AG&P Signs MoU with Hindustan LNG to Build a Terminal in Andhra Pradesh
AG&P (Atlantic, Gulf and Pacific Company), the leading global integrator of LNG infrastructure solutions including LNG terminals and the supply chains that emanate from them, and Hindustan LNG (HLNG), a Hyderabad-based LNG import terminal development company, have signed a Memorandum of Understanding (MoU) to supply tolled gas to power stations in the East Godavari region of Andhra Pradesh, India. Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal that AG&P will also design and build at the port in Andhra Pradesh. The MoU was signed at the Partnership Summit 2017 organized by Confederation of Indian Industry (CII), and the signing was graced by Chief Minister N. Chandrababu Naidu. The MoU has launched a fully integrated solution for delivering tolled gas in India, including design, construction, financing, operations and maintenance of the new terminal, which will ensure a reliable and low-cost supply to power producers, fertilizer plants, cold storage and other industries in Andhra Pradesh and other markets along the east coast. Speaking at the signing ceremony in Andhra Pradesh on 28th January, 2017, Dr. C.R. Prasad, Chairman of HLNG said: “Andhra Pradesh is the ideal place for developing an LNG import facility to serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG. The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solution that enables the region to continue on its growth trajectory.” AG&P will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users. AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities. “It is a great privilege for AG&P to help implement India’s vision for clean, low-cost, flexible and reliable power. Andhra Pradesh is playing a critical role in manufacturing and trade. The state and its people are on a strong, upward trajectory. We see the provision of tolled gas to supply power and fuel to factories, homes and even transport in an environmentally clean way as crucial elements of Andhra Pradesh’s future. We are honoured to be a part of this exciting phase of the state’s development,” said Dr. Jose P. Leviste, Jr., Chairman of AG&P. Brett Favre Womens Jersey
Budget wish list: Oil & Gas sector hoping for reduction in cess rate, 100% depreciation allowance
he oil and gas sector is hoping for couple of announcements related to reduction in cess rate, 100 per cent depreciation allowance for projects undertaken for upgradation of fuel quality and exemption on 15 per cent service tax on LNG Sea transportation and regasification from the government in the upcoming Union Budget scheduled on February 1. Experts also believe that the industry is further expecting to get infrastructure status from the government. According to ICICIDirect.com, the change in Oil Industry Development (OID) cess duty would be positive for upstream oil companies as it would reduce costs by $5-6 per barrel at current crude oil prices. The elimination of import duty on LNG will also boost LNG demand and lower costs. It will prove to be positive for gas utility companies. At present, only the power sector is exempted from paying import duty on spot LNG. In the past one year, crude oil prices have surged nearly 64 per cent to $55.52 per barrel till January 27, from $33.89 per barrel on January 28, 2016. IndiaNivesh Securities says upstream companies like ONGC and Oil India are seeking a reduction in cess rate applied on crude producers. It was linked to crude prices in last budget at the rate of 20 per cent ad-valorem from earlier being linked to volume at Rs 4500 per mt. The recent rise in crude oil prices is impacting the profitability of these companies. The brokerage house further said that there is very low probability that the sector will get infrastructure status from the government in the upcoming Union Budget. However, if it happens, the move will be positive for upstream companies like ONGC and Reliance Industries. At present, 15 per cent tax is levied on sea transportation of LNG from a place outside India to the first customs station of landing in India. According to market experts, the industry has also demanded inclusion of LNG facility at port location in the definition of “industrial infrastructure” in section 80-1A of Income Tax Act. Federation of Indian Petroleum Industry seeks clarity on the definition of the term “Mineral Oil” by including both crude oil and natural gas under it for the purpose of section 80 IB (9) retrospectively irrespective of NELP rounds. The industry also flags concerns about the implementation of BS-VI emission norms by April, 2020 and the need to incentivise the shift for downstream companies. Hence, the industry body has suggested that 