Trump to promote U.S. natural gas exports in Russia’s backyard
President Donald Trump will use fast-growing supplies of U.S. natural gas as a political tool when he meets in Warsaw on Thursday with leaders of a dozen countries that are captive to Russia for their energy needs. In recent years, Moscow has cut off gas shipments during pricing disputes with neighboring countries in winter months. Exports from the United States would help reduce their dependence on Russia. Trump will tell the group that Washington wants to help allies by making it as easy as possible for U.S. companies to ship more liquefied natural gas (LNG) to central and eastern Europe, the White House said. Trump will attend the “Three Seas” summit – so named because several of its members surround the Adriatic, Baltic and Black Seas – before the Group of 20 leading economies meet in Germany, where he is slated to meet Russian President Vladimir Putin for the first time. Among the aims of the Three Seas project is to expand regional energy infrastructure, including LNG import terminals and gas pipelines. Members of the initiative include Poland, Austria, Hungary and Russia’s neighbors Latvia and Estonia. Trump’s presence will give the project a lift, said James Jones, a former NATO Supreme Allied Commander. Increased U.S. gas exports to the region would help weaken the impact of Russia using energy as a weapon or bargaining chip, said Jones. “I think the United States can show itself as a benevolent country by exporting energy and by helping countries that don’t have adequate supplies become more self-sufficient and less dependent and less threatened,” he said. Trump’s Russia policy is still taking shape, a process made awkward by investigations into intelligence findings that Russia tried to meddle in the 2016 U.S. presidential race. Russia denies the allegations and Trump says his team did not collude with Moscow. Lawmakers in Trump’s Republican Party, many of whom want to see him take a hard line on Russia because of its interference in the election and in crises in Ukraine and Syria, support using gas exports for political leverage. “It undermines the strategies of Putin and other strong men who are trying to use the light switch as an element of strategic offense,” said Senator Cory Gardner, a Republican from Colorado who is on the Senate Foreign Relations Committee. The Kremlin relies on oil and gas revenue to finance the state budget, so taking market share would hurt Moscow. “In many ways, the LNG exports by the U.S. is the most threatening U.S. policy to Russia,” said Michal Baranowski, director of the Warsaw office of think-tank the German Marshall Fund. COMPETITIVE ARENA The U.S. is expected to become the world’s third-largest exporter of LNG in 2020, just four years after starting up its first export terminal. U.S. exporters have sold most of that gas in long-term contracts, but there are still some volumes on offer, and more export projects on the drawing board. Cheniere Energy Inc, which opened the first U.S. LNG export terminal in 2016, delivered its first cargo to Poland in June. Five more terminals are expected to be online by 2020. Tellurian Inc has proposed a project with a price tag of as much as $16 billion that it hopes to complete by 2022, in time to compete for long-term contracts to supply Poland that expire the same year and are held by Russian gas giant Gazprom . “We would like to be a supplier that competes for that market,” Tellurian Chief Executive Meg Gentle told Reuters. A global glut in supply may, however, limit U.S. LNG export growth, regardless of Trump’s support. The glut has depressed prices and made it difficult for LNG exporters to turn a profit, said Adam Sieminski, an energy analyst with the Center for Strategic and International Studies. Russia has the advantage in Europe due to its proximity and pipeline connections. “Europe is going to be the great competitive arena between Russian gas and LNG,” said Daniel Yergin, the Pulitzer Prize-winning oil historian and vice-chairman with IHS Markit analysis firm. NORD STREAM Europeans will be watching to see whether Trump clarifies his administration’s position on a new pipeline to pump Russian gas to Germany, known as Nord Stream 2. The U.S. Senate in June passed a package of sanctions on Russia, including provisions to penalize Western firms involved in the pipeline. The new sanctions have stalled in the House of Representatives. The U.S. State Department has lobbied against the pipeline as a potential supply chokepoint that would make Europe more vulnerable to disruptions. The threat of sanctions adds to tensions between Washington and Berlin. Germany’s government supports the pipeline, and Trump’s position on it is a concern for European diplomats. Jamie Collins Jersey
