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Aug 2016
As for the drilling activity, the following requirements will come up
8A rig with a drilling capacity of up to 3500 meters will be needed
8Mud system and cuttings
8Chemical storage facilities
8Cementing
8Well logging equipment
8Attendant facilities, including 2000 KVA of power
Click on Reports for more Details
8A rig with a drilling capacity of up to 3500 meters will be needed
8Mud system and cuttings
8Chemical storage facilities
8Cementing
8Well logging equipment
8Attendant facilities, including 2000 KVA of power
Click on Reports for more Details
Even as RasGas price scales the $6.72/mmbtu mark, other cargoes have begun arriving in India at significantly lower prices
8The latest cargo from the LNG plant at Equatorial Guinea has made it to Shell's terminal at Hazira at $5.02/mmbtu
8The price differential between the long term cargo and the one arriving from Equatorial Guinea is a whopping 26%
8Another cargo had come in via the United Arab Emirates at a price of $6.02/mmbtu at Dahej
8A Nigerian cargo had arrived earlier at $5.37/mmbtu
Click on Details for the latest set of cargoes along with their prices Details
8The latest cargo from the LNG plant at Equatorial Guinea has made it to Shell's terminal at Hazira at $5.02/mmbtu
8The price differential between the long term cargo and the one arriving from Equatorial Guinea is a whopping 26%
8Another cargo had come in via the United Arab Emirates at a price of $6.02/mmbtu at Dahej
8A Nigerian cargo had arrived earlier at $5.37/mmbtu
Click on Details for the latest set of cargoes along with their prices Details
Click on Reports for more on:
8The latest crude oil price paid by Indian companies in comparison with the last three years
8The import bill incurred so far this year in comparison to the last three years
8The subsidy bill on sale of LPG and SKO so far this year and over the last three years
8Steps being taken by the government to reduce the fiscal burden of government levies on oil companies Details
8The latest crude oil price paid by Indian companies in comparison with the last three years
8The import bill incurred so far this year in comparison to the last three years
8The subsidy bill on sale of LPG and SKO so far this year and over the last three years
8Steps being taken by the government to reduce the fiscal burden of government levies on oil companies Details
Even as new countries, such as China, have made great strides in discovering shale oil and gas reserves, India has made little progress.
8Both OIL and ONGC were nominated by the government to undertake shale oil and gas work on a nomination basis and yet little effort has been made so far.
8The total investment on this front is a mere Rs 192 crore by the two companies between 2013-16.
8One big problem seems to be the availability of water in India. Shale gas and oil exploration consumes vast quantities of water in which India is deficient.
8ONGC has been on the lookout for water free fracturing techniques such as as shock waves and injection of carbon dioxide but these are still at the R&D stage.
8Find out more on an MOU signed by ONGC for such a technology.
8Indian companies could be a good target for international R& D companies looking to find clients for techniques that either use less water or no water at all
Click on Reports for more Details
8Both OIL and ONGC were nominated by the government to undertake shale oil and gas work on a nomination basis and yet little effort has been made so far.
8The total investment on this front is a mere Rs 192 crore by the two companies between 2013-16.
8One big problem seems to be the availability of water in India. Shale gas and oil exploration consumes vast quantities of water in which India is deficient.
8ONGC has been on the lookout for water free fracturing techniques such as as shock waves and injection of carbon dioxide but these are still at the R&D stage.
8Find out more on an MOU signed by ONGC for such a technology.
8Indian companies could be a good target for international R& D companies looking to find clients for techniques that either use less water or no water at all
Click on Reports for more Details
Canada was once the focus of Indian companies looking to acquire oil and gas assets.
8Until the oil price crash and the rise of US shale oil and gas revolution made the M&A teams in RIL, OVL and OIL lose interest.
8For reference purposes, the website carries here the latest update on Canada
8The country can still be an attractive destination for E&P funds
Click on Reports for more Details
8Until the oil price crash and the rise of US shale oil and gas revolution made the M&A teams in RIL, OVL and OIL lose interest.
8For reference purposes, the website carries here the latest update on Canada
8The country can still be an attractive destination for E&P funds
Click on Reports for more Details
For India, which is heavily dependent on oil-indexed gas pricing, the Henry Hub gas price movement has now become an important parameter to watch out for.
8This is for two reasons: One is to be able to bench mark oil-indexed pricing to the US hub based pricing system, and the other is on account of GAIL's attempt to still bring in some of the supplies out of its US commitments to India.
8There is now a concerted effort among importers of gas to move away from oil-indexed pricing to a hub based model.
For reference purposes, the website carries here a set of projections on how Henry Hub prices are going to behave until the year 2018 under the following three scenarios:
8Lower price case
8Mid price case
8Higher price case (when it can go up to $4/mmbtu
8Markets could tighten from reduced capital expenditures, drilling reductions, rising natural gas demand from improved integration of the Mexican market or U.S and new LNG projects coming online ahead of schedule.
8But there is a case made out for lower prices too
Click on Reports for more Details
8This is for two reasons: One is to be able to bench mark oil-indexed pricing to the US hub based pricing system, and the other is on account of GAIL's attempt to still bring in some of the supplies out of its US commitments to India.
8There is now a concerted effort among importers of gas to move away from oil-indexed pricing to a hub based model.
