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Aug 2015
Falling crude prices seem to have improved product cracker for the refining industry as is evident by the $ 10/bbl posted by CPCL in Q-1, 2015-16.
MRPL too posted high GRMs in the same quarter.
8CPCL achieved a turnover of Rs.11,386 crore for the first quarter ending with June 2015 as compared to Rs.14,222 crore in the corresponding period during the previous year but the reduction was mainly due to sharp fall in prices of petroleum products from the second half of the year 2014-15.
8The GRM of $10.09/bbl during the Q1 of 2015-16 compares favourably against $1.88/bbl posted for the same quarter last year.
8This has resulted in a massive increase in profit before tax to Rs.924 crore as compared to the loss of Rs.193 crore incurred during the first quarter of the previous year.
8The profit after tax increased by 81% on a quarter-to-quarter basis from Rs.510 crore to Rs. 924 crore.
8The company achieved the highest ever crude thru-put of 2843 TMT for the first quarter of 2015-16 as compared to 2819 TMT in the same quarter of the previous year.
8The total distillates production was also highest at 74.3% in April-June period of 2015-16 as compared to 71.3% in the same period of the last year.
8In addition, the company has also initiated a number of energy conservation schemes in order to reduce the internal fuel consumption, the company has saved 13,100 tonnes of fuel in the year 2014-15.
8Towards widening the crude oil basket, the company has procured a new crude -alko blend (NIgeria) -- during the Q1 of 2015-16.
8The planned capex for the year 2015-16 is Rs.1,392 crore including non-plan schemes of Rs.92 crore. The actual project expenditure during the first quarter is almost in line with the target at Rs.225 crore.
Click on Reports for details Details
MRPL too posted high GRMs in the same quarter.
8CPCL achieved a turnover of Rs.11,386 crore for the first quarter ending with June 2015 as compared to Rs.14,222 crore in the corresponding period during the previous year but the reduction was mainly due to sharp fall in prices of petroleum products from the second half of the year 2014-15.
8The GRM of $10.09/bbl during the Q1 of 2015-16 compares favourably against $1.88/bbl posted for the same quarter last year.
8This has resulted in a massive increase in profit before tax to Rs.924 crore as compared to the loss of Rs.193 crore incurred during the first quarter of the previous year.
8The profit after tax increased by 81% on a quarter-to-quarter basis from Rs.510 crore to Rs. 924 crore.
8The company achieved the highest ever crude thru-put of 2843 TMT for the first quarter of 2015-16 as compared to 2819 TMT in the same quarter of the previous year.
8The total distillates production was also highest at 74.3% in April-June period of 2015-16 as compared to 71.3% in the same period of the last year.
8In addition, the company has also initiated a number of energy conservation schemes in order to reduce the internal fuel consumption, the company has saved 13,100 tonnes of fuel in the year 2014-15.
8Towards widening the crude oil basket, the company has procured a new crude -alko blend (NIgeria) -- during the Q1 of 2015-16.
8The planned capex for the year 2015-16 is Rs.1,392 crore including non-plan schemes of Rs.92 crore. The actual project expenditure during the first quarter is almost in line with the target at Rs.225 crore.
Click on Reports for details Details
The company is planning to install Sulphate removal unit, so as to bring down the sulphate concentration to less than 10 ppm from the inlet water sulphate concentration of 500-550 ppm.
8Erection and commissioning of sulphate removal package including interfacing sulphate removal package into detailed design of the balance of plant. It consist of:
8Installation of water pre-treatment system of around 350KBWPD, including chlorine and SMBS dosing, anti-scalants to treat water.
8The technology used for sulphate removal is nano filtration plus reverse osmosis membranes including cleaning in place (CIP) system.
8The CIP system consists of cleaning tank, electric heater, pump, filter and chemical injection skid.
Click on Reports for details. Details
8Erection and commissioning of sulphate removal package including interfacing sulphate removal package into detailed design of the balance of plant. It consist of:
8Installation of water pre-treatment system of around 350KBWPD, including chlorine and SMBS dosing, anti-scalants to treat water.
8The technology used for sulphate removal is nano filtration plus reverse osmosis membranes including cleaning in place (CIP) system.
8The CIP system consists of cleaning tank, electric heater, pump, filter and chemical injection skid.
Click on Reports for details. Details
Cairn India is looking for balance of plant (BOP) suppliers to complete its 350 KBWPD sulphate removal project in Rajasthan.
The BOP work will include:
8Plant piping for raw, treated and rejected water in the plant including hook up with the sulphate removal plant and the existing system of raw and treated water.
8Installation of high pressure pipeline and pumps including booster pumps for ejection of disposal into disposal well.
8Utility systems which includes an air and nitrogen package, fire fighting system, emergency DG and potable water.
8For management of flow for feed, product and reject system, break tanks and pumps are also part of the BOP package.
8Other BOP works includes plant infrastructure, an operations building and a well pad for reject disposal waste.
Click on Reports for details. Details
The BOP work will include:
8Plant piping for raw, treated and rejected water in the plant including hook up with the sulphate removal plant and the existing system of raw and treated water.
8Installation of high pressure pipeline and pumps including booster pumps for ejection of disposal into disposal well.
8Utility systems which includes an air and nitrogen package, fire fighting system, emergency DG and potable water.
8For management of flow for feed, product and reject system, break tanks and pumps are also part of the BOP package.
8Other BOP works includes plant infrastructure, an operations building and a well pad for reject disposal waste.
Click on Reports for details. Details
HPCL is completing the following projects in the current year:
8Rewari-Kanpur product pipeline (RKPL):
--Objective of the project is to meet the POL demand in North India.
--Total cost of the project is Rs.1446.34 Crore and the project is expected to be completed by November 2015.
8Uran-Chakan / Shikrapur LPG pipeline project:
--Objective of the project is to reduce the movement of LPG through tankers on the road between Mumbai and Pune.
--Total cost of the project is Rs.462.79 Crore.
--The project is being shared on 50:50 basis with BPCL and the project is expected to be completed by October 2015.
8Mangalore-Hassan-Mysore LPG pipeline:
--Objective of the project is to reduce the bulk LPG tanker movement between Mangalore, Bangalore and Mysore.
--Total cost of the project is Rs.838.08 Crore and the project is expected to be completed by November 2016. Details
8Rewari-Kanpur product pipeline (RKPL):
--Objective of the project is to meet the POL demand in North India.
--Total cost of the project is Rs.1446.34 Crore and the project is expected to be completed by November 2015.
8Uran-Chakan / Shikrapur LPG pipeline project:
--Objective of the project is to reduce the movement of LPG through tankers on the road between Mumbai and Pune.
--Total cost of the project is Rs.462.79 Crore.
--The project is being shared on 50:50 basis with BPCL and the project is expected to be completed by October 2015.
8Mangalore-Hassan-Mysore LPG pipeline:
--Objective of the project is to reduce the bulk LPG tanker movement between Mangalore, Bangalore and Mysore.
--Total cost of the project is Rs.838.08 Crore and the project is expected to be completed by November 2016. Details
Proposals are coming in for setting up new urea plants from across the country.
Here are the details:
8Proposals have come from the Government of Madhya Pradesh for setting up of fertilizer plants in Jabalpur, Jhabua and Shahdol districts of the state.
8Kanpur Fertilizers & Cement Limited (KFCL) is pursuing a greenfield project in Jabalpur and Paradeep Phosphate is looking at a similar plant in Jhabua.
8A proposal has also come in from Karnataka for a cooperative sector plant in either Raichur or Vijayapura district of Karnataka.
8The DOF has asked the state government to provide a nodal officer to process the proposal further.
8A proposal for setting a fertilizer plant in Chattisgarh has also been received by the DOF and it has been forwarded to FICCI, CII and the FAI for for examination and comments Details
Here are the details:
8Proposals have come from the Government of Madhya Pradesh for setting up of fertilizer plants in Jabalpur, Jhabua and Shahdol districts of the state.
8Kanpur Fertilizers & Cement Limited (KFCL) is pursuing a greenfield project in Jabalpur and Paradeep Phosphate is looking at a similar plant in Jhabua.
8A proposal has also come in from Karnataka for a cooperative sector plant in either Raichur or Vijayapura district of Karnataka.
8The DOF has asked the state government to provide a nodal officer to process the proposal further.
8A proposal for setting a fertilizer plant in Chattisgarh has also been received by the DOF and it has been forwarded to FICCI, CII and the FAI for for examination and comments Details
Essar OIl's Vadinar refinery was recently conferred with the prestigious “Best Safety Performance Refinery of the Year 2014-15 award” by the oil industry safety directorate (OISD) for demonstrating superior overall safety performance.
8The evaluation criteria for awards is quite stringent and is based on complexity of operations, accident free man-hours worked, volume of the products handled, direct & indirect loss due to any incident, hazard potential of the complex, no major incident during the period.
8Salient features of Essar Oil’s Safety Management System for which it won the award include:
-- Continuous improvement in safety culture through employee participation, behavior based safety, critical task observations, safety near miss reporting & investigation, process mock drills, sharing incidences, implementation of 5S workplace management, adherence to life-saving rules, pre-startup safety review, management of change procedure, sustainability reporting and various other motivation programs.
-- Improvement in system integrity, operational discipline, monitoring and development of leading and lagging indicator metrics.
Click on details for more. Details
8The evaluation criteria for awards is quite stringent and is based on complexity of operations, accident free man-hours worked, volume of the products handled, direct & indirect loss due to any incident, hazard potential of the complex, no major incident during the period.
8Salient features of Essar Oil’s Safety Management System for which it won the award include:
-- Continuous improvement in safety culture through employee participation, behavior based safety, critical task observations, safety near miss reporting & investigation, process mock drills, sharing incidences, implementation of 5S workplace management, adherence to life-saving rules, pre-startup safety review, management of change procedure, sustainability reporting and various other motivation programs.
-- Improvement in system integrity, operational discipline, monitoring and development of leading and lagging indicator metrics.
Click on details for more. Details
For reference purposes, the website carries here a DOF note on revival of ailing fertilizer units.
The following are the short details:
8A revised proposal for rehabilitation of FACT has been sent for inter-ministerial discussions after the finance ministry objected to the original plan and sought modifications.
8In order to make the net-worth of Madras Fertilizers Ltd positive, a proposal for the financial restructuring of the company has been prepared for consideration of the Board for Reconstruction of Public Sector Enterprises (BRPSE) Details
The following are the short details:
8A revised proposal for rehabilitation of FACT has been sent for inter-ministerial discussions after the finance ministry objected to the original plan and sought modifications.
8In order to make the net-worth of Madras Fertilizers Ltd positive, a proposal for the financial restructuring of the company has been prepared for consideration of the Board for Reconstruction of Public Sector Enterprises (BRPSE) Details
The uniform pooled price of gas being supplied to fertilizer units for June, 2015 -- the first month of operation of the mechanism -- is Rs 622.47 per MMBTU on a GCV basis.
8This comes to around $10/mmbtu.
8A total of 25 urea units are currently being supplied pooled gas by GAIL.
8Clearly, the price of LNG is significantly higher to take the average up to $10/mmbtu.
8Currently the price of domestic gas is, according to the gas pricing formula, $5.05 per mmbtu till March 31 and has subsequently been cut to $4.66, in line with international price movements.
8So for the average to go up to $10, the price of LNG has to be significantly higher. This reportedly on account of the fact that some fertilizer companies have contracted for long term gas which is at a higher price than spot gas.
The full details of gas required per day by urea units is carried here for reference purposes. Details
8This comes to around $10/mmbtu.
8A total of 25 urea units are currently being supplied pooled gas by GAIL.
8Clearly, the price of LNG is significantly higher to take the average up to $10/mmbtu.
8Currently the price of domestic gas is, according to the gas pricing formula, $5.05 per mmbtu till March 31 and has subsequently been cut to $4.66, in line with international price movements.
8So for the average to go up to $10, the price of LNG has to be significantly higher. This reportedly on account of the fact that some fertilizer companies have contracted for long term gas which is at a higher price than spot gas.
