Traders spot opportunity as LNG price dips to record low

Source: LiveMint.com, Aug 23, 2019

It’s bargain time in the liquefied natural gas (LNG) market. After prices plunged to their lowest on record for this time of year, traders say buyers from Japan to India have started to snap up cargoes in anticipation of a pickup in winter demand.

Procurement for the colder season is only expected to intensify over what’s left of the summer.

“We have likely reached bottom,” Sanford C. Bernstein & Co. analysts, including Neil Beveridge, said in a report. Read the rest of this entry »

Reliance Industries’ $4-bn investment threatened by global natural gas glut

Source: Business Standard, Aug 21, 2019

A global glut in natural gas is threatening to undermine a $4 billion investment by Reliance Industries Ltd aimed at boosting profits at the world’s largest oil refining complex.

The project made all the sense in the world when energy magnate Mukesh Ambani’s conglomerate announced it in 2012: convert petroleum coke, or petcoke, one of the cheapest and dirtiest refinery by-products, into gas needed to power the massive Jamnagar complex on India’s west coast. Then it hit about three years of delays, and global gas markets crashed amid a growing supplies of liquefied cargoes from the US, Australia and Russia.

The 10 synthetic gasifiers that make up the project are now finally commissioned. But the imported LNG they’re meant to displace has fallen from about $15 per million British thermal units in 2012 to less than $5. Read the rest of this entry »

Centre increases oil and gas bidding round to three times a year

Source: Business Standard, Aug 18, 2019

New Delhi: Delays in bidding rounds notwithstanding, the government has increased the expression of interest (EoI) submission cycle for oil and gas acreage to three times a year from two times earlier, the Directorate General of Hydrocarbons (DGH) said.

India had in July 2017, allowed companies to carve out blocks of their choice with a view to bring about 2.8 million sq km of unexplored area in the country under exploration.

Under this policy, called open acreage licensing policy or OALP, companies are allowed to put in an EoI for prospecting of oil and gas in any area that is presently not under any production or exploration licence.

The EoIs can be put in at any time of the year and were accumulated twice annually. But now, this cycle has been increased to three. Read the rest of this entry »

India leads world in growth of energy sector investments between 2015-18

Source: Business Standard, Aug 17, 2019

Bhubaneswar: Growth in energy sector investments was the most pronounced in India compared to any other region in the world between 2015 and 2018.

Data compiled by the International Energy Agency (IEA) showed that India’s energy sector investments expanded by 12 per cent in calendar 2018 alone. During 2015-2018, investments flowing into the country’s energy sector are estimated to have grown by seven per cent CAGR (compounded annual growth rate). Investments, including private foreign capital, poured into areas like coal supply, oil & gas, energy efficiency, renewable power, electricity networks, thermal power and renewables for transport or heat.

In terms of volumes of energy-centric investments, India ranked fourth – behind China, United States (US) and Europe but raced ahead of South East Asia and sub-Saharan Africa regions. India is the outlier since energy sector investments in rest of the geographies have either stagnated or decelerated. Read the rest of this entry »

Adanis plan Rs 1,200-cr spend to upgrade Mumbai network

Source: IBEF.org, Aug 13, 2019

Adani Transmission plans to spend amount around Rs 4,000 crore (US$ 556 million) on capital expenditure in FY20, of which about Rs 1,200 crore (US$ 166.8 million) has been reserved for power distribution infrastructure in Mumbai, that the company had acquired.

This investment is important in power business and is crucial for Mumbai as the city hasn’t received many investments in past years. This investment will end the four-year long drought period and is three times what was spent earlier.

The company, which is the transmission business arm of the Adani Group, ventured into power distribution business by acquiring the Mumbai electricity distribution business from Reliance Infrastructure in 2018. Read the rest of this entry »

How Mukesh Ambani-led world’s biggest refinery is bracing for an EV future

Source: Business Standard, Aug 11, 2019

New Delhi: Billionaire Mukesh Ambani’s Reliance Industries Ltd plans to produce only jet fuel and petrochemicals at its mega Jamnagar refinery complex as it implements an oil-to-chemical strategy that will eliminate most fuels it produces in favour of high value products.

The company is preparing its Jamnagar complex, the world’s largest refinery at a single location, to be future ready as fuel demand undergoes change with advent of electric vehicles.

“Jamnagar shall be the refinery icon of the world with best-in-class performance,” the company said in its latest annual report outlining its vision. Read the rest of this entry »

Govt set to ease rules for entry into fuel retail after two decades: Report

Source: Business Standard, Aug 07, 2019

New Delhi: The government is set to relax rules for setting up fuel stations after almost two decades, in a move expected to allow companies like Saudi Aramco, Total and Trafigura to gain a foothold in a sector dominated by state-run entities.

The new rules – suggested by an expert panel – mirror those in developed nations like the United States and Britain, and would allow convenience stores, shopping malls and hypermarkets to sell fuels if they are eligible, said an oil ministry source.

The government panel has recommended allowing marketing rights for sale of gasoil, gasoline and aviation fuel to companies with a net worth of Rs 250 crore. Read the rest of this entry »