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Sep 2015
Crack spreads declined across the barrel (except Gasoline) in Q1 FY 2015-16 as compared to Q4 FY 2014-15.
8Naphtha cracks declined in Q1 FY 2015-16 vis-à-vis Q4 FY 2014-15 owing to weaker demand from the petrochemicals sector.
8However gasoline crack spreads increased in Q1 FY 2015-16 to multi year highs owing to healthy demand from India and China, pre-Ramadan stock building requirements from the Middle East and South East Asian countries and strong driving season demand even as supplies were limited due to refinery maintenance shutdonws.
8In the middle of the barrel, Jet/Kero crack declined due to incremental supplies from new refineries amid weak summer demand from Europe. Gasoil cracks also declined in Q1 FY 2015-16 vis-à-vis Q4 FY 2014-15 on account of additional supplies from new refineries even as exports from China remained high due to a slowdown in domestic demand.
8At the bottom of the barrel, fuel oil cracks declined on a qoq basis owing to ample supplies which outweighed the effect of robust demand to push the cracks down.
8GRMs of refining companies were buoyed by healthy crack spreads and large inventory gains in Q1 FY16 as the international prices of crude oil increased by about 14% during this period from ~$ 56/barrel levels on March 31, 2015 to ~$ 64/barrel on June 30, 2015.
8The international crude oil prices have since declined and are below US$ 50/barrel in the last week of August 2015.
8 If the crude oil prices persist at these levels the refining companies are likely to record huge inventory losses which would depress GRMs in Q2 FY16.
Click on the Reports for more. Details
8Naphtha cracks declined in Q1 FY 2015-16 vis-à-vis Q4 FY 2014-15 owing to weaker demand from the petrochemicals sector.
8However gasoline crack spreads increased in Q1 FY 2015-16 to multi year highs owing to healthy demand from India and China, pre-Ramadan stock building requirements from the Middle East and South East Asian countries and strong driving season demand even as supplies were limited due to refinery maintenance shutdonws.
8In the middle of the barrel, Jet/Kero crack declined due to incremental supplies from new refineries amid weak summer demand from Europe. Gasoil cracks also declined in Q1 FY 2015-16 vis-à-vis Q4 FY 2014-15 on account of additional supplies from new refineries even as exports from China remained high due to a slowdown in domestic demand.
8At the bottom of the barrel, fuel oil cracks declined on a qoq basis owing to ample supplies which outweighed the effect of robust demand to push the cracks down.
8GRMs of refining companies were buoyed by healthy crack spreads and large inventory gains in Q1 FY16 as the international prices of crude oil increased by about 14% during this period from ~$ 56/barrel levels on March 31, 2015 to ~$ 64/barrel on June 30, 2015.
8The international crude oil prices have since declined and are below US$ 50/barrel in the last week of August 2015.
8 If the crude oil prices persist at these levels the refining companies are likely to record huge inventory losses which would depress GRMs in Q2 FY16.
Click on the Reports for more. Details
Our sister publication, www.indianfertilizer.com has been a provider of information in the fertilizer sector for over 15 years. Today we have all players -- from urea manufacturers to policy makers to suppliers of raw materials and equipment and services -- as our subscribers.
8There are as many as 10,000 people who receive our free daily e-mailers.
8Over the years, we have developed long standing relationships that we leverage to collect information for our website.
8Now that the fertilizer industry is witnessing traction after a long time following the announcement of the new policies, the website has launched a special project monitoring service with analyst support.
8We have begun closely monitoring all fertilizer sector projects -- from urea to SSP to DAP to phosphoric acid and NPK plants -- in a manner that can provide great value to suppliers of equipment and services. We expect up to Rs 30,000 crore of new fertilizer investment spread over the next three to four years. So there is ample business opportunity here for equipment and service providers.
8We also track maintenance projects along with likely maintenance contracts because there are business development opportunities there as well.
8We will provide you specific information on business opportunities over and above allowing you access to the vast repertoire of data, news and analysis in our website.
8If you are a subscriber, you can now directly call our analyst for project specific information. We will be able to provide you actionable information on future RFQ dates for the services that you are interested in, such as a valves or compressor or heaters, along with names and telephone numbers of relevant contacts of the owner, project management consultant and the EPC contractor involved. So for a particular package of equipment and service that you are interested in, we will tell you when the RFQ is likely to come and from where. We will also identify the right contact person for you to talk to before the RFQ is out.
8So all you have to do is pick up the phone and call the contact numbers we give you (along with attendant details) to take your deal forward. We have simplified the art of doing business for you!
8All of this comes at a very reasonable cost and it will save you both time and energy needed to conduct research and look for contacts.
8For more information, please fill up the subscription form or call our sales manager. Details
8There are as many as 10,000 people who receive our free daily e-mailers.
8Over the years, we have developed long standing relationships that we leverage to collect information for our website.
8Now that the fertilizer industry is witnessing traction after a long time following the announcement of the new policies, the website has launched a special project monitoring service with analyst support.
8We have begun closely monitoring all fertilizer sector projects -- from urea to SSP to DAP to phosphoric acid and NPK plants -- in a manner that can provide great value to suppliers of equipment and services. We expect up to Rs 30,000 crore of new fertilizer investment spread over the next three to four years. So there is ample business opportunity here for equipment and service providers.
8We also track maintenance projects along with likely maintenance contracts because there are business development opportunities there as well.
8We will provide you specific information on business opportunities over and above allowing you access to the vast repertoire of data, news and analysis in our website.
8If you are a subscriber, you can now directly call our analyst for project specific information. We will be able to provide you actionable information on future RFQ dates for the services that you are interested in, such as a valves or compressor or heaters, along with names and telephone numbers of relevant contacts of the owner, project management consultant and the EPC contractor involved. So for a particular package of equipment and service that you are interested in, we will tell you when the RFQ is likely to come and from where. We will also identify the right contact person for you to talk to before the RFQ is out.
8So all you have to do is pick up the phone and call the contact numbers we give you (along with attendant details) to take your deal forward. We have simplified the art of doing business for you!
8All of this comes at a very reasonable cost and it will save you both time and energy needed to conduct research and look for contacts.
8For more information, please fill up the subscription form or call our sales manager. Details
For reference purposes, the website carries here details of all petroleum product pipelines operating in India.
The details are given in terms of:
8Name of the pipeline
8Operating entity
8Year of operations
8Capacity
8Length of pipelines
Click on Reports for more Details
The details are given in terms of:
8Name of the pipeline
8Operating entity
8Year of operations
8Capacity
8Length of pipelines
Click on Reports for more Details
List of pipelines operated by GAIL transporting LPG:
-- Jamnagar-Loni (2.50 MMT)
-- Vizag-Secunderabad(0.74 MMT)
-- Guna LPG pipeline(23 to 25 MT/hr)
-- Gandhar LPG pipeline(136.5 MT/hr)
8In addition to that IOCL is also operating Panipat-Jalandhar pipeline with a capacity of 0.70 MMT.
Click on reports for more. Details
-- Jamnagar-Loni (2.50 MMT)
-- Vizag-Secunderabad(0.74 MMT)
-- Guna LPG pipeline(23 to 25 MT/hr)
-- Gandhar LPG pipeline(136.5 MT/hr)
8In addition to that IOCL is also operating Panipat-Jalandhar pipeline with a capacity of 0.70 MMT.
Click on reports for more. Details
The Rajasthan State Gas Limited (RSGL) and the government of Rajasthan have joined hands to develop a natural gas infrastructure in the state.
8RSGL is a Joint Venture Company of GAIL Gas Ltd. (wholly owned subsidiary of GAIL (India) Ltd.) and Rajasthan State Petroleum Corporation Limited. RSGL has been nominated as a nodal player by the Govt. of Rajasthan for providing clean energy solution to Industry, Domestic, Commercial and Automobile sectors.
8The investment over the next three years is pegged at Rs.2,700 crore.
8RSGL also envisages setting up of CNG highways and distribution of natural gas to the various industrial clusters in the state.
8RSGL will also set up an LNG hub at Udaipur for catering to the demand for clean fuel for existing and proposed industries. The L-CNG system will be set up for the first time in India.
8Moreover, the PNGRB has also given nod to GAIL for transfering the CGD rights of Kota in favour of RSGL.
8This will open many other business streams to RSGL including setting up of CNG highways from Kota to Jaipur, Kota to Baran, Kota to Bhilwara, Kota to Indore among others.
Click on the reports for more. Details
8RSGL is a Joint Venture Company of GAIL Gas Ltd. (wholly owned subsidiary of GAIL (India) Ltd.) and Rajasthan State Petroleum Corporation Limited. RSGL has been nominated as a nodal player by the Govt. of Rajasthan for providing clean energy solution to Industry, Domestic, Commercial and Automobile sectors.
8The investment over the next three years is pegged at Rs.2,700 crore.
8RSGL also envisages setting up of CNG highways and distribution of natural gas to the various industrial clusters in the state.
8RSGL will also set up an LNG hub at Udaipur for catering to the demand for clean fuel for existing and proposed industries. The L-CNG system will be set up for the first time in India.
8Moreover, the PNGRB has also given nod to GAIL for transfering the CGD rights of Kota in favour of RSGL.
8This will open many other business streams to RSGL including setting up of CNG highways from Kota to Jaipur, Kota to Baran, Kota to Bhilwara, Kota to Indore among others.
Click on the reports for more. Details
IOCL’s Paradip refinery is expected to produce about 1.3 million metric tons of pet coke.
8Ihe pet coke will be ferried from the south refinery to the north refinery by a combination of a pipe conveyor and a troughed conveyer.
8It will then be collected in silos located at the rapid loading system (RLS) in the north refinery from where the material will be transported by rail.
8The proposed conveyor system will be laid on the support structures and along the route it will cross the Santa Creek over the existing bridge.
8The pipe conveyor length will be around 87.35 m out of a total length of 4.5 km crossing of the Santa Creek.
Click on the reports for more. Details
8Ihe pet coke will be ferried from the south refinery to the north refinery by a combination of a pipe conveyor and a troughed conveyer.
8It will then be collected in silos located at the rapid loading system (RLS) in the north refinery from where the material will be transported by rail.
8The proposed conveyor system will be laid on the support structures and along the route it will cross the Santa Creek over the existing bridge.
8The pipe conveyor length will be around 87.35 m out of a total length of 4.5 km crossing of the Santa Creek.
Click on the reports for more. Details
IOCL is planning to test its existing Auto LPG installations in the state of Andhra Pradesh.
