Indraprastha Gas Q3 results: Net profit rises 18 per cent to Rs 3.35 billion
Indraprastha Gas Ltd on Wednesday reported a 18 per cent rise in December quarter net profit after city gas sales recovered after easing of coronavirus lockdown restrictions. Standalone net profit in October-December at Rs 3.3487 billion compared with Rs 2.8359 billion in the corresponding period of the last fiscal, the company said in a statement. IGL retails compressed natural gas(CNG) to automobiles and piped natural gas (PNG) for cooking purposes for household and as fuel to industries in the national capital and adjoining towns such as Noida, Greater Noida and Ghaziabad. “Both physical and financial performance of the company reflect a strong recovery after the second quarter due to gradual easing of restrictions and beginning of f unlock period leading to increased economic activity. Sales have picked up steadily and presently have touched pre-lockdown levels,” it said. “The numbers showed strong resurgence from the impact of lockdown in the first half of the fiscal,” the company added. IGL sold 6.26 million standard cubic metres per day of gas during the quarter as most of the lockdown restrictions started getting relaxed except reopening of educational institutions. Total gross sales were lower at Rs 15.8736 billion against Rs 18.3116 billion during the third quarter of FY’20.
GAIL hopes to end sale of US-sourced LNG from 2023
Gas firm GAIL (India) Ltd expects to end overseas sales of the liquefied natural gas (LNG) it secures from the United States from 2023, as local demand rises with the commissioning of new fertiliser plants, a company official said. GAIL buys 5.8 million tonnes per annum (mtpa) of LNG from the U.S.-based projects. It has signed time and destination swap deals for some of these volumes to cut the landed cost for Indian customers and trade the remainder in overseas markets. “As consumption in India increases, sales in international markets will be less so this U.S. RLNG (regassified LNG) will be consumed by fertiliser plants and other industries,” said A.K. Tiwari, head of finance at GAIL. Last year GAIL sold 2.5 million tonnes of its U.S. supplies in global markets, its executive director Rajeev Singhal told an analyst conference. He said GAIL hopes to trade less than 2 million tonnes of its U.S. volumes this year, and in 2022 this could shrink to about 1 million tonnes. “From 2023 we will not be selling our U.S. LNG in foreign markets except for any arbitrage opportunity,” he said, adding crude oil at $60 a barrel had made GAIL’s Henry-Hub linked U.S. LNG affordable for price-sensitive Indian customers. The Ramagundam fertiliser plant in southern India is expected to reach full capacity by March, requiring 0.75 mtpa of LNG. Fertiliser plants at Durgapur in eastern India and at Gorakhpur in the north, requiring about 1.25 mtpa and 0.75 mtpa LNG respectively, will be commissioned later this year
India’s gas production rises above pre-COVID level: DGH
India’s natural gas production has risen above the pre-COVID level following the start of output from a KG-D6 field operated by Reliance Industries Ltd and its partner BP Plc, upstream regulator DGH said on Thursday. Natural gas production in the country in February 2020 was 80 million standard cubic meters per day and in January this year it reached 82 mmscmd, said Anand Gupta, Additional Director General (Development), Directorate General of Hydrocarbons (DGH). “Yesterday the production was 84 mmscmd,” he said at the ‘Upstream Ahead’ conference. “By end of the month, production is expected to reach 85 mmscmd,” he said. The rise in output, he said, was a result of Reliance Industries and its partner BP Plc of UK starting production from a field in their KG-D6 block. “BP along with Reliance has made it possible,” he said. DGH, the government custodian of upstream oil and gas production in the country, said production levels are likely to be higher in the 2021 calendar year. This will be the first year to see an increase in output since 2019-20. “Outlook for gas production is much better this year,” he said. While state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) continue to produce at almost the same levels as of November, the total gas production has risen because of R-Series fields in the KG-D6 block commencing production. “Production from BP-Reliance block has touched 6 mmscmd and is slated to cross 13 mmscmd by June,” he said. Peak production from R-Cluster will be 12.9 mmscmd, according to the operators. Satellite fields in the same KG-D6 block, which are supposed to begin output from the third quarter of the 2021 calendar year, would produce a maximum of 7 mmscmd. MJ field will start production in the third quarter of 2022 and will have a peak output of 12 mmscmd. According to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC), India’s gas imports (in LNG form) were almost flat during April.
PNB signs MoU with IndianOil for e-dealer financing
Punjab National Bank (PNB) has signed a memorandum of understanding with IndianOil Corporation to cater to the financing needs of dealers. The initiative will benefit IndianOil dealers with credit facilities at lower interest rates, nil margin and with minimum or zero collateral requirements through the PNB e-Dealer scheme. PNB said its electronic dealer finance scheme is a tailormade credit lending product crafted for IndianOil dealers. The loan can be availed maximum up to Rs 2 crore with zero-margin with no collateral security for a person who is having a dealership with IndianOil of five years or more. Existing proprietorships, partnerships, LLP companies, trusts or society entities having a valid dealership agreement with IndianOil can also avail the scheme. “The MoU is of special significance as Indian MSME sector is gearing up to serve the nation’s growing demand in post-pandemic times,” said Rajeev Puri, Chief General Manager of PNB’s MSME Division. “PNB is looking forward to bringing value to the entire ecosystem of dealer inventory financing starting with this best-in-class e-Dealer scheme with IndianOil. This first-of-its-kind deal will pave way for future speciality financing products that PNB 2.0 look forward to unveil,” he added.
