IOC to enter battery vertical
The Indian Oil Corporation (IOC) is gearing up to enter the battery vertical soon and willing to acquire superior technologies for that, and customise them to Indian conditions while improvising on its lead-acid storage solutions. This foray is intended to produce batteries that help in driving electric vehicles beyond the 50-km range. It comes amidst the prophecy that all vehicles powered by internal combustion engines are going to be phased out with the electric drives taking their place. “Domination of the Indian roads by the electric vehicles is going to take a long time, mainly due to the pricing and logistical issues,” said IOC Director (R&D) S.S.V. Ramakumar. Pilot project Addressing the media after inaugurating a CNG station at Ibrahimpatnam here on Saturday, Ramakumar said another cutting-edge technology, which the IOC’s R&D division was set to take from the lab to the roads in the near future, was hydrogen and Compressed Natural Gas (CNG) mixtures, which were being piloted by a Delhi Government-owned fleet of buses. “The IOC is prepared to make an on-site production of these fuels once the result of the trials is known,” he said. “A nano-material that helps LPG in cutting metals with greater finesse when its temperature is increased from the present 1,900 to 2,500 degree celsius is under development. This will facilitate elimination of highly toxic oxy-acetylene gas being used by the heavy industries, including ship breaking units,” he said. Ramakumar said a product set for pan-India launch was a superior blend of engine, transmission and axle oils, which was validated in Karnataka. This category of products would bring down the tail-pipe emissions of commercial vehicles by 30% and give a fuel saving of 4 to 5%. BS VI fuels Ramakumar further said the IOC was in the forefront of producing BS-VI fuels, which would have 10 PPM of sulphur compared to 50 PPM in the BS-IV variants and just 8% of polyaromatic hydrocarbons (which are carcinogenic) against 11% in BS-IV fuels. An enzyme that the IOC started producing in-house was going to break the global monopoly of a US-based company. With it, the expenditure entailed by the enzyme consumption in the manufacture of ethanol would decline substantially, Ramakumar added. Seth Roberts Authentic Jersey
Piped gas to 3 localities of Patna soon
The Gas Authority of India Limited (GAIL) will shortly launch piped natural gas (PNG) for houses and compressed natural gas (CNG) for transport sector in Patna. The project is coming up as part of the Jagdishpur-Haldia-Bokaro-Dhamra pipeline under Pradhan Mantri Urja Ganga Yojana, which will connect the eastern and north-eastern states to the national gas grid, said GAIL public relations executive Jyoti Kumar on Friday. “A ‘city gas station’ is being constructed at Phulwarisharif, from where the green fuel will be distributed as PNG for houses, CNG for transport sector and also to the industries as a green and clean fuel,” Jyoti told this newspaper. He said under the pilot project, PNG will be provided to around 1,200 houses in Jalalpur City, Patna campus of BIT Mesra and 96 quarters of Building Construction Department on Bailey Road. He said there is a plan for setting up CNG stations at six locations in Patna. “Under the pilot project, two stations will be completed initially for which necessary permissions have already been received. The construction work is likely to start by the end of May,” Jyoti said. He further said the Jagdishpur-Haldia-Bokaro-Dhamra pipeline project is divided into three phases to cover the regions of Uttar Pradesh, Bihar, Jharkhand, West Bengal, Odisha and Madhya Pradesh. This gas network will supply fuel to major industries such as the refinery plant at Barauni and various other industrial plants. “A 232-km-long spur pipeline connecting Dobhi, Barauni, Patna and Naubatpur is already in the final stages. It will supply piped domestic gas from the main Jagdishpur-Haldia pipeline. It’s one branch originates from Gaya and passes through Nalanda before reaching Begusarai while another one is from Nalanda and passes through Patna, Saran, Siwan, Gopalganj and West Champaran,” Jyoti said. Deliberating on the gas grid in the region of Bihar, Jyoti said, “The main pipeline from Dhobi to Naubatpur near Patna has been completed and commissioning of the same is underway. Further, the 22km-long pipeline from Naubatpur to Phulwarisharif is likely to be completed by October 2018.” The GAIL official said the infrastructure for the project is being set up with an investment of Rs.3.57 billion in initial five years and will be expanded for 25 years with an investment up to Rs 12.57 billion. “PNG is a safe, convenient and economically cheaper in comparison with other cooking gas. With the use of natural gas, pollution in the city will be reduced to a great extent. Also, as natural gas will be used as a cooking gas, the residents will be benefited economically and free from worries of cylinders,” Jyoti added. Malcolm Mitchell Authentic Jersey
