Bharat Petroleum Corporation Ltd to venture into gas biz: CMD D Rajkumar
Bharat Petroleum Corporation Ltd (BPCL) plans to venture into gas business and diversify resources for source of fuels as part of its five-year plan, a top official said today. “BPCL under the next five-year plan has set a target of Rs one lakh crore to be spent for all its expansion activities which includes marketing, refining etc…,” BPCL chairman and managing director D Rajkumar told reporters here. “We want our market cap to reach Rs 2.50 lakh crore. That is 2.5 times increase of what it is now. We have also planned to venture into gas business. That will be our next value chain,” he said. To a query, he said, the company has taken up ‘an experiment’ to import crude oil from the United States under its ‘diversification’ exercise. “We have imported two cargos of crude (from US) as an experiment. That is one (cargo) with crude with high sulphur and another (cargo of) crude with low sulphur. One million barrels each. This is basically with a view to diversify resources that are available to us”, he said. “We really want to ensure that the prices are kept within the limits. For that it is necessary we source it from the right sources. We have been looking at various sources. Whatever we import, the crude will be refined in our existing refiners within the existing configuration”, he said. “Right now, what we are trying to do is to diversify our sources in an efficient manner.”, he said. Talking about the company’s financial performance, he said BPCL clocked Rs 2.42 lakh crore revenue with a profit after tax at Rs 8,339 crore. “We hold market share of 24 per cent and our market cap is more than Rs one lakh crore”. To a query on expansion of outlets, he said the company currently has 14,000 outlets across the country. “In Tamil Nadu, we have about 4,524 outlets. Depending upon demand we will expand”. Josh Archibald Jersey
TAP makes substantial progress in financial turnaround of Air India
The Government of India had approved a Turnaround Plan (TAP) / Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India. The TAP/FRP provides equity infusion of Rs.30,231 crores upto 2021 subject to achievement of certain milestones. Minister of State for Civil Aviation Jayant Sinha in a written reply to a question in the Rajya Sabha today said that Company has made substantial progress in both operational as well as financial areas as per TAP Milestones. As a part of the turnaround strategy, the company, with the overall support of the government, has initiated a number of steps in order to cut costs and losses. These steps, inter-alia, include the following: i. Route rationalization of erstwhile Air India (AI) & Indian Airlines (IA) route and elimination of route network involving parallel operations. ii. Rationalization of certain loss making routes. iii. Enhanced utilization of new fleet resulting in production of higher Available Seat Kilometers (ASKMs). Andre Smith Authentic Jersey
Three-pronged strategy cleared for Air India disinvestment
The Cabinet committee of economic affairs (CCEA) has finalised a three-pronged strategy for the disinvestment of Air India — demerger and strategic disinvestment of three profit making subsidiaries, hiving off of certain assets into a special purpose vehicle and treatment of unsustainable debts of the ailing carrier. The three profit-making subsidiaries are the low-cost airline Air India Express Ltd, the ground handling company Air India Air Transport Services Limited and Air India’s joint venture with SATS Limited for ground handling activities in Delhi, Mumbai, Trivandrum and Bengaluru. The process will be piloted by the Air India Specific Alternative Mechanism (AISAM) comprising finance minister Arun Jaitley, civil aviation minister Ashok Gajapathi Raju, transport minister Nitin Gadkari, Railways minister Suresh Prabhu and power minister Piyush Goyal. In addition to laying a roadmap to take care of the massive debt that Air India has incurred over the years, the assets that are to be incorporated in the ‘shell companies’, the committee will also decide on the quantum of disinvestment of the parent company and its subsidiaries and take decisions about the bidders. The decision was taken at a CCEA meeting on June 28. The Niti Aayog had submitted its recommendations on the strategic disinvestment of Air India and five of its subsidiaries on May 12, citing the carrier’s monthly losses to the tune of Rs 200-250 crore as the primary reason why such a move is required. Air India’s cash deficit is expected to double from Rs 1,050 crore in 2015-16 to Rs 2,069 crore in 2016-17, according to the provisional figures in a report submitted by the ministry of civil aviation to the standing committee on transport, tourism and culture. In a note the ministry has argued that since there are several Indian owned private airlines operating in the domestic and international sectors, there is no need for the government to be involved in the aviation business. Air India caters to 42 international destinations in 27 countries and 72 domestic stations with its subsidiaries. The airline has 142 aircraft including 15 wide-body B777s, 24 B787s and four B747 aircraft and 65 narrow-body A320s. Its subsidiary Air India Express has 23 B737-800 aircraft and Alliance Air has a fleet of 11 ATR 72 aircraft. Andy Lee Authentic Jersey
High Profits Boost Foreign Refineries’ Scramble for Nigerian Crude