The full details of gas required per day by urea units is carried here for reference purposes. Details
The government has declared that the date of completion of the Jagdishpur-Haldia pipeline project Phase-I will be December, 2018.
8GAIL has been told to stick to this deadline so that the supply of gas can be synchronized with the requirements for IOC's Barauni refinery and fertilizer plant in the same city as well as the new urea unit coming up in Gorakpur.
8The pipeline will have a 30-inch pipeline for the 341 km distance between Phulpur and Dobhi and another 414 km of spurlines running to Gorakpur, Varanasi, Patna and Baurani.
8The Modi government sees the pipeline as energizing CGD and other industrial units that can come up in the hinterland of Bihar and Uttar Pradesh.
The pipeline will cover the following districts in the two states:
Uttar Pradesh: Allahabad, Jaunpur, Varanasi, Chandauli, Azamgarh, Gorakhpur, Ambedkar Nagar & Sant Kabir Nagar.
Bihar: Kaimoor, Rohtas, Aurangabad, Gaya, Nalanda, Patna, Shekhpura, Lakhesarai and Begusarai.
8The two fertilizer units with gas consumption of 2.4 mmscmd will serve as anchor customers for the pipeline Details
8GAIL has been told to stick to this deadline so that the supply of gas can be synchronized with the requirements for IOC's Barauni refinery and fertilizer plant in the same city as well as the new urea unit coming up in Gorakpur.
8The pipeline will have a 30-inch pipeline for the 341 km distance between Phulpur and Dobhi and another 414 km of spurlines running to Gorakpur, Varanasi, Patna and Baurani.
8The Modi government sees the pipeline as energizing CGD and other industrial units that can come up in the hinterland of Bihar and Uttar Pradesh.
The pipeline will cover the following districts in the two states:
Uttar Pradesh: Allahabad, Jaunpur, Varanasi, Chandauli, Azamgarh, Gorakhpur, Ambedkar Nagar & Sant Kabir Nagar.
Bihar: Kaimoor, Rohtas, Aurangabad, Gaya, Nalanda, Patna, Shekhpura, Lakhesarai and Begusarai.
8The two fertilizer units with gas consumption of 2.4 mmscmd will serve as anchor customers for the pipeline Details
The cost of importing urea is significantly lower than the cost of manufacturing it in India.
8According to the data released by the government today, the weighted average price of urea imported on government account through State Trading Enterprises (STEs) was US$ 303.94 PMT CFR in the year 2014-15 as against US$ 289.77 PMT CFR during 2015-16 (upto June, 2015).
8Urea manufacturers operate in a cartel but Chinese and the Iranians have flooded the market bring down the price this year.
8The weighted average price of imported urea during 2014-15 is Rs.18,981/- per tonne CFR (at an average exchange rate of Rs.62.45 per US$) and the weighted averageprovisional price of urea produced in the country is Rs.21,817 PMT for the year 2014-15.
8The cost of production in India has gone down, albeit marginally, in the current year because of lower LNG price but the point to note is that only the spot LNG price has come down.
8Most urea units have long term LNG contracts and prices for these contracts have not gone down.
8Spot urea usage is not significant. As a consequence, the cost of production of urea in India after factoring in annual escalation, have not gone down by much, whereas the cost of imported urea has come down sizeably.
Comment: India is now embarking on a massive expansion of urea capacity under a pooled price system. It is likely that the urea cartel will keep the price lower than the cost of production for the foreseeable future. Given that the farm gate price of urea has not gone up, the question then will the government be willing to dole out a higher subsidy for domestic urea in comparison to imported urea? The subsidy burden will pinch more when higher subsidies will have to be doled out on domestic urea when imports are available at a cheaper price. At some point, the finance ministry may protest the subsidy differential and this may be spell trouble for the new units that are coming up in the country
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8According to the data released by the government today, the weighted average price of urea imported on government account through State Trading Enterprises (STEs) was US$ 303.94 PMT CFR in the year 2014-15 as against US$ 289.77 PMT CFR during 2015-16 (upto June, 2015).
8Urea manufacturers operate in a cartel but Chinese and the Iranians have flooded the market bring down the price this year.
8The weighted average price of imported urea during 2014-15 is Rs.18,981/- per tonne CFR (at an average exchange rate of Rs.62.45 per US$) and the weighted averageprovisional price of urea produced in the country is Rs.21,817 PMT for the year 2014-15.
8The cost of production in India has gone down, albeit marginally, in the current year because of lower LNG price but the point to note is that only the spot LNG price has come down.
8Most urea units have long term LNG contracts and prices for these contracts have not gone down.
8Spot urea usage is not significant. As a consequence, the cost of production of urea in India after factoring in annual escalation, have not gone down by much, whereas the cost of imported urea has come down sizeably.
Comment: India is now embarking on a massive expansion of urea capacity under a pooled price system. It is likely that the urea cartel will keep the price lower than the cost of production for the foreseeable future. Given that the farm gate price of urea has not gone up, the question then will the government be willing to dole out a higher subsidy for domestic urea in comparison to imported urea? The subsidy burden will pinch more when higher subsidies will have to be doled out on domestic urea when imports are available at a cheaper price. At some point, the finance ministry may protest the subsidy differential and this may be spell trouble for the new units that are coming up in the country
Click on Reports for more Details
Government has now planed to sell high speed diesel (HSD) blended with bio-diesel in selected retail outlets of OMC’s in New Delhi and Vishakhapatnam (by HPCL), Haldia (by BPCL) and Vijayawada (by IOCL).
8In addition to that, Bio-Diesel (B100) now will be available to the bulk consumers like railways, shipping and state road transport corporations.
8Moreover the government will continue to push the ethanol blended petrol program (EBP), taking the blending percentage up to 10 %, based on the availability of ethanol.
8Encouraging bio-fuels will not only reduce the import of fossil fuel but also save foreign exchange, the government feels.
Comment: Production of ethanol does not address climate change and has actually done more harm than good, including creating more greenhouse gases. Over the last few years environmentalists have mostly withdrawn support to bio-fuels as an alternative fuel. It is time for the petroleum ministry to hire an international consultant to work out the cost-economics of bio-fuels shorn of subsidies in today's rapidly changing energy paradigm.
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8In addition to that, Bio-Diesel (B100) now will be available to the bulk consumers like railways, shipping and state road transport corporations.
8Moreover the government will continue to push the ethanol blended petrol program (EBP), taking the blending percentage up to 10 %, based on the availability of ethanol.
8Encouraging bio-fuels will not only reduce the import of fossil fuel but also save foreign exchange, the government feels.
Comment: Production of ethanol does not address climate change and has actually done more harm than good, including creating more greenhouse gases. Over the last few years environmentalists have mostly withdrawn support to bio-fuels as an alternative fuel. It is time for the petroleum ministry to hire an international consultant to work out the cost-economics of bio-fuels shorn of subsidies in today's rapidly changing energy paradigm.
Click on details for more. Details
What is pertinent to note in the revised gas supply estimate is that it is the output that is meant to come in through the Production Sharing Contract route that is going to take a hit.
8The earlier estimate was that 32.15 mmscmd of gas will be produced through the PSC route whereas this has been scaled down by as much as 9.24 mmscmd to 22.904 msmcmd in 2015-16.
8Similarly, for 2016-17, the PSC production will be lower at 25.50 in comparison to the earlier estimate of 40.03 mmscmd.
8Then again 2017-18, new estimates peg PSC production at 31.37 as against 45.18 mmscmd a year ago.
8It is important to note that the gas production estimates of both ONGC and OIL are more or less the same for the three years and the fall in output is therefore emanating entirely from the private sector companies.
8More importantly it will be RIL-BP that will account for the bulk of the shortfall since they have halted the process of monetizing its KG Basin discoveries on account of uncertainties in the premium to be granted to deepwater discoveries.
8What is also going to impact the combine negatively is the fact that most of the discoveries were made prior to the November 2014 deadline for qualifying for the premium being accorded to deep water and ultra deepwater discoveries. Details
8The earlier estimate was that 32.15 mmscmd of gas will be produced through the PSC route whereas this has been scaled down by as much as 9.24 mmscmd to 22.904 msmcmd in 2015-16.
8Similarly, for 2016-17, the PSC production will be lower at 25.50 in comparison to the earlier estimate of 40.03 mmscmd.
8Then again 2017-18, new estimates peg PSC production at 31.37 as against 45.18 mmscmd a year ago.
8It is important to note that the gas production estimates of both ONGC and OIL are more or less the same for the three years and the fall in output is therefore emanating entirely from the private sector companies.
8More importantly it will be RIL-BP that will account for the bulk of the shortfall since they have halted the process of monetizing its KG Basin discoveries on account of uncertainties in the premium to be granted to deepwater discoveries.
8What is also going to impact the combine negatively is the fact that most of the discoveries were made prior to the November 2014 deadline for qualifying for the premium being accorded to deep water and ultra deepwater discoveries. Details
Are India's deep and ultra deepwater gas discoveries intrinsically unviable in today's rapidly changing global gas supply and demand paradigm?
8This is a question that policy makers will have to come to grip with while addressing how to tap a large quantity of gas lying untapped in India's offshore basin.
8Clearly as the BP-RIL combine has been repeatedly saying the price of incremental gas from offshore areas cannot be less than $10/mmbtu. In fact even at $10/mmbtu, the return projected by the duo is marginally negative for some of its KG Basin discoveries.
8The point is that even if a premium is granted to these discoveries, it cannot theoretically be more than the delivered price of LNG. The ex-ship price of LNG for October delivery is in the range of $8/mmbtu, still $2 less than the price at which the KG Basin discoveries can break even.
8Will the price of gas go up in the future? This is a question that has become increasingly difficult to answer because the Americans have now become the swing producers of gas in the world subsequent to the shale gas revolution.
8US gas production is highly price sensitive and vast quantities of gas can be made available at incremental prices well into the foreseeable future.
8In this context, there is the possibility of gas reserves in India's KG Basin remaining untapped even if a premium is given to exploit the reserves. Details
8This is a question that policy makers will have to come to grip with while addressing how to tap a large quantity of gas lying untapped in India's offshore basin.
8Clearly as the BP-RIL combine has been repeatedly saying the price of incremental gas from offshore areas cannot be less than $10/mmbtu. In fact even at $10/mmbtu, the return projected by the duo is marginally negative for some of its KG Basin discoveries.
8The point is that even if a premium is granted to these discoveries, it cannot theoretically be more than the delivered price of LNG. The ex-ship price of LNG for October delivery is in the range of $8/mmbtu, still $2 less than the price at which the KG Basin discoveries can break even.
8Will the price of gas go up in the future? This is a question that has become increasingly difficult to answer because the Americans have now become the swing producers of gas in the world subsequent to the shale gas revolution.
8US gas production is highly price sensitive and vast quantities of gas can be made available at incremental prices well into the foreseeable future.
8In this context, there is the possibility of gas reserves in India's KG Basin remaining untapped even if a premium is given to exploit the reserves. Details
The government says it is taking a number of initiatives to raise gas production in India. Among the steps outlined by a a PIB press release are:
8Production to be enhance from existing field by adopting Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) measures using latest technology.
8Bring into production new discoveries at the earliest. For this a policy framework for early monetization of hydrocarbon discoveries under PSC regime has been approved by the government.
8Facilitate enhanced exploration activities through following measures:
--Appraisal of about 1.5 million sq km un-appraised area of the Indian sedimentary basins and acquisition of geo-scientific data under multi client and non-exclusive policy.
--Re-assessment of Hydrocarbon Resources.
--Setting up of national data repository, policy approved for exploration and exploitation of shale gas or shale oil resources by national oil companies under the nomination regime.
--Government approved the policy on testing requirements for discoveries in NELP blocks. The policy would help in monetization of discoveries in five NELP blocks.
