GAIL pipeline breakdown in Vizag affects LPG cylinder deliveries
Jyoti Radhakishan has been living on food from restaurants for the last few days as she didn’t have an LPG cylinder replacement that was booked last month. While she is coping with the difficulty, scores of other households too are having to look for alternatives in the face of acute shortage. The shortage and delay, attributed to breakdown in Gas Authority of India Limited (GAIL) pipeline in Visakhapatnam is having a huge toll in Secunderabad. The city gets LPG supplies from the bottling units in Cherlapally via this pipeline. “The problem began on October 24. It will take another 10 days for the supply to improve,” said Ashok Kumar, president of city’s Gas Dealers Association. The string of Diwali holidays also affected the cylinder delivery schedule, he added. “Many who booked cylinders on November 1 are still waiting,” said V Ranga Rao, a resident of Secunderabad. According to oil companies, the city needs some 2,000 tons of LPG every day. “GAIL is carrying out repair-maintenance on pipelines. The LPG supply will stabilise soon,” said Madhukar Ingole, Hindustan Petroleum Corporation Limited (HPCL) representative in Telangana. Oil companies managed just about 1,000 tons of LPG during the supply-shortage period. HPCL, Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) have four bottling units. The twin cities of Hyderabad-Secunderabad have 13 lakh domestic and commercial connections while neighbouring Rangareddy district has 13 lakh connections. Jake Guentzel Authentic Jersey
Puma Energy Acquires BP Terminal in Northern Ireland
Puma Energy, the globally integrated midstream and downstream energy company, today announced that it has signed a purchase agreement with BP to buy its bulk storage fuel terminal in Belfast, Northern Ireland. The addition takes Puma Energy’s global network of bulk storage terminals to 100, culminating in a total storage volume of 7.9 million m3 of storage capacity. This acquisition builds on the purchase of the 1.4 million m3 capacity Milford Haven Terminal in 2015, further supporting Puma Energy’s growth within the European Market, and helping to ensure high quality, reliable fuels supply to Northern Ireland. The Belfast Terminal provides storage for gasoline, distillates and aviation fuels, with road gantry loading facilities and a Jetty Berth capable of handling MR class vessels. The site comprises 20 bulk fuel storage tanks with a working capacity of ca. 143 000 m3. The 53 acre former refinery site is located between George Best Belfast City Airport and Belfast Harbour in NI. The refinery was opened in 1964 and converted to a Terminal in 1982. Puma Energy has a wealth of experience in the construction, maintenance and operation of terminals and offshore mooring systems to the highest international standards. Commenting on the acquisition, Puma Energy’s CEO Pierre Eladari said, “This deal marks an additional milestone in the growth of our business, further supporting Puma Energy’s position as one of the largest independent, integrated midstream and downstream companies operating today”. About Puma Energy Puma Energy International is a global integrated midstream and downstream oil company active in 47 countries. Formed in 1997 in Central America, Puma Energy has since expanded its activities worldwide, achieving rapid growth, diversification and product line development. The company directly manages over 7,844 employees. Headquartered in Singapore, it has regional hubs in Johannesburg (South Africa), San Juan (Puerto Rico), Brisbane (Australia) and Tallinn (Estonia). Puma Energy’s core activities in the midstream sector include the supply, storage and transportation of petroleum products via a network of over 100 bulk storage terminals. Puma Energy’s activities are underpinned by investment in infrastructure which optimises supply chain systems, capturing value as both asset owner and marketer of product. Puma Energy’s downstream activities include the distribution, retail sales and wholesale of a wide range of refined products, with additional product offerings in the lubricants, bitumen, LPG and marine bunkering sectors. Puma Energy currently has a global network of over 2,468 retail service stations and supplies 62 airports. Puma Energy also provides a robust platform for independent entrepreneurs to develop their businesses, by providing a viable alternative to traditional market supply sources. Andy Lee Womens Jersey
Discovered small fields may be offered in first HELP round
