8A tender has already been floated for hiring of the rigs and the last date for submission of offers is July 7, 2015 (11.00 hrs).
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The website carries here, for reference purposes, a complete copy of the judgment by the Supreme Court in the case between IGL and PNGRB.
8A two-judge bench, comprising Justices Dipak Misra and Uday Umesh Lalit said that the PNGRB has not been conferred the power to fix any component of Network Tariff or Compression Charge as per Section 11 of the Act. That is the legislative intent.
8"Section 61 enables the Board to frame Regulations to carry out the purposes of the Act and certain specific aspects have been mentioned therein. Section 61 has to be read in the context of the statutory scheme. The regulatory provisions, needless to say, are to be read and applied keeping in view the nature and textual context of the enactment as that is the source of power. On a scanning of the entire Act and applying various principles, we find that the Act does not confer any such power on the Board and the expression “subject to” used in Section 22 makes it a conditional one. It has to yield to other provisions of the Act," said the court.
8The Court further said that "the power to fix the tariff has not been given to the Board. In view of that the Board cannot frame a Regulation which will cover the area pertaining to determination of network tariff for city or local gas distribution network and compression charge for CNG. As the entire Regulation centres around the said subject, the said Regulation deserves to be declared ultra vires, and we do so."
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8A two-judge bench, comprising Justices Dipak Misra and Uday Umesh Lalit said that the PNGRB has not been conferred the power to fix any component of Network Tariff or Compression Charge as per Section 11 of the Act. That is the legislative intent.
8"Section 61 enables the Board to frame Regulations to carry out the purposes of the Act and certain specific aspects have been mentioned therein. Section 61 has to be read in the context of the statutory scheme. The regulatory provisions, needless to say, are to be read and applied keeping in view the nature and textual context of the enactment as that is the source of power. On a scanning of the entire Act and applying various principles, we find that the Act does not confer any such power on the Board and the expression “subject to” used in Section 22 makes it a conditional one. It has to yield to other provisions of the Act," said the court.
8The Court further said that "the power to fix the tariff has not been given to the Board. In view of that the Board cannot frame a Regulation which will cover the area pertaining to determination of network tariff for city or local gas distribution network and compression charge for CNG. As the entire Regulation centres around the said subject, the said Regulation deserves to be declared ultra vires, and we do so."
Click here for a full copy of the Judgment Details
HMEL, a JV between HPCL and Mittal Energy Investment Pte Ltd, is planning to invest Rs. 2160 crore in its Guru Gobind Singh Refinery at Bathinda, Punjab.
8The existing facility is designed to process 9 MMTPA blended crude which is mainly sourced from the Middle East and is received at the Mundra port in Gujarat and transported through a pipeline.
8As part of De-bottlenecking project, the company is planning to enhance crude processing capacity from 9 MMTPA to 11.25 MMTPA.
8The expansion will include installation of Bitumen Blowing Unit (BBU) of capacity 0.52MMTPA
8Along with this, the augmentation of necessary utilities such as cooling towers, boilers and DM plant will also take place
8Any shortfall in power requirement will be met through the grid. Two new CFBC boiler (each of 300 TPH) capacities shall be installed.
8Power requirement of 12 MW for CFBC boilers shall be catered to from the PSEB grid.
8An additional identical cell and pump in the FCC-PC cooling water system will be installed.
8A crude storage tank of 60000 m3 will be required along with other storages for operational flexibility.
8Lastly, augmentation of the Sulphur Recovery Unit will also be undertaken
8The proposed expansion activities will take place within the existing refinery area and no additional land will be acquired.
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8The existing facility is designed to process 9 MMTPA blended crude which is mainly sourced from the Middle East and is received at the Mundra port in Gujarat and transported through a pipeline.
8As part of De-bottlenecking project, the company is planning to enhance crude processing capacity from 9 MMTPA to 11.25 MMTPA.
8The expansion will include installation of Bitumen Blowing Unit (BBU) of capacity 0.52MMTPA
8Along with this, the augmentation of necessary utilities such as cooling towers, boilers and DM plant will also take place
8Any shortfall in power requirement will be met through the grid. Two new CFBC boiler (each of 300 TPH) capacities shall be installed.
8Power requirement of 12 MW for CFBC boilers shall be catered to from the PSEB grid.
8An additional identical cell and pump in the FCC-PC cooling water system will be installed.
8A crude storage tank of 60000 m3 will be required along with other storages for operational flexibility.
8Lastly, augmentation of the Sulphur Recovery Unit will also be undertaken
8The proposed expansion activities will take place within the existing refinery area and no additional land will be acquired.
