Gujarat to be 1st state with 100% piped gas network, India to see 25% coverage

download (3).jpgSource: Business Standard, Jun 14, 2018

Gandhinagar: Gujarat will become the first Indian state to get completely covered under the piped gas distribution network after the ninth round of bidding, which will see a quarter of the country brought under the network.

The western Indian state already has 84.31 per cent of its area under the city gas distribution (CGD) network, and will see the remaining area covered after the ninth round of bidding which opened last month, Petroleum and Natural Gas Regulatory Board Chairperson D K Sarraf said here today.

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India might hold world’s second largest gas hydrate reserves

Source: Business Standard, Jun 05, 2018

New Delhi: When petroleum minister Dharmendra Pradhan recently said India might well have hydrocarbon reserves to serve the country for 300 years, it raised many eyebrows.

However, according to the latest estimates of the US Geological Survey, we have the second largest gas hydrate reserves after America. The Krishna-Godavari (KG), Cauvery and Kerala basins alone contributing 100-130 trillion cubic feet of estimated reserves.

In a meeting on the National Gas Hydrate Programme (NGHP) last month, the recent estimates were discussed. The government has given a nod to the third stage of the ambitious programme. “We have firmed up plans for NGHP-3. The pilot testing is planned in the KG Deepwater. We have also set up a dedicated gas hydrate research centre at Panvel (Navi Mumbai),” Oil and Natural Gas Corporation (ONGC) chairman Shashi Shankar told the media last week.

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Gas trading hub likely to be set up before year-end

Source: The Hindu Business Line, May 29, 2018

Hyderabad: A natural gas trading hub, on the lines of energy exchange, is likely to be set up in India before the end of the year.

According to Satpal Garg, Member, Petroleum and Natural Gas Regulatory Board, services of Crisil have been enlisted to work out the modalities for making this a reality.

Speaking on the sidelines of introducing the 9th City Gas Distribution Bidding Round, here, Garg said, “The thinking behind setting up such as hub is to create an Indian benchmark, ensure fair pricing and encourage the use of natural gas. The consultant will facilitate in development of a regulatory framework for operating the gas trading hub.” Read the rest of this entry »

At $76.43 a barrel, Indian basket of crude oil rises highest since Dec 2014

Source: Business Standard, May 17, 2018

New Delhi: On a day when the Indian basket of crude oil touched its three-and-a-half year high of $76.31 a barrel, the International Energy Agency (IEA) said in a report that following a growth of 125 kilo barrels per day in 2017, India will see an acceleration in oil demand to 300 kb/d in 2018. This is despite a drop in global demand for oil.

On Wednesday, the Indian basket price touched its highest point since December 1, 2014, when it was seen at $76.43 a barrel. However, since the rupee value against dollar is much depreciated since then, the impact on India’s trade balance would be higher. The rupee is at 67.53 a dollar currently against Rs 61.80 on December 1, 2014.

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Govt seeks Aramco, Adnoc backing for $44 billion oil refinery

Source: Business Standard, May 14, 2018

Abu Dhabi: India, the world’s fastest-growing oil market, is targeting support from both Saudi Aramco and Abu Dhabi National Oil Co. for the Asian nation’s proposed $44 billion refinery, according to the Indian oil minister.

Aramco, known officially as Saudi Arabian Oil Co., signed a memorandum of understanding last month to join the proposed Ratnagiri refinery and possibly take a 50 percent stake in the project. Abu Dhabi’s government-run Adnoc may also acquire some of Aramco’s share, Minister Dharmendra Pradhan said.

“I am hopeful both Aramco and Adnoc will be our joint venture partner in the Ratnagiri refinery,” Pradhan said in a Bloomberg Television interview Sunday in Abu Dhabi. “This is a process.”

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Falling Re, rising crude reignite inflation fears

download (3)Source: The Hindu Business Line, May 07, 2018

New Delhi: The Narendra Modi government approaches its fourth anniversary on a distinctly inauspicious note, with crude oil prices touching a four-year high and the rupee sinking to below 67 to a dollar. This is likely to lead to higher inflation and a further hardening of interest rates.

The deepening economic crisis in Venezuela and suspense over the US decision regarding sanctions on Iran fuelled a rally in Brent crude oil futures on Monday. It opened at $75 a barrel and hit $75.95, its highest since November 2014. This movement will affect the price at which Indian refiners buy their crude.The Indian basket of crude oil represents a derived package, comprising Sour grade (Oman & Dubai average) and Sweet grade (Brent Dated) crude oil processed in Indian refineries in the ratio of 72.38:27.62.

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Government scraps plan to privatise oilfields

Source: The Economic Times, May 08, 2018

The government has shelved the plan to privatise several key ageing fields of ONGC and Oil India following strong opposition from the state-run companies and consultations between the oil ministry and the Prime Minister’s Office. The two companies will now draw up their own proposals to boost output from the fields.

download (2).jpgThe oil ministry drew up a detailed plan last year to sell up to 60% participating interest in 11 ageing fields of ONGC and four of Oil India to private companies under the so called Production Enhancement Contract (PEC) aimed at raising output. The plan also included another 44 older fields of ONGC and Oil India that could take on private technological partners under a process managed by the government.

ET was the first to report on May 31 last year that the government planned to privatise some of the ONGC and Oil India fields. Soon after the Directorate General of Hydrocarbons (DGH), the technical arm of the oil ministry, began circulating its draft policy paper on oilfield privatisation, ONGC launched a strong protest, triggering a pause among policymakers and exchanges between the oil ministry and the PMO.

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