Cairn, ONGC, Essar benefit from pre-NELP contract extension
The Union Cabinet’s decision on Wednesday to grant extension to production sharing contracts for 10 blocks will benefit Cairn India Ltd (CIL), Oil and Natural Gas Corporation (ONGC), Essar Oil, Focus Energy, Hindustan Oil Exploration Company (HOEC), and Gujarat State Petroleum Corporation Ltd (GSPC). The contracts for these pre-NELP (New Exploration Licensing Policy) exploratory blocks will be extended for 10 years from the expiry of their contracts. The move, the government said, will help accelerate indigenous production of hydrocarbons from existing blocks and act as a progressive step towards achieving the target of 10 per cent reduction in import of crude oil by 2022. “There were about 28 pre-NELP exploratory blocks awarded to various operators. Out of that, 18 blocks were relinquished. The current policy for extension is applicable for 10 of the remaining blocks,” said an official source close to the development. According to government estimates, the operators are set to invest an additional $5,430 million in these blocks in the next 10 years. The government’s share of profit petroleum during the extended period of contract would be higher at 10 per cent for these fields. The current policy is for the 10 blocks, including Cairn India’s Barmer block, which were awarded prior to the advent of the NELP in 1999. The NELP was adopted to give a level-playing field for both public and private sector players in exploration and production (E&P), and was based on the production sharing contract (PSC) through sharing of revenues with the government after recovery of cost by the contractor. Till now, 256 blocks have been awarded to exploration companies in nine rounds of the NELP. India recently concluded its first round of discovered small and marginal fields (DSF) auctions, during which only 31 of the 46 contract areas on offer were awarded. Corey Liuget Authentic Jersey
NTPC Plans to Add 32 GW Capacity via Renewable Energy Resources by 2032, Piyush Goyal
India’s largest power generation company, National Thermal Power Corporation (NTPC) Limited plans to achieve 32 GW installed capacity through renewable energy resources by 2032, Union Minister of State (IC) for Power, Coal, Mines New & Renewable Energy and Mines, Piyush Goyal told the Lok Sabha on Thursday. Scaling yet another benchmark, NTPC’s total installed generation capacity touched a record 49,143 MW. The 12th plan capacity addition target of 11,920 MW has been exceeded by adding 12,040 MW the highest ever capacity addition in any 5 year plan by NTPC. Mr Goyal informed the Parliament in a written reply that NTPC Ltd. has raised Rs 2,000 crore through issuance of green masala bonds in overseas market under its USD 4 billion medium term note programme. The proceeds of these bonds will be used for financing renewable energy projects in accordance with applicable guidelines and regulations of Reserve Bank of India (RBI), the minister said. Germain Ifedi Womens Jersey
NTPC Achieves Highest Ever Single Day Generation of 870.11 MUs
NTPC and Group NTPC achieved highest ever daily generation of 784.74 MUs & 870.11 MUs on 22nd March 2017 surpassing previous best of 782.95MUs & 866.47MUs achieved on 9/9/16. NTPC coal stations clocked highest ever daily generation of 749.63 Mu on 22nd March 2017 over previous highest of 742.51 Mu in 2016. NTPC (Coal+ Gas +Hydro +Solar) achieved highest ever generation of 243.326 BUs on 22nd March 2017 in FY17 against previous best of 241.976 BUs achieved in FY 2016. The higher generation from coal based stations indicates uptrend in electricity demand in the grid. NTPC has total installed capacity of 48873 MW from its 19 coal based, 7 gas based, 10 solar PV, one Hydro and 9 Subsidiaries / Joint Venture power stations.Company has capacity of over 23,000 MW under implementation at 23 locations across the country including 4300 MW being undertaken by joint venture and subsidiary companies. NTPC’s First coal mine Pakri-Barwadih at Hazaribagh became operational in December 2016. First wind power project of NTPC- Rojmal Wind Energy Project 50 MW is being set up in the State of Gujarat. Kevin Byard Jersey
`Power To All’ Plan by 2019 Is On Track, Union Minister Piyush Goyal assures Parliament