100 per cent depreciation allowance be provided for projects undertaken for up-gradation of fuel quality. Brokerage houses believe that the move will be positive for OMCs and upstream companies both. In the past one year, the BSE Oil & Gas outperformed benchmark equity indices and surged 45 per cent till January 27, whereas BSE Sensex gained 13.84 per cent during the same period. During the period, oil marketing companies such as HPCL, BPCL and IOC surged 101 per cent, 93.54 per cent and 62 per cent, respectively. On the other hand, other oil and gas majors such as Reliance Industries, ONGC and Oil India gained 2.58 per cent, 40.49 per cent and 30 per cent, respectively. Gail (India) gained 35 per cent in the past one year. Jonathan Marchessault Jersey
Oil PSUs to invest over Rs 1.4 trillion in Andhra Pradesh by FY22: Dharmendra Pradhan
Major oil public sector units are planning to invest over Rs 1.43 lakh crore in Andhra Pradesh in coming years which would create jobs for thousands of people in the state, Oil Minister Dharmendra Pradhan said today. He said that the investment will start from 2017-18 and all the investment will be completed by 2021-22. Andhra Pradesh has immense hydrocarbon potential and it is going to become a major petroleum and petrochemical hub in the coming years, he said here at the CII Partnership Summit. “Our oil PSUs are partnering with Andhra Pradesh to build new synergies in the hydrocarbon sector. The oil PSUs have invested more than Rs 9,400 crore in the last two and a half years and have plans investments of more than Rs 1.43 lakh crore in the state in the coming years,” he said. The minister also said about USD 20 billion is being invested in KG basin by both public and private sector companies. “In the current scenario, KG basin is the most active area in the world … such huge investment is happening in deep sea projects. The ONGC’s investment of Rs 78,000 crore will generate 3,000 direct jobs and thousands of indirect job in Andhra Pradesh. This will also attract world standard companies like Schlumberger in the state. “They all will operate from the state,” he added. He said that GAIL and HPCL are jointly developing a petrochemical plant in Kakinada. Further he said India’s first strategic oil reserve storage facility is in Visakhapatnam, which has a storage capacity of 1.33 million tonnes. Similarly, to ensure long term gas supply, GAIL and Andhra Pradesh government are setting up an LNG terminal of 3.5 million tons at Kakinada at an investment of Rs 2,500 crore. The minister informed that he has also invited UAE investment in the petrochemical project in Kakinada and “they are positively considering this proposal”. He added that the world’s largest oil producer is looking for investment in the sector in the state for a holistic integrated project. BP is already in Andhra Pradesh, he said. “With all this investment and infrastructure development, Rajamundry Kakinada Visakhapatnam region will emerge as (a major hub)….We are also working with Andhra Pradesh for LPG connections to all the houses…the world will come here in the oil and gas sector,” Pradhan said. Su’a Cravens Jersey
Indian Oil Corp’s Paradip refinery faces withdrawal of fiscal sops
In a setback to Indian Oil Corp (IOC), the Odisha government has slapped a notice seeking withdrawal of fiscal incentives given to the PSU’s Rs 34,555 crore Paradip refinery in the state. In the December 29 notice, Odisha government has asked why the fiscal incentives like 11-year deferment of sales tax on petroleum products sold in the state should not be withdrawn considering that the refinery was delayed by over six years. Sources said the state government had in February 2004 signed an agreement with IOC to give fiscal incentives for setting up a 9 million tonnes a year oil refinery at Paradip by 2009-10. However, the project was delayed and started only in early 2016. The delay is now being cited by Odisha to seek withdrawal of the incentives, they said, adding the state government feels the delay has pushed back the payback time of deferred taxes by few years. Also, the state government says that the refinery was originally planned for a 9 million tonnes per annum capacity but the actual size commissioned was 15 million tonnes. Withdrawal of VAT deferment would mean an annual payout of about Rs 2,000 crore on 2 million tonnes of petroleum products sold in the state. Sources said IOC has replied to the showcause notice saying the size of the refinery should not matter as VAT deferment is limited to 2 million tonnes of products sold in the state. On delay in commissioning of the refinery, it says the Odisha government made clear its intentions of withdrawing the incentives in 2010 