8The vessel testing job will consist of the following jobs:
-- Degassing and de-commissioning.
-- Visual inspection.
-- Cleaning of the vessels after dewatering and drying.
-- NDT including dye penetration test, MPI, UT, Hardness test etc. as per various ASTM standards and OISD standards.
-- Pneumatic test including pipelines.
-- SRV and EFCV checking and testing.
-- Supply and replacement of gaskets, studs including Isolation (CP) gaskets etc.
-- Testing of SRVs/EFCV/TSV/POP action valves and certification.
-- Purging with Nitrogen.
-- Re-commissioning of ALDS..
-- Testing and certification
Click on Report for more details. Details
8The vessel testing job will consist of the following jobs:
-- Degassing and de-commissioning.
-- Visual inspection.
-- Cleaning of the vessels after dewatering and drying.
-- NDT including dye penetration test, MPI, UT, Hardness test etc. as per various ASTM standards and OISD standards.
-- Pneumatic test including pipelines.
-- SRV and EFCV checking and testing.
-- Supply and replacement of gaskets, studs including Isolation (CP) gaskets etc.
-- Testing of SRVs/EFCV/TSV/POP action valves and certification.
-- Purging with Nitrogen.
-- Re-commissioning of ALDS..
-- Testing and certification
Click on Report for more details. Details
The decongestion of Mumbai refinery is mainly for providing space for future expansion in the Mumbai Refinery complex.
8The expansion project of the Mumbai Refinery complex will maximize the production of eco-friendly products as is required to be produced under the stringent fuel specifications of the future.
8The plans are to go through the revamp of facilities to meet the new norms and expand capacity from 6.5 MMPTA to 9.5 MMPTA.
8The expansion project includes state of the art processing facilities and bottom upgradation units for increasing the production of value added products.
8HPCL has entrusted Engineers India Limited (EIL) to carry out an environment impact assessment study and preparation of environmental management plan for various environmental components of the proposed expansion project.
Click on Report for more details Details
8The expansion project of the Mumbai Refinery complex will maximize the production of eco-friendly products as is required to be produced under the stringent fuel specifications of the future.
8The plans are to go through the revamp of facilities to meet the new norms and expand capacity from 6.5 MMPTA to 9.5 MMPTA.
8The expansion project includes state of the art processing facilities and bottom upgradation units for increasing the production of value added products.
8HPCL has entrusted Engineers India Limited (EIL) to carry out an environment impact assessment study and preparation of environmental management plan for various environmental components of the proposed expansion project.
Click on Report for more details Details
Following are the facilities associated with the proposed project at the Calico plot:
8Structural buildings: This includes a white oil pump house, fire water pump house, watch tower and a pipe rack inside the refinery area
8Interconnection between the Refinery and Calico plot: Level crossings and tunnel crossings are the two existing options for interconnection. The length of the tunnel will be around 50 to 55m.
8Electrical System: An set of electrical systems will be required
8Water Requirement: The total fresh water requirement is 5 (m)^3 per day. The fresh water will be supplied by the Brihanmumbai Municipal Corporation (BMC). Waste water generated will be treated in the existing ETP of the Mumbai Refinery (MR). All oily water effluent generated will be routed to Mumbai refinery too for further treatment.
8Power Requirement :The total power requirement will be 2.3 MW and will be sourced from the state grid but a DG set will be there for back up during power failure.
Click on Report for more details. Details
8Structural buildings: This includes a white oil pump house, fire water pump house, watch tower and a pipe rack inside the refinery area
8Interconnection between the Refinery and Calico plot: Level crossings and tunnel crossings are the two existing options for interconnection. The length of the tunnel will be around 50 to 55m.
8Electrical System: An set of electrical systems will be required
8Water Requirement: The total fresh water requirement is 5 (m)^3 per day. The fresh water will be supplied by the Brihanmumbai Municipal Corporation (BMC). Waste water generated will be treated in the existing ETP of the Mumbai Refinery (MR). All oily water effluent generated will be routed to Mumbai refinery too for further treatment.
8Power Requirement :The total power requirement will be 2.3 MW and will be sourced from the state grid but a DG set will be there for back up during power failure.
Click on Report for more details. Details
The following pipeline facilities are planned as part of the shift of storage tanks to the Calico plot
8Pipelines to receive all types of oils from the refinery.
--Two 12” lines for ferrying MS
--Two HSD 14” pipes
--Two 8” pipes for SKO transporation
--One 10” line for ATF
--One 6” linepipe for SCN
8There will also be two new 24” diameter pipelines for dispatch of four different types of white oils from Calico to the Jetty through the existing pipelines from HPCL's Mumbai refinery.
8Building a new 10” diameter pipeline for dispatch of ATF from Calico to the refinery and then to the Mumbai airport through the existing 10” pipeline from HPCL's Mumbai refinery.
8One 8” diameter new pipeline for receipt of SKO and one 14” new pipeline for dispatch to RILby connecting to the existing pipeline.
8New booster pumps will be installed for pipeline dispatch of five different types of white oils through the existing Mumbai Pune Solapur pipeline (MPSPL) via the Mumbai refinery.
Click on Report for more details. Details
8Pipelines to receive all types of oils from the refinery.
--Two 12” lines for ferrying MS
--Two HSD 14” pipes
--Two 8” pipes for SKO transporation
--One 10” line for ATF
--One 6” linepipe for SCN
8There will also be two new 24” diameter pipelines for dispatch of four different types of white oils from Calico to the Jetty through the existing pipelines from HPCL's Mumbai refinery.
8Building a new 10” diameter pipeline for dispatch of ATF from Calico to the refinery and then to the Mumbai airport through the existing 10” pipeline from HPCL's Mumbai refinery.
8One 8” diameter new pipeline for receipt of SKO and one 14” new pipeline for dispatch to RILby connecting to the existing pipeline.
8New booster pumps will be installed for pipeline dispatch of five different types of white oils through the existing Mumbai Pune Solapur pipeline (MPSPL) via the Mumbai refinery.
Click on Report for more details. Details
The Calico plot will have the following storage facilities: .
--Storage facility for six different types of White Oils (MS grade-I, MS grade-II, HSD grade- I, HSD grade- II, SKO and ATF), Naphtha and Slop.
--MS storage tanks – Eight in all (four of 29620 Kl gross capacity each and four more of 14525 Kl gross capacity each)
--HSD storage tanks – Six in all, of which four are of 29620 Kl gross capacity each and two of 14535 Kl gross capacity each
--SKO storage tanks – Five tanks of 14535 Kl gross capacity each.
--ATF Storage tanks – Five tanks of which four will be of 14927 Kl gross capacity each and one of 1584 Kl gross capacity
--Naphtha storage tanks – Two tanks of 4964 Kl
--Slop storage tanks – Two tanks of 4964 Kl gross capacity each .
Click on Report for more details. Details
--Storage facility for six different types of White Oils (MS grade-I, MS grade-II, HSD grade- I, HSD grade- II, SKO and ATF), Naphtha and Slop.
--MS storage tanks – Eight in all (four of 29620 Kl gross capacity each and four more of 14525 Kl gross capacity each)
--HSD storage tanks – Six in all, of which four are of 29620 Kl gross capacity each and two of 14535 Kl gross capacity each
--SKO storage tanks – Five tanks of 14535 Kl gross capacity each.
--ATF Storage tanks – Five tanks of which four will be of 14927 Kl gross capacity each and one of 1584 Kl gross capacity
--Naphtha storage tanks – Two tanks of 4964 Kl
--Slop storage tanks – Two tanks of 4964 Kl gross capacity each .
Click on Report for more details. Details
HPCL intends to decongest the Mumbai Refinery and accordingly plans to reconstruct some of its product storage facilities to the newly acquired Calico Plot located North East of the existing refinery.
8After successful public hearing conducted by HPCL for acquisition of the Calico land, the company is going ahead with its refinery expansion plan. The first step is shifting the product storage facilities to the Calico Plot.
8The project also involve laying of new pipelines (to and fro) from thje Calico plot to HPCL's Mumbai Refinery and connecting them to the existing pipelines from the Mumbai Refinery.
8The HPCL Mumbai Refinery has limited space as it is housed in an area of 321 acres at Mahul, Mumbai.
8The space that is freed up by the shift to Calico will be used for future capacity expansion in the Mumbai Refinery Complex.
8HPCL plans to put product capacity for white oil products at the Calico plot. Gross storage capacity of white oils will be 468025 KL.
Click on Report for more details. Details
8After successful public hearing conducted by HPCL for acquisition of the Calico land, the company is going ahead with its refinery expansion plan. The first step is shifting the product storage facilities to the Calico Plot.
8The project also involve laying of new pipelines (to and fro) from thje Calico plot to HPCL's Mumbai Refinery and connecting them to the existing pipelines from the Mumbai Refinery.
8The HPCL Mumbai Refinery has limited space as it is housed in an area of 321 acres at Mahul, Mumbai.
8The space that is freed up by the shift to Calico will be used for future capacity expansion in the Mumbai Refinery Complex.
8HPCL plans to put product capacity for white oil products at the Calico plot. Gross storage capacity of white oils will be 468025 KL.
Click on Report for more details. Details
A total of six petroleum products pipelines with a combined capacity of 19.79 MMT are under construction as on August 2015.
8Out of the six pipelines, three pipelines with a capacity of 5.54 MMT are LPG pipelines.
8Whereas the rest, with a combined capacity of 14.25 MMT, will be transporting the petroleum products except the LNG.
8The Kochi-Coimbator-Erode-Salem -- being constructed by a BPCL-led consortium -- and is envisaged to carry LPG is expected to be completed by the first half of 2017.
8Whereas, the other LPG pipelines -- the Uran-Chakan-Shikrapur and the Mangalore-Hassan-Mysore-Sollur lines-- are expected to complete by the end of 2015.
The details of pipelines transporting petroleum products apart from LPG along with there completion dates are as follows:
-- Irugur-Devangonthi by BPCL ( 26.2.2017)
-- Rewari-Kanpur by HPCL (19.11.2015)
-- Kota-Jobner by BPCL (4.12.2015)
Click on Reports for more. Details
8Out of the six pipelines, three pipelines with a capacity of 5.54 MMT are LPG pipelines.
8Whereas the rest, with a combined capacity of 14.25 MMT, will be transporting the petroleum products except the LNG.
