Iran finds 2 billion barrels shale oil reserves in western province – agency
Iran has found shale oil reserves of 2 billion barrels of light crude in its western Lorestan province, a senior official at the state-run National Iranian Oil Company (NIOC) was quoted as saying. “Based on studies, it is estimated that the shale oil reserves in Ghali Koh in Lorestan amount to 2 billion barrels of oil in place,” Bahman Soleimani, NIOC’s deputy director for exploration, told the semi-official news agency Tasnim. “The oil is light.” Soleimani said exploration was also being carried out for shale gas reserves in the area, and the studies were expected to be completed by October, 2017. Iran’s proven oil reserves of about 160 billion barrels, almost 10 percent of the world’s total, rank it fourth among petroleum-rich countries. John Jaso Womens Jersey
Trump effect on world energy will benefit India
Energy demand in the US and the West will remain flat because of increased energy efficiency. The United States, India, and the world are waiting to see what President Donald Trump’s words “only America first”, “buy American, hire American” and “protection” to “make America great again” mean in practice. What Trump means for the world’s energy policy and US-India cooperation on energy is particularly important. Energy is deeply entwined with the fundamental issues of international security, economic development, human health, climate change, and a whole host of subsidiary issues. A wise man once said, “Where a door is closed, a window is opened.” This metaphor is applicable to energy policy under Trump and what it means for India and the world. For example, Trump’s overwhelming emphasis on fossil fuels may be closing the door of US leadership on climate change and environmental protection. However, Trump’s stepping back on environmental effects of energy gives India the opportunity to play a pre-eminent world leadership role on this issue. Paradoxically, the Trump emphasis on fossil fuels, along with nuclear and hydro, also presents an opportunity for US-India cooperation on environmentally responsible energy security across the board. US energy policy is like a great ocean liner. It cannot be turned quickly and is subject to forces that are not within the control of the ship’s captain—even if that captain is Donald Trump. In the United States particularly, these forces include supply and demand as expressed through the market and free enterprise. Against this background, here is what the Trump effect will and will not mean for world energy policy. First, no change by the Trump Administration will alter the increasing demand for energy in the non-OECD countries of Asia, mainly India and China, as the main driver of world energy policy. According to the International Energy Agency, India’s energy demand will grow more than any other country’s from now to 2040. This demand must be accommodated. On the other hand, energy demand in the US and the West will remain relatively flat—not for lack of growth, but primarily because of increased energy efficiency. This shows that India and the world must view efficiency as a fuel and that a mutually beneficial system for moving energy technology and sources to India is highly desirable. Second, oil and gas are now in the US energy driver’s seat. Trump has appointed a plethora of men associated with oil and gas production to top posts. In a phrase made famous by Sarah Palin, former governor of Alaska and Vice-Presidential candidate, “drill, baby, drill” is winning out. The US is already the largest producer of oil and gas in the world, and under Trump such production will only become larger. The US was already projected to be energy independent by as early as 2018—meaning that it will be exporting more energy than it imports. The Trump Administration is likely to favour many international measures that increase the international exploitation of oil and gas. The Administration has already signalled approval of the Keystone pipeline that will bring oil from Canada through steel pipes made in America. There will be rapid permitting of LNG export projects that should benefit India. Third, Trump will decrease environmental regulations promoting renewables and will probably withdraw the US from the Paris Agreement. Trump Cabinet nominees acknowledged in their confirmation hearings that humans are contributing to climate change. However, they consider the degree of contribution and what to do about it as open questions. On the campaign trail, Trump said he would “cancel” the Paris climate change agreement. Later he said he had an “open mind” on the subject. However, Trump will certainly retract the Obama Clean Power Plan. This plan is the main mechanism for the United States meeting its commitments to lower its CO² emissions by 26%-28% of 2005 level by 2025. There is also a pledge of the developed nations to mobilise $100 billion a year by 2020 to fight climate change. The Trump administration is unlikely to see this as a priority. Thus, withdrawal seems