Asia set for biggest refining capacity jump in three years
Asia will post its biggest net refining capacity addition in three years in 2017, further boosting demand for crude in the world’s biggest and fastest growing oil consuming region. New and expanded refineries from China to India will offset closures in Japan, adding a net 450,000 barrels per day (bpd) of crude processing capacity in 2017, the highest since 2014, energy consultancy Wood Mackenzie says. The increase amounts to about an additional 1.5 percent of refining capacity on top of Asia’s total installed capacity of nearly 29 million bpd, Thomson Reuters Eikon data shows. “Heavy crude demand in particular is expected to rise in 2017 as more Asian facilities undergo upgrading and new … refineries come online,” said Sushant Gupta, WoodMac’s Asia research director for refining. The rise in capacity will tighten Asia’s crude market as it coincides with planned output cuts by oil producers like the Organization of Petroleum Exporting Countries (OPEC) and Russia in a bid to end oversupply and prop up prices. China National Offshore Oil Corp (CNOOC) plans to start a new 200,000-bpd refinery in southern China, while PetroChina aims to start a 260,000-bpd refinery in Yunnan, pending talks with the Myanmar government. Chinese independent refiners are also expected to import an extra 200,000-400,000 bpd of crude, research consultancy Energy Aspects estimates, and an upgrade by Taiwan’s CPC at its Talin refinery will raise crude and condensate demand by 100,000 bpd. Vietnam is due to complete a new 200,000-bpd refinery, while India’s Bharat Petroleum Corp Ltd is trialling an expansion in Kochi that will include a new 210,000-bpd crude oil distillation unit. These additions will more than offset a 400,000 bpd decline in refining capacity in Japan by early April due to shrinking local demand, according to Wood Mackenzie. To meet Asian demand, Iraq has already inked new Basra Heavy deals, while Iran expects to complete a pipeline and terminal to export heavy crude West Kharoon next year. Kuwait said it is preparing to restart production from oilfields jointly operated with Saudi Arabia. “We expect a slow ramp up of production from mid-2017. Both Saudi Arabia and Kuwait will have to manage this growth within their agreed OPEC production cuts,” WoodMac’s Gupta said. Still, traders see no outright supply shortage for Asian refineries, as OPEC is shielding most of its Asian customers from the planned cuts. Alternative crude supplies are also available, including heavy crude from Latin America and Angola, as well as shale supplies from the United States.
ExxonMobil, ENI, Total to negotiate Cyprus gas exploration
US giant ExxonMobil with Qatar Petroleum, Italy’s ENI and France’s Total have been selected to negotiate a licence to explore offshore Cyprus oil and gas, officials said Wednesday. In July, eight energy giants bid for drilling rights at three blocks off the Mediterranean island’s southern coast. ENI and Total were jointly selected as preferred bidders for block 6 and ENI was picked for block 8, while ExxonMobil and Qatar Petroleum were chosen for block 10. Licenses would let firms prospect in waters near Egypt’s Zohr field, where ENI in August 2015 discovered the “largest ever” offshore natural gas field in the Mediterranean. The Zohr field is estimated to hold some 850 billion cubic metres (30 trillion cubic feet) of gas. The cabinet has the final say on granting the new licenses for the three blocks. If “negotiations are successful, and provided that the agreed contract per individual block is approved by the council of ministers, hydrocarbon exploration licenses shall be granted,” the cabinet said in a statement. Cyprus Energy Minister George Lakkotrypis said he hoped negotiations would be finalised by February. US firm Noble Energy made the first find off the southeastern coast of Cyprus in 2011 in the Aphrodite field, which is estimated to contain around 127.4 billion cubic metres (4.54 trillion cubic feet) of gas. Italian-South Korean venture ENI-Kogas has so far failed to discover any exploitable gas reserves in deep-sea drilling off Cyprus. ENI already has the right to exploit three blocks in a zone that borders Egypt’s gas fields. ENI has said exploratory drilling off the island’s southern shore will begin next year. Total is also expected to do the same in 2017. Cyprus planned to build a liquefied natural gas plant that would allow exports by ship to Asia and Europe, but the reserves confirmed so far are insufficient to make that feasible. The Mediterranean island hopes to begin exporting gas, and maybe oil, by 2022. Alcides Escobar Womens Jersey
Cross boarder oil pipeline to be put under NPP