8The Kochi-Coimbator-Erode-Salem -- being constructed by a BPCL-led consortium -- and is envisaged to carry LPG is expected to be completed by the first half of 2017.
8Whereas, the other LPG pipelines -- the Uran-Chakan-Shikrapur and the Mangalore-Hassan-Mysore-Sollur lines-- are expected to complete by the end of 2015.
The details of pipelines transporting petroleum products apart from LPG along with there completion dates are as follows:
-- Irugur-Devangonthi by BPCL ( 26.2.2017)
-- Rewari-Kanpur by HPCL (19.11.2015)
-- Kota-Jobner by BPCL (4.12.2015)
Click on Reports for more. Details
The Shipping Ministry is planning ro revamp the existing Merchant Shipping Act.
8In this regard, several meetings with the concerned stakeholders have already been held in the past two months.
8For those who are into the shipping business specifically with coastal shipping, the website carries here the full draft report.
Here is the list of categories in which changes are proposed:
-- General administration
-- Registration of Indian ships
-- Certificates of seafarers
-- Prevention and containment of pollution from vessels
8The long and exhaustive list of changes along with details are carried in our Reports section. Details
8In this regard, several meetings with the concerned stakeholders have already been held in the past two months.
8For those who are into the shipping business specifically with coastal shipping, the website carries here the full draft report.
Here is the list of categories in which changes are proposed:
-- General administration
-- Registration of Indian ships
-- Certificates of seafarers
-- Prevention and containment of pollution from vessels
8The long and exhaustive list of changes along with details are carried in our Reports section. Details
IOCL plans to conduct its pipeline lowering work in all 7 locations in its Barauni – Kanpur Pipeline (BKPL) using the Horizontal drilling (HDD) technique. New pipeline sections will be installed to the desired depth
8The alignment of existing BKPL is getting out of sync with the alignment of the railway under bridges of the eastern dedicated freight corridor at 7 locations in the Mughalsarai-Kanpur section.
8The new pipeline will be hooked-up with the existing BKPL at both ends at all the locations and will be laid parallel to the proposed tracks of the Eastern DFC at all 7 locations.
Click on the Reports for more. Details
8The alignment of existing BKPL is getting out of sync with the alignment of the railway under bridges of the eastern dedicated freight corridor at 7 locations in the Mughalsarai-Kanpur section.
8The new pipeline will be hooked-up with the existing BKPL at both ends at all the locations and will be laid parallel to the proposed tracks of the Eastern DFC at all 7 locations.
Click on the Reports for more. Details
IOCL has chalked out a plan to set up a pet coke evacuation facility in its Paradip refinery at an estimated cost of Rs. 238.5 crore.
8The evacuation of pet coke is planned against the backdrop of the commissioning of the 15 MMPTA grassroot refinery at Paradip which will produce large amount of pet coke as residue.
The pet coke evacuation facility will include:
--A Pet Coke Conveying System,
--A Rapid Loading System (RLS)
--A Delayed Coker Unit (DCU),
8In addition to that the project includes setting up of associated utilities and offsite works for integrating and interfacing with the existing refinery.
Click on the Report for more. Details
8The evacuation of pet coke is planned against the backdrop of the commissioning of the 15 MMPTA grassroot refinery at Paradip which will produce large amount of pet coke as residue.
The pet coke evacuation facility will include:
--A Pet Coke Conveying System,
--A Rapid Loading System (RLS)
--A Delayed Coker Unit (DCU),
8In addition to that the project includes setting up of associated utilities and offsite works for integrating and interfacing with the existing refinery.
Click on the Report for more. Details
There is a lot riding on the PCPIR as of now.
8The 2015 Vibrant Gujarat Summit saw as many as 97 MoU’s with a total investment of about 53,000 crore coming up in the state. Of these 66% MoUs are for the PCPIR.
8A list of companies have drawn up
8The distribution of present industries in the region shows the dominance of the chemical and petrochemical sector with a share of 48% in terms of units and 74% in terms of area covered. Ceramics and engineering are the other important industrial segments
8A plot has been allotted to Bharuch Enviro Infrastructure Ltd in Dahej for scientific handling of hazardous waste in the PCPIR.
Click on our Reports section for full details Details
8The 2015 Vibrant Gujarat Summit saw as many as 97 MoU’s with a total investment of about 53,000 crore coming up in the state. Of these 66% MoUs are for the PCPIR.
8A list of companies have drawn up
8The distribution of present industries in the region shows the dominance of the chemical and petrochemical sector with a share of 48% in terms of units and 74% in terms of area covered. Ceramics and engineering are the other important industrial segments
8A plot has been allotted to Bharuch Enviro Infrastructure Ltd in Dahej for scientific handling of hazardous waste in the PCPIR.
Click on our Reports section for full details Details
The followings are the list of requirements needed now in the PCPIR
--Land Requirment:The total processing area required for the project is 23,005.97 Ha,where as the existing industrial estates has acquired 11868 Ha. Given that land acquisition is a problem area, this may be as easy now as it was before
--Common Effluent Treatment Plant: The project will need 40 MLD in the first phase with the provision of an additional 40 MLD based on the increased effluent load. At present the water supply inthe PCPIR is 100 MLD and effluent generation is about 22 MLD.
--Water Supply :A total of 22 MGD of water is being supplied to the PCPIR, in two schmes of 8 MGD and 25 MGD.Both these schemes are based from the river Narmada. A new intake well at Nand and a storage reservoir of 366 MG is under construction. A new 50 MGD water supply scheme is also under construction.
-- Effluent Disposal Pipeline: A 90 MLD effluent conveyance pipeline will be laid for carrying the effluent. Moreover pumping stations will be setup which will bring effluents from upcoming industries in Dahej-II & III and the Vilayat Expansion Area.
-- Power Availability: The proposal involves a power requirement of 5000 MW and at present available is 600 MVA. So captive power plants are planned.
Click on our Report section for more details. Details
--Land Requirment:The total processing area required for the project is 23,005.97 Ha,where as the existing industrial estates has acquired 11868 Ha. Given that land acquisition is a problem area, this may be as easy now as it was before
--Common Effluent Treatment Plant: The project will need 40 MLD in the first phase with the provision of an additional 40 MLD based on the increased effluent load. At present the water supply inthe PCPIR is 100 MLD and effluent generation is about 22 MLD.
--Water Supply :A total of 22 MGD of water is being supplied to the PCPIR, in two schmes of 8 MGD and 25 MGD.Both these schemes are based from the river Narmada. A new intake well at Nand and a storage reservoir of 366 MG is under construction. A new 50 MGD water supply scheme is also under construction.
-- Effluent Disposal Pipeline: A 90 MLD effluent conveyance pipeline will be laid for carrying the effluent. Moreover pumping stations will be setup which will bring effluents from upcoming industries in Dahej-II & III and the Vilayat Expansion Area.
-- Power Availability: The proposal involves a power requirement of 5000 MW and at present available is 600 MVA. So captive power plants are planned.
Click on our Report section for more details. Details
The entire PCPIR area is categorized broadly in two areas:
-- A Processing Area
-- A Non Processing Area
8The processing area consists of 50.79% of the entire PCPIR while the rest will be developed as the Non Processing area.
8There will be four infrastructure phases:
--The zero phase will be from 2011 to 2020 and it constitutes 5% of the total development.
--The first phase will be from 2020 to 2025 and it would constitute 20% of the total development.
--The Second phase will be from 2025 to 2030 and it would constitutes 45% of total development.
--The third and last phase will be from 2031 to 2040 and constitutes 30% of the total development.
8The industrial development plan will use 18,656.42 Ha of land.
8The cracker plant with a capacity of 1100 KTPA is currently planned to be set up in this region. which will produce polymer grade ethylene and propylene.
8The petrochemical feedstock to the downstream basic polymer units of the Linear Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene (PP), Styrene Butadiene Rubber (SBR) and LNG will be shipped to the terminal from Qatar.
8OPaL has planned to source 9,73,000 MPTA of feedstock from Petronet LNG and 1.5 MMTPA naptha from its Hazira and Uran units.
8A set of small and medium industrial unit in Vagra and Bharauch will cost 50,136Crore.
Click on our Report section for more details Details
-- A Processing Area
-- A Non Processing Area
8The processing area consists of 50.79% of the entire PCPIR while the rest will be developed as the Non Processing area.
8There will be four infrastructure phases:
--The zero phase will be from 2011 to 2020 and it constitutes 5% of the total development.
--The first phase will be from 2020 to 2025 and it would constitute 20% of the total development.
--The Second phase will be from 2025 to 2030 and it would constitutes 45% of total development.
--The third and last phase will be from 2031 to 2040 and constitutes 30% of the total development.
8The industrial development plan will use 18,656.42 Ha of land.
8The cracker plant with a capacity of 1100 KTPA is currently planned to be set up in this region. which will produce polymer grade ethylene and propylene.
8The petrochemical feedstock to the downstream basic polymer units of the Linear Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene (PP), Styrene Butadiene Rubber (SBR) and LNG will be shipped to the terminal from Qatar.
8OPaL has planned to source 9,73,000 MPTA of feedstock from Petronet LNG and 1.5 MMTPA naptha from its Hazira and Uran units.
8A set of small and medium industrial unit in Vagra and Bharauch will cost 50,136Crore.
Click on our Report section for more details Details
The Gujarat Petroleum, Chemicals and Petrochemical Investment Region (GPCPIR) at Dahej is a massive undertaking by any yardstick. Land acquisition was a problem but given that it is based in the arid Bharuch region of South Gujarat, it did not turn out to be too big headache eventually though a lot of land is till to be acquired and the acquisition laws are still not clear.
8The ONGC Petro Additions Ltd (OPAL) is the anchor tenant but a host of industries are now taking shelter in the PCPIR.
8The following are the advantage of Dahej region:
--Concentration of petroleum, chemical and petrochemical estates around the PCPIR
--Rich natural resources and feedstock availability
--All infrastructure-road, rail, port, power, gas, water-in place, with planned up-gradation
--Chemical port terminal and chemical storage facility at Dahej
--LNG terminal
--PCPIR specific infrastructure such as effluent disposal pipelines, roads and solid waste disposal sites have been built and plans have been drawn up for devlopment right up to 2014. available
-- SEZs by GIDC and ONGC at Dahej have also coming up
Click on Reports for more details Details
8The ONGC Petro Additions Ltd (OPAL) is the anchor tenant but a host of industries are now taking shelter in the PCPIR.