India’s first bid round to implement its new Hydrocarbon Exploration Licensing Policy (HELP) may also offer some of the discovered small fields (DSF), if there are no takers for them. With the nine bid rounds under the New Exploration Licensing Policy unable to attract the desired level of investments, the National Democratic Alliance government approved marketing freedom for crude oil and natural gas under HELP in March this year. These discovered fields were earlier held by state-run Oil and Natural Gas Corp. Ltd (ONGC) and Oil India Ltd. DSF bidding was launched in New Delhi on 25 May 2016. Under this round, India is offering 46 contract areas with 67 oil and gas fields, estimated to hold over 625 million barrels of oil and oil equivalent gas in-place, spread over 1,500 sq. km. “If there are discovered small fields that remain unsold after the bids, they shall be added with the fields under HELP,” said a petroleum ministry official requesting anonymity. With bid submission deadline for discovered small fields extended, first round under HELP may be delayed. Another government official, who also did not want to be named, confirmed the development. The first bid round under HELP will mark the culmination of the government’s bet for a revenue-sharing model from the controversial cost-recovery model which involves cost recovery by firms before the government receives its share of the revenue. Also, state-run ONGC is betting on its relinquished blocks under HELP. Experts concur with the government’s strategy. “The discovered small fields have been the government’s primary concern after which it shall concentrate on HELP. With fields remaining unsold they have to find a way to utilise them,” said Sanjay Grover, partner at EY, a consultancy. Queries emailed to a petroleum ministry spokesperson on 8 October remained unanswered. This comes in the backdrop of India’s stagnant hydrocarbon production. The government has made energy security one of the primary areas of focus in its economic policy in order to achieve fast and sustainable long-term development. India has 26 sedimentary basins covering an area of 3.14 million sq. km, out of which seven basins have established commercial productions in progress. India has a total reserve of 763.476 million tonne of crude oil and 1,488.73 billion cu. metre of natural gas. DeSean Jackson Jersey
Oil Ministry probes role of ONGC, DGH officials in RIL gas flow case
The Oil Ministry has launched a probe into the role played by officials at ONGC and regulator DGH for their alleged inaction on information about the state- owned firm’s natural gas flowing into adjoining fields of Reliance Industries in the KG basin. Oil and Natural Gas Corp (ONGC) had in late 2013 claimed that it suspected extension of reservoirs from its blocks in the Bay of Bengal into RIL’s KG-D6. This was based on seismic data available to it at least since 2007. Confirming sending notice to RIL and its partners BP plc of UK and Canada’s Niko Resources for “unfairly enriching” by producing natural gas belonging to ONGC, Oil Minister Dharmendra Pradhan said his ministry is probing the role played by “”those in office” in the ministry, ONGC as well as DGH in the entire issue. “All stakeholders are being looked into as to what role they had played in those days,” he told reporters here. Oil Secretary K D Tripathi is overseeing the probe to find if there were any errors of omission or commission in not taking timely acting on the information provided by the seismic data that ONGC’s natural gas was seeping into KG-D6. “This is an internal mechanism (of investigation). Whosoever is found responsible (for lapses) will be disclosed publicly,” Pradhan said. ONGC has had two Chairmen, R S Sharma and Sudhir Vasudeva, after seismic data is believed to have thrown up leads about its blocks being connected with RIL fields. The Directorate General of Hydrocarbons (DGH) first had S K Srivastava and then R N Choubey as the head. It is alleged that while ONGC initially refused to act on the information, DGH did not take cognizance of the issue when the state-owned firm finally acted and brought the issue to its notice in 2013. “It is not just ONGC, but also (petroleum) ministry and DGH which is being investigated,” Pradhan said. His ministry had on November 3 issued a notice to RIL, Niko and BP plc seeking $1.47 billion for producing in the seven years ended March 31, 2016 about 338.332 million British thermal unit of gas that had seeped or migrated from state- owned ONGC blocks into adjoining KG-D6. After deducting $71.71 million royalty paid on the gas produced and adding an interest at the rate of Libor plus 2 per cent, totalling $149.86 million, a total demand of $1.55 billion was made on RIL, BP and Niko. ONGC had in 2014 moved the Delhi High Court seeking Rs 110 billion compensation for its gas that RIL had produced. Under the court’s direction, an independent consultant D&M was appointed to establish connectivity across reservoirs. After D&M quantified the gas that had migrated from ONGC blocks to KG-D6, the ministry appointed a one-man panel headed by Justice (Retd) A P Shah to recommend compensation RIL and partners should pay. It however stated that the compensation should be paid to the government and not to ONGC. Pradhan said the Supreme Court has clearly established that all natural resources belong to the State and using that premise the government is claiming compensation from RIL. Martavis Bryant Authentic Jersey
India’s fuel demand rose 8.1 % year-on-year in October