For reference purposes, the website carries here a set of projections on how Henry Hub prices are going to behave until the year 2018 under the following three scenarios:
8Lower price case
8Mid price case
8Higher price case (when it can go up to $4/mmbtu
8Markets could tighten from reduced capital expenditures, drilling reductions, rising natural gas demand from improved integration of the Mexican market or U.S and new LNG projects coming online ahead of schedule.
8But there is a case made out for lower prices too
Click on Reports for more Details
The country-wise risk attributed to E&P operations by a leading oil & gas consultancy company sees an improvement when it comes to India between now and 2020.
8The risk matrix has been calculated in terms of the quantum of government take, sanctity of government rules and regulations, expeditious clearances and approvals.
8The character of the regulatory regime and international openness are the other two parameters taken into cognizance while building the risk matrix
8Between 2016-2020, India moves two notches up, surpassing Indonesia and Vietnam, with a score of 5.59 points
8But it is way behind China, which will have a score of 7 in 2021.
8If India wants to improve its competitiveness, the petroleum minister Dharmendra Pradhan will have to do much more work.
Click on Reports for more Details
8The risk matrix has been calculated in terms of the quantum of government take, sanctity of government rules and regulations, expeditious clearances and approvals.
8The character of the regulatory regime and international openness are the other two parameters taken into cognizance while building the risk matrix
8Between 2016-2020, India moves two notches up, surpassing Indonesia and Vietnam, with a score of 5.59 points
8But it is way behind China, which will have a score of 7 in 2021.
8If India wants to improve its competitiveness, the petroleum minister Dharmendra Pradhan will have to do much more work.
Click on Reports for more Details
RFQs are likely to be floated soon for a business development opportunity for a DHDT revamp that will increase the processing capacity of the concerned refinery from 1.80 MMTPA to 2.4 MMTPA.
8The revamp will also ensure 100% throughput compatibility to BS-VI diesel production.
8Along with the revamp of the DHDT, a new FCC GDS unit is proposed, with a capacity of 0.6 MMTPA, again to ensure 100% BS-IV gasoline fuel compatibility.
8To treat the acid gas generated from these units, a new SRU block is proposed with a capacity of 200 TPD.
8After the revamp, the DHDT unit will be able to produce hydro treated diesel and the FCC GDS will produce hydro treated gasoline, both with less than 10 ppm sulphur.
8The project cost for the proposed revamp of the DHDT and new SRU block is Rs. 456 crore and for new FCC GDS is Rs. 497 crore.
Click on Reports for more Details
8The revamp will also ensure 100% throughput compatibility to BS-VI diesel production.
8Along with the revamp of the DHDT, a new FCC GDS unit is proposed, with a capacity of 0.6 MMTPA, again to ensure 100% BS-IV gasoline fuel compatibility.
8To treat the acid gas generated from these units, a new SRU block is proposed with a capacity of 200 TPD.
8After the revamp, the DHDT unit will be able to produce hydro treated diesel and the FCC GDS will produce hydro treated gasoline, both with less than 10 ppm sulphur.
8The project cost for the proposed revamp of the DHDT and new SRU block is Rs. 456 crore and for new FCC GDS is Rs. 497 crore.
Click on Reports for more Details
For reference purposes, the website carries here the following details on Indian Oil Corporation:
8Composition of the Board of Directors in terms of designation, date of appointment, tenure, number of directorships in other listed entities and number of memberships in audit committees
8Details are carried up to the level of the executive director
8The names of independent directors are also given
8The composition of audit committees are spelt out
8IOC has 12 directors on the board, of which only three are independent directors.
8The company has not been able to fulfill the requirement of having at least 50% of the directors as independent directors.
Click on Reports for more Details
8Composition of the Board of Directors in terms of designation, date of appointment, tenure, number of directorships in other listed entities and number of memberships in audit committees
8Details are carried up to the level of the executive director
8The names of independent directors are also given
8The composition of audit committees are spelt out
8IOC has 12 directors on the board, of which only three are independent directors.
8The company has not been able to fulfill the requirement of having at least 50% of the directors as independent directors.
Click on Reports for more Details
China seems to have stolen a march on the deployment of electric vehicles.
8One-fifth of the global fleet of two-wheelers is already electrified but in China, this share is two-fifths of the stock.
8Anti-pollution policies banning the use of conventional motorcycles in cities have spurred sales.
8China is also the global leader in electric buses, with more than 170 000 on the road.
8Electric cars still have just a 0.1% market share worldwide. But they make up more than 1% of the fleet in seven countries, including China, where registrations tripled last year.
Click on Reports for more Details
8One-fifth of the global fleet of two-wheelers is already electrified but in China, this share is two-fifths of the stock.
8Anti-pollution policies banning the use of conventional motorcycles in cities have spurred sales.
8China is also the global leader in electric buses, with more than 170 000 on the road.
8Electric cars still have just a 0.1% market share worldwide. But they make up more than 1% of the fleet in seven countries, including China, where registrations tripled last year.
Click on Reports for more Details
The evolution of the electric car is a big business threat for oil marketing companies with large retail footprints.
8If battery powered cars take off, sale of liquid fuels from retail outlets is likely to dip. There is talk now of a critical point in time, when all liquid fuel cars will convert to battery driven cars.
