Greece’s DEPA clinches $175-million deal with Shell on domestic gas supplier
Greece’s state-controlled DEPA gas company will buy out Shell’s 49 per cent stake in a domestic gas supplier, Attiki Gas Supply Company, and a gas distributor in Athens and become the sole stakeholder in the two companies, it said on Friday. The deal between DEPA and Shell, which was signed on Friday, is worth 150 million euros ($174.45 million) and is part of a scheme under Greece’s latest international bailout which says that Athens needs to eliminate potential conflicts of interest between DEPA and domestic gas suppliers. DEPA is 65 per cent owned by the state. Lucas Johansen Authentic Jersey
Total closes $1.5-billion deal for Engie’s upstream LNG business
French oil and gas major Total said on Friday that it has completed a $1.5-billion deal to acquire Engie’s upstream liquefied natural gas (LNG) business to become the second-largest player in the global LNG market. Under the deal, Total said it would make additional payments of up to $550 million to Engie if there was an improvement in the oil markets in the coming year. Total Chief Executive Patrick Pouyanne said in a statement that the deal will give the company a worldwide market share of 10 percent. The deal will see the group manage an overall LNG portfolio of around 40 million tonnes per year by 2020 and increase its share in the U.S. market, with a 16.6 percent stake in Engie’s Cameron LNG project, he said. T.J. Green Womens Jersey
HPCL to automate all its pumping stations by December, confirms Hindustan Petroleum Executive Director
With an aim to ensure that right quantity and quality of fuel is dispensed at petrol stations, oil marketing company HPCL would automate all its petrol outlets by December, a top company official said here today. The company has about 15,000 outlets across the country and currently 9,000 pump stations have been automated, Hindustan Petroleum Corporation Ltd, Executive Director, TR Sundararaman said. “Our plan to automate (all the pumping stations) before this December. (By then) all the 15,000 retail outlets of HPCL will be automated. Benefits for the customer is that he gets assurance on the quality and quantity of fuel dispensed,” he told PTI at the sidelines of an event here. Noting that the investments were “not that much” for automating the outlets, he said, “with automation customer will get system generated bill and the exact quantity of fuel dispensed.” “A customer is assured that there is no cheating anywhere. Not that it is happening without automation. But, automation will make it one hundred per cent assured on quantity and quality (of the fuel),” he said. He claimed that the HPCL was the first oil marketing company to introduce automation in 2003. Asked whether there would be any kind of layoff in petrol outlets following automation, he replied in the negative saying, there will not be any layoffs since an employee still has to “physically fill” the fuel to customer. To another query, he said, the company tried “self-service’ model at some fuel outlets in Mumbai but discontinued it due to lack of patronage. “We tried that (concept) in Mumbai. We found that patronage to that initiative was negligible so we discontinued,” he said. Sundararaman was here to unveil co-branded fuel card eN-Dhan in association with city-based commercial vehicle maker Ashok Leyland which is expected to result in annual savings of about Rs 50,000 per annum to customers. Kemal Ishmael Authentic Jersey
Why India Is Bucking The Populist Trend By Refusing To Cut Fuel Prices
India, the world’s fastest growing oil consumer, is bucking an emerging market trend of populist measures to curb surging oil prices. While governments in Indonesia, Brazil and elsewhere are cutting or freezing prices, India is standing its ground on gasoline and diesel costs even after they rose as much as 16% this year. India has, so far, resisted the temptation to give relief to consumers and keeping a close watch on fiscal deficit goal, a move that helped Prime Minister Narendra Modi win a credit-rating upgrade from Moody’s Investors Service last year. The upshot is an acceleration in inflation that would worry an already-hawkish central bank. Authorities “have been very firm” on sticking to reform measures to allow domestic prices to be market determined, said Vikas Halan, a senior vice president at Moody’s in Singapore. “It doesn’t look like the government is thinking about bringing back some kind of price regulations.” Inflation has picked up sharply this year on the back of higher fuel prices, prompting the Reserve Bank of India (RBI) to raise interest rates last month. Data on Thursday showed consumer prices rose 5% in June from a year ago, the fastest pace in five months. Modi is seeking to narrow the budget deficit to 3.3% of gross domestic product in the fiscal year ending March 2019 from 3.5% in the previous year. To do that, he needs to preserve tax revenue from fuel levies and keep spending under control, a commitment that becomes more difficult to stick to as attention shifts to the general elections next year. Fickle reforms India has a history of going back on fuel reforms, a reason why investors still worry about the government missing its deficit targets. In April 2002, a coalition government led by the Bharatiya