In a bid to facilitate the construction of Raxaul-Amlekhgunj Pipeline Project, the Ministry of Supply (MoS) is gearing up to table a proposal to the Cabinet to put the cross-border project under National Pride Project (NPP). According to Supply Secretary Prem Kumar Rai, there is a need to declare the cross-border pipeline project as a National Pride Project as construction of the oil pipeline project needs to clear almost 25,000 trees within Parsa Wildlife Reserve. However, the National Parks and Wildlife Conservation Act does not allow using land within the conserved area and cutting down trees like this. Under the Raxaul-Amlekhgunj Pipeline Project, the government also plans to develop a huge petroleum storage centre spread over 33.6 hectares of land that lies within Parsa Wildlife Reserve. MoS has also asked National Planning Commission (NPC) to give recognition to Raxaul-Amlekhgunj Pipeline as priority project. “Experts have said that the required land for the project within the conserved area can be acquired only if the government recognises Raxaul-Amlekhgunj Pipeline as National Pride Project,” said Rai, adding that MoS will soon table the proposal to the Cabinet to declare the pipeline project as National Priority Project if recognition of the project as ‘priority project’ by NPC alone is insufficient to facilitate its implementation. However, Environmental Impact Assessment (EIA) will have to be carried out before cutting down trees within the conserved area of the government. While NPC can give recognition of ‘priority’ to a project, projects are declared National Pride Project by the Cabinet. Talking to The Himalayan Times, NPC Vice Chairman Min Bahadur Shrestha said that NPC is optimistic to keep Nepal-India cross-border pipeline under priority project. “We will soon declare the pipeline project as priority project,” Shrestha said. Similarly, a few days ago, NOC Managing Director Gopal Bahadur Khadka had also emphasised on the need to recognise the pipeline project as National Pride Project to expedite the construction works. The construction of 41-kilometre Raxaul-Amlekhgunj Pipeline Project has gathered momentum in the last few months as the detailed engineering report (DER) of the project has been completed recently and pipe laying route for the project has been finalised. The completion of pipeline project is expected to ensure smooth supply of petroleum products in the domestic market and reduce petroleum transportation cost by almost 50 per cent. The Indo-Nepal oil project was signed in August last year. The entire project is expected to cost INR 2.75 billion and the Indian government will inject INR two billion for the project. MacKenzie Weegar Jersey
Agra-Lucknow Expressway to open for commuters on Dec 23
The new Agra-Lucknow Expressway is all set to open for commuters on December 23. The country’s longest expressway will offer a smooth ride to Agra and bring down travel time from 7 hours to 3.5 hours for commuters, an official said. Chief secretary Rahul Bhatnagar held a preparatory meeting with UP Expressways Industrial Development (UPEIDA) and police officials here on Monday to ensure that the necessary traffic management system, road safety and emergency services are in place along the 302-kilometre expressway for road users before the D-Day. The highway police have been asked to maintain a vigil and restrict road-users to a speed limit of 100 kilometres per hour. The six-lane expressway, which can be expanded up to eight-lanes, was inaugurated by chief minister Akhilesh Yadav on November 21. “Police officers have been told to provide one police van (Dial 100) and one ambulance (108 service) on every 30 kilometre stretch of the expressway and also set up requisite check posts,” said Bhatnagar. The expressway passes through four national highways and spans 10 districts connecting Agra-Lucknow via Shikohabad, Firozabad, Mainpuri, Etawah, Auraiya, Kannauj, Kanpur, Unnao and Hardoi. The UPEIDA has been asked to set up base stations in each district and also set up an integrated automatic highway traffic management system to coordinate with emergency services, patrol cars and police check posts to keep a watch on road users. The traffic system will reduce accidents and help commuters during fog when visibility is very low, according to officials. “They (UPEIDA and police) have also been asked to put up proper road signs, milestones and other road-safety precautions along the route,” said the chief secretary. Patrol cars will be equipped with speed radars and breath analysers. Mitch Morse Jersey
Despite Gadkari’s Tall Claims, Road Construction Is Way Behind Target
Union Road and Highways Minister Nitin Gadkari has lowered his target of building new roads in the country. Speaking to reporters in New Delhi, Gadkari conceded that his ministry will fall short of building 40 kilometres of new roads each day. A Long Way To Go But Gadkari maintained the National Highways Authority of India’s FY17 target of awarding new road projects to build 15,000 kilometres even though the road authority’s own data draws a very different picture. The NHAI has awarded contracts to build only 2,360 kilometres in the first seven months of this financial year, that’s 16 percent of the target. According to a senior official in NHAI’s planning and statistics department, a total of 2,597 kilometres have been awarded between April and November this year, indicating that another 237 kilometres were added in November, . The