India pushes Nigeria for more oil term contract volumes
Indian state-run oil refiners have called for Nigeria to increase its total term contract volumes next year by more than 20% as demand from the South Asian country climbs, an official from Nigeria’s state-owned Nigerian National Petroleum Corporation said. This request comes a few weeks before Nigeria’s crude oil term lifting contracts for 2017 are finalized, which will be decided by mid-December. India as the largest buyer of Nigerian crude, has always said it should have a longer-term arrangement with NNPC to ensure security of supply. “Three Indian companies mentioned that they are looking for a combined total of 11 million mt [in 2017] from 9 million mt [this year],” Anibor O. Kragha, group executive director at NNPC, told S&P Global Platts in an interview on the sidelines of the Petrotech conference in New Delhi late Monday. Now what they will get is a balance between term contracts and [spot] sales contracts,” he added. The Nigerian crude oil term contracts involve the export of around 1.17 million b/d of Nigerian crude, out of the 2.2 million b/d the country can theoretically produce. They are then sold by contract holders to end-users, refiners and other buyers. But with Nigerian oil output sharply down due to renewed militancy, the term volumes could be much lower for 2017 if output does not rebound. Nigerian oil output had recovered sharply after it fell to a 30-year low in early summer but renewed attacks on oil infrastructure in the Niger Delta have shut in production of popular export grade Forcados in the past month. Total oil and condensate production was around 1.9 million b/d, including 300,000 b/d of condensates, oil minister Emmanuel Kachikwu said last week. He said output could reach 2.2 million b/d if the militancy issues were resolved by early next year. NEGOTIATIONS ONGOING Kragha said that negotiations are ongoing and that he was not sure if the deal would materialize, but he added that once Nigerian output recovers, it will “increasingly look towards India” as the major buyer of its crude. “Indian demand is very positive for us. A vibrant Indian economy is good for us,” he said. The two countries have been working on a memorandum of understanding in the past month to enable the participation of Indian companies in Nigeria’s upstream and downstream oil and gas sectors. The deal being negotiated by Nigeria will also have the Indian government make an upfront payment for the purchase of Nigeria’s crude on a long-term basis as well as Indian public sector companies investing in Nigerian refineries. Indian state-owned refiners tend to buy most of their crude on term contracts while their remaining requirements are sought via tenders. “We just came out of a meeting with key Indian oil companies and they are pushing to get incremental allocations for the term contracts,” said Kragha. “We explained to them that there needs to be a balance.” INDIA’S RELIANCE ON NIGERIAN CRUDE India is a significant buyer of Nigerian crude, which is largely light and sweet, rich in gasoline and diesel and low in sulfur, and meets the needs of Indian refiners. State-owned refiners like Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd are major regular buyers of Nigerian crudes like Qua Iboe, Bonny Light, Escravos, EA Blend, Erha, Usan and Agbami. A source from an Indian refiner told Platts that Nigerian crude is a must for most of its refineries, especially the older ones, which have been designed to run light sweet crudes. “Despite all the militancy issues, we still buy Nigerian crude, as our refineries need it. We will continue to buy Nigerian crude, but we want them to supply us with more,” he said. India, which is currently among the world’s fastest growing economies, has seen its gasoline and gasoil demand climb sharply over the past few years. This has encouraged Indian refineries to buy more Nigerian crudes. In 2015-16, India imported nearly 23.7 million mt of Nigerian crude, nearly 12% of India’s overall oil imports, according to official Indian data. The South Asian country also imports some 2 million mt/year of LNG from Nigeria. Every month almost 20-25% of total Nigerian crude exports travel to India, particularly to IOC, which is the main recipient of Nigerian crude. Indian refiners like IOC, HPCL and BPCL are currently on crude oil term lifting contracts for 2016 with NNPC. Paul O’Neill Womens Jersey
Bangladesh to award LNG terminal project to Reliance, says ministry
