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Jul 2015
BPCL is planning to lay a pipeline for transportation of aviation turbine fuel from the Rairu POL depot to the Airforce station at Gwalior. For this purpose, BPCL is planning to do route survey for the proposed pipeline.
8The survey of pipeline will take off from Rairu POL depot at Barua to aviation fuelling station of Airforce at Maharajpura, Gwalior.
8The survey is being conducted to find a minimum, optimized route for laying the proposed pipeline.
8The objective of survey is to obtain topographical details along the most optimized pipeline route after physical verification and to collect information about the existing facilities, development plans, restricted areas located along and in the vicinity of the proposed pipeline route.
8The objective of survey also includes determination of population density index and to obtain soil stratification, geo-technical and soil resistivity data along the proposed pipeline route.
8The survey is estimated to finish within 45 days and after that laying of pipeline will be done.
Click on Tenders for more details Details
8The survey of pipeline will take off from Rairu POL depot at Barua to aviation fuelling station of Airforce at Maharajpura, Gwalior.
8The survey is being conducted to find a minimum, optimized route for laying the proposed pipeline.
8The objective of survey is to obtain topographical details along the most optimized pipeline route after physical verification and to collect information about the existing facilities, development plans, restricted areas located along and in the vicinity of the proposed pipeline route.
8The objective of survey also includes determination of population density index and to obtain soil stratification, geo-technical and soil resistivity data along the proposed pipeline route.
8The survey is estimated to finish within 45 days and after that laying of pipeline will be done.
Click on Tenders for more details Details
The pipeline will help serve the expansions that RIL is putting together for its units in Nagothane and Hazira. The following are the details:
8The Nagothane manufacturing division is located near Raigad, Maharashtra. It comprises of an ethane and propane gas cracker and five downstream plants for the manufacture of polymers, fibre intermediates and chemicals.
8The unit is currently planning expansion of its production capacities by way of de - bottlenecking of various plants. This debottlenecking exercise will involve the ethylene oxide (EO), ethylene glycol (EG), low density polyethylene (LLDPE), high density polyethlyene (HDPE) and Hexene-1 plants along with expansion and change of fuel in captive power plant.
8The Hazira manufacturing division is located in Surat, Gujarat. The complex comprises of a naphtha cracker that feeds downstream petrochemical, fibre intermediates and polyester plants.
8The facility is currently undergoing debottlenecking and expansion to increase the production capacities of its plants which includes the cracker and the polyester plants along with other petrochemical plants.
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8The Nagothane manufacturing division is located near Raigad, Maharashtra. It comprises of an ethane and propane gas cracker and five downstream plants for the manufacture of polymers, fibre intermediates and chemicals.
8The unit is currently planning expansion of its production capacities by way of de - bottlenecking of various plants. This debottlenecking exercise will involve the ethylene oxide (EO), ethylene glycol (EG), low density polyethylene (LLDPE), high density polyethlyene (HDPE) and Hexene-1 plants along with expansion and change of fuel in captive power plant.
8The Hazira manufacturing division is located in Surat, Gujarat. The complex comprises of a naphtha cracker that feeds downstream petrochemical, fibre intermediates and polyester plants.
8The facility is currently undergoing debottlenecking and expansion to increase the production capacities of its plants which includes the cracker and the polyester plants along with other petrochemical plants.
Click on Reports for more. Details
Is it possible for India to achieve a 50% indigenization in the high-technology upstream sector in the next three years?
8This seems to be the target set for the Steering Committee looking at indigenization of oil and gas equipment set up by the petroleum ministry.
8The upstream sector is highly technology and capital intensive and for an indigenization effort to take root, the Indian market is too small for an equipment producer to generate the economies of scale required to be able to make money on investment.
8In this context, it will be interesting to watch how the government balances the need for high-tech quality products by the E&P industry with the need for indigenization.
8There is a reasonable large segment of the upstream sector that can be indigenized particularly in the onland E&P side but when it comes to offshore work or deepwater developments, the percentage of indigenous content will drop sharply.
8Nevertheless, amendments in public procurement norms is a step in the right direction but the Association of Oil and Gas Operators, a member of the Steering Committee for indigenization, is likely to put in a dissent note if local content is pushed at the expense of quality of dependability for eventually it will be the operators who will have to bear the burden of shoddy workmanship. Details
8This seems to be the target set for the Steering Committee looking at indigenization of oil and gas equipment set up by the petroleum ministry.
8The upstream sector is highly technology and capital intensive and for an indigenization effort to take root, the Indian market is too small for an equipment producer to generate the economies of scale required to be able to make money on investment.
8In this context, it will be interesting to watch how the government balances the need for high-tech quality products by the E&P industry with the need for indigenization.
8There is a reasonable large segment of the upstream sector that can be indigenized particularly in the onland E&P side but when it comes to offshore work or deepwater developments, the percentage of indigenous content will drop sharply.
8Nevertheless, amendments in public procurement norms is a step in the right direction but the Association of Oil and Gas Operators, a member of the Steering Committee for indigenization, is likely to put in a dissent note if local content is pushed at the expense of quality of dependability for eventually it will be the operators who will have to bear the burden of shoddy workmanship. Details
The petroleum ministry has constituted a Steering Committee (SC) to suggest suitable amendments in the public procurement norms so that indigenized equipment and products are given preference.
8The Steering Committee will look into the possibility of fixing a target for indigenisation of 50% of the total equipment and products in the upstream sector.
8Not only this, the SC will also look into the setting up of dedicated manufacturing zones and clusters, catering to oil field services, such as ship building, construction of offshore platforms and rigs.
8The committee is also working on the identification of equipment and products in the sector which can be built domestically.
8The Steering Committee comprises of representatives from the Ministry of Petroleum, Ministry of Commerce, Department of Industrial Policy and Promotion, various Oil PSUs and representatives from Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industries (CII) and Association of Oil and Gas Operators (AOGO). Details
8The Steering Committee will look into the possibility of fixing a target for indigenisation of 50% of the total equipment and products in the upstream sector.
8Not only this, the SC will also look into the setting up of dedicated manufacturing zones and clusters, catering to oil field services, such as ship building, construction of offshore platforms and rigs.
8The committee is also working on the identification of equipment and products in the sector which can be built domestically.
8The Steering Committee comprises of representatives from the Ministry of Petroleum, Ministry of Commerce, Department of Industrial Policy and Promotion, various Oil PSUs and representatives from Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industries (CII) and Association of Oil and Gas Operators (AOGO). Details
For reference purposes, the website carries here a disaggregated picture of India's crude imports and export of petroleum products
8The data is given in terms of countries from where import of crude is taking place.
8Similarly country-wise export of petroleum products are also carried here as also imports.
8Comparison of domestic production with that of consumption is also given here.
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Details
8The data is given in terms of countries from where import of crude is taking place.
8Similarly country-wise export of petroleum products are also carried here as also imports.
8Comparison of domestic production with that of consumption is also given here.
Click on Reports for more.
Details
Based on the hydrocarbon discoveries made so far and the upside hydrocarbon potential in its on-land PML acreages in the KG basin, ONGC has decided to drill a total of 28 additional exploratory wells in next five years.
8All the PML acreages where the ONGC plans to drill the additional wells have been converted to various PML blocks for periods ranging from 7 to 20 years.
8Currently, intensive exploration is being carried out in the KG on-land PEL-1A and PEL-1B blocks. The West Godavari PML, including the smaller ML areas within, constitutes the PEL-1A Block. --About 1615 sq km area of the West Godavari PML (including Lingala, Lingala extn; KK-12, Kaikalur-3, Vadali-2, Nandigama, Malleswaram and Bantumilli PML areas) falls in the Krishna district.
8Eight hydrocarbon bearing fields, namely Nandigama, Kaikalur, Vadali, Lingala, Bantumilli, Kaza, Pendurru, Malleswaram and Vanadurru South have been established so far by ONGC.
8Fresh 3D seismic surveys, with improved imaging of the sub-surface, acquired recently have significantly changed the exploration scenario in the area. Based on these leads and Geological and Geophysical studies carried out in the area, ONGC has firmed up 28 more locations for exploratory drilling to probe new prospects and to delineate the existing oil and gas pools of the established fields. Details
8All the PML acreages where the ONGC plans to drill the additional wells have been converted to various PML blocks for periods ranging from 7 to 20 years.
8Currently, intensive exploration is being carried out in the KG on-land PEL-1A and PEL-1B blocks. The West Godavari PML, including the smaller ML areas within, constitutes the PEL-1A Block. --About 1615 sq km area of the West Godavari PML (including Lingala, Lingala extn; KK-12, Kaikalur-3, Vadali-2, Nandigama, Malleswaram and Bantumilli PML areas) falls in the Krishna district.
8Eight hydrocarbon bearing fields, namely Nandigama, Kaikalur, Vadali, Lingala, Bantumilli, Kaza, Pendurru, Malleswaram and Vanadurru South have been established so far by ONGC.
8Fresh 3D seismic surveys, with improved imaging of the sub-surface, acquired recently have significantly changed the exploration scenario in the area. Based on these leads and Geological and Geophysical studies carried out in the area, ONGC has firmed up 28 more locations for exploratory drilling to probe new prospects and to delineate the existing oil and gas pools of the established fields. Details
The cost of drilling the additional 28 exploratory wells in next five years has been estimated at Rs 700 crore.
8The 28 wells will be drilled over a period of five years. Each well is estimated to take around 3-4 months to get drilled.
8An electrical type drilling rig will be used for drilling operations
8The rig will be equipped with a solid handling system, comprising shale shakers (1200 GPM), de-sanders (1200 GPM), de-silters (1200 GPM) and degassers with a vacuum pump.
8Testing facilities will also be available at the drilling rig for separation of liquid phase and burning of gaseous hydrocarbons during testing.
8Once the drilling operations are completed, and if sufficient indications of hydrocarbons are noticed while drilling, the well will be tested by perforation in the production casing, which will normally take 2-3 days.
8The well will be sealed off for future development only if its found to be hydrocarbon bearing. Details
8The 28 wells will be drilled over a period of five years. Each well is estimated to take around 3-4 months to get drilled.
8An electrical type drilling rig will be used for drilling operations
8The rig will be equipped with a solid handling system, comprising shale shakers (1200 GPM), de-sanders (1200 GPM), de-silters (1200 GPM) and degassers with a vacuum pump.
8Testing facilities will also be available at the drilling rig for separation of liquid phase and burning of gaseous hydrocarbons during testing.
8Once the drilling operations are completed, and if sufficient indications of hydrocarbons are noticed while drilling, the well will be tested by perforation in the production casing, which will normally take 2-3 days.
