Good news for Delhi residents: Get money for power cuts soon, Arvind Kejriwal government decides
Citizens would be compensated for unscheduled power cuts lasting longer than one hour, if a policy approved by the Delhi government on Tuesday gets a green signal from Lt. Governor Anil Baijal. Chief Minister Arvind Kejriwal on Tuesday approved the policy to provide compensation to users in case of “unscheduled power cuts by the private power distribution companies” and it was later sent to the Lt. Governor for approval. The policy would now need Baijal’s approval to come into force. “According to this new policy, in the case of an unscheduled power cut, the DISCOMS (power distribution companies) will have to restore the electricity within one hour, and failure to do so shall result in a penalty of Rs 50 per hour per consumer for the first two hours and Rs 100 per hour per consumer after two hours,” an official statement said. The compensation would be provided to consumers in their monthly electricity bills. “The Delhi government is confident that the LG will concur with the policy and endorse this pro-consumer step, which will become a model for other governments across the country to follow,” the statement added. Tim Schaller Jersey
Rajasthan aims 3,780 MW solar capacity by April next
With 20 projects of 1,500 MW capacity in pipeline, Rajasthan is targeting to increase its solar power generation to 3,780 MW by April next year in order to achieve the goal of 7,000 MW clean energy capacity in the next four years. “The current solar power generation is contributing 10 per cent to the total power consumption in the state and we are targeting to increase it to 17 per cent by 2021,” Rajasthan Renewable Energy Corporation Managing Director B K Doshi told . He said that solar power installation capacity in the state has reached to 2,280 MW by March this year and 20 projects of total 1500 MW are under pipeline and will be commissioned and start generating power by April next year. “Work on various projects is in full swing. The second phase of Bhadla solar park near Jodhpur has been commissioned (680 MW) and its third phase (1000 MW) is under progress. Of the 1000 MW capacity under the third phase of Bhadla park, 500 MW will be commissioned in September this year and 500 MW by April next year. Fourth phase of 500 MW will also be commissioned by April,” he said. Of the total 1,500 MW projects, which are scheduled to be commissioned by April next year, 10 are of the capacity of 100 Mw each and 10 of 50 MW each, he said. Other projects which are under the pipeline are Pokran-Phalodi solar park (750 MW), Fatehgarh phase 1B (1500 MW) and Nokh – Jaisalmer (1000 MW). The state having huge potential for the solar power generation could add just 496 MW in the last financial year, which is less than the fiscal year of 2016-17 where the state had added 500.55 MW. Doshi informed that the capital cost of setting up a solar plant in present is approximately 4 crore per MW which was quite higher earlier therefore the tariff at which the power is being purchased from companies is different depending upon their cost of production. Potential of the solar power generation is higher in Rajasthan as compared to other states but still the state lags behind Karnataka and Telangana. The solar power installed capacity in Karnataka and Telangana is 4,884.56 MW and 3,336.42 MW respectively while Andhra Pradesh is generating 2,148 MW solar power, according to official concerned of the respective states. Besides solar, Rajasthan is also generating 4,292.54 MW from wind and 120.45 MW from biomass (up to December 2017). As per a study by the union ministry of new and renewable energy, estimated potential of the desert state in wind energy is 18,770 mw. However, the state could not add any generation of power from wind in 2017-18 as no company opted Rajasthan to set up plan in the state in Solar Energy Corporation of India (SECI) biddings. Another official informed that various industries in the state put in place energy efficiency methods and have saved almost 222.3 million units of electricity and 2,73,660 MT coal in the last two years. “Industries are being encouraged to use energy efficient so that they can reduce power consumption,” the official said. Jim Brown Authentic Jersey
Hero Future Energies sets up country’s first hybrid renewable power plant
Hero Future Energies has commissioned the country’s first large-scale hybrid renewable energy project — a combination of sun and wind power — in Karnataka’s Raichur district. The company has added a 28.8 MW solar project to an existing 50 MW wind project set up two years ago. A hybrid project has several advantages over a standalone solar or wind project, including saving on land, company insiders. “Many of the solar panels have been installed in the spaces between the turbines,” Rahul Munjal, chairman at Hero Future Energies, said while inaugurating the project. Solar projects need about five to seven acres of land per megawatt depending on the technology used, and though Hero did acquire some additional land for the solar project, it was far less than it would have had to for a standalone project of similar size, officials said. Also, both wind and solar are ‘infirm’ sources of power in that their supply varies according to the speed