India’s oil regulator ropes in ICF for gas demand, infra assessment
Oil and gas regulator PNGRB has hired global consultancy ICF to carry out an assessment of India’s natural gas demand and the infrastructure needed to unleash the country’s massive pent-up requirement, its Chairman Dinesh K Sarraf said. Natural gas — which has far lower emissions compared to alternate liquid fuels such as petrol and diesel used in automobiles and naphtha and coal burned in factories — makes up for just 6.2 per cent of all forms of energy consumed in the country. This compares to a global average of 24 per cent. One reason for the low use of the environment-friendly fuel is inadequate domestic gas production and the lack of infrastructure, particularly pipelines to carry the fuel to end users.”We have engaged ICF to do a comprehensive assessment of demand and infrastructure needed,” Sarraf said, adding the report is expected by mid-2020. India is targeting 15 per cent share of natural gas in the energy basket by 2030. It consumed 166 million standard cubic metres per day of gas during the 2018-19 fiscal year, mostly in western and northern India as east and south were barely connected with the pipeline grid. The consumption does not reflect demand as some demand centres do not have access to gas. A Petroleum and Natural Gas Regulatory Board (PNGRB) demand assessment in 2012-13 had stated that gas demand will grow significantly at a compounded annual growth rate of 6.8 per cent from 242.6 mmscmd in 2012-13 to 746 mmscmd in 2029-30. ICF has been asked to study gas demand in different regions as well as the ideal locations for constructing liquefied natural gas (LNG) import terminals, he said, adding the consulting firm would also look at the pipeline network needed to connect the gas source to users. “We closely studied the Gujarat model where the share of natural gas in the energy basket is the highest in the country at 25-26 per cent. And one remarkable feature we found was that the state administration under its then chief minister Narendra Modi embarked on laying of a massive grid of gas pipeline that crisscrosses the state,” he said. This network aided increased usage of gas as well as made Gujarat home to the maximum number of LNG import terminals. “The report of ICF will help in a great deal of planning,” he said. “Once we have a comprehensive assessment of demand and the routes where the pipelines are to be laid, we can invite bids for the construction of such lines.” The study would also point out the ideal location of the LNG import terminals and user industry can plan projects accordingly. India currently has six LNG import terminals — Dahej, Hazira and Mundra in Gujarat, Dabhol in Maharashtra, Kochi in Kerala and Ennore in Tamil Nadu. While the LNG import capacity could more than double to 66 million tonnes by 2020-21, pipeline distribution infrastructure needs to expand to drive offtake. LNG makes up about half of India’s gas consumption. LNG terminals are planned through the east and west coastlines to drive gas import and consumption. The gas demand is largely led by industrial and city-gas distribution consumers. Sarraf said gas consumption will rise once the city gas distribution networks for sale of CNG to automobiles and piped cooking gas to households expands to 400 districts. And with limited domestic resources, imports are the only option. “It would serve the industry if we are aware of the most appropriate locations for setting up an LNG terminal and the pipelines that need to be built,” he said. Demand growth has faced impediments in the past due to weak domestic supply, poor pipeline infrastructure and a pricing policy that limits corporate investment. India’s demand is one-fifth of China’s.
Pipeline projects pose threat to tiger corridor, sanctuary in Andhra Pradesh
A tiger corridor and a mangrove sanctuary in Andhra Pradesh may soon come under threat if two proposed pipeline projects are approved by the Centre. The proposed Hindustan Petroleum Corporation Limited (HPCL) pipeline project will pass through 7 hectares of land that comes under the tiger corridor in Kadapa, while the Oil and Natural Gas Corporation (ONGC) has sought for diversion of 19 hectares of land for its pipeline that would pass through Coringa Wildlife Sanctuary in Kakinada . HPCL proposed to lay 16-inch diameter pipeline for transport of finished petroleum originating from Vijayawada HPCL terminal to the proposed terminal at Dharmapuri in Tamil Nadu. The Ministry of Environment and and Forests (MOEF) had earlier given nod to HPCL for diversion of 16.57 hectares of forest land in Chittoor, Kadapa and Proddutur division on condition that the state government verifies the status of the proposed area to check if it falls in the tiger corridor. The chief wildlife warden in February 2019, while okaying the proposal, had approved the project on condition that the pipeline is 1 metre below the soil surface and that the use of heavy machinery is minimal. Environmentalist Devidas Manghnani said, “ONGC must try to avoid the tiger corridor and choose an alternate route. More damage will be done during the laying of the pipeline. This corridor is crucial to connect Nallamalai and Seshachalam forests.” ONGC has proposed to lay a 20-inch 31km-long pipeline from the mouth of the Goutami river to ONGC onshore plant at Mallavaram village in Tallaravu mandal of East Godavari district, Andhra Pradesh.
