Gujarat: Ship with 2.3L litre diesel runs aground, no fear of fuel spill
The Indian Coast Guard and other agencies sprung into action after a ship, carrying 2.3 lakh litre diesel, ran aground near Porbandar. Authorities, however, said there was no threat of oil spill, and that they have begun removing the fuel. According to the Coast Guard, the vessel was shifted temporarily to the inner anchorage at Porbandar on Saturday morning to make way for an inbound vessel. The vessel had reportedly drifted aground at 8.30 am on Monday after its anchor cable parted, and ran aground about 400 metre away from the old lighthouse outside Porbandar harbor. “The vessel did not pose any threat to navigational safety, but potent threat of oil pollution loomed over the Gujarat coast as it was carrying about 230 KL high-speed diesel on-board,” Coast Guard said in a release. The agency said that it mobilised its personnel and resources on receiving information about the potential threat. A pre-assessment helicopter sortie was conducted in the morning, and arrangements to remove the fuel were being undertaken by winching down Coast Guard personnel and equipment. “There is no immediate threat, but in order to ensure safety of the coast and marine ecosystem, defueling of diesel from the ship to shore has commenced,” Coast Guard said in a release, adding that it would take approximately 36 to 48 hours. “The prompt actions have averted marine pollution threat in the area as there are no signs of spillage in the immediate vicinity,” the agency said. The Coast Guard said it is also in the process of establishing a Pollution Response Team based at Vadinar to respond to any eventualities. Incidentally, the vessel, MV Hennry, was intercepted and was caught smuggling 1,500 kg heroin worth Rs 3,500 crore, in a joint operation by the Coast Guard and the Narcotics Control Bureau in July last year. This was touted as the single largest drug haul in the country and over a dozen people were arrested. After due judicial processes, the vessel was auctioned to Porbandar’s Khodiyar Trading. Joe Montana Womens Jersey
Wary of high gas prices, Essar to go slow on plan to build LNG terminals
With natural gas prices shooting up globally, Essar Ports is going slow on its plans to build liquefied natural gas terminals at the Hazira port in Gujarat, chief executive officer Rajiv Agarwal told Mint. Last September, the Ruia family-promoted Essar Ports announced its intent to build a cluster of four LNG terminals, with capacities of 2.5-5 million tonnes per annum (mtpa) to cash in on the growing demand for clean fuel. “We are still working on this proposal; we’re getting environment approvals for Hazira and studies are being done,” said Agarwal. “But work will take at least 15 more months to start.” “Look at the price of LNG,” he said. “If the outlook turns positive, we will set up the terminals. Otherwise, we will slow it down. When we first talked about setting up these terminals, LNG prices were at $5-6 per million British thermal unit (mmBtu). Now it’s $10-11 mmBtu; so who’s going to buy? We’re watching what direction crude and LNG prices take.” Asian spot prices of imported LNG rose to their highest levels this summer since mid-2014 because of production cuts in the US, Australia and Malaysia while China ramped up LNG procurement in recent months to offset air pollution levels, making it the world’s second-largest LNG buyer after Japan. While spot prices for July delivery in North Asia reached a high of $11.6 mmBtu, at the same time last year, prices had hovered at the $6 mmBtu mark. India has LNG terminal capacity of 21.25mtpa belonging to Indian Oil Corporation, Petronet LNG and Shell. The three companies are also working on increasing the capacity to 56mtpa by 2020. Essar Ports, which develops and operates ports and terminals to handle liquid, dry bulk, break bulk and general cargo, is also ramping up its dry bulk cargo handling capacity at Hazira. Besides, Essar Ports operates three more terminals, Salaya on the west coast and Visakhapatnam and Paradip on the east coast. The operational capacity of port terminals is 95mtpa, and is expected to increase to 110 mtpa by 2020. Agarwal had recently said Essar Ports would be investing $70 million to increase the capacity at Hazira from its current 30mtpa to 50mtpa by 2020. Last week, Essar Ports commissioned a 24 mtpa iron ore handling complex at Vizag port. Essar Vizag Terminal Ltd will operate the berth on a 30-year concession from the Vizag port trust. Agarwal said Essar Ports reported revenue of $190 million in fiscal 2018. The company’s current debt stands at $600 million. It has a debt-to-equity ratio of 1.6. Patrick Onwuasor Womens Jersey
UK’s Cuadrilla completes second shale well, waits for fracking permit