The government’s `Power To All’ Plan by 2019 Is On Track, Union Minister of State (IC) for Power, Coal & New and Renewable Energy and Mines, Piyush Goyal assured the Parliament on Thursday. As many as 12,662 out of the targeted 18452 villages stand electrified in the country as on March 20, 2017 and 56,232.6 MW generation capacity has been added during the period 2014-17 (as on 28.02.2017), Mr Goyal said in a written reply to a question in Lok Sabha. The minister said these were part of measures that the Ministry of Power was taking to provide 24X7 affordable and environment friendly ‘Power for All’ by 2019. In addition the minister listed the following measures for achieving the Power To All (24×7) plan: i. Preparation of state specific action plans for 24X7 Power for All, covering adequacy of generation, transmission capacity and distribution system: 24X7 Power for All documents have been signed with 35 States/UTs. iii. Launching of scheme called Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for rural areas: The scheme provides for (a) separation of agriculture and non-agriculture feeders; (b) strengthening and augmentation of sub-transmission and distribution infrastructure in rural areas including metering at distribution transformers, feeders and consumers end; and (c) rural electrification. iv. Launching of Integrated Power Development Scheme (IPDS) for urban areas: The scheme provides for (a) strengthening of sub-transmission and distribution networks in urban areas; (b) metering of distribution transformers/feeders/consumers in urban areas; and (c) IT enablement of distribution sector and strengthening of distribution network. v. Operationalization of Power System Development Fund (PSDF): PSDF shall be utilized for the project proposed by distribution utilities for (a) creating necessary transmission system of strategic importance; (b) installation of shunt capacitors etc. for improvement of voltage profile in the grid; (c) installation of standard and special protection schemes; and (d) Renovation and Modernisation of transmission and distribution systems for relieving congestion; etc. vi. Launching of Ujwal Discom Assurance Yojana (UDAY): The scheme has been launched for operational and financial turnaround of Discoms. vii. Measures initiated for reducing the generation cost of coal based power projects: (a) Increasing supply of domestic coal; (b) Coal usage flexibility (c) Rationalization of coal linkages viii Increase in electricity generation from 967 BU (Billion Unit) in 2013-14 to 1048 BU in 2014-15 and 1107 BU in 2015-16, resulting in lowest ever energy deficit of 2.1% in 2015-16. ix During the current year 2016-17 (upto February 2017), electricity generation has been 1057.746 BU. Energy deficit has further reduced to 0.7% during the period April-February, 2017 which is the lowest ever. x. 73,798 ckm transmission lines and 1,89,948 MVA sub-station capacity added during 2014 to February, 2017. 87% increase in transmission capacity to South India from 3450 MW in April- 2014–February, 2017 to 6450 MW. xi. Implementation of Green Energy Corridor for transmission of renewable energy. xii. Unnat Jyoti by Affordable LEDs for All (UJALA) to replace 77 crore incandescent bulbs with LED bulbs. This will result in estimated avoided capacity generation of 20,000 MW and save 100 billion kWh per year by March, 2019. As on date, 21.8 crore LED bulbs have been distributed. In addition, over 5.36 lakh energy efficient fans and 13.37 lakh LED tube lights have been distributed. xiii Street Lighting National Programme (SLNP) is being implemented to replace 1.4 crore conventional street lights by LED street lights. The replacement will result in avoided capacity generation of 1500 MW and save 9 billion kWh per year by March, 2019. As on date, over 18.3 lakh LED Street lights have been replaced across the country. The Minister further stated that the funding pattern for the new schemes initiated by the Government is as under: i. DDUGJY & IPDS: Government of India Grant – 60% (85% in case of Special Category States; Utility/State contribution – 10% (5% in case of Special Category States); loan from banks/financial institutions – 30% (10% in case of Special Category States) – Additional grant from GoI on achievement of prescribed milestones – 50% of the loan component. ii. PSDF: Subject to availability of funds and admissibility, the quantum of grant towards project cost ranges from 75% to 100% for non Special Category States. The projects from North-East and other hill States, namely, J&K, Sikkim, Himachal Pradesh and Uttarakhand are eligible for grant upto 100%. Radim Vrbata Authentic Jersey
India must maximize solar power use for higher GDP growth rates: Expert