8The following are the advantage of Dahej region:
--Concentration of petroleum, chemical and petrochemical estates around the PCPIR
--Rich natural resources and feedstock availability
--All infrastructure-road, rail, port, power, gas, water-in place, with planned up-gradation
--Chemical port terminal and chemical storage facility at Dahej
--LNG terminal
--PCPIR specific infrastructure such as effluent disposal pipelines, roads and solid waste disposal sites have been built and plans have been drawn up for devlopment right up to 2014. available
-- SEZs by GIDC and ONGC at Dahej have also coming up
Click on Reports for more details Details
Cairn is also asking for a range of attendant services with the hydro-fracturing jobs.
And they include:
8Thru-tubing services
8Sand management services
8Coil tubing services
8Tractor & stroker services
8Slick-line services
8High rate pumping services
8Flowback services
8Velocity string installation ( Supply + service)
8Scrapping winch unit
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And they include:
8Thru-tubing services
8Sand management services
8Coil tubing services
8Tractor & stroker services
8Slick-line services
8High rate pumping services
8Flowback services
8Velocity string installation ( Supply + service)
8Scrapping winch unit
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Cairn India is moving at a furious pace with its development work in the Rajasthan block.
8The focus seems to be on fracking and RFQs are out for a whole lot of fracking equipment. What the company is looking for is:
8Fracking is a water intensive job in waterless Rajasthan and the company is looking at recycling frack fluids along with with waste water management services. An affluent treatment plant is also needed along with capacity to treat acid and flow back fluid along as well as attendant services such as tankers, vacuum trucks and residual disposal facility.
8The focus is on hydraulic fracturing equipment and services provisions of frac services on a lease basis for different types of fracturing jobs
8The jobs will include conventional cross linking fracturing, linear gel / slick water fracturing, among other jobs. etc.
8The package includes supply of chemicals and proppant (sand and ceramic) including NRT along with all equipment for fracturing. Also to be included are chemical tracers (Service, Supply and Testing), hot oil unit, d isolation tool
8Multistage fracturing provision of downhole equipment, spares and services (technology) for executing such jobs in primarily horizontal wells will be required.
8Idea is make available a hydraulic fracturing service provider or standalone services as the case may be.
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8The focus seems to be on fracking and RFQs are out for a whole lot of fracking equipment. What the company is looking for is:
8Fracking is a water intensive job in waterless Rajasthan and the company is looking at recycling frack fluids along with with waste water management services. An affluent treatment plant is also needed along with capacity to treat acid and flow back fluid along as well as attendant services such as tankers, vacuum trucks and residual disposal facility.
8The focus is on hydraulic fracturing equipment and services provisions of frac services on a lease basis for different types of fracturing jobs
8The jobs will include conventional cross linking fracturing, linear gel / slick water fracturing, among other jobs. etc.
8The package includes supply of chemicals and proppant (sand and ceramic) including NRT along with all equipment for fracturing. Also to be included are chemical tracers (Service, Supply and Testing), hot oil unit, d isolation tool
8Multistage fracturing provision of downhole equipment, spares and services (technology) for executing such jobs in primarily horizontal wells will be required.
8Idea is make available a hydraulic fracturing service provider or standalone services as the case may be.
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Cairn is on the look out for an LSTK contractor for developing three new well pads for drilling 20 new wells along with associated facilities.
8The job also includes augmentation of four existing well pads along with modification of existing 21 wells and developing 22 new wells along with new associated facilities.
8The scope of work includes mechanical, piping, electrical, instrumentation, telecom, civil & structural works involving the following:
--Residual engineering including incorporation of vendor related information
--Procurement, transportation and supply of all material and equipment such as test separators, cold vent system, well head control panels, fire & gas system, chemical injection package, fire water packages etc.
--Expediting, inspection and testing of all material and equipment
--Construction, installation and testing at site
--Interfaces and hook-up with existing facilities
--Pre-commissioning, performance testing and assistance in commissioning and start-up
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8The job also includes augmentation of four existing well pads along with modification of existing 21 wells and developing 22 new wells along with new associated facilities.
8The scope of work includes mechanical, piping, electrical, instrumentation, telecom, civil & structural works involving the following:
--Residual engineering including incorporation of vendor related information
--Procurement, transportation and supply of all material and equipment such as test separators, cold vent system, well head control panels, fire & gas system, chemical injection package, fire water packages etc.
--Expediting, inspection and testing of all material and equipment
--Construction, installation and testing at site
--Interfaces and hook-up with existing facilities
--Pre-commissioning, performance testing and assistance in commissioning and start-up
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Sep 08 : No let up in E&P business yet in India-I: All players claim they are going ahead with plans
The price of oil may have hit rock bottom but demand for equipment and contracting services has not abated in India.
8There is talk that around $137 billion worth of capex lost across the E&P space all over the world but no so in India. At least not officially.
8Operators in almost all onland blocks are continuing with their minimum work programmes and development plans. On the offshore front, EOIs have been taken out by ONGC, Cairn India, GSPC and RIL for both exploration and development work.
8Clearly some of them have been floated to test the market, in order to see by how much prices of equipment and services have come down in in the aftermath of the oil price crash
8For it is evident that unless the price of gas (as most offshore developments are going to be gas based) goes up some of these investments will be put off but nevertheless there are no indications yet that planned investments have been shelved by any of the players.
8ONGC has made it clear that its Rs 53,000 crore capex in the KG Basin blocks is on course and, so far, neither RIL nor Cairn nor GSPC has claimed that they are not going ahead with their capex plans.
8Everyone is waiting for a brighter future but whether they eventually put money in remains to be seen.
Click on Report for more details Details
8There is talk that around $137 billion worth of capex lost across the E&P space all over the world but no so in India. At least not officially.
8Operators in almost all onland blocks are continuing with their minimum work programmes and development plans. On the offshore front, EOIs have been taken out by ONGC, Cairn India, GSPC and RIL for both exploration and development work.
8Clearly some of them have been floated to test the market, in order to see by how much prices of equipment and services have come down in in the aftermath of the oil price crash
8For it is evident that unless the price of gas (as most offshore developments are going to be gas based) goes up some of these investments will be put off but nevertheless there are no indications yet that planned investments have been shelved by any of the players.
8ONGC has made it clear that its Rs 53,000 crore capex in the KG Basin blocks is on course and, so far, neither RIL nor Cairn nor GSPC has claimed that they are not going ahead with their capex plans.
8Everyone is waiting for a brighter future but whether they eventually put money in remains to be seen.
Click on Report for more details Details
GAIL is planning to implement the City Gas Distribution Network to supply Natural Gas to in the Bengaluru city.
8The gas major has selected MECON limited to overlook the consultant work for the project.
8The scope of work covers laying, testing and commissioning of underground steel pipelines of 8 inch, 6 inch and 4 inch diameter.
8In addition to this, installations of the sectionalizing valve station and the district regulating station along with their associated facilities are also included in the project.
8The total length of the pipeline will be 73 km.
Click on the Reports for more details.
Details
8The gas major has selected MECON limited to overlook the consultant work for the project.
8The scope of work covers laying, testing and commissioning of underground steel pipelines of 8 inch, 6 inch and 4 inch diameter.
8In addition to this, installations of the sectionalizing valve station and the district regulating station along with their associated facilities are also included in the project.
8The total length of the pipeline will be 73 km.
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Details
Is the era of subsidized gas for the North East of India: coming to an end?
8This may well be the case as is evident from a petroleum ministry clarification that subsidized gas supplies will be limited only to APM gas in the region.
8According Oil India Ltd and ONGC have been directed by the government that the 40% subsidy on gas supplies in the North East will be available only up to the maximum level of Gas Linkage Committee (GLC) allocations.
8Pertinently, it is not just the national oil companies which will be eligible for the subsidy but also private companies.
8But the ministry has made it clear that the subsidy given to private suppliers of gas such as Focus Energy will have to be from within the GLC quota.
8Any supply beyond this quota will not eligible for subsidy.
8Clearly it is the end of the story for gas based industries in the North East who have to depend on a large quantum of gas from the region. They will not be entitled to subsidized gas any more.
Click on Report for more details. Details
8This may well be the case as is evident from a petroleum ministry clarification that subsidized gas supplies will be limited only to APM gas in the region.
8According Oil India Ltd and ONGC have been directed by the government that the 40% subsidy on gas supplies in the North East will be available only up to the maximum level of Gas Linkage Committee (GLC) allocations.
8Pertinently, it is not just the national oil companies which will be eligible for the subsidy but also private companies.
8But the ministry has made it clear that the subsidy given to private suppliers of gas such as Focus Energy will have to be from within the GLC quota.
8Any supply beyond this quota will not eligible for subsidy.
8Clearly it is the end of the story for gas based industries in the North East who have to depend on a large quantum of gas from the region. They will not be entitled to subsidized gas any more.
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GAIL has claimed a total capex including land and ROU of Rs. 5047.36 crore from 2009-10 till the end of its economic life in 2037-38.
8Data however shows that the total capex outgo excluding IDC claimed by GAIL from 2009-10 to 2013-14 in its tariff filing was Rs. 2511 crore whereas as per the CA certificate, it was Rs. 2399.56 crore.
8While analyzing the CA certificates it was observed the CA certificate for Capital Work in Progress for the FY 2011-12 does not match with the balance appearing in the trial balance for that year.
8As per the certificates, the CWIP for the FY 2011-12 is Rs. 1673.32 cr and CWIP as per trial balance is Rs. 1703.94 cr.
8GAIL stated that the difference between trial balance and CWIP certificate submitted for the FY 2011-12 was an oversight and the gas major submitted a new trial balance for the FY 2011-12.
PNGRB on preliminary scrutiny of GAIL's future capex projections found discrepancies in the two submissions and sought a clarification on which GAIL submitted a revised estimated future capex.
8In its tariff filing, GAILhas claimed a total opex of Rs. 5137.76 crore from 2012-13 till the end of its economic life in 2037-38.
8Out of which GAIL claimed a total of Rs. 24.96 crore as operating expenses for the FY 2012-13 and 2013-14. On scrutiny however it was observed that CA certificate of opex submitted by GAIL do not reconcile with the trial balance of FY 2013-14.
8GAIL has now submitted fresh figures
8Moreover, GAIL in its tariff filing has claimed a total operating expenses of Rs.5112.57 crore from 2014-15 to 2037-38.GAIL has considered the impact of inflation rate on opex at 5.75%. For future opex i.e., for FY 2014-15 onwards, GAIL, instead of escalating actual opex for the FY 2013-14, has considered a 2.5% figure of the cumulative capex for the respective year and has escalated it with the inflation rate of 5.75% per annum from 2013-14 for the respective number of years.
