Gulf Petrochem Group Marks First-Ever Bunker Supply by Barge at Indian Port of Paradip in Odisa
Gulf Petrochem Group, the UAE based global bunker supplier, has set another milestone in its operations with the successful execution of the first-ever bunker supply by barge at the non-conventional port of Paradip in Odisa, India’s east coast in a joint effort with Indian Oil Corporation Limited (IOCL). Gulf Petrochem arranged for the supply of 810 metric tonnes of bunker fuel IFO 180 CST by barge, which marks a major achievement for the company. Typically, supplies were made to the non-regular bunker port of Paradip only by Road Tanker Wagons (RTW) and for small volumes. MT Dolphin, a bunker barge, was introduced to expedite the supply of the 810 MT cargo to the vessel MV COUNTESS I, highlighting a major triumph for both Gulf Petrochem and the Port of Paradip. IOCL, the only physical supplier, had recently introduced the duty-free 180 CST for vessels calling at Paradip. But the supplies were made through RTWs at berth. With the introduction of MT Dolphin, bigger future volumes of bunker fuel requirement at the port can be seamlessly met. Mr. Manan Goel, Group Director of Gulf Petrochem, said: “The supply of bunker fuel by barge to Paradip will significantly scale up the efficiency of the port, and underlines our commitment to strengthen our operations and deliver truly value-added services. In future, larger volumes of bunker fuel can be supplied that will facilitate bigger vessel arrivals to Paradip, with it evolving as a strategic port on the east coast of India. We were venturing into uncharted waters, and are thankful to the support of all our partners for their close coordination that made the planning and execution smooth.” With Gulf Petrochem supplying to MV COUNTESS I, future bunker supplies at berth or inner anchorage can be executed by barge. MT Dolphin is a IV class barge of 500 MT capacity of Fuel Oil and 50 MT of Gas Oil, with a pumping rate of 150 MT-200 MT per hour for FO and 25 MT for Gas Oil. Gulf Petrochem will also arrange for the supply of smaller quantities by RTWs at berth of up to 250MT supplies in a single day. Gulf Petrochem, a worldwide bunker supplier, has bunker facilities in the UAE, India, Singapore and the entire Amsterdam, Rotterdam, Antwerp (ARA) region through its representative offices. About Gulf Petrochem Group Gulf Petrochem Group is a leading player in the oil industry, specializing in Oil Trading and Bunkering, Oil Refining, Grease Manufacturing, Oil Storage Terminals, Bitumen Manufacturing, and Shipping and Logistics. Headquartered in United Arab Emirates, and having a presence in South Asia, the Far East Asia, Africa and Europe, Gulf Petrochem has emerged as one of the well-established manufacturers and traders of petroleum products in major parts of the world. Denver Broncos Authentic Jersey
China, India’s EV push prompts IEA oil demand review
Plans by China and India to adopt energy policies that will boost the use of electric vehicles (EVs) in the coming years have prompted the Paris-based International Energy Agency (IEA) to announce that it will review its long-term oil demand forecasts. China is aiming for one-fifth of all car sales to be comprised of vehicles using alternative fuels by 2025, while India is looking at electrifying all new vehicles by 2032. The IEA said the targets were ambitious and that it would adjust its projections for crude oil demand and EV use for the next issue of its World Energy Outlook 2017, which is due to be published in November. China and India currently consume 11% and 2% of global gasoline demand respectively. The World Energy Outlook 2016 forecast oil demand for vehicle use to rise until 2040. PTI reported this week that a switch to EVs could save India US$60 billion in gasoline and diesel costs and cut carbon emissions by 1 gigatonne by 2030, based on a report carried out by NITI Aayog and the Rocky Mountain Institute. India would need to sell some 10 million EVs in 2030, as against the approximately 1.3 million EVs on the road globally in 2015. India now has around 5,000 EVs on the road. “The exact formulation of the target and the extent of its long-term achievement … is a good step that will help India to be among the global leaders in deploying a technology that is crucial to [tempering] increasing oil import needs, local air pollution in cities, and [limiting] CO2 emissions,” the IEA said. A major shift to EVs is expected to have a big impact on Asia’s gasoline market, and consequential effect on refineries as demand falls. More than a third of the world’s refineries are located in Asia, where demand for products has been driving global oil demand. China trails only the US in oil consumption, while India comes fourth and Japan third. “The choices made by China and India are obviously most relevant for the possible future peak in passenger car oil demand,” Reuters quoted an IEA spokesman as saying. CleanTecnica reported last week that China’s Guangzhou Automobile Group (GAC Group) had started building an EV production factory in Guangdong Province. The plant will cost US$700 million to build and have a capacity to produce 200,000 cars per year when it is complete at the end of 2018. Matt Bryant Authentic Jersey
Analysis: Indian jet fuel, LPG demand shrugs off demonetization impact