Comment: But the new reality is that it is not the physical availability of reserves but the price at which these reserves can be tapped that will become important. Given that ex-ship price of LNG is at $8/mmbtu, will it be economical for Indian operators to work in high cost High Temperature HIgh Pressure offshore basins to tap these reserves given that the global market has to take into account vast quantity of cheaply produced gas that the US is capable of pumping into the system at low prices? Details
8Production to be enhance from existing field by adopting Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) measures using latest technology.
8Bring into production new discoveries at the earliest. For this a policy framework for early monetization of hydrocarbon discoveries under PSC regime has been approved by the government.
8Facilitate enhanced exploration activities through following measures:
--Appraisal of about 1.5 million sq km un-appraised area of the Indian sedimentary basins and acquisition of geo-scientific data under multi client and non-exclusive policy.
--Re-assessment of Hydrocarbon Resources.
--Setting up of national data repository, policy approved for exploration and exploitation of shale gas or shale oil resources by national oil companies under the nomination regime.
--Government approved the policy on testing requirements for discoveries in NELP blocks. The policy would help in monetization of discoveries in five NELP blocks.
Comment: But the new reality is that it is not the physical availability of reserves but the price at which these reserves can be tapped that will become important. Given that ex-ship price of LNG is at $8/mmbtu, will it be economical for Indian operators to work in high cost High Temperature HIgh Pressure offshore basins to tap these reserves given that the global market has to take into account vast quantity of cheaply produced gas that the US is capable of pumping into the system at low prices? Details
The RIL-BP combine had at one point last year promised to get its gas output up to 50 mmscmd in the next 4 to 5 years from its current level of around 10 to 11 mmscmd of gas.
8But for that to happen, the deepwater discoveries in the combine`s D-6 and NEC- 25 blocks will have to go on stream.
8The condition however is that the discoveries can only be brought on stream if the price of gas is $10/mmbtu or more.
8The group had claimed that there is still a massive quantity of gas -- between 5 to 7 TCF -- in the deepwater and ultra deepwaters of its E&P blocks.
8The first of the projects lined up was the D-34 cluster of discoveries, which contains 1.2 TCF of gas, and first gas was expected by 2018. This development would have entailed an investment of $ 4 billion.
8The current price of gas is only half this level and therefore the combine has put its development plans on hold, as was announced by Niko, a 10% partner with the RIL-BP duo in the D-6 field, in a recent statement.
Click on Details for a comprehensive analysis of the cost economics of gas production in India. Details
8But for that to happen, the deepwater discoveries in the combine`s D-6 and NEC- 25 blocks will have to go on stream.
8The condition however is that the discoveries can only be brought on stream if the price of gas is $10/mmbtu or more.
8The group had claimed that there is still a massive quantity of gas -- between 5 to 7 TCF -- in the deepwater and ultra deepwaters of its E&P blocks.
8The first of the projects lined up was the D-34 cluster of discoveries, which contains 1.2 TCF of gas, and first gas was expected by 2018. This development would have entailed an investment of $ 4 billion.
8The current price of gas is only half this level and therefore the combine has put its development plans on hold, as was announced by Niko, a 10% partner with the RIL-BP duo in the D-6 field, in a recent statement.
Click on Details for a comprehensive analysis of the cost economics of gas production in India. Details
MRPL's percentage of domestic volume during Q1 FY 2015-16 stood at 70% as against 60% in Q1 FY 2014-15. Typically net price realised in domestic market is more than that in export.
8The company has considerably reduced exports from 1.18 MMT during Q1 2014-2015 to 1.03 MMT during Q1 2015-2016.
8The company feels that it could evacuate higher volumes of products in domestic market thereby reducing the exports.
8Moreover,the company has retained its strong market presence in its hinterland for its products ( Petcoke and Sulphur) and it has also been able to get a good response for the polypropylene introduced during this quarter.
8The company has also initiated a downward integration by amalgamating with ONGC Mangalore Petrochemicals Limited (OMPL).
8OMPL has recently commissioned a state-of- he-art Aromatic Complex with 914 KTPA capacity of Para-Xylene and 283 KPTA capacity of Benzene adjacent to the Manglore refinery.
Click on the Reports for more. Details
8The company has considerably reduced exports from 1.18 MMT during Q1 2014-2015 to 1.03 MMT during Q1 2015-2016.
8The company feels that it could evacuate higher volumes of products in domestic market thereby reducing the exports.
8Moreover,the company has retained its strong market presence in its hinterland for its products ( Petcoke and Sulphur) and it has also been able to get a good response for the polypropylene introduced during this quarter.
8The company has also initiated a downward integration by amalgamating with ONGC Mangalore Petrochemicals Limited (OMPL).
8OMPL has recently commissioned a state-of- he-art Aromatic Complex with 914 KTPA capacity of Para-Xylene and 283 KPTA capacity of Benzene adjacent to the Manglore refinery.
Click on the Reports for more. Details
8No proposal to reduce the current cap of 12 cylinder a year, says Pradhan
8Emergency Response time for oil and gas disasters will not be more than two hours, says expert committee
8Petroleum Minister Shri Dharmendra Pradhan launches the “Bio Fuel Blended HSD” on World Bio Fuel Day
8Global crude oil price of Indian Basket was US$ 49.11 per bbl on 07.08.2015
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8Emergency Response time for oil and gas disasters will not be more than two hours, says expert committee
8Petroleum Minister Shri Dharmendra Pradhan launches the “Bio Fuel Blended HSD” on World Bio Fuel Day
8Global crude oil price of Indian Basket was US$ 49.11 per bbl on 07.08.2015
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For reference purposes the website carries here the following details on the subsidy sharing mechanism in the petroleum sector:
8The Government has approved budgetary support for PDS Kerosene under-recovery at a rate of Rs. 12/Litre and the remaining under-recovery will be borne by the upstream companies.
8Under the direct transfer scheme, the government has approved a fixed subsidy of Rs. 18/kg for domestic LPG under the Direct Benefit Transfer for Domestic LPG.
8Details of the cash assistance -- amounting to Rs 7442 crore -- given by the government for LPG and SKO for the first quarter of 2015-16 is carried here.
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8The Government has approved budgetary support for PDS Kerosene under-recovery at a rate of Rs. 12/Litre and the remaining under-recovery will be borne by the upstream companies.
8Under the direct transfer scheme, the government has approved a fixed subsidy of Rs. 18/kg for domestic LPG under the Direct Benefit Transfer for Domestic LPG.
8Details of the cash assistance -- amounting to Rs 7442 crore -- given by the government for LPG and SKO for the first quarter of 2015-16 is carried here.
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The Society of Petroleum Engineers will be conducting the "Gas India Conference and Exhibition" on 24-26 November 2015 in Mumbai after three years.
8OGIC is renowned for its comprehensive technical agendas and enticing exhibitions, hosting some of the most reputed companies in the oil and gas industry in India.
8An event dedicated to the Indian oil and gas industry has never been more fundamental.
8Details of the sessions are as follows:
-- Breaking Barriers—Converting Resources to Production
-- Expediting Exploration— Enabling Energy Security
-- Monetising Assets—The Smart Way
-- Mature Fields— Reversing the Decline
-- HSSE—Leading a Cultural Change
-- HR—Bridging the Talent Gap
-- Project Management— Excellence in Delivery
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8OGIC is renowned for its comprehensive technical agendas and enticing exhibitions, hosting some of the most reputed companies in the oil and gas industry in India.
8An event dedicated to the Indian oil and gas industry has never been more fundamental.
8Details of the sessions are as follows:
-- Breaking Barriers—Converting Resources to Production
-- Expediting Exploration— Enabling Energy Security
-- Monetising Assets—The Smart Way
-- Mature Fields— Reversing the Decline
-- HSSE—Leading a Cultural Change
-- HR—Bridging the Talent Gap
-- Project Management— Excellence in Delivery
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Cairn India Ltd. (CIL) is planning to install an “Infield Pipelines System” as part of the Raageshwari Deep Gas (RDG) field development plan in its Rajasthan block, dubbed as RJ-ON-90/1.
8The block contains a number of major oil discoveries including the Mangala, Bhagyam and Aishwarya oil fields, in the north and the Raageshwari Gas Field on the southern side.
8The Raageshwari Deep Gas (RDG) field is a major on-shore gas field which is located down south of the RJ block.
8The project will broadly involve installation of an infield pipelines network and it will entail the following:
-- Well Fluid CS pipelines segments from different well pads to RDG Terminal (10 to 20 inch dia. and total length of 18.0 km),
-- A Condensate CS pipeline segment from the above ground installation (AGI-5) to the RDG terminal (12 inch dia. and 7.0 length),
-- A Water Disposal CS pipeline segment from the RDG to the RAGG-2 (10” and approx. 10.0 km segment)
-- High-density polyethylene (HDPE) pipelines network (10 inch dia. with a total length of 20 km)
8In addition to that, it include installation of 50 km of OFC cables from different well pads and terminals along with a 10 km long overhead electrical power line network (OHL).
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8The block contains a number of major oil discoveries including the Mangala, Bhagyam and Aishwarya oil fields, in the north and the Raageshwari Gas Field on the southern side.
8The Raageshwari Deep Gas (RDG) field is a major on-shore gas field which is located down south of the RJ block.
8The project will broadly involve installation of an infield pipelines network and it will entail the following:
-- Well Fluid CS pipelines segments from different well pads to RDG Terminal (10 to 20 inch dia. and total length of 18.0 km),
-- A Condensate CS pipeline segment from the above ground installation (AGI-5) to the RDG terminal (12 inch dia. and 7.0 length),
-- A Water Disposal CS pipeline segment from the RDG to the RAGG-2 (10” and approx. 10.0 km segment)
-- High-density polyethylene (HDPE) pipelines network (10 inch dia. with a total length of 20 km)
8In addition to that, it include installation of 50 km of OFC cables from different well pads and terminals along with a 10 km long overhead electrical power line network (OHL).
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It seems like MRPL has finally been able to cross the hump that had so far inhibited the company's rapid growth.
8It has been able to transition into the value added petrochemical products market where the margins are higher while selling a larger volume of HSD and MS in the domestic market where the returns are higher.
A combination of these factors have allowed the company to post a profit of Rs 406 crore after provision of tax in the 1st quarter 2015- 16 as against loss of Rs36 crore during the corresponding previous quarter.
8The increased profit is on account of the increased margins in the products coming out from the secondary units in of the newly installed Phase III facilities.
8In addition to that, increase in the gap between the prices of crude oil and those of refined products during the 1st Quarter 2015-16 as compared to the corresponding previous quarter also contributed to the increased margins.
8MRPL has successfully started commercial production of the polypropylene from its 440 KTPA polypropylene unit (PPU) on 18th June,2015. With this, MRPL’s Phase-III of expansion is fully completed.
Comment: Scaling up its refining capacity rapidly is an option that ONGC should look at for MRPL. Reaching the size of refineries built by Essar and RIL will provide it the muscle power and economies of scale that will help it complete in the global market. Given that the global E&P assets market is in turmoil, the ONGC brass should quickly hire a consultant to look at the cost economics of a massive scaling up of MRPL's capacity so that the refiner, armed with the latest technology and capable of processing high sulphur crude, can be a behemoth in its own right.
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8It has been able to transition into the value added petrochemical products market where the margins are higher while selling a larger volume of HSD and MS in the domestic market where the returns are higher.
A combination of these factors have allowed the company to post a profit of Rs 406 crore after provision of tax in the 1st quarter 2015- 16 as against loss of Rs36 crore during the corresponding previous quarter.
8The increased profit is on account of the increased margins in the products coming out from the secondary units in of the newly installed Phase III facilities.
8In addition to that, increase in the gap between the prices of crude oil and those of refined products during the 1st Quarter 2015-16 as compared to the corresponding previous quarter also contributed to the increased margins.
8MRPL has successfully started commercial production of the polypropylene from its 440 KTPA polypropylene unit (PPU) on 18th June,2015. With this, MRPL’s Phase-III of expansion is fully completed.