total cost of these projects stands at Rs 31,265 crore. The projects have been awarded under three categories- engineering, procurement, and construction (EPC); build, operate, and transfer (BOT); and hybrid annuity model (HAM). Nearly two thirds of the projects have been awarded in the HAM category, the data reveals. Road construction has also fallen short of the target by a very long stretch. The data sourced by BloombergQuint from the NHAI website shows that a mere 1,417 kilometres have been built so far this year, translating to an average of 6 kilometres per day versus the targeted 40 kilometres. That’s just 15 percent. Gadkari claimed it will go up substantially by the end of this year, though it’s not clear how such a big shortfall can be covered in just four months. The minister acknowledged the backlog by trimming the target a wee bit. Will definitely be able to build 30-35 kilometres of roads every day, if not more. Nitin Gadkari, Road and Highways Minister Challenges Analysts say land acquisition continues to be one of the biggest hurdles for new road projects. “NHAI’s performance is slower than expectation and its own target itself due to regulatory hurdles and delays in land acquisition,” said Teena Virmani, vice president of research at Kotak Securities. “It has to acquire 80 percent of the land before awarding the project. Due to delays in acquiring this much land, awarding activity is slower than NHAI’s own target,” she added. Ashish Agarwal, director at Equirus Capital Pvt. Ltd. concurred. “That is (land acquisition) one of the reasons why project awards that he (Nitin Gadkari) has targeted have not taken place,” said Agarwal. He believes that part of the problem lies in awarding the projects under the hybrid annuity model. “They have gone a little slow on HAM. Given that the financial closures at HAM have not yet happened at a rapid pace,” Agarwal said. With just four months till the financial year end analysts are not hopeful that the targets will be achieved. Agarwal said it would be challenging for the authority to even complete half of the target. “They are definitely not going to (meet the target). I mean it will be challenging for them to even achieve 6,000-7,000 kilometres (this fiscal),” he said. “There is a strong bid pipeline for next quarter but we still believe that achieving the target of 15,000 kilometres is difficult,” said Virmani. Alex Okafor Jersey
We will spend Rs 10,000 crore to decongest Gurgaon: Nitin Gadkari
India’s road transport and highways minister Nitin Gadkari has a grand plan to decongest Gurgaon with a series of projects worth close to Rs 10,000 crore, among them building bypasses and introducing an ambitious pod taxi plan, which would be the country’s first. To ensure there’s no repeat of the massive traffic jam and waterlogging that plagued Gurgaon in the last week of July, Gadkari says the National Highways Authority of India will work on a comprehensive drainage system. What’s your plan to decongest the Delhi-Gurgaon expressway and make travel between Delhi and Gurgaon easy? We have prepared a massive plan to decongest Gurgaon. If we put together all our projects in Gurgaon, we would be spending close to Rs 10,000 crore to decongest the Millennium City. We have an all-new national highway called Dwarka Expressway that is an alternative to the Delhi-Gurgaon expressway. The highways authority has started acquiring land in Delhi from private owners for the same. Land for the Gurgaon side of the expressway has already been acquired. Apart from the road, the NHAI will also build roadside amenities and border posts for which, too, the land is needed. There’s also a plan to build India’s first pod taxi system… It’s one of our most ambitious and innovative plans. It would completely transform the way we see urban transportation. Gurgaon will be the first city to have it and I think the city needs it the most. If the pilot run is successful, we’ll take permission from the Haryana government and would extend it within Gurgaon, connecting it with points like Cyber City. It would solve the lastmile connectivity problem. I’ll lay the foundation stone for the project soon. We have already invited bids for setting up the pod taxi project on a design, build, finance, operate and transfer basis. The metrino, as it’s called, would be small, battery-operated, driverless vehicles running on elevated tracks. It would have a passenger-carrying capacity of 4-6 persons with a maximum speed of 40 km per hour. The construction cost for it would be Rs 50 crore per km as compared to Rs 200 crore per km of metro. It will start from the Delhi-Gurgaon border on the expressway and extend till Badshahpur on Sohna Road via Rajiv Chowk. The construction cost of the project is Rs 835 crore in phase one. In phase two, it will go till Manesar and the total project cost would be Rs 4,000 crore. The monsoon rains caused heavy traffic jams on National Highway 8 and waterlogging in Gurgaon, which was no less than a flood situation. How would you ensure that there’s no repeat of such a situation, at least on the national