British Gas owner Centrica expects tough H1 trading conditions
Britain’s largest energy supplier Centrica faces a challenging trading environment in the first half of the year due to a national cap on energy prices, warmer-than-normal weather and weak UK natural gas prices, it said on Monday. The company, whose British Gas unit is Britain’s largest energy supplier, said these factors would impact financial performance in the first half of 2019, but maintained its full-year outlook for operating cash flow and net debt. The company said it expects to achieve 2019 adjusted operating cash flow in the 1.8-2 billion pound range but said the tough trading conditions would put pressure on the outlook for the year. British energy regulator Ofgem was told by parliament last year to cap energy prices after lawmakers said customers were being overcharged for electricity and gas. Prime Minister Theresa May had called the tariffs a “rip-off”. Centrica said earlier this year the cap on standard energy prices would lead to a 300 million pound ($390 million) hit to profits in 2019, including a one-off impact of about 70 million in the first quarter of 2019. The company on Monday said its performance could be impacted by low output from Britain’s eight nuclear plants, in which it owns a 20% stake. France’s EDF owns the remaining 80% in the plants. The Hunterston plant has been offline since last year after cracks were found in the cores of its two reactors, while the two reactors at the Dungeness site are also currently offline and not expected to return to service until later in the year. Centrica hopes to sell its stake in the nuclear fleet by the end of 2020 and said it would likely provide an update at its interim results. “We intend to provide a strategic update regarding our portfolio and prospects at the time of our interim results in July,” Chief Executive Iain Conn said in a statement. Shares in the company rose around 3% on Monday morning as analysts described the trading update as mildly positive. “Despite a number of negative external factors (warm weather, outages at EDF-operated nuclear plants, falling gas prices), Centrica has confirmed all 2019 targets,” analysts at Jefferies said in a research note.
British Gas owner Centrica expects tough H1 trading conditions
Britain’s largest energy supplier Centrica faces a challenging trading environment in the first half of the year due to a national cap on energy prices, warmer-than-normal weather and weak UK natural gas prices, it said on Monday. The company, whose British Gas unit is Britain’s largest energy supplier, said these factors would impact financial performance in the first half of 2019, but maintained its full-year outlook for operating cash flow and net debt. The company said it expects to achieve 2019 adjusted operating cash flow in the 1.8-2 billion pound range but said the tough trading conditions would put pressure on the outlook for the year. British energy regulator Ofgem was told by parliament last year to cap energy prices after lawmakers said customers were being overcharged for electricity and gas. Prime Minister Theresa May had called the tariffs a “rip-off”. Centrica said earlier this year the cap on standard energy prices would lead to a 300 million pound ($390 million) hit to profits in 2019, including a one-off impact of about 70 million in the first quarter of 2019. The company on Monday said its performance could be impacted by low output from Britain’s eight nuclear plants, in which it owns a 20% stake. France’s EDF owns the remaining 80% in the plants. The Hunterston plant has been offline since last year after cracks were found in the cores of its two reactors, while the two reactors at the Dungeness site are also currently offline and not expected to return to service until later in the year. Centrica hopes to sell its stake in the nuclear fleet by the end of 2020 and said it would likely provide an update at its interim results. “We intend to provide a strategic update regarding our portfolio and prospects at the time of our interim results in July,” Chief Executive Iain Conn said in a statement. Shares in the company rose around 3% on Monday morning as analysts described the trading update as mildly positive. “Despite a number of negative external factors (warm weather, outages at EDF-operated nuclear plants, falling gas prices), Centrica has confirmed all 2019 targets,” analysts at Jefferies said in a research note.
Opposition parties slam Centre for fresh nod for hydrocarbon projects in Tamil Nadu
Opposition parties DMK, AMMK and PMK on Sunday slammed the Centre for granting environmental nod to Vedanta, ONGC and others to carry out preliminary work for exploring hydrocarbons in Villupuram district in Tamil Nadu as well as in neighbouring Puducherry region. In a related development, several farmers’ associations and Tamil outfits have announced plans to stage massive protests against the Centre’s nod to ONGC and others to conduct environmental impact studies to establish 40 hydrocarbon wells in the delta districts. Saying they opposed all hydrocarbon and neutrino projects from being implemented in the state, Tamil Nadu Vivasayigal Sangam will hold a demonstration at headquarters of five delta districts on June 1 demanding that state government and the Centre shelve the projects. In a statement, DMK president M K Stalin recalled the opposition to hydrocarbon exploration projects in the delta districts and several protests that were held against such projects in districts like Nagapattinam, Villupuram, Cuddalore and Tiruvarur. “While both the BJP government at the Centre and the AIADMK government in the state ignored these protests, it is highly condemnable that fresh environmental nod has been given to new projects in Villupuram and Puducherry regions and that too when the Model Code of Conduct is in place,” Stalin said. He urged the state government to take up the issue with the Centre and stop any further progress on these new projects. AMMK general secretary T T V Dhinakaran said the Centre, which was keeping quiet for elections to get over, has once again unleashed new hydrocarbon exploration projects in Villupuram and Puducherry regions. “AMMK will continue to oppose any project that will affect the environment and covert the fertile Cauvery delta region into a desert. The AIADMK government, which has bequeathed all rights of Tamil Nadu with the Centre, should immediately oppose the fresh attempt to initiate hydrocarbon exploration in the delta region and prevail upon the Centre against implementing such projects henceforth in the state,” Dhinakaran said in a statement, while coming down heavily on Vedanta, accusing it of spoiling the environment in Tuticorin through its Sterlite Copper smelter. PMK founder S Ramadoss said the fresh nod given to hydrocarbon exploration projects in Tamil Nadu went against the assurances given to the state by the Centre. “Both the state and the Centre should ensure that hydrocarbon explorations will not be taken up in any part of the state and steps should be taken to notify Cauvery delta districts as protected agricultural zone,” Ramadoss said.