In this context, the website carries here a detailed report on:
8A sharp increase in sale of electric cars in US and China, the two main markets for such cars
8Detailed analysis of how sale of electric cars has gone up since 2010 till now
8There are an estimated 1.45 million electric car charging points worldwide in 2015. Publicly accessible charging facilities have been following the growth trend of the electric car stock in the past year.
8Since 2008, battery costs were cut by a factor of four and battery energy density had seen a fivefold increase. Details are carried here of how technological advances will cut battery costs further until the year 2025.
8Estimates made by various agencies on deployment of electric cars by the year 2050.
This is one set of data that Indian oil marketing companies should keep a close watch on.
8Policy support given by various governments for sale of electric cars.
Click on Reports for more Details
8If battery powered cars take off, sale of liquid fuels from retail outlets is likely to dip. There is talk now of a critical point in time, when all liquid fuel cars will convert to battery driven cars.
In this context, the website carries here a detailed report on:
8A sharp increase in sale of electric cars in US and China, the two main markets for such cars
8Detailed analysis of how sale of electric cars has gone up since 2010 till now
8There are an estimated 1.45 million electric car charging points worldwide in 2015. Publicly accessible charging facilities have been following the growth trend of the electric car stock in the past year.
8Since 2008, battery costs were cut by a factor of four and battery energy density had seen a fivefold increase. Details are carried here of how technological advances will cut battery costs further until the year 2025.
8Estimates made by various agencies on deployment of electric cars by the year 2050.
This is one set of data that Indian oil marketing companies should keep a close watch on.
8Policy support given by various governments for sale of electric cars.
Click on Reports for more Details
The government has adopted a slew of measures to improve bio-diesel procurement by oil marketing companies.
8A total of 1.32 crore litres have been procured OMCs as on July 1, 2016.
8A total of 4 crore litres have been contracted for delivery between April-September, 2016 but, as usual, actual procurement will fall far short of the contracted amount.
8Click on Reports for steps being taken by the government to promote the production as well as the use of bio-diesel and ethanol in India
8Meanwhile, the DFR for a 49 TMT bio-ethanol project by Numaligarh Refinery has been completed.
Click on Reports for more. Details
8A total of 1.32 crore litres have been procured OMCs as on July 1, 2016.
8A total of 4 crore litres have been contracted for delivery between April-September, 2016 but, as usual, actual procurement will fall far short of the contracted amount.
8Click on Reports for steps being taken by the government to promote the production as well as the use of bio-diesel and ethanol in India
8Meanwhile, the DFR for a 49 TMT bio-ethanol project by Numaligarh Refinery has been completed.
Click on Reports for more. Details
The CSR budgets for public sector refineries have swollen as a consequence of higher profits in 2016-17.
8But lower profit margins have trimmed the budgets of E&P companies such as ONGC
8GAIL too has allocated lower budgets in 2016-17.
Click on Reports to know the year-wise CSR budgets of public sector petroleum companies. Details
8But lower profit margins have trimmed the budgets of E&P companies such as ONGC
8GAIL too has allocated lower budgets in 2016-17.
Click on Reports to know the year-wise CSR budgets of public sector petroleum companies. Details
Intense competition has ensured near zero network tariffs for most of the 45 authorizations for city gas distribution given out by the PNGRB.
The data is given in terms of the following parameters:
8Name of the CGD network
8Authorized entity
8Name of networks which have near zero network tariff.
Click on Reports for more Details
The data is given in terms of the following parameters:
8Name of the CGD network
8Authorized entity
8Name of networks which have near zero network tariff.
Click on Reports for more Details
Aug 02 : Inadequate port infrastructure doubles demurrage costs: Details of decongestion steps taken
Lack of adequate port infrastructure has caused a sharp increase in demurrage cost for import of crude and petroleum products by Indian refineries.
8The cost has doubled in 2015-16 over 2014-15.
8The website carries here company wise demurrage cost incurred in the years 2013-14, 2014-15 and 2015-16 and first quarter 2016-17
8Steps being taken to de-congest the ports by building new jetties, additional tankages and SPMs are carried here
Click on Reports for more Details
8The cost has doubled in 2015-16 over 2014-15.
8The website carries here company wise demurrage cost incurred in the years 2013-14, 2014-15 and 2015-16 and first quarter 2016-17
8Steps being taken to de-congest the ports by building new jetties, additional tankages and SPMs are carried here
Click on Reports for more Details
The website carries here a list of steps taken by ONGC to cut the cost of production of crude oil and gas.
8The attempt is to reduce operating cost, maximize utilization of resources, reduce equipment and technological obsolescence.
8The other steps include implementation of advance technologies like multi stage hydro-fracturing, expandable casing, casing with drilling, swell packer, high performance mud system, stimulation techniques etc.
8There is also a movement towards improved procurement practices, including enhanced collaboration with technology providers.
8Tieups are being worked out too for technology absorption.
8There is also a new push towards outsourcing of capital intensive services like coiled tubing operation and nitrogen pumping units.
Click on Reports for more Details
8The attempt is to reduce operating cost, maximize utilization of resources, reduce equipment and technological obsolescence.