8In addition to the apex, GAIL has considered 0.3% of the throughput as unaccounted gas loss, as a cost to be recovered through the transportation tariff.
GAIL in its tariff filing has claimed a total unaccounted gas loss of a substantial Rs. 2263.80 crore from FY 2012-13 to 2037-38.
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8Data however shows that the total capex outgo excluding IDC claimed by GAIL from 2009-10 to 2013-14 in its tariff filing was Rs. 2511 crore whereas as per the CA certificate, it was Rs. 2399.56 crore.
8While analyzing the CA certificates it was observed the CA certificate for Capital Work in Progress for the FY 2011-12 does not match with the balance appearing in the trial balance for that year.
8As per the certificates, the CWIP for the FY 2011-12 is Rs. 1673.32 cr and CWIP as per trial balance is Rs. 1703.94 cr.
8GAIL stated that the difference between trial balance and CWIP certificate submitted for the FY 2011-12 was an oversight and the gas major submitted a new trial balance for the FY 2011-12.
PNGRB on preliminary scrutiny of GAIL's future capex projections found discrepancies in the two submissions and sought a clarification on which GAIL submitted a revised estimated future capex.
8In its tariff filing, GAILhas claimed a total opex of Rs. 5137.76 crore from 2012-13 till the end of its economic life in 2037-38.
8Out of which GAIL claimed a total of Rs. 24.96 crore as operating expenses for the FY 2012-13 and 2013-14. On scrutiny however it was observed that CA certificate of opex submitted by GAIL do not reconcile with the trial balance of FY 2013-14.
8GAIL has now submitted fresh figures
8Moreover, GAIL in its tariff filing has claimed a total operating expenses of Rs.5112.57 crore from 2014-15 to 2037-38.GAIL has considered the impact of inflation rate on opex at 5.75%. For future opex i.e., for FY 2014-15 onwards, GAIL, instead of escalating actual opex for the FY 2013-14, has considered a 2.5% figure of the cumulative capex for the respective year and has escalated it with the inflation rate of 5.75% per annum from 2013-14 for the respective number of years.
8In addition to the apex, GAIL has considered 0.3% of the throughput as unaccounted gas loss, as a cost to be recovered through the transportation tariff.
GAIL in its tariff filing has claimed a total unaccounted gas loss of a substantial Rs. 2263.80 crore from FY 2012-13 to 2037-38.
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Petronet LNG Ltd (PLL) has made it clear that the low offtake of long term LNG contracted with Qatar will continue in 2016-17 as spot prices will remain lower than long term contracts.
8The company has claimed that the LNG prices in the spot markets declined sharply due to the declining crude prices.
8However, the prices under the long-term contract, which have benefited the Indian consumers for the past decade, will take longer time to align with the current market prices due to the contract price being linked to the 60-month JCC average
8This has led to a decline in the RLNG off-take by the Petronet off-takers – GAIL, IOCL and BPCL – citing low acceptability of the RLNG prices among their consumers.
8This low off-take situation is expected to continue in the next year.
8Company is currently "urgently working" on plans to alleviate the situation but did not specify what kind of action will be taken. "Your Company is working to mitigate impact
of high priced LNG due to sharp decline of crude oil prices along-with off-takers GAIL, IOCL and BPCL," is all that PLL is willing admit for the time being.
8Clearly the floor price of Qatar LNG, aligned to the price of crude, has to be revised downwards for the price of long term contacts to come down and no indications are available from the company on whether the terms are being renegotiated.
8As per the terms of the agreement, PLL will have to account for take or pay arrangements as per the contract with Qatar but how exactly this is going to pan out is till not know. Clearly, PLL has to account for the outstanding payments under the take or pay head as contingent liability pending resolution of the tussle.
8During 2014-15, the Dahej Terminal handled 154 LNG cargoes and supplied 520.78 TBTUs of re-gasified LNG in India. As many as 2666 LNG road tankers were loaded and dispatched during the year
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8The company has claimed that the LNG prices in the spot markets declined sharply due to the declining crude prices.
8However, the prices under the long-term contract, which have benefited the Indian consumers for the past decade, will take longer time to align with the current market prices due to the contract price being linked to the 60-month JCC average
8This has led to a decline in the RLNG off-take by the Petronet off-takers – GAIL, IOCL and BPCL – citing low acceptability of the RLNG prices among their consumers.
8This low off-take situation is expected to continue in the next year.
8Company is currently "urgently working" on plans to alleviate the situation but did not specify what kind of action will be taken. "Your Company is working to mitigate impact
of high priced LNG due to sharp decline of crude oil prices along-with off-takers GAIL, IOCL and BPCL," is all that PLL is willing admit for the time being.
8Clearly the floor price of Qatar LNG, aligned to the price of crude, has to be revised downwards for the price of long term contacts to come down and no indications are available from the company on whether the terms are being renegotiated.
8As per the terms of the agreement, PLL will have to account for take or pay arrangements as per the contract with Qatar but how exactly this is going to pan out is till not know. Clearly, PLL has to account for the outstanding payments under the take or pay head as contingent liability pending resolution of the tussle.
8During 2014-15, the Dahej Terminal handled 154 LNG cargoes and supplied 520.78 TBTUs of re-gasified LNG in India. As many as 2666 LNG road tankers were loaded and dispatched during the year
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The Rosneft chief has made the claim that investments are already down $137 billion in 2015.
8There will be a decline of another $200-250 billion in 2016.
8While capex will go down by 20%, investment in new projects will decline by a whopping 40%.
8What is more current prices are at the level of OPEX at this moment and this is not enough to sustain production.
8And as soon as the balancing happens by 2016, prices will begin their upward climb.
8Technology will eventually be a critical player in this gamee, Sechin preducts and goes on to show that high-technology oil will play an increasing role in future production increases and will make up about 30 to 40% of total oil output by 2040.
8In Asia, demand is growing but so is the deficit, as new discoveries in the continent are increasingly more expensive. Sustainable growth in Asia will require uninterrupted supplies and Russia is best placed to plug this deficit because the distances are shorter to Asia from Russia.
8He goes on to claim that production costs in East Siberia are lower than most other places.
8The output from SIberia will come from conventional oil and offshore fields and also from the arctic fields Details
8There will be a decline of another $200-250 billion in 2016.
8While capex will go down by 20%, investment in new projects will decline by a whopping 40%.
8What is more current prices are at the level of OPEX at this moment and this is not enough to sustain production.
8And as soon as the balancing happens by 2016, prices will begin their upward climb.
8Technology will eventually be a critical player in this gamee, Sechin preducts and goes on to show that high-technology oil will play an increasing role in future production increases and will make up about 30 to 40% of total oil output by 2040.
8In Asia, demand is growing but so is the deficit, as new discoveries in the continent are increasingly more expensive. Sustainable growth in Asia will require uninterrupted supplies and Russia is best placed to plug this deficit because the distances are shorter to Asia from Russia.
8He goes on to claim that production costs in East Siberia are lower than most other places.
8The output from SIberia will come from conventional oil and offshore fields and also from the arctic fields Details
Igor Sechin is of the view that the fundamental problem today is that oil supply is higher than consumption but this is a situation that is going to correct itself in the days ahead.
8Drilling activities all over the world are slowing down except in Saudi Arabia.
8Owing to this reduction, the number of drilling rigs in the US under operation is now going down even when drilling costs are coming down.
8Crude output in the US has declined since May, 2015.
8In fact, Sechin goes to say that the US forecast data has taken into account too many upsides which are in fact not there. Some of the figures are therefore fudged, the Rosneft boss claims.
8He admits that some factors may delay the balancing of demand and supply but these will even out over a period of time.
8The Chinese will continue to have an insatiable appetite and additional production from all over the world will be geared to meeting this demand.
8Diminishing E&P investments have already started taking its toll, he says Details
8Drilling activities all over the world are slowing down except in Saudi Arabia.
8Owing to this reduction, the number of drilling rigs in the US under operation is now going down even when drilling costs are coming down.
8Crude output in the US has declined since May, 2015.
8In fact, Sechin goes to say that the US forecast data has taken into account too many upsides which are in fact not there. Some of the figures are therefore fudged, the Rosneft boss claims.
8He admits that some factors may delay the balancing of demand and supply but these will even out over a period of time.
8The Chinese will continue to have an insatiable appetite and additional production from all over the world will be geared to meeting this demand.
8Diminishing E&P investments have already started taking its toll, he says Details
When Igor Sechin, the boss of Rosneft, one of the world's largest E&P companies, comes out with a detailed presentation to argue that oil prices are going to climb back again to three digit levels, the world takes notice.
8Sure, Sechin has an axe to grind because as a supplier of crude oil, he wants the price to go up and in that context he can be accused by contrarians of marshalling his facts in a manner as to be able to prove his hypothesis right but nevertheless what he says makes for cogent reading.
8The Rosneft boss however is on slightly tenuous ground as he places his entire bet on Chinese and Asian demand to take the markets up again. In recent years, the Chinese have account for up to two-thirds of incremental global demand for oil. He also argues that the stock market bust will not have a very negative impact as its role in the Chinese economy is still limited. The Chinese housing market is under control and while Sechin admits that Chinese demand is now slowing down and it is the service sector that is now growing rapidly as are investments in the housing sector.
8He also bets on the Asian economies, claiming that they are much more stable this time around than in the crisis years of 1997 and 1998.
8Chinese oil consumption is around 500 million tonnes and this is going to grow to 850 million tonnes and incremental demand is going to correct the global demand-supply imbalance to a big extent.
8Sechin argues that the rate of demand for liquid hydrocarbons has gone up in the first half of 2015 and an accleration in this is being noticed not just in developing but also in developed countries.
8The Rosneft chairman quotes the EIA to claim that global oil consumption will be at the level of 94.2 million barrels per day by the end of this year, which is 0.98 million barrels higher than the January forecast.
8Sachein then goes on to project global demand well into 2040 to show a rising consumption curve. Details
8Sure, Sechin has an axe to grind because as a supplier of crude oil, he wants the price to go up and in that context he can be accused by contrarians of marshalling his facts in a manner as to be able to prove his hypothesis right but nevertheless what he says makes for cogent reading.
