Govt may sell stake in BPCL to overseas oil firm
India is considering a plan to sell the nation’s second-largest state refiner and fuel retailer to a global oil company as it explores options to give up its controlling stake in Bharat Petroleum Corp., people with knowledge of the matter said. The government is keen to lure multinational companies in the domestic fuel retailing to boost competition and shake up a sector that’s long been dominated by state-run firms, the people said, asking not to be identified as the plan is not public.The Business Standard newspaper reported on Sept. 2 government’s plan to sell a majority stake in the company. It holds 53.3% in BPCL Prime Minister Narendra Modi’s government has set a record target of raising 1.05 trillion rupees ($14.8 billion) in the current fiscal year from sale of state firms. The government’s budget gap goal of 3.3% of GDP is at risk due to sluggish revenue collections on the back a growth slowdown, limiting the government’s ability to spend on infrastructure and welfare programs. Offloading its holding in Bharat Petroleum can help meet more than 40% of the aim based on the closing price on Sept. 12. Finance ministry spokesman Rajesh Malhotra could not be immediately reached for comment.
GAIL un-bundling crucial for natural gas trading hub to work: Darshan Hiranandani, CEO, H-Energy
The un-bundling of state-owned natural gas utility GAIL (India) must happen for the country’s plan to set up a gas trading hub to achieve its desired purpose, Darshan Hiranandani, Chief Executive Officer (CEO) and Managing Director (MD) of H-Energy, promoted by Mumbai-based realtor Hiranandani Group, has said. “Until the unbundling of GAIL happens, natural gas trading hub will not work. It will not take off. If the unbundling of GAIL happens, we will be among the first ones to participate in the hub,” Hiranandani told ETEnergyworld in an exclusive interview. Talking about the company’s capital expenditure plans, Hiranandani said H-Energy plans to spend around Rs 4,000 crore over the next 3-4 years in order to set-up pipeline infrastructure and two Liquefied Natural Gas (LNG) terminals on the Eastern coast. According to Hiranandani, the 4 Million Tonne Per Annum (MTPA) LNG terminal in Jaigarh, Maharashtra is ready and only a small stretch of 60-Km natural gas pipeline connecting the terminal to Dabhol-Bangalore natural gas pipeline is pending, which is expected to be completed by December 2019. On the Eastern side, H-LNG is setting up two terminals — a 3 MTPA terminal in Kukrahati in West Bengal and another 3 MTPA terminal in Kakinada, Andhra Pradesh. The company expects both the terminals to be completed by mid-2022. “By creating assets near the demand centre we are bringing efficiency as this will avoid the need for a long pipeline to connect with the demand centres. As another focus area, we are going around the world — like our recent agreement with Russian company Novatek — to try and find cost efficient gas to bring to India,” Hiranandani said. He added the company is exploring various avenues of collaboration with Russia gas giant Novatek including setting up a joint gas marketing company, sourcing LNG from Novatek and investment opportunities in LNG terminals in Russia. “With Novatek we are focusing on three years — getting gas from Russia, looking at creating a joint marketing company to sell gas together, and participating in their projects, whether it is Arctic LNG-2 or terminals in other parts of Russia. Overall, we are looking at how we can participate together,” Hiranandani said. Commenting on the state of natural gas infrastructure in the country, Hiranandani said currently getting approval and financing for projects has become challenging. “There are more concerns and there is less infrastructure. At an overall level, the approval side is very challenging in the context of Right of Use etc. On the financing side, banks are not so keen on lending for infrastructure projects. So, things are challenging. But everybody in the gas industry is trying very hard to push for gas infrastructure,” Hiranandani said. Talking about adoption of LNG as a transportation fuel, Hiranandani said LNG retail infrastructure is growing at a very slow pace in the country which is discouraging transporters to adopt the fuel. “The whole issue rests on transporters. It is not the truck manufacturer but the truck operator who has to decide. The moment truck operators decide to go ahead with adopting the fuel, manufacturers will follow suit,” Hiranandani said, adding in the initial phase no transporter is going to use LNG without the presence of a robust retail infrastructure. “Even today, between the departments and the law there are roadblocks from various approval agencies. Once the infrastructure gets ready transporters will feel more comfortable,” Hiranandani said. He said the company has received approval from Petroleum and Explosives Safety Organization (PESO) for setting up an LNG retail outlet at Panvel in Maharashtra and the firm is keen on expanding its presence in the space.