Jet fuel and LPG have turned out to be the shining stars in India’s oil demand basket so far in 2017 as rapidly growing air travel and New Delhi’s clean fuel energy push are helping the two fuels to post the sharpest growth rates among all oil products. As air travel continues to grow amid intensifying competition among airlines offering competitive fares, jet fuel demand rose by 9.5% year on year in April, to 610,000 mt from 557,000 mt from a year earlier, according to data from the Petroleum Planning and Analysis Cell. In the cumulative January-April period, jet fuel demand surged 12% year on year to 2.46 million mt from 2.19 million mt a year earlier. “While demonetization has affected consumption of some oil products, it has not affected air travel because most air tickets are booked using credit cards. Not much cash is involved. Therefore, jet fuel demand remains robust, said Tushar Bansal, director at Ivy Global Energy, a Singapore-based oil and gas consultancy. India announced the scrapping of 1,000 and 500 rupee notes with immediate effect on November 8, 2016, in a move aimed at curtailing the shadow economy but which also led to a slowdown in demand for various commodities over the following months. According to CAPA – Centre for Aviation, an independent provider of market intelligence for the aviation sector, India is likely to overtake Japan in 2017 to become the world’s third-largest domestic aviation market, behind the United States and China. In reaching this milestone, India will have achieved average domestic annual traffic growth of over 15% since the liberalization of the sector commenced in 2003-04 (April-March). While domestic traffic could grow by nearly 25% in 2017-18 (April-March) and approach 130 million passengers, international travel could growth by about 10%-12%, CAPA added. Strong economic fundamentals have contributed to the growth, although traffic has been over-stimulated by low fares. “India’s status as the fastest growing aviation market in the world creates tremendous opportunities. But risks are also heightened as the inadequacy of India’s infrastructure planning, a fast emerging shortage of skills, flawed policy initiatives, and weak regulatory oversight threaten to become major stumbling blocks,” according to a CAPA report on India’s aviation outlook. Prime Minister Narendra Modi has said that in the global civil aviation market, India, which is currently the eighth-largest market in the world, would become the third-largest by 2034, adding that growth in the aviation sector would multiply demand for aviation fuel in India four times by 2040. Rising domestic demand is taking a toll on India’s jet fuel exports as more cargoes find their way into local markets. Jet fuel exports in the first quarter of 2017 fell almost 12% year on year to 1.75 million mt, from 1.99 million mt in Q1 2016. Market participants expect India’s jet fuel exports to maintain a downward trend as domestic demand is expected to remain robust in the foreseeable future. LPG SPREADS ITS WINGS While LPG demand grew by only 2.6% year on year in April to 1.63 million mt, from 1.59 million mt a year earlier, it has been the second-fastest growing fuel this year, with demand rising by 6.1% year on year to 7.31 million mt in the January-April period, from 6.9 million mt in the same year-ago period, PPAC data showed. “The government is expected to speed the pace of distribution of subsidized LPG connections to the poor. That will keep the demand growth at double digits,” Bansal added. India is expected to invest $3.9 million-$4.7 billion in developing infrastructure facilities for LPG to raise household connections to 95.5% by 2020, oil ministry officials said Friday. State-own Indian Oil Corp plans to spend 10% of its overall capex of $3.1 billion for 2017-18 on strengthening the infrastructure for LPG including setting up of terminals and bottling plants. But despite the capacity build-out, IOC’s chairman B. Ashok said he expects India to continue importing LPG at least for the next 12 to 13 years after which he anticipates a slowdown in India’s LPG demand growth. India consumed 21.5 million mt of LPG in 2016-17, a 9.8% growth from the previous year (2015-16), according to the oil ministry updates. Half of the last year’s demand was met via imports, mainly from the Middle East. India’s LPG imports rose 23% year on year to 11 million mt of LPG in 2016-17. “Our main import destinations will continue to be the Middle East as shale gas production has made LPG price relatively a competitive option,” Petroleum Minister Dharmendra Pradhan said. India aims to increase the number of households with LPG access to 268.7 million in 2018-19, up by around a third from 199 million in 2016-17, and to add 10,000 new LPG distributors by 2019, the minister said. The renewed push on LPG saw 4,600 new distributors open in 2016-17. India’s overall demand for oil products in April rose 2.3% year on year to 16.79 million mt, or 4.4 million b/d, PPAC data showed. January-April oil products demand fell 1% year on year to 65.7 million mt, or 4.3 million b/d. “In line with our expectations, India’s oil demand is on a recovery path as the impact of demonetization fades,” said Sri Paravaikkarasu, Head of Oil, East of Suez, at consultancy FACTS Global Energy. “Transport fuels should continue to propel oil demand growth in the coming months although LPG and other products will also contribute to a 5% to 6% average growth for the year,” she added. “The double-digit growth in fuel oil in 2016 should reverse this year, while kerosene will track the negative trend.” Lorenzo Alexander Womens Jersey
