China’s CNOOC, Sinopec to jointly study, explore mostly offshore blocks
China’s offshore oil and gas specialist CNOOC Ltd said on Wednesday it entered a framework deal with China Petroleum and Chemical Corp, or Sinopec Corp, to jointly study and explore mostly offshore oil and gas blocks * Under the deal, the two state oil firms will jointly study and explore for oil and gas resources at Bohai Bay off north China, Beibu Gulf in the South China Sea, South Yellow Sea area as well as onshore North Jiangsu basin * The cooperation, that covers 19 blocks with a total area of 26,900 square kilometres, will be carried out in three years, CNOOC said, without stating when that will start
Asset monetisation: Ministries and Niti Aayog differ on how to split GAIL
Though it is amply clear by now that the marketing and pipeline businesses of state-run GAIL (India) will be separated, opinions of departments within the government seem to differ on the ownership and shape of the new entity to be created. While the ministry of petroleum and natural gas feel the pipeline company should remain a subsidiary of GAIL, same as GAIL Gas which operates the city gas distribution business, the Niti Aayog and the department of investment and public asset management (DIPAM) are of the view that the pipeline division should be an independent entity. According to sources, the Prime Minister’s Office had called a meeting to hear out both the options but is yet to give any direction. Sale of pipelines is part of the government’s asset recycling or monetization plan. Apart from pipelines, transmission lines of Power Grid Corporation, telecom towers of BSNL and MTNL, ports and railway stations are the other assets under the radar of the government. GAIL started the work to transfer its pipeline vertical into a subsidiary of the parent company and hired a consultant to work out the options last year. Earlier in the year, petroleum minister Dharmendra Pradhan had made it clear that GAIL should separate the two businesses. The company earns 70% of its revenue through marketing whereas 40% of profits come from the natural gas transmission business. GAIL has a pipeline network of over 11,400 km in India accounting for three-fourths of natural gas transmission. It is also working to add another 5,000 km of pipelines which include the Pradhan Mantri Urja Ganga Project which will connect the eastern and the north-eastern states. The gas marketer has often come under criticism for prioritizing its own gas for transmission. Sources also added that pipeline owned and managed by ONGC and Indian Oil may also be looked into in the future for monetization. DIPAM is believed to been working on various models of monetization of existing assets of PSUs. The receipts from monetization are likely to be used for expansion of the asset. One of the options is also that real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) will run the revenue-generating assets on the transfer-operate-transfer basis and investors will be able to buy units.
Spent Rs 10,000 crore on capex in FY19: Vedanta
Stating that its growth plans will see it becoming the world’s largest zinc producer and among the top three silver producers, mining giant Vedanta Ltd Thursday said it spent around Rs 10,000 crore in FY’19 on capital expenditure programs. “As India’s largest private sector oil and gas producer, our company aims to double its current contribution of 27 percent of nation’s production,” the company’s Chairman Navin Agarwal said at it’s Annual General Meeting (AGM). India currently imports around 80 percent of its oil and gas requirements, amounting to USD 150 billion, he said. “We are the largest primary producer of aluminum in the country. Our plans will see us produce three million tonnes of integrated aluminum, an increase of 50 percent,” he added. Looking at the medium term, Agarwal said Vedanta’s plans include a total capital investment of Rs 55,000 crore to increase production by about 50 percent across its businesses which the company expects to fund from internal cash flows. The mega targets set in the Union Budget 2019-20 for investment in infrastructure sector at Rs 100 lakh crore over the next five years will lead to urbanization and industrialization in the country, generating significant demand for natural resources, he said. India currently has a resources’ import bill of USD 465 billion, Agarwal added.
Yes to CNG but, it’s not a smooth ride yet
Kochi witnessed an automotive revolution this year with a stark increase recorded in the number of people switching to Compressed Natural Gas (CNG)-driven vehicles. CNG’s many benefits, including cost-effectiveness, prompted many to make the shift. According to sources with CNG fitment centres in the district, as many as 150 vehicles approach them for conversion every month. “The number was less initially. This year, it began to pick up. So far, over 800 vehicles, mainly commercial vehicles like taxis, have fully converted into CNG. Its eco-friendly nature is prompting many to opt for this mode,” said Dileep Rajagopal, who runs a CNG kit retro-fitment centre in Kochi. But, it isn’t a smooth run yet. The lack of enough pumping stations, that too within the city limits, has proved to be a hindrance. There are nine to ten pumping stations in the district, of which only five are full-fledged. Most of them, however, are situated in the fringes of the city. The public sector oil retailer Indian Oil Corporation and Bharat Petroleum Corporation Ltd have been commissioned to set up 15 CNG stations in and around the city, but there seems to be an inordinate delay in setting up the remaining stations. Right now, only the pumps at Kalamassery, Aluva, Container Road, Cheranallore and Maradu supply fuel. And, as for outside city limits or suburbs, CNG ceases to be an option due to the absence of a fuel station. However, a top official with the Indian Oil Adani-Gas Pvt Ltd said there is no shortage in the number of stations in the city. “We supply as per demand. Three more stations will function in BPCL, IOCL and HPCL retail outlets very soon,” he added. The economic side If petrol costs Rs 6 per km, CNG can cover 1 km with Rs 2 or Rs 2.5. This makes a huge difference for taxis and autorickshaws, the number of which has skyrocketed in the city. The initial cost of conversion is high and depends on the type of engines, but that could be covered within six months,” he added While converting… The vehicle should be eligible and should be a model released after 2006. Approval from RTO Should be done from authorised centres Proper safety measures should be followed Advantages of CNG CNG costs less. One kg of CNG retails for around Rs 53, compared to Rs 66 for diesel and Rs 70.5 for petrol One-time cost in installation can be recovered within six months Clean fuel and low emission rates Engine turns efficient and cleaner Less maintenance First e-vehicle charging station Kerala’s first electric vehicle charging station has come up at Indian Oil Corporation’s retail outlet at Edappally. With this, Kochi has become the second city in South India to have an EV charging station after Hyderabad. As a promotional measure, IndianOil will charge all vehicles free of cost till September 30, 2019.