ICF to weigh demand as govt pushes gas use, split GAIL
Global energy market consultant ICF is to assess India’s natural gas demand and the infrastructure needed to tap latent demand as the backdrop of the government pushing to expand the clean-burning fuel’s share in the country’s energy basket and divest GAIL of its pipeline network by splitting the state-run gas transportation utility. The Petroleum and Natural Gas Regulatory Board (PNGRB) has ICF to study gas demand in different regions and the ideal locations for constructing terminals for importing gas in ships. The consultant will also examine the pipeline network needed to connect users with gas sources. The share of natural gas in India’s energy basket stands at 6 per cent against a global average of 24 per cent. The government wants to raise it to 15 per cent over the next decade. Low domestic gas production and inadequate infrastructure, particularly pipelines to wheel fuels to consumers, are blamed for the low share of gas in the country’s energy basket. Somehow, GAIL is taking much of the blame for the lack of regional connectivity. Most of the gas pipeline network in the country owe their existence to the company’s efforts over the years. The rpivate sector has used the situation to consistently demand unbundling of GAIL’s piepline network by splitting the company. An assessment in 2012-13 had projected gas demand growing at a compounded annual rate of nearly 7 per cent from 242.6 (mcmd) million cubic meters per day in 2012-13 to 746 mcmd in 2029-30. India’s gas consumption stood at 166 mcmd in 2018-19. Most of the consumption was recorded in the western and northern regions as the east and south lacked the required pipelines. The consumption does not reflect demand as some demand centres do not have access to gas.
Oil companies reach out to entrepreneurs for sustainable fuel
With a vision to reduce the oil import dependency of India, oil marketing companies (OMCs) invited expressions of interest (EoIs) from various gas manufacturers and potential entrepreneurs at a roadshow in Vashi on Monday. The EoIs were invited under Sustainable Alternative Towards Affordable Transportation (SATAT), a scheme launched by the Ministry of Petroleum and Natural Gas on October 1, 2018, to promote the use of biofuels such as Compressed Bio Gas (CBG). SATAT aims at marketing of CBG from 5,000 plants by March 2023-24 and estimated production of 15 MMT per annum. EoIs were invited from entrepreneurs willing to set up CBG plants and offer them to the OMCs for marketing through their retail outlets. Oil and gas marketing companies Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, GAIL (India) Limited and Indraprastha Gas Limited invited the EoIs. Under this initiative, OMCs, GAIL and IGL are offering remunerative prices for procurement of CBG with a long-term commercial agreement for entrepreneurs, said Milind Patke, ED, BPCL (Biofuels). “We are assuring entrepreneurs that we will purchase CBG for the next 10 years. We are expecting that petrol pumps would be able to purchase CBG at ₹46 plus GST. The biggest advantage of CBG is that it benefits the environment and the waste is being utilized gainfully. While CNG has more than 85% methane content, CBG will have more than 90%,” Mr. Patke said. OMCs have been conducting the ‘Road Show’ across the country in various States. CBG, he explained, is purified and compressed biogas, which is produced through a process of anaerobic decomposition from various waste and biomass sources like agriculture residue, cattle dung, sugarcane press mud and the waste from distilleries, sewage water, municipal solid waste, besides biodegradable fractions of industrial waste. CBG has properties similar to CNG and can be used as green fuel in automotive, industrial and commercial sectors along with CNG. Vijay Sharma, Director, of Ministry of Petroleum and Natural Gas, who was the chief guest at the event, said, “introducing CBG in the transport sector has multiple benefits such as waste management, reduction in carbon emissions, and additional revenue source for farmers by creating waste to wealth, and giving a boost to entrepreneurship and the rural economy by way of generating employment opportunities.” Mr. Sharma said promoting CBG in the transport sector would strengthen the Indian economy against the shocks of fluctuating crude oil and gas prices. If the total potential of CBG is exploited in the country, India can produce an equivalent of approximately 62 MMT of CBG annually, which is sufficient to replace the entire gas demand of the nation and make farmers go from being annadata (grain providers) to urjadata (energy providers) and contribute to a brown revolution for energy, said Mr. Sharma. Various technology providers present at the event showcased their CBG production technologies and entrepreneurs wanting to start new plants for production connected with them. A spokesperson for Ciro, said, “We currently manufacture LED lights but are planning to venture into producing CBG as well.”