8The well will be sealed off for future development only if its found to be hydrocarbon bearing. Details
Enthused by the recent independent reserve classification of gross proven plus probable (2P) reserves of 206 Bcf of natural gas and 8 million bbls of condensate (light oil) in the Cambay Field, the operator Oilex has drawn up a $30 million funding plan to fund its 2015-16 work programme.
8The company had recently announced its first local market gas sales from its Cambay field (Cambay-73 well) in India. In addition to the Cambay-73 well, other gas production wells coming online during 2015 will include Cambay-77H and Bhandut-3.
8The funds will facilitate drilling and completion of two horizontal multistage production wells (Cambay-78H and Cambay- 80H), work-over operations on five existing wells and carrying out of engineering studies for a larger development of 50 MMscfd gas production on plateau in the Cambay field.
8It will also include setting up of gas production facilities to support gas sales from the Bhandut-3 well in the Bhandut field.
8Notably, a portion of the fund will also be spent on carrying out technical work in its Canning field in Australia to facilitate a farm-out. Details
8The company had recently announced its first local market gas sales from its Cambay field (Cambay-73 well) in India. In addition to the Cambay-73 well, other gas production wells coming online during 2015 will include Cambay-77H and Bhandut-3.
8The funds will facilitate drilling and completion of two horizontal multistage production wells (Cambay-78H and Cambay- 80H), work-over operations on five existing wells and carrying out of engineering studies for a larger development of 50 MMscfd gas production on plateau in the Cambay field.
8It will also include setting up of gas production facilities to support gas sales from the Bhandut-3 well in the Bhandut field.
8Notably, a portion of the fund will also be spent on carrying out technical work in its Canning field in Australia to facilitate a farm-out. Details
Some recent tenders floated by oil and gas companies are:
8Supply of CAB-2 catalyst for petrochemical plant at Pata (UP) [GAIL]
8Procurement of casing and tubing for CB-ONN-2010/11 block [GAIL]
8Procurement of PIG locator for KG Basin [GAIL]
8Contract for service, calibration and maintenance of portable gas detector [GAIL]
8Procurement of SS pipes [IOC]
8Rate contract for maintenance of CFR engines (RON MON and CETANE) in QC laboratory, Bongaigaon refinery [IOC]
8Repair and maintenance of industrial coatings over equipments, pipelines and structures in Px, PTA, PTA-ETP and FLARE area, Panipat [IOC]
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Details
8Supply of CAB-2 catalyst for petrochemical plant at Pata (UP) [GAIL]
8Procurement of casing and tubing for CB-ONN-2010/11 block [GAIL]
8Procurement of PIG locator for KG Basin [GAIL]
8Contract for service, calibration and maintenance of portable gas detector [GAIL]
8Procurement of SS pipes [IOC]
8Rate contract for maintenance of CFR engines (RON MON and CETANE) in QC laboratory, Bongaigaon refinery [IOC]
8Repair and maintenance of industrial coatings over equipments, pipelines and structures in Px, PTA, PTA-ETP and FLARE area, Panipat [IOC]
Click on Tenders section for more
Details
8ONGC floats tender for hiring of 300-feet offshore jack-up rig: ONGC has floated an ICB tender for hiring of a 300 feet independent leg cantilever type high specification offshore jack-up rig.
--The rig will be hired for a firm period of three years.
--The last date for submission of offers is August 18, 2015 (4:00pm)
Click here for more information
8Essar Q1 result today: Essar Oil Ltd (EOL) will announce its results for the quarter ended June 30, 2015 (Q1) on July 29, 2015. The following oil and gas companies will declare their Q1 (April-June) 2015 results as under:
--Petronet LNG: July 30, 2015
--Aban Offshore: August 3, 2015
--IGL: August 5, 2015
--GSPL: August 7, 2015
8AP Sawhney appointed as Government Director on IOC Board: IOC has informed the BSE that AP Sawhney has been appointed as the Government Nominee Director on the Board of the company with effect from July 22, 2015. Details
--The rig will be hired for a firm period of three years.
--The last date for submission of offers is August 18, 2015 (4:00pm)
Click here for more information
8Essar Q1 result today: Essar Oil Ltd (EOL) will announce its results for the quarter ended June 30, 2015 (Q1) on July 29, 2015. The following oil and gas companies will declare their Q1 (April-June) 2015 results as under:
--Petronet LNG: July 30, 2015
--Aban Offshore: August 3, 2015
--IGL: August 5, 2015
--GSPL: August 7, 2015
8AP Sawhney appointed as Government Director on IOC Board: IOC has informed the BSE that AP Sawhney has been appointed as the Government Nominee Director on the Board of the company with effect from July 22, 2015. Details
Asia’s purified terephthalic acid (PTA) industry will come under increasing pressure next year as India adds 2.3m tonnes to its production capacity in the first half of 2016
8RIL`s PTA-2 plant in Dahej is expected to be completed by September this year, adding a production of 1.1m tonnes per year in the market while and JBF Industries is targeting a first quarter 2016 startup for its 1.25m tonne per year PTA plant in the Mangalore Special Economic Zone.
8As these plants become operational, India will have a PTA production capacity of 7.2m tonnes per year by the first half of 2016 showing an annual increase of 2.3m tonne as compared to its existing PTA capacity which stands at 4.9m tonnes per year.
8The PTA demand in India is estimated to remain flat next year at 5m tonnes resulting in excess production of about 2 m tonne if plants are operated at full rates. This also means potential exports of 1m-2m tonnes a year, depending on finalized supply contracts with both domestic and overseas buyers and the final amounts allocated for captive usage as well as operating rates in the country.
8IOC has recently announced that they are keen on building a 1m tonne PTA unit at its Paradip refinery and construction is expected to finish by 2020. IOC already has a 550,000 tonne per year PTA unit operating in Panipat, Haryana.
8As Asia already has a massive surplus capacity of PTA, so the Indian producers have to targeted the Middle East as a potential outlet for PTA cargoes, going neck to neck with other Asia Pacific producers in an attempt to offload cargoes.
8Indian PTA market participants are now expecting a price correction in the latter part of this year, Prices are likely to register some downwards pressure in the face of such excess capacity with any buying interest quickly smothered by the supplies offered by producers and traders.
8Asian PTA prices continued to feel the brunt of sluggish demand from end-users.
Click on Reports for more. Details
8RIL`s PTA-2 plant in Dahej is expected to be completed by September this year, adding a production of 1.1m tonnes per year in the market while and JBF Industries is targeting a first quarter 2016 startup for its 1.25m tonne per year PTA plant in the Mangalore Special Economic Zone.
8As these plants become operational, India will have a PTA production capacity of 7.2m tonnes per year by the first half of 2016 showing an annual increase of 2.3m tonne as compared to its existing PTA capacity which stands at 4.9m tonnes per year.
8The PTA demand in India is estimated to remain flat next year at 5m tonnes resulting in excess production of about 2 m tonne if plants are operated at full rates. This also means potential exports of 1m-2m tonnes a year, depending on finalized supply contracts with both domestic and overseas buyers and the final amounts allocated for captive usage as well as operating rates in the country.
8IOC has recently announced that they are keen on building a 1m tonne PTA unit at its Paradip refinery and construction is expected to finish by 2020. IOC already has a 550,000 tonne per year PTA unit operating in Panipat, Haryana.
8As Asia already has a massive surplus capacity of PTA, so the Indian producers have to targeted the Middle East as a potential outlet for PTA cargoes, going neck to neck with other Asia Pacific producers in an attempt to offload cargoes.
8Indian PTA market participants are now expecting a price correction in the latter part of this year, Prices are likely to register some downwards pressure in the face of such excess capacity with any buying interest quickly smothered by the supplies offered by producers and traders.
8Asian PTA prices continued to feel the brunt of sluggish demand from end-users.
Click on Reports for more. Details
There are lessons to be learnt from a recent World Bank study that claims that untargeted energy subsidies reduce the amount of money that can be spend on programs that really benefits the poor.
8At the global scale, fuel subsidies to consumers are estimated at more than US$ 300 billion annually.
8Out of this total, road sector subsidies are estimated at US$ 110 billion, resulting in a global welfare loss of US$ 44 billion or even double as much, if externalities are taken into account.
8World Bank also argues that subsidies on electricity and petroleum products have contributed significantly to the inefficient use of energy like in India where subsidies on HSD and petrol had resulted in a spurt in demand for the product.
8Then again, fuel subsidies have proven to be dis-proportionally beneficial to the wealthier citizens, which consume relatively larger amounts of fuel to power their automobiles and homes. In India, the proliferation of diesel SUVs is an example.
8Indonesia is an example of how oil subsidies can be removed successfully, like it did in 2005. This was accompanied by a carefully designed cash-transfer program that targeted the poor among the affected household groups.
8This is exactly what India is planning to do now, but it will take a while before the entire exercise becomes a success.
Click on Reports for more. Details
8At the global scale, fuel subsidies to consumers are estimated at more than US$ 300 billion annually.
8Out of this total, road sector subsidies are estimated at US$ 110 billion, resulting in a global welfare loss of US$ 44 billion or even double as much, if externalities are taken into account.
8World Bank also argues that subsidies on electricity and petroleum products have contributed significantly to the inefficient use of energy like in India where subsidies on HSD and petrol had resulted in a spurt in demand for the product.
8Then again, fuel subsidies have proven to be dis-proportionally beneficial to the wealthier citizens, which consume relatively larger amounts of fuel to power their automobiles and homes. In India, the proliferation of diesel SUVs is an example.
8Indonesia is an example of how oil subsidies can be removed successfully, like it did in 2005. This was accompanied by a carefully designed cash-transfer program that targeted the poor among the affected household groups.
8This is exactly what India is planning to do now, but it will take a while before the entire exercise becomes a success.
Click on Reports for more. Details
It is important to note that the shrinkage of surplus in petroleum products manufactured by Indian refineries in April-June, 2015-16 has occurred not on account of a fall in refinery output but on a rise in consumption.
8Diesel production in April-June, 2015-16 stood at 24158 TMT as against 94338 TMT for all of 2014-15.
8On a pro rata basis, this is a 2.5% increase in production of diesel whereas the domestic surplus has shrunk disproportionately by a whopping 21%.
8The production of petrol was however lower in April-June, 2014-15 but that does not fully explain the sharp 22% shrinkage in domestic surplus.
8Overall, production of petroleum products have remained flat whereas the surplus went down by a unmistakable 22% in April-May, 2015-16 when compared to 2014-15.
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8Diesel production in April-June, 2015-16 stood at 24158 TMT as against 94338 TMT for all of 2014-15.
8On a pro rata basis, this is a 2.5% increase in production of diesel whereas the domestic surplus has shrunk disproportionately by a whopping 21%.