likely. Fourth, in spite of Trump policies, natural gas and renewables will continue to replace coal in the US and world energy mix. India should capitalise on this trend. Trump loves coal. His attacks on Obama’s supposed “war on coal” were instrumental in his victory in several key states. While Trump has promised to bring back coal, the continued emphasis on gas fracking and technological developments in horizontal drilling are working against the resurrection of coal. With the rise of LNG, the phenomenon of natural gas competing with coal is becoming worldwide. This phenomenon is being driven by both price and the superior performance of gas from an environmental perspective. Solar and wind are precipitously dropping in price and have obvious environmental advantages. The shift to renewables backed by natural gas will continue regardless of Trump’s preferences. Under Prime Minister Narendra Modi, India has already taken a strong position on renewables. India’s leadership of the International Solar Alliance is but one example. Trump’s scepticism about renewables will provide further scope for India to assume leadership on solar and wind. In regard to nuclear and hydro, Trump seems to favour these as well as fossil fuels. Thus, India may find it easier to cooperate with the US in making all sources of energy more efficient and environmentally responsible. Thus, there is good news and bad news about the Trump effect on world energy policy. The good news is that it offers the opportunity for closer cooperation with India and most other nations on sources of energy across the board. The bad news is that the emphasis on the exploitation of fossil fuels may overwhelm US leadership on energy and the environment. The threats of air pollution and climate change to the people of the world are real. The last three years have each been the hottest years on record. The health of hundreds of millions in India and around the world is being severely harmed by air
India’s Top Refiner Said to Review $8 Billion Spend on Tax Shock
Indian Oil Corp., the nation’s top refiner, is reconsidering plans to invest $8 billion in the country’s east after a provincial government threatened to withdraw promised tax breaks, people with knowledge of the matter said. The government of Odisha state said in a letter to the company that it was no longer keen to provide a deferral of value added tax on the sale of petroleum products, the people said, asking not to be identified because the information isn’t public. The benefit was initially extended as an incentive to build the Paradip refinery in the state and ending it would hit profitability and impact future investments, they added. The 11-year tax deferral was for products from the refinery sold in the state. Indian Oil has plans to invest 520 billion rupees ($7.8 billion) in Paradip to expand the refinery, upgrade it to produce a superior quality of fuels and add downstream petrochemical units along with pipelines and storage facilities. The offer of the tax break on sales of petroleum products prompted Indian Oil to spend 346 billion rupees to build a 15 million metric tons a year refinery in Odisha. Work on the Paradip refinery began in 2004 and the plant is operating at 80 percent of capacity in the current financial year. Indian Oil is also an investor in the proposed 60 billion rupee liquefied natural gas importing terminal at Dhamra in the state. Indian Oil is in talks with the state government and is hopeful, a company spokeswoman said. The Odisha chief minister’s public relations officer Sukanta Kumar Panda did not respond to phone calls and an e-mail seeking comment. The refiner has chalked out plans to spend 1.84 trillion rupees through 2022 to expand its refining, pipelines and distribution infrastructure. The state-run refiner will add annual capacity of 24 million tons to its existing refineries over the next six years, Chairman B. Ashok said last year. Caleb Sturgis Authentic Jersey
Major Petroleum Theft Detected on Mathura-Jalandhar Pipeline
Jalandhar Pipeline where oil mafia had virtually installed a parallel filling station by constructing a big tunnel for operation. The breach on the pipeline was detected after about three months in R K Puram colony under Highway police station. “Though the theft was suspected in the month of November, 2016, as drop in pressure of fuel in the pipeline was observed by ‘leak detection system’ however it could not be found in spite of repeated surface monitoring as theft was not massive,” said Virendra Kumar, pipeline manager, Telecom and Instrumentation. It came to surface when more drop in pressure was detected recently,” he said adding that theft this time has been committed in a planned way where all the three systems – survey, activation and operation appear to have been adopted,” he said. SP City Ashok Kumar when contacted said the act is daring, planned and a challenge for police however, police is committed to nab the real culprits. He disclosed that prima facie hunt is on for two persons