highway? Gurgaon is one of the most prestigious cities of the country with so many companies having their base in the city and such vibrant population from across the country and world. It’s an expat city as well, with so many heads of Indian subsidiaries of foreign companies living there. In such a town, we cannot afford to have traffic jams and waterlogging as we have seen in recent past. It could dent our international image… To make permanent arrangements to prevent the repeat of such a situation, the NHAI along with the Haryana government will construct the Badshahpur drain along with several outfall drains. Once these outfall drains are constructed, the issue of waterlogging would never recur. I have already asked NHAI to make necessary arrangements so that there’s no work left on our part. What are the other innovative ways you’re looking at to improve the commuters’ experience between Delhi-Gurgaon? We are working with the state govt to live up to the expectations that investors would have in terms of infrastructure in the city. Loui Eriksson Womens Jersey
Airlines to pay fine if their planes empty human waste mid-air
The menace of human waste being splattered on houses from airplanes while landing, today led the National Green Tribunal to slap a fine of Rs 50,000 on the airline whose aircraft empties toilet tanks on air. The NGT directed aviation regulator DGCA to issue a circular to all airlines, whose planes are involved, to pay Rs 50,000 as environmental compensation. A bench headed by NGT Chairperson Swatanter Kumar passed a slew of directions while disposing of a plea of a retired army officer alleging dumping of human excreta by aircraft over residential areas near the IGI Airport here. Normally, the waste in the aircraft tanks are disposed of by ground handling personnel once the plane lands. However, there are cases where lavatory leaks occur in the air. The tribunal asked the Directorate General of Civil Aviation (DGCA) to issue circular to all ground handling services and airlines to ensure that they do not release waste from human waste tanks while landing or anywhere near the terminals of the IGI Airport. “DGCA shall also issue directions that aircraft on landing shall be subjected to surprise inspection to see that human waste tanks are not empty. If any aircraft is found to be violating such circular or (their) tanks are found empty on landing, they shall be subjected to environment compensation of Rs 50,000 per default,” the bench said. The direction came on the plea of Lt Gen (Retd) Satwant Singh Dahiya who has sought action against the airlines and levy of hefty fines on them for endangering the health of residents, terming their act as violation of the ‘Swachh Bharat Abhiyan’. While issuing directions, the green panel also said it was “surprised” to note the stand taken by the Central Pollution Control Board (CPCB) that on analysing the samples taken from the petitioner’s house, it could be ascertained that it was excreta but its source could not known. “We are surprised to note the stand of CPCB to the extent of coliform and the kind of splashes created on the houses of the petitioner as well as others clearly demostrate that it was human excreta,” the bench said. It added that the amount collected shall be deposited with CPCB for using it for environment protection and a quarterly report shall also be submitted by DGCA before it. Michael Johnson Authentic Jersey
Air India joining UDAN party to take longer on Dornier approval time
With the government preparing for the take off of UDAN, Air India might take longer to play an active part in the ambitious scheme as regulatory approval for the 19-seater Dornier aircraft is likely to happen only by July next year. The national carrier is expected to be a vital clog in the government’s efforts to make flying more affordable by connecting unserved and under-served airports as well as capping fares for one-hour flights at Rs 2,500 under UDAN (Ude Desh Ka Aam Naagrik). To be part of the scheme, Air India is mulling induction of around 10 to 12 Dornier aircraft by its wholly-owned subsidiary Alliance Air. Dornier planes, made by state-owned Hindustan Aeronautics Ltd (HAL), are yet to be utilised for general passenger services and hence would require relevant approval from aviation regulator DGCA. A senior Air India official said a committee has already submitted its report that examined feasibility of inducting Dornier planes into Alliance Air fleet. While a final decision on the report and further moves are expected soon, the official said around 10-12 such aircraft are likely to be inducted. “Once it gets type certified, we may look into it for regional connectivity (scheme)… The report has been submitted but the aircraft is yet to be type certified. By June or July, it would be type certified,” the official said. While the government expects to start the first flight under UDAN from next month, the longer time likely to be taken for type certification of Dornier planes would mean that Air India might take more time before operating higher number of flights under the scheme. Type certification is a process whereby the regulator certifies that a particular model of plane is air worthy. The 19-seater Dornier 228 aircraft are being made by HAL under licence from Swiss technology company RUAG for the armed forces and the European market. Last week, the government told the Lok Sabha that Alliance Air is examining the induction of Dornier aircraft. Alliance Air, which mostly connects Tier-II and -III cities to metro hubs, currently flies to 34 destinations and has 39 daily departures. Under UDAN, the government has listed three categories of aircraft – those having less than 20 seats, 21-80 seats, and 80 seats or more. Paul Carey Womens Jersey