8The production of petrol was however lower in April-June, 2014-15 but that does not fully explain the sharp 22% shrinkage in domestic surplus.
8Overall, production of petroleum products have remained flat whereas the surplus went down by a unmistakable 22% in April-May, 2015-16 when compared to 2014-15.
Click on Reports for more. Details
Indian refineries are producing less surpluses in petroleum products in the face of a galloping rise in consumption as is evident from latest data available with this website.
8Refineries registered a significantly lower surplus in petrol, at 2595 TMT in April-June, 2015 in relation to a total surplus of 13,158 TMT in 2014-15.
8On a pro rate basis, the surplus has shrunk by 22% in the first quarter of the current financial year.
8Similarly on a pro rate basis, consumption has sprung up by 12% in the quarter.
8Surpluses in diesel too has shown a sharp reduction of 21% in the first quarter of this year.
8Consumption of diesel has shown a rise of 10% in consumption between April-May, 2015-16.
8Overall, when all petroleum products are included, the surplus has shrunk by an overall 23% on a pro rate basis between April-June, 2015-16 in comparison to the previous year.
8Even if seasonal factors are taken into account, there is indeed a sharp fall in surplus of petroleum products manufactured by Indian refiners in the April-June period.
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8Refineries registered a significantly lower surplus in petrol, at 2595 TMT in April-June, 2015 in relation to a total surplus of 13,158 TMT in 2014-15.
8On a pro rate basis, the surplus has shrunk by 22% in the first quarter of the current financial year.
8Similarly on a pro rate basis, consumption has sprung up by 12% in the quarter.
8Surpluses in diesel too has shown a sharp reduction of 21% in the first quarter of this year.
8Consumption of diesel has shown a rise of 10% in consumption between April-May, 2015-16.
8Overall, when all petroleum products are included, the surplus has shrunk by an overall 23% on a pro rate basis between April-June, 2015-16 in comparison to the previous year.
8Even if seasonal factors are taken into account, there is indeed a sharp fall in surplus of petroleum products manufactured by Indian refiners in the April-June period.
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The data in shrinking domestic surpluses in petroleum products is buttressed by a Platts report that India`s oil product exports plunged nearly 30% to six-year lows in June as refiners diverted diesel to the domestic market to meet surging summer demand, while growing preference for petrol-driven vehicles supported gasoline consumption and triggered unusually high imports of the fuel.
8India has imported 488,000 mt of gasoline in the first half of 2015, compared with just 61,000 mt in the same period the previous year, data released recently by the Petroleum Planning and Analysis Cell showed.
8India`s year-to-date gasoline imports have already surpassed imports of 328,000 mt for full year 2014.
8India`s gasoline exports, meanwhile, have contracted by 7% year on year to 7.08 million mt in H1 2015, data showed.
8Oil product exports were last below that level in June 2009, when they fell to about 3.05 million mt.
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8India has imported 488,000 mt of gasoline in the first half of 2015, compared with just 61,000 mt in the same period the previous year, data released recently by the Petroleum Planning and Analysis Cell showed.
8India`s year-to-date gasoline imports have already surpassed imports of 328,000 mt for full year 2014.
8India`s gasoline exports, meanwhile, have contracted by 7% year on year to 7.08 million mt in H1 2015, data showed.
8Oil product exports were last below that level in June 2009, when they fell to about 3.05 million mt.
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The US shale gas market is evolving at a very rapid pace on account of increasing financial intermediation and technological developments.
8In the past decade the processes for finding geological formations rich in shale gas, or shale plays, have improved to the point that new wells almost always result in natural gas production.
8Shale gas well productivity has improved geometrically over the past 10 years resulted in larger amounts of shale gas production at lower natural gas prices.
8The gas market in the US has become more sophisticated and different kind of contracts are now available.
8Intermediaries now play an increasingly important role and there is now space available for various players to work in different aspects of the entire LNG chain.
8For reference purposes, the website carries here a 128 page report outlining the shale gas revolution in the US in terms of how it began and where it is headed along with a very detailed overview of the energy markets in the US.
8This is a must-read for anyone involved in the gas business in India, either as a supplier or as a buyer of gas for developments in the US market will eventually determine the fate of the global gas industry in the coming years.
Click on our Reports section for more Details
8In the past decade the processes for finding geological formations rich in shale gas, or shale plays, have improved to the point that new wells almost always result in natural gas production.
8Shale gas well productivity has improved geometrically over the past 10 years resulted in larger amounts of shale gas production at lower natural gas prices.
8The gas market in the US has become more sophisticated and different kind of contracts are now available.
8Intermediaries now play an increasingly important role and there is now space available for various players to work in different aspects of the entire LNG chain.
8For reference purposes, the website carries here a 128 page report outlining the shale gas revolution in the US in terms of how it began and where it is headed along with a very detailed overview of the energy markets in the US.
8This is a must-read for anyone involved in the gas business in India, either as a supplier or as a buyer of gas for developments in the US market will eventually determine the fate of the global gas industry in the coming years.
Click on our Reports section for more Details
A total of seven companies have expressed their intent to to set up a urea projects under the New Investment policy of 2012 and its subsequent amendments. If these units come up, it will translate into a significant demand for gas.
8This is over and above the sick and defunct units of FCI and HFC that the government is currently trying to revive.
8A total of 12 proposals for either greenfield or brownfield projects were received but after a recent review meeting, only seven have reconfirmed their interest.
8No one has yet submitted the Bank Guarantee as required under the new policy. The guarantee needs to be submitted before the LSTK or EPCA contractors are selected for such projects.
8All but one proposal are from private sector companies.
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8This is over and above the sick and defunct units of FCI and HFC that the government is currently trying to revive.
8A total of 12 proposals for either greenfield or brownfield projects were received but after a recent review meeting, only seven have reconfirmed their interest.
8No one has yet submitted the Bank Guarantee as required under the new policy. The guarantee needs to be submitted before the LSTK or EPCA contractors are selected for such projects.
8All but one proposal are from private sector companies.
Click on Details for more Details
Tehran is reportedly ready to negotiate gas export contracts with Indian company, South Asia Gas Enterprise Pvt. Ltd. (SAGE), which is planning to lay a deepwater gas pipeline from the Middle East to India.
8SAGE -- promoted by the New Delhi based Siddho Mal Group, in JV with the UK-based Deepwater Technology Company -- is working with a global consortium of some of the most reputed companies in the field of deepwater pipelines, to create a multi billion dollar "energy corridor" that can transport gas from the Middle East to India, bypassing the Pakistan waters.
8The Indian company has been waiting fo lifting of sanctions on Iran befoer embarking on gas imports from Iran. Now that the sanctions are being lifted, both sides are willing to negotiate the terms and conditions for export of gas from Iran to India.
8The SAGE pipeline is proposed to be 1400 km long and will carry 30 MMSCMD of gas.
Details
8SAGE -- promoted by the New Delhi based Siddho Mal Group, in JV with the UK-based Deepwater Technology Company -- is working with a global consortium of some of the most reputed companies in the field of deepwater pipelines, to create a multi billion dollar "energy corridor" that can transport gas from the Middle East to India, bypassing the Pakistan waters.
8The Indian company has been waiting fo lifting of sanctions on Iran befoer embarking on gas imports from Iran. Now that the sanctions are being lifted, both sides are willing to negotiate the terms and conditions for export of gas from Iran to India.
8The SAGE pipeline is proposed to be 1400 km long and will carry 30 MMSCMD of gas.
Details
If lobbies of Tehran’s more expensive hotels are any guide, the rush is already on, according to newspaper reports. Six months ago they sported only the odd Chinese businessman. Now they are alive with Westerners jostling for deals. Trade delegations have started to arrive. First off the mark after Iran struck a nuclear deal with world powers earlier this month was Germany’s vice-chancellor, Sigmar Gabriel, who took a group of executives to Iran’s capital on July 18th. All the activity notwithstanding, the initial rush to reconnoitre Iran will slowly but surely give way to a more measured approach for most. It will be months, if not years, before the sanctions on both countries will be lifted. Even then foreign firms will face big obstacles to conducting business, let alone making profits but nevertheless, the rush has begun.
8India has mounted a four-member official delegation to Iran but that may not be enough and it must be quickly followed by cabinet-minister level visit, like the Germans are already doing, as soon as possible. It is learnt that the delegation was keen on a package deal involving a $6.5 billion payment for crude oil in return for rights to oil and gas assets and other projects. But the Iranians don't seem to be in hurry to walk into an understanding knowing well that the world has come knocking on its doors.
8The attempt should be to hold on the Farzad-B field because of its massive recoverable reserves -- of around 12 TCF of gas -- as the Iranians are now likely to take a more inflexible stand as they will find many suitors for their oil and gas assets.
8The Iranian Ambassador in Delhi set the tone by saying that India should move beyond "cheap negotiations" to grab the grand opportunities.
Interventions will be required from the highest level to break the logjam created by OVL's insistence on better terms for the field but the opportunity may have been lost already as the Iranians have put the block on auction.
8The fact that the Indians have stood by Iran during difficult times is something that should be leveraged to the country's advantage even though the Iranians are notoriously self indulgent in these matters.
8The Prime Minister's grand design to use the Chabahar port in Iran to access the vast resources of Central Asia and build a sub-sea pipeline that will substitute the land route via Pakistan should not be allowed to be diluted by petty quibbling by minor bureaucrats. Details
8India has mounted a four-member official delegation to Iran but that may not be enough and it must be quickly followed by cabinet-minister level visit, like the Germans are already doing, as soon as possible. It is learnt that the delegation was keen on a package deal involving a $6.5 billion payment for crude oil in return for rights to oil and gas assets and other projects. But the Iranians don't seem to be in hurry to walk into an understanding knowing well that the world has come knocking on its doors.
8The attempt should be to hold on the Farzad-B field because of its massive recoverable reserves -- of around 12 TCF of gas -- as the Iranians are now likely to take a more inflexible stand as they will find many suitors for their oil and gas assets.
8The Iranian Ambassador in Delhi set the tone by saying that India should move beyond "cheap negotiations" to grab the grand opportunities.
Interventions will be required from the highest level to break the logjam created by OVL's insistence on better terms for the field but the opportunity may have been lost already as the Iranians have put the block on auction.
8The fact that the Indians have stood by Iran during difficult times is something that should be leveraged to the country's advantage even though the Iranians are notoriously self indulgent in these matters.
8The Prime Minister's grand design to use the Chabahar port in Iran to access the vast resources of Central Asia and build a sub-sea pipeline that will substitute the land route via Pakistan should not be allowed to be diluted by petty quibbling by minor bureaucrats. Details
In view of the planned expansion of the Kochi Refinery from the present 9.5 MMTPA to 15.5 MMTPA, BPCL has chalked out a plan for laying of an LPG pipeline from the refinery to Coimbatore to take care of the evacuation of the incremental LPG production at the refinery.