GST shines on renewable energy sector
The renewable energy sector is quite content with GST provisions. Contrary to earlier fears of sale of solar equipment – panels, modules and inverters – being taxed at high rates, the GST on such sales has been set at 5 per cent. “The net effect on solar projects will be 3.5-4.5 per cent,” said Raj Prabhu, co-founder and CEO of Mercom Capital Group, which tracks the segment. “There will be issues with power purchase agreements as they will vary from state to state but 5 per cent GST is much more palatable than the expected 18 per cent.” The only worry is that for very small installations of 100 kw in residential sector, solar inverters used will invite 28 per cent GST. Similarly, in wind segment, sale of turbines and other equipment will attract GST of 5 per cent, the same as VAT did earlier. However, most wind equipment manufacturers also take on the task of setting up projects for developers, and this being a service, will attract 18 per cent GST, up from 12 per cent tax on engineering services earlier. “All engineering services are currently in 18 per cent bracket,” said D V Giri, secretary general, Indian Wind Turbine Manufacturers Association. “We have asked for the entire gamut to be brought into 5 per cent slab.” Solar projects involving civil and works contracts will be taxed at 18 per cent. “There will be an increase in solar tariffs to which key contributors will be operation and maintenance, component costs and civil, works contracts,” said Prabhu. A.J. Green Jersey
GST: LPG becomes costlier by Rs 32 as tax rate increases, subsidy comes down
Even as the Narendra Modi government basks in the glory of a successful launch of the Goods and Services Tax (GST), the common man has seen mixed cues, as prices of some products have gone higher, while those of some others have reduced. Reports said on Monday that households will have to shell out more for a cylinder of cooking gas or LPG (Liquefied Petroleum Gas) from this month, owing to the new tax regime combined with a reduction in subsidy. LPG has been put in the 5 per cent GST slab, where earlier some states had absolutely no tax on the household essential and some others had a VAT between 2 to 4 per cent. Not only this, the common man will also have to pay more as installation, administration and documentation charges for new connections and also for the mandatory two-year inspection, reported Times of India. Additional cylinders have also been put under 18 per cent tax slab. The price rise is expected to be anywhere between Rs 12 and Rs 15 per cylinder, in states that earlier levied no tax on the fuel. In other states, the rise will depend on the gap between the rate of GST on LPG and rate of VAT applicable earlier. Moreover, the amount of subsidy has also been reduced, effective June, 2017. Speaking to the TOI about the reduction in subsidy, National Secretary of All India LPG Distributors Federation Vipul Purohit said, “The subsidy amount of Rs 119.85 paid to eligible consumers in Agra, for example, till June has also been reduced. According to the new notification, they will receive only Rs 107 in their bank accounts.” When put together, both these changes will effect the prices by Rs 32 per cylinder, depending on the state, said TOI. Factors like transportation and storage logistics will be contribute to the difference in pricing between various states. It is pertinent here to mention that there has been no effect of GST on the subsidy, and that the subsidy amount varies every month, due to change in the gap with international price. On the other hand, the prices of commercial LP cylinders will come down by about Rs 69, due to GST. Earlier the total tax on LPG for commercial use attracted a tax levy of 22.5 per cent (8% excise duty and 14.5% VAT), while under GST, it has been put under the 18 per cent tax slab. Ivan Rodriguez Womens Jersey
IOC launches 450-kg jumbo LPG cylinder in Coimbatore
Indian Oil Corporation on Monday launched 450-kg Indane Jumbo LPG cylinder in the Indian market. Indane Jumbo called the “Mini-Bulk” is available in minimum footprint size with a flow rate of up to 2,000 kg/hour and does not require licence to use. Talking to reporters on the sidelines of the launch, Indian Oil Executive Director – Tamil Nadu and Puducherry, R Sitharthan said Coimbatore, being a very industrialised city, was the best place to introduce the product in India. “With this launch we expect to meet the need of industries where space is a constraint and constant changeover is not possible.” he said. Despite its size, “Jumbo” is easy to handle and can be installed quickly, as ease of operation was one of the primary things that were kept