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Jul 2015
Companies supplying gas are now free to fix their own tariff with the Supreme Court today (July 1, 2015) dismissing the Special Leave Petition (SLP) filed by the Petroleum and Natural Gas Regulatory Board (PNGRB) seeking power to regulate prices of intra-city supplies.
8The 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.
8Readers will recall that the PNGRB had filed a Special Leave Petition (SLP) on July 19 in the Supreme Court challenging the order of the Delhi High Court which had quashed the PNGRB`s powers to fix network tariff and compression charges for a CGD outfit.
8The High Court judgement had held that the PNGRB is not empowered to fix any component of Network Tariff or Compression Charge for any entity like IGL having its own distribution network, while quashing the PNGRB order dated April 9, 2012, fixing maximum retail price and requiring IGL to disclose the network tariff and compression charges to its customers.
8The PNGRB in its order had asked IGL to cut down its network tariff by 63%. In a retrospective decision, it 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.
8IGL, the sole supplier of compressed natural gas in Delhi/NCR, subsequently appealed in the court against the regulatory board`s decision to regulate its network tariff and selling price.
Click here to go to for more information. Details
8The 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.
8Readers will recall that the PNGRB had filed a Special Leave Petition (SLP) on July 19 in the Supreme Court challenging the order of the Delhi High Court which had quashed the PNGRB`s powers to fix network tariff and compression charges for a CGD outfit.
8The High Court judgement had held that the PNGRB is not empowered to fix any component of Network Tariff or Compression Charge for any entity like IGL having its own distribution network, while quashing the PNGRB order dated April 9, 2012, fixing maximum retail price and requiring IGL to disclose the network tariff and compression charges to its customers.
8The PNGRB in its order had asked IGL to cut down its network tariff by 63%. In a retrospective decision, it 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.
8IGL, the sole supplier of compressed natural gas in Delhi/NCR, subsequently appealed in the court against the regulatory board`s decision to regulate its network tariff and selling price.
Click here to go to for more information. Details
Cairn India Limited (CIL), the operator of the Barmer block in Rajasthan (also known as RJ-ON-90/1), has chalked out a Rs 2,250 crore plan for better evacuation of both oil and gas from the block.
8The Rajasthan JV is currently permitted to produce 300,000 barrel of oil per day (bopd) and 165 MMSCFD of natural gas from the block.
8CIL has already laid a pipeline -- dubbed Mangala Development Pipeline (MDP) -- to evacuate crude oil produced from the block government nominated buyers in Gujarat and the other coastal refineries.
8Of the total Rs 2,250 crore, the company plans to spend Rs 1,300 crore on augmentation of its existing Mangala pipeline to Bhogat Terminal in Gujarat.
8As part of the augmentation plan, the crude oil carrying capacity of the pipeline will be raised from 200,000 bopd to 300,000 bopd.
8Then again, the capacity of the gas pipeline will also be increased from 6.3 to 40 MMSCFD.
8Along with this, the capacity of the gas-based captive power plant at the Bhogat Terminal will also be increased from 18 MW to 40 MW.
8Lastly, a new 30-inch pipeline will be laid from the Raageshwari Gas Terminal to Palanpur for transportation of 280 MMSCFD of gas. The cost of project of this pipeline is estimated at Rs 950 crore.
Click on our Reports section for more Details
8The Rajasthan JV is currently permitted to produce 300,000 barrel of oil per day (bopd) and 165 MMSCFD of natural gas from the block.
8CIL has already laid a pipeline -- dubbed Mangala Development Pipeline (MDP) -- to evacuate crude oil produced from the block government nominated buyers in Gujarat and the other coastal refineries.
8Of the total Rs 2,250 crore, the company plans to spend Rs 1,300 crore on augmentation of its existing Mangala pipeline to Bhogat Terminal in Gujarat.
8As part of the augmentation plan, the crude oil carrying capacity of the pipeline will be raised from 200,000 bopd to 300,000 bopd.
8Then again, the capacity of the gas pipeline will also be increased from 6.3 to 40 MMSCFD.
8Along with this, the capacity of the gas-based captive power plant at the Bhogat Terminal will also be increased from 18 MW to 40 MW.
8Lastly, a new 30-inch pipeline will be laid from the Raageshwari Gas Terminal to Palanpur for transportation of 280 MMSCFD of gas. The cost of project of this pipeline is estimated at Rs 950 crore.
Click on our Reports section for more Details
Cairn has decided to use Drag Reducing Agents (DRA) to increase the capacity of the Mangala Development Pipeline (MDP) from 200,000 bopd to 300,000 bopd.
8DRAs are used globally in pipeline systems for increasing the throughput.
8These are ultra high molecular weight poly-alpha-olefins (typically soybean oil) having flash point greater than 93°C.
8These are injected into pipeline at 10 ppm dosages so as to minimize turbulence along the pipeline wall and increases the flow rate.