* Cuadrilla said it has completed drilling Britain’s second horizontal shale gas well at its Lancashire shale gas licence and will apply for consent to hydraulically fracture it “in due course”. * It says it expects to hydraulically fracture first well in the latter end of the third quarter of this year, subject to government consent. * The privately-owned company applied for consent to fracture the first well in May. * “Following hydraulic fracturing of the first two horizontal wells, Cuadrilla will run an initial flow test of both wells for approximately six months with plans to then eventually connect those wells to the local gas grid network in 2019.” * Shale gas production is a contentious issue in Britain due to environmental groups’ concerns over potential water contamination, increased industrial activity and because it means investing in fossil fuels rather than renewable energy. * Cuadrilla has sought and gained injunctions to prevent trespass at its exploration site, fearing protestors would disturb work. * In Scotland, there has been an effective moratorium on shale drilling although a Scottish court recently ruled the devolved government’s policies did not amount to an outright ban. Josh LeRibeus Womens Jersey
Russia and Ukraine in EU-backed talks to avoid fresh ‘gas wars’
Officials from Moscow and Kiev were set to gather in Berlin on Tuesday for EU-backed talks on the future of the transit of Russian gas through Ukraine in a bid to minimise disputes when the current contract expires next year. Russian gas giant Gazprom has already dramatically reduced the volume of gas transiting via the country, as Moscow and Kiev remain at loggerheads over the annexation of Crimea and simmering conflict in the east of Ukraine. Kiev fears the loss of revenue from transit taxes, on top of being bypassed politically as well as physically by new gas pipes. The meeting will bring together delegations from Gazprom and its Ukrainian counterpart Naftogaz, which have been locked in legal battles for years. Russian Energy Minister Alexander Novak and Ukrainian Foreign Minister Pavlo Klimkin will also be present. “It is clear that time is of the essence. The negotiations that lie ahead of us are complex,” said European Commission Vice President Maros Sefcovic ahead of the talks. The meeting will focus on Gazprom’s plan to construct and put into operation by the end of next year the Nord Stream 2 gas pipeline, which would bring gas to Germany via the Baltic Sea, bypassing Ukraine. The pipeline will follow the track of the existing Nord Stream 1 and will double the amount of Russian gas arriving in the European Union’s most powerful economy via this route. Germany has long insisted this is a purely “commercial” project and in March lifted the final obstacles to its construction. But the following month German Chancellor Angela Merkel delivered an unexpected blow to Moscow’s strategic initiative, insisting Ukraine should continue to play a key role in the transit of gas to Europe. “There are also political factors to take into consideration,” Merkel said at a joint press conference in Berlin with Ukrainian President Petro Poroshenko at the time. “(Nord Stream 2) is not possible without clarity regarding the transit role of Ukraine,” she said. For his part, the Ukrainian president said the project was “absolutely political”. “Why spend tens of billions of dollars to make the European economy less efficient, less competitive and the energy politics of the EU more dependent on Russia?” The project has also been criticised by US President Donald Trump. The United States has an interest in selling shipped liquified natural gas (LNG) to Europe, but for the moment this is much less economically viable than Russian gas. “So we will be selling LNG and competing with the pipeline. I think we’ll compete successfully. Although there is a little advantage location-wise,” Trump said after meeting with Russian President Vladimir Putin in Helsinki today. Another project, the Turkish Stream pipeline, is further set to reduce the role of Ukraine in gas transit. But Putin was conciliatory, saying Russia was ready to keep up transit via Ukraine after Nord Stream 2 becomes operational and extend the transit agreement. Putin said this was possible if Ukraine’s national gas company Naftogaz and Gazprom resolve their gas dispute at a Stockholm arbitration court. European demand for gas has been rising since 2015, largely because of a drop in production in the Netherlands. Last winter Gazprom raised exports to the continent to a record high thanks to the cold weather. On the record day of March 2, gas pipelines delivering Russian gas to Europe were working at up to 99 per cent of their capacity, said researcher Jack Sharples in a recent publication by the Oxford Institute for Energy Studies. “Gas transit via Ukraine will continue to be necessary in substantial volumes throughout the year until Nord Stream 2 and Turkish Stream are launched,” he said. But after that the role of Ukraine would depend on an agreement reached with the European Commission or the demands of clients, he added. Thierry Bros, a researcher at the Oxford Institute for Energy Studies, said the sides must not only reach an agreement about what happens after 2019, but also what happens now — given that Gazprom is turning to the courts to demand the annulation of its current contracts with Ukraine. “Now a global contract must be reviewed with two unknowns — the Nord Stream 2 project and the transit tariff, since we do not know what Ukraine will propose,” he told AFP. “If this were just a commercial question, Ukraine would be able to make Nord Stream 2 uncompetitive by lowering its own transit tariffs,” he said, though in fact Kiev is asking in courts for the rate to be increased to make up for the decline in volume. Ronde Barber Jersey
Goa top fuel guzzler, per capita petrol sales 6 times national average of 19 kg
