Essar Oil & Gas gets environment clearance to begin shale gas exploration
Essar Oil & Gas Exploration and Production (EOGEPL) has received environment clearance for exploring shale gas reserves in its Raniganj block in West Bengal, an official said. This follows the government’s decision to allow operators freedom to explore both conventional oil and natural gas as well as non-conventional sources such as coal-bed methane (CBM) and shale reserves within an exploration acreage. Previously, companies could explore only oil and natural gas or CBM, depending on their licence for the block. The official said the expert appraisal committee (EAC) in its January 29 meeting allowed Essar to drill 20 wells to explore shale gas in its Raniganj CBM block. It has been awarded an exploration lease for shale gas, CBM and hydrocarbons in the Raniganj block. EOGPL has got approval to drill 20 shale wells at a cost of Rs 10 crore. To start with, it will drill five wells in the block to test the shale potential. When contacted, company Managing Director and CEO, Vilas Tawde said: “We will start off with collecting the data. For this, we will need to drill the coal, identify the sweet spot and then drill horizontally for almost a km. Thereafter, we will analyse the coal, the shale, the strength of the shale, and the required volume.” “If this exploration is successful, we plan to drill around 220-250 wells that will require an investment of Rs 7,000 crore,” he said. EOGEPL has invested around Rs 4,000 crore in the Raniganj block, which will produce 1.7 million standard cubic metres per of gas from coal seams (CBM) in the next two years and ramp up to 2.5 mmscmd in the next three to four years. With the policy for simultaneous exploration of unconventional resources in place, EOGEPL is looking into the shale prospect in the same blocks, which is in the range of 7.7 trillion cubic metres. The official said the company could spend up to $1 billion in development of shale reserves if the exploration programme was successful. Essar has already signed an agreement to sell its entire production from the Raniganj East CBM block to state gas utililty GAIL India Ltd. Besides the Raniganj CBM block, the company also has a Mehsana CBM block in Gujarat, where it plans to drill six wells. The project will be completed in 18 months.
IGL to supply piped cooking gas, CNG in three UP districts
City gas distributor, Indraprastha Gas Ltd (IGL), today announced it has received the Letter of Intent from the downstream petroleum regulator to lay city gas distribution (CGD) network in the districts of Fatehpur, Hamirpur and the unauthorised areas of Kanpur in Uttar Pradesh. The three geographical areas were bid out under the recently held 10th round of CGD bidding conducted by the Petroleum and Natural Gas Regulatory Board. The company said in a statement the project is aimed at providing supply of compressed natural gas (CNG) and piped natural gas (PNG) in these districts and it is expected that the first CNG station and piped gas connection would be made available within a year. Commenting on the development, IGL’s Managing Director E S Ranganathan said that the company plans to set up seven CNG stations and provide PNG connections to 14,400 households in the next two years across the geographical area. “Along with domestic kitchens, IGL would also be providing gas connections to industries and commercial establishments like hotels, restaurants, and hospitals in the region,” he said. IGL is a joint venture between GAIL (India) and Bharat Petroleum Corp (BPCL). The firm currently supplies CNG and PNG in Delhi, Gautam Buddh Nagar, Ghaziabad, Rewari, and Gurugram. The company operates a CGD infrastructure consisting of over 12,500 kilometers of pipeline network and 482 CNG stations. It meets the fuel requirements of 10.5 lakh CNG vehicles and supplies PNG to 10 lakh households in Delhi and adjoining National Capital Region towns.
MSRTC to run buses on LNG, will save Rs 10 billion, says transport minister Diwavkar Raote
The Maharashtra State Road Transport Corporation (MSRTC), reeling under severe losses has decided to convert 18,000 buses in its fleet to run on Liquefied Natural Gas (LNG). The conversion will save Rs 10 billion annually, said transport minister Diwakar Raote. He was speaking during the foundation laying ceremony of a new bus stand and lodging facility for passengers at Pandharpur. The dignitaries from the Varkari community performed the rituals. Speaking at the programme Raote said, “The conversion will require technical modifications in the buses. In the first phase, 18,000 buses from different depots across the state will be modified. The cost of modification for each bus is around Rs 0.15 million. The modification will be completed in the next few months to operate the buses on LNG.” Raote hailed the decision as eco-friendly, though it involves minor repairs and modifications in the buses. “MSRTC will set up LNG pumps on the outskirts of the depots so that the private vehicle owners would also be able to buy the fuel from the pumps. The conversion will save annual expenditure of Rs 10 billion on diesel. Maharashtra is the first state in the country to run its buses on LNG,” Raote said. Referring to the passenger load during annual Pandharpur pilgrimage, Raote said that the revenue earned during the pilgrimage is sufficient to pay the entire staff. “Since it is the most important pilgrimage, MSRTC has to manage it separately. The Corporation has decided to pay Rs 750 pocket money to the wards of employees and also to pay for their higher studies abroad. The Corporation has launched Rs 0.1 million Fixed Deposit scheme for the daughters of the employees and 1,000 employees have been benefited from the scheme till now,” Ravate said. Losses to the tune of Rs 30 billion The MSTRC has an accumulated loss of Rs 30 billion. It suffered a massive setback as several buses were damaged during different agitations over the last year. The Corporation caters to more than 5 million passengers every day, had to suspend the services during the rallies and violent agitations. It caused revenue loss to the Corporation, Raote said. He said that the Corporation suffered losses to the tune of Rs 3.5 million during the Maratha Reservation agitation. Fondly called ST, it is the lifeline of the common man. The Corporation is serving the people despite heavy losses. He said that 175 buses were damaged during Maratha Kranti rallies across the state, while services from many depots were suspended for many days. This caused the revenue loss to the tune of Rs 21.5 million.