8The other steps include implementation of advance technologies like multi stage hydro-fracturing, expandable casing, casing with drilling, swell packer, high performance mud system, stimulation techniques etc.
8There is also a movement towards improved procurement practices, including enhanced collaboration with technology providers.
8Tieups are being worked out too for technology absorption.
8There is also a new push towards outsourcing of capital intensive services like coiled tubing operation and nitrogen pumping units.
Click on Reports for more Details
India may be hydrocarbon poor by global standards, but its cost of production of crude (in $/bbl) remains lower than some of the big global majors such as BP, Chevron and Conoco Philips.
The website carries here the latest cost of production of crude of the following companies:
8ONGC
8OIL
8Ravva
8Panna & Mukta
8CB OS 2
8RJ-ON-90/1
8The cost of production ranged between $16.85 for the Panna-Mukta field to $19.07 for the RJ-ON-90/1 field
8The cost data does not include government levies.
Comment: Climate change adherents have made out a case for killing all exploration projects on the argument that the world already has more than enough oil and gas reserves to burn if the temperature increase is to be limited to less than 2 degrees by the end of the century. In fact countries such as Saudi Arabia and Russia will be left with vast quantities of unburnable oil and gas reserves. In this context, is any exploration work justified in India? The answer is "yes" but only if the cost of production is compatible under a "lower for longer" oil and gas price regime.
Click on Reports for more Details
The website carries here the latest cost of production of crude of the following companies:
8ONGC
8OIL
8Ravva
8Panna & Mukta
8CB OS 2
8RJ-ON-90/1
8The cost of production ranged between $16.85 for the Panna-Mukta field to $19.07 for the RJ-ON-90/1 field
8The cost data does not include government levies.
Comment: Climate change adherents have made out a case for killing all exploration projects on the argument that the world already has more than enough oil and gas reserves to burn if the temperature increase is to be limited to less than 2 degrees by the end of the century. In fact countries such as Saudi Arabia and Russia will be left with vast quantities of unburnable oil and gas reserves. In this context, is any exploration work justified in India? The answer is "yes" but only if the cost of production is compatible under a "lower for longer" oil and gas price regime.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Hiring of services for providing and execution of job of Liquid Nitrogen & Gaseous Nitrogen during shutdown, Uran plant [ONGC] Details
8Carrying out Coating refurbishment of pipelines, Gauridad [IOC] Details
8Health assessment of pipelines by Short Range Ultrasonic Guided Wave Testing, Haldia Refinery [IOC] Details
8Global EOI for Installation of Reject Water Pipeline System for Rajasthan Block [CAIRN] Details
8Supply and commissioning of LPG Vapour Compressors, Trichy [IOC] Details
8Overhauling of Recycle Gas Compressor at LOB area, Haldia Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Pradhan launches Pradhan Mantri Ujjwala Yojana in Motihari Details
8Paradox nation: Norway, a climate leader making money on oil Details
8Iraq's oil exports from south rose to 3.2 million bpd in July - oil officials Details
8Militants bomb Shell oil pipeline in Nigeria: locals resent escalating troubleDetails
8Is Saudi Arabia back in the oil market share game?: Russell Details
8Thrissur to generate fuel from plastic Details
8Oil dips as global supplies rise, fresh concerns over Asian economies Details
8Saudi Arabia oil demand growth at 6-year low Details
8Bangladesh gets lower than term deals in fuel oil tender Details
8Infra sector grows fastest in 2 months, steel, oil decline Details
8Core group to review proposals for strategic disinvestment in PSUs Details
8Subsidised LPG price hiked by Rs. 1.93 per cylinder Details
You can also click on Newsclips for more Details
8Hiring of services for providing and execution of job of Liquid Nitrogen & Gaseous Nitrogen during shutdown, Uran plant [ONGC] Details
8Carrying out Coating refurbishment of pipelines, Gauridad [IOC] Details
8Health assessment of pipelines by Short Range Ultrasonic Guided Wave Testing, Haldia Refinery [IOC] Details
8Global EOI for Installation of Reject Water Pipeline System for Rajasthan Block [CAIRN] Details
8Supply and commissioning of LPG Vapour Compressors, Trichy [IOC] Details
8Overhauling of Recycle Gas Compressor at LOB area, Haldia Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Pradhan launches Pradhan Mantri Ujjwala Yojana in Motihari Details
8Paradox nation: Norway, a climate leader making money on oil Details
8Iraq's oil exports from south rose to 3.2 million bpd in July - oil officials Details
8Militants bomb Shell oil pipeline in Nigeria: locals resent escalating troubleDetails
8Is Saudi Arabia back in the oil market share game?: Russell Details
8Thrissur to generate fuel from plastic Details
8Oil dips as global supplies rise, fresh concerns over Asian economies Details
8Saudi Arabia oil demand growth at 6-year low Details
8Bangladesh gets lower than term deals in fuel oil tender Details
8Infra sector grows fastest in 2 months, steel, oil decline Details
8Core group to review proposals for strategic disinvestment in PSUs Details
8Subsidised LPG price hiked by Rs. 1.93 per cylinder Details
You can also click on Newsclips for more Details
The website is in agreement with an analysis carried in our reports section that a new price discovery system will gather momentum, such that prices will be bound by both short term and long term marginal cost but trending towards cash cost of production in the shorter term because of the over supply situation.