India’s fuel demand rose 8.1 percent in October compared with the same month last year. Consumption of fuel, a proxy for oil demand, totalled 16.49 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed. Sales of gasoline, or petrol, were 13.8 percent higher from a year earlier at 2.11 million tonnes. Cooking gas or liquefied petroleum gas (LPG) sales increased 10.3 percent to 1.86 million tonnes, while naphtha sales surged 4.8 percent to 1.11 million tonnes. Sales of bitumen, used for making roads, were 6.9 percent lower, while fuel oil use edged up 8.3 percent in October. Donovan Smith Authentic Jersey
World’s first Very Large Ethane Carrier delivered for Reliance Industries Limited
Mitsui O.S.K. Lines, Ltd. of Japan today announced the delivery of the world’s first Very Large Ethane Carrier (VLEC), Ethane Crystal, built by Samsung Heavy Industries (SHI), to energy and petrochemicals major Reliance Industries Limited (RIL) yesterday. MOL was appointed by Reliance to undertake site supervision of the construction of the six new VLECs ordered by the company and also to be the operator and the manager of these vessels. P.M.S. Prasad, Executive Director and Member of the Board, Reliance Industries Limited, named the vessel as “Ethane Crystal” in the naming ceremony held at SHI, Geoje, South Korea, on October 26, a press release from MOL said. RIL had placed the order for the six VLECs in July 2014. The VLECs will serve to transport Ethane from the United States of America to India, and are the largest vessels ever built for transportation of ethane at an industrial scale. MOL will be the first shipping company in the world to operate such VLECs. The vessels adopt GTT Mark III as a containment system which is unique for ethane transportation, and are designed to cater to latest safety and environment regulations, the release said. MOL will operate the fleet of six VLECs to provide efficient, safe and reliable Ethane transportation for use as a feedstock in large petrochemical complexes owned and operated by Reliance, it said. “Ethane transportation project is a splendid example where an innovative business model was used to meet the customer’s requirements. MOL utilized its experience, knowhow, and network built over the years as one of the largest LNG carrier owners and operators and, significant experience as owners and operators of LPG carriers in order to obtain this business. “MOL’s experience in LNG / LPG segments and its unmatched service, safety, reliability and efficiency precisely met the stringent requirements of Reliance prior being appointed as a suitable shipping partner for Ethane Transportation Project,” the release added. Nickell Robey-Coleman Authentic Jersey
Bankers fear post-S4A, their Hindustan Construction Company stake may fall under 26%
The consortium of 25 lenders to construction firm Hindustan Construction Company (HCC) might end up holding a stake smaller than 26% in the firm after implementing the scheme for sustainable structuring of stressed assets or S4A, a few bankers apprehend. Bankers will finalise the details of the R5,107-crore recast on Wednesday by which a portion of the unsustainable debt will be converted into equity. However,a statement by the company saying banks will hold 24.44% of the equity following the conversion is worrying some lenders. “A 26% stake would have given us the power to block a special resolution,” a banker observed. Of the company’s total debt of R5,107 crore, R2,426 crore has been found to be “unsustainable”. Some part of this will be converted into equity and rest into optionally convertible debentures with a maturity of10 years. The promoters’ stake will fall to 27.44% from 36.07% currently. HCC will be the first company to get its debt restructured under S4A scheme. A senior banker said the joint lenders’ forum (JLF) has to set a timeline for implementation of S4A and banks will have to issue margin guarantees to HCC against R3,200 crore where the arbitration awards were in favour of the company. “The guarantees will be proportional to the money loaned by each bank of the consortium,” he said, adding that it should not take more than a month to implement S4A. The banker added that a techno-economic viability study has found 52.5% of HCC debt to be sustainable. “The sustainable portion would have been higher if the company was able to get its receivables through arbitration. However, under the current guidelines, only current cash flows can be considered to calculate the sustainable debt,” he explained. HCC reported a net loss of Rs 318 crore on revenues of Rs 8,768 crore in FY16. In July, the company had informed stock exchanges the JLF meeting held on July 12, 2016, had decided to resolve the account under S4A. Subsequently, however, bankers clarified that while they had agreed to look into the proposal, no conclusive decision had been taken at the meeting. The S4A scheme has been viewed as an improvement over the strategic debt restructuring plan since it allows banks to retain the promoters whereas SDR envisaged bringing in a new set of promoters. The S4A scheme is more lenient to lenders since bankers may need to take an effective haircut of 50% if only half the debt is found to be sustainable. The scheme, however, does not permit changes in the terms of either the moratorium or the payments of principal or the interest. Banks are permitted to convert the ‘unsustainable’ part of the debt into equity or redeemable cumulative optionally convertible preference shares. To be eligible for the scheme, the projects should have commenced commercial operations and the total exposure (including accrued interest should be more than Rs 500 crore. Moreover, lenders need to have provided for at least 20% of the total loans. Aldrick Rosas Jersey
