ONGC plans $11 billion investment to boost gas production by 30%

images.pngSource: LiveMint.com, Apr 24, 2017

Mumbai: After more than a decade of nearly static output, state-run Oil and Natural Gas Corp. (ONGC) expects to increase gas production by nearly 30% over the next three-four years with an investment of around $11 billion, according to two senior company officials with knowledge of the matter.

The officials said ONGC will put its blocks in the Krishna Godavari basin (KG-DWN-98/2) and Ratna and R-Series oilfields in Mumbai offshore into production by 2019. The coal bed methane (CBM) blocks in Jharkhand will begin production by 2020, while the Daman offshore fields, which have been pressed into production this month, will be ramped up next year.

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UAE to invite Indian cos for upstream oil and gas investments in Abu Dhabi

Source: The Economic Times, Jan 27, 2017

NEW DELHI: Opec member United Arab Emirates will invite Indian firms for upstream oil and gas ainvestments, giving the energy-deficient country a rare chance to be involved in the hydrocarbon sector of the oil-rich region that accounts for most of its energy imports.

Abu Dhabi National Oil Co (Adnoc) chief executive Sultan Ahmed Al Jaber said the strategic partnership with India had taken a significant step with the deal to store crude oil in India’s strategic reserves, and a lot more was in the offing, including his company’s investment in new and existing refineries and petrochemical plants. Read the rest of this entry »

Indian Oil to lay India’s longest LPG pipeline

Source: The Economic Times, Oct. 12, 2016

NEW DELHI: State-owned Indian Oil Corp (IOC) plans to lay the nation’s longest LPG pipeline from Gujarat coast to Gorakhpur in eastern Uttar Pradesh to cater to growing demand for cooking gas in the country.

IOC plans to import LPG at Kandla in Gujarat and move it through the 1,987 kilometer pipeline to Gorakhpur via Ahmedabad (in Gujarat), Ujjain, Bhopal (in Madhya Pradesh), Kanpur, Allahabad, Varanasi and Lucknow (in Uttar Pradesh). Read the rest of this entry »

Centre, Maharashtra agree on mega refinery in Konkan region

Source: Business Standard, Oct. 04, 2016

Mumbai: The Centre and the Maharashtra government have arrived at a consensus on the development of a mega refinery and petrochemical complex in the Konkan region.

Chief Minister Devendra Fadnavis last week conveyed to Petroleum Minister Dharmendra Pradhan the state government’s desire to join the project. The ministry and the state government have zeroed in on Guhagar, in the coastal district of Ratnagiri, for the mega refinery. Read the rest of this entry »

LPG market gets ready for pvt oil firms

Source: Business Standard, Sept 01, 2016

Mumbai: With the central government restricting liquefied petroleum gas (LPG) subsidy to consumers earning less than Rs 10 lakh per annum, a ready-made market is now available for private oil companies. This, coupled with the lure of higher margins, is pushing them to aim for a larger pie of the cooking gas market in India.

India’s total LPG consumption rose from 18 million tonnes (mt) in 2014-2015 to 19.6 mt in 2015-2016, according to Petroleum Planning and Analysis Cell (PPAC) data. The three state-run oil marketing companies (OMCs) have 274,000 connections in the waiting list across the country, PPAC data show.

This shows that there is a huge market to tap.

Essar Oil and Reliance Industries are two private refiners vying for the LPG market in India. Mahesh Advani, head of direct sales at Essar Oil, says they have a potential market in the non-subsidised LPG customers and commercial users.The company is open to both subsidised and non-subsidised LPG distribution business in the country. Advani says a higher margin is the rationale for the company’s planned entry to this segment.

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Gail India to partner US firm for new gas power generation technology

Source: LiveMint.com, Aug 22, 2016

New Delhi: State-owned Gail (India) Ltd said on Saturday it will tie up with California-based closely-held firm Bloom Energy Corp. on Monday to pursue natural gas-based fuel cell power generation, a new technology.

Gail said an agreement will be signed with the company in the presence of oil minister Dharmendra Pradhan, Gail chairman and managing director B.C. Tripathi and Bloom Energy chief executive K.R. Sridhar.

“This will explore long-term natural gas market potential for power generation.” Gail said without giving further details, which are expected on Monday.

 An invitation from Bloom Energy said its fuel cell technology could help the country move away from relying on fixed power infrastructure which is prohibitively capital intensive to “capital light and soft” infrastructure.

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Oil and gas firms to invest Rs3 trillion to help build gas-based economy

Source: LiveMint.com, Aug 17, 2016

New Delhi: Oil and gas companies will invest about Rs.2.5-3 trillion in India over the next few years to produce around 10-15 trillion cubic feet of natural gas and help build a gas-based economy, said Sashi Mukundan, BP’s head of country, India.

Mukundan, who also chairs the hydrocarbon wing of the Confederation of Indian Industry, was speaking to reporters after sharing an industry road map with oil minister Dharmendra Pradhan. The road map is based partly on concrete investment commitments of individual companies and partly on projections, Mukundan said.

Private sector gas producers signalled their willingness to make fresh investments after the Union cabinet on 10 March approved a liberal pricing regime for natural gas produced in hard-to-reach areas. The proposed investments will help raise the share of gas in the country’s primary energy mix (comprising crude oil, gas and coal) from 6% now to about 15% by 2030, said Mukundan.

“The intent is to boost gas production by intensifying exploration, accelerating production from existing fields, enhancing hydrocarbon recovery and forging partnerships. If successful, it will generate investments of Rs.2.5-3 trillion in the upstream sector, revenues of Rs.2.5 trillion and replace almost Rs.10 trillion of imports,” said Mukundan.

Oil minister Pradhan had told Mint in an interview in March that greater use of gas—the cleanest among other primary fuels—will bring savings to the economy, and that more gas import terminals and pipeline network were being built.The industry plan presented to the minister on Tuesday proposes savings based on enhanced domestic production which will replace not just other primary fuels, but also imported liquefied natural gas (LNG). The idea is to increase consumption in power, fertilizer, city gas distribution sectors and in industry in general.

The current low price of natural gas in world markets has turned out to be a blessing in disguise to make fresh investments in the energy-starved country as procuring equipment and services for gas field development has become cheaper.

“A lot of the investments in existing oilfield assets were made 10-15 years ago, when oil price was at $20-30 a barrel,” said Mukundan, adding that there was a lot of demand for gas in the economy and that there certainly will be takers for the fuel.

After the cabinet prospectively adopted revenue sharing as the basis for allowing exploration licences and a liberal pricing formula for gas to be extracted from deep sea, both the Reliance Industries-BP-Niko Resources consortium and state-owned Oil and Natural Gas Corp., with assets in the Krishna Godavari basin, revived their investment plans.

The industry blueprint envisages creation of infrastructure to boost consumption of gas, especially in city gas distribution. According to Anish De, partner, infrastructure & government practice, KPMG in India, gas consumption in India is currently significantly below potential and makes up only 6.5% of India’s energy basket, down from 12% a few years ago.

“Infrastructure deficit is one of the key reasons holding back sector development. The creation of infrastructure will also aid market creation, which is essential for sector development,” said De.