8BPCL has embarked on the expansion of its Kochi Refinery from the present refining capacity of 9.5 MMTPA to 15.5 MMTPA.
8Under the expanded capacity of the Kochi refinery, among other things, the production of LPG is slated to increase to about 1.26 MMTPA. Of the total incremental LPG production, an amount of around 0.5 MMTPA is expected to get consumed at Kochi only.
8Evacuation arrangement for the balance approximately 0.76 MMTPA of LPG needs to be in place, by the time the refinery expansion comes on stream.
8It is in this light that BPCL has decided to lay a 12-inch LPG pipeline upto its bottling plant at Coimbatore to meet its own requirement as well as feed gas to IOC`s bottling plants at Udayanperoor and Coimbatore and HPCL`s bottling plant at Palakkad by providing tap-offs.
8All the bottling plants are currently depending on LPG transportation by road. By laying the new pipeline, BPCL will be saving substantially on the tanker-based transportation in terms of both cost as well as logistics. Details
8BPCL has embarked on the expansion of its Kochi Refinery from the present refining capacity of 9.5 MMTPA to 15.5 MMTPA.
8Under the expanded capacity of the Kochi refinery, among other things, the production of LPG is slated to increase to about 1.26 MMTPA. Of the total incremental LPG production, an amount of around 0.5 MMTPA is expected to get consumed at Kochi only.
8Evacuation arrangement for the balance approximately 0.76 MMTPA of LPG needs to be in place, by the time the refinery expansion comes on stream.
8It is in this light that BPCL has decided to lay a 12-inch LPG pipeline upto its bottling plant at Coimbatore to meet its own requirement as well as feed gas to IOC`s bottling plants at Udayanperoor and Coimbatore and HPCL`s bottling plant at Palakkad by providing tap-offs.
8All the bottling plants are currently depending on LPG transportation by road. By laying the new pipeline, BPCL will be saving substantially on the tanker-based transportation in terms of both cost as well as logistics. Details
Petroleum and Natural Gas Regulatory Board (PNGRB) has issued separate maps of gas and petroleum pipelines in the country.
8Along with this, a map of the city gas distribution (CGD) networks (including all authorized, operational and proposed) in the country are also carried.
8These maps can serve as useful reference material for feedstock and fuel source planning by fertilizer and other gas-based industries.
8The PNGRB has invited views and comments from all stakeholders on the maps within 30 days.
Click our Reports section to access the gas pipelines network maps. Details
8Along with this, a map of the city gas distribution (CGD) networks (including all authorized, operational and proposed) in the country are also carried.
8These maps can serve as useful reference material for feedstock and fuel source planning by fertilizer and other gas-based industries.
8The PNGRB has invited views and comments from all stakeholders on the maps within 30 days.
Click our Reports section to access the gas pipelines network maps. Details
The seismic study will carried out in vessels curently installed at LPG plants at Piyala (Haryana), Laru (Punjab), Loni (U.P) and Roorkee.
8Capacity and type of vessels are as follows:
-- Seven Horton Spheres of 1350 MT capacity
-- Six Horon Spheres of 650 MT capacity
-- Three Above Ground Bullets of 150 MT capacity
-- Two MSV of 1445 MT capacity
-- Three MSV of 1300 MT capacity
8A typical Storage vessel comprises of the following components:
-- Pressure Vessel shaped as a bullet or sphere
-- Columns, supporting load of the bullet filled with LPG
-- Foundations below the column, transferring the load to soil
-- Soil having specific properties depending upon the location
-- Associated LPG Pipeline
Click of Details for more. Details
8Capacity and type of vessels are as follows:
-- Seven Horton Spheres of 1350 MT capacity
-- Six Horon Spheres of 650 MT capacity
-- Three Above Ground Bullets of 150 MT capacity
-- Two MSV of 1445 MT capacity
-- Three MSV of 1300 MT capacity
8A typical Storage vessel comprises of the following components:
-- Pressure Vessel shaped as a bullet or sphere
-- Columns, supporting load of the bullet filled with LPG
-- Foundations below the column, transferring the load to soil
-- Soil having specific properties depending upon the location
-- Associated LPG Pipeline
Click of Details for more. Details
In wake of recent incidences of earthquakes at various locations countrywide, Bharat Petroleum Corporation Limited (BBPCL) has now embarked on a plan to assess the worthiness of vital structures in their LPG plants for such occurrences.
8Though the existing facilities at BPCL`s LPG plants have been designed and constructed according to the applicable guidelines at the time of construction, but during the course of time, there have been revisions in some of the applicable guidelines.
8Therefore, BPCL intends to reassess the stability of the existing LPG storage vessels.
8A detailed seismic analysis as defined in Clause 10.12 of BIS 1893-Part-4 will be carried out using standard acceptable software.
8The study is required to be carried out for three types of LPG storage vessel namely, Above ground Horton Spheres, Above Ground Bullets and Mounded Storage capacity.
Click on Details for more. Details
8Though the existing facilities at BPCL`s LPG plants have been designed and constructed according to the applicable guidelines at the time of construction, but during the course of time, there have been revisions in some of the applicable guidelines.
8Therefore, BPCL intends to reassess the stability of the existing LPG storage vessels.
8A detailed seismic analysis as defined in Clause 10.12 of BIS 1893-Part-4 will be carried out using standard acceptable software.
8The study is required to be carried out for three types of LPG storage vessel namely, Above ground Horton Spheres, Above Ground Bullets and Mounded Storage capacity.
Click on Details for more. Details
The central goverment has proposed fresh Emission and Noise standards for different types of engine specifications and this may have implications for the oil and gas industry.
8The emission and noise standards are expected to be effective from 1st january,2016 and 1st March,2016 respectively.
8Engine specifications are as follows:
-- Natural Gas/LPG driven engine upto 800kW
-- Petrol and NG or Petrol and LPG genset upto 19kW
-- Diesel and NG/LPG driven engine upto 1000kW
8Every manufacturer, importer or assembler of the concerned engine will then be required to obtain approval from certifying agencies
8The Central Pollution Control Board will be the nodal agency for implementation of the rules.
8Rules will not apply only for those engines which will be assembled, manufactured or imported for the purpose of export outside India.
8In addition to that, any engine intended for the purpose of sample (limited to four in number) and to be exported back within three months, and not for sale in india, will also be excluded.
Click on reports for more.
Details
8The emission and noise standards are expected to be effective from 1st january,2016 and 1st March,2016 respectively.
8Engine specifications are as follows:
-- Natural Gas/LPG driven engine upto 800kW
-- Petrol and NG or Petrol and LPG genset upto 19kW
-- Diesel and NG/LPG driven engine upto 1000kW
8Every manufacturer, importer or assembler of the concerned engine will then be required to obtain approval from certifying agencies
8The Central Pollution Control Board will be the nodal agency for implementation of the rules.
8Rules will not apply only for those engines which will be assembled, manufactured or imported for the purpose of export outside India.
8In addition to that, any engine intended for the purpose of sample (limited to four in number) and to be exported back within three months, and not for sale in india, will also be excluded.
Click on reports for more.
Details
8Malpractices detected at OMC retail outlets in last three years: Malpractices, including under-measurement and adulteration, were detected at a total of 3,711 retail outlets (ROs) in the country run by the three Oil Marketing Companies (OMCs).
--Of the total 3711 cases, 3516 were related to under-measurement, while the remaining 195 were related to adulteration.
--The website carries here, for reference purposes, state-wise and OMC-wise details of cases of under-measurement and adulteration detected at the ROs during the last three years (from FY 2012-13 to 2014-15) and the current year (April-June, 2015).
--Of the total cases detected, OMCs terminated 160 retail outlets for such irregularities. The state-wise and OMC-wise details of the ROs terminated is also carried.
8Number of 14.2 kg LPG cylinders in circulation in India: A total of 30.39 crore LPG cylinders (14.2 kg) were in circulation as on July 1, 2015.
--IOC leads the pack with 14.75 crore, followed by BPCL at 7.90 crore and HPCL at 7.75 crore.
--The website carries here, for reference purposes, OMC-wise number of cylinders in circulation in different states as on July 1, 2015.
--OMCs have reported that no LPG accidents were reported due to blasting of LPG cylinders on their own in the last three years and the current year. However, cases were reported where LPG cylinders got engulfed in fire caused by other sources resulting in blasts.
--The details of state/UT-wise accidents due to involvement of LPG equipments (reported in the last three years and the current year) is also carried. Details
--Of the total 3711 cases, 3516 were related to under-measurement, while the remaining 195 were related to adulteration.
--The website carries here, for reference purposes, state-wise and OMC-wise details of cases of under-measurement and adulteration detected at the ROs during the last three years (from FY 2012-13 to 2014-15) and the current year (April-June, 2015).
--Of the total cases detected, OMCs terminated 160 retail outlets for such irregularities. The state-wise and OMC-wise details of the ROs terminated is also carried.
8Number of 14.2 kg LPG cylinders in circulation in India: A total of 30.39 crore LPG cylinders (14.2 kg) were in circulation as on July 1, 2015.
--IOC leads the pack with 14.75 crore, followed by BPCL at 7.90 crore and HPCL at 7.75 crore.
--The website carries here, for reference purposes, OMC-wise number of cylinders in circulation in different states as on July 1, 2015.
--OMCs have reported that no LPG accidents were reported due to blasting of LPG cylinders on their own in the last three years and the current year. However, cases were reported where LPG cylinders got engulfed in fire caused by other sources resulting in blasts.
--The details of state/UT-wise accidents due to involvement of LPG equipments (reported in the last three years and the current year) is also carried. Details
MRPL has decided to raise the borrowing power of the Board of Directors of the company from the existing Rs 15,000 crore to Rs 25,000 crore.
8The company has completed and commissioned all the units of the Phase-III Expansion and Up-gradation project, comprising of an approved cost of Phase-Ill Refinery Project at Rs 12,160 crore, a polypropylene project at a cost of around Rs 1,804 crore and setting up of a Single Point Mooring (SPM) system at a cost of around Rs 1,044 crore.
8Other than this, the company has also acquired 51% equity in OMPL by investing Rs 1,275 crore. The company is also planning to expand its refining capacity from existing 15 MMTPA to 18 MMTPA and set up an integrated Linear Alkaline Benzene (LAB) project at an estimated cost of Rs 8,000 crore.
8The existing approved limit (by way of loans and/or issue of bonds, debentures or other securities) is likely to be exhausted in near future and it is in this light that the company has decided to enhance the borrowing limits upto Rs 25,000 crore, so that it can meet the fund requirements of the company.