whose names have come up. According to the FIR filed on Saturday, the tunnel (15 feet deep and about 100 meters long) on the outskirts of R K Puram colony was found when concentrated surface monitoring was conducted following a report of massive leakage through leak detection system. A tanker was being filled from the pipeline when police and refinery officials reached the spot but not before the oil mafia gang managed to escape. A valve for taking out the fuel was attached to the pipeline and the tunnel was fully electrified with provision for fresh air through pipes, the police report stated. Police disclosed that JCB machine was used for unearthing the tunnel and the entire system. “The culprits this time would not go scot-free,” Police Circle Officer Anupam Singh said when asked about the case since so far over half dozen incidents of fuel theft on the pipeline have taken place but none have been solved. Kyle Korver Jersey
Natural gas price in India likely to be hiked by 8 per cent by April
Natural gas price in India is likely to be hiked by 8 per cent from April 1 driven by an increase in rates in reference markets including US Henry Hub. Price of natural gas, used for generating power and making fertiliser and petrochemicals as well as CNG for automobiles, is likely to rise to USD 2.7 per million British thermal unit for the period from April 1, 2017 to Sept. to September 30, 2017 from current USD 2.5 per mmBtu, industry sources said. This will be the first increase in domestic gas prices in two years. Rates may further rise to USD 3.1 per mmBtu in second half of 2017-18 fiscal (April to March). As per the mechanism approved in October 2014, the price of domestically produced natural gas is to be revised every six months — April 1 and October 1 — using weighted average or rates prevalent in gas-surplus economies at Henry Hub of US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter. So, the rates for April 1, 2017 to September 30, 2017 period will be based on average price at the international hubs during January 1, 2016 to December 31, 2016. Sources said prices in the reference markets for 2016 are known and so the rates in first half of fiscal year beginning April 1 can be calculated. Rates were last changed on October 1, 2016 when they were cut by 18 per cent to USD 2.5 per mmBtu from USD 3.06. This was the fourth six-monthly reduction. John Tavares Authentic Jersey
GSPL Pipeline project for supplying Natural Gas to automobile manufacturers at Becharaji Gujarat completed by Ace Pipeline
In a step towards creating a world class automobile and ancillary manufacturing hub in Mandal -Becharaji taluka of Ahmedabad District, a pipeline to supply natural gas has been commissioned by Ace Pipeline. The 12” diameter carbon steel high pressure pipeline is designed and constructed in accordance with international best practices using high strength pipe material, anti-corrosion system, the use of trenchless horizontal directional drilling technology for pipeline installation across roads and canals such as the Narmada Main Canal without causing any disruption to traffic or flow; and is equipped with valves stations for emergency shutdown of the pipeline in case of any contingency, Supervisory Control and Data Acquisition (SCADA) system to monitor the pipeline round the clock. The entire pipeline has been subject to high-pressure tests by hydro testing and pneumatic testing to assure the quality of material and workmanship. Ace Pipeline Contracts Pvt. Ltd., known for engineering and construction of cross-country pipelines for oil and gas industry, recently completed works and commissioned the 12” x 51 km Mandali-Bechraji pipeline project which was being constructed by it for GSPL (Gujarat State Petronet Ltd). The project shall supply natural gas to the new MSIL (Maruti Suzuki India Ltd) car manufacturing plant at Hansalpur, Bechraji taluka for which Suzuki Motors has invested with an aim to produce around 1 Million cars annual meant for domestic market as well as exports. Another branch of this pipeline has commenced supply of natural gas to Japanese two-wheeler giant HMSI (Honda Motorcycle and Scooter India) at its fourth plant in India at Vithalapur, 14 km from Ahmedabad city for manufacturing of scooters at the 1.2 million two-wheelers per annum capacity plant. The landmark project of the company and for Becharaji Gujarat as it will supply natural gas to the automobile manufacturers, and shall help in establish this region as a hub for the automobile industry. What makes this project truly remarkable is the speed of execution in these times where most projects are delayed due to land acquisition issues. The entire work of the pipeline project including engineering, procurement of all items, construction, testing, commissioning was completed in a span of 10 months. A bid boost to the auto industry and auto ancillary business in Gujarat. The timely completion of projects such as these shall cement the status of Bechraji, once a backward area, to a world class auto-hub.