8The Rosneft boss however is on slightly tenuous ground as he places his entire bet on Chinese and Asian demand to take the markets up again. In recent years, the Chinese have account for up to two-thirds of incremental global demand for oil. He also argues that the stock market bust will not have a very negative impact as its role in the Chinese economy is still limited. The Chinese housing market is under control and while Sechin admits that Chinese demand is now slowing down and it is the service sector that is now growing rapidly as are investments in the housing sector.
8He also bets on the Asian economies, claiming that they are much more stable this time around than in the crisis years of 1997 and 1998.
8Chinese oil consumption is around 500 million tonnes and this is going to grow to 850 million tonnes and incremental demand is going to correct the global demand-supply imbalance to a big extent.
8Sechin argues that the rate of demand for liquid hydrocarbons has gone up in the first half of 2015 and an accleration in this is being noticed not just in developing but also in developed countries.
8The Rosneft chairman quotes the EIA to claim that global oil consumption will be at the level of 94.2 million barrels per day by the end of this year, which is 0.98 million barrels higher than the January forecast.
8Sachein then goes on to project global demand well into 2040 to show a rising consumption curve. Details
GAIL had challenged the PNGRB's drastic cut in interim tariff rates in APTEL but the appellate authority has upheld the regulator's powers to fix such interim tariffs.
8PNGRB has now been directed by APTEL to complete the process of fixing the final tariff rates without any hindrance.
8The regulator has been asked to provide a reasoned order however.
8The tribunal said that if PNGRB were to independently come to the view that the interim orders were justified, then this would not be held against the regulator.
8GAIL has been ordered by the tribunal to go back to the PNGRB and submit its views.
8The gas major has not yet submitted all the data that has been demanded by the regulator yet though the last date for submission of information is already over.
8Some of the cost data submitted by GAIL has been found to be contradictory but the gas company is yet to fully clarify the contradictions.
Given that a lot is at stake, GAIL is fighting tooth and nail against the PNGRB's tariff orders.
8The company is now making the claim that the regulator has the right to fix tariffs only on a prospective basis and not retrospectively.
8To buttress its case, it has cited an order by the Appellate Tribunal wherein it said that PNGRB's jurisdiction begins from the grant of authorization and not before that.
8GAIL is using the order to claim that PNGRB's retrospective orders are against the law.
8In other words, even if the tariff rates were far higher than what was justified, the regulator had no jurisdiction to arbitrate on them before the date of authorization, the gas major has argued.
8And what about the buyers of gas before the date of authorization? They will not, by this logic, be entitled to any revision of tariff paid in the past.
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8PNGRB has now been directed by APTEL to complete the process of fixing the final tariff rates without any hindrance.
8The regulator has been asked to provide a reasoned order however.
8The tribunal said that if PNGRB were to independently come to the view that the interim orders were justified, then this would not be held against the regulator.
8GAIL has been ordered by the tribunal to go back to the PNGRB and submit its views.
8The gas major has not yet submitted all the data that has been demanded by the regulator yet though the last date for submission of information is already over.
8Some of the cost data submitted by GAIL has been found to be contradictory but the gas company is yet to fully clarify the contradictions.
Given that a lot is at stake, GAIL is fighting tooth and nail against the PNGRB's tariff orders.
8The company is now making the claim that the regulator has the right to fix tariffs only on a prospective basis and not retrospectively.
8To buttress its case, it has cited an order by the Appellate Tribunal wherein it said that PNGRB's jurisdiction begins from the grant of authorization and not before that.
8GAIL is using the order to claim that PNGRB's retrospective orders are against the law.
8In other words, even if the tariff rates were far higher than what was justified, the regulator had no jurisdiction to arbitrate on them before the date of authorization, the gas major has argued.
8And what about the buyers of gas before the date of authorization? They will not, by this logic, be entitled to any revision of tariff paid in the past.
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Sep 08 : GAIL gold plates cost of Dabhol-Bangalore gas pipeline-V: Eyebrows raised over O&M expenses
Some lessons are also to be drawn from the manner in which GAIL operates its O&M account.
8The future opex projections and the manner in which the money will be spent has raised some eyebrows.
8Of the future O&M opex, Rs 198 crore will be for shifting of lines due to external factors, salutatory requirements and safety infringements.
8An amount of Rs 182 crore has been earmarked for replacement of pipeliens due to excessive corrosion or damage.
8Another Rs 64 crore has been pegged to third party damage repair including loss of product
8A fund of Rs 45 crore has been kept aside for extension of casing pipe due to widening of highways Details
8The future opex projections and the manner in which the money will be spent has raised some eyebrows.
8Of the future O&M opex, Rs 198 crore will be for shifting of lines due to external factors, salutatory requirements and safety infringements.
8An amount of Rs 182 crore has been earmarked for replacement of pipeliens due to excessive corrosion or damage.
8Another Rs 64 crore has been pegged to third party damage repair including loss of product
8A fund of Rs 45 crore has been kept aside for extension of casing pipe due to widening of highways Details
GAIL has claimed that it will not be able to reach a capacity utilization of 16 mmscmd -- which is the load of the Dabhol-Bangalore pipeline -- well into the future.
8Of the 16 mmscmd, 4 mmscd if on a common carrier basis.
8The pipeline capacity use is going to be 9.56 mmscmd in 2014-15 and going up to 11.92 mmscmd in 2017-18. The capacity of 12 mmscmd is to be scaled from 2019-20 onwards.
8Meanwhile, GAIL is now claiming that the Mangalore connectivity through the Kochi Mangalore Bangalore pipeline has run into trouble because the pipeline has been stymied by local agitations.
8As a consequence, Mangalore is sought to be connected to the Dabhol-Bangalore pipeline from Harihar, and the capex for this has been pegged at Rs 1211 crore.
8GAIL wants the connection to Mangalore to be dubbed as a spur line but PNGRB is of the view that the line is beyond the limits of the tariff zone and the admissible tariff will be the applicable tariff from the zone where the tap-off of the spur line is taken.
8A spur line connectivity will be given from DBPL to Hindupur too at a cost of Rs 112 crore. Miscellaneous last mile connectivity is being sought to be given from DBPL for a cost of Rs 195 crore. Details
8Of the 16 mmscmd, 4 mmscd if on a common carrier basis.
8The pipeline capacity use is going to be 9.56 mmscmd in 2014-15 and going up to 11.92 mmscmd in 2017-18. The capacity of 12 mmscmd is to be scaled from 2019-20 onwards.
8Meanwhile, GAIL is now claiming that the Mangalore connectivity through the Kochi Mangalore Bangalore pipeline has run into trouble because the pipeline has been stymied by local agitations.
8As a consequence, Mangalore is sought to be connected to the Dabhol-Bangalore pipeline from Harihar, and the capex for this has been pegged at Rs 1211 crore.
8GAIL wants the connection to Mangalore to be dubbed as a spur line but PNGRB is of the view that the line is beyond the limits of the tariff zone and the admissible tariff will be the applicable tariff from the zone where the tap-off of the spur line is taken.
8A spur line connectivity will be given from DBPL to Hindupur too at a cost of Rs 112 crore. Miscellaneous last mile connectivity is being sought to be given from DBPL for a cost of Rs 195 crore. Details
PNGRB has found that GAIL has made two tariff submissions within a period of two months and the two sets of figures do not match.
8The tariff filling done on February 2,.2015 shows that the tariffs from the year 2012-13 up to 2013-14 had been charged at Rs.44.63 for Zone1, Rs.44.66 for Zone 2, Rs.44.67 for Zone 3 (all in per MMBTU basis).
8And, tariff rates from the year 2014-15-upto 2037-38 was set as Rs.73.48 for Zone 1, Rs.73.56 for Zone 2, Rs.73.56 for Zone 3.
8Whereas the tariff rates provided two months later were same for all zones but the date of applicability of the zonal tariffs between two submissions differs.
8The rate of applicability from FY 2012-13 upto 2013-14 was changed to FY 2012-13 upto 2014-15 and also the date of applicability for FY 2014-15 upto 2037-38 was changed to FY 2015-16 upto 2037-38.
8In addition to that, GAIL has not submitted the levelized tariff rate in its later submission
8Moreover GAIL in its submission has also not made it clear whether it is based on GCV (Gross Calorific Value) or NCV (Net Calorific Value) basis
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8The tariff filling done on February 2,.2015 shows that the tariffs from the year 2012-13 up to 2013-14 had been charged at Rs.44.63 for Zone1, Rs.44.66 for Zone 2, Rs.44.67 for Zone 3 (all in per MMBTU basis).
8And, tariff rates from the year 2014-15-upto 2037-38 was set as Rs.73.48 for Zone 1, Rs.73.56 for Zone 2, Rs.73.56 for Zone 3.
8Whereas the tariff rates provided two months later were same for all zones but the date of applicability of the zonal tariffs between two submissions differs.
8The rate of applicability from FY 2012-13 upto 2013-14 was changed to FY 2012-13 upto 2014-15 and also the date of applicability for FY 2014-15 upto 2037-38 was changed to FY 2015-16 upto 2037-38.
8In addition to that, GAIL has not submitted the levelized tariff rate in its later submission
8Moreover GAIL in its submission has also not made it clear whether it is based on GCV (Gross Calorific Value) or NCV (Net Calorific Value) basis
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GAIL has reportedly misrepresented the cost data for the Dabhol-Bangalore gas pipeline in order to elicit a higher tariff rate from the PNGRB
8The regulator found that GAIL has tempered with the cost data, changing the figures at its own liking and then also delaying providing clarifications as sought by the PNGRB. The charge seems to be that the gas major is refusing to divulge the true picture.
8 The difference between what PNGRB thought was the real tariff and what GAIL wanted is very wide indeed. The regulator had to cut the tariff rate down to Rs 44. 65 per MMBTU as against a demand for Rs.73.49
8Considering the total length of the network as 1414 Kms the tariff has been zonalized
8Usually, the regulator fixes an interim tariff and then enforces a final tariff subsequently.
Of the 16 mmscmd capacity of the pipeline, around 4 mmscmd is fixed on a common carrier basis.
8Inconsistencies have been found between tariff submissions made at the time of the fixing of the interim tariff and submissions made to fix the final tariff.
8The regulator has now sought comments from stakeholders on the fresh filings made by GAIL before a final tariff order is taken out.
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8The regulator found that GAIL has tempered with the cost data, changing the figures at its own liking and then also delaying providing clarifications as sought by the PNGRB. The charge seems to be that the gas major is refusing to divulge the true picture.