Nagarjuna Oil goes for liquidation as bidding fails
The beleaguered Rs 4,700-crore Nagarjuna Oil refinery project at Cuddalore in Tamil Nadu has entered the liquidation process under the Insolvency and Bankruptcy Code (IBC) after the 270-day deadline, offered by National Company Law Tribunal’s Chennai bench to identify a successful bidder, ended on Friday. With no successful bidder or a resolution plan in place, the Committee of Creditors (CoC) has recommended liquidation and the same has been informed by the resolution professional (RP) to NCLT on Friday evening. Nagarjuna Oil Corporation’s (NOCL’s) books show a secured debt of Rs 8,000 crore and an unsecured debt of Rs 800 crore. The four bidders which came forward — BPCL, Citax Ventures, Gulf PetroChem and Haldia Petrochemicals — submitted bids lower than Rs 1,450 crore set as liquidation valuation, hence rejected. Nagarjuna Oil — backed by Nagarjuna group, Tatas and Trafigura — planned to set up a 6 mtpa (metric tonnes per annum) oil refinery in Cuddalore. This project was later recommended to be the anchor client for the Petroleum, Chemicals & Petrochemicals Investment Region (PC&PIR) by the Tamil Nadu government to the Centre, which too accepted and declared the Cuddalore zone as a PC&PIR region. “The CoC was not happy with the resolution plan that successful bidders had submitted, as they found them far below liquidation value. It is sad that NOCL is going for liquidation. May be something good can happen in the liquidation process itself,” NOCL’s RP, S Rajendran, appointed by the NCLT, told TOI. “The process will take a few days and NCLT will have to appoint a liquidator. I have declined to take up that role, since I came here to ensure a resolution,” Rajendran added. On Friday, the NCLT dismissed a petition by employees seeking to ensure their rights, as the process of liquidation was out to take place, on certain grounds. Another petition moved by the RP before the NCLT to direct Chennai Corporation, which had sealed NOCL’s office in Chennai for non-payment of dues on Monday this week, was posted for further hearing, with a notice to the Chennai Corporation, it is learnt.
Fuel rates appear unaffected by costlier crude, analysts wary of price control
State-run oil companies have raised petrol and diesel prices only marginally this week despite higher international rates, triggering a fall in shares of the big refiners amid worries that political considerations may bring back price controls in fuel prices. Retail fuel prices were unchanged from Monday to Wednesday, after which petrol rates were raised by 5 paise and diesel was up 9 paise per litre. Since Monday, crude oil prices have risen $3 to nearly $75 per barrel, which impact international fuel prices that are used as a benchmark for retail prices. Shares of Indian Oil fell 4%, Hindustan Petroleum 6% and Bharat Petroleum fell 7% on Thursday when the Sensex rose. Shares have fallen 12%-17% since April 10 as investors reacted to last week’s media reports that state-run companies had been asked to absorb fuel price hikes up to one rupee a litre ahead of the elections in Karnataka. A spokesperson for Indian Oil CorporationNSE 0.09 % however said they has received no directive from the government on pricing and have been freely pricing petrol and diesel. But investors are not convinced. “The fear that fuel subsidy might return is weighing on stocks. A series of state elections this year leading to general election next year may make it difficult for state companies to fully pass on price hikes to consumers,” said Ritesh Gupta, an analyst with Ambit. Karnataka will go to polls on May 12 while Rajasthan, Madhya Pradesh and Chhattisgarh are scheduled to hold elections by year-end. Analysts are concerned that the government might ask oil companies to subsidise petrol and diesel consumers although officials have denied any plan to interfere in fuel pricing. Local prices of petrol and diesel are based on the trailing 15-day average of international rates. These also factor in freight, exchange rate, dealer commission, excise duty and value added tax. The inability to raise prices affect the gross marketing margin of fuel retailers, which has come under pressure in the past week, said another analyst, asking not to be named. Petrol and diesel have been decontrolled for years but it is widely believed that the government nudges oil companies to go slow in raising prices before elections, and companies make up for the loss by rapidly increasing fuel rates after the polls. Officials, however, say prices move strictly in step with international rates. Duron Harmon Authentic Jersey
Government and Industry Launch New U.S.-India Natural Gas Task Force During U.S.-India Strategic Energy Partnership Bilateral