Comment: Scaling up its refining capacity rapidly is an option that ONGC should look at for MRPL. Reaching the size of refineries built by Essar and RIL will provide it the muscle power and economies of scale that will help it complete in the global market. Given that the global E&P assets market is in turmoil, the ONGC brass should quickly hire a consultant to look at the cost economics of a massive scaling up of MRPL's capacity so that the refiner, armed with the latest technology and capable of processing high sulphur crude, can be a behemoth in its own right.
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Gujarat refinery is planning the overhauling of its six frame-IV gas turbines and two steam turbines in Gujarat refinery.
8The power requirement for reliable refinery operations in Gujarat refinery is catered by these generators. The gas turbine generators (GTG)- 1, 2, 3, 4, 5 and 6 of BHEL make were commissioned in the year 1992, 1992, 1999, 2009, 2009 and 2014 respectively
8The planned maintenance has to be carried out on schedule shutdown as per OEM guideline which comprises of combustion inspection (CI) after 8000 fired hours, hot gas path inspection (HGPI) after 24000 fired hours and major inspection after 48000 fired hours.
8The scope of the project consist of overhauling of generator, stator, rotor and exciter followed by cryogenic cleaning of generator and exciter. Various diagnostic test will also be conducted on generator stator, rotar and exciter for condition assessment.
8The entire project is planned to take around two years.
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8The power requirement for reliable refinery operations in Gujarat refinery is catered by these generators. The gas turbine generators (GTG)- 1, 2, 3, 4, 5 and 6 of BHEL make were commissioned in the year 1992, 1992, 1999, 2009, 2009 and 2014 respectively
8The planned maintenance has to be carried out on schedule shutdown as per OEM guideline which comprises of combustion inspection (CI) after 8000 fired hours, hot gas path inspection (HGPI) after 24000 fired hours and major inspection after 48000 fired hours.
8The scope of the project consist of overhauling of generator, stator, rotor and exciter followed by cryogenic cleaning of generator and exciter. Various diagnostic test will also be conducted on generator stator, rotar and exciter for condition assessment.
8The entire project is planned to take around two years.
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Now that the government has released gas output projections for the next three years that show a drop in private sector production from what was estimated a year ago, the website wants to start a debate on the viability of some of India's deepwater oil and gas reserves given the fall in global prices. There is now talk that competitive supplies coming out of the US will keep prices under control well into the forseeable future. Will cost economics derail efforts to raise Indian gas output?
To begin with, it looks like the government has cut estimates of gas production over the last one year.
8One year ago, the estimate of gas production was 109.84 mmscmd in 2015-16 but this has now been pegged down to 92.764 mmcmd
8Similarly, estimates were that gas output will scale 124.57 mmscmd in 2016-17. Instead output is now projected at 106.55 mmscmd
8Then again, in the year 2017-18, the production figure a year back was given as 140.25 and this has now been brought down to 126.852 mmscmd.
8Clearly, the rise in output is going to be slower than what was projected in the past.
8This in turn will mean that both the CGD, fertilzier and power units will have to take into account the new reality while factoring in their domestic gas intake paramters. Details
To begin with, it looks like the government has cut estimates of gas production over the last one year.
8One year ago, the estimate of gas production was 109.84 mmscmd in 2015-16 but this has now been pegged down to 92.764 mmcmd
8Similarly, estimates were that gas output will scale 124.57 mmscmd in 2016-17. Instead output is now projected at 106.55 mmscmd
8Then again, in the year 2017-18, the production figure a year back was given as 140.25 and this has now been brought down to 126.852 mmscmd.
8Clearly, the rise in output is going to be slower than what was projected in the past.
8This in turn will mean that both the CGD, fertilzier and power units will have to take into account the new reality while factoring in their domestic gas intake paramters. Details
The Project is proposed to be executed on “EPC basis”.
8All the Long Lead Items (LLIs), broadly including the coated line pipes, bare pipes for induction bends, valves and actuators, Pig launchers/ Receivers, HDPE pipes, assorted items for Well Pads/Terminal/AGI station piping works, OFC, OHL and the construction consumables are proposed to be procured and supplied by the EPC Contractor.
8Cairn has already completed the front end engineering design (FEED) for the Infield pipelines system.
8The scope of the current work broadly include construction surveys, detailed design and engineering, procurement and supply of all items, transportation, site preparations, installation, testing, pre-commissioning, start-up and commissioning of the infield pipelines system.
8Construction of well rad (drilling infrastructure) is excluded from current scope of system.
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8All the Long Lead Items (LLIs), broadly including the coated line pipes, bare pipes for induction bends, valves and actuators, Pig launchers/ Receivers, HDPE pipes, assorted items for Well Pads/Terminal/AGI station piping works, OFC, OHL and the construction consumables are proposed to be procured and supplied by the EPC Contractor.
8Cairn has already completed the front end engineering design (FEED) for the Infield pipelines system.
8The scope of the current work broadly include construction surveys, detailed design and engineering, procurement and supply of all items, transportation, site preparations, installation, testing, pre-commissioning, start-up and commissioning of the infield pipelines system.
8Construction of well rad (drilling infrastructure) is excluded from current scope of system.
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India’s production-based emissions have consistently been higher than its consumption-based emissions. As such, India is a long-standing net exporter of emissions.
8A difference of 200 Mt of carbon-di-oxide can be seen in the between production and consumption based energy emissions, according to a recent study by Deloitte.
8A comparison of emissions embedded in imports compared to emissions embedded in exports for India provides a clear illustration of the growing wedge between production-based and consumption-based emissions, and India’s increasing net emissions exports.
8In general, net emissions exporting countries are expected to operate under a trade surplus. However, the opposite is true for India, which has not only maintained a significant net trade deficit over the analysis period, but the trade deficit has been increasing over time.
8This disconnect between India’s underlying net trade position with respect to goods and services (net importer) and emissions trade (net exporter), is likely to be due to the carbon intensity of the economy and the nature of imports and exports
8India’s carbon intensity is the third highest in the G20 at 1.41 Mt CO2/GDP (US$ billions) as per recent data, with 81% of its energy generation coming from fossil fuels, including 59% of its installed capacity coming from coal.
8 While India has made improvements in carbon intensity over the period (down from 1.82 Mt CO2/GDP in 1992), most G20 countries (including India’s key trading partners) have been improving carbon intensity at a faster rate.
8India’s main import is crude oil, followed by gold and silver, all of which have relatively low embedded emissions in that limited processing is required prior to export. On the other hand its main exports, refined petroleum products, gems and jewellery require higher levels of domestic processing and therefore will have higher embedded emissions (India essentially imports the raw materials for its main exports).
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8A difference of 200 Mt of carbon-di-oxide can be seen in the between production and consumption based energy emissions, according to a recent study by Deloitte.
8A comparison of emissions embedded in imports compared to emissions embedded in exports for India provides a clear illustration of the growing wedge between production-based and consumption-based emissions, and India’s increasing net emissions exports.
8In general, net emissions exporting countries are expected to operate under a trade surplus. However, the opposite is true for India, which has not only maintained a significant net trade deficit over the analysis period, but the trade deficit has been increasing over time.
8This disconnect between India’s underlying net trade position with respect to goods and services (net importer) and emissions trade (net exporter), is likely to be due to the carbon intensity of the economy and the nature of imports and exports
8India’s carbon intensity is the third highest in the G20 at 1.41 Mt CO2/GDP (US$ billions) as per recent data, with 81% of its energy generation coming from fossil fuels, including 59% of its installed capacity coming from coal.
8 While India has made improvements in carbon intensity over the period (down from 1.82 Mt CO2/GDP in 1992), most G20 countries (including India’s key trading partners) have been improving carbon intensity at a faster rate.
8India’s main import is crude oil, followed by gold and silver, all of which have relatively low embedded emissions in that limited processing is required prior to export. On the other hand its main exports, refined petroleum products, gems and jewellery require higher levels of domestic processing and therefore will have higher embedded emissions (India essentially imports the raw materials for its main exports).
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The electricity requirement for the project activities is high once drilling begins. Hence the dependency is more on DG sets.
8Moreover the power requirement is for a small period of 5-6 months where the intensive period lasts only for 45-60 days.
8The power requirement will be met by using six AC-SCR DG sets of 750 KW throughout the project period.
8During the drilling phase, consumption of about 6 KLD of diesel will be required. Out of this, a major part, about 85%, will be consumed by the rig and about 15% will be required for the camp site.
8Fuel will be supplied onsite by a local supplier through mobile tankers. The fuel will be stored at an onsite storage facility.
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8Moreover the power requirement is for a small period of 5-6 months where the intensive period lasts only for 45-60 days.
8The power requirement will be met by using six AC-SCR DG sets of 750 KW throughout the project period.
8During the drilling phase, consumption of about 6 KLD of diesel will be required. Out of this, a major part, about 85%, will be consumed by the rig and about 15% will be required for the camp site.
8Fuel will be supplied onsite by a local supplier through mobile tankers. The fuel will be stored at an onsite storage facility.
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Each well will be drilled using a standard land rig or a “Mobile Land Rig” with a standard water based drilling fluid treatment system.
8This rig will be suitable for drilling up to the desired depth ranging between 2500 to 3000 meters.
8Drilling is a temporary activity which will continue for about 4 months for each well in the block.
8Once the drilling operations are completed, the well will be tested by perforation in the production casing. This normally takes 2-3 days.
8Additionally, there will be other ancillary facilities like a drilling mud system, an ETP, disposal system for cuttings, drill cementing equipment and utilities to supply power (DG sets), water, fuel (HSD) they will be set up as a part of the project.
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8This rig will be suitable for drilling up to the desired depth ranging between 2500 to 3000 meters.
8Drilling is a temporary activity which will continue for about 4 months for each well in the block.
8Once the drilling operations are completed, the well will be tested by perforation in the production casing. This normally takes 2-3 days.
8Additionally, there will be other ancillary facilities like a drilling mud system, an ETP, disposal system for cuttings, drill cementing equipment and utilities to supply power (DG sets), water, fuel (HSD) they will be set up as a part of the project.
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Baramura GCS: Six new locations namely BMDF, BMDG, BMDH, BMDI, BM-16 (SUB) are proposed for drilling development wells and connected to Baramura GCS to maintain supply of existing consumer.
8The structure is affected by a number of transverse faults, which played an important role in gas migration and entrapment, dividing the field into different blocks.
8The field has been put on trial production in 1975 through BM# 1 and is on commercial production since 1986. Producing gas wells are very old and in many wells the gas flow ceased due to water loading problem.
8Even after work over and water shut off jobs, production is predicted to decline. So to maintaine gas supply, additional drilling is planned.
Gojalia GCS: Four wells-- dubbed as GODA, GODB, GODC and TRGO-1 -- are proposed for drilling devlopment wells and will be connected to the new Gojalia gas compressor station.
8In addition to that a 12 inch transportation pipeline of 54 km length will be laid from the gas compressor station to the ONGC Tripura Power Company.
8The gas handling capacity of the GCS will be 0.6 MMSCMD. Total liquid handling capacity of the GCS will be 90 MCD out of which 80 MCD is expected to be water and 10 MCD shall be condensate.
8About 44.96 acres of land has already been acquired for setting up the GCS facility.
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8The structure is affected by a number of transverse faults, which played an important role in gas migration and entrapment, dividing the field into different blocks.
8The field has been put on trial production in 1975 through BM# 1 and is on commercial production since 1986. Producing gas wells are very old and in many wells the gas flow ceased due to water loading problem.
8Even after work over and water shut off jobs, production is predicted to decline. So to maintaine gas supply, additional drilling is planned.
Gojalia GCS: Four wells-- dubbed as GODA, GODB, GODC and TRGO-1 -- are proposed for drilling devlopment wells and will be connected to the new Gojalia gas compressor station.
8In addition to that a 12 inch transportation pipeline of 54 km length will be laid from the gas compressor station to the ONGC Tripura Power Company.
8The gas handling capacity of the GCS will be 0.6 MMSCMD. Total liquid handling capacity of the GCS will be 90 MCD out of which 80 MCD is expected to be water and 10 MCD shall be condensate.
8About 44.96 acres of land has already been acquired for setting up the GCS facility.