GAIL awards contract for 105-km LNG project
Gail (India) Limited awarded the contract for laying 105-km pipeline in the Perole-Kodalamuguru- Mangaluru section to Infrastructure Leasing & Financial Services on Tuesday. With this, the project will progress simultaneously from both ends –Kochi and Mangaluru – and the completion of the project will be much faster. The Petroleum and Natural Gas Regulatory Board had on December 2016 given GAIL time till February 2019 to complete the 1,104-km Kochi-Koottanad-Bengaluru-Mangaluru section. The Rs. 44.93 billion project was originally scheduled to be completed in March 2013. “GAIL is targeting to complete the 440-km Kochi–Koottanad—Mangaluru Pipeline by December 2018. The work on the 91-km Kochi–Koottanad section, which was awarded in September 2016, has been received positively by all stakeholders. The pipeline would serve as a ‘green energy corridor’ and enable city gas distribution companies and gas-based industries to come up in the state. As a result, environment-friendly piped natural gas and compressed natural gas (CNG) would be supplied to households and vehicles,” said B C Tripathi, chairman and managing director of GAIL, who met Kerala chief minister Pinarayi Vijayan on Tuesday to apprise him about the progress of the work on the pipeline project. The primary objective of the project is to supply LNG from Petronet LNG’s plant at Puthuvype near Kochi to industries in south India. GAIL is to lay the pipeline in two phases – a 44-km Phase-1 connecting Cochin port to FACT plant in the city and a 1,060-km Phase-II taking the line from there to Thrissur-Koottanand and Palakkad in Kerala and onward to Coimbatore and Salem in Tamil Nadu before reaching Bengaluru. Ryan Jensen Jersey
Lufthansa bets on India growth; to boost ties with Jet Airways
Bullish on Indian market, European airliner group Lufthansa plans to enhance bilateral ties with Jet Airways for increased connectivity to new cities and launch flight from Brussels to Mumbai next month. Lufthansa Group, which operates 60 flights to and from India per week, has recently introduced the fuel-efficient A350-900 aircraft on Munich-Delhi route. “We are also looking to intensify the bilateral relationship between Jet Airways and Lufthansa,” Chairman of the Executive Board and CEO of Deutsche Lufthansa AG Carsten Spohr today said. Already, Lufthansa and Jet Airways operate code share flights on certain routes and this collaboration is likely to be expanded further. Code share allows an airline to book its passengers for destination where it does not fly through a partner carrier. Recently, the European major had expanded its partnership with Gulf carrier Etihad Airways — which is a strategic partner of Jet Airways. All the three carriers have significant presence in the European market. “We have some code share going with Jet Airways. We would like to intensify and may be enlarge our portfolio of code share… That means flights to second tier cities which we are not operating directly could be destinations where we cooperate in terms of code share,” Senior Director (South Asia) at Lufthansa Group Wolfgang Will said at a press meet. He also noted code share has been a healthy component in their services. Soon, Lufthansa would be introducing the A350-900 plane on Munich-Mumbai route apart from increasing the frequencies of its services between Pune and Frankfurt. “The services between Brussels and Mumbai would start by end of March,” he noted. Besides, the group would be naming one of its big aircraft flying to India as ‘Delhi’. “This shows the importance of Delhi as a hub and India as a market to us,” Spohr said. Meanwhile, the Airbus 350-900 plane has been configured to seat 293 passengers, including 224 in Economy Class. This aircraft consumes 25 per cent less fuel, emits 25 per cent less carbon dioxide and generates 50 per cent less noise. In the Asia-Pacific, Lufthansa Group flies to 18 destinations in eight countries, operating 249 weekly flights from this region to Europe. Davante Adams Jersey
HAL to invest about Rs 17,500 cr over 5 to 6 years