INOX India commissions INDIA’s first LCNG dispensing station right in the heart land of INDIA for RAWMATT at Nagpur, Maharashtra.
Installed & commissioned in record time of 5 months, this LCNG station would dispense CNG to Buses, Cars and Autos and also act as mother station for filling high pressure CNG cascades to service CNG daughter stations and nearby industrial customers. Station will also dispense CNG for Nagpur Municipal Corporation ~300 Nos. buses which are being converted on CNG by RAWMATT. The facility also has provision to add LNG dispensing for heavy-duty trucks and buses. The LCNG station will be operated by INOX for a period of one year and will also provide training to RAWMATT personnel for subsequent operation. INOX is also entrusted with the critical role of bringing LNG from Petronet LNG’s Dahej Terminal covering a one-way distance of 900 kms from the Terminal.” This is a first of its kind successful demonstration for LCNG dispensing for automobile applications where pipeline network is yet to be developed or uneconomical to develop. Due to much lesser implementation time, this model will open up large opportunities for all stakeholders for Central India. This milestone also strongly supports Govt. of India’s initiative for increasing the use of Natural Gas in India’s energy mix and enables the use of safe and environment-friendly fuel in different parts of country.
Petrol prices in Pakistan at all-time high: Report
A fact-checking organisation has found truth in Pakistan Peoples Party Chairman Bilawal Bhutto Zardari’s statement that petrol prices in the country have reached an all-time high. Last month, Opposition leader Bilawal Bhutto had criticised Imran Khan’s government for the high petrol prices. He had said: “Today, petrol prices are at an all-time high.” Now, an independent think tank, the Pakistan Institute of Legislative Development and Transparency (PILDAT), has found the statement to be true. It found that the Pakistan government, on July 31, hiked the prices of petroleum products. After this, the price of petrol (altron premium) touched (Pakistani) Rs 117.83 per litre. Quoting data from Pakistan State Oil, the organisation said that from January 1, 2006 to August 1, 2019, petrol prices had never touched Rs 117.83.
Aramco keen to partner in Modi’s mega refinery project
If all goes well, the world’s leading oil company Saudi Aramco would soon be India’s key strategic partner in Narendra Modi government’s mega project, the West Coast Refinery, worth over Rs 4 lakh crore. The refinery is to be set up at Raigad in Maharashtra where the state government has initiated a move for the acquisition of around 600 acres of land. The project, expected to be completed within five years, will not only fulfill the country’s future oil requirements, but also make India one of the top global players in the refinery sector. A senior official in the Petroleum Ministry told IANS that the top management of Saudi Aramco has shown keen interest in forging a strategic alliance with India for the West Coast Refinery, to be built as world’s most advanced oil refinery. “Union Petroleum Minister Dharmendra Pradhan on September 8 had a fruitful meeting with Prince Abdul Aziz bin Salman, the new Saudi Minister for Energy, in Jeddah in this connection. “Pradhan was assisted by Joint Secretary B.N. Reddy and senior officials of Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL). The Saudi Minister reiterated his country’s commitment on investments in India,” said the official. Sources said that Prime Minister Narendra Modi would be visiting Saudi Arabia, probably next month, where he would have talks with King Salman bin Abdulaziz and Crown Prince Mohammed Bin Salman. It is expected that decisive and positive talks over Saudi Arabia’s strategic partnership in the West Coast Refinery project could be achieved. Modi had announced the mega plant during his first term in 2016. Initially, the outskirts of Ratnagiri was selected as the site for the mega project. However, the farmers launched an agitation to shift the project from the district. Finally in early 2019, Maharashtra Chief Minister Devender Fadnavis assured that the project would be shifted to Raigad for which the state government would acquire land. At present there are around 24 oil refineries in India, majority of which belong to public sector. In the wake of India’s growing oil and energy needs, a mega refinery like the one on the west coast with an expected capacity of 60 mmtpa is vital which would cater to the country’s future requirements. India also aims to increase its oil reserves for up to 100 days. Sources said that Saudi Aramco is also willing to provide reserve oil to India. In fact, Aramco, which is soon bringing in a much-awaited IPO, could be keen on projecting its huge investments and strategic partnership with India. In July this year, the then Saudi Energy Minister and Chairman of Aramco, Khalid Al-Falih, visited New Delhi and held important talks with Petroleum Minister Dharmendra Pradhan. Both the ministers had discussions on enhancing India-Saudi hydrocarbon cooperation. The ministers also reviewed the progress on Saudi investments in oil and gas sector, including the West Coast Refinery project.
