AG&P Int’l eyes more LNG projects
AGP International Holdings Pte. Ltd. (AG&P) is working to execute multiple liquefied natural gas (LNG) initiatives globally, including the Philippines, after securing a $100-million equity investment from a Japanese consortium. AG&P said Osaka Gas Co. Ltd., through affiliate Osaka Gas Singapore Pte. Ltd. (Osaka Gas) and the Japan Bank for International Cooperation (JBIC), have invested in a minority stake in AG&P. The firm will use the $100-million additional capital to develop and roll out various projects globally. One of which is the City Gas Distribution business in India, where AG&P bagged long-term, exclusive concessions to connect millions of people to compressed natural gas (CNG) for their vehicles and piped natural gas directly into their homes across South India and Rajasthan. AG&P also said it will develop more small- and medium-scale LNG import terminals, such as the pending terminals in Karaikal, India that will provide the vital link to bring commercially attractive, convenient and safe gas to population centers relying on dirtier and more expensive fuels. The company is also developing LNG applications and logistics, such as LNG delivery to end-customers by different transportation options. AG&P also aims to grow its intellectual property which made it and engineering firm Gas Entec leaders in the design, build, testing and commissioning of LNG bunkering vessels, floating storage and regasification (FSRUs, FRUs, FSUs and onshore variations) and LNG, dual-fuel applications for ships and other vehicles. The company also plans to roll out advanced modularization and field construction services to serve global energy and commodity markets in the US, Australia, the South Pacific and Southeast Asian markets. It also eyes to rapidly accelerate domestic infrastructure in the Philippines, where AG&P proudly owns and operates two major yard facilities which employ 4,000 people. “AG&P and Gas Entec, working together, bring innovative, in-house engineering, project management, manufacturing, licensed LNG tank and handling system outfitting, construction, project development, customer marketing and operations management for LNG-related projects and for our modularization, site-work and other customers. We look forward to changing how the LNG industry works,” AG&P chairman Jose Leviste Jr. said. Osaka Gas is one of the world’s foremost gas utilities, supplying natural gas to 5.5 million households and operating over 60,000 km of pipeline, in addition to a wide range of gas, power and renewable assets around the world, including in the US, Europe and Southeast Asia. Its investment in AG&P marks the next step in a long-term relationship where both parties have worked together to develop LNG infrastructure projects in South Asia, Southeast Asia and the Americas, among others. “We strongly believe that this investment in AG&P will provide Osaka Gas with a valuable asset to create and develop new markets for Osaka Gas. AG&P’s single-minded focus in developing solutions with the end-customer in mind has been inspirational to our team,” said Katz Sato, head of South and East Asia Business development for Osaka Gas. Apart from providing growth capital, Osaka Gas will also work with AG&P in other areas, including technical support to various projects, such as AG&P’s major city gas initiatives in India. Meanwhile, JBIC is an institution wholly owned by the Japanese government, intended to support Japanese industry and Japan’s strategic priorities. Its investment in AG&P was made, in line with its policy objectives, to support Osaka Gas’s ongoing collaboration with AG&P in expanding its overseas business.
ONGC’s crucial offshore rig conversion project facing further delays
An age-old project of Oil and Natural Gas Corporation (ONGC), India’s state-owned petroleum explorer, that aims at converting oldest offshore rig Sagar Samrat to a Mobile Offshore Production Unit (MOPU) has been delayed again and is now likely to be commissioned by December this year, a status report by the Ministry of Statistics and Programme Implementation (MOSPI) showed. An ONGC executive confirmed the delay and added that the commissioning time had to be extended due to rains and the company, after terminating the original contract with Mercator last year, has now appointed United Arab Emirate (UAE)-based Gulf Piping Company to undertake the project. The project, crucial for raising output, has been delayed by 79 months so far and is facing cost overruns to the tune of Rs 715 crore, the report showed. The rig is proposed to be deployed in WO-16 cluster fields close to Mumbai High. The conversion of the off-shore rig Sagar Samrat was approved on March 2011 and was intended to be commissioned by May 2013 at an original cost of Rs 861.79 crore. ONGC had originally awarded the rig conversion project to Mumbai-based Mercator Ltd’s oil and gas subsidiary. However, that contract had to be terminated due to delays in execution. Post the award of a contract to Gulf Piping Company, ONGC had projected to commission the project by March 2019. The delay in deployment of MOPU has been one of the main reasons for the company’s shortfall in crude oil production for the financial year 2016-2017 and 2017-2018, according to a report by the oil ministry. ONGC has been under pressure from the government to arrest and increase its domestic crude oil production. Following the recommendations of a high-level committee headed by Niti Aayog Vice Chairman Rajiv Kumar, the company had to invite strategic partners to help enhance production from 64 fields. ONGC’s crude oil production in June this year declined 5 percent to 1,686 Thousand Tonne. Cumulatively, the oil and gas explorer’s domestic oil production during the first three months of the current financial year decreased 5 per cent to 5,137 TMT from 5,392 TMT produced in the corresponding period last fiscal. The company has managed to win 10 oil and gas blocks under the first three rounds of Open Acreage Licensing Programme (OALP).