8Considering the possibility of further increase in production upto 300,000 BOPD from the Rajasthan block, steady state thermo-hydraulic studies and field trials were conducted to evaluate the possibility of transporting additional volume of crude oil through the existing pipeline.
8The studies and trials showed that crude flow above 300,000 BOPD through the pipeline can be achieved by injection of DRAs through injection skids at different stations.
Click on our Reports section for more Details
8DRAs are used globally in pipeline systems for increasing the throughput.
8These are ultra high molecular weight poly-alpha-olefins (typically soybean oil) having flash point greater than 93°C.
8These are injected into pipeline at 10 ppm dosages so as to minimize turbulence along the pipeline wall and increases the flow rate.
8Considering the possibility of further increase in production upto 300,000 BOPD from the Rajasthan block, steady state thermo-hydraulic studies and field trials were conducted to evaluate the possibility of transporting additional volume of crude oil through the existing pipeline.
8The studies and trials showed that crude flow above 300,000 BOPD through the pipeline can be achieved by injection of DRAs through injection skids at different stations.
Click on our Reports section for more Details
Cairn plans to raise the carrying capacity of the existing 8-inch natural gas pipeline from 6.3 MMSCFD to 40 MMSCFD to facilitate gas sales to Gujarat Narmada Fertilizer Corporation (GNFC).
8The gas coming from the Raageshwari gas terminal will be sold to GNFC.
8The company will transport gas to GNFC through a tap-off point from the existing gas pipeline at Wankaner, Gujarat, and pump gas into the gas grid operated by Gujarat State Petronet Limited (GSPL).
8The gas pumped in the pipeline also caters to the company's internal fuel requirement for power generation at above ground installations (AGIs) and to run the crude oil pipeline heating system.
In order to raise the carrying capacity of the existing gas pipeline, Cairn will have to set up the following:
8Additional natural gas driven compressors (2W+1S) at the Viramgam Terminal
8Additional natural gas turbine drives (capacity 9MW) near eight AGIs.
8Raising the back-up captive power generation capacity from the existing 0.39 KVA to 1 MW
Click on our Reports section for more Details
8The gas coming from the Raageshwari gas terminal will be sold to GNFC.
8The company will transport gas to GNFC through a tap-off point from the existing gas pipeline at Wankaner, Gujarat, and pump gas into the gas grid operated by Gujarat State Petronet Limited (GSPL).
8The gas pumped in the pipeline also caters to the company's internal fuel requirement for power generation at above ground installations (AGIs) and to run the crude oil pipeline heating system.
In order to raise the carrying capacity of the existing gas pipeline, Cairn will have to set up the following:
8Additional natural gas driven compressors (2W+1S) at the Viramgam Terminal
8Additional natural gas turbine drives (capacity 9MW) near eight AGIs.
8Raising the back-up captive power generation capacity from the existing 0.39 KVA to 1 MW
Click on our Reports section for more Details
Cairn has also decided to raise the capacity of the gas-based captive power generation at the Bhogat Terminal from 18 MW to 40 MW.
8Though a clearance for 18 MW capacity has been given, the maximum requirement for power at the Bhogat Terminal (for plant control and instrumentation, SEHMS heating of export pipeline loop and terminal piping, operation of export pumps, lighting and air conditioning of buildings) is currently only 16 MW.
8The 18 MW unit was supposed to generate power using Gas Turbine Generators (GTG) and 3 MW back-up power generation using DG set.
8As this was not enough, opportunity for sourcing back-up power from the state agency Paschim Gujarat Vij Company Limited (PGVCL) was explored. PGVCL has agreed to supply only 1.7 MW.
8In the case of failure of any GTG, the emergency DG and PGVCL power supply will not be able to provide full power back-up as the power available from them will be able to cater to only emergency requirements.
8To take care of this, one additional GTG will be installed at the Bhogat Terminal, so that the GTG configuration of 2W+1S is established.
8Each GTG will have a rated power generation capacity of 13.4 MW. The emergency DG and Gujarat State Electricity Board (GSEB) power supply will provide back-up for emergency power requirements.
Click on our Reports section for more Details
8Though a clearance for 18 MW capacity has been given, the maximum requirement for power at the Bhogat Terminal (for plant control and instrumentation, SEHMS heating of export pipeline loop and terminal piping, operation of export pumps, lighting and air conditioning of buildings) is currently only 16 MW.
8The 18 MW unit was supposed to generate power using Gas Turbine Generators (GTG) and 3 MW back-up power generation using DG set.
8As this was not enough, opportunity for sourcing back-up power from the state agency Paschim Gujarat Vij Company Limited (PGVCL) was explored. PGVCL has agreed to supply only 1.7 MW.
8In the case of failure of any GTG, the emergency DG and PGVCL power supply will not be able to provide full power back-up as the power available from them will be able to cater to only emergency requirements.
8To take care of this, one additional GTG will be installed at the Bhogat Terminal, so that the GTG configuration of 2W+1S is established.