Iran’s CPEC-Parallel Pipeline Plans (E-CPEC+) Could Ruin India’s Regional Vision
India’s zero-sum plans of using its reinvigorated strategic partnership with Russia to “balance” China in the region of “Greater South Asia” are at risk of being ruined if Iran goes through with its recently announced interest in building a CPEC-parallel LNG pipeline to China (E-CPEC+, with the “E” standing for “energy”) and receives Moscow’s world-class support in constructing this game-changing piece of integrational infrastructure. The Iranian Ambassador to India shocked his host nation by declaring that “Iran is now discussing an LNG pipeline to China along the China-Pakistan Economic Corridor (CPEC), as India is not expected to retain its prior interest in LNG imports from Iran”, according to The Hindu’s report about his comments made to members of the Indian Association of Foreign Affairs Correspondents on Monday. His words are especially significant for the fact that they represent his country’s first public recognition that India submitted to the US’ sanctions regime and also signify a bold endorsement of the Belt & Road Initiative’s (BRI) flagship project of CPEC that India is adamantly against because of its maximalist claims in the Kashmir Conflict. The Meek Shall Rise India already humiliatingly made a fool out of Iran on the world stage by complying with the US’ sanctions demands, victimizing its partner through blowback from the Hybrid War on CPEC, and entering into informal military alliances with its hated American and “Israeli” enemies, but the proverbial straw that broke the camel’s back and got Iran to stop behaving as India’s “junior partner” and finally become serious about changing its approach to it was likely the brutal use of force that was inflicted earlier this week upon the Kashmiris who were commemorating the matrydom of Imam Hussein. Publicly funded Iranian international media outlet Press TV extensively covered the wanton human rights abuses committed by the occupying Indian forces during this time and specifically pointed out to anyone who was unaware that Imam Hussein was also the third Shia Imam as well as the grandson of Prophet Muhammad, which is exceptionally important because the Islamic Republic of Iran is first and foremost an ideologically driven state constitutionally beholden per Article 154 to “support the struggles of the oppressed for their rights against the oppressors anywhere in the world.” It is therefore absolutely unacceptable for Iran to not at the very least respond in an asymmetrical way while its co-confessionals are being visibly oppressed by occupying forces while attempting to commemorate the martyrdom of such an important Islamic figure, which explains why Tehran decided to cross the Rubicon and have its Ambassador to India publicly talk about its plans to construct E-CPEC+ despite knowing that his words would indelibly alter the dynamics of the Iranian-Indian Strategic Partnership. The Ambassador wisely referenced India’s decision to discontinue purchasing his country’s resources as the reason for his government exploring such a game-changing move, thereby ensuring that it can’t be interpreted as anything “hostile” or “anti-Indian” and indirectly laying the blame for any repercussions it could have on the regional balance of power solely at the feet of India’s political leadership. This is crucial to mention because the outcome could very realistically ruin India’s regional plans if the pipeline is ever constructed. “Energy Diplomacy” Not only would it naturally strengthen China and Pakistan’s joint regional position, but it might also do the same for Russia’s as well if Moscow decides to get involved in this promising project by bidding to construct it and then pairing its offshore gas reserves in Iran with the rest of the Islamic Republic’s available reserves in order to ensure that the pipeline is truly transformational in the geopolitical sense. Russia already signed a $10 billion memorandum of understanding with Pakistan last October to build an undersea pipeline connecting Iran and India via that nation’s territorial waters, but with New Delhi no longer buying Tehran’s resources, it makes sense for Moscow to modify the proposed project to end in the People’s Republic instead. While India might have thought that it bought Russia’s eternal geopolitical allegiance through the multibillion-dollar deals that were struck in exchange for its full support on Kashmir during Modi’s visit as the guest of honor at the recent Eastern Economic Forum in Vladivostok, it could very well soon find out that there are limits to its influence. Russia and India are indeed on the same page as regards their grand strategic interest in jointly leading a new Non-Aligned Movement (Neo-NAM), which was elaborated upon by the author in his latest piece about Moscow’s “New Detente” with the West and importantly given an indirect endorsement by the Valdai Club in its latest publication about “The Eurasian Chord and the Oceanic Ring: Russia and India as the Third Force in a New World Order“, in which Moscow’s top think tank toyed with rebranding this concept as the “Peaceful Development