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Agartala Dome GCS: Eight new locations -- dubbed as ADDL, ADDQ, ADDN, ADDP and TRAD-11, 12 & 13 -- are proposed for drilling development wells and would be connected to the Agartala Dome GCS.
8The field has a total of twelve pay sands. Out of these, 9 have been tested and proved to be gas bearing in commercial quantities.
8The field holds the largest volume of gas reserves among the present five producing fields (viz. Agartala Dome, Baramura, Konaban, Kunjaban and Manikyanagar).
8After up-gradation of the GCS in September 2008, surface gas handling capacity has increased from 0.4 to 2.2 MMSCMD.
8The field has been producing on an average 1.2 MMSCMD of gas depending upon the requirement of consumers.
8Considering the existing processing capacity of GCS of 2.2 MMCMD and the commitment to fulfill consumer demand and also to maintain gas supply rates, ONGC is of the view that it is necessary to generate more production potential wherever possible through development drilling.
Konaban GCS: 12 new locations namely RODI, RODM, RODK, RODN, and TRKN-16 to 22 are proposed for drilling development wells and would be connected to the Konaban GCS.
8The field has a total of 24 pay sands and are interpreted to be gas bearing, out of which 13 pay sands are producing.
8In the last few years, the field has been producing on an average 0.50 to 0.60 MMSCMD of gas depending upon the requirement of the consumers.
8Recently, the Konaban GCS was upgraded to handle 1.50 MMSCMD of gas.
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8The field has a total of twelve pay sands. Out of these, 9 have been tested and proved to be gas bearing in commercial quantities.
8The field holds the largest volume of gas reserves among the present five producing fields (viz. Agartala Dome, Baramura, Konaban, Kunjaban and Manikyanagar).
8After up-gradation of the GCS in September 2008, surface gas handling capacity has increased from 0.4 to 2.2 MMSCMD.
8The field has been producing on an average 1.2 MMSCMD of gas depending upon the requirement of consumers.
8Considering the existing processing capacity of GCS of 2.2 MMCMD and the commitment to fulfill consumer demand and also to maintain gas supply rates, ONGC is of the view that it is necessary to generate more production potential wherever possible through development drilling.
Konaban GCS: 12 new locations namely RODI, RODM, RODK, RODN, and TRKN-16 to 22 are proposed for drilling development wells and would be connected to the Konaban GCS.
8The field has a total of 24 pay sands and are interpreted to be gas bearing, out of which 13 pay sands are producing.
8In the last few years, the field has been producing on an average 0.50 to 0.60 MMSCMD of gas depending upon the requirement of the consumers.
8Recently, the Konaban GCS was upgraded to handle 1.50 MMSCMD of gas.
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ONGC, plans to go ahead with a Rs 758 crore project in the Tripura gas fields.
8The gas major proposes to develop 30 wells across six gas fields namely Boramura, Konaban, Agartala Extension Dome II, Manikynagar, Sundalbari and Gojalia at a cost of Rs 639 crore.
8In addition to that Rs 119 crore will be spent in constructing a gas compressor station (GCS) facility at Bhuratoli in Gojalia and a 53 km pipeline for transporting the gas to ONGC's power plant in Paltana.
8The produced gas will also be used in North Eastern Electric Power Corporation Limited (NEEPCO) power plant in Tripura.
8ONGC has already struck success in the Boramura, Rokhia, Agartala Dome, Gojalia, Tichna, Sonamura, Kunjaban, Sundulbari and Khubal fields during earlier exploration.
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8The gas major proposes to develop 30 wells across six gas fields namely Boramura, Konaban, Agartala Extension Dome II, Manikynagar, Sundalbari and Gojalia at a cost of Rs 639 crore.
8In addition to that Rs 119 crore will be spent in constructing a gas compressor station (GCS) facility at Bhuratoli in Gojalia and a 53 km pipeline for transporting the gas to ONGC's power plant in Paltana.
8The produced gas will also be used in North Eastern Electric Power Corporation Limited (NEEPCO) power plant in Tripura.
8ONGC has already struck success in the Boramura, Rokhia, Agartala Dome, Gojalia, Tichna, Sonamura, Kunjaban, Sundulbari and Khubal fields during earlier exploration.
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Arriving at the hydrocarbon potential of an area is a difficult task. Various agencies have estimated the shale gas resource potential in selected sedimentary basins and sub-basins in the country based on the geo-scientific data collected during the exploration of conventional oil and gas but all of them have come out with differing figures.
8While Schlumberger has put the shale gas resource potential somewhere between 300 to 2100 Trillion Cubic Feet (TCF) in the country, the US-based Energy Information Administration (EIA), in 201,3 put the figure at 584 TCF.
8Over and above this, according to the EIA, four basins in India (Cambay Onland, Damodar, Krishna Godavari Onland & Cauvery Onland) also hold around 87 billion barrels of shale oil.
8As per ONGC's estimates, five basins in India (Cambay Onland, Ganga Valley, Assam & Assam Arakan, Krishna Godavari Onland & Cauvery Onland) are expected to hold around 187.5 TCF of shale gas.
8The Central Mine Planning and Design Institute (CMPDI) put the number at 45 TCF of shale gas in six sub basins, namely Jharia¸ Bokaro, North Karanpura, South Karanpura, Raniganj and Sohagpur.
8The United States Geological Survey (USGS) has estimated that about 6.1 TCF of shale gas can be technically recovered from three basins, namely Cambay Onland, Krishna Godavari Onland & Cauvery Onland. Furthermore, the USGS is of the view that these basins also have potential for shale oil. Details
8While Schlumberger has put the shale gas resource potential somewhere between 300 to 2100 Trillion Cubic Feet (TCF) in the country, the US-based Energy Information Administration (EIA), in 201,3 put the figure at 584 TCF.
8Over and above this, according to the EIA, four basins in India (Cambay Onland, Damodar, Krishna Godavari Onland & Cauvery Onland) also hold around 87 billion barrels of shale oil.
8As per ONGC's estimates, five basins in India (Cambay Onland, Ganga Valley, Assam & Assam Arakan, Krishna Godavari Onland & Cauvery Onland) are expected to hold around 187.5 TCF of shale gas.
8The Central Mine Planning and Design Institute (CMPDI) put the number at 45 TCF of shale gas in six sub basins, namely Jharia¸ Bokaro, North Karanpura, South Karanpura, Raniganj and Sohagpur.
8The United States Geological Survey (USGS) has estimated that about 6.1 TCF of shale gas can be technically recovered from three basins, namely Cambay Onland, Krishna Godavari Onland & Cauvery Onland. Furthermore, the USGS is of the view that these basins also have potential for shale oil. Details
Foreign Direct Investment (FDI) in the petroleum and natural gas sector in the April-June quarter has fallen to a dismal Rs 31.35 crore as against the total planned capital investment of Rs 14,277.95 crore. In percentage terms, this works out to a meager 0.22%.
8In 2014-15, the total FDI inflow was Rs 6,473.22 crore as against the total planned capital investment of Rs 69,828.81 crore. In percentage terms, this worked out to 9.27%.
8Before that, in 2013-14, total FDI inflow was Rs 678.39 crore as against the total plan capital investment of Rs 1,07,092.38 crore. This was 0.63% of the total planned capital investment.
8In 2012-13, India attracted FDI of Rs 1,192.57 crore as compared to the total planned capital investment of Rs 68,079.69 crore. In percentage terms, this worked out to 1.75%.
8The highest investment has been in exploration and production of oil and natural gas, followed by refineries and marketing, including pipeline networks and LNG re-gasification infrastructure.
8The present Foreign Direct Investment (FDI) policy for petroleum and natural gas sector allows 100% automatic route for exploration and production, refining by the private companies (for public sector companies 49% on automatic route without any divestment or dilution of domestic equity in the existing PSUs), marketing of petroleum products, pipelines, storage and LNG re-gasification infrastructure and all related services, subject to existing sectoral policy and regulatory framework in the oil and gas sector sector. Details
8In 2014-15, the total FDI inflow was Rs 6,473.22 crore as against the total planned capital investment of Rs 69,828.81 crore. In percentage terms, this worked out to 9.27%.
8Before that, in 2013-14, total FDI inflow was Rs 678.39 crore as against the total plan capital investment of Rs 1,07,092.38 crore. This was 0.63% of the total planned capital investment.
8In 2012-13, India attracted FDI of Rs 1,192.57 crore as compared to the total planned capital investment of Rs 68,079.69 crore. In percentage terms, this worked out to 1.75%.
8The highest investment has been in exploration and production of oil and natural gas, followed by refineries and marketing, including pipeline networks and LNG re-gasification infrastructure.
8The present Foreign Direct Investment (FDI) policy for petroleum and natural gas sector allows 100% automatic route for exploration and production, refining by the private companies (for public sector companies 49% on automatic route without any divestment or dilution of domestic equity in the existing PSUs), marketing of petroleum products, pipelines, storage and LNG re-gasification infrastructure and all related services, subject to existing sectoral policy and regulatory framework in the oil and gas sector sector. Details
The environment ministry has issued a clarification to end the ambiguity over the meaning of ‘foreshore facilities’ under the Coastal Regulation Zone (CRZ) Notification, 2011.
8Under the CRZ Notification, 2011, setting up of new industries and expansion of existing industries within such Zones is prohibited. However, those activities which are directly related to waterfront or directly need foreshore facilities are exempted from such prohibition.
8The illustrative list of foreshore facilities which qualify for such exemption as per the notification includes ports and harbours, jetties, quays, wharves, erosion control measures, breakwaters, pipelines, lighthouses and navigational safety facilities, among others. Since the list is not exhaustive, it was prone to subjective interpretation resulting in some important foreshore facilities attracting the prohibition clause in the notification which was unintended.
8This issue was deliberated threadbare in the meetings of the Group of Infrastructure chaired by the Minister of Shipping, Road Transport & Highways, Nitin Gadkari. Pursuant to a decision taken in the meeting, the Ministry of Environment, Forests and Climate Change issued a clarificatory letter advising that all foreshore facilities which are exclusively for ports and harbour infrastructure like slipways, drydocks, shipbuilding yards, ship repair yards, ship lifts, marinas are permissible under CRZ Notification, 2011.
8With this clarification, the ambiguity over the meaning of 'foreshore facilities' stands cleared thus giving a fillip to shipping related ancillary activities and associated industries and facilities. Details
8Under the CRZ Notification, 2011, setting up of new industries and expansion of existing industries within such Zones is prohibited. However, those activities which are directly related to waterfront or directly need foreshore facilities are exempted from such prohibition.
8The illustrative list of foreshore facilities which qualify for such exemption as per the notification includes ports and harbours, jetties, quays, wharves, erosion control measures, breakwaters, pipelines, lighthouses and navigational safety facilities, among others. Since the list is not exhaustive, it was prone to subjective interpretation resulting in some important foreshore facilities attracting the prohibition clause in the notification which was unintended.
8This issue was deliberated threadbare in the meetings of the Group of Infrastructure chaired by the Minister of Shipping, Road Transport & Highways, Nitin Gadkari. Pursuant to a decision taken in the meeting, the Ministry of Environment, Forests and Climate Change issued a clarificatory letter advising that all foreshore facilities which are exclusively for ports and harbour infrastructure like slipways, drydocks, shipbuilding yards, ship repair yards, ship lifts, marinas are permissible under CRZ Notification, 2011.