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The proposed sulfur recovery unit is similar to that of the existing two trains. The third train is designed to process 12077 Nm3/hr of gas with 319 T/day of H2S.
8Designed elemental sulfur production capacity of the third train will be 300 T/day.
8Total sulfur recovery from the 11.25 MMTPA crude process refinery will be 681 T/day* (225000 T/year).
8The recovered sulfur will be stored in the existing storage facilities for further sale to various end users.
8A new Sulphur Palletizer unit will be installed near the SRU to convert liquid sulphur into sulphur pallets for dispatch.
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8Designed elemental sulfur production capacity of the third train will be 300 T/day.
8Total sulfur recovery from the 11.25 MMTPA crude process refinery will be 681 T/day* (225000 T/year).
8The recovered sulfur will be stored in the existing storage facilities for further sale to various end users.
8A new Sulphur Palletizer unit will be installed near the SRU to convert liquid sulphur into sulphur pallets for dispatch.
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HMEL also seeks to improve its profitability by producing Bitumen through a new bitumen blowing unit.
8It has been proposed to install a dedicated incinerator for the Bitumen Blowing Unit to control the Volatile Organic Carbon emissions from the blowing operations.
8The feedstock for BBU is the Vacuum Residue from the CDU/VDU, along with flux components like VGO to achieve the targeted product quality.
8The BBU will consist of a Biturox reactor, air blowers, and incinerator with stack.
8Bitumen Blowing involves the oxidation of flux by bubbling air through liquid flux at 260°C for 1 to 10 hours.
8The bitumen reaction is calorific, so in order to prevent an explosion, resulting from the temperature increasing suddenly, the temperature will be controlled by water injection, or by a burner extinguisher as well as through "air amount reducing".
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8It has been proposed to install a dedicated incinerator for the Bitumen Blowing Unit to control the Volatile Organic Carbon emissions from the blowing operations.
8The feedstock for BBU is the Vacuum Residue from the CDU/VDU, along with flux components like VGO to achieve the targeted product quality.
8The BBU will consist of a Biturox reactor, air blowers, and incinerator with stack.
8Bitumen Blowing involves the oxidation of flux by bubbling air through liquid flux at 260°C for 1 to 10 hours.
8The bitumen reaction is calorific, so in order to prevent an explosion, resulting from the temperature increasing suddenly, the temperature will be controlled by water injection, or by a burner extinguisher as well as through "air amount reducing".
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The website carries here the fugitive emission management plan, involving leak detection and repair at the Bathinda refinery.
It contains the following:
--Introduction
--Necessity of Hydrocarbon leak Detection
--Scope of work
--Details on Leak Detection and Repair Program( LDAR)
--Source Inventory
--Instruments
--Calibration and Technical Description for 2020ComboPRO
--Methodology used
--Fugitive Emission Survey
--Component wise VOC Emission Survey
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It contains the following:
--Introduction
--Necessity of Hydrocarbon leak Detection
--Scope of work
--Details on Leak Detection and Repair Program( LDAR)
--Source Inventory
--Instruments
--Calibration and Technical Description for 2020ComboPRO
--Methodology used
--Fugitive Emission Survey
--Component wise VOC Emission Survey
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The refinery configuration consists of the following main units:
8Crude and Vacuum Distillation Unit (CDU/VDU),
8VGO Hydro treating Unit (VGOHT) ,
8Naphtha Hydro treating unit(NHT) ,
8Isomerization Unit (ISOM),
8Continuous Catalyst Regeneration Unit (CCR),
8Diesel Hydro treating unit (DHT),
8Fluidized Cracking Unit – Petrochemical (FCC-PC Unit),
8Delayed Coker Unit (DCU),
8Poly Propylene Unit (PPU)
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8Crude and Vacuum Distillation Unit (CDU/VDU),
8VGO Hydro treating Unit (VGOHT) ,
8Naphtha Hydro treating unit(NHT) ,
8Isomerization Unit (ISOM),
8Continuous Catalyst Regeneration Unit (CCR),
8Diesel Hydro treating unit (DHT),
8Fluidized Cracking Unit – Petrochemical (FCC-PC Unit),
8Delayed Coker Unit (DCU),
8Poly Propylene Unit (PPU)
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Heramec Ltd has been permitted to drill four more development wells in its Cambay Basin field (Kanwara field) in Gujarat. These will be over and above the two existing wells, Kanawara#2 & Kanawara#3, in the field.
8Wells will be drilled to a depth of between 1650m to 1750m. It would typically take 25-30 days to complete each well.