or 2011 itself to enable the company to redraw its plans. More importantly, even if the refinery was commissioned in 2009-10, the VAT deferment would have been in operation till 2020-21 and there is no case for it ending in 2016-17. The company says the state government will not suffer any revenue loss as it will pay back the taxes after 11 years albeit without interest on it. IOC says its board had approved investments only in 2009 and the withdrawal of the VAT concession will reduce by 2 per cent the rate of return it considered for working out the investment. Sources said the state government was of the opinion that the refinery no longer needs incentives as its profitability had increased due to a higher capacity and low global oil prices. IOC says Paradip refinery is yet to achieve profitability on a standalone basis and that its investment in higher capacity and downstream petrochemical plants will only lead to higher economic activity and employment in the state. The higher capacity was needed for setting up two petrochem units at an additional cost of Rs 7,250 crore. Originally, the foundation stone of the Paradip refinery was laid by the then Prime Minister Atal Bihari Vajpayee on May 24, 2000. Mason Cole Womens Jersey
Biggest Indian solar project stalls as Jharkhand balks at cost
India’s biggest solar power project has stalled as the state which sought bids from generators says it can’t buy the energy at prices it had agreed upon. Winning developers in Jharkhand state are still waiting to sign power purchase agreements almost a year after the tender. In March, Jharkhand awarded contracts to build 1.2 gigawatts (GW) of solar. The state’s power retailer, Jharkhand Bijli Vitran Nigam Ltd, was supposed to sign the power purchase agreements in May 2016. “We have asked for financial assistance of a few hundred crore rupees from the state’s finance department and are awaiting their response,” said R.K. Srivastava, chief secretary of the energy department in the state of Jharkhand. The delay underscores the threat from financially strapped state power retailers to Prime Minister Narendra Modi’s ambitious renewable energy goals. State-owned power retailers in India had combined losses of Rs3.84 trillion as of March 2015, according to a report by KPMG. Jharkhand Bijli’s managing director, Rahul Kumar Purwar, couldn’t be reached for comment. ReNew Power Ventures Pvt. Ltd, which is majority owned by Goldman Sachs Group Inc. scooped up 522 MW in the March auction. ReNew’s other investors include the Abu Dhabi Investment Authority and the Global Environment Fund. Other winners included Suzlon Energy Ltd, OPG Power Ventures Plc, Acme Group, Adani Enterprises Ltd and SunEdison Inc. A Suzlon spokesperson was unavailable for comment. An email sent to the Adani Group wasn’t returned. OPG Power executives couldn’t be reached. In an email, ReNew Power executives declined to comment. Solar auction How much of the solar capacity awarded in March’s tender eventually gets built depends on whether the government provides the backing, Srivastava said. Tariffs awarded in the auction ranged from Rs5.08 to Rs7.90 per kilowatt-hour depending on the size of the project, all of which were supposed to become operational between May and November this year. “There is a huge difference between the average tariff of nearly Rs4.3 a unit, at which the discom buys power, and the rates quoted for solar energy in the auction last year,” Srivastava said in a phone interview, referring to the term used to identify electricity distribution companies in India. The poor financial health of the country’s power retailers has been identified as one of the biggest hurdles to Modi’s climate pledge to install 175 GW of renewable capacity by 2022. Those losses mean discoms can’t buy more electricity to satisfy expected demand whether clean or conventional, nor can they add more customers. That ultimately leaves latent power demand unmet. Several domestic and overseas clean energy companies have said they haven’t received payments for the electricity they generate for more than 10 months, racking up deficits of several hundred million dollars that may put the country’s green power ambitions at risk. Jharkhand’s state discom has liabilities of Rs6,400 crore, according to government data. As marquee investors find themselves at risk, the central government has asked for a quick resolution of the matter. The government faces embarrassment should the situation in Jharkhand not be resolved, according to a senior official at the ministry of new and renewable energy who requested anonymity because he isn’t authorized to speak to the media. The ministry has asked the state to resolve the matter, the official added. Jalen Mills Womens Jersey