Janata Party allowed India’s state-run refiners to set retail prices twice a month, only to bar them shortly before elections in 2004. The next government reinstated price regulation until mid-2010, before freeing gasoline prices and allowing a staggered adjustment of diesel rates. Only in October 2014 — when oil was cheap — did Modi scrap controls on diesel prices. There’s reason for concern as elections near. Fuel retailers froze gasoline and diesel prices for three weeks earlier this year, coinciding with elections in Karnataka. “When energy prices are rising fast just ahead of a key election, there can be a temptation for governments to try to stabilize fuel prices,” said Kim Eng Tan, a sovereign analyst at S&P Global Ratings. “We have seen this behavior in various jurisdictions around the world.” For now, oil minister Dharmendra Pradhan has given assurances that the government won’t roll back policy reforms, saying in June there’s no question of reviewing the deregulation of fuel prices. With the general election usually held in phases and typically lasting a month, oil retailers would have to bear the cost of price-freezes if crude continues to climb. Oil is trading near the highest levels since 2014 as output disruptions and impending sanctions on Iran raise concerns of a global supply crunch. “For a short-term basis, we have been doing it to avoid very sharp fluctuations in the retail price,” Sanjiv Singh, chairman of nation’s biggest refiner Indian Oil Corp., said in an interview, referring to the price freeze that coincided with polls in Karnataka state. “But on a consistent, long-term basis or to absorb this sustention, probably I don’t think the companies have that kind of margin available with them.” James Harrison Womens Jersey
Comment – Oil at $250 a barrel? How we could get there, and India’s quandary
Earlier this week, most oil market watchers were startled when they came across reports that suggested oil prices could shoot to $250 a barrel. The prediction was made by Artem Avinov, leading analyst with TeleTrade, who was quick to add that it was a possibility and not a probability. But there are other scary forecasts doing the rounds. All this stems from the threat issued by Iran’s Revolutionary guards that Iran could block the Strait of Hormuz, a crucial artery for oil and LNG shipments, if Iran’s oil exports were harmed in any way. It must be remembered that almost half the world’s daily supply of crude passes through the Hormuz Strait (see map). Much of the crude from Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and the LNG from Qatar passes through the Strait of Hormuz. Another analyst Vladimir Rojankovski, expert at the International Financial Center in Moscow, told RT, that if exports through the Strait of Hormuz stop, “the law of supply and demand would double oil prices to $160 per barrel.” Is that possible? Yes. All that Iran has to do is to send in two tankers into the Strait and let them burn. The world’s oil trade will be at risk. Moreover, Iran has always been one of the top three oil suppliers to India after Saudi Arabia and Iraq). But during the past decade, India’s ability to plan its oil imports sensibly has been jeopardized because of the manner in which the US has played havoc in the Middle East – first with Iraq, then with Iran, then once again with Iraq, followed by Libya and Syria. Reasons Ostensibly, the present crisis stems from the US deciding unilaterally that it would not honour an agreement reached in 2015 with Iran on the manner in which it should continue with its nuclear plans. President Trump declared that the assurances given by Iran were not worth the paper they were signed on. While the other Security Council members have decided to honour the agreement, the US has decided to reject the agreement, and has unilaterally imposed sanctions against Iran. It has also warned every country of the sanctions being extended to them as well if they had anything to do with Iran. However, on May 17, the European Commission declared the US sanctions against Iran null and void in Europe. The Commission also instructed the European Investment Bank to facilitate European companies’ investment in Iran. On account of this, the blocking by the US of all banking transactions will not be possible this time. The US had succeeded in doing this last time, when many members of the Security Council members agreed to curb nuclear proliferation by Iran. But these crippling sanctions were eased once an agreement on this issue had been worked out. But that thaw ended when President Trump decided to abrogate the agreement. What should India do? The biggest problem for India is that it cannot afford to antagonise the US. At the same time, India is one of the largest importers of oil from Iran. Last year alone, the west Asian country supplied India over 27 million tonnes, making us Iran’s biggest buyer after China. That, in turn, makes the US breathe more heavily down the necks of Indian legislators in an attempt to “isolate Iran”. India has been told to take oil imports to “zero” by the cut-off date of November 4. If India rejects US pressure, it risks sanctions as well. As things stand, the US has also been pressuring India to reduce arms purchases from Russia, a move that India could find strategically unwise. If India