8The power requirement of the drilling rig will be met by using the Diesel Generator (DG) sets (2 DG sets of 750-1000 HP, with one set working as a stand by) consuming 150 lit/hr of HSD.
8In addition to that a 80 HP DG set will be used for lighting during night ~20 lts /hr of HSD will be consumed for lighting purposes.
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8Wells will be drilled to a depth of between 1650m to 1750m. It would typically take 25-30 days to complete each well.
8The power requirement of the drilling rig will be met by using the Diesel Generator (DG) sets (2 DG sets of 750-1000 HP, with one set working as a stand by) consuming 150 lit/hr of HSD.
8In addition to that a 80 HP DG set will be used for lighting during night ~20 lts /hr of HSD will be consumed for lighting purposes.
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Bharat PetroResource Limited, the lead operator of the CB-ONN-2010/8 on-land block in the Cambay basin (Gujarat), has received permission to go ahead with a $26 million exploratory drilling plan recently.
8As lead operator of the block, BPRL has to undertake the committed minimum work plan (MWP) as per the Production Sharing Contract.
8The activities of committed minimum work program (MWP) are mainly acquisition, processing and interpretation of 2D/3D seismic, drilling of the wells and related work.
8A total of 8 Exploratory drilling wells are proposed to be drilled within the block boundaries, covering an area of 42 sq km.
8BPRL is the Lead Operator with 25% Participating Interest (PI) and the other consortium partners are, GAIL- 25% PI, EIL- 20% PI, BF Infrastructure Ltd. - 20% PI and Monnet Ispat & Energy Ltd. - 10% PI.
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8As lead operator of the block, BPRL has to undertake the committed minimum work plan (MWP) as per the Production Sharing Contract.
8The activities of committed minimum work program (MWP) are mainly acquisition, processing and interpretation of 2D/3D seismic, drilling of the wells and related work.
8A total of 8 Exploratory drilling wells are proposed to be drilled within the block boundaries, covering an area of 42 sq km.
8BPRL is the Lead Operator with 25% Participating Interest (PI) and the other consortium partners are, GAIL- 25% PI, EIL- 20% PI, BF Infrastructure Ltd. - 20% PI and Monnet Ispat & Energy Ltd. - 10% PI.
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The company's drilling programme is based on a 3D seismic survey that showed hydrocarbons in that region.
8BPRL now plans to drill the 8 exploration wells to determine the presence of hydrocarbon in the geological formation at depths between 1800 and 3500 metres.
8Estimated drilling and testing period for each well will be 60 days and 25 days respectively.
8Proposed drilling fluid is a water based mud system with water requirement of 35 KLD.
8Drilling with a 1200-1500 HP rig, and the site will require two 4X500KVA and 1x100 KVA DG sets as back up.
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8BPRL now plans to drill the 8 exploration wells to determine the presence of hydrocarbon in the geological formation at depths between 1800 and 3500 metres.
8Estimated drilling and testing period for each well will be 60 days and 25 days respectively.
8Proposed drilling fluid is a water based mud system with water requirement of 35 KLD.
8Drilling with a 1200-1500 HP rig, and the site will require two 4X500KVA and 1x100 KVA DG sets as back up.
Click here the our Reports section for more Details
India Ratings and Research (Ind-Ra) feels that the current judgment is unlikely to change existing CNG and PNG tariffs as CGD entities were charging tariffs based on alternate fuels and not on Petroleum & Natural Gas Regulatory Board’s (PNGRB) ruling.
8However, CGD entities might strive for somewhat higher EBITDA margin over the long-term, given the pricing control post the ruling, leading to slightly higher consumer tariffs.
8The current Supreme Court ruling is the final outcome of a legal process which was set in motion in 2010, when PNGRB did not approve a compression charge of Rs 6.66/kg and and network tariff of Rs 104.05/mmbtu proposed by Indraprashtha Gas Limited (IGL).
8The PNGRB in its order asked IGL to cut down its network tariff by 63%. The regulatory board approved a significantly lower compression charge of Rs 2.75/kg (from the proposed Rs 6.66/kg) and a network tariff of Rs 38.58/mmbtu (from proposed Rs 104.05/mmbtu).
8In a retrospective decision, the PNGRB also asked the company to refund the difference to its customers for the period from April 1, 2008, till the date of issuance of order.
8The Delhi High Court ruled against the PNGRB’s order stating that there were no statutory provisions that allowed PNGRB to fix any component of Network Tariff or Compression Charge for any entity like IGL having its own distribution network.