Hindustan Aeronautics Ltd today said its overall investment over the next five to six years is expected to be about Rs 17,500 crore, and it may go for loans from banks soon to fund its projects. The company also said it has contributed over Rs 5000 crore to the government exchequer through the buyback option. “…we will be happy if we get more funds, but we will present the case. Not waiting for two or three years till CCS sanctions to meet the current expectations and requirements, we are funding from our own reserves,” HAL Chairman and Managing Director T Suvarna Raju told reporters. Responding to a question at the Aero India 2017 air show here, he said “you may watch during the month of March, maybe we are going to take loan from the banks for our projects.” “Overall expected investment as of now, approximately is Rs 17,500 crore, spread over five to six years,” he added. On disinvestment activity of the company based on the government approval of 10 per cent of the shareholding in 2013, Raju said progress has been made in this regard with the identification of Book Running Lead Managers and preparation of draft red herring prospectus. Necessary documents are in place. “…10 per cent of the equity capital that is 3.615 crore of equity at the face value of Rs 10 would be considered for the IPO, the valuation will be done by the BRLMS and the other financial experts. We are awaiting for the valuations from them,” a senior company official added. Responding to a question about when the company will be filing red herring prospectus with SEBI, Raju said by the end of this financial year. Raju also said the option of buyback of 25 per cent of share capital and reserves of the company has been executed through which the company has contributed over Rs 5000 crore to the government exchequer. “During 2015-16 twelve crore five lakh shares have been offered for buyback amounting to Rs 4,284 crore apart from Rs 981 crore as buyback plan, in all amounting to Rs 5,265 crore. This is what we have paid back to the government by offering 25 per cent of the equity capital,” a company official said. Speaking about the financial performance of the company for 2015-16, Raju said it recorded the highest ever turnover of Rs 16,736 crore and registered a growth of 7.14 per cent compared with the previous year. He said the profit before tax of the company for the year was Rs 3288 crore, adding, against the target turnover of Rs 17,100 crore at the end of January 2017, the company has achieved sales of Rs 10,086 crore with a healthy profit of Rs 1,621 crore. T. J. Watt Womens Jersey
New projects coming on line to boost transmission utility Power Grid
Commissioning of a few big ticket projects this quarter is likely to improve the earnings visibility of India’s largest power transmission firm Power Grid Corporation (PGC). An increase in the capitalisation -with assets which were under expansion beginning to contribute to profits -boils down to higher profit through assured returns (that is linked to equity contribution towards total assets). PGC is entitled to 15.5% return on equity deployed in all nominated commissioned projects. This is called regulated equity. Higher regulated equity translates into higher earnings for the next year. In its recent analyst meet, senior officials said that PGC was targeting capitalisation of Rs 1.46 lakh crore (including Rs 28,000 crore in FY17) over the next four years. Similarly, its capital expenditure is expected to be Rs 1 lakh crore in the next four years. Due to a high capitalisation schedule, the company has high certainty of over 16% annualised earnings growth between FY16 and FY20. Due to a high capitalisation, net profit grew 20% to Rs 1,930 crore in the December quarter as revenues from ransmission business rose 21.6%. The company has given a guidance of Rs 22,500 crore and Rs 28,000 crore of capex and capitalisation, respectively, till March. In the first nine months of FY17, it has capitalised assets worth Rs 16,000 crore. This means nearly Rs 12,000 crore of assets will be capitalised in Q4. The company may meet its guidance as phase 1 of the Rs 6,500-crore ChampaKurukshetra High Voltage Direct Line is likely to commission in February 2017 and phase 2 of North East-Agra Line will start operations in Q4 of FY17. Since April 2016, PGC has commissioned projects worth Rs 20,700 crore and incurred capex of Rs 17,900 crore -maintaining capitalisation to capex ratio of more than one. Logan Thomas Authentic Jersey