Three Indonesian LNG cargoes to China delayed on coronavirus outbreak
* Shipments of three liquefied natural gas cargoes from Indonesia’s Tangguh LNG Plant to Fujian province in China have been delayed because of the coronavirus outbreak, Indonesia’s upstream oil and gas regulator SKK Migas said on Thursday * The cargoes were due to depart in the third week of February but shipments have been rescheduled to an unspecified later time, Arief Setiawan Handoko, SKK Migas’ deputy for finance and monetisation told Reuters by text * Indonesia’s Tangguh LNG plant is operated by a unit of BP Plc * Shipments to other destinations, such as Japan and Singapore, are so far not affected by the coronavirus outbreak in China which has now spread to other countries * Handoko said should the shipments be cancelled, Indonesia would prefer to sell the cargoes to a domestic buyer.
Vedanta’s Anil Agarwal says open to Cairn India stake sale
Diversified natural resource company Vedanta’s Anil Agarwal is open to selling stake in Cairn India to make it valuable for investors. Agarwal said that the company is interested in buying stake in BPCL. Agarwal said: “If any foreign company bids for BPCL, I welcome it. We will also do our due diligence and we will see if it is at right price for our shareholders, we will definitely be interested.” On BPCL However, the price of BPCL has jumped by 45 percent which is very high, he added. For a company which can make maximum $1 billion, having a market cap of $15 billion, looks very high, according to him. On Cairn India On Cairn India he said: “Cairn has a market of gas, oil, we have phenomenal infrastructure, we have offshore, we have onshore.” “Whether we do public issue, whether we sell some stake or sell some part of the asset, everybody is interested. I have never seen so much of interest in Cairn. I am open for any kind of stake sale but we are building up a huge fantastic oil and gas company.”
Vedanta interested in BPCL, keeping an eye on valuation
The Vedanta group will seriously evaluate acquiring the government’s stake in BPCL and will bid for commercial coal blocks that will be offered as it will itself need up to 100 million tonnes to generate power but its decisions would depend on the valuation of assets, its chairman Anil Agarwal said. Agarwal also said he expects private investment in India is likely to pick up in a year, and that the business community had a lot to gain from the deepening relationship with India as evident from the warmth between US President Donald Trump and Prime Minister Narendra Modi. He said the Vedanta Group had placed orders worth $4 billion to US companies for work related to its oilfields. “American companies want to invest in India. We have the same value system. Our credibility is very, very high,” he said. The government should quickly offer coal blocks and accelerate the process of disinvestment as “the government has no business to be in business”, he said. “Yes, we are interested in BPCL. There are synergies with our exploration business. We will look at it carefully when the actual offer is made,” he said. Even before the government invites bid, Agarwal has been closely watching the share price movement of BPCL, which have moved in the range of Rs 308 and Rs 550 in the past 52 weeks. “We have to see the valuation. The share price has moved up 40%-50% since the time the government announced its plan to sell stake,” he said. Bankers however expect BPCL’s sale to fetch an even higher price as the buyer would have to pay the control premium and the fact that the replacement value of BPCL’s asset is considered much higher than the market price. Agarwal is eagerly awaiting the opportunity to acquire coal blocks. “We are very keen. We are looking to bring the best international technology and diligently follow environmental norms.”
After Trump’s India visit, Oil and gas imports from United States set to increase
Energy cooperation is emerging as a key pillar of Indo-US strategic partnership that has the potential to surpass bilateral defence agreements. President Donald Trump’s visit saw the conclusion of a pact for the supply of US gas to India. Petroleum minister Dharmendra Pradhan described the energy ties as multifaceted, as India and the US signed the deal for strengthening collaboration between Indian Oil Corporation, Exxon and Chart Industries for supplying liquefied natural gas. The agreement will promote access to gas in areas where the current pipeline infrastructure has not been developed. Till the time that gas pipeline network is developed in the country transportation of gas through container is an efficient alternative. Exxon and Chart have expertise in transporting gas through containers and the agreement will give India expertise and facilities for transporting clean and efficient access to gas to areas yet to be connected through pipeline network. “We jointly reviewed the ongoing strategic energy partnership between our two countries and agreed to take it to the next level,” Pradhan tweeted after meeting US energy secretary Dan Brouillette. “Our energy equation with the US is now a multifaceted one — the Strategic Energy Partnership, established in 2018, has provided an effective institutional structure to align our interests, expectations and synergies. This is evident from the fact that the energy trade touched $7.7 billion last year — this intensity of energy exchange is a story of the last two years. There is much potential for further capital, technology and innovation infusion to develop better ecosystems in both countries. We see the relations only growing more robust and one that will be capable of withstanding the test of time,” Pradhan said. In 2019, India increased its intake of oil from the US to about 1,84,000 barrels per day, four times more than in 2018, and up from zero imports just four years ago. India’s energy imports from the US would reach $10 billion this year.US trade deficit with India declined from more than $22 billion in 2016-17 to around $17 billion in 2018-19 as India started importing oil and gas from America. In 2018-19, India’s crude import from the US stood at $3.6 billion and LNG import was at $527.14 million. In April-December 2019, India imported crude and LNG worth $3.7 billion and $576.28 million, respectively, from the United States, making it the sixth largest supplier of crude oil, and the fifth largest supplier of LNG, to India. Currently, the US-India Energy Strategic Partnership has four pillars — oil and gas; power and energy efficiency; clean and renewable energy and sustainable growth.