8Subsequently, the PNGRB filed a Special Leave Petition (SLP) in the Supreme Court challenging the order of the Delhi High Court. Details
8However, CGD entities might strive for somewhat higher EBITDA margin over the long-term, given the pricing control post the ruling, leading to slightly higher consumer tariffs.
8The current Supreme Court ruling is the final outcome of a legal process which was set in motion in 2010, when PNGRB did not approve a compression charge of Rs 6.66/kg and and network tariff of Rs 104.05/mmbtu proposed by Indraprashtha Gas Limited (IGL).
8The PNGRB in its order asked IGL to cut down its network tariff by 63%. The regulatory board approved a significantly lower compression charge of Rs 2.75/kg (from the proposed Rs 6.66/kg) and a network tariff of Rs 38.58/mmbtu (from proposed Rs 104.05/mmbtu).
8In a retrospective decision, the PNGRB also asked the company to refund the difference to its customers for the period from April 1, 2008, till the date of issuance of order.
8The Delhi High Court ruled against the PNGRB’s order stating that there were no statutory provisions that allowed PNGRB to fix any component of Network Tariff or Compression Charge for any entity like IGL having its own distribution network.
8Subsequently, the PNGRB filed a Special Leave Petition (SLP) in the Supreme Court challenging the order of the Delhi High Court. Details
India Ratings and Research (Ind-Ra) expects a significant increase in investments in the city gas distribution (CGD) sector over the next three to four years, pursuant to the Supreme Court of India’s judgment allowing asset-owning CGD companies to freely price their products.
8Given the pricing flexibility that CGD entities would now have, Ind-Ra estimates that for every Re1/scm increase in EBITDA margin, CGD entities could see a 5%-6% increase in their return on capital employed.
8Fresh investments would also be aided by the highest priority being accorded to the compressed natural gas (CNG) and domestic piped natural gas (PNG) categories of CGD since January 2014, in the domestic natural gas allocation. Operators had been going slow in new investments since 2010 due to the regulatory uncertainty with respect to pricing.
8The sector would be free of pricing risk which could have emerged earlier from an unfavourable regulatory stance. Details
8Given the pricing flexibility that CGD entities would now have, Ind-Ra estimates that for every Re1/scm increase in EBITDA margin, CGD entities could see a 5%-6% increase in their return on capital employed.
8Fresh investments would also be aided by the highest priority being accorded to the compressed natural gas (CNG) and domestic piped natural gas (PNG) categories of CGD since January 2014, in the domestic natural gas allocation. Operators had been going slow in new investments since 2010 due to the regulatory uncertainty with respect to pricing.
8The sector would be free of pricing risk which could have emerged earlier from an unfavourable regulatory stance. Details
Though it is often believed that the power to price gas freely could result in super-normal returns for CGD companies, given that most of these companies are usually monopolies in their respective areas of operations, there is no such threat, feels Ind-Ra.
8The ratings agency is of the view that the consumer’s ability to switch to alternate fuels (diesel in case of CNG and LPG in case of domestic PNG) would act as a market check on earning super-normal returns.
8The major pricing risk CGD entities would now face is to pass on changes in domestic gas prices and foreign exchange risk to end consumers through price revisions and relative competitiveness of alternate fuels.
8After the apex court ruling, the shares of IGL surged over 16% (intraday) yesterday (July 1, 2015). Details
8The ratings agency is of the view that the consumer’s ability to switch to alternate fuels (diesel in case of CNG and LPG in case of domestic PNG) would act as a market check on earning super-normal returns.
8The major pricing risk CGD entities would now face is to pass on changes in domestic gas prices and foreign exchange risk to end consumers through price revisions and relative competitiveness of alternate fuels.
8After the apex court ruling, the shares of IGL surged over 16% (intraday) yesterday (July 1, 2015). Details
The landmark verdict of the Supreme Court allowing companies supplying gas to fix their own tariffis is bound to be a big boost for the entire City Gas Distribution (CGD) sector in the country, feels IGL Managing Director, Narendra Kumar.
8Kumar is of the view that the entire CGD sector would now be looking at expansions in mission mode as per the vision of the government. The country`s CGD market offers huge growth opportunities as expansion of CGD network in India is among the top-most priorities of the government. The PNGRB has plans to expand CGD network in 300 geographical locations around the country over the next few years.
8Currently, CGD market in India is majorly dominated by the transportation sector on account of growing environmental concern among consumers coupled with increase in the number of CNG vehicles. Moreover, PNG segment is projected to grow at around 7% through 2030 due to anticipated advancements in CGD sector and increasing government focus to expand PNG network throughout the country.
8The Narendra Modi government`s target of providing piped gas to one crore households in four years will give added impetus to CGD networks.