“India can become a super power if its economy becomes stronger and its GDP (Gross Domestic Product) grows at 9.5%. For this to happen, use of solar power should be maximized as it would be one of the major contributors in future,” said GD Yadav, vice-chancellor of Institute of Chemical Technology, Mumbai, on Thursday. Speaking at the second national workshop on ‘Solar energy utilization for sustainable development’, organized by National Environment Engineering Research Institute (Neeri), Yadav said, “Population and income are the key drivers behind growing demand for energy. As India is expected to overtake China’s population by 2040, efforts should be made to fulfil the demand for power through renewable and solar energy in future.” “In India, agricultural waste is burned by farmers, but it can be used as energy generator. Besides, biomass should be converted into bio-energy. New infrastructure should be built with facilities for storage and processing of enormous volumes of biomass and distribution of ethanol,” Yadav said. According to him, fossils will be mainly used for energy mix in 2050 and carbon dioxide can be used to convert it into hydro carbons for energy generation. In his keynote address on ‘Design and development of ultra-low permeable moisture barriers materials for solar cells’, Giridhar Madras, a professor at Indian Institute of Science, Bengaluru, said, “Glasses used in solar cells can be a liability for energy generation. Therefore, we have started a research project under which efforts will be made to design moisture barrier materials for organic device encapsulation.” These materials will make solar cells more efficient and increase their life as these will have moisture barrier properties and be user-friendly. USB copies of the books of abstract were also released at the function. Neeri director Rakesh Kumar, scientist Sadhana Rayulu and chairperson of research council Kasturi Dutta were present. Nitin Labhsetwar proposed a vote of thanks. Kai Forbath Jersey
Uncertainty over micro-grids future roadblock for the sector: Feedback
Uncertainty around tariff payment and its future in case grid power reaches villages are major areas of concern plaguing the micro grid sector, according to Feedback Business Consulting. “The biggest challenge in operating a micro-grid is the uncertainty around tariff payment and the absence of large commercial loads in villages. Developers wants to ensure steady recovery of their capital investment and requires funds for maintenance. This uncertainty increases the risk profile of the project significantly,” said an analyst from Feedback Business Consulting. The second challenge is in the form of sustainability of the venture in case grid-power reaches the village and villagers decided to switch to the grid network due to lower tariff. “There are no proper exit strategy. Most developers are waiting for regulations from the government so that they can sustain business over long term,” he said. Most of these projects hold considerable risks and developers, mostly small time private entrepreneurs should have access to cheap loan. Another challenge is to ensure security of the assets. Many developers, according to the report, have filed cases of asset theft, and breakage of solar panels. Other challenges include receiving approvals for laying underground cables when the network crosses any highway, less or no growth in electricity demand from the villagers and limited scope of expansion to other villages. George Fant Womens Jersey
Ratna and R-series fields to be developed by ONGC after a delay of 20 years
The board of state owned behemoth Oil and Natural Gas Corporation Limited (ONGC) last month approved the development of R-series fields with a capital cost of Rs 4,104.63 crore, petroleum minister Dharmendra Pradhan informed Rajyasabha. A Comptroller & Auditor General (CAG) report of 2015 had observed that keeping the discovered R-series fields idle without assigning production rights had led to a deferment of domestic production of crude oil and natural gas from the fields to the tune of Rs 26,200 crore. Production from these fields is targeted to start in 2019 with an output of 10,000 barrels per day initially. The Ratna and R-series oil fields hold an estimated 87 million barrels of oil and 1.2 billion cubic meters of gas reserves. The Ratna and R-series fields are medium-sized fields, located in the western offshore on the south west of Mumbai. ONGC had originally discovered these fields and created facilities in Ratna R-12, which is a part of Ratna and R-series, at a cost of Rs 472 crore. These facilities were used by the state-owned ONGC for production since 1983 before production was stopped in September 1994 after which the field was put up for auctions by the then PV Narasimha Rao led congress government. Subsequently these fields were awarded to a consortium led by Essar oil in 1996. However, production sharing contract (PSC) for the fields could not be finalized due to differences of rates of royalty and other issues. In March 2016, the Union cabinet chaired by PM Modi approved the cancellation of the letter of award given to the consortium led by Essar Oil Limited in 1996 and decided to revert the Ratna and R-series fields to ONGC. Vince Carter Womens Jersey