of the wind or the intensity of solar radiation. By combining the two the project can supply steady power for a longer period in a day than standalone wind or solar plants, and improve its overall plant load factor (PLF). Wind speeds are usually highest early in the morning and at night, while sunshine is available only during the day. “It helps to smoothen out the supply to the grid,” Munjal said. “It also optimises transmission cost. We have a single 24 km long line that goes from here to the substation. If we had two separate projects, we would need two separate lines, run by two separate teams. A hybrid project also helps in forecasting and scheduling, making forecasting more accurate,” he said. The project is a group captive one, with a number of private companies buying power from it directly at mutually agreed tariffs. Siemens Gamesa was contractor for both the solar and wind projects, and also provided wind turbines for the plant. Though the combined plant has a total capacity of 78.8 MW, the transmission line so far is capable of evacuating only up to 50 MW. If hybrid projects make more sense, why has it taken so long since India began its renewable energy programme for the first hybrid project to come up? It is because the government has no policy for such projects yet. Draft guidelines for hybrid projects were circulated in mid-2016, but it was not finalised. There is no clarity yet on the tariff such projects can charge, and no state-owned discom will buy their power. “I wish we could sell to discoms, but we can’t since they don’t have a price,” said Munjal. “Everyone is waiting for a government policy, for a tender or a document or a price, which has not happened. Hybrid plants cannot sell to the government yet. You can build one if it is a group captive project.” Nor can those interested in hybrid projects participate in either solar or wind auctions, because the terms have not been set. The main challenge for hybrid projects is finding locations that have both strong winds and good solar radiation. “If you want to optimise on both, there are very few places,” said Munjal. “Wind power is available in only eight states in the country. Solar is everywhere. It is possible to get a great wind site with decent solar, but it will be rare to get a great wind site with great solar as well.” Hero Future Energies currently has around 1,200 MW of installed wind and solar projects, with another 500 MW being built and 300 MW more in the pipeline. Corey Clement Jersey
Iran’s oil export reaches 2.1 mbd in March
Exports volume for Iran’s crude oil stands at two million and one hundred thousand barrels per day (mb/d) in March. The figure is expected to increase in April. China and India are the largest buyers of Iranian crude, with more than one million barrels in total. The figure is expected to reach nearly 1.3 million barrels per day in April, while China and India will maintain their position as the first and second largest oil importers of Iranian crude. Dutch-British Shell, France Total, Italian ENI and Saras Companies, Greek Hellenic Petroleum and Spain Repsol and Hungary MOL are among Iranian oil customers in Europe. According to the Oil Ministry’s report, Iran has also exported 400,000 barrels per day of condensates during the March with South Korea was the biggest customer with purchasing half of the amount. South Korea has requested for more gas condensate from Iran, however, due to increased domestic consumption and its allocation to Persian Gulf Star Oil Co., there is no possibility of realizing South Korea’s demands for it. South Korea now receives about 200,000 barrels of gas condensate per day from Iran. Adrian Peterson Authentic Jersey
Vinod Kumar Mishra assumed charge as PLL Director (Finance)
Vinod Kumar Mishra assumed the charge of Director (Finance) at Petronet LNG Limited (PLL), one of the fastest growing world-class companies in the Indian energy sector, here on Wednesday. Prior to joining PLL, he was Chief General Manager (Finance) at GAIL (India) Limited. Mishra possesses vast experience in financial management, corporate finance and Treasury Management. He also held the position of Director in GAIL Global USA, INC, Houston(USA), a wholly subsidiary company of GAIL(India) Limited. Mishra is Chartered Accountant by profession. Jordan Staal Authentic Jersey
Seadrill’s Bankruptcy Exit Plan Receives US Court Approval
A U.S. judge said April 17 he would approve Seadrill Ltd.’s (NYSE: SDRL) plan to exit its Chapter 11 bankruptcy, in which the global offshore oil and gas drilling company would shed billions of dollars of debt and raise $1 billion in new investment. U.S. Bankruptcy Judge David Jones in Houston overruled two minor objections to the reorganization plan during a 90-minute hearing. The plan extends maturities on more than $5 billion of bank loans and converts about $2.3 billion in bond debt into equity in a reorganized Seadrill. In addition, the plan will raise about $1 billion in new debt and equity through a rights offering led by Seadrill’s largest shareholder, John Fredriksen, and investment firm Centerbridge Credit Partners LP. “The company will have a tremendous competitive advantage with the new balance sheet,” said Spencer Winters, a lawyer for Seadrill with the Kirkland & Ellis, at the April 17 hearing.Seadrill, which competes with Nabors Industries Ltd. (NYSE: NBR) and Ocean Rig UDW Inc., operates a fleet of more than 30 vessels and was once the largest driller by market value. The company’s stock trades on the Oslo and New York stock exchanges and it has corporate offices around the world. Following a deep drop in oil prices beginning in 2014, the offshore service industry suffered from a glut of capacity and low market rates, a problem that lingers today. Mike Williams Authentic Jersey