Great Eastern Energy to invest $1 billion on natural gas, shale
India’s first producer of natural gas from coal seams in the country’s oldest mining region will spend about $1 billion to look for some of the newest forms of energy. Great Eastern Energy Corp. Ltd will invest as much as Rs 20 billion ($312 million) over the next four to five years to drill 144 new wells at its Raniganj block in the eastern state of West Bengal, according to chief executive officer Prashant Modi. The company, which began looking at the block in 1993, will invest an additional Rs 50 billion in other unconventional assets, including shale. “We are thinking about shale in the manner we thought of coal-bed methane more than 20 years back,” Modi said in an interview in New Delhi on Monday. Prime Minister Narendra Modi’s administration is easing rules to make exploration more attractive in a bid to reduce imports. The government has freed gas prices, given marketing autonomy to producers, and approved a uniform licensing policy that will give operators the right to explore all forms of oil and gas resources, including coal-bed methane, shale gas and oil under a single license. “These steps will help push India’s goal to produce more hydrocarbons locally,” according to Great Eastern’s Modi. “We expect about 15 CBM blocks that had been sitting idle should see some development starting.” Budding industry India has awarded 33 blocks for extracting coal-bed methane, but only three have started production so far. Billionaire Mukesh Ambani-owned Reliance Industries Ltd. last month began commercial production from its coal-bed methane block in central India after winning extraction rights in 2002. Great Eastern, which was the first to start coal-bed methane production in India in 2007, currently produces 500,000 cubic metres of gas a day at the Raniganj block, while Essar Oil Ltd said last year it produces about 900,000 cubic metres a day from another block in Raniganj, where coal mining started in the 18th century. Producing gas from coal beds is a budding industry in India. Coal-bed methane contributed only about 1% to the total gas consumption in India in the year ended March, which is estimated to have established reserves of about 10 trillion cubic feet of the fuel. In contrast, coal-bed gas production on Australia’s east coast is used to supply its domestic market as well as feed three liquefied natural gas projects that sell the fuel to buyers across Asia. Patchy infrastructure India is seeking to increase the share of natural gas in the nation’s energy mix to 15% by 2020 from 6.5% and is investing over $8 billion to develop the gas market in eastern India, including building new pipelines and import terminals. The company sells most of its output to about three dozen industrial companies close to the block such as steel mills, sponge iron plants and bakeries, limited by a lack of infrastructure such as a regional pipeline to take output further afield. “More infrastructure means greater market access for gas producers like us,” Modi said. “Maybe we can take our gas to a bigger market like Kolkata in the future.” Ryan Switzer Authentic Jersey
Nearly 30 candidates in race for ONGC CMD’s job
More than two dozen candidates including Oil and Natural Gas Corp (ONGC) director Shashi Shanker and Oil India director Biswajit Roy have applied for the top job at India’s most profitable company, ONGC. At the close of application for the job last week, nearly 30 candidates applied for replacing incumbent chairman and managing director Dinesh K. Sarraf when he retires on 30 September this year. The candidates are being screened and the shortlisted will be called for the interview to be held next month, people privy to the development said. Top of the list of candidates is ONGC director for technical and field services Shashi Shanker. None of the other five functional directors of ONGC were eligible to apply as they did not have the requisite service of two years left. ONGC Videsh Ltd director (finance) Vivekanand has also applied and so have three of ONGC’s executive directors—Sanjay Kumar Moitra (asset manager for Bassein and Satellite Fields), Rajesh Kakkar (asset manager of Mumbai High fields) and A.R. Morbole (asset manager of Neelam-Heera fields). The people said OIL director for human resources and business development Roy too has applied for the ONGC job. Besides, Balmer Lawrie chairman and managing director Prabal Basu has also applied. Once PESB selects a person after interviews, the name will be forwarded to the government for approval. The administrative ministry will first seek clearance from anti- corruption agencies and then forward the name for approval to the Cabinet Committee on Appointments (ACC). Incumbent Sarraf has been the head of ONGC, India’s largest oil and gas producer, since March 2014. He will retire on attaining the superannuation age at the end of September. The new head will have his job cut—rapidly increasing oil and gas production to help achieve Prime Minister Narendra Modi’s target of cutting country’s oil import dependence by 10% by 2022. Since the time Modi set the target in March 2015, oil dependence has only gone up—from 77% to 81%, mainly because of stagnant domestic oil output pitched against a rising local demand. ONGC being the flag-bearer will have to raise domestic output to meet the target. Torrey Smith Jersey