8At present, a considerable part of the outlay for each project, apart from the internal accruals, is funded by debt components comprising of loans in Indian rupees from ONGC and OIDB and foreign currency debt through the ECB route.
8The enhancement of the borrowing limit to Rs 25,000 will have to be approved by the shareholders of the company.
8Before this, it was in the Annual General Meeting held on September 2009, that the shareholders had enhanced the borrowing power of the Board of Directors from Rs 6,500 crore to Rs 15,000 crore. Details
8The company has completed and commissioned all the units of the Phase-III Expansion and Up-gradation project, comprising of an approved cost of Phase-Ill Refinery Project at Rs 12,160 crore, a polypropylene project at a cost of around Rs 1,804 crore and setting up of a Single Point Mooring (SPM) system at a cost of around Rs 1,044 crore.
8Other than this, the company has also acquired 51% equity in OMPL by investing Rs 1,275 crore. The company is also planning to expand its refining capacity from existing 15 MMTPA to 18 MMTPA and set up an integrated Linear Alkaline Benzene (LAB) project at an estimated cost of Rs 8,000 crore.
8The existing approved limit (by way of loans and/or issue of bonds, debentures or other securities) is likely to be exhausted in near future and it is in this light that the company has decided to enhance the borrowing limits upto Rs 25,000 crore, so that it can meet the fund requirements of the company.
8At present, a considerable part of the outlay for each project, apart from the internal accruals, is funded by debt components comprising of loans in Indian rupees from ONGC and OIDB and foreign currency debt through the ECB route.
8The enhancement of the borrowing limit to Rs 25,000 will have to be approved by the shareholders of the company.
8Before this, it was in the Annual General Meeting held on September 2009, that the shareholders had enhanced the borrowing power of the Board of Directors from Rs 6,500 crore to Rs 15,000 crore. Details
The salient features of the Kochi-Coimbatore LPG pipeline are as under:
8Length of the 12-inch NB pipeline between takeoff and terminal point of proposed pipeline is 238 km.
8Transportation and distribution of max. 1.53 MMTPA (including 25% additional requirement as per regulations) of LPG from Kochi Refinery to Coimbatore.
8The flow-rate of LPG will be 328 m3/h.
8There will be three mounded storage vessels of capacity 2000 MT each (total 6000 MT) at Coimbatore. Installation of LPG loading facility shall also be at Coimbatore.
8The take off point will be at Kochi with the terminal point at Vallalur in Coimbtore. The pipeline will pass through Palakad.
8Pipeline will run through different districts of Kerala (199 km) and Tamil Nadu (39 km) between the take off and the terminal point.
8The capital cost of the project approximately works out to Rs 624.33 crore. Details
8Length of the 12-inch NB pipeline between takeoff and terminal point of proposed pipeline is 238 km.
8Transportation and distribution of max. 1.53 MMTPA (including 25% additional requirement as per regulations) of LPG from Kochi Refinery to Coimbatore.
8The flow-rate of LPG will be 328 m3/h.
8There will be three mounded storage vessels of capacity 2000 MT each (total 6000 MT) at Coimbatore. Installation of LPG loading facility shall also be at Coimbatore.
8The take off point will be at Kochi with the terminal point at Vallalur in Coimbtore. The pipeline will pass through Palakad.
8Pipeline will run through different districts of Kerala (199 km) and Tamil Nadu (39 km) between the take off and the terminal point.
8The capital cost of the project approximately works out to Rs 624.33 crore. Details
The construction of the $10 billion TAPI pipeline has been stuck, for quite some time, for want of a credible operator who will build and run the line, forcing Prime Minsiter Narendra Modi to even look at routing it through Iran and then via a subsea pipeline to India.
8No operator, or a consortium leader, wants to come forward to build the TAPI line till they are given a stake in the gas field in Turkmenistan that will feed the pipeline. It is because of this that the TAPI project has remained on the drawing board as the four nations -- Turkmenistan, Afghanistan, Pakistan and India -- have not been able to get an international firm to head a consortium, which will lay and operate the pipeline.
8Initially, the French giant Total SA had envisaged interest in leading the consortium of national oil companies of the four nations in the TAPI project but it backed off after Turkmenistan refused to accept its condition of a picking up stake in the gas field that will feed the pipeline.
8Turkmenistan has so far maintained that its law does not provide for giving foreign firms an equity stake in upstream gas field, without which western energy giants will not be interested to take the risk.
8Since the four state-owned firms, including GAIL, neither have the financial muscle nor the experience of cross-country line, an international company that will build and also operate the line in hostile territories of Afghanistan and Pakistan, is needed.
8The petroleum minister Dharmendra Pradhan has confirmed on July 27, 2015 that, as of now, no agreements have been signed with the participating countries to cooperate in an upstream stake in a gas field in Turkmenistan.
8Modi`s suggestion of an alternative land-sea route via Iran for transporting Turkmen gas to India will involve constructing a deepwater port in the Iranian coastal town of Chabahar from where gas can be injected into the Iran-Oman-India subsea pipeline.
8The question then will be whether GAIL or an Indian entity will have the capacity to build the pipeline from Turkmenistan via Iran to Chabahar or will an independent operator be available to build and operate the pipeline?
8Will the economics of such a pipeline work out to be feasible? For Modi, it is now a grand idea but the math has to be done to figure out whether the idea can be converted into reality. Details
8No operator, or a consortium leader, wants to come forward to build the TAPI line till they are given a stake in the gas field in Turkmenistan that will feed the pipeline. It is because of this that the TAPI project has remained on the drawing board as the four nations -- Turkmenistan, Afghanistan, Pakistan and India -- have not been able to get an international firm to head a consortium, which will lay and operate the pipeline.
8Initially, the French giant Total SA had envisaged interest in leading the consortium of national oil companies of the four nations in the TAPI project but it backed off after Turkmenistan refused to accept its condition of a picking up stake in the gas field that will feed the pipeline.
8Turkmenistan has so far maintained that its law does not provide for giving foreign firms an equity stake in upstream gas field, without which western energy giants will not be interested to take the risk.
8Since the four state-owned firms, including GAIL, neither have the financial muscle nor the experience of cross-country line, an international company that will build and also operate the line in hostile territories of Afghanistan and Pakistan, is needed.
8The petroleum minister Dharmendra Pradhan has confirmed on July 27, 2015 that, as of now, no agreements have been signed with the participating countries to cooperate in an upstream stake in a gas field in Turkmenistan.
8Modi`s suggestion of an alternative land-sea route via Iran for transporting Turkmen gas to India will involve constructing a deepwater port in the Iranian coastal town of Chabahar from where gas can be injected into the Iran-Oman-India subsea pipeline.
8The question then will be whether GAIL or an Indian entity will have the capacity to build the pipeline from Turkmenistan via Iran to Chabahar or will an independent operator be available to build and operate the pipeline?
8Will the economics of such a pipeline work out to be feasible? For Modi, it is now a grand idea but the math has to be done to figure out whether the idea can be converted into reality. Details
8PNGRB reviews process for levy and collection of "Other Charges": The Petroleum and Natural Gas Regulatory Board (PNGRB) has reviewed the process of levy and collection of "Other Charges".
--In order to lend greater clarity to the levy and uniformity in collection, the Board has reiterated that "Other Charges" must be paid by authorized entities in respect of regulated activities as per section 11 (e) of PNGRB Act.
--All entities must pay "Other Charges" for each completed financial year by September 30, of the ensuing financial year.
--Separate instructions will be issued by PNGRB regarding payment of arrears by defaulting entities.
--The Board has sought views and comments from entities with regard to submission of "Other Charges" within 30 days.
--It is pertinent to note that Clause (g) of Sub-section (2) of Section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006, empowers the Board to levy fee and "Other Charges" for certain services as determined by regulations.
8PNGRB issues list of pending court cases: The PNGRB has issued a list of pending court cases involving companies such as GAIL and GSPC.
--Along with the name of the parties to the cases, the next date and time of the hearings is also given.
Click here for more information Details
--In order to lend greater clarity to the levy and uniformity in collection, the Board has reiterated that "Other Charges" must be paid by authorized entities in respect of regulated activities as per section 11 (e) of PNGRB Act.
--All entities must pay "Other Charges" for each completed financial year by September 30, of the ensuing financial year.
--Separate instructions will be issued by PNGRB regarding payment of arrears by defaulting entities.
--The Board has sought views and comments from entities with regard to submission of "Other Charges" within 30 days.
--It is pertinent to note that Clause (g) of Sub-section (2) of Section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006, empowers the Board to levy fee and "Other Charges" for certain services as determined by regulations.
8PNGRB issues list of pending court cases: The PNGRB has issued a list of pending court cases involving companies such as GAIL and GSPC.
--Along with the name of the parties to the cases, the next date and time of the hearings is also given.
Click here for more information Details
The Petroleum and Natural Gas Regulatory Board (PNGRB) has okayed the transfer of the Kota Geographical Area from GAIL Gas Ltd (GGL) to the Rajasthan State Gas Ltd. (RSGL), a JV of GAIL Gas and Rajasthan State Petroleum Corporation Limited (RSPCL).
8GGL's authorization (dated June 1, 2009) for the Kota GA has been transferred in favour of RSGL, subject to the condition that GGL will continue to hold majority equity share after transfer of the assets and RSGL will be obliged to inform the Board in case, any changes are made in the equity structure of RSGL.
8Besides, RSGL will also have to abide by the existing and modified terms and conditions of the authorization including compliance with the service obligation and adherence to the quality of service standard.
8With the approval, RSGL has now been permitted to take over the activities of laying, building, operating or expanding the CGD network in the Kota area.
8RSGL will now carry out a phase-wise expansion of the natural gas downstream distribution network in the state.
8Under Phase-I, a mega CNG mother station would be set up at Neemrana, along with a daughter booster station at Kukas (near Jaipur), while under Phase-II, CNG networks in cities, such as Jaipur, Ajmer, Sikar and Udaipur would be developed. Under Phase-III, the company plans to meet the needs of natural gas by importing LNG from Dahej for remotely located districts which are at present not covered by pipeline connectivity. Details
8GGL's authorization (dated June 1, 2009) for the Kota GA has been transferred in favour of RSGL, subject to the condition that GGL will continue to hold majority equity share after transfer of the assets and RSGL will be obliged to inform the Board in case, any changes are made in the equity structure of RSGL.
8Besides, RSGL will also have to abide by the existing and modified terms and conditions of the authorization including compliance with the service obligation and adherence to the quality of service standard.
8With the approval, RSGL has now been permitted to take over the activities of laying, building, operating or expanding the CGD network in the Kota area.
8RSGL will now carry out a phase-wise expansion of the natural gas downstream distribution network in the state.