Goa consumes more petrol and diesel on a per capita basis than any other state in the country, while Bihar uses the least. Per capita sales of petrol in Goa were 119.7 kg in 2017-18, over six times the national average of 19 kg, according to oil ministry data. In a diesel, at 225.6 kg, Goans consumed almost three-and-half times the fuel than the national average of 66.9 kg. By contrast, in Bihar, per capita sales were 6.7 kg for petrol and 22 kg for diesel, about one-third the national average. Economic activity, tourist flow and inter-state variation in taxes largely contribute to the differences in per capita consumption of petrol and diesel among states, according to BS Canth, a former marketing director at Indian Oil Corp. “The population of Goa is small but number of vehicles on the road is always high due to a huge inflow of tourists. This results in higher per capita consumption of petrol and diesel in Goa,” said Canth. Tourism as well as dependence on diesel for power drive up per capita consumption of petrol and diesel in some union territories as well. Puducherry, Andaman & Nicobar Islands, Dadra & Nagar Haveli and Daman & Diu have sharply higher consumption than the national average. A lower economic activity and higher population in Bihar keep it at the bottom of the fuel consumption chart. Some states with lower taxes on fuel benefit from higher fuel sales as vehicle owners from bordering states drive down to filling stations offering cheaper fuel. For instance, a resident of Noida, Uttar Pradesh, is more likely to tank up his car in Delhi as the fuel is relatively cheaper in the national capital. Similarly, a truck driver going to Mumbai from Delhi is more likely to stop at a filling station in Haryana where fuel is cheaper due to lower taxes. This is one key reason Haryana has the second highest per capita consumption of diesel at 203 kg. In overall volume, Maharashtra topped the chart with sales of 3226,000 metric tonnes of petrol and 8673,000 metric tonnes of diesel. Uttar Pradesh was the second-biggest consumer in both petrol and diesel. Ryan Kalil Womens Jersey
Europe still hooked on Russian gas supplies despite a desire to reduce its dependence
The EU hosts Tuesday talks between Moscow and Kiev on Ukraine’s gas transit role, as Europe imports ever more Russian gas despite a desire to reduce its dependence on Moscow. Here is where Europe stands in terms of its energy reliance on Russia: European demand for Russian gas declined between 2010 and 2014 — when a popular uprising in Kiev ousted a Moscow-backed regime and Russia annexed Crimea and moved to support an insurgency in the ex-Soviet country’s east. Since then it has grown on the back of a drop in European production — notably in the Netherlands. The continent’s reliance on imported gas has particularly benefited the Russian gas giant Gazprom, which sits on 17% of the world’s gas reserves. Gazprom is more than 50% controlled by the Russian state and is often seen as a powerful geopolitical weapon at the Kremlin’s disposal. The company currently accounts for more than a third of European gas consumption. Exports to Europe lept in 2016 and 2017, thanks largely to a cold winter. Earlier this year Gazprom announced a new record export volume. Russian gas currently reaches Europe through several pipelines — Nord Stream 1 brings gas to Germany, while two pipelines arrive in Poland through Belarus. Four others go through Ukraine, as well as a separate pipeline to Turkey and direct deliveries to Finland and the Baltic states. But Gazprom is seeking to develop new pipelines, with the financial support of major European groups, to maintain its market share and minimise transit through Ukraine. The company hopes to put into operation two new gas pipelines that will bypass Ukraine by the end of 2019: TurkStream, via Turkey, and Nord Stream 2, via the Baltic Sea. The European Commission has reservations about the projects. Without being able to oppose them, it wants to make sure the new pipelines conform to the rules of the European energy market — particularly in terms of competition. Poland and eastern European countries are most opposed to their former Soviet master’s new ventures. Despite Europe’s desire to diversify its suppliers, alternative sources are struggling to gain ground. The United States, a major producer of natural gas, has recently embarked on a commercial offensive in search of new markets, supported by President Donald Trump. But shipping liquified natural gas is still considerably more expensive that transporting Russian gas via pipelines. British oil major BP in July began exploiting a giant gas field in Azerbaijan, which is to be the first link in the “Southern Gas Corridor” that will bring supplies to Europe via Turkey, Greece, Albania and the Adriatic Sea. It is set to be completed in 2020. But experts say that the project, launched in the early 2000s, is already outdated and will ultimately cover just two% of European demand. Andre Reed Authentic Jersey
India’s oil import bill balloons 57 per cent to $12.73 billion in June