Petroleum Minisater dedicates three ONGC projects in Assam
The ONGC board accorded approval for the multi-specialty 300 bed-hospital project to be undertaken in three phases. Minister of petroleum and natural gas and skill development and entrepreneurship Dharmendra Pradhan inaugurated three mega projects of ONGC in Assam. Along with two engineering projects of ONGC related to oil processing and transportation, he also dedicated a multi-specialty hospital to the nation at Rajabari in Sivasagar in Assam. The ONGC hospital, the PSU’s single largest corporate social responsibility (CSR) project, is aimed at providing quality and affordable medicare to the people of Sivasagar and upper Assam. The ONGC board accorded approval for the multi-specialty 300 bed-hospital project to be undertaken in three phases. The first phase of this hospital building, with 50 beds, at a cost of Rs 990 million is getting ready for functioning. Competent and qualified doctors have already been recruited from the state of Assam by Dr Babasaheb Ambedkar Vaidyakiya Pratisthan (BAVP), the COM (Construction, Operation and Management) partner engaged towards implementing this project. Further, the recruitment process for paramedics, nurses and other support staff from Sivasagar and adjoining areas has been initiated. He also dedicated to the nation the effluent treatment cum water injection plant at Lakhmani oilfield of ONGC. This ONGC plant, built at an investment of Rs 880 million, will handle the effluent produced at Lakhmani and Demulgaon fields and after treatment inject the water into the reservoir for pressure maintenance.
Indonesia plans to sell 10 cargoes of LNG to spot market in H1 2019
Indonesia plans to sell 10 cargoes of LNG to spot market in the first half of 2019, said energy ministry official Djoko Siswanto, who is director general of oil and gas. There will be 1 cargo in April and 2 cargoes in May from Bontang LNG plant, 4 cargoes in June from Tangguh LNG plant, and 3 cargoes in March, May, and June from Donggi Senoro LNG Plant, he told a forum on Tuesday. Indonesia has 40 excess cargoes of LNG until 2025, Siswanto said.
India is consuming LPG like never before! What’s driving this phenomenon?
India is now the second largest consumer of liquefied petroleum gas (LPG) in the world, with LPG consumption in the country posting an average growth of 8.4%. And a lot of the credit goes to the government’s push to provide clean cooking fuel to every household through the Pradhan Mantri Ujjwala Yojana (PMUY). As on February 1, Oil Marketing Companies (OMCs) had released more than 63.1 million LPG connections under the scheme. In fact, a record 40.7 million new LPG connections were added in the current fiscal year alone, a jump of 45% over 2017-18, The Business Standard reported. Moreover, the three state-owned oil marketing companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation, and Hindustan Petroleum Corporation (HPCL) – have collectively set a target of adding 42.5 million customers by the end of this month. On the flip side, the mushrooming number of beneficiaries – up 77% since March 2015 – under the scheme is increasing the Centre’s subsidy burden. Under the PMUY scheme, the government provides a subsidy of Rs 1,600 to state-owned fuel retailers for every free LPG gas connection that they give to poor households. The LPG subsidy during the first nine months of the current fiscal is reportedly already 23% higher than last year’s figure – the Modi government shelled out Rs 25,700-crore subsidy over April-December 2018. The Budget for 2019-20 had, however, provided only Rs 202.83 billion in the Revised Estimates for FY19. Furthermore, the government expects the LPG subsidy to rise over 62% to Rs 329.89 billion for 2019-2020. A part of this is expected to be rolled over from the current year. Last week, IOC hiked LPG price by Rs 2.08 per cylinder and non-subsidised gas by Rs 42.50 per bottle, after three straight monthly reduction in rates totally around Rs 13. A 14.2-kg subsidised LPG cylinder now costs Rs 495.61 in Delhi while a non-subsidised one costs Rs 701.50. Those with family income of below Rs 1 million get subsidy for 12 cylinders. For March, subsidy on LPG cylinders is Rs 206 in Delhi. “With the number of consumers rising exponentially, it is time the government should consider further rationalising LPG subsidy,” an industry expert told the daily. The latest Petroleum Planning and Analysis Cell (PPAC) data reveals that total LPG consumption recorded a growth of 11.1% during January 2019 and a cumulative growth of 5.7% for the April-January period. “PSU OMCs together have 252.1 million active LPG customers in the domestic category which are being served by 22,654 LPG distributors. The LPG coverage of the country, estimated on the basis of active domestic connections and estimated households as on January 1, 2019, is around 89.9%,” read its LPG Profile report. To cater to the increased customer base, 3,030 LPG dealerships were reportedly added this year, compared to 724 in 2017-18. In January 2019, the northern region bagged the highest share in total LPG consumption (32.8%), followed by the southern region and western region at 27.2% and 22.9%, respectively. The eastern region and the northeast continue to lag behind at 19% and a miniscule 2%, respectively. Of the total number of consumers, around 242.7 million are reportedly covered under the direct benefit transfer of LPG Scheme (DBTL), or PAHAL. While speaking at the Asia LPG Summit last month Oil Secretary MM Kutty had claimed that as per the ministry’s projections and forecasts, LPG consumption in India is expected to grow 34% to 30.3 million tonnes by 2025 and 40.6 million tonnes by 2040.