8 The difference between what PNGRB thought was the real tariff and what GAIL wanted is very wide indeed. The regulator had to cut the tariff rate down to Rs 44. 65 per MMBTU as against a demand for Rs.73.49
8Considering the total length of the network as 1414 Kms the tariff has been zonalized
8Usually, the regulator fixes an interim tariff and then enforces a final tariff subsequently.
Of the 16 mmscmd capacity of the pipeline, around 4 mmscmd is fixed on a common carrier basis.
8Inconsistencies have been found between tariff submissions made at the time of the fixing of the interim tariff and submissions made to fix the final tariff.
8The regulator has now sought comments from stakeholders on the fresh filings made by GAIL before a final tariff order is taken out.
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The consultant is required to perform a detailed study of the midstream and downstream sectors.
The benchmarking exercise will include:
-- Study of performance of Indian midstream and downstream oil and gas industry ( Both public and private).
-- Analysis of previous year's achievement with reference to key performance indicators.
-- To suggest the benchmarks and realistic values which can be achieved by the midstream and downstream sector under MOUs signed.
-- Identification of common key performance indicators used by both national as well as international midstream and downstream industry (including those prescribed by ministry of petroleum and Centre for High Technology).
Details
The benchmarking exercise will include:
-- Study of performance of Indian midstream and downstream oil and gas industry ( Both public and private).
-- Analysis of previous year's achievement with reference to key performance indicators.
-- To suggest the benchmarks and realistic values which can be achieved by the midstream and downstream sector under MOUs signed.
-- Identification of common key performance indicators used by both national as well as international midstream and downstream industry (including those prescribed by ministry of petroleum and Centre for High Technology).
Details
Subsequent to directions from the Prime Minister's Office, PLL has begun looking at innovative ways to integrate along the LNG value chain.
8It is seen that a significant amount of energy is spent at the Natural Gas liquefaction plants for converting natural gas into LNG by the LNG producing countries. There is therefore a potential for recovery of such energy at LNG re-gasification terminals.
8Pre-project activities have already begun on setting up an Air Separation Unit (ASU) to produce liquid gases such as liquid nitrogen, liquid oxygen and liquid argon.
8An ASU integrated with an LNG re-gasification terminal consumes 50% less energy vis-à-vis a stand- alone ASU.
8Another possibility of utilizing the "cold energy" is by setting up cryogenic ware houses for refrigerated storage of various products.
8Meanwhile PLL has prepared a Detailed Feasibility Report for setting up a satellite LNG regasification terminal, along with a power generation plant, at Port Blair.
8The facility will also have provision to supply regasified LNG for city gas distribution and industrial ancillary units. It will sign a Memorandum of Understanding with Government of Andaman & Nicobar for a joint venture for a power plant.
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8It is seen that a significant amount of energy is spent at the Natural Gas liquefaction plants for converting natural gas into LNG by the LNG producing countries. There is therefore a potential for recovery of such energy at LNG re-gasification terminals.
8Pre-project activities have already begun on setting up an Air Separation Unit (ASU) to produce liquid gases such as liquid nitrogen, liquid oxygen and liquid argon.
8An ASU integrated with an LNG re-gasification terminal consumes 50% less energy vis-à-vis a stand- alone ASU.
8Another possibility of utilizing the "cold energy" is by setting up cryogenic ware houses for refrigerated storage of various products.
8Meanwhile PLL has prepared a Detailed Feasibility Report for setting up a satellite LNG regasification terminal, along with a power generation plant, at Port Blair.
8The facility will also have provision to supply regasified LNG for city gas distribution and industrial ancillary units. It will sign a Memorandum of Understanding with Government of Andaman & Nicobar for a joint venture for a power plant.
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PLL has taken a decision, following enabling RBI guidelines, to raise the limit of FII shareholding in the Rs 750 crore share capital of the company from 24% to 30%.
8Of the present share capital, 50% is being held by our four promoters i.e. GAIL, IOCL, BPCL and ONGC and 10% is being held by FII and rest 40% is being held by public including FIIs.
8PLL was able to berth a Q-Max vessel, the largest in the world today. It can carry upto 260,000 cubic meters of LNG which is almost double of the conventional cargo size. Prior to this, the Dahej terminal had been regularly receiving the Q-Flex cargos carrying 210,000 cubic meters of LNG.
8In light of the failing gas market and falling prices, PLL still has not made up its mind on setting up a third LNG terminal at Gangavaram. The business model is being revalidated. Primary market assessment has been carried out. Discussions on pipeline connectivity with the pipeline owners have continued. Apparently, many international LNG suppliers have shown interest to participate in this project. But PLL Is still looking at a robust commercial structure. Internally, the company is bullish on the demand potential of that region and believes that it is best suited to set up the terminal and serve the consumers in that region.
8Meanwhile, Construction of a ship to carry LNG from Australia under a long-term agreement is in progress. The builder are MOL NYK, K-Line and Shipping Corporation of India (SCI) will own this ship. PLL has right to subscribe upto 26% equity in this LNG ship. The ship will be delivered to PLL in November 2016 and will be used primarily to transport LNG from Gorgon Australia to Kochi. But then again even the term contract, like with Qatar, may have to be renegotiated because of the falling price of gas. This will be yet another headache for PLL.
8Plans are also afoot to fora further expansion of Dahej terminal to 17.50 MMTPA and the company claims to be in the process of finalising a business model for it. In the meanwhile, a DFR has been prepared and Front End Engineering design is under progress. Details
8Of the present share capital, 50% is being held by our four promoters i.e. GAIL, IOCL, BPCL and ONGC and 10% is being held by FII and rest 40% is being held by public including FIIs.
8PLL was able to berth a Q-Max vessel, the largest in the world today. It can carry upto 260,000 cubic meters of LNG which is almost double of the conventional cargo size. Prior to this, the Dahej terminal had been regularly receiving the Q-Flex cargos carrying 210,000 cubic meters of LNG.
8In light of the failing gas market and falling prices, PLL still has not made up its mind on setting up a third LNG terminal at Gangavaram. The business model is being revalidated. Primary market assessment has been carried out. Discussions on pipeline connectivity with the pipeline owners have continued. Apparently, many international LNG suppliers have shown interest to participate in this project. But PLL Is still looking at a robust commercial structure. Internally, the company is bullish on the demand potential of that region and believes that it is best suited to set up the terminal and serve the consumers in that region.
8Meanwhile, Construction of a ship to carry LNG from Australia under a long-term agreement is in progress. The builder are MOL NYK, K-Line and Shipping Corporation of India (SCI) will own this ship. PLL has right to subscribe upto 26% equity in this LNG ship. The ship will be delivered to PLL in November 2016 and will be used primarily to transport LNG from Gorgon Australia to Kochi. But then again even the term contract, like with Qatar, may have to be renegotiated because of the falling price of gas. This will be yet another headache for PLL.
8Plans are also afoot to fora further expansion of Dahej terminal to 17.50 MMTPA and the company claims to be in the process of finalising a business model for it. In the meanwhile, a DFR has been prepared and Front End Engineering design is under progress. Details
Low capacity utilization in the Kochi refinery has driven PLL to offer what it terms as "innovative solutions" to international LNG players out the terminal.
8What PLL has been doing is to offer new value added activities relating to unloading and subsequent and re-exporting of the LNG.
8It has down what it termed as "cooling down, gassing up and bunkering of fuel".
8Only four cargoes were unloaded during 2014-15.
8And of these four, two were re-exported.
8As part of providing more value added activities, Kochi terminal also successfully provided LNG as bunker to a small vessel. More such bunkering work is likely until capacity utilization at the terminal picks up.
8Kochi terminal continued to operate at low loads due to lack of evacuation pipelines with no substantial progress in Phase II pipelines work.
8There are very few customers being serviced as of now with Phase I of the pipeline
network, limited to only about 45 Kms. Until Phase II segment of the pipeline is completed, the terminal capacity will continue to be grossly underutilized.
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8What PLL has been doing is to offer new value added activities relating to unloading and subsequent and re-exporting of the LNG.
8It has down what it termed as "cooling down, gassing up and bunkering of fuel".
8Only four cargoes were unloaded during 2014-15.
8And of these four, two were re-exported.
8As part of providing more value added activities, Kochi terminal also successfully provided LNG as bunker to a small vessel. More such bunkering work is likely until capacity utilization at the terminal picks up.
8Kochi terminal continued to operate at low loads due to lack of evacuation pipelines with no substantial progress in Phase II pipelines work.
8There are very few customers being serviced as of now with Phase I of the pipeline
network, limited to only about 45 Kms. Until Phase II segment of the pipeline is completed, the terminal capacity will continue to be grossly underutilized.
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Each interim report of the consultant will be reviewed by the Consultancy Review Committee constituted by the Department of Public Enterprises (DPE).
8The consultant will be required to make presentations on the draft reports before DPE and incorporate their suggestions in the final report.
8There will be a penalty of 0.5% of total value of work awarded for every week of delay in non- achieving the milestones of the work order unless such delay is duly approved by the DPE.
8In case of non-submission of final report beyond a point, the consultant has to refund the entire amount released by this department together with an interest of 15%.
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8The consultant will be required to make presentations on the draft reports before DPE and incorporate their suggestions in the final report.
8There will be a penalty of 0.5% of total value of work awarded for every week of delay in non- achieving the milestones of the work order unless such delay is duly approved by the DPE.
8In case of non-submission of final report beyond a point, the consultant has to refund the entire amount released by this department together with an interest of 15%.
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The government plans to hire international consultants for a benchmarking efficiency parameters in the mid-stream and downstream oil and gas sector.
8The idea seems to be to incorporate update and incorporate these parameters in the MOUs signed by the government with the oil conmpanies.
8The parameters will be set high, and the PSUs will be graded in terms of their ability to achieve these targets.
8The objective of the RFP is to solicit proposals from interested agencies, companies or institutes for conducting the study in the midstream and downstream oil and gas sector and subsequently recommend appropriate benchmarks for inclusion in the MoU 2016-17.
8It mainly involves identification of national and international benchmarks to improve the productivity, profitability, operational efficiency and also the future growth prospects of the sector.
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8The idea seems to be to incorporate update and incorporate these parameters in the MOUs signed by the government with the oil conmpanies.
8The parameters will be set high, and the PSUs will be graded in terms of their ability to achieve these targets.
8The objective of the RFP is to solicit proposals from interested agencies, companies or institutes for conducting the study in the midstream and downstream oil and gas sector and subsequently recommend appropriate benchmarks for inclusion in the MoU 2016-17.