‘ONGC is in no way linked to the proposed hydrocarbon project at Neduvasal’
ONGC has no further role with the proposed hydrocarbon extraction project at Neduvasal and its surrounding villages in Pudukkottai district, said top officials from ONGC based in Karaikal. They further said that it was up to the Union government to decide whether the project would be implemented along with private players or be scrapped once and for all. The officials told reporters in Trichy that since the state government had not given approval for the project, it would be impossible to proceed further. Stating that several misconceptions are being spread, linking ONGC with the proposed hydrocarbon extraction project at Neduvasal, executive director for assets, manager of Cauvery asset, Kulbir Singh, and group general manager of Cauvery basin Pawan Kumar, addressed the media jointly to counter the spread of unwarranted rumours and fears, here on Thursday. Under the Discovered Small Field (DSF) bid round 2016, Government of India had awarded 31 contract areas to various companies. However, ONGC is not an awardee under DSF 2016 in Tamil Nadu, said Pawan Kumar. “In 1993, 2008 and 2009, ONGC tested 13 wells in and around Neduvasal for exploration purposes. However, out of 13 wells 10 had been abandoned due to non-availability of oil or gas sources and gradually all the acquired land was returned to farmers in their original condition. Meanwhile, the remaining three wells (Nallandarkollai, Kottaikadu and Pullanviduthi) were being considered for production purposes. However, it came to light that the project would not be financially viable. Thus, ONGC decided not to execute the project,” he said. Meanwhile, the Union government decided to handover the project to any private player in such a way to make use of the wells, he further stated. “Only five acres of land are with the possession of ONGC where the three wells are there as of now. So, it is up to the Centre to decide whether the project would be continued or not,” he further clarified. ONGC was neither carrying out nor does it have plans to carry out exploration of shale gas, shale oil or coal bed methane in the Cauvery basis, said Kulbir Singh. Moreover, the state government itself had banned both exploration projects, he added. There are no pending due to farmers for leasing of lands till now. Moreover, ONGC had restored all the lands acquired for exploratory purposes to a near original condition, as per the guidelines to enable farmers to cultivate again, officials said. In order to create awareness among the farmers and general public about the actual process involved in the extraction of natural oil and gas executed by ONGC, the corporation has planned to organize street plays and jingle shows, officials said. CM Punk Womens Jersey
US is swimming in crude oil: EIA data
The United States has got a lot of crude oil on its hands right now. According to data released by the US Energy Information Administration (EIA), stockpiles swelled by a further 4.95 million barrels to 533.1 million barrels. That was near double the 2.8 million inventory build expected, and left stockpiles at the highest level on record. That’s a lot of crude, not only in absolute levels, but also based on current consumption levels. “US oil stockpiles trended lower through most of last year because of the fall in US supply, but this trend is reversing as US oil production increases,” said Vivek Dhar, mining and 2 energy commodities analyst at the Commonwealth Bank. “US oil output lifted to around 9.1 million barrels per day (mbd) last week, and is now only around 0.5mbd be low peaks reached in June 2015.” Even with murmurings about a possible extension to production cuts implemented by Opec and non-Opec members in the first half year, Dhar says that the risk to his average crude price of $50-60 per barrel this year appear slanted to the downside due to the ongoing lift in US supply. Brian Gibbons Jersey
ONGC to invest $10 billion in deepwater projects off India’s east coast