Movement”. That said, Russia is sincere in its desire to become the supreme “balancing” force in Afro-Eurasia and isn’t hiding behind euphemisms to disguise any zero-sum ambitions like India is, so it’s entirely feasible that Moscow might seriously consider resuming the original “balancing” intentions of its “Return to South Asia” (prior to them having been offset by its partisan support of India on Kashmir). Back To “Balancing”? By doing so, not only would Russia prove its neutrality in the New Cold War, but it would also be advancing the “Golden Ring” geopolitical concept of strengthening ties between itself, Iran, Pakistan, and China, as well as preempting the possibility of becoming too strategically dependent on India (seeing as how its “Pivot to India” in Vladivostok was due in part to similar concerns vis-a-vis China). These interconnected outcomes would reassure Russia’s partners that its joint leadership of the Neo-NAM isn’t against any of them but is instead intended simply to maintain “balance” in the hemisphere. The resultant goodwill that Russia would receive from them, and especially the global pivot state of Pakistan, might even give it the edge over India in this nascent “balancing” structure that it’s
RIL to start gas production from R-Cluster in 2nd half of FY21
Reliance Industries has stated that it will start natural gas production from R-Cluster gas field in the flagging KG-D6 block in the Bay of Bengal from the second half of the 2020-21 fiscal. Reliance and its partner BP Plc of UK had in June 2017 announced an investment of Rs 400 billion in the three sets of discoveries to reverse the flagging production in KG-D6 block. These finds were expected to bring a total 30-35 million cubic metres (1 billion cubic feet) of gas a day onstream, phased over 2020-22. R-Cluster will be first to come on stream. “R-Cluster development is on track for first gas in 2H FY21,” Reliance said in an investor presentation after its fourth-quarter earnings. Four of the planned six wells that would produce gas from the field have been completed and the fifth one is being drilled currently, it said adding first offshore installation campaign is underway and is expected to be completed in Q1 FY20. The second set is called the Satellite Cluster for which all major orders have been committed and engineering work is in progress. “Manufacturing of components of Subsea Production System (SPS) has commenced,” it said. For MJ, the third of these fields, bids for major long lead items such as drilling tangibles and FPSO is underway, Reliance said adding a rig has already been committed for drilling of wells on the field. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 — the largest among the lot — were brought into production from April 2009 and MA – the only oilfield in the block, was put to production in September 2008. The output from D-1 and D-3 has fallen sharply from 54 million standard cubic metres per day in March 2010 to 1.8 mmscmd in the January-March quarter, the presentation said. MA field ceased to produce last year. “Currently, D1-D3 field is producing and all efforts are being made to extend the life of the field,” the company said in the presentation. Reliance is the operator of the block with 60 per cent interest while BP holds 30 per cent stake. Niko Resources of Canada has the remaining 10 per cent. MJ gas find is located about 2,000 metres directly below the currently producing Dhirubhai-1 and 3 (D1 and D3) fields in the KG-D6 block and is estimated to hold a minimum of 0.988 Trillion cubic feet (Tcf) of contingent resource. Besides MJ-1, four deepsea satellite gas discoveries — D-2, 6, 19 and 22 — are planned to be developed together with D29 and D30 finds on the block. The third set is the D-34 or R-Series find. The government had in 2012 approved a USD 1.529 billion plan to produce 10.36 mmscmd of gas from four satellite fields of block KG-DWN-98/3 (KG-D6) by 2016-17. The four fields have 617 billion cubic feet of reserves and can produce gas for eight years. However, the companies did not begin the investment citing uncertainty over gas pricing. After the government allowed a higher gas price for yet-to-be-developed gas finds in difficult areas like the deep sea, RIL and BP decided to take up their development. RIL-BP have kept the USD 3.18 billion investment plan for D-34 or R-Series gas field in the same block, which was approved in August 2013. About 12.9 mmscmd of gas for 13 years can be produced from D-34 discovery, which is estimated to hold recoverable reserves of 1.4 trillion cubic feet. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production.
Opal gas pipeline operator says no order yet to change Gazprom’s gas volumes
Opal gas pipeline, which links the undersea Nord Stream pipeline to Germany, has not received any order to change gas volumes from Russia’s Gazprom despite a court ruling, RIA news agency cited the Opal operator as saying on Thursday. On Tuesday, Europe’s top court overruled the European Union’s decision to let Russia’s Gazprom ship more gas via the Opal gas pipeline. The operator also said talks with German regulators were underway, RIA reported.