Indian Oil Team Holds Fresh Talks on Farzad-B
Senior Iranian and Indian officials met in Tehran on Tuesday to discuss and settle a recent dispute over oil and gas ties. The meeting was held between Amirhossein Zamaninia, deputy oil minister for international affairs, and an Indian mission, led by Foreign Secretary Subrahmanyam Jaishankar, Shana, the Oil Ministry news service reported. Following the lifting of international curbs against Tehran last year, Indian company ONGC Videsh Ltd. ramped up efforts to secure the development rights of Farzad-B, a large gas reservoir in the Persian Gulf. But Tehran says the ONGC proposals are not financially attractive. In response to the rebuff, Indian state refiners announced plans to cut crude oil imports from Iran by a quarter in fiscal 2017-18, a measure that led to an exchange of strong words between the two governments. “Senior officials in both countries are willing to discuss and find an agreement over the Farzad B project,” Zamaninia was quoted as saying. “The two sides agreed to a meeting between representatives of ONGC Videsh (OVL) and National Iranian Oil Company executives, including chief executive officer Ali Kardor and deputy for development and engineering, Alireza Manouchehri,” he said. The field was discovered by a consortium of Indian companies in 2008, but they could not obtain the field’s development rights due to international economic restrictions imposed over Iran’s nuclear dispute. Unsettled oil dues of private Indian refiners as well as schemes to carry Iran’s natural gas to India were also discussed. Last month, Oil Minister Bijan Namdar Zanganeh underlined India as one of the “good costumers” of Iranian oil, but asserted that “We cannot sign a contract under threat.” Both sides had hoped to wrap up the Farzad-B deal by March. But as it turned out, hope alone was not enough. Iran has also asked other countries to submit their proposals for developing the huge oilfield. Dion Lewis Jersey
Government likely to rank State Transport Corporations
The Narendra Modi government will soon come out with a policy to reward the best-performing state transport corporations through central funding to move to less polluting electric buses and set up charging and maintenance infrastructure. The scheme being conceptualised by the transport ministry will involve ranking of the state transport corporations across the country on the basis of financial performance, connection to towns and villages and condition of bus terminals and passenger amenities. The best performing ones will be shifted to electric mobility gradually. In the first year, the ministry wants around 5,000 such buses to go on road to be increased to almost 30,000 in the second. “Currently, state transport corporations incur heavy losses because of bad management and high maintenance and operations cost. The ones which perform well as per our performance standards would be given electric buses,” a top roads ministry official said. “It will bring down running cost by almost half. Currently, on an average, every transport corporation makes losses to the tune of `20 per km. Electric mobility will completely wipe out their losses, besides saving a lot on carbon emissions,” the official said. The government is separately working on a policy to move India to electric mobility in a major way by 2030 as a part of its green initiative. Separately, a proposal to buy almost 2 lakh e-cars for government departments, ministries and other bodies is also being considered. In a recent interview to ET, roads transport and highways minister, Nitin Gadkari said the government would come out with the electric vehicles policy by the end of the year. Gadkari added his ministry will soon have a fund to procure such buses. Gadkari’s ministry has already floated a proposal saying that electric taxis should be exempted from all permits and various state taxes to make acquisition and operation of such cars as commercial vehicles easier and cheaper. “With the kind of volume that India will give to these companies is going to be unprecedented. The ministry has already offered sops such as land to Tesla to manufacture in India. Once we make a visible push towards electric mobility, such companies would come on their own,” the official said. Tom Compton Womens Jersey
NDA beats UPA, rolls out roads faster