8The cash cost of production is a significantly lower price than the oil indexed price.
8Led by flexible LNG supplies, there is likely to be a migration towards pricing terms which are based on gas-on-gas competition, and there will be a resultant decline of oil indexation pricing.
8As this process gets underway, hubs will emerge, which will have to be supported with exchange traded contracts.
8While earlier there was skepticism that hubs will take a long time to come up in Asia, an interplay of several factors is expediting their creation.
Click on Reports for more Details
8The cash cost of production is a significantly lower price than the oil indexed price.
8Led by flexible LNG supplies, there is likely to be a migration towards pricing terms which are based on gas-on-gas competition, and there will be a resultant decline of oil indexation pricing.
8As this process gets underway, hubs will emerge, which will have to be supported with exchange traded contracts.
8While earlier there was skepticism that hubs will take a long time to come up in Asia, an interplay of several factors is expediting their creation.
Click on Reports for more Details
The website argues here that the future is not bright for the oil-indexed pricing model.
8The simple reason for this is the over supply in the LNG market and the possibility of spot prices going well below oil-indexed pricing.
8The over supply will mean that wholesale LNG prices will be nearer to the short run marginal cost.
8For supplies to Asia, this could be anywhere between $2-$4/mmbtu, depending upon the project concerned.
8If the differential between the oil-indexed RasGas price and spot prices widen, there will be a clamor again for reduction of price.
8There is already a big enough differential between RasGas and spot prices but offtakers, such as GAIL and GSPC, are able to hammer through the higher RasGas price to consumers.
8But this website projects another round of renegotiation between PLL and RasGas, if not this year then in 2017 or 2018, when the over supply situation is likely to worsen.
Click on Reports for more Details
8The simple reason for this is the over supply in the LNG market and the possibility of spot prices going well below oil-indexed pricing.
8The over supply will mean that wholesale LNG prices will be nearer to the short run marginal cost.
8For supplies to Asia, this could be anywhere between $2-$4/mmbtu, depending upon the project concerned.
8If the differential between the oil-indexed RasGas price and spot prices widen, there will be a clamor again for reduction of price.
8There is already a big enough differential between RasGas and spot prices but offtakers, such as GAIL and GSPC, are able to hammer through the higher RasGas price to consumers.
8But this website projects another round of renegotiation between PLL and RasGas, if not this year then in 2017 or 2018, when the over supply situation is likely to worsen.
Click on Reports for more Details
As oil prices move up, oil indexed LNG prices, such as the price of LNG supplied by RasGas to Petronet LNG Ltd, will continue to escalate.
8Ras Gas prices are already hovering nearer to the $7/mmbtu mark with oil prices going up.
8There are projections now that oil indexed LNG prices in Asia can scale the $9-$10/mmbtu mark by the end of 2016.
8These kind of prices equal the long run marginal cost of a lot of new LNG projects, making them profitable in the process.
8More so as new LNG projects are trying to cut down costs.
8But LNG prices are unlikely to go that high, according to this website.
Click on Reports to know why. Details
8Ras Gas prices are already hovering nearer to the $7/mmbtu mark with oil prices going up.
8There are projections now that oil indexed LNG prices in Asia can scale the $9-$10/mmbtu mark by the end of 2016.
8These kind of prices equal the long run marginal cost of a lot of new LNG projects, making them profitable in the process.
8More so as new LNG projects are trying to cut down costs.
8But LNG prices are unlikely to go that high, according to this website.
Click on Reports to know why. Details
For reference purposes, the website carries here details of US LNG exports by destination countries.
So far, LNG has been exported from the Sabine Pass terminal to the following countries
8Argentina
8Brazil
8Chile
8UAE
8Kuwait
8India
8Portugal
Indian shipments will not pass through the expanded Panna Canal but US cargoes to South Korea, Japan and Indonesia will use the canal, making US LNG cheaper as a result in comparison to its competitors.
Click on Reports for more Details
So far, LNG has been exported from the Sabine Pass terminal to the following countries
8Argentina
8Brazil
8Chile
8UAE
8Kuwait
8India
8Portugal
Indian shipments will not pass through the expanded Panna Canal but US cargoes to South Korea, Japan and Indonesia will use the canal, making US LNG cheaper as a result in comparison to its competitors.
Click on Reports for more Details
The PNGRB has come out with a series of clarifications on the 7th round of CGD bidding.
8The regulator has rejected the plea against the clause that if there is a tie in the composite score between two competing bids, the one with the higher bid bond will get the contract.
8A plea for bid bond validity for 90 days instead of 120 days was also rejected.
8The regulator has also through the clarification specified the designated pipelines for networks coming up in Jaipur, Udiapur and Bhopal.
8Clarifications were also issued on exclusivity periods for the new city gas distribution entities
Click on Reports for more. Details
8The regulator has rejected the plea against the clause that if there is a tie in the composite score between two competing bids, the one with the higher bid bond will get the contract.
8A plea for bid bond validity for 90 days instead of 120 days was also rejected.
8The regulator has also through the clarification specified the designated pipelines for networks coming up in Jaipur, Udiapur and Bhopal.