UAE can play major role in India’s transition to gas-based economy: Pradhan
The United Arab Emirates can play a major role in India’s ambitious transition from a hydrocarbon economy to a gas-based economy as the two countries are “enjoying an excellent relationship, said Union Minister Dharmendra Pradhan, in an interview to Emirates news agency, WAM. “Although the UAE is not a primary supplier of gas, the country can be a big investment partner in some of India’s gas projects such as putting up the pipelines, Liquefied Natural Gas (LNG), terminals and city gas distribution networks,” Union Minister of Petroleum and Natural Gas, Pradhan added. “We have a very ambitious vision to develop all areas related to gas,” said Pradhan who was on a three-day official visit to the UAE. The current share of gas in India’s energy mix is 6.2 percent, in comparison to the global average of 24 percent. The Indian Government aims to increase it to 15 percent by 2030. “The UAE and India are enjoying an excellent relationship. For the first time, the UAE awarded a stake to an Indian consortium in Lower Zakum offshore field in Abu Dhabi [in 2018]. It is very prestigious for the Indian hydrocarbon industry. We are interested in exploring similar new areas of opportunities in the UAE,” Pradhan said. He said that pre-construction activities would start soon on the project site of US$44 billion Ratnagiri Refinery in the western Indian state of Maharashtra, with the participation of the UAE. “The state government is acquiring the land and once it is completed, we will go public with the details,” Pradhan explained. The joint venture, which was announced in 2018, involved one of the largest Foreign Direct Investment, FDI, deals in India, with Saudi Aramco and Abu Dhabi National Oil Company, ADNOC, jointly owning 50 percent stakes, with the remaining owned by a consortium of India’s state-owned oil companies. About another of the largest FDI deals in India – announcement on 11th August on Saudi Aramco’s intention to acquire a 20 percent stake in India’s Reliance’s Oil-to-Chemicals business in a deal valued at US$15 billion – the minister said, “If it materializes, it will create value to both countries.” Asked about the reported “regulatory and other approvals required” for the deal, he said, “They don’t need any approval from my ministry. It is a deal between two companies. Government of India will support any kind of investment in Indian markets. Certainly, that [the deal] will go smooth,” Pradhan explained. The UAE’s investments in the mega refinery project and Indian Strategic Petroleum Reserves Ltd’s underground oil storage facility in Padur, south of India, are examples of “the UAE’s commitment to do more business with India,” he said. As a supplier of crude oil and petroleum products to India, the UAE will now have a major role in India’s transition to become the top energy consumer in the world, the minister added. “Now, India is the third-largest energy consumer in the world. With a projected energy demand growth of 4.2 percent per annum, India will become the top energy consumer in the next 15 years,” Pradhan said. More people are joining the energy consumption club thanks to the expansion of India’s rural electrification and Liquefied Petroleum Gas supplies networks, he concluded.
Pradhan meets GECF Secretary-General, discusses trends in global gas markets, energy transition
Petroleum and Natural Gas Minister Dharmendra Pradhan on Thursday met Secretary-General of the Gas Exporting Countries Forum (GECF) Yury P. Sentyurin and discussed trends in global gas markets and energy transition. “Met with HE Yury P. Sentyurin, Secretary-General of @GECF_News. Discussed the trends in global gas markets and energy transition. Also explored collaboration with GECF for undertaking more studies on gas market in India,” he said in a tweet. Earlier, Pradhan met Qatar’s Minister of State for Energy Saad Sherida Al Kaabi and discussed bolstering bilateral cooperation in hydrocarbons sector. “Had an excellent meeting with HE Saad Sherida Al Kaabi, Minister of State for Energy and CEO, Qatar Petroleum. We discussed further strengthening cooperation in the hydrocarbons sector. Qatar has been a long-standing energy partner for India and also our biggest LNG and LPG supplier,” Pradhan said in a tweet. The minister said that discussions were held to collaborate with Qatar to develop an energy-efficient environment to transform India into a gas-based economy. “We discussed the existing arrangements for purchase of LNG from Qatar and agreed to work beyond the buyer-seller relationship in the hydrocarbon sector. We also discussed to collaborate with Qatar to develop an energy-efficient environment to transform India into a gas-based economy,” Pradhan said in a follow-up tweet. Pradhan is currently on a three-nation visit to Saudi Arabia, the UAE and Qatar to engage with his counterparts in oil and gas as well as steel sectors in these countries. The visit began from September 7 and will conclude on September 12. “During his meetings, the minister will seek to further enhance cooperation with Saudi Arabia in the entire value chain of the hydrocarbon sector. Saudi Arabia has traditionally been a top supplier of crude oil to India,” an official statement said.