Govt may eye Rs 1.5 lakh crore divestment in FY21; BPCL, Concor sale likely in H1: Sources
The government may come up with the highest-ever divestment target of Rs 1.5 lakh crore in the Budget come February, ET Now reported quoting sources. Sources told ET Now that the government may draw up a list of PSUs where stakes will be reduced below 51 per cent next year. The closure of NEEPCP and THDC sale to NTPC is likely before FY20-end. Another tranche of PSU ETF is likely before the end of this financial year. DIPAM is pushing for corporatisation of LIC and The Airports Authority of India (AAI) to help list the companies. It is eyeing about Rs 90,000 crore from the completion of BPCL and Concor stake sale in the first half of FY21, sources said. Analysts are anyway keeping low expectations from the Rs 1.05 lakh crore disinvestment target for FY20 set in the Budget earlier this year, following reports of delays in privatisation of BPCL. So far, the government has raised just Rs 17,364.26 crore through disinvestment proceeds with no strategic sale for the year. There are concerns over the fiscal deficit as a few reports already suggested the privatisation of BPCL was unlikely this calendar. Severe shortfall in overall tax revenues is being compounded by a large shortfall in divestment proceeds. Add to that is the deferral of spectrum-related payments by two years to provide relief to beleaguered telecom companies is already weighing heavily on fiscal finances. “We are not very disappointed because we always knew and this is going to be a tough sell both Air India and BPCL. Yes, the market would be because a lot of money was, the divestment target which I just spoke about was largely dependent on that so that is a bit of a disappointment. Otherwise, it is a still long way off,” said Nischal Maheshwari of Centrum Broking to ET Now in an interaction. Hemag Jani of Sharekhan said that when you are dealing with government divestment, delays are likely whether because of due diligence or government clearances. “So I am not really surprised by the fact that this entire, let us say BPCL divestment has been pushed to the next financial year. The key question is there any sort of seriousness in terms of government decision making and whether eventually it will happen or not. I think, two- or three-months delay is not something that one should be worried about,” he said.
ONGC gets green nod for Rs 3,500 cr project in Assam
State-run ONGC has received environment clearance (EC) for carrying out onshore exploration, development and production of oil and gas in 100 locations in non-forest area of Assam, that would entail an investment of Rs 3,500 crore, according to official documents. The Union Environment Ministry has given green clearance to ONGC, the country’s largest oil and gas exploration and production company, after taking into account the recommendations of a green panel. “The EC is however subject to obtaining prior permission from the wildlife angle, including clearance from the Standing Committee of the National Board of Wildlife,” the ministry said in a letter to ONGC. The company proposes to carry out drilling in 100 locations to evaluate the hydrocarbon potential of 21 different onshore Petroleum Mining Lease (PML) blocks in a non-forest area covering 944.39 km in Assam and Assam Arakan Basin covering whole of the Upper Assam North in Sivasagar district. After establishing the potential, the company will put the field under development and production. The project cost is estimated to be Rs 3,500 crore, the company added. According to ONGC, there is still a lot of scope in exploring new sub-surface structures in Assam for hydrocarbons. The total area of Sivasagar district PML is 957.73 square kilometre, in which Lakwa, Rudrasagar, Geleki and its adjoining areas are important oil producing fields in North Assam Shelf of Sivasagar district. So far, more than 500 wells (including exploratory wells and development wells) have been drilled in this field with depths ranging from 2,400 metre to 4,200 metre. The current EC has been granted for exploratory drilling of 100 wells which is a part of ongoing exploration efforts in various PML areas falling within the three main blocks of North Assam Shelf in Sivasagar district. India is dependent on imports for crude oil, and the government is encouraging exploration and production of oil and gas. ONGC produces 70 per cent of the country’s crude oil and 60 per cent of its natural gas.