Shortage of certain grades of crude oil in the international market following production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC, coupled with booming refinery profits, have forced foreign refineries in the United States and Asia to scramble for cargoes of Nigerian crude. This latest development is in contrast to recent months when the loading of cargoes of Nigerian crude had lingered after the programmes were issued by the producing companies. At the peak of the militant attacks on oil and gas infrastructure in the Niger Delta in 2016, which led to the declaration of force majeure by the international oil companies (IOCs) on four Nigerian grades of crude oil, supply disruptions had created delivery uncertainties that forced crude buyers in India and the United States to shun Nigerian crude. For instance, India’s Hindustan Petroleum Corporation Limited had cancelled a vessel it chartered to carry two million barrels of Nigeria’s Qua Iboe following the force majeure declared by ExxonMobil on the exports of this grade of crude oil. ExxonMobil had declared the force majeure on Qua Iboe after a drilling rig working for another oil company damaged its pipelines. The development had prompted the state-run Indian Oil Corporation Limited, which is a major buyer of Nigerian grades to cancel the tender for Qua Iboe. Also, Indonesia’s Pertamina, which is also a buyer of Nigerian crude, shunned the Nigerian grades and opted for Congolese Coco, Angolan Girasol and Saharan Blend from Algeria. Pertamina had said it shifted its preferences as a result of the violence in the Niger Delta, which made the delivery of Nigerian cargoes uncertain. The Senior Vice-President of ISC Pertamina, Daniel Purba, had told Reuters that the firm was “monitoring” Nigeria, but “currently it’s still not affecting crude purchasing”. However, Reuters has reported that the booming refinery profits are helping Nigerian oil producers sell cargoes quickly, aided by the crisis in Venezuela, and the shortage of certain types of crude amid OPEC production cuts. Competition among buyers has boosted offers for Nigeria’s Forcados grade to as much as $1.70 above dated Brent, while offer levels climbed for nearly all other Nigerian grades. Crude buyers are said to be keen on buying Nigerian crude partly due to strong profits for sulphur-rich fuel oil, which is boosting demand for Nigerian oil. Nigerian crude has lower sulphur content and produces more fuels such as gasoline. Though light crudes suffered because most production additions this year, from US shale, Libya and Nigeria, were light crude, the shortage of certain grades as a result of OPEC cuts led some buyers to shift to light oil. According to reports, the long-suffering Nigerian grades are finding keen buyers in the United States and Asia as refineries run full steam on strong margins. While the United States refinery margins were said to have rallied to a two-year high on Tuesday, Europe’s refinery runs were also said to be on track for a six-year high for August before Europe’s largest oil refinery went into an unplanned shutdown over the weekend. CM Punk Jersey
Spot power price falls to Rs 2.49 per unit in July
The average spot price of power fell 4 per cent to Rs 2.49 per unit in July 2017 from Rs. 2.59 per unit in the previous month in June at the electronic power trading platform, Indian Energy Exchange (IEX). “The average Market Clearing Price (MCP) during the day (08:00 to 18:00 Hrs) and the night (01-06 Hrs and 24 Hrs) was Rs 2.18 per unit while during the evening peak (19:00 to 23:00 Hrs) the average MCP was Rs 4.03 per unit,” IEX said in a statement. The spot market witnessed total trade of 3,669 million units (MU) marking a 6 per cent decline from 3,920 MU traded in the previous month with 118 MU traded on a daily average. “With rains continuing in most parts of the country except in South, the demand for power eased a bit,” the statement said. The market pre-dominantly remained a buyer’s market with average daily sell bids of 216 MU exceeding the average daily buy bids of 139 MU with the highest trade of 166 MU on 30 July, 2017. According to IEX, July saw an increase in inter-state transmission congestion mainly on account of import of power by Northern and Southern States which were constrained 10 percent and 15 percent of the time respectively. “One Nation, One Grid, One Price was realized on 10 days in July, while in the last month, one price was realized on 27 days,” IEX said. The daily average loss due to congestion on the inter- state transmission network was 1.64 MU compared to overall loss of 6 MU and daily average loss of 0.2 MU in June with the overall loss of 51 MU. The average Area Clearing Prices (ACP) across regions in July were — Rs 2.54 per unit in North, Rs 2.59 per unit in South and Rs 2.45 per unit in the rest of India. July saw as many as 1,005 participants trading in the spot market on an average daily basis with the highest participation of 1,068 participants traded on 15 July, 2017. Marshawn Lynch Womens Jersey
Solar power tariff falls by 80% in seven years