Bangladesh is set to announce the selection of India’s Reliance Power Ltd. to build a 500,000 Mcf/d a floating storage and regasification unit and a 750 MW combined cycle power plant during Prime Minister Sheikh Hasina’s visit to India in mid-December, officials said Wednesday. The Ministry of Power, Energy and Mineral Resources and state-run Bangladesh Power Development Board expect a draft power purchase agreement, implementation agreement and land lease agreement to be signed during the visit, MPEMR Additional Secretary Md Mahbub Ul Alam told S&P Global Platts Wednesday. “We are now working to finalize the draft deals,” BPDB Chairman Khaled Mahmood said. The projects are expected to be awarded under the Speedy Supply of Power and Energy (Special Provisions) Act 2010, which does not require a tender process. The FSRU will be built at Maheshkhali Island and the LNG-based power plant at Meghnaghat; the power plant on a build, own and operate basis for around 22 years with a 15-year tax holiday. Bangladesh is expecting to start imports of LNG either by late 2017 or early 2018 to cope with the mounting domestic demand for natural gas. The country last year created an Energy Security Fund to finance the import of LNG and build terminals, Platts reported earlier. Excelerate Energy has started work on building Bangladesh’s first LNG terminal — a floating storage and regasification unit — at Moheshkhali island, Platts reported in May. Leighton Vander Esch Womens Jersey
Airbus Corporate Jet gets new order
Airbus Corporate Jets has won another commitment for an ACJ320neo, highlighting the continuing success of its new aircraft family. The latest deal adds to the seven orders already won by the ACJ320neo Family, taking total orders and commitments to eight, comprising six ACJ320neo and two ACJ319 neo aircraft. Capitalising on new-generation engines and Sharklets at the wingtips, plus other improvements, the ACJ320neo Family delivers a 16 per cent fuel saving and corresponding range increase. “The ACJ320neo Family further improves a proven and successful design, allowing customers to take more of their lifestyles to even more of the world,” said Airbus Chief Operating Officer, Customers John Leahy. The ACJ319neo can fly eight passengers for more than 15 hours, or 6,750 nm/12,500 km, while the ACJ320neo can carry 25 passengers for over 13 hours, or 6,000 nm/11,100 km. Airbus corporate jets have the widest and tallest cabins of any business jet, while being similar in size externally, giving passengers a better travel experience. They do this by allowing travellers to move freely around the cabin in flight – unlike traditional business jets – and are thus better for business and for socialising with family and friends. They also have the technologies that customers have come to expect in business jets today, such as fly-by-wire controls, time and cost-saving centralised maintenance, and extensive use of weight-saving materials such as carbonfibre. These and other features mean that Airbus corporate jets deliver more value to business jet customers, giving them more for their money as well as a better way to fly.ACJ320neo Airbus corporate jets are derived from the world’s most modern aircraft family, designed to fly thousands of hours a year in the demanding conditions of airline service, so they bring a heritage of reliability that is the envy of other business jets. More than 180 Airbus corporate jets are in service around the world, and they are flying on every continent, including Antarctica. Cedric Ogbuehi Womens Jersey
AirSewa to make grievance handling more transparent: Rajiv Nayan Choubey
Civil Aviation Ministry recently launched AirSewa, an app that fliers can use for putting forward their grievances against airlines and airports. Civil aviation secretary Rajiv Nayan Choubey spoke to Shahkar Abidi on the sidelines of an event held in New Delhi where he discussed about changes that are taking place in the industry as part of the new aviation policy. Small aircraft operators are concerned that the current cap on viability gap funding (VGF) under the Regional Connectivity Scheme (RCS) is not feasible for them. The ministry, in fact, studied the demand for more subsidies for smaller aircraft and found it indeed to be not feasible at current cap. So for relatively smaller aircraft, say, a 20-seater aircraft, the VGF will be substantially higher. It may be around 30% higher than those for ATRs, which may make their operations feasible. We are going to put it out soon. Marcus Martin Jersey
India expressed commitment to Producer Consumer dialogue on Gas related issues