8Clarifications were also issued on exclusivity periods for the new city gas distribution entities
Click on Reports for more. Details
The PNGRB has fixed the final tariff for the 886 km Dadri-Bawana-Nangal gas pipeline for the period 2016-17 to 2034-35 at an average rate of Rs 14.04/mmbtu on GCV basis.
8The tariff fixed for 2009-10 to 2015-16 is Rs 11.85/mmbtu.
8The interim tariff rate too was fixed at an average of Rs 11.85/mmbtu
8The tariff rate is divided into two zones, as the entire pipeline is split up into 336 kms of trunk lines and 550 km of spur lines.
8GAIL's asking rate as usual was high, at Rs 62.30/mmbtu for the period 2015-16 to 2034-35.
8Even so, the gas major got away with an 18% hike that the main consumer, National Fertilizer Corporation, will have to shell out from now onwards.
Click on Reports for more Details
8The tariff fixed for 2009-10 to 2015-16 is Rs 11.85/mmbtu.
8The interim tariff rate too was fixed at an average of Rs 11.85/mmbtu
8The tariff rate is divided into two zones, as the entire pipeline is split up into 336 kms of trunk lines and 550 km of spur lines.
8GAIL's asking rate as usual was high, at Rs 62.30/mmbtu for the period 2015-16 to 2034-35.
8Even so, the gas major got away with an 18% hike that the main consumer, National Fertilizer Corporation, will have to shell out from now onwards.
Click on Reports for more Details
The PNGRB has fixed the final tariff for the 455 km Chainsa-Jhajjar-Hissar gas pipeline at Rs 7.85/mmbtu on a GCV basis from 2016-17 onwards.
8The pipeline has a ferrying capacity of 35 mmscmd of which 8.75 mmscmd is on a common carrier basis.
8The final tariff for 2008-09 to 2015-16 was fixed at Rs 4.16/mmbtu.
8GAIL's asking rate was a massive Rs 53.23/mmbtu. This is 7.5 times more than the rate that was actually fixed by the PNGRB.
8The PNGRB has earlier fixed an interim tariff rate of Rs 4.16/mmbtu for the pipeline.
8A detailed order by the regulatorr shows how GAIL was trying to gold plate the tariff rate.
8PNGRB provides a point by point analysis of how GAIL had over stated the tariff rate by taking into account unattributable pipeline expenses.
8GAIL's strategy seems to be to aim for the skies to land on the treetops.
8Its strategy is to seek an unjustifiably high tariff rate, so that it is able to extract a reasonable enough concession from the regulator.
8The final tariff rate is higher than the interim rate by a whopping 90%.
8That is good enough for GAIL
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8The pipeline has a ferrying capacity of 35 mmscmd of which 8.75 mmscmd is on a common carrier basis.
8The final tariff for 2008-09 to 2015-16 was fixed at Rs 4.16/mmbtu.
8GAIL's asking rate was a massive Rs 53.23/mmbtu. This is 7.5 times more than the rate that was actually fixed by the PNGRB.
8The PNGRB has earlier fixed an interim tariff rate of Rs 4.16/mmbtu for the pipeline.
8A detailed order by the regulatorr shows how GAIL was trying to gold plate the tariff rate.
8PNGRB provides a point by point analysis of how GAIL had over stated the tariff rate by taking into account unattributable pipeline expenses.
8GAIL's strategy seems to be to aim for the skies to land on the treetops.
8Its strategy is to seek an unjustifiably high tariff rate, so that it is able to extract a reasonable enough concession from the regulator.
8The final tariff rate is higher than the interim rate by a whopping 90%.
8That is good enough for GAIL
Click on Reports for more Details
GAIL has stopped looking at India or the Asian market but is focusing on Europe to sell its quota of LNG from US terminals.
8Competition has also intensified everywhere and trading opportunities are getting more and more limited in Asia
8Australia has become big player in the Pacific. Qatar—the world’s largest LNG exporter—and potentially Iran will compete for markets in Southeast Asia and India.
8This has led some analysts to believe that natural gas exporters are about to engage in a price war that will lead to a drastic reduction in margins.
8This situation is prompting GAIL to look beyond Asian markets.
8In this context, Europe is seen as a viable alternative given its market size, interest in diversification and relatively well-distributed system of import terminals.
8In 2014, natural gas provided 21% of the EU-28’s total energy needs. About 66% of inland consumption had to be imported, with eight European countries importing 100% of their consumption.
8Likewise, there were 23 import terminals on the continent with the capacity to process a large volume of LNG. These terminals operate at very low capacity (25% in 2014), suggesting that there is room to absorb U.S. LNG.
8As Asian prices go down and converge with European ones, Europe will become more attractive, aided by additional factors like the de-carbonization of electricity and geostrategic considerations.
8This may be the beginning of a new reality for Europe’s energy market, which not so long ago, was perceived as a destination of last resort given the region’s slow growth, mature economy and strong dependency on the Gazprom supply of natural gas.
Click on Reports for more. Details
8Competition has also intensified everywhere and trading opportunities are getting more and more limited in Asia
8Australia has become big player in the Pacific. Qatar—the world’s largest LNG exporter—and potentially Iran will compete for markets in Southeast Asia and India.
8This has led some analysts to believe that natural gas exporters are about to engage in a price war that will lead to a drastic reduction in margins.
8This situation is prompting GAIL to look beyond Asian markets.