8But will there be enough gas available? Keeping in mind the fact that the domestic gas production has dipped below 90 MMSCMD from 130 MMSCMD in 2009-2010, one thing is sure that the shortfall can be met only through imported LNG. The right mix of imported LNG and domestic gas has to be arrived at to make PNG available to one crore households. In other words, it looks like CGD projects are going to work only if domestic gas is added to the mix.
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8Kumar is of the view that the entire CGD sector would now be looking at expansions in mission mode as per the vision of the government. The country`s CGD market offers huge growth opportunities as expansion of CGD network in India is among the top-most priorities of the government. The PNGRB has plans to expand CGD network in 300 geographical locations around the country over the next few years.
8Currently, CGD market in India is majorly dominated by the transportation sector on account of growing environmental concern among consumers coupled with increase in the number of CNG vehicles. Moreover, PNG segment is projected to grow at around 7% through 2030 due to anticipated advancements in CGD sector and increasing government focus to expand PNG network throughout the country.
8The Narendra Modi government`s target of providing piped gas to one crore households in four years will give added impetus to CGD networks.
8But will there be enough gas available? Keeping in mind the fact that the domestic gas production has dipped below 90 MMSCMD from 130 MMSCMD in 2009-2010, one thing is sure that the shortfall can be met only through imported LNG. The right mix of imported LNG and domestic gas has to be arrived at to make PNG available to one crore households. In other words, it looks like CGD projects are going to work only if domestic gas is added to the mix.
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OIL wants a 24-bit state-of-the-art seismic data acquisition system (cable or cableless) to be deployed for acquisition of the 2360 LKM of 2D seismic data.
8The objective of the proposed survey covering parts of Assam and Arunachal Pradesh is to identify strati-structural prospects in the area and imaging of tertiary sediments and fractured basement prospects.
8The oilfields, discovered so far, in the region are situated mainly in the areas south and southeast of the Brahmaputra River and a few in the thrust belts, associated with Naga-Patkai hills.
8However, the area to the north of the Brahmaputra River up to the Eastern Himalayan foothills has remained poorly explored.
8Keeping in mind the expected surface, near surface and subsurface complexities, the contractor will have to resort to terrain specific shot hole drilling technology so that it can drill to the depth specified in the shot hole drilling matrix.
8The bidder must have successfully executed at least one or multiple contracts of 2D/3D seismic data acquisition with a minimum cumulative volume of 1000 LKM of seismic data in the last five years.
8The data will have to be acquired within a period of 23 months. Taking into consideration a mobilization of 90 days, the contractor will get a time of 26 months to complete the work.
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8The objective of the proposed survey covering parts of Assam and Arunachal Pradesh is to identify strati-structural prospects in the area and imaging of tertiary sediments and fractured basement prospects.
8The oilfields, discovered so far, in the region are situated mainly in the areas south and southeast of the Brahmaputra River and a few in the thrust belts, associated with Naga-Patkai hills.
8However, the area to the north of the Brahmaputra River up to the Eastern Himalayan foothills has remained poorly explored.
8Keeping in mind the expected surface, near surface and subsurface complexities, the contractor will have to resort to terrain specific shot hole drilling technology so that it can drill to the depth specified in the shot hole drilling matrix.
8The bidder must have successfully executed at least one or multiple contracts of 2D/3D seismic data acquisition with a minimum cumulative volume of 1000 LKM of seismic data in the last five years.
8The data will have to be acquired within a period of 23 months. Taking into consideration a mobilization of 90 days, the contractor will get a time of 26 months to complete the work.
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After ONGC, OIL too has floated an ICB tender for acquisition of 2360 LKM of 2D seismic data in un-appraised areas of North-East (NE) India.
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.
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.
8The data will be acquired in the Assam-Arakan Sedimentary basin, covering parts of Assam and Arunachal Pradesh.
8It is in this context that OIL has been entrusted by the petroleum ministry to carry out wide spaced 2D seismic survey for appraisal of the unappraised areas in NE.
8The last date of submission of bids is July 15, 2015 (11.00). The technical bids will be opened on the same day (July 15, 2015) at 14.00 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.
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.
8The data will be acquired in the Assam-Arakan Sedimentary basin, covering parts of Assam and Arunachal Pradesh.
8It is in this context that OIL has been entrusted by the petroleum ministry to carry out wide spaced 2D seismic survey for appraisal of the unappraised areas in NE.
8The last date of submission of bids is July 15, 2015 (11.00). The technical bids will be opened on the same day (July 15, 2015) at 14.00 pm.
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