Union minister of state for petroleum and natural gas Dharmendra Pradhan expressed commitment to the IEF Producer – Consumer dialogue and welcomed initiatives to ensure the Gas can make an optimal contribution to a healthy energy future through a rolling dialogue and also enhances Gas market transparency. Pradhan said this forum provided an opportunity on deepening the dialogue on the role of Gas to enable an orderly energy transition that strengthens energy security, stimulates economic growth and enhances healthy energy market functioning, prosperity and well being globally. He said that on one hand the future of Gas is bright but on the other hand established policies and business models require closer consideration in light of current energy market projections. The Gas Forum also issued a concluding statement which is as follows – 1- Upon the invitation of His Excellency Shri Dharmendra Pradhan, Minister of State of the Ministry of Petroleum and Natural Gas of the Republic of India, Ministers, industry leaders, heads of international organizations, and invited energy market stakeholders of the member countries of the International Energy Forum (IEF), and the International Gas Union (IGU) gathered at the 5th Meeting of the Bienniel IEF-IGU Ministerial Gas Forum, hosted by the Government of the Republic of India on 6 December 2016 in New Delhi, India. 2- Under the theme “Gas for Growth: Improving economic prosperity and living standards” ministers deepened their dialogue, while engaging with industry representatives as well as energy thought leaders on the role of gas to enable an orderly energy transition that strengthens energy security, stimulates economic growth and enhances healthy energy market functioning, prosperity and wellbeing globally. 3- Gathered in New Delhi India, one of the world’s largest new gas consuming markets, counting more than 1.2 billion prospective gas consumers in the world, and most rapid growing economy that is seeking to embrace the “Age of Gas”, ministers from both producing and consuming countries, exchanged views in three sessions on gas for growth and sustainability, regional gas markets; new prospects for trade and integration, and policy trends for investment across regions. 4- Sessions included key note presentations by His Excellency Shri Dharmendra Pradhan, Minister of State of the Ministry of Petroleum and Natural Gas of the Republic of India, His Excellency Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry, Qatar the Secretary General of the Gas Exporting Countries Forum, His Excellency Seyed Mohammad Hossein Adeli, the Chairman and Managing Director of Gail India, Shri B.C. Tripathi and Nizar Mohammad Al-Adsani, the Chief Executive Officer of the Kuwait Petroleum Corporation, among the many senior level interlocutors from government, industry and international organizations. 5- Mindful of the outcomes of the 15th Session of the IEF Ministerial Energy Forum held in Algiers on 26- 28 September 2016 that took place against the background of key governance initiatives, such as, the 2030 Agenda for Sustainable Development adopted at the United Nations Sustainable Development Summit on 25 September 2015, the landmark “Paris Agreement” concluded the 21st session of the Conference of Parties to the United Nations Framework Convention on Climate Change, as well as new energy governance initiatives in the framework of the G20 and other platforms, discussions focused on how gas resources and technologies can stimulate sustainable growth, diversify economies, improve air quality, keep global warming within agreed thresholds, and achieve energy access goals. 6- Ministers discussed global market developments that are characterized by more abundant gas supplies, weaker than expected demand growth, and the global spread of new technologies that enables more diverse gas trade between global gas and demand centers in which Asia and Liquefied Natural Gas (LNG) flows are rapidly increasing market share. They noted that this has made gas markets more competitive, and the terms of trade more short-term and flexible between a broader range of gas producers and consumers that stand to further benefit both. 7- Ministers acknowledged that increasing supplies on a more competitive global gas market creates new opportunities for gas importing countries to lock in supplies on more favorable terms. On the other hand enduring gas market supply abundance reduces investment incentives in the development of upstream gas resources. Growing gas trade volumes and opportunities may expose global gas markets to new risks and price fluctuations, as shifts in regional markets can propagate with greater ease across a better interconnected system. Delegates noted the importance of strengthening dialogue on a rolling basis, and that bilateral producer-consumer relations built up over the past decades remain critical for longer term gas market security. 8- Delegates recognized that a denser global midstream sector with more diverse pipeline and flexible LNG trade capacity should encourage governments to consider market reforms that reduce price, regulatory, infrastructure and other hurdles, and industry to consider more cost efficient operations and innovate on business models. For all stakeholders it would be important to seize the opportunity of more abundant gas supplies and trade in shaping healthier energy matrices that increase economic prosperity and living standards in both consuming and producing countries while delivering on globally agreed goals. 