submits to the US demand, it sours a relationship with an old ally. India has strategic interests in Iran as well. There is the Chabahar port (where it plans to invest $500 million) and the International North South Transport Corridor (INSTC) with an investment outlay of around $2 billion. Moreover, five months ago, in a highly publicized welcome for Iran’s President Hassan Rouhani, India promised to increase its oil imports by 25% this year. It also began negotiating a role for itself in the Farzad-B gas fields. Significantly, Iran’s other oil importers, China and Turkey, have said they will not accept the US diktat. So, what should India do? That is difficult to say at the moment. For now India is trying to negotiate a deal with the US. It has also opened channels with China, which could make India China trade as vitally important as the US-Canada trade. It is worth bearing in mind that the most robust cross border trade in the world is between the US and Canada which is estimated at over $2 billion every day. China has already secured its energy interests by building oil and gas pipelines with Russia, Kazakhstan and Myanmar. Russia has a robust trade with Germany which has refused to join the US in its sanctions against either Russia or Iran. This does make India appear a bit more vulnerable than other players in the region. This is because, despite its domestic production, India needs to import a lot of oil. What is more worrisome is that should Iran carry out its threat of blocking the Strait of Hormuz, the only big beneficiary will be the US, because it is already on its way to becoming the world’s top oil producer. Moreover, its profits also come from its equity stakes in almost every oil and gas exploration company in West Asia, excepting Iran, That would explain why the US could be a very interested party is keeping the oil markets jittery. This should also make India more wary of each move that the US makes. After all, it has already re-emerged as the biggest warmonger in the world. Of course, this has to be balanced with the imperative of keeping Trump, who appears reasonably favourably disposed to the country, onside. A newspaper report even suggests that India wants him to be chief guest
Indian joins Asian peers for smaller LNG contracts
Indian companies like their Asian peers are moving towards shorter and smaller orders for liquefied natural gas (LNG), revealed S&P Global Platts, a leading provider of benchmark prices and analytics for the energy and commodities markets. According to analysts, global natural gas price which is witnessing an increasing trend for the first time in past couple of years is driven mainly by rising crude cost and its influence on oil-linked supply contract. This is apart from the increasing demand globally including that from India which is among the largest importer of energy fuels. Talking on the changing trends in the Indian LNG market, Marc Howson, director, LNG Market Development at S&P Global Platts on the side-line of an industry event in Mumbai on Wednesday, said that the LNG buyers are shifting towards shorter and smaller contracts. According to Marc, among the major global gas hubs, the US still remains the cheapest in comparison to other sourcing countries, despite the high transiting cost on account of distance. India has been slowly registering a sustained growth with regard to LNG sourcing as government plans to double the share of natural gas in country’s energy mix to 15% in the medium term from just over 6.5% at present. The glut in global LNG supply combined with a drop in the price has also given further impetus to the government’s plan. Mack Hollins Authentic Jersey
LPG subsidy jumps 60% as govt maintains prices to help consumers
Cooking gas (LPG) subsidy has jumped by over 60 per cent in last two months as the government maintains price line despite rising international rates, Indian Oil Corp (IOC) Chairman Sanjiv Singh said. All LPG consumers have to buy fuel at market price. The government, however, subsidises 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users. “Subsidy amount (transferred in bank accounts) was Rs 159.29 per cylinder in May and it was raised to Rs 204.95 in June and to Rs 257.74 per cylinder this month,” he said. The higher subsidy was meant to keep rates of subsidised LPG in check, Singh added. International rates of LPG, which was used as a benchmark for pricing of domestic fuel, have been on the run since June. Non-subsidised or market priced LPG price was Rs 653.50 per 14.2-kg bottle in the national capital in May, which rose to Rs 698.50 (Rs 48 pr cylinder) in June. This month price has further risen by Rs 55.50 to Rs 754 in Delhi. Non-subsidised LPG is the one that consumers buy after exhausting their quota of below market rate fuel. It is also bought by those who have voluntarily given up subsidy and by commercial establishments. “While LPG prices have shot up, subsidised LPG rates haven’t,” Singh said, adding that only the minor tax part has been passed on to consumers. As per tax rules, GST on LPG has to be calculated at market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates. This has meant that GST is calculated every month on the rate at which domestic non-subidised LPG is priced. With rates on the rise, the tax has also risen, resulting in a minor increase in rates for subsidised users, he said. Subsidised LPG was priced at Rs 491.21 per cylinder in May, which rose to Rs 493.55 in June and Rs 496.26 this month, Singh noted.