SINGAPORE: PAVILION ENERGY AND TOTAL MARINE FUELS GLOBAL SOLUTIONS AFFIRM PARTNERSHIP IN LNG BUNKERING
Pavilion Energy Singapore1 and Total Marine Fuels Global Solutions (TMFGS), have signed a 10-year fully-termed agreement to jointly develop an LNG bunker supply chain in the port of Singapore. This agreement follows the Heads of Agreement inked by the two companies in June 2018. The cooperation includes the shared long-term use of the 12,000-m³ GTT Mark III Flex membrane LNG bunker vessel (LNGBV) newbuild that will allow each party to supply LNG bunker to its respective customers. “Pavilion Energy is fully committed to leading to leading the maritime industry’s energy transition with LNG as a marine fuel – beginning in Singapore, our home base,” said Frédéric H. Barnaud, Group CEO of Pavilion Energy. “We are very pleased to be working with our strategic partners such as Total, to jointly develop robust LNG bunker logistics and supplies that are readily available for customers in Singapore and beyond.” “We are very proud that the cooperation between Pavilion Energy and Total is paving the way towards the development of LNG as a marine fuel, especially in Singapore, the largest bunkering hub in the world,” said Jerôme Leprince-Ringuet, Managing Director of TMFGS. “With these agreements, we pursue our ambition to build a comprehensive network of supply for this clean marine fuel. It also underscores our commitment to offer our customers the best available and technologically proven solution to significantly reduce the environmental footprint of maritime transport.” Pavilion Energy has taken several firm steps to invest in and support Singapore’s LNG bunker readiness. In May 2019, it performed Singapore’s first commercial ship-to-ship LNG bunkering operation, which comprised a reload of 2,000m3 of LNG from a small-scale tanker to a receiving heavy-lift commercial vessel. Pavilion Energy also chartered its first LNGBV newbuild from Mitsui O.S.K. Lines Ltd (MOL) in February this year, with the vessel currently undergoing construction at Sembcorp Marine’s Tuas Boulevard Yard. Total has built up a number of pioneering achievements in the development of LNG as a marine fuel. The 12,000m3 LNGBV shared with Pavilion Energy will add to the two LNGBVs already chartered by Total from MOL. The first, an 18,600m3 vessel ordered in February 2018 will be positioned in Rotterdam from 2020, and her sister ship ordered in December 2019 will be positioned in Marseilles from 2021. LNG as a marine fuel has gained positive momentum as the global shipping industry looks to adapt to stricter emissions standards. LNG bunker not only produces zero sulphur oxides, but also represents an available and competitive solution that contributes to the International Maritime Organization’s (IMO) long-term strategy of reducing greenhouse gas emissions from ships. Traction in developing LNG bunkering infrastructure has consequently expanded with several leading ports and LNG bunker suppliers alike having established key initiatives and made significant progress in support of these developments.
Gazprom expects gas exports to drop to 198.8 bcm in 2019
Russian gas giant Gazprom sees its gas exports outside ex-Soviet Union this year at 198.8 billion cubic metres (bcm), Interfax cited company’s head Alexei Miller a saying on Thursday, down from a record-high 202 bcm in 2018. Miller also said, according to Interfax, the company is expected to produce 500 bcm of natural gas, up from 497,6 bcm in 2018.