8Under Phase-I, a mega CNG mother station would be set up at Neemrana, along with a daughter booster station at Kukas (near Jaipur), while under Phase-II, CNG networks in cities, such as Jaipur, Ajmer, Sikar and Udaipur would be developed. Under Phase-III, the company plans to meet the needs of natural gas by importing LNG from Dahej for remotely located districts which are at present not covered by pipeline connectivity. Details
The website carries here, for reference purposes, a snapshot of India`s oil and gas data (updated upto June 2015) prepared by the PPAC. The following details are carried in the document which can serve as a ready reckoner:
8Selected indicators of the Indian economy
8Import dependency
8Estimated balance of trade
8Indigenous crude oil production
8Domestic oil and gas production vis-a-vis overseas production
8CBM development in India
8Company-wise and refinery-wise installed capacity and crude oil processing
8High sulphur (HS) and low sulphur (LS) crude oil processing
8Gross Refining Margins (GRM) across companies and refineries
8GRM of North-East refineries, excluding excise duty benefit
8Gas production, consumption and import data
8Production and consumption of petroleum products
8Self sufficiency in petroleum products
8Industry marketing infrastructure in terms of number of terminals, depots aviation fuel stations, retail outlets, SKO/LDO dealerships and LPG bottling plants owned by oil companies.
8Company-wise pipeline (gas, crude and other products) infrastructure
8Information on prices, taxes and under recoveries
8Details of conversion factors and volume conversion.
Click here for more information Details
8Selected indicators of the Indian economy
8Import dependency
8Estimated balance of trade
8Indigenous crude oil production
8Domestic oil and gas production vis-a-vis overseas production
8CBM development in India
8Company-wise and refinery-wise installed capacity and crude oil processing
8High sulphur (HS) and low sulphur (LS) crude oil processing
8Gross Refining Margins (GRM) across companies and refineries
8GRM of North-East refineries, excluding excise duty benefit
8Gas production, consumption and import data
8Production and consumption of petroleum products
8Self sufficiency in petroleum products
8Industry marketing infrastructure in terms of number of terminals, depots aviation fuel stations, retail outlets, SKO/LDO dealerships and LPG bottling plants owned by oil companies.
8Company-wise pipeline (gas, crude and other products) infrastructure
8Information on prices, taxes and under recoveries
8Details of conversion factors and volume conversion.
Click here for more information Details
Mangalore Refinery and Petrochemicals Limited is firmed set on enhancing its petrochemical footprint.
8The company has signed an MoU with Government of Karnataka for setting up a Linear Alkyl Benzene (LAB) Plant and expanding its refining capacity between 18-21 MMTPA subject to techno economic viability with an approximate investment of 8,500 Cr.
8Moreover after the completion of refinery up-gradation and expansion project at a cost of Rs.12,485 crore. MRPL is now capable of processing a wide range of crude, from 18 API (blended) to 46 API gravity and light to heavy or sour to sweet while also processing High TAN crude oil
8The new units subsequent to recent expansion will increase the distillate yield of the refinery to around 80% and also produce value added product (propylene). The cost incurred for this project till date is Rs. 1,227 crore. The propylene produced will be converted to polypropylene in its polypropylene unit.
8Despite a competitive market, the company is confident of channelizing polypropylene into the southern markets.
8The liquid fuel market is shrinking on account of ingress of gas pipelines, as customers shift to gas from FO and HSD. The company's petcoke plant is doing well but evacuation problems can impact the continuous operation of the DCU (Delayed Coker Unit) in the refinery.
8Company SPM, set up 16 Km from the shore, have been handling Very Large Crude Carrier (VLCC) for some time now and as of March this year, a total of 108 ships has been unloaded at the SPM, handling total crude cargo of approximately 14.5 million tonnes. This facility has also decongested existing crude unloading berth at New Mangalore Port
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8The company has signed an MoU with Government of Karnataka for setting up a Linear Alkyl Benzene (LAB) Plant and expanding its refining capacity between 18-21 MMTPA subject to techno economic viability with an approximate investment of 8,500 Cr.
8Moreover after the completion of refinery up-gradation and expansion project at a cost of Rs.12,485 crore. MRPL is now capable of processing a wide range of crude, from 18 API (blended) to 46 API gravity and light to heavy or sour to sweet while also processing High TAN crude oil
8The new units subsequent to recent expansion will increase the distillate yield of the refinery to around 80% and also produce value added product (propylene). The cost incurred for this project till date is Rs. 1,227 crore. The propylene produced will be converted to polypropylene in its polypropylene unit.
8Despite a competitive market, the company is confident of channelizing polypropylene into the southern markets.
8The liquid fuel market is shrinking on account of ingress of gas pipelines, as customers shift to gas from FO and HSD. The company's petcoke plant is doing well but evacuation problems can impact the continuous operation of the DCU (Delayed Coker Unit) in the refinery.
8Company SPM, set up 16 Km from the shore, have been handling Very Large Crude Carrier (VLCC) for some time now and as of March this year, a total of 108 ships has been unloaded at the SPM, handling total crude cargo of approximately 14.5 million tonnes. This facility has also decongested existing crude unloading berth at New Mangalore Port
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For reference purpose website here carries a list of energy audits to be by Petroleum Conservation Research Association in 2015-16.
8List contains names of companies regional wise:
--Northern Region
--Eastern Region
--Western Region
--Southern Region
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8List contains names of companies regional wise:
--Northern Region
--Eastern Region
--Western Region
--Southern Region
Click on Reports section for more details. Details
Lower price of crude oil has saved valuable foreign exchange for India.
8Oil imports during June, 2015 were valued at US $8676.38 million which was 34.97 per cent lower than oil imports valued at US $13342.79 million in the corresponding period last year.
8Oil imports during April-June, 2015-16 were valued at US $ 24657.97 million which was 39.54 per cent lower than the oil imports of US $ 40785.50 million in the corresponding period last year.
8Whereas total imports during June, 2015 were valued at US $33116.55 million (Rs. 211484.61 crore) which was 13.40 per cent lower in Dollar terms and 7.42 per cent lower in Rupee terms over the level of imports valued at US $ 38242.96 million (Rs. 228427.88 crore) in June, 2014.
8Cumulative value of imports for the period April-June 2015-16 was US $98916.56 million (Rs 627830.30 crore) as against US $ 113196.23 million (Rs 676694.53 crore) registering a negative growth of 12.61 per cent in Dollar terms and 7.22 per cent in Rupee terms over the same period last year.
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8Oil imports during June, 2015 were valued at US $8676.38 million which was 34.97 per cent lower than oil imports valued at US $13342.79 million in the corresponding period last year.
8Oil imports during April-June, 2015-16 were valued at US $ 24657.97 million which was 39.54 per cent lower than the oil imports of US $ 40785.50 million in the corresponding period last year.
8Whereas total imports during June, 2015 were valued at US $33116.55 million (Rs. 211484.61 crore) which was 13.40 per cent lower in Dollar terms and 7.42 per cent lower in Rupee terms over the level of imports valued at US $ 38242.96 million (Rs. 228427.88 crore) in June, 2014.
8Cumulative value of imports for the period April-June 2015-16 was US $98916.56 million (Rs 627830.30 crore) as against US $ 113196.23 million (Rs 676694.53 crore) registering a negative growth of 12.61 per cent in Dollar terms and 7.22 per cent in Rupee terms over the same period last year.
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Land acquisition for big extractive industries such as oil and gas is not only a problem in India, but everywhere else around the world.
8As large-scale oil, gas and mining projects move to remote areas, they threaten to generate adverse impacts for the local communities and indigenous peoples who inhabit the areas. So, the land acquisition process has become a problem fraught with uncertainities.
8These projects often face social conflict with the local population, which could result in project and production delays.
8It is in this context that Oxfam, an NGO, carried out a study on the social aspect of these projects. The organization is of the view that to reduce the risk of social conflict and to safeguard human rights of the effected people, an established process -- dubbed Free, Prior and Informed Consent (FPIC) -- should be followed.
8Under the FPIC process, the effected communities should have the opportunity to access full information, participate meaningfully in the impact assessment and negotiations and give their consent to the project development.
8As per the Oxfam`s report, no oil and gas companies follows the FPIC process.
8As per the report, a world-class mining project stands to lose approximately $20 million per week in lost productivity as a result of production delays stemming from social conflict.
8In this scenario, FPIC can serve as an invaluable risk management tool for extraction companies, says Oxfam.
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8As large-scale oil, gas and mining projects move to remote areas, they threaten to generate adverse impacts for the local communities and indigenous peoples who inhabit the areas. So, the land acquisition process has become a problem fraught with uncertainities.
8These projects often face social conflict with the local population, which could result in project and production delays.
8It is in this context that Oxfam, an NGO, carried out a study on the social aspect of these projects. The organization is of the view that to reduce the risk of social conflict and to safeguard human rights of the effected people, an established process -- dubbed Free, Prior and Informed Consent (FPIC) -- should be followed.
8Under the FPIC process, the effected communities should have the opportunity to access full information, participate meaningfully in the impact assessment and negotiations and give their consent to the project development.
8As per the Oxfam`s report, no oil and gas companies follows the FPIC process.
8As per the report, a world-class mining project stands to lose approximately $20 million per week in lost productivity as a result of production delays stemming from social conflict.
8In this scenario, FPIC can serve as an invaluable risk management tool for extraction companies, says Oxfam.
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RIL`s EBIT from its domestic E&P business has dropped a whopping 83% to just Rs 83 crore) in the first quarter of 2015-16 on a revenue of Rs 1200 crore, down from Rs 487 crore on revenues of Rs 1577 crore in the corresponding period in the previous year
8This is a deep decline indeed and is explained by declining production and lower crude prices.
8There is no immediate hope of a rise in either revenues or margins, gas output is expected to remain flat or even decline while no uptake is expected in gas or crude prices.
8Side tracking activities or on in the A-well in the block how successful this will be in the face of no very encouraging results from earlier side tracking work remains a moot point.
8A third compressor in the onshore terminal has been commission in the first quarter of this year and while this has reduced the arrival pressure to the terminal, it is not known how much it will contribute to output growth if at all.
8While RIL`s plight is bad, that of BP, a 30% partner in RIL`s D-6 and other blocks is even worse. If RIL`s EBIT is low, that of the multinational will just be around Rs 40 crore for the quarter.
8This is an extremely poor performance, given that BP has already spent $7.2 billion in acquiring the 30% stake, and has spent more money since by way of cash calls and additional capital investments. The multinational will also have to provision for contingent liabilities arising out of deductions being made by the government for capital cost recovery.
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8This is a deep decline indeed and is explained by declining production and lower crude prices.
8There is no immediate hope of a rise in either revenues or margins, gas output is expected to remain flat or even decline while no uptake is expected in gas or crude prices.
