Draft national energy policy proposes aligning energy prices with international rates

Source: The Economic Times, Nov 26, 2017

A draft national energy policy proposing aligning energy prices with international rates will be put up for the approval of the Cabinet. If approved, energy prices across sectors would become market-driven and subsides would be limited to identified beneficiaries via direct benefit transfer, much on the lines of the LPG subsidy.

In June, government think tank Niti Aayog released a draft National Energy Policy (NEP), on which it had been working since 2015. Prime Minister Narendra Modi had chaired interministerial consultations on the policy after the coal ministry expressed reservations over market-driven prices that would pose a threat to the monopoly and margins of Coal India.

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PowerGrid eyes projects worth Rs 1.6 lakh crore in electricity drive

Source: Business Standard, Nov 23, 2017

India’s largest transmission utility is shifting its focus to projects within states, where it expects a government plan to provide electricity to all to generate new orders worth Rs 1.6 lakh crore over the next five years.

Power Grid Corp Of India will seek to capture new orders either on its own or through joint ventures, Executive Director Anil Jain said. “Until now we have taken up all inter-state projects. Now we want to go ahead full steam on intra-state projects,” Jain said.

Provinces are increasing investments in their electricity grids and upgrading old transmission systems as they seek to supply round-the-clock electricity to households and industries as part of Prime Minister Narendra Modi’s plan. “Many states may not have the funds needed for upgrading their transmission systems and may want to go for a joint venture with Power Grid,” said Rupesh Sankhe, an analyst at Reliance Securities in Mumbai.

 

State oil firms planning aggressive push on natural gas as next big thing

Source: Business Standard, Nov 17, 2017

Mumbai/New Delhi: India’s state oil refiners are planning an aggressive push into natural gas in coming years to meet Prime Minister Narendra Modi’s goal of making the fuel a bigger part of the country’s energy mix.

State-owned oil companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum – are planning to raise gas contributions to between 5 and 15 percent of their incomes over the next few years, up from nearly none now, company executives said.This in line with a government target to raise the natural gas portion of India’s primary energy mix to 15 per cent by 2030, up from 6.5 percent now, to help meet climate targets and rein in rampant pollution.

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HOEC to produce oil from Mumbai field by 2021, invest $43 million

Source: Financial Express, Nov 14, 2017

Hindustan Oil Exploration Co Ltd (HOEC) has submitted a USD 43-million development plan to bring to production the Mumbai offshore oil field it had won in the first discovered field auction in March. HOEC is the first company out of the 31 that signed contracts for the fields won in the auction in March, to have submitted a field development plan (FDP). “We have submitted to the Directorate General of Hydrocarbon (DGH) an FDP for B-80 block that envisages production of 5,000 barrels of oil and 15 million standard cubic feet per day of gas by 2020-21,” HOEC CEO P Elango told PTI. The B-80 block, which lies in the vicinity of state-owned Oil and Natural Gas Corporation’s (ONGC) giant oil and gas fields in Mumbai offshore, is estimated to hold inplace reserves of 40 million barrels of oil and 26 billion cubic feet of gas. Elango said the plan envisages drilling two new offshore wells and installing a Mobile Offshore Process Unit (MOPU).

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Kuwait’s Al Arfaj group plans 600,000 bpd refinery, LNG terminal in India

Source: Business Standard, Oct. 24, 2017

New Delhi: Kuwait’s Al Arfaj Group plans to build a 600,000 barrels per day oil refinery and a 10 million tonnes a year liquefied natural gas (LNG) terminal in the Indian coastal state of Andhra Pradesh, the state’s Chief Minister said on Tuesday.

Al Arfaj Holding Co has signed a memorandum of understanding with Andhra’s Economic Development Board for the project, which also includes a petrochemical complex, N Chandrababu Naidu said.

India, which imports about 80 percent of its oil needs, aims to raise its refining capacity by 50 per cent in the next seven years to about 7 million barrels per day.

Earlier this month Saudi Aramco said it planned a ‘mega investment’ in refining, petrochemicals and fuel retailing in India.

Lens on foreign firms investing in power sector

Source: The Economic Times, Oct. 25, 2017

NEW DELHI: A high-level panel will look at possible checks on foreign firms investing in the Indian power sector, a move aimed at preventing cyberattacks on the electricity grid. This comes about two months after the eastern electricity grid suffered a malware attack, allegedly from China.

Overseas firms eyeing investments in power plants in the country may have to undergo security clearances and may be mandated to employ majority Indian nationals including at top managerial positions, a senior government official said. The restrictions are in line with India’s commitments to WTO, said the official, who did not wish to be identified. Read the rest of this entry »

India, Japan to join hands for LNG import

Source: Business Standard, Oct. 20, 2017

New Delhi: India and Japan on Wednesday agreed to explore joint cooperation in the areas of sourcing, swapping and optimisation of liquefied natural gas sources in the global market and commercial exploitation of methane hydrates.

In a bilateral meeting held in Tokyo on Wednesday, Petroleum Minister Dharmendra Pradhan and Hiroshige Seko, Minister of Economy, Trade, and Industry of Japan, signed a memorandum of cooperation on establishing a liquid, flexible and global LNG Market. India is the fourth largest importer of LNG in the world. Read the rest of this entry »