The government’s work order for highway expansion has shot up by 122% during the first three years of Modi government and the pace of construction has gone up by 25%, according to data released by the road transport and highways ministry. During 2011-2014, daily highway construction was about 13 km in comparison to 17 km during the three years’ of Modi government. The acceleration in award of works to road builders — over 11,000 km on an average in the past three years against only 5,000 during UPA’s corresponding period — has significance considering that this will translate into actual construction of roads by April 2019 when the government faces election. It is expected that by 2019, the government will be in a position to achieve more than 30 km of highway construction per day, a source said. Highways minister Nitin Gadkari has set the target of pushing daily highway construction to 41 km. Highway development is considered one of the biggest job generators and increased road connectivity has been recognised as a major contributor to economic activities even in the hinterlands. However, for the current financial year, the government has set the target of awarding at least 30% of highway projects on public private partnership (PPP). Last year only 17% projects were bid out on PPP mode. Similarly, shipping ministry data show high increase in capacity of 12 major ports under government from 745 million tonnes in 2012-13 to 1,065 million tonnes in 2016-17. The total cargo handled at all these ports have also increased from 570 million tonnes in 2011-12 to 648 million tonnes during the last financial year. Officials said there has been a greater cohesive planning in the road, rail, shipping and waterways sectors to improve connectivity, which was missing during the earlier government. Target for smart tags The government has set the target of a three-fold increase in installation of FASTags in vehicles in the next one year. Till March end, about 4.1 lakh such tags have been fixed in vehicles, which allow these vehicles to pass through toll plazas on highways without waiting at toll gates. At a meeting chaired by PM Narendra Modi earlier this month, the roads ministry has been asked to increase it to 15 lakh by April 2018 and 25 lakh by 2020. Paul Molitor Jersey
UDAN may hit air pocket with MIAL, give only 8 slots for RCS flights
The government’s ambitious UDAN scheme may hit air pocket with the Mumbai airport authorities allocating only eight slots for the RCS flights. The Civil Aviation Ministry had sought 20 slots from the Mumbai International Airport Limited (MIAL) for operating flights to unserved and under-served airports from the country’s second busiest aerodrome. “Since we have severe slot constraints and are unable to accommodate the request of even scheduled carriers for more flights, we could provide only eight slots for the RCS flights,” a source said. The GVK-AAI run Mumbai airport, which has become the world’s busiest airports with a single-runway operations, handled 837 flights a day or one in 65 seconds on an average in fiscal 2017, taking over London’s Gatwick airport that had 757 flights a day. It handled 45.2 million passengers in the last fiscal, accounting for 18.6 per cent of the total air traffic in the country. “We also have request from the government to provide slot for a flight to Shirdi airport, which is expected to commence operations soon,” the source said adding that the Government is well-aware of the slot crunch at the Mumbai airport. When contacted, MIAL spokesperson was not available for comment. The ‘Ude Desh ka aam Nagrik’ (UDAN) scheme, under which airfares have been kept at Rs 2,500 for a one hour flights, is aimed at making the air travel more affordable and providing air services to the hinterland. In the first round of UDAN bidding, five airlines won bids to operate on 128 routes connecting 70 airports, of which 31 are un-served. Davante Adams Womens Jersey
Business as usual won’t help Air India balance books: Ashok Gajapati Raju
Civil Aviation Minister Ashok Gajapathi Raju today said Air India’s books are “bad”, and “business as usual” is not going to help it, but the Government wants the airline to survive. AI is grappling with “legacy” issues, he added. The minister’s remarks came against the backdrop of Air India Chairman and Managing Director Ashwani Lohani stating in a Facebook post earlier this week that the massive debt on Air India’s books is the root-cause of all its woes. Lohani termed the over Rs 48,000 crore debt as “insurmountable” and blamed the policies of the erstwhile UPA government for its precarious finances. “Air India is a lovely airline. It has all legacy issues. Its finances are very bad…The books are so bad that the business, as usual, is not going to help it,” Raju told reporters here, after inaugurating Integrated Operational Office Complex building of the AAI, DGCA and the BCAS. “It is a nice airline, and I would like it to survive,” he said, adding that he is “open” to suggestions from any quarters for the airline’s turnaround. “Of course there are people who praise it, there are people who bash it. I am not one of the bashers. But I am also not a blind praiser,” he added. Air India, which is surviving on a Rs 30,000 crore bail-out package spread over 10 years announced by the Manmohan Singh government in 2012, is working on ways to improve its financial position. In the 2015-16, the airline posted an operational profit of Rs 105 crore on account of low fuel prices and increased passenger numbers. Currently, its debt is estimated to be a little over 48,000 crore, with nearly a third of borrowings on account of the aircraft acquisition. A consortium of 19 lenders has extended loans to the national carrier. It is looking to re-jig a debt of Rs 10,000 crore under the scheme for the sustainable restructuring of bad assets floated by the Reserve Bank. Anthony Castonzo Jersey