9- Noting that gas can be a driving force to help achieve an orderly energy transition, and is projected to make the largest contribution to societies across the world, when compared to other energy technologies in energy outlooks, delegates acknowledged that an enhanced producers-consumer dialogue on the evolution of gas markets is necessary for both governments and industry to seize on these opportunities arising on the medium term, and maintain longer term gas market security. 10- Ministers noted that on one hand the future of gas is bright considering 21st century demographics that require economic prosperity and living standards to increase across societies, but that on the other hand, established policies and business models require closer consideration in light of current energy market projections. To facilitate future gas demand growth trajectories, ministers and industry delegates affirmed their commitment to: • The IEF producer-consumer dialogue welcoming initiatives to conduct an energy technology neutral, inclusive and ongoing dialogue on the platform that the
Islamic Development Bank to offer $500 mn loan for US based TAPI project
The Islamic Development Bank (IsDB) had agreed to provide US$ 500 million loan to part-finance the proposed 1814 km Turkmenistan-Afghanistan- Pakistan-India (TAPI) natural gas pipeline project to transport gas from Turkmenistans Galkynysh fields to Fazilka in India. The TAPI gas pipeline project is estimated to cost US $15 billion. Interestingly, the TAPI gas pipeline project that is supported by the US as part of its Afghan rehabilitation policy and as an alternative to Russian infrastructure for evacuation of Central Asian gas is being funded by the Saudi Arabia based Islamic Development Bank. The $500 million funding agreement was signed with between the TAPI project consortium and the Islamic Development Bank last month, an official said on the sidelines of the Petrotech conference being held in the capital. The consortium of state-owned firms of the TAPI Pipeline Co are also in talks with Saudi Fund for Development and the Japanese government for partnership. The state-owned gas utility GAIL India, ISGS of Pakistan and Afghan Gas Enterprise (AGE) have 5 per cent stake each. Turkmenistans national oil company Turkmengaz is the leader of the consortium of national oil companies of the four nations. It has 85 per cent equity in TAPI Pipeline Co (TPCL). As per the official, IsDB has expressed interest in financing the project not just on Turkmenistans territory, but in Afghanistan and Pakistan. The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for 30 years, with 38 mmscmd going to India and Pakistan each. The remaining gas is to feed Afghanistan. The project, to which ADB was appointed the transaction advisor in November 2013, had been planned to become operational in 2018, but it is unlikely to see the light of day before 2022. The TAPI project has been on the drawing board for years as the four countries had not been able to get an international firm to head a consortium which will lay and operate the pipeline. French giant Total SA had initially shown interest in leading the consortium. However, it backed off after Turkmenistan refused to accept its condition of a stake in the gas field that will feed the pipeline. The four nations to the project in April this year had signed an investment agreement in Ashgabad. He said TPCL will appoint a project monitoring consultant (PMC) to conduct pre-FID activities, including mine clearance in Afghanistan, detailed route survey, front-end engineering design (FEED) and environment and social impact assessment. The technical study of the TAPI project, done by Penspen, has estimated that it will take over six years to complete from the start of the FEED process, he said. The Turkmenistan-Afghanistan-Pakistan (TAP) project was originally announced in May 2002. India joined the consortium in 2008. In 2014, the pipeline consortium, TPCL, was incorporated. TAPI will carry gas from Turkmenistans Galkynysh field, better known by its previous name South Yoiotan Osman that holds gas reserves of 16 trillion cubic feet. From the field, the pipeline will run to Herat and Kandahar province of Afghanistan, before entering Pakistan. In Pakistan, it will reach Multan via Quetta before ending at Fazilka (Punjab) in India. Michael Stone Jersey
India focussing on clean energy but West has to do its part: Piyush Goyal