India’s import bill of crude oil and petroleum products swelled 57 per cent to $12.73 billion in June as compared to the same month last year. The ballooning of oil import bill comes on the back of a 60 per cent rise in Brent, the benchmark for half the world’s crude, to $76 per barrel last month. Energy hungry India meets over 82 per cent of its crude requirement through imports. The recent surge in international oil prices has resulted in worsening of Current Account Deficit (CAD) and fiscal deficit for the domestic economy apart from an inflated petroleum subsidy and high inflation. The increase in global crude oil prices led to CAD widening by $16.60 billion to a five-year high in June, wholesale inflation shooting up 5.77 per cent, a four-and-a-half year high, and retail inflation growing to a five-month high of 5 per cent. Total oil import bill in the first quarter of the current fiscal increased 49 per cent to $34.64 billion, as compared to $23.18 billion in the corresponding quarter last fiscal. The country’s CAD is likely to hover between $22 billion to $31 billion in the current financial year ending March 2019. “Brent crude averaging $70 per barrel in FY19 will translate into Indian crude oil basket averaging $68 per barrel. If the rupee averages 66.6/USD in FY19, net addition to CAD would be $22.23 billion. However, if the Indian crude basket averages $72.86 per barrel and Rupee averages 68.00/USD, net addition to CAD would be $31.20 billion,” research agency India Ratings said in a report. According to Petroleum Planning and Analysis Cell (PPAC), the statistical arm of the oil ministry, India’s crude oil import bill, excluding petroleum products, is expected to increase 24 per cent to $109 billion in the current fiscal. “The Indian economy has the resilience to withstand and absorb the oil price shocks for few months, but if oil prices remain high beyond 2-3 months, it will adversely impact all the major macroeconomic variables such as current account, currency, inflation, interest rate, fiscal deficit, GDP growth and conduct of monetary policy,” the report said. Moody’s Investor Services has also pointed out that the surge in international oil prices will result in the country’s petroleum subsidy ballooning to Rs 53,000 crore, putting pressure on the country’s fiscal deficit. The Union Budget 2018-19 had allocated Rs 24,933 crore as petroleum subsidy for the current financial year, a mere 2 per cent increase over the Revised Estimate of Rs 24,460 crore allocated last financial year. The finance ministry Ministry expects the country’s fiscal deficit to land at 3.3 per cent of Gross Domestic Product (GDP) this fiscal. KeiVarae Russell Womens Jersey
Relief for India? US to consider waivers on Iran sanctions, says Mnuchin
he United States in certain cases will consider waivers for countries that need more time to wind down imports of oil from Iran as it seeks to avoid disrupting global oil markets while reimposing sanctions against Tehran, US Treasury Secretary Steven Mnuchin said. “We want people to reduce oil purchases to zero, but in certain cases, if people can’t do that overnight, we’ll consider exceptions,” Mnuchin told reporters on Friday, clarifying some US officials’ comments that there would be no exemptions. Mnuchin’s comments were embargoed for release on Monday as other US officials were expected to begin talks in India this week on cutbacks in Iranian oil supplies. Mnuchin spoke to reporters while en route from Mexico, where he was part of a high-level US delegation led by Secretary of State Mike Pompeo to meet Mexico’s next president, Andres Manuel Lopez Obrador. The Trump administration is pushing countries to cut all imports of Iranian oil from November, when the United States reimposes sanctions against Tehran. Trump withdrew from the multi-national 2015 Iran nuclear deal against the advice of allies in Europe and elsewhere. A delegation from the US State Department and US Treasury are expected for talks in Delhi this week to discuss Iran sanctions, according to Indian officials. US crude oil exports to India hit a record in June as Indian refiners moved to replace supplies from Iran and Venezuela. Andrew Lipow, president of Lipow Oil Associates in Houston, said India was expected to ask the United States to ensure adequate global oil supplies as Washington presses countries to cut back on Iran oil. “That might include pressure to release oil from the Strategic Petroleum Reserve, which the administration indicated they were considering on Friday,” said Lipow. “To put things in context, if we were to look at Iran in total, it’s exporting roughly 2.2 million barrels a day of sales, of which half is going to both China and India,” he said. “It’s very important for the US to get India on board with the sanctions policy.” Mnuchin said he would meet with counterparts from developed and developing countries during a G20 finance ministers’ meeting in Buenos Aires this week. US sanctions against Iran are likely to be raised in his talks on the sidelines of the event. “We’ve said very specifically, there’s no blanket waivers, there’s no grandfathering,” Mnuchin said. “We want to be very careful in the wind down around the energy markets to make sure that people have the time.” “The State Department has the ability to issue waivers around significant reductions in the oil markets. That’s something that Treasury and State will be doing,” he said. French request rejected Mnuchin said Washington had made clear to allies that it expects them to enforce the sanctions against Iran, “but