8Each GTG will have a rated power generation capacity of 13.4 MW. The emergency DG and Gujarat State Electricity Board (GSEB) power supply will provide back-up for emergency power requirements.
Click on our Reports section for more Details
Cairn will also lay a new pipeline from its Raageshwari Gas Terminal in the Barmer block to Palanpur in Gujarat at a cost of Rs 950 crore.
8The company plans to lay this pipeline to ferry gas to its customers in Gujarat.
8This will be done laying a new 193-km-long pipeline from the Raageshwari terminal to the gas pipeline network being operated by GSPL at Palanpur.
8This flow rate of the pipeline will be 280 MMSCFD.
8Of the total length of 193 kms, 135 km will be laid in the existing Mangala Development Pipeline (MDP) corridor and the remaining 58 km will be laid on virgin land.
8Supply pressure from Raageshwari gas terminal will be 91 barg and the supply temperature will be between 30°C to 50°C.
8The Rs 950-crore pipeline project will consist of dispatch and receiver stations, sectionalizing valve stations, intelligent pigging stations and compressor stations.
Click on our Reports section for more Details
8The company plans to lay this pipeline to ferry gas to its customers in Gujarat.
8This will be done laying a new 193-km-long pipeline from the Raageshwari terminal to the gas pipeline network being operated by GSPL at Palanpur.
8This flow rate of the pipeline will be 280 MMSCFD.
8Of the total length of 193 kms, 135 km will be laid in the existing Mangala Development Pipeline (MDP) corridor and the remaining 58 km will be laid on virgin land.
8Supply pressure from Raageshwari gas terminal will be 91 barg and the supply temperature will be between 30°C to 50°C.
8The Rs 950-crore pipeline project will consist of dispatch and receiver stations, sectionalizing valve stations, intelligent pigging stations and compressor stations.
Click on our Reports section for more Details
8IOC floats tender for up-gradation of gas turbine speedtronics control system at Barauni Refinery: IOC has floated a tender for up-gradation of gas turbine speedtronics control system installed at its Barauni Refinery.
--As per the scope of work, the control system will have to be up-graded from Mark-V to Mark-VI E. Along with this, the field cables too have to be replaced for the GTG#2.
--The last date for bid submission is July 7, 2015. Click here
8IOC floats tender for setting up 100 MW wind energy projects: IOC has floated a tender for setting up wind farms of minimum of 25 MW (±10%) capacity (at single or multiple sites) totaling up to 100 MW (±10%), anywhere in
the states of Rajasthan, Madhya Pradesh, Gujarat, Karnataka and Andhra Pradesh.
--The wind farm will be set up on an LSTK basis.
--The bids can be submitted before July 27, 2015 (upto 14:30 hrs).Click here Details
--As per the scope of work, the control system will have to be up-graded from Mark-V to Mark-VI E. Along with this, the field cables too have to be replaced for the GTG#2.
--The last date for bid submission is July 7, 2015. Click here
8IOC floats tender for setting up 100 MW wind energy projects: IOC has floated a tender for setting up wind farms of minimum of 25 MW (±10%) capacity (at single or multiple sites) totaling up to 100 MW (±10%), anywhere in
the states of Rajasthan, Madhya Pradesh, Gujarat, Karnataka and Andhra Pradesh.
--The wind farm will be set up on an LSTK basis.
--The bids can be submitted before July 27, 2015 (upto 14:30 hrs).Click here Details
8BPCL places order for fire alarm systems on CMI: BPCL has placed an order for supply of fire alarm systems on CMI Ltd for its Kochi refinery.
--The procurement has been made under the Kochi refiner's integrated refinery expansion project.
--The value of the order is pegged at Rs 24.64 crore.
--CMI has to complete the execution of the order by November 24, 2015.
8Khuntia ceases to be HPCL Director: HPCL has informed the BSE that Dr. Subhash Chandra Khuntia has ceased to be the Director on the Board of the company with effect from June 16, 2015, upon his taking over as the Secretary, Ministry of HRD, Govt. of India.
--Khuntia, who was Special Secretary & FA, Ministry of Petroleum & Natural Gas, had earlier ceased to be the Director on IOC's Board with effect from June 16, 2015, for the same reason. Details
--The procurement has been made under the Kochi refiner's integrated refinery expansion project.
--The value of the order is pegged at Rs 24.64 crore.
--CMI has to complete the execution of the order by November 24, 2015.
8Khuntia ceases to be HPCL Director: HPCL has informed the BSE that Dr. Subhash Chandra Khuntia has ceased to be the Director on the Board of the company with effect from June 16, 2015, upon his taking over as the Secretary, Ministry of HRD, Govt. of India.
--Khuntia, who was Special Secretary & FA, Ministry of Petroleum & Natural Gas, had earlier ceased to be the Director on IOC's Board with effect from June 16, 2015, for the same reason. Details