8In this context, Europe is seen as a viable alternative given its market size, interest in diversification and relatively well-distributed system of import terminals.
8In 2014, natural gas provided 21% of the EU-28’s total energy needs. About 66% of inland consumption had to be imported, with eight European countries importing 100% of their consumption.
8Likewise, there were 23 import terminals on the continent with the capacity to process a large volume of LNG. These terminals operate at very low capacity (25% in 2014), suggesting that there is room to absorb U.S. LNG.
8As Asian prices go down and converge with European ones, Europe will become more attractive, aided by additional factors like the de-carbonization of electricity and geostrategic considerations.
8This may be the beginning of a new reality for Europe’s energy market, which not so long ago, was perceived as a destination of last resort given the region’s slow growth, mature economy and strong dependency on the Gazprom supply of natural gas.
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There is a "buy" rating out on the MRPL's stock.
8The commissioning of new 440 KTPA polypropylene unit last quarter has completed MRPL's Phase III expansion.
8A merger with OMPL is seen as a big positive for the refiner.
8The stock is currently trading at 8.5x to its FY18E earnings which is at discount as compared to other OMCs.
8With the expected increase in operating leverage, inventory gains and GRM improvement, future earnings are not fully factored in yet on the stock price, according to one analysis.
8The "buy" rating on the stock projects a PE of 10.5x to its FY18 earnings to arrive at a target price of Rs 100 per share, which is a 23% upside.
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8The commissioning of new 440 KTPA polypropylene unit last quarter has completed MRPL's Phase III expansion.
8A merger with OMPL is seen as a big positive for the refiner.
8The stock is currently trading at 8.5x to its FY18E earnings which is at discount as compared to other OMCs.
8With the expected increase in operating leverage, inventory gains and GRM improvement, future earnings are not fully factored in yet on the stock price, according to one analysis.
8The "buy" rating on the stock projects a PE of 10.5x to its FY18 earnings to arrive at a target price of Rs 100 per share, which is a 23% upside.
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China's gas demand grew at 5% in recent times, slowing down significantly from a 25% growth recorded in the earlier years.
8But the China still offers the biggest opportunity in the world for growth of gas demand.
8Annually in China, 700 million tones of of loose coal are consumed, which is equivalent to 400 billion cubic meters of gas. There is a substitution possibility here.
8Each percentage point increase of urbanization rate equaled to 10 bcm increase of natural gas consumption.
8If China’s tertiary industry increases by 10%, natural gas consumption would increase by another 160 billion cubic meters.
8China cannot reach its green house emission targets without the support of natural gas.
8But will this result in a higher demand for LNG?
8Perhaps not, as China already has 200 years of gas reserves at current rates of consumption.
8It also has direct access to vast reserves of gas in Central Asia and Russia.
Click on Reports to know more on what is going on with gas demand and supply in China. Details
8But the China still offers the biggest opportunity in the world for growth of gas demand.
8Annually in China, 700 million tones of of loose coal are consumed, which is equivalent to 400 billion cubic meters of gas. There is a substitution possibility here.
8Each percentage point increase of urbanization rate equaled to 10 bcm increase of natural gas consumption.
8If China’s tertiary industry increases by 10%, natural gas consumption would increase by another 160 billion cubic meters.
8China cannot reach its green house emission targets without the support of natural gas.
8But will this result in a higher demand for LNG?
8Perhaps not, as China already has 200 years of gas reserves at current rates of consumption.
8It also has direct access to vast reserves of gas in Central Asia and Russia.
Click on Reports to know more on what is going on with gas demand and supply in China. Details
Beijing's consumption of natural gas is a massive 40 mmscmd per day in comparison to Delhi's miserable 3 mmscmd.
8The use of gas is one of the primary reasons why the city's pollution levels have come down. Its concentrations of key pollutants, such as sulfur dioxide, nitrogen dioxide and inhalable particulate matter decreased by 78%, 24% and 43% respectively when measured over a 15-year time span.
8Natural gas accounts for 22% of the primary energy mix in Beijing and it will be 32% by 2020.
8The city has developed a multi-source and multi-channel gas supply system.
8Besides, a diversified supply pattern integrating imported and domestic gas, offshore and on shore gas, conventional and unconventional gas has been established.
8A circular gas distribution network, somewhat like the ring road system in Delhi, with six pressure grades has been established to cover all areas of Beijing in concentric circles.
8Even as laws protect a single monopoly distributor in Delhi, the Chinese have allowed multiple players to come in.
8The Chinese have clear cut and supportive policies and they allow city gas enterprises a market oriented operating system and a level playing field.
8The website carries here a report on the Chinese gas distribution and gas demand situation that policy planners in New Delhi must read.
Click on Reports for more Details
8The use of gas is one of the primary reasons why the city's pollution levels have come down. Its concentrations of key pollutants, such as sulfur dioxide, nitrogen dioxide and inhalable particulate matter decreased by 78%, 24% and 43% respectively when measured over a 15-year time span.
8Natural gas accounts for 22% of the primary energy mix in Beijing and it will be 32% by 2020.
8The city has developed a multi-source and multi-channel gas supply system.
8Besides, a diversified supply pattern integrating imported and domestic gas, offshore and on shore gas, conventional and unconventional gas has been established.