if there are specific situations we’re open to listening.” French Finance Minister Bruno Le Maire said over the weekend that Washington had rejected a French request for waivers for its companies operating in Iran, according to Le Figaro. Paris had singled out key areas where it expected either exemptions or extended wind-down periods for French companies, including energy, banking, pharmaceuticals and automotive. The Trump administration has said more than 50 foreign companies have withdrawn their business from Iran since Trump announced the US was withdrawing from the 2015 nuclear deal between Iran and the United States, Germany, France, Britain, China and Russia. Pompeo, also speaking to reporters on Friday, said he had discussed US plans to reimpose sanctions on Iran with “all but one” country. He did not name the country he had not yet consulted. “What they’ve asked us to do is review how we get there and the timeline for that,” he said. “I’m very confident they understand.” Iranian Foreign Minister Mohammad Javad Zarif tweeted on Monday that Iran had filed a complaint with the International Court of Justice in the Hague against unilateral US sanctions. “Today Iran filed a complaint @CIJ_ICJ to hold US accountable for its unlawful re-imposition of unilateral sanctions,” Zarif tweeted. “Iran is committed to the rule of law in the face of US contempt for diplomacy & legal obligations. It’s imperative to counter its habit of violating int’l law.” The court could not be reached for comment. Iranian President Hassan Rouhani, in remarks carried live on state television on Saturday, said Washington was more isolated than ever over sanctions against Iran, even among its allies. His comments appeared to be trying to ease local concerns fuelled by Trump’s decision to withdraw from the nuclear deal with Iran. The likely return of US economic sanctions has triggered a rapid fall of Iran’s currency and protests by bazaar traders usually loyal to the Islamist rulers. Trump has said he asked Saudi Arabia to raise oil production if needed to ensure global oil supplies and the country has 2 million barrels per day of spare capacity. The Organization of the Petroleum Exporting Countries (OPEC) agreed with Russia and other oil-producing allies on June 23 to raise output from July, with Saudi Arabia pledging a “measurable” supply boost, but giving no specific numbers. Jason Spezza Womens Jersey
Fitch Says Large Capex May Push Indian Oil’s Debt Higher
Fitch Ratings today said it expects state-owned Indian Oil Corp.’s net debt levels to increase due to its large capital expenditure and investment plans. “Fitch expects the Indian Oil Corporation’s capex to remain high to upgrade refineries to meet new emission standards (BS-VI) and to expand refining and petrochemical capacity, including the expansions which are currently underway,” it said in a media statement. The ‘BBB-’ rating with a stable outlook “equalizes the India-based company’s rating with that of its largest shareholder, the State of India (BBB-/Stable)”, the statement said. The rating agency forecast an average capex of Rs 250-300 billion per annum over the next five to six years. It said IOC’s financial profile is likely to remain moderate over the medium term. IOC has reduced its net leverage to 2 in financial year 2017-18 from 2.7 in the financial year ended March 2016 due to higher gross refining margins. We expect IOC’s net debt levels to increase due to its large capex plans in the medium term. However, we believe IOC’s credit metrics will remain comfortable with net leverage of around 2.5 times over the next two to three years, provided its dividend outflow normalises from the high levels of the last two years . Fitch Ratings The statement said it had assessed IOC’s standalone profile at ‘BB+’ to reflect its dominant market position as the largest oil refining and marketing company in India, improving the complexity of its refining assets and a moderate financial profile. “High capex requirements are likely to keep free cash flows negative over the next few years,” Fitch said. It said IOC is exposed to the international crude-refining cycle as reflected in the volatility of its historical GRMs. However, the ongoing refinery upgrades are likely to lower the volatility impact over the medium term. “We also expect IOC to benefit from strong demand for petroleum products in India over the medium term in light of its dominant market position,” it said. Christian Kirk Jersey
LNG spot prices in decline
According to Reuters, Asian LNG spot prices are continuing to correct drop with potentially steeper dips expected ahead. One of the identified causes is low demand from China and India, contrasted with healthy supply. Recent tender deals appear to confirm the bearish condition of the market. Spot prices for August LNG-AS delivery in Asia were assessed at US$10 per million Btu. This is 10 cents from the previous assessment and LNG prices may be a shade lower heading into September. Chinese buyers may be waiting for prices to fall further before wading into the spot market, however, total LNG imports into China remain brisk. Lower prices may also tempt Indian buyers back into the market but for now demand remains limited with only Gail recently wrapping up a tender purchase for a single late July cargo. Archie Manning Jersey