“The increase is mainly on account of GST on the revised price of Domestic Non-Subsidised LPG,” he said. As a result of higher global rates, the price of non-subsidised LPG in Delhi will increase by Rs 55.50 per cylinder.“The balance Rs 52.79 (Rs 55.50 minus Rs 2.71) is being compensated to the customer by an increase in subsidy transfer to their bank account. Accordingly, the subsidy transfer in the customer’s bank account has been increased to Rs 257.74 per cylinder in July as against Rs 204.95 per cylinder in June. Thus the domestic LPG customer is protected against the increase in international prices of LPG,” he said. Oil firms revise LPG price on first of every month based on average benchmark rate and foreign exchange rate in the previous month. Jacob deGrom Authentic Jersey
Five highways will have installations of LNG stations by next year
Leading oil marketing companies such as Petronet LNG Ltd., Indian Oil Corporation, BPCL and the like have huddled together to put up close to twenty LNG stations on various national highways to provide for LNG fed truck transport movement following instruction from the government, said Director (Finance), Petronet LNG Ltd., V K Mishra adding that tenders would be issued for this purpose in next 15 days. Addressing a Conference on “City Gas Distribution in India” under aegis of PHD Chamber of Commerce and Industry here today, Mishra clarified that this association of oil marketing companies have fructified on a pilot project base to feed roughly 5,000 trucks with LNG on leading five national highways, beginning 2019. “Following its successful experiment, this exercise would have a repeat in subsequent year of 2020 for another estimated 5,000 trucks that can run on national highways on LNG with a fuel cost saving of nearly 25 percent as well effectively addressing the issue of fuel pollution,” said Mishra. According to him, the necessary permission to put up such LNG distribution center on national highways has already been given since the government has asked the oil marketing companies to put up such stations to attack the twin issues of fuel cost savings as well sufficiently addressing the issue pertaining to increasing fuel pollution. In addition, the higher element of efficiency would also be brought in with large number of trucks running on national highways with LNG as it is deemed to be a cleaner fuel with virtually no element of pollution in it, pointed out Mishra. He also clarified that India is inspired for this initiative partly with China where close to three lakh of trucks are operation on their highways with LNG fuel and the team of oil sector experts is currently visiting China to study there this system. In order to broad base the exercise of running trucks on LNG fuel to begin with and subsequently passenger buses also on the same fuel on national highways, the oil companies have already asked the truck manufacturers such as TATAs and Mahendras to accordingly make such trucks as can be fuelled with cheaper and cleaner fuel such as LNG and the like. OSD to CMD, GAIL India Ltd. & Chairman, Energy Committee, PHD Chamber, Rajeev Mathur in his observations drove home the point that until EVs become the reality of the day, the natural gas should be encouraged as a better alternate fuel to feed the transportation sector as it would not only save on cost but also address issue of increasing vehicular pollution. Among others who also spoke on the occasion were co-chairmen, Oil and Gas Committee, PHD Chamber, H P S Arora and Pawan K Tibrawalla along with its Principal Director, Dr. Ranjeet Mehta. Brett Cecil Jersey
Kochi: More industries to get liquefied natural gas connections soon
More industrial units here are set to switch over to liquefied natural gas (LNG) from conventional fuels or LPG. IOAGPL is nearing completion of distribution network to Cochin Special Economic Zone (CSEZ) in Kakkanad, where 12 industrial units have applied for securing LNG connections. According to IOAGPL officials, they must lay pipes in two small stretches to complete the network to CSEZ. “Once these two joints are connected, the entire network to CSEZ will be ready. The pipe-laying work had to be stopped due to rain. We expect that the work can be resumed after the monsoon,” an IOAGPL official said. “The pipe-laying work for providing LNG connectivity to the industries in district industrial centre in Kalamassery has started,” he said. The IOAGPL has started registration and plumbing works at Aluva, Thrikkakara, Maradu and Eloor municipalities. “On major roads, we will adopt horizontal directional drilling (HDD). But, in the roads in Kochi corporation, HDD won’t work. If HDD is done in corporation roads through the shoulders of which water supply pipelines, KWA electricity lines and telecom lines pass through, these utilities may be damaged,” the official said. IOAGPL has given 1,200 PNG connections in Kalamassery municipality. The company had got permission for digging up roads in six wards each at Kalamassery and Thrikkakara municipalities. A total of 8,500 registrations have been completed in these municipalities. Matt Skura Womens Jersey