With oil past peak, Shell vows to eliminate carbon by 2050
Energy giant Royal Dutch Shell vowed to eliminate net carbon emissions by 2050, accelerating previous targets, as oil production was set to slowly decline from its 2019 peak. The Anglo-Dutch company is in the midst of its largest overhaul yet as it prepares to expand its renewables and low-carbon business in the face of growing investor pressure on the oil and gas sector to battle climate change. In a strategy update, Shell outlined plans to grow rapidly its low-carbon businesses, including biofuels and hydrogen, but spending will stay tilted towards oil and gas in the near future. It will continue to rely on its retail business, the world’s largest, aiming to increase the number of sites to 55,000 by 2025 from today’s 46,000. It also plans to increase the number of electric vehicle charging points to 500,000 from 60,000 now. Shell did not outline any plans to grow its solar and wind power generation capacity, marking a stark difference from rivals, such as BP and Total, which both aim to boost their ownership of physical wind and solar farms. In the near term, Shell will invest at least $5 billion a year in what it calls its growth pillar, splitting the investment roughly in half between its trading and retail business and renewables units. It previously aimed to spend up to $3 billion on renewables and marketing combined. Its upstream business, or oil and gas production, will still attract a larger share of its budget at $8 billion. It will also spend $4 billion on its liquefied natural gas (LNG) business and up to $5 billion on chemicals and refining. Total spending is expected to remain within a range of $19 to $22 billion per year. “We will use our established strengths to build on our competitive portfolio as we make the transition,” CEO Ben van Beurden said in a statement. NET-ZERO EMISSION Shell, which said its greenhouse gas emissions peaked in 2018, accelerated its plans to reduce carbon emissions. It aims to reduce its net intensity by between 6% and 8% from 2016 levels by 2023. The target rises to 20% by 2030, 45% by 2035 and 100% by the middle of the century. The company had previously said it would reduce its net carbon footprint emission intensity metric by at least 3% by 2022, 30% by 2035 and 65% by 2050 from a 2016 baseline. Intensity levels represent emissions per unit of energy produced, technically allowing higher production. Most European energy majors have set some kind of net-zero carbon target by 2050. Shell’s ambition differs from BP’s in that it also covers the emissions from the end-use of products other companies have produced but which Shell sells to customers. Shell’s total carbon emissions, which include its own production of oil and gas as well as sales of products to customers, peaked in 2018 at 1.7 gigatonnes. Shell is the world’s largest oil and gas trader. Oil production is expected to gradually be reduced by 1% to 2% each year from a 2019 peak of around 1.8 million barrels per day, including divestments of oilfields and the natural decline of fields. But it will rely on revenue from its oil and gas division to pay for shareholder returns and the transition.
Targeting to conclude BPCL strategic sale by June: DIPAM Secretary
The government is targeting to conclude the strategic sale of BPCL in the June quarter, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Thursday. “I think we are targeting the first quarter (of 2021-22 fiscal). The engagement is intense now, it is at the due diligence stage. Our process is of value maximisation, and we have to take all precautions to see the value is maximised,” Pandey said at an event organised by Aditya Birla Sun Life Mutual Fund. The government has received three preliminary bids for buying of controlling stake in India’s second-largest fuel retailer Bharat Petroleum Corp Ltd (BPCL). Mining-to-oil conglomerate Vedanta had in November confirmed putting in an expression of interest (EoI) for buying the government’s 52.98 per cent stake in BPCL. The other two bidders are said to be global funds, one of them being Apollo Global Management. Pandey said privatisation of public sector units is a difficult task. However, it will be achieved when private sector shows interest in brownfield acquisitions. “As private sector interest revives through the slew of measures that the government has taken in terms of economy, the stimulus, the capex, we expect them to come and make disinvestment offerings one of the important aspects of their capital formation strategy which includes the brownfield assets which could be taken to new heights,” he said. Pandey said when the government invites EoIs for selling CPSEs, private sector too should show interest by placing bids. “You need two hands to clap and if we have an offering, we also expect that the private sector interest is also coming forward to pick up those offerings,” he said. The government has already invited bids for strategic sale of BPCL, Air India, Pawan Hans, BEML, Shipping Corp and Neelachal Ispat Nigam Ltd. Also, the process of sale of Vizag Steel or RINL has received Cabinet nod. On the proposed initial public offering of Life Insurance Corp of India (LIC), Pandey said the government is yet to decide on the size of the stake to be sold. For 2021-22, the government has set a disinvestment target of Rs 1.75 lakh crore, over five times what it is aiming to raise in the current financial year. In the Revised Estimates, the target has been set at Rs 32,000 crore for the current fiscal.