Government convenes meeting with airlines to discuss GAGAN system
With the domestic airlines not showing any keenness to avail the over Rs 700-crore GPS-Aided Geo Augmented Navigation (GAGAN) system even after nearly 18 months of its official launch, the Government would now hold discussions with all stakeholders for its mandatory enabling. Aviation regulator, Directorate General of Civil Aviation (DGCA) has convened a consultation meeting with all stakeholders including airlines here tomorrow to discuss the issue. GAGAN system, which is said to make airline operations more efficient and cut down costs as it reduces separation between aircraft, increase air safety and fuel efficiency, was officially launched by Civil Aviation Minister Ashok Gajapathi Raju in July last year. The National Civil Aviation Policy, announced by the Government in June this year, makes it mandatory for all aircraft being registered in India from January 1, 2019 to be GAGAN enabled. However, most aircraft currently registered in India are not equipped to utilise this technology. “A stakeholder consultation has been planned on the subject on December 21 to plan implementation and address bottlenecks, if any (in the effective use of Gagan system),” a Public Notice issued by the DGCA last week said. Jointly developed by Indian Space Research Organisation (ISRO) and Airports Authority of India (AAI), at an investment of Rs 774 crore, the new system offers seamless navigation to the aviation industry. However, for availing the system, airlines are required to make their fleet the system compliant, which entails huge investments. Sources say that while smaller aircraft like ATRs and Bombardiers which are currently in the Indian carriers’ fleet are already equipped with such a system, bigger planes like Airbus A320, A330, Boeing 737, B777 and B 787s, among others, need to be retrofitted. Eight major domestic carriers — Air India, Air India Express, Jet Airways, JetLite, IndiGo, SpiceJet, GoAir, Vistara and AirAsia — together have 427 such planes currently in operations. “An airline will have to shell out as much as Rs 1-2 crore per aircraft to install such a system. Going by the total of number of these type of planes with the Indian airlines, it requires a minimum investment of over Rs 400 crore,” they said. The issue assumes significance as many airlines/ operators have ordered more aircraft which may not necessarily be equipped with the required airborne equipment, the DGCA notice said adding, equipped operators may also not have trained pilots/ obtained necessary approvals to utilise this technology. The benefits of GAGAN include improved efficiency, direct routes, increased fuel savings, approach with vertical guidance at runways, significant cost savings due to withdrawal of ground aids and reduced workload of flight crew and Air Traffic Controllers. At the time of launch, the Government had claimed that the implementation of GAGAN technology would immediately benefit 50 operational airports in the country. Currently, there are 75 airports which handle scheduled flight operations.
Revised charges for non-major airports effective from Dec 16
Revised charges for airport services as well as those related to air navigation at non-major aerodromes will now be applicable from December 16, the government said today. The government, on November 24, in a notification had said the revised rates would be applicable from December 1. Generally, airports serving less than 12 lakh passengers annually are considered as non-major. The charges for these aerodromes are fixed by Directorate General of Civil Aviation (DGCA) whereas for major airports the rates are determined by Airports Economic Regulatory Authority (AERA). The revised charges for airport services at non-major aerodromes and air navigation services at all airports were notified on November 24. It has now come into force from December 16 instead of the earlier date of December 1, 2016, an Aeronautical Information Circular (AIC) issued today said. Most of the non-major aerodromes are owned, managed and operated by government-run Airports Authority of India (AAI). It levies charges for services, including route and terminal navigational landing fee, as well as parking. Other services for which fee is levied are landing, housing, night parking, extension of watch hours apart from passenger service and user development fee. Shaquille O’Neal Jersey