India’s jet fuel demand to soar to record highs
An Indian push to connect more cities via airports as an expanding middle class increasingly takes to the skies is set to help propel the country’s demand for jet fuel to record highs this year. That rapid growth in appetite for aviation fuel means the country’s refiners are far less likely to send cargoes abroad, tightening markets from Asia to Europe. Years of breakneck economic expansion have helped India become the world’s fastest growing major domestic aviation market, according to the International Air Transport Association. That has been underpinned by ambitious government plans to overhaul the nation’s infrastructure, including a push to build airports and offer airlines incentives to fly to smaller cities. “The country’s air transport sector has huge potential to grow in the long-term given its large geographical expanse and growing consumer affluence,” said Sri Paravaikkarasu, a Singapore-based analyst at energy consultancy FGE. Average monthly demand for jet fuel could break through 700,000 tons this year, up from 2017’s record 623,000 tons and from 566,000 tons in 2016, several industry analysts estimated. That would be an annual growth rate of around 12 percent, comparable to what China achieved during its main boom years in the early 2000s. India used 2.02 million tons of aviation fuel from January-March this year, up 9.4 percent from a year earlier, the latest government data showed. FGE forecasts a 10.5-percent year-on-year increase in Indian demand for jet fuel in 2018, while energy consultancy Trifecta expects growth of 12-15 percent. REACH FOR THE SKIES Under a flagship government scheme, the Airports Authority of India (AAI) is set to invest 175 billion rupees ($2.7 billion) in upgrading airport infrastructure over 2019-20. “Both passenger and freight miles should benefit from the state-led build out in related infrastructure and improving domestic interconnectivity,” said Emma Richards, a senior oil and gas analyst in London at BMI Research. In a round of bidding for air routes concluded earlier this year, the AAI awarded over 400,000 kilometres per week to connect smaller cities, known as ‘Tier 2’ destinations. Top Indian carrier Interglobe Aviation, which operates as IndiGo and won most of the tenders, said new routes would include flying from Bhopal in central India to Nashik in the west. India’s domestic air traffic for the first two months of 2018 jumped nearly 22 percent from the year before to 22.2 million passengers, according to data from the Directorate General of Civil Aviation. The country’s top five busiest airports – Delhi, Mumbai, Bengaluru, Chennai and Kolkata – handled 31.9 million passengers this January and February, up 15.3 percent from the same period last year. LESS FOR THE REST Indian oil refineries such as Reliance Industries and Essar Oil are significant exporters of petroleum products including jet fuel. Thomson Reuters data shows India is one of the top three Asian suppliers of jet fuel. But exports are set to slow as local demand surges. “Domestic demand growth will certainly limit its ability to service other markets in the region,” said Richards at BMI. Already, India’s monthly exports dropped by more than 7 percent year-on-year in 2017. To deal with rising consumption, India’s refineries are expanding. India’s Ratnagiri Refinery & Petrochemicals – a joint venture between Indian Oil, Hindustan Petroleum and Bharat Petroleum – in April signed an initial deal with Saudi Aramco to build a huge refinery in the western state of Maharashtra. Reliance Industries, operator of the world’s largest refinery, plans to expand its oil processing capacity by over 40 percent by 2030. – Reuters Jake Bischoff Jersey
US energy majors want govt to give them larger access to Indian markets
The United States government has praised India for buying LNG, oil and coal from it but has offered little business interests in return, at the end of the First Strategic Energy Partnership between the two countries. US Energy Secretary, Rick Perry offered no signs of having nudged investment by American companies in India’s oil and gas exploration blocks. He did not say if Washington will ease off on the cases it has dragged India into at the WTO dispute resolution forum for alleged favours shown by New Delhi to domestic solar companies and said it will wait for outcomes before signing on to membership of India promoted International Solar Alliance. “There is no mention of any clear investment promises in the joint statement” said a top India government official. Instead the two page statement cheers Indian investment in the United States and lauds US energy exports to India. Perry said those exports were necessary to restore the imbalance in the US-India trade which shows a $22.9 billion surplus for India