8With this clarification, the ambiguity over the meaning of 'foreshore facilities' stands cleared thus giving a fillip to shipping related ancillary activities and associated industries and facilities. Details
Petroleum minister Dharmendra Pradhan made several replies relating to the oil and gas sector in the Rajya Sabha recently. The replies related to the following:
8Steps for implementation of bio-fuel programme
8Non-supply of CNG to some states
8Areas covered under 5th round of CGD bidding
8Crude supply to refineries in Assam
8Oil reserves and production in North-East as on April 1, 2015
8Introduction of BS-IV fuels in the entire country by April 1, 2017
8Names of 63 cities where BS-IV auto fuels have already been implemented
8Setting up of solar power systems at Retail Outlets
8Rules relating to the acquisition of land by the PSUs Details
8Steps for implementation of bio-fuel programme
8Non-supply of CNG to some states
8Areas covered under 5th round of CGD bidding
8Crude supply to refineries in Assam
8Oil reserves and production in North-East as on April 1, 2015
8Introduction of BS-IV fuels in the entire country by April 1, 2017
8Names of 63 cities where BS-IV auto fuels have already been implemented
8Setting up of solar power systems at Retail Outlets
8Rules relating to the acquisition of land by the PSUs Details
The upcoming strategic crude storage facilities at Mangalore and Padur are expected to be ready by October 2015.
8The rock cavern storage facility at Visakhapatnam has already been completed. Filling of crude oil in the Vishakhapatnam cavern commenced in June, 2015. Two very large crude carriers (VLCCs) containing 0.54 MMT of crude oil were unloaded in the cavern.
8The three strategic reserve facilities -- Visakhapatnam, Mangalore and Padur -- will hold a total of 5.33 MMT of crude oil. While the Vishakhapatnam cavern has a capacity of 1.33 MMT, Mangalore and Padur will hold 1.5 MMT and 2.5 MMT, respectively.
8The Mangalore and Padur facilities are nearing completion and waiting for pipeline connections from the nearest ports.
8The three caverns Visakhapatnam, Mangalore and Padur are being constructed as part of first phase.
8In order to further increase the strategic crude oil storage capacity, a detailed feasibility report has been prepared for construction of an additional 12.5 MMT of strategic crude oil storages in second phase at four locations viz. Bikaner (Rajasthan), Rajkot (Gujarat), Chandikhol (Odisha) and Padur. Details
8The rock cavern storage facility at Visakhapatnam has already been completed. Filling of crude oil in the Vishakhapatnam cavern commenced in June, 2015. Two very large crude carriers (VLCCs) containing 0.54 MMT of crude oil were unloaded in the cavern.
8The three strategic reserve facilities -- Visakhapatnam, Mangalore and Padur -- will hold a total of 5.33 MMT of crude oil. While the Vishakhapatnam cavern has a capacity of 1.33 MMT, Mangalore and Padur will hold 1.5 MMT and 2.5 MMT, respectively.
8The Mangalore and Padur facilities are nearing completion and waiting for pipeline connections from the nearest ports.
8The three caverns Visakhapatnam, Mangalore and Padur are being constructed as part of first phase.
8In order to further increase the strategic crude oil storage capacity, a detailed feasibility report has been prepared for construction of an additional 12.5 MMT of strategic crude oil storages in second phase at four locations viz. Bikaner (Rajasthan), Rajkot (Gujarat), Chandikhol (Odisha) and Padur. Details
Finally, the four countries involved in the $10 billion TAPI pipeline project -- Turkmenistan, Afghanistan, Pakistan and India -- have decided to appoint Turkmenistan's state-owned company TurkmenGaz as the lead consortium for the project.
8The decision was taken during 22nd Steering Committee (SC) meeting of the TAPI pipeline project held in Ashgabat on August 6, 2015. Petroleum minister Dharmendra Pradhan had led the Indian delegation to the 22nd SC meeting. Pradhan was accompanied by Ambassador of India, senior officials from MEA, MoPNG, CMD, GAIL, MD, OVL and Director (Pipeline), IOC.
8During the meeting it was agreed that the four countries involved in the project will own the project and take steps for early implementation of the project, subject to techno-commercial viability, shareholders agreement and investment agreement.
8TurkmenGaz with put in majority of the investment and the construction of the Turkmen segment of the pipeline is expected to start in December 2015. Details
8The decision was taken during 22nd Steering Committee (SC) meeting of the TAPI pipeline project held in Ashgabat on August 6, 2015. Petroleum minister Dharmendra Pradhan had led the Indian delegation to the 22nd SC meeting. Pradhan was accompanied by Ambassador of India, senior officials from MEA, MoPNG, CMD, GAIL, MD, OVL and Director (Pipeline), IOC.
8During the meeting it was agreed that the four countries involved in the project will own the project and take steps for early implementation of the project, subject to techno-commercial viability, shareholders agreement and investment agreement.
8TurkmenGaz with put in majority of the investment and the construction of the Turkmen segment of the pipeline is expected to start in December 2015. Details
This website believes that the Modi government should reject two big proposals that Numaligarh refinery, a subsidiary of Bharat Petroleum Corporation Ltd (BPCL), is pushing for approval. One seeks a Rs 20,000 crore expansion of the refinery in Assam from 3 to 9 MMTPA and the other calls for installing a bio-refinery project using bamboo as the feedstock.
8BPCL has asked the central government for a Rs.8,800 crore capital subsidy for the Rs.20,000 crore expansion plan
8The capital subsidy alone will not be enough to make the refinery viable. BPCL has said that the excise duty relief of 50% already available on products sold by the Numaligarh refinery because it is based in the North East, should be made 100% to enable the expansion to take place.
8When the refinery is expanded, most of the the extra capacity will only cater to demand originating outside of the North East. The industrial climate in the region is poor and it is unlikely that enough demand for petroleum products will be created there to keep a 9 MMTPA refinery going. There are three other refineries already operational in Assam and jostling for market share. What is the point of importing crude via a pipeline all the way from the East Coast, either from Haldia or Paradip, and then taking finished products back, perhaps for the same distance to the mainland through a pipeline that will run parallel to the one importing crude?
8A 6 MMTPA refining capacity is sought to be built with a capital subsidy of Rs 8000 crore and a excise duty relief amounting to a whopping Rs 8400 crore a year! The 50% excise duty relief on the existing 3 MMTPA capacity is Rs 600 crore a year. And if the capacity is expanded by another 6 MMTPA and 100% relief is granted as sought by BPCL, the figure totals up to Rs 7200 crore on the incremental capacity. If duty relief is to cover the entire 9 MMTPA capacity, the subsidy will come to Rs 8400 crore.
8The question that immediately comes to mind is what really prompts BPCL to come up with such a preposterous demand and yet maintain a straight face. The only plausible answer is that the new government will buy the argument that the capacity is coming up in industry-deficient and militancy ridden North East of India where industrialization should be promoted. This was exactly the logic on which the existing refinery was set up when Rajiv Gandhi signed the Assam Accord with the agitating All Assam Students Union in 1984. But a lot of a water has flown down the Brahmaputra since then. It is stagnating crude production from the Assam fields that has prompted BPCL to suggest a 1,350 km crude import pipeline all the way from Paradip to feed the refinery expansion. It is also a well established fact that a state-of-art refinery employs very few people and the Numaligarh refinery per say had little or no economic linkages with the rest of Assam's economy. The crude is processed within the refinery and while some of the petrol and diesel is distributed locally the rest is shipped out to the mainland
8And who has really befitted from it? It is just a few hundred people employed in the refinery. Ironically though, the Numaligarh refinery has accentuated the social divide in Upper Assam as a small class of privileged public sector employees is created from amongst the mass of un-empowered and impoverished people dotting the surrounding landscape. A few hundred people lead an ivory tower existence amidst tight CISF provided security at Numaligarh with virtually no connection with the local economy or population. The crude is piped into the refinery from Oil India's fields around Duliajan and shipped out and that's about all there is to it. Clearly the model of using large publicly funded and subsidy driven industrial plants to act as a catalyst for industrial development of the North East has failed to work.
8It is also a myth that Numaligarh can help sell Indian petroleum products in Bangaldesh and Myanmar. The route to Myanmar is long and torturous, and traverses difficult terrain. A pipeline will be unviable given low offtake in areas bordering India and the fragile border roads will not be able to take the load of tankers ferrying MS and HSD from the plains of Assam to the Burmese border. 8A pipeline to Bangladesh may make more economic sense but it may not be an easy country to do business with. Currently we have a friendly regime in the neigbouring nation but when the tide turns and the regime changes, anything can happen.
8The website believes that it will not be wise for the Modi government to dole out a Rs 8,800 crore capital subsidy on a Rs 8400 crore excise relief to the refinery.
8If indeed the government is a mood to dole out subsidies, the capacity can be set up elsewhere in mainland India without any subsidy and can then be notionally attributed to Numaligarh refinery. The capital subsidy saved can be used through a Special Purpose Vehicle to develop schools, hospitals and infrastructure in Upper Assam. The annual excise dole sought by BPCL should be used to maintain and expand the infrastructure created by the capital subsidy.
8The Assam economy and its people will benefit much more that way than through an expansion of the Numaligarh refinery. Details
8BPCL has asked the central government for a Rs.8,800 crore capital subsidy for the Rs.20,000 crore expansion plan
8The capital subsidy alone will not be enough to make the refinery viable. BPCL has said that the excise duty relief of 50% already available on products sold by the Numaligarh refinery because it is based in the North East, should be made 100% to enable the expansion to take place.
8When the refinery is expanded, most of the the extra capacity will only cater to demand originating outside of the North East. The industrial climate in the region is poor and it is unlikely that enough demand for petroleum products will be created there to keep a 9 MMTPA refinery going. There are three other refineries already operational in Assam and jostling for market share. What is the point of importing crude via a pipeline all the way from the East Coast, either from Haldia or Paradip, and then taking finished products back, perhaps for the same distance to the mainland through a pipeline that will run parallel to the one importing crude?
8A 6 MMTPA refining capacity is sought to be built with a capital subsidy of Rs 8000 crore and a excise duty relief amounting to a whopping Rs 8400 crore a year! The 50% excise duty relief on the existing 3 MMTPA capacity is Rs 600 crore a year. And if the capacity is expanded by another 6 MMTPA and 100% relief is granted as sought by BPCL, the figure totals up to Rs 7200 crore on the incremental capacity. If duty relief is to cover the entire 9 MMTPA capacity, the subsidy will come to Rs 8400 crore.
8The question that immediately comes to mind is what really prompts BPCL to come up with such a preposterous demand and yet maintain a straight face. The only plausible answer is that the new government will buy the argument that the capacity is coming up in industry-deficient and militancy ridden North East of India where industrialization should be promoted. This was exactly the logic on which the existing refinery was set up when Rajiv Gandhi signed the Assam Accord with the agitating All Assam Students Union in 1984. But a lot of a water has flown down the Brahmaputra since then. It is stagnating crude production from the Assam fields that has prompted BPCL to suggest a 1,350 km crude import pipeline all the way from Paradip to feed the refinery expansion. It is also a well established fact that a state-of-art refinery employs very few people and the Numaligarh refinery per say had little or no economic linkages with the rest of Assam's economy. The crude is processed within the refinery and while some of the petrol and diesel is distributed locally the rest is shipped out to the mainland
8And who has really befitted from it? It is just a few hundred people employed in the refinery. Ironically though, the Numaligarh refinery has accentuated the social divide in Upper Assam as a small class of privileged public sector employees is created from amongst the mass of un-empowered and impoverished people dotting the surrounding landscape. A few hundred people lead an ivory tower existence amidst tight CISF provided security at Numaligarh with virtually no connection with the local economy or population. The crude is piped into the refinery from Oil India's fields around Duliajan and shipped out and that's about all there is to it. Clearly the model of using large publicly funded and subsidy driven industrial plants to act as a catalyst for industrial development of the North East has failed to work.
8It is also a myth that Numaligarh can help sell Indian petroleum products in Bangaldesh and Myanmar. The route to Myanmar is long and torturous, and traverses difficult terrain. A pipeline will be unviable given low offtake in areas bordering India and the fragile border roads will not be able to take the load of tankers ferrying MS and HSD from the plains of Assam to the Burmese border. 8A pipeline to Bangladesh may make more economic sense but it may not be an easy country to do business with. Currently we have a friendly regime in the neigbouring nation but when the tide turns and the regime changes, anything can happen.
8The website believes that it will not be wise for the Modi government to dole out a Rs 8,800 crore capital subsidy on a Rs 8400 crore excise relief to the refinery.