PM Modi to launch Rs 6,000 crore petrochemical project in Kochi on Sunday
The commercial sector of the state will witness a giant leap on Sunday when Prime Minister Narendra Modi will inaugurate a slew of development projects in the city, including the Rs 6,000-crore propylene derivatives petrochemical project at BPCL Kochi refinery, during his visit to Kochi. The project will help generate 5,00,000 metric tonnes per annum (MTPA) of propylene, one of the main feed-stocks of petrochemicals. Using this capacity, BPCL is strategically entering the petrochemical sector to reduce dependence of the country on imports of petrochemicals which is used to produce a wide range of articles as paints, printing inks, automotive parts, diapers, cosmetics, pharmaceuticals and so on. A few days ago, chief minister Pinarayi had laid the foundation stone for the petrochemical park in Ambalamugal. Various industries which use the raw material generated at Kochi Refinery such as automobiles, plastic manufacturing units, costumes manufacturing factories, textiles will be visiting the park. Another project that PM Modi would be launching is the Sagarika Cruise Terminal at Cochin Port. The Rs.25 crore project funded by Union tourism ministry will help enhance the capacity of Cochin Port to handle passengers of cruise ships which berth here. With the launching of the new terminal, the port has the capacity to handle 5,000 passengers at a time. Modi will also inaugurate the reconstruction of South Coal Berth at the port. The Rs.20cr work funded by shipping ministry will be beneficial for industrial units like FACT. The formal inauguration of RoRo vessel service in Willingdon Island-Vallarpadam sector will also be held alongside. Inauguration of Vigyana Sagar, a knowledge and skill development centre of Cochin Shipyard Limited (CSL), is also on the PM’s agenda for Sunday. The 70,000sqft education complex has been envisaged as a premium maritime learning centre in the country. “We are focussed on building top class ships as well as achieving our business goals. At Cochin shipyard, we believe, developing knowledge for young professionals is also equally important. The company came up with a plan to develop a knowledge and skill development centre to train young international talent,” said Madhu S Nair, chairman and managing director of CSL. Kerala chief minister Pinarayi Vijayan, minister of ports, shipping and waterways Mansukh Mandaviya, MP Hibi Eden and mayor M Anil Kumar would be attending the event. It is also learned that the Prime Minister will attend a BJP meet in Kochi on the day. Meanwhile, Kochi police have banned flying of drones in the city limits in view of the security arrangements during Modi’s visit. City police on Thursdays said in a statement that drones shouldn’t be flown in the city limits till February 15.
Government to spin-off NDR into separate company to boost oil, gas exploration
The government will create a company to own and operate India’s maiden National Data Repository (NDR) that stores information on the vast sedimentary basins in a bid to boost oil and gas exploration and production, a senior official said on Thursday. The NDR was launched in 2017 to assimilate, preserve and upkeep the country’s vast sedimentary data for future use in oil and gas exploration and production. “The government has decided that NDR will be transferred into a separate company — a separate independent company,” said Amar Nath, joint secretary in the Ministry of Petroleum and Natural Gas. Speaking at the ‘Upstream Ahead’ conference, he said the decision has been taken and formalities are being completed. NDR will acquire and store seismic and other data that can be used by any company for a fee to look for prospecting of oil and gas in the country. It aids the open acreage licensing regime where companies can choose areas they want to explore. Under the open acreage licensing (OAL), companies can visit NDR and look at the vast seismic data of currently producing fields and explored areas as also those of unexplored areas. From the areas that are not under any licensee, they can then carve out an area suitable to them and evince interest in doing exploration and production. Once an area is selected, the government will put it up for bidding and any firm offering the maximum share of oil or gas produced from the area would be awarded the block. NDR currently is housed with the Directorate General of Hydrocarbons (DGH) and its activities funded by the government. The idea behind spinning off NDR into a separate company is to make its operations financially independent — funding its activities from fees collected from companies buying data, an official said. The intent is to transform it to scale up efficiency in data management, share E&P data with a wider section of stakeholders, promote exploration activities, trigger quality data generation and mature into a database platform where data science methods including big data analytics can be used to gain subsurface understanding and mitigate risks in exploration. Nath said the government is also mulling providing oil and gas exploration and production (E&P) licenses to companies with all necessary environmental and other approvals so as to cut time to production. This is with an aim to make it easier to do business, he added. Speaking at the same conference, Oil Secretary Tarun Kapoor said the government is focused on increasing oil and gas production. “We have been trying to push up production, which has stagnated in recent years. Discoveries have been few and major discoveries are even fewer,” he said, adding the answer lies in using technology to process data to find prospective leads. He further said the priority is to have a larger area under exploration and subsequently move into production. Also, the objective is to raise output from currently producing ones. “Short term objective is to get more production and in the long term, have more discoveries,” he said. While licensing reforms have taken place, clearances and approvals must happen faster, he added. The government, he said, is working on a standard operating procedure and standard timelines, prescribing time for every stage of clearance.