India is the world’s most attractive destination in the energy sector that has the potential to attract a trillion dollars in investment over the next few years, Union power minister Piyush Goyal said on Saturday. The minister of state with independent charge for power, coal and renewable energy said that his optimism for the energy sector stemmed from the Narendra Modi government’s climate commitment. India has signed the Paris climate accord and is committed to significantly reducing its carbon footprint. And taking a lead on this mission is Goyal’s ministry of renewable energy. The government has set an ambitious target of setting up 175 GW of renewable energy by 2022. “Solar is a major focus. From 2500 MW in 2014, installed renewable energy is now 8500 MW. We have done three times in two years of what was done in the past many decades,” said the power minister on the second day of the Hindustan Times Leadership Summit. But Goyal’s ministry is working on adding equal weightage to other forms of green power such as wind and hydropower, by easing policies. The government is in the process of giving final touches to a hydropower policy that will address several issues that have plagued these projects, especially land acquisition. He was quick to clarify that India was not responsible for the worsening global warming concerns — even with 17% population it contributes to 2-2.5% of green house gases – but the government was committed to reduce its dependence on fossil fuels. “It is an article of faith with the Modi government that we expand renewable energy and reduce pollution as we generate power,” Goyal said. The minister said the developed world had emitted a bulk of the greenhouse gases and based on the “polluter pays” principle, the West had a responsibility to help India. “We hope the West will come up to their promises. So far their efforts have been terrible.” Of India’s total installed power capacity of over 300 GW, about 46 GW is renewable including solar, wind and small hydropower projects. While Piyush Goyal is working overtime to increase the percentage of renewable sources in India’s energy mix, the minister feels that his initiatives will not disincentivise coal-based power projects. “We need coal-based thermal power to provide stable base load in the grid to support renewable sources of power,” said Goyal. Simply put, to avoid instability in power transmission, coal-based power is required to flow through grids, as renewable energy supply depends on weather conditions. Colt McCoy Jersey
OPEC’s Decision to cut oil production will not deter India’splans to turn into a gas based economy : Pradhan
While as a consumer India will remain “watchful” of actions like the recent OPEC decision to cut production, the move by the oil cartel to reduce oil production will not deter the country’s plan to move towards its plan of becoming a gas based economy, oil minister Dharmendra Pradhan said on Tuesday. With LNG prices being linked to crude, the move by OPEC to cut production saw an increase in LNG to their highest level for 2016 in the Singapore market on December 2. This sparked fears that gas prices may face upward pressure as oil rises in the wake of the OPEC decision. “As a consumer, we have to be watchful as things are emerging,” he told reporters after a session with International Gas Union organised by state-run gas utility GAIL as part of Petrotech 2016. “We have to move to market mechanism. Currently we have some of it… segments such as CNG, PNG are linked to domestic gas and slightly lower than imported fuel. But as the consumer base expands in line with measures being taken by the government, a gas-based market will develop,” Pradhan said. However, Pradhan said the expanding market and consumer base in India, abundance of future availability from upcoming sources and long-term contracts will moderate (LNG) prices and ensure affordability. IGU president David Carroll supported Pradhan’s contention. “There is democratisation of gas trade… decoupling of oil and gas prices. Together with abundance of supplies from new facilities expected to come on stream, there will be downward pressure on gas prices,” he said. Pradhan said countries that have agreed to cut output by 1.8 million barrels a day account for only 40 per cent of the world production and the remaining 60 per cent outside any quota limits. “As a country which imports over 75 per cent of its oil needs, we have to be very watchful. We have to wait,” he said. Pradhan said he had raised with the visiting OPEC Secretary General Mohammad Sanusi Barkindo that the grouping should keep in mind the interests of the consuming nations and not monopolise the market. “He stated that they will bear in mind the concerns but right now they are only rebalancing the market,” he said. Brad Hand Womens Jersey
Gas based power generation is the key to achieve Govt’s goal of ‘24×7 Power for All’ : Piyush Goyal at Petrotech 2016