India’s Oil & Natural Gas Corp. is wading into deep waters, where energy giants BP Plc and Reliance Industries Ltd. found a sea of trouble. State-run ONGC plans to invest in a region off India’s east coast to help boost natural gas output and raise crude flows, said Tapas Kumar Sengupta, its director for offshore operations. The nation’s top explorer will spend about 648 billion rupees (about $10 billion) in deepwater projects in the Krishna-Godavari basin, according to Oil Minister Dharmendra Pradhan. ONGC is betting that it can pry more out of the resource-rich area by studying hurdles faced by other companies. Reliance and partner BP have a project in the basin that’s producing only 9% of its target. Unearthing deposits from the region, where the depth of water is comparable to those in the U.S. Gulf of Mexico, are critical to Prime Minister Narendra Modi’s plans to cut energy imports and help narrow a budget deficit. “The east coast is our future because western offshore fields are in a heavy declining trend,” Sengupta said in an interview in his office in New Delhi. “To keep India’s gas production alive, the east coast needs to make a tremendous contribution in the next two decades.” The country’s biggest hydrocarbon producer expects the area, including its KG-DWN-98/2 block, will add about 40 MMscm to daily gas production within five years, according to Sengupta. That’s almost half of India’s net gas production of 84 MMscmd from April 2016 to February this year. Oil output could rise by 77,000 bpd, he said. ONGC’s block lies next to Reliance’s KG-D6, one of the biggest discoveries of the year when it was found in 2002. Production there has tumbled about 85% since hitting a peak in 2010 as the private Indian company and BP found the reservoir is more difficult to produce from than they had initially estimated. Shut wells Gas production at the KG-D6 block was 2.64 Bcm during the 11 months to February, compared with a target of 29.32 billion for the fiscal year ending March 31, Oil Minister Pradhan said in parliament on March 20. Reliance, controlled by India’s richest man Mukesh Ambani, and BP were forced to shut most of the wells producing gas from the KG-D6 block after water and sand started entering them. Production also declined because of low flow pressure and natural decreases of deposits in the wells. Technological developments over the past few years may help ONGC avoid similar pitfalls. “We have confidence the technology can mitigate the risks of developing such high-risk areas,” Sengupta said, adding that the company has also learnt from the problems that have afflicted others. The company has done “extensive” appraisals in the area, which has helped it analyze the reservoir’s characteristics, he said. To test the rates of hydrocarbon flows, ONGC has started early production from a deepwater well in the area that’s near the Reliance-BP block. Deepwater challenges “The well has been producing 1 MMcmd since May without any decrease in flow,” Sengupta said. The energy deposit lies in the Bay of Bengal below up to 2,900 m of water, making it comparable to some of the deepest areas in the world, including Royal Dutch Shell’s Stones and Perdido projects in the Gulf of Mexico. “Challenges are huge in deepwaters and the biggest challenge was to establish the flow assurance,” Sengupta said. “Unless and until you are confident about the volume, you cannot propose something to your stakeholders.” ONGC will hire consultants with experience on similar projects for developing its deepest discoveries that are located about 150 km from the coast. “Some of the top engineering consultants mainly from the U.S. and Australia with experience in the Gulf of Mexico and Western Africa have shown interest in helping us,” according to Sengupta. Companies also require prices that can justify production. Reliance and BP, which discovered additional gas pools near the biggest reserves in their block, are awaiting assurances on pricing from the Indian government before they start developing the new deposits, the British company’s chief executive officer, Bob Dudley, told analysts Feb. 28. Gas pricing ONGC is confident its projects are viable at current prices. The cap now for fields that are located in deepwater, ultra-deepwater and high pressure-high temperature areas is $5.30/MMbtu. India sets gas prices every six months using a formula based on U.S., Canadian, UK and Russian rates, with the next revision due on April 1. “The government direction for a different kind of gas pricing is helping us to make these fields viable,” Sengupta said. “ONGC is already gearing up for the big work to be done for the import reductions.” Adam Joseph Duhe Jersey