Gujarat: Petroleum experts mine Kutch rocks
There is a sudden rush of geologists, both from India and overseas, to study the sedimentary rock formations in the arid region of Kutch for oil and gas exploration. So even as oil and gas companies are yet to find commercial success here, these onshore rock reservoirs are a case study for carrying out drilling and other exploration activities in sea or offshore fields as they are called. The reason: hydrocarbon rocks found on the surface in Kutch have a striking similarity with those found under the seas in areas that are identified for hydrocarbon exploration. It is difficult to dig data from hydrocarbon blocks lying beneath the sea which makes Kutch a hot destination for oil and gas explorers to find success formulas for offshore studies. A team of sixteen scientists from British Gas plc and Reliance Industries Ltd recently visited the Kutch University, which has been studying these rocks. Next on the list are a team of scientists from Australia and Europe, said an official of Kutch University. Oil and Natural Gas Corp Ltd (ONGC) has already begun work to produce gas from the new sedimentary basin in Kutch offshore in the next few years. While the offshore basin is estimated to hold 1 trillion cubic feet of gas reserves that could put Kutch on India’s oil and gas map, the company is also studying the hydrocarbon deposits on rocks in inland areas. “The rocks on the surface are like open books for the petroleum geologists. They studied the oil extracts derived from sea rocks and found them akin to Kutch rocks. Similar was the case with fossils found inside the rocks,” said M G Thakkar, Head of Earth and Environment Science department of Kutch University. “This is important because the decomposed body of micro-organisms help in formation of oil,” he adds. The department is working with companies including RIL, BP, ONGC and other geologists who are studying these rocks, according to Thakkar. The geologists can also estimate the volume of oil reserve in offshore regions by studying the same kind of rocks that are found on the surface here. The hydrocarbon rocks found in Kutch are from the Tertiary Age; they are 65 million years to 200 million years old. About a few million years ago Kutch was submerged in the sea with the rocks beneath them. Over a period, the sea levels receded and made way for the land to emerge, with the rocks on the surface.
Market forces to benefit India, consumers; US gas can be competitive for India: FERC
US Federal Energy Regulatory Commission (FERC) Chairman Neil Chatterjee on Tuesday advocated market forces being allowed to decide energy markets, and said India has the appetite for the “competitive” US gas. FERC, which regulates the electricity and natural gas sector in the US, is discussing an MoU with India’s Central Electricity Regulatory Commission (CERC) to share its experience with the capacity market, oversight and enforcement, Chatterjee told reporters here. Drawing from the experience of US markets, he said subsidies distort price signals in the market. “Markets provide efficiencies and benefits to consumers. Ultimately market forces will be to the benefit of India and Indian consumers.” On this fourth trip to India in two years, the son of a migrant Indian, Chatterjee said the US has seen states subsidizing a form of energy generation that they prefer but “when states step back and do maths, they will see that their consumers have benefited to stay in the market”. “For markets to work efficiently, pricing has to be accurate,” he said, adding market forces are successfully driving down prices of all sources energy in the US. He said India desires to move to a gas-based economy but will have to rely on imports as unlike the US it does not have abundant affordable domestic supply. The US is now a net exporter of energy. “The US is providing an alternate source that is beneficial to our allies. And environmentally as well,” Chatterjee said. “US gas can be competitive and I think there will an appetite for US gas here.” India has signed up long-term contracts for 5.8 million tonnes per annum of liquefied natural gas (LNG) from US companies but imports only small volumes out of it because the rates, after including freight and taxes, are not considered viable by users such as in the power sector. “All the signals I see, people continue to be bullish about the price specs for US LNG,” he said. Also, India is looking at importing coal from the US, he said, adding such transactions will strengthen diplomatic ties between the two nations. FERC, he said, is engaged with the CERC on market design such as the wholesale competitive electricity market in the US. “Thrilled we will be able to share the experience (with CERC),” he said. “We have seen tremendous benefits in the US in terms of consumer cost, maintain electricity reliability and positive environmental impact,” he said.
Gujarat: Nayara Energy’s expansion plans face green challenge
Rosneft-backed Nayara Energy’s (formerly known as Essar Oil) plans for expansion of the existing refinery and setting up a new petrochemical complex at Vadinar near Jamnagar seems to have hit a hurdle after some villagers alleged that the company did not follow due process to get environmental clearance. Nayara Energy’s expansion plan includes setting up a 10.75 million metric tonnes per annum (MMTPA) capacity petrochemical complex and expansion of the refinery from 20 MMTPA to 46 MMTPA for a total investment of about Rs 1300 billion. A clutch of people from villages including Gagva, Khavdi, Meghpar, Padana, Jakhar, Vadinar, Timbdi, Devadiya and Lakhiya objected to grant of clearance by the Ministry of environment, forests and climate change (MoEFCC) on the grounds that a public hearing was not held, said Dilipsinh Jadeja who filed a petition in the Gujarat high court. He is a resident of a village near the Nayara’s project. The environment appraisal committee (EAC) under MoEFCC deferred the matter after it was approached by the company for environmental clearance, according to an interim order passed by the high court recently. The court order cites the statement of the senior counsel of the respondent which says that the expert appraisal committee is to convene a meeting between February 25 to February 27 but has deferred grant of environment clearance for Nayara’s expansion plans. Jadeja said that the company’s plans for expansion in Jamnagar was earlier on the agenda of the EAC for February 26 but now stands deferred. In August last year, a public consultation was held over grant of environmental clearance to Nayara’s proposed expansion plans. Local villagers and others to be affected by the project were required to send responses in writing to Gujarat Pollution Control Board (GPCB) member secretary till August 5. GPCB forwarded the responses to the MoEFCC for consideration of grant of EC, a government source said. This was perhaps the first time that GPCB chose the public consultation route instead of a public hearing, sources added. “There are legal guidelines that needs to be adhered to while granting environmental clearance. These rules have been grossly violated in this case. Such projects always require public hearing and it can’t be through public consultation,” said Jadeja. In August 2017, a Rosneft-led consortium acquired Essar Oil for $12.9 billion and it was later renamed Nayara Energy. “Environmental clearance for the Vadinar project was valid till 2018. However, the proposed expansion was not carried out in the stipulated time-frame by the earlier promoters. The new promoters have decided to scale down the project. Also, no additional land was required for the expansion, hence the public consultation route was chosen by GPCB,” said a government official in the know of the matter.