Union minister of state for power, renewable energy, coal and mines, Piyush Goyal is optimistic on the revival of stranded gas based power projects in India on the back of new partnerships formed with energy rich nations at Petrotech 2016. “We have to look at a World beyond Fossil Fuels”, said Shri Goyal while reiterating the vision of Prime Minister of India of ‘Achieving Energy Security for India based on Clean Fuels’. The Minister noted that the domestic demand for gas in the sector of power generation has not been fully met at present, though he expressed optimism that the new partnerships formed with the participating stakeholders at Petrotech-2016 would help us revive India’s stranded Gas based power plants in the near future. Goyal envisioned that gas based power generation is the key to achieve Government of India’s goal of ‘24×7 Power for All’. He was optimistic that the efficiency of gas based power plants would increase as gas prices come down in the near future. “Building partnerships with energy rich nations and exchanging new technologies and best practices with each other is the only way to provide affordable, accessible and sustainable power for all”, he said. Goyal chaired a Ministerial session on ‘Hydrocarbons to fuel the Future: Choices and Challenges’ on the second day of the Petrotech-2016 conference in the capital. Joining him on the dias in the ministerial session, moderated by BCG, were Mr. Bechir Madet, Minister of Petroleum and Energy, Chad, EzeKiel Lol Gatkuoth, Minister of Petroleum, South Sudan, Dr. Mohammed Zayed Awad, Minister of Petroleum and Gas, Sudan, Irene Muloni, Minister of Energy and Mineral Development, Uganda and Dr. Orlando Velandia, President of National Hydrocarbons Agency of Columbia. Congratulating the Ministry of Petroleum and Natural Gas, Government of India, Goyal said that it is heartening to see that the 12th International Oil and Gas Conference has had such a wide ranging participation, with delegations from various oil producing and exporting countries from around the world along with other stakeholders of the oil and gas sector. The Minister added that the Petrotech-2016 has set a benchmark as a meeting point for cutting-edge technologies in the sector, on one hand and as a platform for building new business relations and the exchange of expertise and best practices from around the world, on the other. Further, Goyal emphasized on the point that India, despite the dominance of fossil fuels in its energy mix in the near future due its development imperatives, stands committed to the Global efforts to fight Climate Change. He added that it is imperative to explore new technologies for developing greener fuels by increasing the use of renewable sources of energy and working towards achieving greater energy efficiency in power generation, transmission and distribution. During his address, the Minister noted that Government of India is preparing a holistic framework so as to cut our dependence on fossil fuel imports and to become self-reliant in the oil and natural gas sector. Further, the ensuing policy changes would be in consonance with India’s commitments at the Paris Climate Summit for reducing the carbon intensity of GDP growth, he added. Talking further on the initiatives on reducing India’s carbon footprint, the Minister said that India has taken a lead in the field of energy efficiency. He added that currently India has replaced one-third of total old energy inefficient incandescent bulbs and CFL lamps with LED lights which has resulted in a reduction in the carbon emissions of about 80 million tonnes a year and a saving of about 20GW of peak load. In his concluding remarks, Goyal said that the partnership between the Ministries of Power and Petroleum & Natural Gas has reaped rich dividends in achieving a secure energy future for the people of India. Such partnerships can be extended to include all the stakeholders of Petrotech-2016 so as to magnify the positive results in the times to come, he added. In the session, there were presentations from the participating Overseas Ministers on the overall energy scenario in their respective countries and the prospects of collaboration, investment opportunities and technology exchange avenues with all the stakeholders at the Petrotech-2016. Whitney Mercilus Womens Jersey
BAOA pitches for government support for business aviation
Lobby group Business Aircraft Operators Association (BAOA) on Monday called for multiple government interventions to ensure the sector’s rapid growth. The association unveiled its first industry report authored by Dubai-based consulting firm Martin Consulting in New Delhi. The report found that business aviation has grown by a meagre 2% over the last five years, and provided with the right kind of government support India could be looking at a best case growth scenario anywhere between 2% and 12%. The report rued that the new civil aviation policy clearly left out business aviation, despite projections of the sector’s direct contribution to the gross domestic product to the tune of Rs.1,762 crore by 2030. Byron Buxton Jersey