8If indeed the government is a mood to dole out subsidies, the capacity can be set up elsewhere in mainland India without any subsidy and can then be notionally attributed to Numaligarh refinery. The capital subsidy saved can be used through a Special Purpose Vehicle to develop schools, hospitals and infrastructure in Upper Assam. The annual excise dole sought by BPCL should be used to maintain and expand the infrastructure created by the capital subsidy.
8The Assam economy and its people will benefit much more that way than through an expansion of the Numaligarh refinery. Details
8Demurrage costs incurred by OMCs: The three Oil Marketing Companies (OMCs) -- HPCL, BPCL and IOC -- are forced to pay demurrage costs due to lack of requisite infrastructure at domestic ports. The three OMC paid a total of Rs 546.23 crore during 2014-15.
--Of this, the highest was paid by IOC at Rs 355.62 crore followed by HPCL at Rs 145.02 crore and BPCL at Rs 45.59 crore.
--Similar details of demurrage costs incurred by the three OMCs during 2012-13 and 2013-14, are also carried.
8Capacity utilization and production at Barauni Refinery in last three years: The capacity utilization and production of petroleum products at the IOC's 6 MMTPA Barauni Refinery during the last three years was as under:
--2012-13; Utilization: 105.7%; Production: 5.75 MMT
--2013-14; Utilization: 108%; Production: 5.95 MMT
--2014-15; Utilization: 99.1%; Production: 5.41 MMT
Currently, IOC plans to expand the capacity of the refinery from 6.0 MMTPA to 9.0 MMTPA in two phases. Under Phase-I, the capacity will be expanded from 6.0 MMTPA to 7.0 MMTPA and under Phase-II, it will be expanded from 7.0 MMTPA to 9.0 MMTPA.
Details
--Of this, the highest was paid by IOC at Rs 355.62 crore followed by HPCL at Rs 145.02 crore and BPCL at Rs 45.59 crore.
--Similar details of demurrage costs incurred by the three OMCs during 2012-13 and 2013-14, are also carried.
8Capacity utilization and production at Barauni Refinery in last three years: The capacity utilization and production of petroleum products at the IOC's 6 MMTPA Barauni Refinery during the last three years was as under:
--2012-13; Utilization: 105.7%; Production: 5.75 MMT
--2013-14; Utilization: 108%; Production: 5.95 MMT
--2014-15; Utilization: 99.1%; Production: 5.41 MMT
Currently, IOC plans to expand the capacity of the refinery from 6.0 MMTPA to 9.0 MMTPA in two phases. Under Phase-I, the capacity will be expanded from 6.0 MMTPA to 7.0 MMTPA and under Phase-II, it will be expanded from 7.0 MMTPA to 9.0 MMTPA.
Details
IOCL is planning to expand the capacity of the LPG bottling plant in Kanchipuram,Tamil Nadu so as to meet the market demand.
8Capcity will be expanded from the existing 44,000 MTs/annum to 1,50,000 MTs/annum.
8There is high demand within the state for 5 Kg Cylinder (Non domestic), 14.2 Kg Cylinder (domestic) and 19 Kg Cylinder (non domestic), therefore to reduce their scarcity the gas major decided to expand the capacity.
8The expansion will be carried out in the existing land without the procurement of additional land.
8Total power requirement for the project is 400KVA which will be supplied by Tamil Nadu state and the power backup will be net through 500kva and 160 kva DG sets.
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8Capcity will be expanded from the existing 44,000 MTs/annum to 1,50,000 MTs/annum.
8There is high demand within the state for 5 Kg Cylinder (Non domestic), 14.2 Kg Cylinder (domestic) and 19 Kg Cylinder (non domestic), therefore to reduce their scarcity the gas major decided to expand the capacity.
8The expansion will be carried out in the existing land without the procurement of additional land.
8Total power requirement for the project is 400KVA which will be supplied by Tamil Nadu state and the power backup will be net through 500kva and 160 kva DG sets.
Click on the Reports for more. Details
Numaligarh refinery is also planning to promote a bio-refinery in the North East to make ethanol for blending with petrol using bamboo as the feedstock and this website believes it is a bad idea.
8The refinery does not make sense when crude oil prices have come down dramatically over the last one year to hover around $50 per barrel. At this price, ethanol blending does not make sense at all unless of course a subsidy is granted to the enterprise because it is based in the North East.
8The fall in the oil price comes at a time when governments generally are questioning their support for biofuels. For its survival the sector will have to depend on political support through legally mandated demand and India that will not forthcoming.
8And while ethanol was supposed to make petrol cleaner, critics say that 10% ethanol blended petrol actually has lower fuel economy, meaning drivers have to buy more fuel to drive the same distance. More fuel-efficient cars and lower-sulfur gasoline have made the need for ethanol blending questionable
8Production of ethanol does not address climate change and has actually done more harm than good, including creating more greenhouse gases. Over the last few years environmentalists have mostly withdrawn support to bio-fuels as an alternative fuel.
8Most importantly, the usage of bamboo in an industrial scale to manufacture ethanol will disrupt the fragile ecological balance in the North East much like plywood manufacturers did by felling trees in such an unprecedented manner that the Supreme Court had to step in a enforce a ban. Details
8The refinery does not make sense when crude oil prices have come down dramatically over the last one year to hover around $50 per barrel. At this price, ethanol blending does not make sense at all unless of course a subsidy is granted to the enterprise because it is based in the North East.
8The fall in the oil price comes at a time when governments generally are questioning their support for biofuels. For its survival the sector will have to depend on political support through legally mandated demand and India that will not forthcoming.
8And while ethanol was supposed to make petrol cleaner, critics say that 10% ethanol blended petrol actually has lower fuel economy, meaning drivers have to buy more fuel to drive the same distance. More fuel-efficient cars and lower-sulfur gasoline have made the need for ethanol blending questionable
8Production of ethanol does not address climate change and has actually done more harm than good, including creating more greenhouse gases. Over the last few years environmentalists have mostly withdrawn support to bio-fuels as an alternative fuel.
8Most importantly, the usage of bamboo in an industrial scale to manufacture ethanol will disrupt the fragile ecological balance in the North East much like plywood manufacturers did by felling trees in such an unprecedented manner that the Supreme Court had to step in a enforce a ban. Details
Emission reduction targets and policies at a national and international level currently use production-based emissions as the basis for setting targets and measuring outcomes.
8However, in the absence of a global uniform mechanism for putting a price on, or capping emissions, there is a risk that efforts to drive emission reductions from the production-side only may result in unintended outcomes.
8Main drawbacks are as follows:
-- Carbon leakage: Changes in the location of emissions-intensive production are captured as reductions in production-based emissions in one country even though the overall impact may be to increase on global emissions, due to the productive task being taken up by a trading partner with higher emissions-intensity.
-- Inefficient signals for abatement: An example of LNG exports from the United States and Australia, which may result in increases in the production-based emissions of these countries, even though from a whole of lifecycle perspective LNG may displace higher emissions fuels and play a role in reducing overall global carbon emissions. Thus a wholesome approach is lacking while dealing with these kind of trades .
8It is clear that solely focusing on production-based emissions may not provide a full picture of the impact of emissions reduction policies on global emissions.
8Complementing production-based analysis with analysis of carbon emissions from a consumption perspective can provide insights into these challenges and inform appropriate policy responses.
Click on Reports for more. Details
8However, in the absence of a global uniform mechanism for putting a price on, or capping emissions, there is a risk that efforts to drive emission reductions from the production-side only may result in unintended outcomes.
8Main drawbacks are as follows:
-- Carbon leakage: Changes in the location of emissions-intensive production are captured as reductions in production-based emissions in one country even though the overall impact may be to increase on global emissions, due to the productive task being taken up by a trading partner with higher emissions-intensity.
-- Inefficient signals for abatement: An example of LNG exports from the United States and Australia, which may result in increases in the production-based emissions of these countries, even though from a whole of lifecycle perspective LNG may displace higher emissions fuels and play a role in reducing overall global carbon emissions. Thus a wholesome approach is lacking while dealing with these kind of trades .
8It is clear that solely focusing on production-based emissions may not provide a full picture of the impact of emissions reduction policies on global emissions.
8Complementing production-based analysis with analysis of carbon emissions from a consumption perspective can provide insights into these challenges and inform appropriate policy responses.
Click on Reports for more. Details
The Tanzanian Ministry of Energy and Mines has issued a No Objection Certificate (NOC) to Tata Petrodyne Limited (TPL) for picking up a 50% stake each in two Tanzanian oil fields.
8The two fields are Kilosa-Kilombero and Pangani.
8The 50% share has been farmed-out by Swala Energy Limited to the Tata subsidiary.
8As per the agreement, TPL will pay $5.7 million to Swala as consideration towards past costs incurred in the two contract areas.
8TPL will "carry" Swala`s cost in the Kilosa-Kilombero and Pangani licenses, up to a maximum of $2.5 million and $2.125 million, respectively.
8Though the farm-out has been okayed by the Tanzanian Ministry, a final consent from the Fair Competition Commission (FCC) is still needed to complete the deal Details
8The two fields are Kilosa-Kilombero and Pangani.
8The 50% share has been farmed-out by Swala Energy Limited to the Tata subsidiary.
8As per the agreement, TPL will pay $5.7 million to Swala as consideration towards past costs incurred in the two contract areas.
8TPL will "carry" Swala`s cost in the Kilosa-Kilombero and Pangani licenses, up to a maximum of $2.5 million and $2.125 million, respectively.
8Though the farm-out has been okayed by the Tanzanian Ministry, a final consent from the Fair Competition Commission (FCC) is still needed to complete the deal Details
The Petroleum and Natural Gas Regulatory Board (PNGRB) has invited bids from eligible entities for development of a natural gas pipeline network from Kakinada to Nellore in Andhra Pradesh.
8The pipeline will originate from Kakinada (East Godavari district, Andhra Pradesh) and will go up to Nellore (Sri Potti Sriramulu Nellore district, Andhra Pradesh) passing through Rajahmundry (East Godavari district, Andhra Pradesh), Vijayawada (Krishna district, Andhra Pradesh), Guntur (Guntur district), Ongole (Prakasam district, Andhra Pradesh) and Kadapa (Kadapa district, Andhra Pradesh).
8The pipeline, having a length of 525 kms (excluding spurlines), with have a system capacity of at least 2.67 MMSCMD. The spur-lines shall be provided by the authorized entity as per the customer's requirement en-route the pipeline in line with the provisions of the relevant regulations.
8The sale of bid document has already commenced which will go up to November 23, 2015 (1500 hrs). The offers can be submitted before November 30, 2015 (1200 hrs).
8The proposed Kakinada-Vijayawada-Nellore natural gas pipeline is part of Andhra Pradesh’s gas grid, including the city gas distribution (CGD) network for the state's new proposed capital, Amaravati. Details
8The pipeline will originate from Kakinada (East Godavari district, Andhra Pradesh) and will go up to Nellore (Sri Potti Sriramulu Nellore district, Andhra Pradesh) passing through Rajahmundry (East Godavari district, Andhra Pradesh), Vijayawada (Krishna district, Andhra Pradesh), Guntur (Guntur district), Ongole (Prakasam district, Andhra Pradesh) and Kadapa (Kadapa district, Andhra Pradesh).
8The pipeline, having a length of 525 kms (excluding spurlines), with have a system capacity of at least 2.67 MMSCMD. The spur-lines shall be provided by the authorized entity as per the customer's requirement en-route the pipeline in line with the provisions of the relevant regulations.
8The sale of bid document has already commenced which will go up to November 23, 2015 (1500 hrs). The offers can be submitted before November 30, 2015 (1200 hrs).
8The proposed Kakinada-Vijayawada-Nellore natural gas pipeline is part of Andhra Pradesh’s gas grid, including the city gas distribution (CGD) network for the state's new proposed capital, Amaravati. Details
Risk levels have gone up for the Indian trio -- made up of ONGC, Bharat Petro Resoures Ltd (BPRL) and Oil India Ltd (OIL) -- in the multi-billion dollar LNG trains that are being developed in Mozambique by the operator Anadarko Petroleum in the face of falling gas prices.