8A circular gas distribution network, somewhat like the ring road system in Delhi, with six pressure grades has been established to cover all areas of Beijing in concentric circles.
8Even as laws protect a single monopoly distributor in Delhi, the Chinese have allowed multiple players to come in.
8The Chinese have clear cut and supportive policies and they allow city gas enterprises a market oriented operating system and a level playing field.
8The website carries here a report on the Chinese gas distribution and gas demand situation that policy planners in New Delhi must read.
Click on Reports for more Details
Oil indexed, rich RLNG supplied by RasGas under long term contract with PLL continued to move upwards even as crude prices fell.
8The three month averaging price formula was still working to push the price up.
8The latest recorded RasGas RLNG shipment was priced at $6.72/mmbtu.
8In contrast, a spot RLNG contract from Nigeria landed at the same PLL terminal a couple of days earlier at $5.27/mmbtu.
8A week ago, a RasGas spot cargo came in at just $4.71/mmbtu in Dahej but this was a cargo booked three months earlier for delivery now.
Click on our sister website www.indianpetrochem.com (look for feedstock prices under petrochemical prices) for detailed charts and graphs on LNG price movements in India. Details
8The three month averaging price formula was still working to push the price up.
8The latest recorded RasGas RLNG shipment was priced at $6.72/mmbtu.
8In contrast, a spot RLNG contract from Nigeria landed at the same PLL terminal a couple of days earlier at $5.27/mmbtu.
8A week ago, a RasGas spot cargo came in at just $4.71/mmbtu in Dahej but this was a cargo booked three months earlier for delivery now.
Click on our sister website www.indianpetrochem.com (look for feedstock prices under petrochemical prices) for detailed charts and graphs on LNG price movements in India. Details
For reference purposes the website carries here the following tenders:
8Carrying out Pipeline Diversion Works, Bongaigaon Refinery [IOC] Details
8Calibration of Gas Detectors installed at various Units of Paradip Refinery [IOC] Details
8Shutdown maintenance jobs of Vacuum Distillation Unit, Haldia Refinery [IOC] Details
8Maintenance of LPG Equipments & Miscellaneous works at LPG Bottling Plant, Assam [IOC] Details
8Supply of High Low Safety Valves, Assam [ONGC] Details
8Extension of Casing Pipes under HMRBPL, Mourigram [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Goldman says oil's rebalancing remains fragile amid macro headwinds Details
8Oil prices sink further as glut worries return Details
8Canadian oil sands producers mull new investments Details
8Australia Pacific LNG boosts Origin Energy's output, but price drops Details
8India's IOC to cut diesel prices by 3.7 pct from Monday Details
8Reliance plans to expand its fuel retail network Details
8Govt fast-tracks PM Ujjawala Yojana rollout in poll-bound UP Details
8Cheaper oil sends Exxon, Chevron to worst quarter in years Details
8HURL invites tenders for Sindri factory revival Details
8Gulf may be dampened by oil, aftermath of earnings Details
8Petrol cut by Rs 1.42 a litre, diesel by Rs 2.01 Details
8Govt open to deliberating on merger of oil firms: Pradhan Details
8Post Qatar success, India tries to rework Australia LNG maths Details
823 lakh LPG connections given to women under poverty line through Pradhan Mantri Ujjwala Yojana Details
8Kerala proposes use of LNG instead of naphtha in FACT plant Details
8TAPI natural gas pipeline project Details
8How India brought reforms to petroleum sector, slowly and stealthily Details
You can also click on Newsclips for more Details
8Carrying out Pipeline Diversion Works, Bongaigaon Refinery [IOC] Details
8Calibration of Gas Detectors installed at various Units of Paradip Refinery [IOC] Details
8Shutdown maintenance jobs of Vacuum Distillation Unit, Haldia Refinery [IOC] Details
8Maintenance of LPG Equipments & Miscellaneous works at LPG Bottling Plant, Assam [IOC] Details
8Supply of High Low Safety Valves, Assam [ONGC] Details
8Extension of Casing Pipes under HMRBPL, Mourigram [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Goldman says oil's rebalancing remains fragile amid macro headwinds Details
8Oil prices sink further as glut worries return Details
8Canadian oil sands producers mull new investments Details
8Australia Pacific LNG boosts Origin Energy's output, but price drops Details
8India's IOC to cut diesel prices by 3.7 pct from Monday Details
8Reliance plans to expand its fuel retail network Details
8Govt fast-tracks PM Ujjawala Yojana rollout in poll-bound UP Details
8Cheaper oil sends Exxon, Chevron to worst quarter in years Details
8HURL invites tenders for Sindri factory revival Details
8Gulf may be dampened by oil, aftermath of earnings Details
8Petrol cut by Rs 1.42 a litre, diesel by Rs 2.01 Details
8Govt open to deliberating on merger of oil firms: Pradhan Details
8Post Qatar success, India tries to rework Australia LNG maths Details
823 lakh LPG connections given to women under poverty line through Pradhan Mantri Ujjwala Yojana Details
8Kerala proposes use of LNG instead of naphtha in FACT plant Details
8TAPI natural gas pipeline project Details
8How India brought reforms to petroleum sector, slowly and stealthily Details
You can also click on Newsclips for more Details