8It mainly involves identification of national and international benchmarks to improve the productivity, profitability, operational efficiency and also the future growth prospects of the sector.
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Two ONGC projects held up because of lack of environment clearance.
8Jharia CBM block: The gas major is seeking extension of its TOR as it is going to expire on 09 th September, 2015.
8The extension is required as the compliance certificate of previous environmental clearance is yet to be obtained from the regional MoEF office in Ranchi which has delayed the project timeline.
8ONGC has also completed the public hearing for the Jharia CBM Block on 31.08.2015 and 04.09.2015 for Bokaro and Dhanbad districts respectively.
8Hence in view of above circumstances it is requested for the extension of TOR further by one year.
8Jorhat AAONN 2009/3 block: ONGC's plan to conduct three exploratory drilling wells in this block has been delayed again.
8Due to the delay in organizing public hearing by pollution control board of Assam the gas major has again requested the ministry to extend the TOR date by one year from 12.07.2015.
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8Jharia CBM block: The gas major is seeking extension of its TOR as it is going to expire on 09 th September, 2015.
8The extension is required as the compliance certificate of previous environmental clearance is yet to be obtained from the regional MoEF office in Ranchi which has delayed the project timeline.
8ONGC has also completed the public hearing for the Jharia CBM Block on 31.08.2015 and 04.09.2015 for Bokaro and Dhanbad districts respectively.
8Hence in view of above circumstances it is requested for the extension of TOR further by one year.
8Jorhat AAONN 2009/3 block: ONGC's plan to conduct three exploratory drilling wells in this block has been delayed again.
8Due to the delay in organizing public hearing by pollution control board of Assam the gas major has again requested the ministry to extend the TOR date by one year from 12.07.2015.
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The latest 3D tender floated by ONGC for the KG Basin saw Alpha Geo emerge as the lowest bidder at Rs 242 crore.
8The next in line was Advent OFS at Rs 245 crore
8There was big difference in bid rate of the third bidder, IOTL at Rs 340 crore.
8The other bidder was GT Geophysics, whose bid price was tagged at Rs 600 crore.
8Clearly, the lowest bidders have pushed the price down dramatically.
8Future bidders are now likely to look at the data processing tender that is now likely to come up. The usual cost for data processing is $500 per line km for 2D processing and $2000 per square km for 3D processing. Details
8The next in line was Advent OFS at Rs 245 crore
8There was big difference in bid rate of the third bidder, IOTL at Rs 340 crore.
8The other bidder was GT Geophysics, whose bid price was tagged at Rs 600 crore.
8Clearly, the lowest bidders have pushed the price down dramatically.
8Future bidders are now likely to look at the data processing tender that is now likely to come up. The usual cost for data processing is $500 per line km for 2D processing and $2000 per square km for 3D processing. Details
In what is arguably going to be one of the largest onland 2D seismic campaigns currently being undertaken in the world. ONGC and OIL India between them have floated tenders for 48,000 LKM of surveys to be conducted over the next few years.
8It looks like the two companies, particularly ONGC, is trying to conduct surveys in several unexplored parts of the Indian sub-continent in the search for elusive signs of hydrocarbon deposits.
8ONGC's survey will cover 11 sectors across the country.
8The OIL tender which is currently under processing covers previously untouched areas in the north bank of the Brahmaputra river.
Click on Details for details on the shortlisted parties and the likely bidders for the ongoing ONGC tender. Also find out which are the companies likely to grab the massive ONGC tender. Details
8It looks like the two companies, particularly ONGC, is trying to conduct surveys in several unexplored parts of the Indian sub-continent in the search for elusive signs of hydrocarbon deposits.
8ONGC's survey will cover 11 sectors across the country.
8The OIL tender which is currently under processing covers previously untouched areas in the north bank of the Brahmaputra river.
Click on Details for details on the shortlisted parties and the likely bidders for the ongoing ONGC tender. Also find out which are the companies likely to grab the massive ONGC tender. Details
Refineries are now taking Narendra Modi's Made in India campaign seriously.
8IOC's Gujarat refinery has called a vendor meet on bringing down the import content of equipment used in the refinery.
8A product catalogue has been drawn up.
8And quality standards have been specified too.
8A total of 84 items are included in the list of imported items in which Gujarat refinery is seeking indigenization.
8Interested manufacturers are requested to go through the list of imported items and furnish their comments.
8Will there be a price advantage that will follow in the tendering process? If so how much will be the advantage?
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8IOC's Gujarat refinery has called a vendor meet on bringing down the import content of equipment used in the refinery.
8A product catalogue has been drawn up.
8And quality standards have been specified too.
8A total of 84 items are included in the list of imported items in which Gujarat refinery is seeking indigenization.
8Interested manufacturers are requested to go through the list of imported items and furnish their comments.
8Will there be a price advantage that will follow in the tendering process? If so how much will be the advantage?
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A whole range of items are being sought to be indegenised by Gujarat refinery and IOC.
The list includes:
8Burners
8Seals & Spares
8Pumps & Spares
8Filters
8Valves
8Blowers
8Gas Turbine Spares
8Bearings
8Agitators Spares
8A range of testing equipment
Comment: It is a good attempt at indigenization. But the point is will there be a price advantage for domestic content? And then again, indigenization requires economies of scale and market, especially for high technology items. Can just the Indian public sector refineries generate the scale for an indigenous manufacturer to break even?
Click on the reports section to get full details of the items. Details
The list includes:
8Burners
8Seals & Spares
8Pumps & Spares
8Filters
8Valves
8Blowers
8Gas Turbine Spares
8Bearings
8Agitators Spares
8A range of testing equipment
Comment: It is a good attempt at indigenization. But the point is will there be a price advantage for domestic content? And then again, indigenization requires economies of scale and market, especially for high technology items. Can just the Indian public sector refineries generate the scale for an indigenous manufacturer to break even?
Click on the reports section to get full details of the items. Details
Given the massive size of the 2D tender, there will be huge demand for services associated with the conduct of such surveys.
Among the services which will be required are:
8Topographical surveys
8Shot hole drilling
8Cable laying and lifting
8LVL and Uphole recording
8Transport and logitics
8Blasting
8Explosives and Security
8The problem however is that local Indian parties who are likely to get these contracts are bad paymasters. They will all have to depend on third party contractors to do the job but payments are bad. There is likely to be a huge shortage of shothole drilling equipment and crew but investment in setting up the facilities are not taking place because third party contracts have not worked out well in the past.
Click on Details for more on likely business opportunities that entrepreneurs can look for in the next few years in the seismic survey arena Details
Among the services which will be required are:
8Topographical surveys
8Shot hole drilling
8Cable laying and lifting
8LVL and Uphole recording
8Transport and logitics
8Blasting
8Explosives and Security
8The problem however is that local Indian parties who are likely to get these contracts are bad paymasters. They will all have to depend on third party contractors to do the job but payments are bad. There is likely to be a huge shortage of shothole drilling equipment and crew but investment in setting up the facilities are not taking place because third party contracts have not worked out well in the past.
Click on Details for more on likely business opportunities that entrepreneurs can look for in the next few years in the seismic survey arena Details
The current Storage facility of the plant is 450 MTs is designed for a 12-station manual filling operation but subsequent to a revamp, the facility has been upgraded to a 24-station fully electronic filling machine while the production capacity has gone up to 170 MTs in a day.
8At present the LPG plant is serving 8.5 Lakh customers in 14 revenue districts of Tamilnadu and Pondicherry through a LPG distributorship network
8Water consumption for the proposed expansion remains same as 10 KL per day and power requirement is 240 KVA.
8The list of equipments as of now in the plant is:
--LPG pumps 2 X 27 M3/HR
--LPG compressor 2 X 65 CFM
--Air compressor 2 X 250 CFM + 1 X 180 CFM
--Air dryer 2 nos.
--Fire fighting pumps 3 X 615 CUM / HOUR-HEAD 105 M
--Jockey pumps 2 X 10 CUM / HOUR-HEAD 88 M
--Fire water tanks 2 X 2733 KL CAP
--High mast tower 1 NO
--Tank lorry unloading 6 BAY TLD.
--Captive power1 X 250 KVA & 1 X 125 KVA & 1X 380 K.
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8At present the LPG plant is serving 8.5 Lakh customers in 14 revenue districts of Tamilnadu and Pondicherry through a LPG distributorship network
8Water consumption for the proposed expansion remains same as 10 KL per day and power requirement is 240 KVA.
8The list of equipments as of now in the plant is:
--LPG pumps 2 X 27 M3/HR
--LPG compressor 2 X 65 CFM
--Air compressor 2 X 250 CFM + 1 X 180 CFM
--Air dryer 2 nos.
--Fire fighting pumps 3 X 615 CUM / HOUR-HEAD 105 M
--Jockey pumps 2 X 10 CUM / HOUR-HEAD 88 M
--Fire water tanks 2 X 2733 KL CAP
--High mast tower 1 NO
--Tank lorry unloading 6 BAY TLD.
--Captive power1 X 250 KVA & 1 X 125 KVA & 1X 380 K.
Click on Report section for more details. Details
The company plans to increase the existing storage capacity in the Thanjavur bottling plant by introducing a mounded storage vessel (MSV) of 600 MT capacity within the site.
8The bottling plant stores and fills LPG into 14.2kg, 19kg, 35 Kg, 47.5kg & 5kg cylinders.
8The proposed project will cost 17.50 crore
8The capacity is sought to be raised as the Rhanjavu unit has the lowest bottling capacity in all of BPCL's southern region plants.
8LPG from Tuticorin or KRL, Kochi and CBDU, Narimanam will be received through bullet trucks and stored in above ground LPG bullets with a capacity 3 x 150 MTs. LPG will be pumped from storage bullets to the filling shed where cylinders will be filled prior to dispatch by road.
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8The bottling plant stores and fills LPG into 14.2kg, 19kg, 35 Kg, 47.5kg & 5kg cylinders.
8The proposed project will cost 17.50 crore
8The capacity is sought to be raised as the Rhanjavu unit has the lowest bottling capacity in all of BPCL's southern region plants.
8LPG from Tuticorin or KRL, Kochi and CBDU, Narimanam will be received through bullet trucks and stored in above ground LPG bullets with a capacity 3 x 150 MTs. LPG will be pumped from storage bullets to the filling shed where cylinders will be filled prior to dispatch by road.
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