in mind when it was conceptualised, apart from meeting the high flow rate requirement, he said. Being the most profitable PSU in India and ranked 161st in Fortune 500 Global List, with a revenue of 54.7 billion US Dollars, IOC is handling 11 out of 23 refineries in India and 12,848 kms of pipelines across the country, he said. Launched in 1970, Indane is delivered to the doorsteps of over 98 million households and sales crossed 10 million metric tonnes (MMT) after registering 10 per cent year-on-year growth during 2016-17, he said. Indane is now available in compact 5 kg cylinders for rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and 47.5 kg and 450 kg for commercial and industrial use, Sitharthan said. With 91 bottling plants in upcountry locations with state-of-the-art safety features, two million cylinders are rolled out a day, making the company the second largest marketer of LPG globally, after SHV Gas of the Netherlands, he said. The company has released an all-tie high 15 million LPG connections (PMUY + non-PMUY) during 2016-17 against 10.3 million during the last financial year, he said. Sitharthan said that as of today, a total of 44,43,637 customers had joined the “give it up” campaign resulting into savings of Rs. 17.5968 billion. Martin Jones Jersey
ONGC Videsh enters Namibian offshore
ONGC Videsh Limited (OVL) is eyeing entry in the Namibian offshore oil assets through definitive binding agreements. An official statement said, OVL has signed definitive binding agreements with Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc, on June 28. These agreements are for acquiring 30 per cent participating interest in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B and related agreements (License) out of Tullow’s existing participating interest of 65 per cent in the License. Pan continental Namibia (Pty) Limited with 30 per cent Participating interest and Paragon Oil and Gas (Pty) Limited with 5 per cent participating interest are other partners in the License. Tullow is the operator of the License and shall continue to remain operator after acquisition by ONGC Videsh. The acquisition is subject to satisfaction of customary conditions precedents including approvals of Namibian regulatory authorities and joint venture partners. Captain Munnerlyn Jersey
French energy giant Total to sign Iran gas deal, biggest since sanctions lifted
French energy giant Total will finally sign its multi-billion-dollar agreement to develop an Iranian offshore gas field on Monday, the oil ministry said, in the biggest foreign deal since sanctions were eased last year. “The international agreement for the development of phase 11 of South Pars will be signed on Monday in the presence of the oil ministry and managers of Total, the Chinese company CNPC and Iranian company Petropars,” a ministry spokesman told AFP. Total signed a preliminary deal with Iran in November, taking a 50.1 percent stake in the $4.8 billion (4.2 billion euro) project. China National Petroleum Corporation (CNPC) will own 30 percent and Petropars 19.9 percent. Total will put in an initial $1 billion for the first stage of the 20-year project. The gas produced will “feed into the domestic Iranian market starting from 2021,” a Total spokesman told AFP in Paris. He said the company would “implement the project with the strictest respect for national and international law”. The contract was initially due to be signed in early 2017, but CEO Patrick Pouyanne said in February that Total would wait to see whether the US adminstration of President Donald Trump reimposed sanctions on Iran. Trump threatened during his campaign to tear up the landmark accord between Iran and six world powers that came into force in January 2016 and eased sanctions in exchange for curbs to Tehran’s nuclear programme. His administration has taken a tough line on Iran and imposed fresh sanctions related to its ballistic missile programme and military activities in the region. But the White House has kept the nuclear deal alive, continuing to waive the relevant sanctions every few months as required under the agreement. It is partway through a 90-day review on whether to uphold the deal, although any move to abandon it would be strongly opposed by the other signatories — Britain, France, Germany, China and Russia. Monday’s signing will mark Total’s return to Iran, which has the second-largest gas reserves and fourth-largest oil reserves in the world. The French firm led development of phases two and three of South Pars in the 1990s and had signed up to develop phase 11 back in 2009. But it was forced to abandon its projects in Iran in 2012 when France joined European Union partners in imposing sanctions, including an oil embargo, over the