Solar power tariff in the country has fallen by 80% since 2010. The maximum tariff for solar power was seen in December 2010 when 150MW was sold at Rs 12.76 per unit under the Jawaharlal Nehru Solar Mission. Since then, the tariff has fallen steadily with the lowest tariff of Rs 2.44 per unit for 500MW in Rajasthan. The solar power tariff has been falling only when the states or agencies go through the bid mode. Tamil Nadu which followed the power purchase agreement does not figure in the list of states that took advantage of falling solar power tariff until 2015. “Reduction in solar power tariff depends on several factors like solar irradiance, project cost, debt-equity ratio, cost of financing, return on equity, operation and maintenance cost,” said Union power minister Piyush Goyal in Lok Sabha on Thursday. “In 2015, when Tamil Nadu signed several MoUs with solar power companies for Rs 7.01 per unit, states like Rajasthan and Madhya Pradesh had firms quoting Rs 5.25 per unit. We did not capitalise on the falling tariff of solar power as we were following the power purchase agreement (PPA),” said a power expert, not willing to be named. A look at the data presented by the power minister shows that the solar power tariff across the country started falling from Rs 6.88 per unit to Rs 4.63 per unit in nine months of 2015. “We wanted to adopt the tender process way back in 2013 and we received the lowest bid of Rs 5.97 per unit but TNERC rejected it and adopted the PPA model,” said a TNEB official. Compared to several sunshine countries, India’s solar power tariff is still high. While in Dubai, the tariff in May 2016 was US cent 1.99 per unit, in Abu Dhabi in September 2016, per unit tariff was US cent 2.42 per unit. In South America, the tariff was slightly higher. Chile has a tariff of US cent 2.91 and Mexico at US cent 2.7 per unit. Vernon Davis Jersey
You will soon get diesel delivered at your doorsteps, courtesy IOC
State-run oil marketing companies like Indian Oil Corporation (IOC) are likely to launch home delivery of diesel within two months, once Petroleum and Explosives Safety Organisation (Peso) comes up with a regulation in this regard. “So far, there are no norms in place for home delivery of petrol and diesel. Peso is working on it and we would certainly like to go ahead with it once a regulation is in place. We are more aggressive on diesel, as it is a much safer fuel compared to petrol for handling,” said Sanjiv Singh, chairman of IOC. The idea for home delivery of fuel was mooted by petroleum minister Dharmendra Pradhan at a meeting of the consultative committee of Members of Parliament in Srinagar early this year as the effort may increase digital transactions in the sector. “Peso is likely to come up with the regulations in two months and once it is in place, we will launch home delivery of diesel,” said B S Canth, director of marketing in IOC. The idea was floated in order to reduce the long queues outside fuel outlets and to get it delivered at doorsteps. Walt Weiss Jersey
IndianOil, partners look for cheaper site for Pacific NorthWest LNG terminal
Indian Oil Corporation Ltd said it is in talks with its partners to scout for an alternative, cheaper site for the Pacific Northwest LNG terminal after the recent pullout of the lead developer cast doubt on the future of the Canadian project. Malaysia’s state-owned Petroliam Nasional Bhd (Petronas), which held a majority 62 percent stake in the proposed C$36 billion ($29 billion) Pacific NorthWest LNG Project in British Columbia, said last week it was abandoning the plan due to weak global prices. Sanjiv Singh, chairman of Indian Oil, which has a 10 percent stake in the Canadian project, said the company remained interest in going ahead with at least part of the plan. “We are very much positive going ahead with the upstream part of it, which is gas production. Liquefaction and transportation further in the liquid form we are not pursuing, I mean, we don’t want to pursue very aggressively as of now,” he told a news conference. “We are also looking at a different location which might be much less expensive than the earlier one,” Singh said. Indian Oil’s head of business development, G.K. Satish, said consortium partners are talking about alternatives. He declined to comment on write-offs IOC might be taking in the next quarter for investment in the Canadian LNG project. Petronas’s pullout dealt a blow to the project and its partners which would now have to invest additional capital to complete the project. Indian Oil is the first partner to suggest the project could still go ahead, in modified form. “Cost of liquefaction, transportation and retail outside Canada has gone up. And today we are finding that it may not be very attractive at the present prices,” Singh said. The other partners in the project are Chinese oil and gas giant Sinopec, with 15 percent, Japex Montney Ltd, with 10 percent, and Petroleum Brunei, with 3 percent. Petronas may have to write off up to $800 million for work already done on the Canadian project, analysts say. Japan Petroleum Exploration Co (Japex) said on Wednesday it would take a loss of about C$102 million ($82 million) due to the scrapping of the project. Indian Oil Corp planned to lift 1.2 million tonnes of the super-cooled fuel for 20 years from the British Columbia project for its 5 million tonne a year regasification LNG plant at Ennore in eastern India. Indian Oil was expecting deliveries from the western Canadian project to begin in 2020. The company said it also expected a “slight delay” from Cameron LNG project in the United States and will see deliveries by the end of 2018. Indian Oil will float a tender to import 2 million barrels of high sulphur U.S. crude in August. It intends to import high sulphur oil from the United States for as long as benchmark WTI prices are depressed, Finance Director A.K. Sharma said. Tim Heed Womens Jersey