Brazil’s Petrobras to bid in Israeli gas tender: Israeli minister
Israel’s energy minister said on Sunday that Brazilian state-run oil firm Petrobras will take part in a tender to explore for oil and gas off Israel’s shore. “It was agreed that Petrobras … will take part in a process of oil and gas exploration in Israel,” Energy Minister Yuval Steinitz told Army Radio as Brazilian President Jair Bolsonaro began a visit to Israel.
GAIL and BHEL signed MoU for development of Solar based power project
GAIL (India) Limited and Bharat Heavy Electricals Limited (BHEL) have inked a Memorandum of Understanding (MoU) today in New Delhi for cooperation in development of solar based power projects. Shri Santanu Roy, Executive Director (Business Development), GAIL and Shri S. Seetharaman, General Manager (Renewable Energy & Water Business), BHEL signed the MoU in presence of Shri Manoj Jain, Director (Business Development) GAIL and Shri S. Balakrishnan Director (IS&P) BHEL. GAIL shall be the project developer and BHEL shall act as an Engineering, Procurement, Construction and Project Management Contractor. BHEL shall also provide Operation & Maintenance services during the initial period upon becoming successful bidder. This development will help both the companies to leverage their competitive strengths to build substantial portfolio in solar power projects in line with INDC targets of Government of India. The MOU aims at building a closer strategic partnership between the two Maharatna PSUs for jointly pursuing commercial solar power projects through participation in Tariff / Viability Gap Funding (VGF) based competitive bidding process. Speaking on the occasion, Shri Manoj Jain, Director (Business Development) stated “GAIL is a proud member of India’s clean energy infrastructure and is always committed to incorporate initiatives for sustainable development of the nation. We are happy to enter into this strategic relationship with BHEL, a pioneer in India’s Engineering sector. The skills and strengths of both the companies would create a synergy for achieving the objective of MoU.” GAIL (India) Limited is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG regasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 11,400 km of high pressure trunk pipelines. It is working concurrently on multiple pipeline projects, aggregating over 5400 kms at an investment of about Rs. 240 billion, to operate over 16,000 kms by 2021. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. GAIL also has a formidable market share in City Gas Distribution and is currently operating in 38 cities/Geographical Areas directly and through its eight Joint ventures/ subsidiaries. In the Liquefied Natural Gas (LNG) market, GAIL has one of the largest portfolios in the world. GAIL has hired its first LNG vessel “Meridian Spirit” on time charter basis to transport US volumes to India. GAIL is also expanding its presence in renewable energy like solar and wind. In fact, it has India’s second largest rooftop solar PV power plant at its Petrochemical Complex at Pata, Uttar Pradesh. It has overseas presence through offices and subsidiaries in the US, Singapore and Myanmar. BHEL is one of the few companies in the world, and only company in India, having capability to manufacture the entire range of Power plant equipment and has proven turnkey abilities for executing Power projects from concept to commissioning in the field of Thermal, Gas, Hydro and Nuclear. BHEL has also been in the field of design, engineering, manufacturing, installation and commissioning of solar power plants over three decades and has a portfolio of more than 700 MW. BHEL is the only company in India having manufacturing capability of almost entire range for Solar equipment i.e. Solar Cells, Solar Modules, SCADA, Inverters, Power Transformers, Switchgear and Modules Mounting Structures with tracking system. BHEL has a dedicated R&D centre for Solar PV at ASSCP, Gurgaon to develop high efficiency Solar Cells and process optimization.
Russia’s Gazprom to start Baltic gas processing and liquefaction project
Russian gas producers Gazprom and RusGazDobycha will start a major gas processing and liquefaction project near the Baltic Sea port of Ust-Luga, Gazprom said on Friday. The project will have a capacity of 13 million tonnes of liquified natural gas (LNG), while investment in the project will total 700 billion roubles ($10.67 billion), it said. The first block of the complex is to become operational in the second half of 2023 and the second block by the end of 2024, Gazprom said.
Indian Oil Corporation to set up 150 stations for CNG supply in Bihar
The Indian Oil Corporation (IOC) will soon set up at least 150 stations for supply of compressed natural gas (CNG) across the state. The decision was made after the IOC was chosen for distribution of CNG at the 10th City Gas Distribution (CGD) Bidding Round conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB). The PNGRB is the nodal body which authorizes the development and maintenance of CGD networks in different geographical areas. IOC (Bihar-Jharkhand) executive director Vibhash Kumar told this newspaper that the corporation had been trying its best to switch to natural gases for several years to control greenhouse gas emissions in the environment. “Since more and more people are switching to natural gases, we will set up CNG stations in 21 districts, including Araria, Begusarai, Aurangabad and Rohtas, during the first phase,” Kumar said. The project of supplying CNG and PNG in the state is part of the Jagdishpur-Haldia-Bokaro-Dhamra pipeline project under the Pradhan Mantri Urja Ganga Yojana which will connect the eastern and north-eastern states with the national gas grid. According to IOC sources, apart from supplying CNG to vehicles and piped natural gas to more than one lakh households for domestic purposes across the state, the corporation will also supply these gases to industries and factories. Prime Minister Narendra Modi had inaugurated three CNG stations at Naubatpur, Rukanpura and Bypass Road from Barauni on February 17.