8Side tracking activities or on in the A-well in the block how successful this will be in the face of no very encouraging results from earlier side tracking work remains a moot point.
8A third compressor in the onshore terminal has been commission in the first quarter of this year and while this has reduced the arrival pressure to the terminal, it is not known how much it will contribute to output growth if at all.
8While RIL`s plight is bad, that of BP, a 30% partner in RIL`s D-6 and other blocks is even worse. If RIL`s EBIT is low, that of the multinational will just be around Rs 40 crore for the quarter.
8This is an extremely poor performance, given that BP has already spent $7.2 billion in acquiring the 30% stake, and has spent more money since by way of cash calls and additional capital investments. The multinational will also have to provision for contingent liabilities arising out of deductions being made by the government for capital cost recovery.
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RIL is now working on producing gas from its CBM blocks in Sohagpur on the assumption that it will be able to elicit a market price for CBM.
8The first gas from RIL`s twin CBM blocks -- Sohagpur (East) and Sohagpur (West) -- is expected to flow by 2H, 2015-16.
8The company plans to produce up to 3.5 mmscmd of gas from the two blocks
8The Phase-I development activities, which include drilling and completion of 229 wells, setting of of two gas gathering stations (GGS-11 and GGS-12) and eight water gathering stations, with associated pipelines, are nearing completion.
8Land acquisition for Phase-I well-sites and facilities has been completed.
8Along with this, 80 km of infield pipeline laying work has also been completed.
8The mechanical completion of GGS-11 has been achieved and it is expected to be ready for start-up production by the end of 2Q, FY16. The construction activities and installation of equipment, at GGS-12, is also nearing completion.
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8The first gas from RIL`s twin CBM blocks -- Sohagpur (East) and Sohagpur (West) -- is expected to flow by 2H, 2015-16.
8The company plans to produce up to 3.5 mmscmd of gas from the two blocks
8The Phase-I development activities, which include drilling and completion of 229 wells, setting of of two gas gathering stations (GGS-11 and GGS-12) and eight water gathering stations, with associated pipelines, are nearing completion.
8Land acquisition for Phase-I well-sites and facilities has been completed.
8Along with this, 80 km of infield pipeline laying work has also been completed.
8The mechanical completion of GGS-11 has been achieved and it is expected to be ready for start-up production by the end of 2Q, FY16. The construction activities and installation of equipment, at GGS-12, is also nearing completion.
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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 is progressing ahead of its schedule.
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 in Madhya Pradesh.
8Land acquisition has been completed for all critical installations. Right to Use (RoU) for 300 km out of 302 km is handed over to pipeline construction contractors.
8Three out of four river crossings have been completed and installation of a compressor station, along with other construction work, is in progress.
8The company has been authorized to lay the 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.
8RIL plans to produce 3.5 MMSCMD of gas from its twin Sohagpur CBM blocks.
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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 is progressing ahead of its schedule.
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 in Madhya Pradesh.
8Land acquisition has been completed for all critical installations. Right to Use (RoU) for 300 km out of 302 km is handed over to pipeline construction contractors.
8Three out of four river crossings have been completed and installation of a compressor station, along with other construction work, is in progress.
8The company has been authorized to lay the 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.
8RIL plans to produce 3.5 MMSCMD of gas from its twin Sohagpur CBM blocks.
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CBM production does not have the scale or conventional gas. Output is slow to grow and it takes time to move up to full capacity.
8According to projections given by RIL, output will be around 1.46 MMm3 from the SP (East)-CBM-2001/1 field in the first year of production, going up to 109 MMm3 by the third year
8From the SP (West)-CBM-2001/1 block, CBM product is expected to clock 36.50 MMm3 in first year, going up to 321 MMm3 in the third year.
8While these are FDP figures, the company expects to better them going ahead.
8The project has been delayed due to court cases and protests by local residents but these, the company claims are not being sorted out.
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8According to projections given by RIL, output will be around 1.46 MMm3 from the SP (East)-CBM-2001/1 field in the first year of production, going up to 109 MMm3 by the third year
8From the SP (West)-CBM-2001/1 block, CBM product is expected to clock 36.50 MMm3 in first year, going up to 321 MMm3 in the third year.
8While these are FDP figures, the company expects to better them going ahead.
8The project has been delayed due to court cases and protests by local residents but these, the company claims are not being sorted out.
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The worrying part of RIL`s Q-1 performance is the admission that the new side track wells in RIL`s D-6 well are not performing as per expectation. This could well mean that attempts to salvage the inexorable decline in the exiting D-1 and D-3 fields are not showing results.
8The failure is already showing, with the KG-D6 block producing 37 BCF of natural gas in 1Q FY16, which is 13% lower than what the company produced during the corresponding quarter in the previous year.
8Not only this, the crude and condensate production was also lower compared to the last year`s production.
8The block produced 0.44 million barrels of crude oil and 0.08 million barrels of condensate during the quarter which is 16% and 6% lower respectively on a Y-o-Y basis.
8The production is lower because of the natural decline at the fields coupled with the under performance of the new side tracks wells.
8In the January-March 2015, quarter, gas output from the block, which includes Dhirubhai-1 and 3 (D1&D3) and the MA fields, averaged 11.5 mmscmd.
8The KG-D6 block has a total of 19 oil and gas discoveries, of which only three (D-1, D-3 and MA) are producing.
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8The failure is already showing, with the KG-D6 block producing 37 BCF of natural gas in 1Q FY16, which is 13% lower than what the company produced during the corresponding quarter in the previous year.
8Not only this, the crude and condensate production was also lower compared to the last year`s production.
8The block produced 0.44 million barrels of crude oil and 0.08 million barrels of condensate during the quarter which is 16% and 6% lower respectively on a Y-o-Y basis.
8The production is lower because of the natural decline at the fields coupled with the under performance of the new side tracks wells.
8In the January-March 2015, quarter, gas output from the block, which includes Dhirubhai-1 and 3 (D1&D3) and the MA fields, averaged 11.5 mmscmd.
8The KG-D6 block has a total of 19 oil and gas discoveries, of which only three (D-1, D-3 and MA) are producing.
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An OPEC summit is a big event by any yardstick. The leaders of the world`s largest oil exporters were gathered in the summit that took place last month.
8A lot of discussions took place, and for reference purposes, the website carries here the details of the five crucial sessions that took place over two day in Vienna.
The sessions were on:
8Global energy outlooks
8Oil market stability
8Production capacity and investment
8Technology and the environment
8Prospects for the world economy
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8A lot of discussions took place, and for reference purposes, the website carries here the details of the five crucial sessions that took place over two day in Vienna.
The sessions were on:
8Global energy outlooks
8Oil market stability
8Production capacity and investment
8Technology and the environment
8Prospects for the world economy
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The website carries here, for reference purposes, the shareholding pattern of the following companies in the oil and gas sector:
8Reliance Industries Ltd
8Assam Company (India) Ltd
8CPCL
8Deep Industries
8Global Offshore
8Engineers India Ltd
8GSPL
8Balmer Lawrie & Co
Click here for Details Details
8Reliance Industries Ltd
8Assam Company (India) Ltd
8CPCL
8Deep Industries
8Global Offshore
8Engineers India Ltd
8GSPL
8Balmer Lawrie & Co
Click here for Details Details
Taking a cue from the recent success in USA and Canada in commercially producing oil and natural gas from otherwise tight and ultra-low permeable shale formations, ONGC too has decided to drill a total of 17 R&D wells to assess the shale gas/oil potential in Cambay, Krishna-Godavari and Cauvery basin nominated blocks.
8Accordingly, the E&P major has requested the environment ministry to amend the existing environment clearances (ECs) for the respective blocks so that it can take up drilling of shale wells, besides conventional oil and gas wells, for which ECs have already been granted.
8Last year, the ministry had announced a policy for shale gas and oil exploration by national oil companies (NOCs) in only nomination blocks. Under this policy, ONGC has to identify and submit proposals for 50 for PEL/PML blocks.
8To start with, ONGC has decided to drill a total of 17 R&D wells in the three basins. Of the 17 wells, 11 wells are in the Cambay basin, five in the KG basin and one in the Cauvery basin.
8ONGC will drill at least one well (two wells in blocks having area more than 200 sq km) for assessment of shale gas and oil in each of these blocks By March 2017.
8The wells will be R&D wells (or an Assessment well) for shale gas or oil is not different from a typical conventional exploratory well in the sense that initial shale gas wells are primarily vertical like any other conventional exploratory well. Details
8Accordingly, the E&P major has requested the environment ministry to amend the existing environment clearances (ECs) for the respective blocks so that it can take up drilling of shale wells, besides conventional oil and gas wells, for which ECs have already been granted.
8Last year, the ministry had announced a policy for shale gas and oil exploration by national oil companies (NOCs) in only nomination blocks. Under this policy, ONGC has to identify and submit proposals for 50 for PEL/PML blocks.
8To start with, ONGC has decided to drill a total of 17 R&D wells in the three basins. Of the 17 wells, 11 wells are in the Cambay basin, five in the KG basin and one in the Cauvery basin.
8ONGC will drill at least one well (two wells in blocks having area more than 200 sq km) for assessment of shale gas and oil in each of these blocks By March 2017.
8The wells will be R&D wells (or an Assessment well) for shale gas or oil is not different from a typical conventional exploratory well in the sense that initial shale gas wells are primarily vertical like any other conventional exploratory well. Details
The cost of drilling of the 17 R&D shale wells is estimated at Rs 625 crore.
8The depth of the wells is in the range of 2,000-4,500 metres.
8As exploratory drilling is a temporary activity, each well will take around 60-90 days for drilling.
8As ONGC has already been granted an environment clearance (EC) for drilling in the Cambay, Krishna-Godavari and Cauvery basins, it has requested the MOEF to amend the existing EC so that it can go ahead with the assessment of the shale gas/oil potential in the 17 locations.
8If the exploratory drilling is successful, ONGC will go for developmental activities for which it will seek separate clearances from the ministry. Details
8The depth of the wells is in the range of 2,000-4,500 metres.
8As exploratory drilling is a temporary activity, each well will take around 60-90 days for drilling.
8As ONGC has already been granted an environment clearance (EC) for drilling in the Cambay, Krishna-Godavari and Cauvery basins, it has requested the MOEF to amend the existing EC so that it can go ahead with the assessment of the shale gas/oil potential in the 17 locations.
8If the exploratory drilling is successful, ONGC will go for developmental activities for which it will seek separate clearances from the ministry. Details
817 states do not get any CNG supply: There are total of 17 states and 3 Union Territories which do not receive any CNG supply.
--The 17 states are: Arunachal Pradesh, Bihar, Chattisgarh, Goa, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tamil Nadu, Uttarakhand, and West Bengal.