Future of fuel may lie in methane-consuming bacteria
Researchers have finally unveiled the mechanism behind the conversion of methane into readily usable methanol in methanotrophic bacteria. The research could contribute to the future of fuel. The study published in the journal Science has found that the enzyme, present in the methanotrophic bacteria, responsible for the conversion of methane into methanol catalyses the reaction at a site that contains only one copper ion. The finding could lead to newly designed, human-made catalysts that can convert methane — a highly potent greenhouse gas — to readily usable methanol with the same effortless mechanism. “The identity and structure of the metal ions responsible for catalysis have remained elusive for decades. Our study provides a major leap forward in understanding how bacteria methane-to-methanol conversion takes place,” said Northwestern’s Amy C. Rosenzweig, co-senior author of the study. “By identifying the type of copper centre involved, we have laid the foundation for determining how nature carries out one of its most challenging reactions,” said Brian M. Hoffman, co-senior author. By oxidizing methane and converting it to methanol, methanotrophic bacteria (or ‘methanotrophs’) can pack a punch or two. Not only are they removing harmful greenhouse gas from the environment, but they are also generating a readily usable, sustainable fuel for automobiles, electricity and more. Current industrial processes to catalyze a methane-to-methanol reaction require tremendous pressure and extreme temperatures, reaching higher than 1,300 degrees Celsius. Methanotrophs, however, perform the reaction at room temperature and ‘for free’. “While copper sites are known to catalyze methane-to-methanol conversion in human-made materials, methane-to-methanol catalysis at a monocopper site under ambient conditions is unprecedented,” said Matthew O. Ross, the paper’s first author. “If we can develop a complete understanding of how they perform this conversion at such mild conditions, we can optimize our own catalysts,” said Ross.
Will not allow hydrocarbon project in Puducherry: CM V Narayanasamy
The Puducherry government will not permit excavation of oil and gas in the Union territory of Puducherry, said chief minister V Narayanasamy. Talking to reporters on Saturday, he said he learned through unofficial sources that the Union government proposed to launch projects to explore oil and gas from the Union territory of Puducherry and Tamil Nadu’s adjoining district of Villupuram. He pointed out that the Puducherry government had vehemently opposed similar projects in Karaikal, the territory’s enclave 140km south of its headquarters, two years ago. He said he wrote to the Union government then opposing the project. “We have made it clear on the floor of legislative assembly of the Union territory that the Puducherry government will not accord permission for projects exploring oil and natural gas earlier. We heard now that the Centre has now proposed similar projects in Villupuram in Tamil Nadu and Puducherry Union territory. We have not received any communication from the Centre so far. We will register our protest against the project as and when the Centre approaches us in this regard,” said Narayanasamy. A private firm has sought the approval of the Union environment, forest and climate change ministry seeking approval for environment impact studies for the proposed offshore and onshore oil and gas exploration projects in Bay of Bengal, Puducherry and Villupuram regions. The firm said that it has proposed to carry out oil and gas exploration in the block and urged the ministry to exempt public hearing to elicit the views of the people for conducting the environmental impact studies. Several farmers forums and political parties including the CPM have registered their strong protest against the hydrocarbon project arguing that the project will spell doom for agricultural activities and will render several lakhs of farmers jobless.
GAIL awards contracts worth Rs 10,500 crore for key pipeline projects
State-owned gas utility GAIL (India) today announced awarding of major contracts worth Rs 10,500 crore for the ongoing Jagdishpur-Haldia and Bokaro-Dharma natural gas pipeline projects (JHBDPL) and Barauni–Guwahati pipeline project (BGPL). The pipelines are part of the Pradhan Mantri Urja Ganga (PMUG) project. GAIL Chairman B C Tripathi said the company has exceeded its capex target of Rs 6,400 crore for financial year 2018-19. “Major contracts for integrated JHBDPL including BGPL have been awarded which will contribute to the economic development of the country and provide employment opportunities in the pipeline project and City Gas Distribution networks in the country,” he said. GAIL has already placed an order worth Rs 475 crore for steel pipes of around 280 Kilo meter to provide pipeline connectivity from Durgapur to Haldia including spur line to Kolkata in West Bengal. So far, the company has committed over Rs 12,500 crore for the project. According to the utility, the pipeline has already reached Barauni and GAIL is ready for supplying gas to refinery and upcoming fertilizer plants in the region. The work for balance portion is scheduled to be completed by December 2021 in a phased manner. The company said it is currently executing around 5,500 km of pipeline related projects for Rs 25,000 crore to provide gas supply largely to Eastern and Southern parts of the country. Another 1,400 km pipeline involving capital expenditure of Rs 7,000 crore is under evaluation which is targeted to be completed by 2023. These pipeline projects by GAIL will be part of the National Gas Grid, connecting the mainland with the eastern part of the country.