country’s nuclear programme. Iran’s oil officials have been keen to attract Western investment and know-how to improve the country’s outdated energy infrastructure. Iran has also signed preliminary agreements with Shell and Russia’s Gazprom to develop oil and gas projects. Such deals have not been without controversy in Iran, which has bitter memories of exploitation and interventions driven by foreign oil interests. Conservatives criticised the move to award tenders to foreign firms last year. That forced the oil ministry to confirm that domestic conglomerates, including one controlled by the elite Revolutionary Guards, would be allowed to compete. The first stage of the new 20-year project at South Pars will cost around $2 billion and consist of 30 wells and two well-head platforms connected to existing onshore treatment facilities. The site will eventually pump 50.9 million cubic metres (1.8 billion cubic feet) of gas per day into Iran’s national grid. Paul Byron Jersey
Germany produced record 35 per cent power from renewables in first half 2017
Germany raised the proportion of its power produced by renewable energy to 35 percent in the first half of 2017 from 33 percent the previous year, according to the BEE renewable energy association. Germany is aiming to phase out its nuclear power plants by 2022. Its renewable energy has been rising steadily over the last two decades thanks in part to the Renewable Energy Act (EEG) which was reformed this year to cut renewable energy costs for consumers. Germany has been getting up to 85 percent of its electricity from renewable sources on certain sunny, windy days this year. The BEE reported on Sunday the overall share of wind, hydro and solar power in the country’s electricity mix climbed to a record 35 percent in the first half. The government has pledged to move to a decarbonised economy by the middle of the century and has set a target of 80 percent renewables for gross power consumption by 2050. It aims to cut greenhouse gas emissions by 40 percent in 2020 from 1990 levels and 95 percent by 2050. Reggie White Jersey
Telangana set to generate 5,000 Megawatt solar power by 2019
Telangana is set to cross the 5000 MW solar power generation capacity by 2019 , more than the 1300 MW installed capacity at present. This, officials said, was because the state adopted a distributed development model which is supported by the Centre. Under this system, solar project developers are offered opportunity to develop units based on the demand-supply situation with minimal operational losses. The renewable energy capacity of the state will touch 3000 MW by this year end as projects which have been tendered and are under execution, are expected to be commissioned as per schedule. These projects were awarded during 2015 and are expected to come on stream before December 2017. The state government has signed power purchase agreements for 3800 MW of power from these units and all of them are expected to be operational by March-June 2018. By touching 3000MW-mark, the state will also cross another milestone of achieving over 15% of total energy contribution from renewable energy sector. Currently, Rajasthan, which generates 1300 MW solar power, tops the list in the country with the highest solar power generation. Unlike other states, Telangana has not opted for mega solar parks but has planned for a decentralized model wherein it assesses the extra demand in different parts of the state and floated tenders accordingly. The state government also seeking to encourage setting up of mini solar plants close to transformers so that it could help provide power to agriculture sector with less transmission and distribution losses. “The per capita consumption in Telangana has gone up to 1,390 units per annum as against 1,100 units. Consumption in Telangana ranks high among States. The 24×7 power supply has started giving dividends in the forms of improved living standards and increased industrial production,” D Prabhakar Rao, Chairman and managing director of Telangana Transco and Genco said. Betting high on rooftop solar power installations, the state government recently erected a 900- kilowatt solar power installation at Raj Bhavan, one of the biggest such installations in the state. Incentives are offered to households who opt for rooftop panels to harness solar power which includes subsidy on the panels. Taking advantage of this, scheduled caste development department has proposed to set up 3MW capacity rooftop installations on 230 residential schools maintained by the department. Enthused over the success of its model, state is planning to come out with a new solar-wind hybrid policy to accelerate the growth of the renewable energy sector. Teez Tabor Authentic Jersey