Chennai: Green nod for IOC’s gas supply pipeline project
In a step towards ensuring piped natural gas supply to residents and industries in and around Chennai, the Union government’s Expert Appraisal Committee (EAC) has approved Indian Oil Corporation’s Ennore-Kancheepuram underground pipeline project. The 120km pipeline will act as a feeder line for the upcoming city gas grid distribution (CGD) project, which aims at replacing LPG cylinders with piped natural gas (CNG) supply. Till GCD becomes a reality, bulk supply to industries, which depend on natural gas, will be the primary role of IOC pipelines. As more and more industries are shifting to natural gas from conventional sources like coal, demand for piped supply is witnessing a spike. Earlier this year, IOC started operations along Ennore-Manali pipeline project. Industries like Chennai Petroleum Corporation Limited, Madras Fertilizers Limited and Tamil Nadu Petroproducts Limited have started receiving gas through these pipes, said an IOC official. “The nod for Chennai-Kancheepuram project, costing Rs 8.49 billion, indicates that adequate supply will soon be ensured to similar industries surrounding Chennai,” he said. According to the project design, 30 inch pipelines will be laid from Ennore LNG Terminal situated inside Kamarajar Port Limited, Ennore, to Salavakkam Village in Kancheepuram via Ponneri and Uthukottai. Natural gas imported at the terminal will be transported to gas consumers along this route, including Hyundai Motors and Saint Gobain near Sriperumbudur. As a portion of the proposed project (1.25 km) crosses the Coastal Regulation Zone (CRZ), IOC had submitted a proposal for EAC’s clearance. In its proposal, IOC said that though the pipeline is crossing the Kosasthalaiar river, horizontal drilling method (a trenchless technology) will be used to prevent ecological damage. It has assured that depth of pipeline in CRZ area will be 10-15m below the scour depth of the water body. Based on deliberations held in the meeting on November 29, EAC recommended CRZ clearance for the project given that IOC doesn’t extract groundwater from the project site and no excavated material during construction was dumped in adjacent water bodies. The project needs maximum of five kilo litres per day (KLD) of water and officials have decided to bring it through water tankers or public utility system.
IGL gives green boost to inter-state service with long-haul CNG bus
Delhi’s wheezing lungs can look forward to some relief soon when buses plying to and from cities in neighbouring states — identified as a key source of vehicular pollution in the NCR — will run on clean-burning CNG. Indraprastha Gas Ltd, NCR’s sole supplier of natural gas as automotive and kitchen fuel, on Tuesday unveiled a long-haul CNG bus with a range of 1,000 kms, boosting the Centre’s efforts to create a green corridor along the highways connecting the Capital. The long-haul bus will enable buses plying between Delhi and cities in a radius of 400 kms or so such as Chandigarh, Dehradun, Agra and Jaipur to run on CNG. Buses running on CNG are forced to stay within the NCR due to limitations of their fuel tank capacity. For the same reason, inter-state buses, often with emission standard of BS-II or III vintage, run on diesel and have been identified as a major contributor to pollution in Delhi. The long-haul CNG buses are being run on pilot basis and be scaled up to commercial level. The new bus type will have longer range, thanks to fuel tanks made of composite material developed jointly in collaboration with Mahindra & Mahindra. These tanks are lighter than those made of steel, and so, can be made in larger sizes to give buses longer range. The neighbouring cities are part of Delhi’s airshed and CNG operated buses will help reduce overall pollution. Oil minister Dharmendra Pradhan described the venture as a milestone in ease of living for the people. “Delhi has witnessed revolution in shift towards cleaner, gas-based fuels. Over 500 CNG stations are operating in Delhi NCR today and about 12 lakh piped natural gas connections have been provided. Over 1,000 PNG connections are being provided daily in the NCR. Long haul CNG buses originating from Delhi to other locations will further drive this shift towards cleaner fuels. This will improve overall ease of living of people by mitigating the problem of air pollution, ensuring a cleaner environment and reducing waiting time at CNG stations,” he said after unveiling the bus. Pradhan had on December 21 last year said the Centre was creating a CNG ‘green corridor’ connecting Delhi with its neighbouring states and “Haridwar, Agra, Jaipur and Chandigarh routes will be powered by buses running on CNG by February 2019,” he had said at an IGL function. TOI had first reported on July 13, 2015 that the Centre was developing these green CNG road corridors over next two years, to the neighbouring destinations that are part of Delhi’s airshed and see heavy bus traffic, with a view to cleaning up the NCR air. This will be made possible by fitting the buses with new Type-IV cylinders that are made of polymer material, lighter than steel cylinders and pack a punch to allow a range of 500 kms.