Ikea buys Canada wind farm to offset carbon footprint
Ikea on Thursday announced plans to buy a wind farm with 55 turbines in the oil-rich Canadian province of Alberta to offset its local stores’ electricity use and reduce their carbon footprint. The Wintering Hills 88 megawatt wind farm, approximately 130 kilometers (miles) east of Calgary, can produce enough electricity for 54 big-box stores or 26,000 households. Ikea has a dozen stores in Canada, with plans for more. The investment in renewable energy “moves us closer to our global ambition to produce more renewable energy than we consume by 2020,” Ikea Canada sustainability manager Brendan Seale said in a statement. The company has allocated $3.2 billion for renewable energy globally, and has spent half of the amount since 2009. It is buying the five-year-old wind farm in the heart of Canada’s main oil producing region from the energy firm TransAlta and mining behemoth Teck Resources for nearly Can$120 million ($92 million). It will be the second Ikea investment in renewable energy in Alberta, following the purchase of a 46 megawatt wind farm in Pincher Creek in 2013. The pair of farms will produce more than four times the energy the company consumes in Canada. The deal is expected to close within three weeks. Isaac Yiadom Womens Jersey
National Review Meeting of RE Sector with the State Governments held
Ministry of New & Renewable Energy (MNRE) organized a two days National Review Meeting with the State Government officials of Renewable Energy sector from 23rd to 24th January 2017. Mobile App for Solar Rooftop Systems “ARUN- Atal Rooftop Solar User Navigator and Information Guide on Rooftop Systems was also launched on the occasion. Speaking at the concluding session of review meeting here today, Rajeev Kapoor Secretary, MNRE emphasized on the need to comply with Renewable Purchase Obligations (RPOs) and facilitate the renewable energy installations through conducive policies and timely payments for RE power purchased. He also urged upon the States to see the RE power in the backdrop of India’s commitment of raising 40% of electric installed capacity from non-fossil fuel by 2030 under INDC. It was observed that in general the compliance of RPOs needs to be ensured. The Secretary urged upon the States to formulate and modify their policies and prepare a conducive policy regime for RE. Shri Rajeev Kapoor gave away awards in Off-grid Solar PV Programme in 12 categories namely Solar Lantern, Solar Home Lighting Systems, Solar Power Packs, Solar Street Light, Solar Power Plant, Solar Pumps (Irrigation), Solar Mini/Micro Grid, Solar Pumps (Drinking), Bank Scheme – Solar Home Systems, Bank Scheme – Solar Pumps, Cold Storage and R.O. Systems. Secretary, MNRE also presented the Annual Day Awards of Association of Renewable Energy Agencies of States (AREAS) to various State Nodal Agencies for best performance in different sectors of renewable energy during 2015-16. The progress of each State was reviewed, next financial year plan were discussed and the issues raised by the States were deliberated upon in detail and efforts were made to find their solutions in this review meeting. Presentations were made by the senior officers of the Ministry on each Programme and the State-wise issues were flagged. State Power / Energy Secretaries in charge of Renewable Energy, Heads of State Nodal Agencies and other concerned senior officials of States attended the Review Meeting. Senior officers of MNRE, CERC, NTPC, IREDA, SECI, NISE, NIWE, NIBE, etc. also participated in the meeting. Le’Veon Bell Womens Jersey
Cabinet approves land swap between Bihar govt, AAI for Patna airport
The government today cleared swapping of land between Bihar government and Airports Authority of India for the expansion and development of Patna airport, which handles traffic more than three times of its existing capacity. Union Cabinet, which met here under Prime Minister Narendra Modi, approved transfer of 11.35 acres of (Bihar government) land to AAI by way of exchanging equivalent area of AAI’s land at Anisabad, an official release said today. The AAI plans to expand Patna airport as the existing terminal building was built for a capacity of 0.5 million passengers per annum, against which 1.5 million passengers per annum are already using the airport. The proposed land at Patna Airport will be used for expansion of the airport and construction of new terminal building along-with other associated infrastructures, the release said. The State government has also agreed in-principle for transfer of the land, it added. The proposed new terminal building would have a capacity to cater to three million passengers per annum.