For a smooth takeoff: Corporate travellers must give employer details for tax credit
Airlines have written to its corporate travellers to register their companies’ or employers’ GST number to claim a tax credit. Corporate travellers form a significant chunk of the air traffic in India. They comprise between 30% and 45% of passengers of a low-cost airline and up to 60% for a full service airline. GST of 5% has been levied on economy-class airline tickets and 12% is charged on business class. “It is mandatory for guests travelling for business to add their company’s GST details at the time of booking. To ensure a seamless experience, we request that you inform your guests travelling for business to register on our portal and claim up to 12% back on flights,” Jet Airways said in the letter to its registered passengers. “After registering, simply add your guest’s GST number every time you make a booking, and all other GST related details will automatically be added to your reservation,” said the airline. Passengers who have not added their GST number at the time of booking may do so within 72 hours of booking their ticket or before their flight departure, whichever is earlier, the airline said. GST invoices will be shared with the passengers’ companies monthly, which can then be used to claim GST benefits. IndiGo and Vistara sent similar emails to their passengers. The government since yesterday implemented a new tax structure which seeks to to replace at least seven indirect tax heads. “Earlier too the companies could claim a tax credit for employees’ corporate travel,” said M Shivkumar, controller at Jet Airways. “The airline then provided a certificate to the corporates with the service tax details against which credit was availed. Now, all the data led by the GST number will be fed into the GST network along with tax invoice details. Corporate entities can then track the transaction in the system and claim credit for the same, which effectively means physical document per se is not adequate unless the same is uploaded in the GST network system,” he added. “Also in the case of airline travel, service tax was extremely difficult to claim and led to litigations sometimes. Now, it would be much easier,” said an independent chartered accountant on condition of anonymity. Michael Matheson Jersey
Cabinet May Consider Rs. 17,000 Crore Hydro Power Policy This Month
The Union Cabinet may take up for approval this month the hydro-power policy which aims to provide Rs. 16,709 crore support for stalled 40 hydel projects, entailing 11,639 MW capacity, and to classify all such ventures as renewable energy. “Power Ministry had finalised the policy last month and sent to the Finance Ministry for vetting before placing it for the Cabinet approval,” a source said. The source said: “The policy may be listed this month for deliberation and approval by the Cabinet.” Once it is approved, the distinction between large and small hydro plants would go, which would enable India to achieve clean power capacity of 225 GW by 2022. At present, a hydro power project of up to 25 MW is classified under renewable energy and is entitled to various incentives provided by the government. Projects beyond this capacity are not in this category and hence not entitled to the benefits. Out of the 30 GW installed power generation capacity, 44.59 GW comes from large hydro projects (above 25 MW) and 57.26 GW from other renewable power generation capacities. India has set an ambitious target of adding 175 GW of renewable energy capacity by 2022 which includes 100 GW of solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power (up to 25 MW capacity each). Under the policy, the government will provide interest subvention of 4 per cent during construction for up to 7 years and for 3 years after the start of commercial operation to all hydro power projects above 25 MW. It is proposed that the funding for this policy would come from coal cess or national clean energy fund or non-lapsable central pool of resources for Northeastern states for eight years till 2024-25. A Hydro Power Fund would be created under the power ministry for providing funds to the projects under the policy. The policy also provides for Hydro Purchase Obligation (HPO) for hydro projects of over 25 MW capacity. Under this, the discoms would be mandated to buy a proportion of power from these plants. However, this benefit would be available to those hydro power plants, which would be able to begin commercial operations after five years of notification of this policy. The policy would also mandate power ministry to engage with bankers and financial institutions for modifying lending terms and conditions for hydro power projects. Matt Prater Womens Jersey