DGH seeks data on ONGC’s top 47 fields after rejection of bid to privatise fields
After a plan to privatize ONGC’s biggest oil and gas fields was nipped in the bud, upstream regulator DGH has asked the state-owned firm to submit detailed data on its top 47 fields to monitor production and projects to raise output, an official order said. A high-level committee headed by NITI Aayog Vice Chairman Rajiv Kumar had in late 2018 considered “transferring” giants such as Mumbai High, Vasai East and seven other fields of ONGC to private/foreign companies but had to shelve the plan in face of strong opposition from both within the government and the company. The final report that the committee submitted on January 29 had watered down the proposal by recommending freedom to national oil companies (NOCs) to choose field-specific implementation model including farm out, joint venture or technical service model for raising output from 59 fields — 47 of ONGC and 12 of Oil India Ltd (OIL) that contribute 95 per cent of the country’s current output. The report, which suggested asking NOCs to provide enhanced production profile for all the fields that were given on nomination basis, was approved the Union Cabinet headed by Prime Minister Narendra Modi on February 19. Subsequent to that, the Directorate General of Hydrocarbons (DGH) on March 20 wrote to Oil and Natural Gas Corp (ONGC) and OIL to submit “by the second week of July 2019” all “data pertaining to 59 nomination fields of NOCs.” DGH said the timetable for submission of all data pertaining to 59 nomination fields of NOC was finalized in a meeting chaired by Secretary, Petroleum and Natural Gas, on March 7. It prescribed formats for submission of the data which should include exploration and development history of the field, reservoir characteristics, well details, oil and gas initially in place and field production history since inception. Besides, technical data including raw 2D and 3D seismic data as well as gravity magnetic and petrophysical data, well completion report, cost incurred, reservoir performance and report on field infrastructure has been sought in as many as 10 different forms, according to the DGH letter. While private investment in upstream oil and gas exploration and production has been elusive due to regulatory uncertainties, the Petroleum Ministry blamed NOCs for not doing enough for the flagging domestic production. Modi has set a target of cutting oil import dependence by 10 percent to 67 percent by 2022. But faced with dipping domestic output and rising demand, the import dependence has risen to 83 percent. The ministry, as well as some in the industry, believe the easy way to raise output would be to hand over ONGC’s top fields to private/foreign companies who can infuse technology to raise output. NOCs, on the other hand, say they too can get technology provided they are given the same liberal fiscal terms that are promised to private and foreign companies. Twice during the current government’s regime proposals were moved to farm-out or privatise ONGC fields but were shelved in face of opposition, industry sources said adding the latest bid came in late 2018.
Spot deals make up more of global LNG market as sellers get flexible
Spot trades and other short-term deals are making up more of the transactions in the global liquefied natural gas (LNG) market as producers in the United States and Russia offer more flexible volumes and traders increasingly handle cargoes. Spot and short-term LNG trades, defined as cargoes delivered through contracts of four years or less, made up 32 percent of overall import volumes in 2018, up from 27 percent of imports in 2017, the Paris-based International Group of LNG Importers (GIIGNL) said on Monday in its annual report. Cargoes delivered in less than three months from the transaction date increased to 25 percent of the market in 2018, compared with 20 percent in 2017, the GIIGNL said. “For LNG importers, long-term partnerships, destination and volume flexibility as well as the ability to optimize or arbitrage between Asian and European markets remain key,” said GIIGNL President Jean-Marie Dauger in an emailed statement. “In China, in India and South East Asia, in particular, LNG’s environmental benefits and its versatility make it particularly attractive as a destination fuel for thermal power generation and cogeneration, in the industrial and commercial sectors as well as in a growing variety of fields like marine and road transportation.” Australia was the biggest exporter of spot and short-term volumes in 2018 as new projects in the country started up, followed by the United States and Qatar, the GIIGNL said. Qatar’s share of spot volumes dropped to 12 percent from 20 percent as it lost its position as the leading supplier of flexible volumes, the group said. The three biggest LNG importing countries – Japan, China and South Korea – absorbed just over half of the global spot volumes traded, while India’s spot purchases increased as its natural gas demand growth exceeded domestic production, the group said. Re-exports also increased due to better arbitrage opportunities. Overall, the global LNG market grew by 8.3 percent from the previous year to nearly 314 million tonnes in 2018, more than three times the size of the market in 2000, GIIGNL said. That was the third-largest annual increase after 2010 and 2017. The market is likely to reach a tipping point this year, with many long-term contracts starting to expire and as new supply comes on stream, Dauger said, adding that the industry needs to become more innovative and efficient in trading. GIIGNL has 81 member companies headquartered in 26 countries and handles more than 90 percent of global LNG imports.