Goa tourist traffic to increase three-fold with new airport: Nitin Gadkari
After the under-construction Mopa international airport in North Goa becomes operational, the state’s inbound tourist traffic will increase three-fold, Union Road Transport, Highways and Shipping Nitin Gadkari Minister said on Thursday. Addressing a poll rally in Shiroda constituency, 40 km from here, he said: “Today, 91 planes come to Goa every day, but after the Mopa airport comes into being, within a year and a half, Goa will get around 250 aeroplanes. HomeIndia news Goa tourist traffic to increase three-fold with new airport: Nitin Gadkari Goa tourist traffic to increase three-fold with new airport: Nitin Gadkari Goa, one of the most popular beach and nightlife tourism destinations in the country, currently attracts more than four lakh tourists. By: IANS | Panaji | Published: January 27, 2017 10:54 AM 222 SHARES FacebookTwitterGoogle+LinkedInEmail Goa, one of the most popular beach and nightlife tourism destinations in the country, currently attracts more than four lakh tourists. (Reuters) Goa, one of the most popular beach and nightlife tourism destinations in the country, currently attracts more than four lakh tourists. (Reuters) After the under-construction Mopa international airport in North Goa becomes operational, the state’s inbound tourist traffic will increase three-fold, Union Road Transport, Highways and Shipping Nitin Gadkari Minister said on Thursday. Addressing a poll rally in Shiroda constituency, 40 km from here, he said: “Today, 91 planes come to Goa every day, but after the Mopa airport comes into being, within a year and a half, Goa will get around 250 aeroplanes. “That means, if Goa gets three times the tourists, hotels will increase threefold and youth will get threefold jobs.” Goa, one of the most popular beach and nightlife tourism destinations in the country, currently attracts more than four lakh tourists. The minister also said that the upcoming four-lane highway from Mumbai to Goa, which is being built at a cost of Rs 14,000 crore, would help save a lot of lives, which are lost in accidents along the currently used Mumbai-Goa highway. “Mumbai Goa highway is a death trap, so many people have died. When I became minister I decided to build a cement-concrete road and work on the Rs 14,000 crore four lane road has started,” he said. Jason Witten Authentic Jersey
Those fancy airport stores may help lower airfares
The next time you confuse an airport with a mall, don’t fret and fume. Because higher “non-aeronautical“ earnings will help the airport operator levy lower charges on airlines. This will in turn mean lower fares for flyers. The passenger-friendly move comes as the Airports Economic Regulatory Authority (AERA) has decided to determine the future tariffs of major airports under the `hybrid till’ model. Under this, 30% of non-aeronautical revenue will be used to subsidise aviation charges. It will also provide a boost to investment in airport sector by ensuring funding to projects without burdening airlines -and in turn passengers -with skyhigh charges. However, the tariffs of Delhi and Mumbai airports will not be impacted by this and continue to be determined as per the agreements with the airport operators at these metros. “`Single till’ may not be appropriate at this juncture when there is high growth and capacity expansion is the need of the hour. The Authority’s methodology for tariff determination should be consistent with the government policy ,“ AERA order says. Several airport operators were in favour of the ‘single till’ model -where non-aeronautical earnings are not used to cross-subsidise aero charges, leading to higher charges for airlines. This, in turn, leads to higher fares and airport user charges. Amber Dubey, head of av iation at KPMG, said in a Facebook post that AERA’s move was in line with the civil aviation policy . “This is likely to boost investor sentiment in the Indian airport sector which has so far seen tepid response from leading global players, despite huge growth opportunities here. End of a six-year struggle. Good move (by) AERA,“ his post said. “The `single till’ mechanism does not provide adequate funds to airport operators for taking up various expansion and modernisation programmes. `Hybrid till’ is more suitable for fund capital additions. One of the major functions of the Authority is to ensure that the airport operator has adequate funds to make capital additions at the appropriate time. `Single till’ mechanism cannot provide adequate funds to the airport operators in a timely manner and it cannot be adopted uniformly at all times and at all airports,“ AERA order says. Dalvin Tomlinson Jersey