--The three UTs which do not receive any CNG supply are Andaman and Nicobar Islands, Lakshadweep and Puducherry.
8Demurrage costs incurred by OMCs in the last three years: The three Oil Marketing Companies (OMCs) -- HPCL, BPCL and IOC -- have to pay demurrage costs due to lack of requisite infrastructure at domestic ports. The three OMC paid a total of Rs 546.23 crores during 2014-15.
--The highest was paid by IOC at Rs 355.62 crores, followed by HPCL at Rs 145.02 crore and BPCL with Rs 45.59 crore.
--Similar details of demurrage cost incurred by the three OMCs is also carried for 2012-13 and 2013-14. Details
--The 17 states are: Arunachal Pradesh, Bihar, Chattisgarh, Goa, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tamil Nadu, Uttarakhand, and West Bengal.
--The three UTs which do not receive any CNG supply are Andaman and Nicobar Islands, Lakshadweep and Puducherry.
8Demurrage costs incurred by OMCs in the last three years: The three Oil Marketing Companies (OMCs) -- HPCL, BPCL and IOC -- have to pay demurrage costs due to lack of requisite infrastructure at domestic ports. The three OMC paid a total of Rs 546.23 crores during 2014-15.
--The highest was paid by IOC at Rs 355.62 crores, followed by HPCL at Rs 145.02 crore and BPCL with Rs 45.59 crore.
--Similar details of demurrage cost incurred by the three OMCs is also carried for 2012-13 and 2013-14. Details
IOC's Paradip-Haldia-Durgapur LPG pipeline (PHDPL) is nearing completion but the work of laying the pipeline through five river crossings is turning out to be a tough task.
8The company plans to install 10.75-inch OD pipelines across the five river crossings.
8While two pipelines will be laid in the Paradip-Haldia section across Mahanadi and Subarnarekha rivers, one will be laid in the Haldia-Durgapur section across the Rupnarayan river.
8The length of the pipelines at the river crossings will be: Mahanadi (1,300 metres), Subarnarekha (1,200 metres) and Rupnarayan (1,150 metres).
8The other two pipelines will be laid through the Hoogly river at the Mahishrekha and Budge-Budge section and at the Belmuri-Kalyani section.
8The length at the Mahishrekha-Budge-Budge and Belmuri-Kalyani sections will be 1,800 metres and 1,300 metres, respectively.
8The estimated time to lay down the pipelines across all the five river crossing is about ten months.
8The project involves laying of a 680 km long pipeline, along with associated facilities, for transportation of LPG from Paradip and Haldia refineries to the company's bottling plants at Balasore, Budge-Budge, Kalyani and Durgapur. Details
8The company plans to install 10.75-inch OD pipelines across the five river crossings.
8While two pipelines will be laid in the Paradip-Haldia section across Mahanadi and Subarnarekha rivers, one will be laid in the Haldia-Durgapur section across the Rupnarayan river.
8The length of the pipelines at the river crossings will be: Mahanadi (1,300 metres), Subarnarekha (1,200 metres) and Rupnarayan (1,150 metres).
8The other two pipelines will be laid through the Hoogly river at the Mahishrekha and Budge-Budge section and at the Belmuri-Kalyani section.
8The length at the Mahishrekha-Budge-Budge and Belmuri-Kalyani sections will be 1,800 metres and 1,300 metres, respectively.
8The estimated time to lay down the pipelines across all the five river crossing is about ten months.
8The project involves laying of a 680 km long pipeline, along with associated facilities, for transportation of LPG from Paradip and Haldia refineries to the company's bottling plants at Balasore, Budge-Budge, Kalyani and Durgapur. Details
The installation of pipelines at five crossings has been planned for execution through the Horizontal Directional Drilling (HDD) technique.
8IOC has floated a tender for laying of the pipeline through the river crossings where the contractor will be mandated to take delivery of the pipes and transport them to the work sites.
8The contractor will also be responsible for supply, transportation and fabrication of conduit for OFC with an inner duct, including welding of steel pipes and joining for making the conduit ready for installation along with the
mainline pipe.
8The scope of work also includes pressure testing of HDPE pipes, collection and interpretation of data, design, engineering, supply of materials and mobilization of skilled and unskilled personnel.
8Along with this, the contractor will have to design, supply, install and commission Temporary Cathodic Protection (TCP) works for the pipeline across the river crossings.
8Preparation of reference documents for the HDD crossings, which shall include As-Built drawings and datasheets, will also be part of the scope of work.
8The scope of work also includes supply, installation, testing and commissioning of sacrificial type magnesium anodes at suitable locations as per the design. Details
8IOC has floated a tender for laying of the pipeline through the river crossings where the contractor will be mandated to take delivery of the pipes and transport them to the work sites.
8The contractor will also be responsible for supply, transportation and fabrication of conduit for OFC with an inner duct, including welding of steel pipes and joining for making the conduit ready for installation along with the
mainline pipe.
8The scope of work also includes pressure testing of HDPE pipes, collection and interpretation of data, design, engineering, supply of materials and mobilization of skilled and unskilled personnel.
8Along with this, the contractor will have to design, supply, install and commission Temporary Cathodic Protection (TCP) works for the pipeline across the river crossings.
8Preparation of reference documents for the HDD crossings, which shall include As-Built drawings and datasheets, will also be part of the scope of work.
8The scope of work also includes supply, installation, testing and commissioning of sacrificial type magnesium anodes at suitable locations as per the design. Details
The contractor hired for laying the pipeline at the five river crossings will have to deploy two drilling rigs to complete the work
8The rigs will have to be capable of drilling using the Horizontal Directional Drilling (HDD) method.
8The designed pull capacity (down hole) of the first HDD rig must be adequate enough to pull the HDD section of the pipeline of 1800 metres length, along with the conduit of OFCs and the reamer, so that it develops sufficient torque (minimum 225 tonnes) for drilling.
8The designed pull capacity (down hole) of the second rig, capable of pulling the HDD section of the pipeline of 1300 m length, should be a minimum of 200 tonne.
8Depending on exigencies of work, rigs of higher capacities can also be deployed at the site.
8IOC has floated a tender for the entire work (laying of pipelines) whose last submission date is August 20, 2015. Details
8The rigs will have to be capable of drilling using the Horizontal Directional Drilling (HDD) method.
8The designed pull capacity (down hole) of the first HDD rig must be adequate enough to pull the HDD section of the pipeline of 1800 metres length, along with the conduit of OFCs and the reamer, so that it develops sufficient torque (minimum 225 tonnes) for drilling.
8The designed pull capacity (down hole) of the second rig, capable of pulling the HDD section of the pipeline of 1300 m length, should be a minimum of 200 tonne.
8Depending on exigencies of work, rigs of higher capacities can also be deployed at the site.
8IOC has floated a tender for the entire work (laying of pipelines) whose last submission date is August 20, 2015. Details
Jul 23 : Bad times for GAIL-I: PNGRB imposes penalty of Rs 20 lakh for Tatipaka-Lanco pipeline blast
Fixing the responsibility of the blast that occurred in the GAIL's 18-inch Tatipaka to Lanco gas pipeline in Andhra Pradesh, the Petroleum and Natural Gas Regulatory Board (PNGRB) has imposed a civil penalty of Rs 20 lakh on the gas major.
8The PNGRB has imposed the fine after GAIL, during one of the hearing on the matter, admitted to various lapses on its part agreeing that the pipeline was designed to transport dry gas but was used for transporting wet gas having condensate and water. This caused corrosion and subsequent leak from the pipeline lying four meters below the ground. An ignition led to explosion and the subsequent fire, killing at least 29 persons and injuring 10 others.
8The transportation of wet gas has been the principal reason of failure of pipeline, the PNGRB has said in its order.
8Then again, GAIL has also apparently flouted the declaration given to the statutory authorities by not providing a Gas Dehydration Unit at Tatipaka even though the design document submitted to Petroleum Safety and Explosives Organisation (PESO) indicated provision for a Gas Dehydration Unit.
8The penalty has been imposed under Section 28 of the PNGRB Act, 2006.
Click on our Reports section to access the PNGRB order Details
8The PNGRB has imposed the fine after GAIL, during one of the hearing on the matter, admitted to various lapses on its part agreeing that the pipeline was designed to transport dry gas but was used for transporting wet gas having condensate and water. This caused corrosion and subsequent leak from the pipeline lying four meters below the ground. An ignition led to explosion and the subsequent fire, killing at least 29 persons and injuring 10 others.
8The transportation of wet gas has been the principal reason of failure of pipeline, the PNGRB has said in its order.
8Then again, GAIL has also apparently flouted the declaration given to the statutory authorities by not providing a Gas Dehydration Unit at Tatipaka even though the design document submitted to Petroleum Safety and Explosives Organisation (PESO) indicated provision for a Gas Dehydration Unit.
8The penalty has been imposed under Section 28 of the PNGRB Act, 2006.
Click on our Reports section to access the PNGRB order Details
The matter of fixing responsibility for the blast in the GAIL's 18-inch Tatipaka to Lanco gas pipeline in Andhra Pradesh does not end with the Petroleum and Natural Gas Regulatory Board (PNGRB) imposing a penalty of Rs 20 lakh on the gas major.
8The PNGRB has pulled up GAIL for continuation of default, that is, continued ingress of wet gas in the pipeline network.
8It is because of this continued ingress of wet gas in the pipeline that the PNGRB has imposed an additional penalty of Rs 1 lakh per day, over and above the penalty of Rs 20 lakh.
8What is more, GAIL has also come under fire for not complying with the recommendations of the Fitness For Purpose (FFP) report which called for use of effective corrosion inhibitor in conjunction with operational cleaning, dewaterlng pig runs while transporting wet gas.
8The presence of internal corrosion in the pipeline on account of high level of moisture/condensate in the gas being injected into the KG Basin pipeline system (2007 onwards) has been the principal reason of failure of the pipeline, the PNGRB has said in its order. Details
8The PNGRB has pulled up GAIL for continuation of default, that is, continued ingress of wet gas in the pipeline network.
8It is because of this continued ingress of wet gas in the pipeline that the PNGRB has imposed an additional penalty of Rs 1 lakh per day, over and above the penalty of Rs 20 lakh.
8What is more, GAIL has also come under fire for not complying with the recommendations of the Fitness For Purpose (FFP) report which called for use of effective corrosion inhibitor in conjunction with operational cleaning, dewaterlng pig runs while transporting wet gas.
8The presence of internal corrosion in the pipeline on account of high level of moisture/condensate in the gas being injected into the KG Basin pipeline system (2007 onwards) has been the principal reason of failure of the pipeline, the PNGRB has said in its order. Details