8Anadarko has a 26% participating interest in the Rovuma Area 1 Offshore block -- which may contain as much as 50 to 70 TCF of gas -- while the stakes of ONGC, BPRL (a subsidiary of Bharat Petroleum Corporation Ltd) and OIL are 16%, 10% and 4% respectively, among others.
8The risks of not eliciting an adequate return on investment continues to remain high even as Anadarko awarded an initial development contract for the onshore LNG terminal that will house two trains of 6 MMTPA each to a consortium consisting of CB&I, Chiyoda Corporation and Saipem (known as the CCS JV) recently. The contract however is still not firm but is subject to negotiations even as the promoter consortium grapples with problems of raising adequate funding to achive the so far elusive Final Investment Decision (FID) for the project that may total up to $20 billion or more.
8The problem is simple, the FOB price of LNG has crashed dramatically over the last one year whereas the project was built on what may now seem like an impossibly high FOB price of $12/mmbtu. The LNG from the project was sought to be sold at a mix of Japanese Custom cleared Crude (JCC) and Henry Hub/NBP prices, both of which have gone down dramatically over the year.
8According to officials from some of the Indian companies who spoke to this website but did not want to be named, the project IRR has gone down down dramatically below the hurdle rate with the drop in the FOB price after factoring in the high acquisition cost of their stakes.
8Anadarko itself is reported to be struggling to pick up $15 billion in debt to fund the project and even though the company denies it vehemently, it is looking at diluting its stakes so as to bring down the risk invoked.
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8Anadarko has a 26% participating interest in the Rovuma Area 1 Offshore block -- which may contain as much as 50 to 70 TCF of gas -- while the stakes of ONGC, BPRL (a subsidiary of Bharat Petroleum Corporation Ltd) and OIL are 16%, 10% and 4% respectively, among others.
8The risks of not eliciting an adequate return on investment continues to remain high even as Anadarko awarded an initial development contract for the onshore LNG terminal that will house two trains of 6 MMTPA each to a consortium consisting of CB&I, Chiyoda Corporation and Saipem (known as the CCS JV) recently. The contract however is still not firm but is subject to negotiations even as the promoter consortium grapples with problems of raising adequate funding to achive the so far elusive Final Investment Decision (FID) for the project that may total up to $20 billion or more.
8The problem is simple, the FOB price of LNG has crashed dramatically over the last one year whereas the project was built on what may now seem like an impossibly high FOB price of $12/mmbtu. The LNG from the project was sought to be sold at a mix of Japanese Custom cleared Crude (JCC) and Henry Hub/NBP prices, both of which have gone down dramatically over the year.
8According to officials from some of the Indian companies who spoke to this website but did not want to be named, the project IRR has gone down down dramatically below the hurdle rate with the drop in the FOB price after factoring in the high acquisition cost of their stakes.
8Anadarko itself is reported to be struggling to pick up $15 billion in debt to fund the project and even though the company denies it vehemently, it is looking at diluting its stakes so as to bring down the risk invoked.
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The website here carries a report on crude oil demand and supply in India as well as in the others parts of the world. A 12 month averaged data up to June 2015 is complied in the Report.
8List of topics included are as follows:
-- Future crude oil prices
-- Current world oil demand & supply
-- Oil Demand/Supply Ratio
-- Oil Supply: OPEC & Non-OPEC
-- Crude Oil Output
-- Oil Demand: World
-- Oil Demand: World, OECD, Non-OECD
-- Oil Demand: G7
-- Oil Demand: Asia, OPEC, Middle East
-- Oil Demand: Asia
-- Oil Supply: Non-OPEC Asia
-- Oil Supply: Big Producers
-- Oil Demand: Global
Click on the Reports for more. Details
8List of topics included are as follows:
-- Future crude oil prices
-- Current world oil demand & supply
-- Oil Demand/Supply Ratio
-- Oil Supply: OPEC & Non-OPEC
-- Crude Oil Output
-- Oil Demand: World
-- Oil Demand: World, OECD, Non-OECD
-- Oil Demand: G7
-- Oil Demand: Asia, OPEC, Middle East
-- Oil Demand: Asia
-- Oil Supply: Non-OPEC Asia
-- Oil Supply: Big Producers
-- Oil Demand: Global
Click on the Reports for more. Details
BPCL, which has an LPG bulk storage and bottling facility at Sengipatti in Tamil Nadu, has decided to raise the storage capacity of the facility by adding a 600 MT LPG bulk mounded storage vessel.
8Presently, the plant receives LPG from SHV LPG India Pvt Ltd, Tuticorin, Kochi, and CBDU, Narimanam, through bullet trucks and stores it in the three `above ground` LPG bullets (having a capacity of 150 MTs each) resulting in a total storage capacity of 450 MTs.
8The plant operates strictly as a storage and filling facility for LPG into 14.2 kg, 19 kg, 35 kg, 47.5 kg and 5 kg cylinders.
8The LPG plant is currently serving 8.5 lakh customers in 14 districts of Tamil Nadu and Puducherry through 54 LPG distributorships.
8The proposed new storage tank, along with allied facilities, is expected to be completed by March 2017. Details
8Presently, the plant receives LPG from SHV LPG India Pvt Ltd, Tuticorin, Kochi, and CBDU, Narimanam, through bullet trucks and stores it in the three `above ground` LPG bullets (having a capacity of 150 MTs each) resulting in a total storage capacity of 450 MTs.
8The plant operates strictly as a storage and filling facility for LPG into 14.2 kg, 19 kg, 35 kg, 47.5 kg and 5 kg cylinders.
8The LPG plant is currently serving 8.5 lakh customers in 14 districts of Tamil Nadu and Puducherry through 54 LPG distributorships.
8The proposed new storage tank, along with allied facilities, is expected to be completed by March 2017. Details
With a high growth rate of 12% in business, the demand for LPG is expected to grow up more than two-folds in near future.
8The BPCL`s LPG bottling plant has the lowest bulk LPG storage of 450 MTs in the entire Southern Region as compared to its other LPG bottling plants.
8The current storage facility of 450 MTs was initially designed for 12 station manual filling operation and with the recent enhancement of production facilities to 24 station fully electronic kosan filling machine, the production capacity has now gone up to 170 MTs in a day (single shift).
8With the present growth rate, BPCL plans to run the plant in double shifts. Therefore, the daily requirement of Bulk LPG will cross 320 MT/day.
8As the three 150 MT aboveground bullets are insufficient even for three days coverage (considering 170 MT per day production x 3 days = 510 MT), the company wants to create additional storage facilities keeping in mind its plans to move to double-shift operations.
8The plant has a six bay gantry and a maximum of 320 MTs of product can get unloaded. Thus, for three days coverage (320 MT per day), 960 MT product is required.
8It is in this light that BPCL has decided to augment the storage capacity by an additional 600 MTs. Details
8The BPCL`s LPG bottling plant has the lowest bulk LPG storage of 450 MTs in the entire Southern Region as compared to its other LPG bottling plants.
8The current storage facility of 450 MTs was initially designed for 12 station manual filling operation and with the recent enhancement of production facilities to 24 station fully electronic kosan filling machine, the production capacity has now gone up to 170 MTs in a day (single shift).
8With the present growth rate, BPCL plans to run the plant in double shifts. Therefore, the daily requirement of Bulk LPG will cross 320 MT/day.
8As the three 150 MT aboveground bullets are insufficient even for three days coverage (considering 170 MT per day production x 3 days = 510 MT), the company wants to create additional storage facilities keeping in mind its plans to move to double-shift operations.
8The plant has a six bay gantry and a maximum of 320 MTs of product can get unloaded. Thus, for three days coverage (320 MT per day), 960 MT product is required.
8It is in this light that BPCL has decided to augment the storage capacity by an additional 600 MTs. Details
IOC is planning to produce 100% BS-IV compliant MS and HSD at its Barauni Refinery.
8Accordingly the gas major is now in the process of selecting licensors for the new naphtha hydro treating and continuous catalytic reforming (NHT-CCR) unit ( 0.375 MMTPA ).
8As a part of the evaluation of licensors offers, it is required of them to get the plant cost estimation done.
8Hence, a consultant for carrying out the plant cost estimate is proposed to be lined up as a part of the licensor selection process for the revamp of the NHT-CCR unit.
8The total cost of the BS-IV project for quality up-gradation is Rs.1327 crore.
8As per the project, the refining capacity of 6.0 MMTPA will remain the same, however capacity of some units are proposed to be revamped to meet BS-IV standard for petrol and diesel.
Click on Report for more. Details
8Accordingly the gas major is now in the process of selecting licensors for the new naphtha hydro treating and continuous catalytic reforming (NHT-CCR) unit ( 0.375 MMTPA ).
8As a part of the evaluation of licensors offers, it is required of them to get the plant cost estimation done.
8Hence, a consultant for carrying out the plant cost estimate is proposed to be lined up as a part of the licensor selection process for the revamp of the NHT-CCR unit.
8The total cost of the BS-IV project for quality up-gradation is Rs.1327 crore.
8As per the project, the refining capacity of 6.0 MMTPA will remain the same, however capacity of some units are proposed to be revamped to meet BS-IV standard for petrol and diesel.
Click on Report for more. Details
The website here carries a report on crude oil demand and supply in India as well as in the others parts of the world. A 12 month averaged data up to June 2015 is complied in the Report.
8List of topics included are as follows:
-- Future crude oil prices
-- Current world oil demand & supply
-- Oil Demand/Supply Ratio
-- Oil Supply: OPEC & Non-OPEC
-- Crude Oil Output
-- Oil Demand: World
-- Oil Demand: World, OECD, Non-OECD
-- Oil Demand: G7
-- Oil Demand: Asia, OPEC, Middle East
-- Oil Demand: Asia
-- Oil Supply: Non-OPEC Asia
-- Oil Supply: Big Producers
-- Oil Demand: Global
Click on the Reports for more. Details
8List of topics included are as follows:
-- Future crude oil prices
-- Current world oil demand & supply
-- Oil Demand/Supply Ratio
-- Oil Supply: OPEC & Non-OPEC
-- Crude Oil Output
-- Oil Demand: World
-- Oil Demand: World, OECD, Non-OECD
-- Oil Demand: G7
-- Oil Demand: Asia, OPEC, Middle East
-- Oil Demand: Asia
-- Oil Supply: Non-OPEC Asia
-- Oil Supply: Big Producers
-- Oil Demand: Global
Click on the Reports for more. Details
8Mercator drills another well in Cambay block CB-9: After announcing its first oil discovery in the Cambay block CB-9, Mercator has drilled another well in the block.
The drilling work in the second well is at an advanced stage.
The first discovery -- dubbed Jyoti-1 -- in the block in the Cambay basin (Gujarat) flowed crude oil onto the surface thereby opening up a large corridor of possible hydrocarbon accumulation in the area.
8EIL chairman Sanjay Gupta given additional charge of Director (Commercial): Engineers India Ltd (EIL) has informed the BSE that the petroleum ministry has entrusted the additional charge of the post of Director (Commercial), EIL, to Sanjay Gupta, Chairman & Managing Director.
The additional charge has been given for a period of three months, with effect from September 1, 2015, to November 30, 2015, or till the appointment of regular incumbent to the post or until further orders, whichever is the earliest. Details
The drilling work in the second well is at an advanced stage.
The first discovery -- dubbed Jyoti-1 -- in the block in the Cambay basin (Gujarat) flowed crude oil onto the surface thereby opening up a large corridor of possible hydrocarbon accumulation in the area.
8EIL chairman Sanjay Gupta given additional charge of Director (Commercial): Engineers India Ltd (EIL) has informed the BSE that the petroleum ministry has entrusted the additional charge of the post of Director (Commercial), EIL, to Sanjay Gupta, Chairman & Managing Director.
The additional charge has been given for a period of three months, with effect from September 1, 2015, to November 30, 2015, or till the appointment of regular incumbent to the post or until further orders, whichever is the earliest. Details