in 2017. Speaking with the press after about a two hour meeting with Indian petroleum and natural gas minister Dharmendra Pradhan, Perry spent the better part selling the virtues of Westinghouse manufactured nuclear reactors, for India. “We dont care who fabricates the nuclear plant, but there is no doubt Westinghouse with the best reactors in the world should be housed there”, he said. He did not say by when he expects any deal to be signed for the supply of the reactors for the Kovvada plant. Of course there were some positives too from the discussions. Perry said President Trump believes that India is the partner of choice for the USA, especially in energy business. Yet here too while Pradhan mentioned the expected advantage of US oil imports on prices, Perry made no mention of it in his reply. Instead the Energy Secretary said USA would be keen to support India’s strategic petroleum reserve. The reserve located near Vishakhapatnam currently has a small line of support from the UAE, and it could be to India’s advantage if the USA too moves in. But in return it would demand some concessions for dipping into the Indian domestic energy market. One of those is the possible tweaking of India’s energy template to allow for more gas usage. The US has an even larger advantage in gas than oil being the largest producer of it. The mineral is less polluting than coal but India has stayed away from a vigorous exploration of the market for gas since it too is imported. To correct that imbalance, the two countries have agreed to set up a US-India Natural Gas Task Force. Comprising of industry leaders and government officials it will nudge India to include more gas in its energy mix. “The Partnership will create important opportunities for advancing favorable policies and commercial investments in support of these goals, including in natural gas markets”, the statement added. Perry, it would seem had a large shopping basket for India. Pradhan, it would seem, was more keen to be seen as an amiable host. The lopsided results are a reflection of the edge USA has gained in the Indian markets. Alex Cappa Authentic Jersey
India’s ONGC files arbitration claim against Sudan over unpaid oil dues
The foreign acquisition unit of India’s Oil and Natural Gas Corp’s (ONGCNSE 1.76 %) has filed an arbitration claim against the government of Sudan in a London court, a company official said, seeking to recover dues pending for years from a project hit by the breakaway of South Sudan in 2011. People familiar with the matter in India and Sudan said ONGC had filed a claim for $98.94 million, in what they said was a first for the South Asian nation’s top oil and gas explorer against any government. They declined to be identified because they weren’t authorised to discuss the matter with media. At the centre of the dispute is ONGC’s 25 percent stake the company acquired in the Greater Nile Oil Project (GNOP) in Sudan in 2003. Other stakeholders include China’s China National Petroleum Corp with a 40 per cent stake and Malaysia’s Petronas with a 30 per cent share. “Yes, we have filed an arbitration as our dues have been pending for years,” said N. K. Verma, managing director of ONGC Videsh Ltd (OVL). “Notwithstanding this arbitration we will continue to work with Sudan going forward,” he said, declining to provide details on the timing and location of any hearings, or the amount being sought. The current arbitration is only for a part of pending dues that add up to about $425 million, sources said, adding ONGC has sued the government as the contracts were backed by sovereign guarantees. ONGC will also file arbitrations for the remaining outstanding amount in due course, said a company official, who declined to be identified. Officials in Sudan said contacts and negotiations with ONGC were being lined up. “We have addressed the company (ONGC) to show our commitment to serious negotiation and we (have) set up a committee to determine the time frame to pay back the sum in installments,” said Bekheet Ahmed Abdullah, under-secretary for Sudan’s Petroleum Ministry. SANCTIONS IMPACT OVL’s stake in the Greater Nile Oil Project (GNOP) comprised Blocks 1, 2 and 4, and the firm also agreed to build a 1,500-kilometre pipeline to Port Sudan on the Red Sea. But in 2011 South Sudan broke away from Sudan, after decades of civil war, and took control of blocks 1A, 1B and a part of block 4. Meanwhile, because of years of trade sanctions imposed on Sudan by the U.S. – only lifted in 2017 – Khartoum found it difficult to secure oil for its refineries, and asked foreign companies including OVL to sell their share of oil from the blocks to the African nation. In 2016, OVL signed a separate agreement with Sudan for the sale of its share of GNOP oil. Sudan has not yet paid $90.81 million to ONGC for purchases of oil in 2016 and 2017, according to people familiar with the matter. ONGC Videsh had expected Sudan to clear the dues after lifting of the U.S. sanctions last year. “We are committed to pay the money but due to the sanctions imposed on Sudan, we are facing problems in making payment,” said Sirajuddin Hamid Yousuf, Sudan’s ambassador to India. “The sanctions were eased on Oct. 12, 2017 but we still cannot have normal banking transactions with India and others,” he said. Reggie White Authentic Jersey