GAIL chairman denied third extension
GAIL (India) Chairman and Managing Director (CMD), B C Tripathi has been denied a third extension at the helm of the public sector undertaking (PSU). Sources say that Tripathi who is on his second extension as the CMD till July end has been denied another extension that would have lasted him till February 1, 2020. Tripathi has been the CMD since August 1, 2009 and has been a member of the company’s Board of Directors since July 2007. GAIL was elevated to the stature of a ‘Maharatna’ public sector enterprise during his tenure. The company has strengthened its core businesses across natural gas midstream and downstream chains during the last decade by doubling gas transmission capacity, tripling petrochemicals marketable portfolio. It has also forayed into newer game-changing opportunities by securing over 8.0 million tonne per annum long-term LNG supply commitments. Tripathi is a Mechanical Engineer from MNNIT, Allahabad. He has over 35 years of experience in the natural gas value chain.
Essar makes natural gas discovery in Vietnam
Ruias-led Essar Exploration & Production Ltd on Friday said the company and its partner ENI have made natural gas and condensate discovery in a block offshore Vietnam. “Essar Exploration & Production Ltd (EEPL) and ENI have jointly announced that their exploration well located at Block 114, Song Hong Basin, Offshore Vietnam, has established the presence of gas and condensates in the Ken Bau prospect,” the company said in a statement. ENI is the operator of the block with 50 percent participating interest. EEPL has the remaining 50 percent stake. The exploration well Ken Bau 1X has been drilled at a depth of 95 meters below water level, and reached a total depth of 3,606 meters, encountering several intervals of gas and condensate sandstone interbedded with Miocene age shale, with an estimated net reservoir thickness in excess of 100 meters. “Ken Bau 1X well was plugged and abandoned ahead of the original plan due to certain technical issues, prior to reaching deeper levels that could hold significant additional resources,” the statement quoted ENI as saying. ENI is already planning to start a drilling campaign early next year to fully assess the substantial upside of the discovery. “Ken Bau 1X results represent a significant breakthrough for evaluating the exploration potential in the Song Hong Basin,” it said. EEPL is a global oil & gas exploration & production company based in Mauritius. It has invested over USD 1.1 billion in the exploration & production business to date. Besides venture in Vietnam, it has investments in an exclusive block OPL 226 in Nigeria and holds unconventional hydrocarbon acreages in India through wholly-owned subsidiary Essar Oil and Gas Exploration and Production Ltd (EOGEPL). EOGEPL’s Raniganj coal-bed methane (CBM) block in West Bengal produces 1 million cubic metres per day of gas.
BPCL to produce 100 KL ethanol using paddy straw near Bhandara
Bharat Petroleum Corporation Limited (BPCL) will produce 100 kilolitres (KL) second generation bio-ethanol per day using paddy straw near Bhandara. The project will be a role model for the entire state, as BPCL will get ethanol to blend in petrol, while burning of paddy straw will stop, and farmers will get alternate revenue source. Guardian minister of Bhandara and Gondia Parinay Fuke told TOI the plant will run on solar power and would be the first-of-its-kind in the entire state. “We are about to hand over 74 hectare land to BPCL soon. The project will come up at Makhardokda, between Bhandara and Lakhani. BPCL will invest around Rs1,300-1,500 crore in the project, which will generate around 15,000 employment,” he said. Fuke added that construction of biogas plant will be done after completion of ethanol plant. “We are planning to hand over a hillock situated near the project site to BPCL to install solar power plant. Around 70% power for the plant will be met from solar energy. Ethanol will be produced using paddy straw. Biogas will be produced using waste of sugarcane, forest and other crops,” he said. Expressing gratitude to CM Devendra Fadnavis and petroleum minister Dharmendra Pradhan, Fuke said it will be the first plant of petroleum companies to be commissioned in the entire country. “Pradhan had approved 12 such plants, with three each for four petroleum companies. BPCL has proposed three at Bhandara, Bina in MP, and Bargarh in Odisha. Plan is to commission Bhandara plant within a year,” he said. It is mandatory for petroleum companies to blend 10% ethanol in petrol. The central government is planning to increase it to 20%. For last few years, petroleum companies have been purchasing ethanol from private manufacturers. After the success of Bhandara plant, BPCL can meet its requirement of entire Nagpur division on its own. Fuke said the best available technology will be selected through global tender. “I was pursuing the project since I was elected MLC three years ago. I came to know about BPCL planning to construct plant at Khamgaon. I requested Fadnavis and Pradhan, and brought it to Bhandara as farmers burn 80% of paddy straw, losing money as well as causing pollution. Some 3.84 lakh tonne paddy straw is available in Bhandara district and 3.46 lakh tonne in Gondia district. Farmers use around 20% paddy straw for feeding cattle. Plant will consume around 4 lakh tonne. We can expand the plant in case it begins to get more paddy straw. Farmers will earn Rs2,000 per tonne from paddy straw,” he said.
Torrent Group plans Rs 3,000 cr investment for gas pipeline network in UP
The Torrent Group on Sunday said it is planning to invest Rs 3,000 crore for laying a gas pipeline network in Uttar Pradesh. “In coming years, gas pipeline network will be established for domestic, commercial and industrial consumers, and a plan to invest Rs 3,000 crore is being made,” Torrent Group chairman Sudhir Mehta said at the second groundbreaking ceremony here. He further said that there is also a plan to set up 200 CNG stations in the state. These investments will bring environment-friendly natural gas to Uttar Pradesh, he said.