Toll tax suspended on national highways till Nov 11, banks open this weekend
The government on Wednesday suspended toll collection on national highways across the country till November 11 and asked banks to work this weekend as millions of people grappled to adjust to a life without the Rs 500 and Rs 1,000 banknote. “It has been decided to suspend Toll across all National Highways till midnight of 11th November to facilitate smooth traffic movement,” Union minister for road transport and highways and shipping Nitin Gadkari wrote on Facebook. “There will be logistic issues in returning change for Rs 500 and Rs 1,000 notes,” Gadkari said. The Reserve Bank of India said ATMs will start dispensing Rs 50 and Rs 100 notes from Thursday. Banks have also been asked not to charge any fee for ATM transactions till December 30. Prime Minister Narendra Modi’s late night announcement on Tuesday demonetised Rs 500 and 1000 currency notes , resulting in 86% of currency in circulation by value no longer being accepted as legal tender. However, some concessions are allowed for use of these notes at hospitals and crematoriums, and to buy air, rail and bus tickets till November 11. Toll plazas also continued to accept the devalued currency, according to an earlier announcement by the ministry. “The commuters are giving us Rs 500, but are not ready to accept it. This is the main reason for the chaos and arguments with people. We are facing a lot of difficulty,” said public relations officer Skylark toll company Kirpal Singh. “Eighty percent of the commuters have given us Rs 1000 and are not ready to accept Rs 500 in return,” Singh added. Most commuters tried to hand in the scrapped notes at toll plazas in a bid to get them changed into Rs 100 and Rs 50 denominations, but the concessionaires quickly ran out of paper money and traffic slowed to a crawl. Thousands of commuters and office goers were stranded in a massive traffic jam at the Gurgaon-Delhi Expressway on Wednesday. Wednesday’s decision to declare all roadways toll-free is to give the administration time to resolve logistical issues in replenishing plazas with lower-value currency notes. ATMs, which will remain closed on Wednesday and Thursday, will start dispensing new currency notes on November 11, relieving some of the cash crunch brought on by the surprise announcement. But panic-stricken people rushed to railway stations and petrol pumps to use up the Rs 500 and Rs 1,000 notes, spending more than Rs 1 lakh for train tickets. Railway minister Suresh Prabhu said people were lining up with Rs 1,000 notes to purchase platform tickets of Rs 10 each. Delhi Metro sparked anger earlier in the day, putting up notices saying it will not accept Rs 500 and Rs 1,000 notes but later reversed the decision. It said the notes of the two denominations will continue to be legal tender till Friday midnight. Deion Sanders Womens Jersey
New aircraft on Gaya-Delhi route from January 2017
Come January 2017 and the old and defect prone A320 air bus flying on Gaya-Delhi route would be taken off and a new series plane would fly on the said route. This will help to resolve the frequent grounding and emergency landing of the planes flying on this route. Till now Air India had been flying aircrafts procured a quarter century back with metal fatigue and other problems. The issue of defect prone aircraft came up at a high-level meet chaired by the Union civil aviation secretary Rajiv Nayan Choubey in Gaya on Tuesday. The participants included Gaya DM Kumar Ravi and airport director Dilip Kumar. Nolan Cromwell Authentic Jersey
Runway shuts due to stalled aircraft
The main runway at Kolkata airport had to be shut down for two-and-a-half hours on Monday after an aircraft developed a snag during take off and was stuck on the tarmac. All flight operations were shifted to the shorter, secondary runway during the crisis. According to airport officials, Singapore Airlines flight SQ517 operated with an Airbus 330 aircraft was taxing for take-off scheduled at 11.55pm when the plane developed a snag. As the aircraft rolled into the main runway, the pilot turned the nose to align the plane with the central runway line for the take-off run, the nose wheel mechanism jammed, stalling the aircraft on the runway. The night was a crucial time for air traffic management (ATM) team as many international flights were scheduled to land. Once the pilot radioed the air traffic control tower, operations were switched from the primary runway to the secondary strip. Rashaad Penny Authentic Jersey