As the U.S.-India Strategic Energy Partnership Bilateral takes place this week in India, the U.S.-India Strategic Partnership Forum (USISPF) arranged a Delegation of high-level executives in Delhi to meet with Minister of Petroleum and Natural Gas Dhamendra Pradhan, U.S. Department of Energy (DOE) Secretary Rick Perry, along with other prominent government and industry stakeholders. On Monday, USISPF hosted a roundtable with DOE Secretary Rick Perry, DOE Undersecretary Mark Menezes, and officials from the Ministry of Petroleum and Natural Gas, to discuss priorities for the bilateral and the launch of a new Indo-U.S. Natural Gas Task Force. The USISPF delegation, formed of senior U.S. energy executives from Air Products, ExxonMobil, GE, 8minutenergy, Emerson, First Solar, AES, Dow, Cairn Energy, Shell, Honeywell, and others, are keen to discuss investment plans and issues in the oil and gas, coal, renewable energy sectors. USISPF also hosted the Honorable Minister of Petroleum and Natural Gas, Dharmendra Pradhan. Minister Pradhan stated the need for a stronger energy partnership to cater to the needs of both countries. He also stressed on the need for technological advancements in the energy sector to meet the needs of the citizens. During his discussion with USISPF’s Energy and infrastructure delegation, Minister Pradhan welcomed companies and organizations to invest in India and explore opportunities under new and renewable energy and the gas sector. Richard Boocock, the President for Air Products’ Industrial Gases—Middle East, India, Egypt, and Turkey, chaired the USISPF Delegation, saying, “It was an honor to participate in the roundtable discussions earlier today on the business climate for energy firms in India with the U.S. Department of Energy Secretary Perry. These discussions are instrumental in determining how U.S. firms can further support India’s energy sector and future economic growth. Since we are already a long-term investor in India, Air Products is keen to share its technology, know-how and investment capacity, which can bring great value to the U.S. and India alike.” Recent investments made by Air Products include the expansion of our Kochi Industrial Gas Complex to support the growth of BPCL’s Kochi Refinery. Projects such as this one demonstrate how U.S. companies are applying U.S. technology and know-how as a key enabler to the ‘Make in India’ initiative. According to Mr. Boocock, Air Products has plans to grow their business with an increased focus on providing technology and equipment for air separation, hydrogen generation and associated technologies for natural gas liquefaction and industrial gas applications. “These investments represent a commitment to growing our presence and strengthening relationships, as well as infrastructure, in the region,” said Mr. Boocock. USISPF believes natural gas and renewable energy integration is a key area for enhanced strategic cooperation between the U.S. and India and will support the Indian government’s aspiration to boost natural gas presence from 6.5% to 15%. Natural gas and renewable integration in India presents a new opportunity to grow the share of gas for power generation and is a potential market for U.S. gas exports, related investments, trade and technical expertise. “Recently, the U.S. has become a new long-term source of gas supplies to India. Further developing gas markets in India will enhance the viability of existing long-term contracts for U.S. gas in India and create significant business opportunities for U.S. energy companies,” said Nolty Theriot, USISPF Vice President of Policy & Advocacy. India’s emerging gas story is deeply connected with its critical economic transition in mobility, urbanization and reliability in an increasing market-based system. India will account for one third of the growth in global energy demand in the coming decades and developing the country’s natural gas markets will aid India’s ability to meet the demands of a growing middle class in a modernizing economy. David Clarkson Jersey
BPCL mulls starting oil trading office in Singapore
Bharat Petroleum Corp Ltd (BPCL) plans to start a trading office in Singapore in the near future to procure crude for its refineries and trade oil products, its head of refineries, R Ramachandran, said late on Wednesday. “We will open office in the near future,” he said, without specifying a timeline. However, a company source, who declined to be named, said the office may start operations by September. BPCL could become the second Indian state refiner after Indian Oil Corp to open a Singapore trading outpost as Indian buyers hunt for competitively priced spot cargoes from the Asian oil-trading hub. The company has started looking for office space and plans to transfer up to four staff from Mumbai to Singapore initially, Ramachandran said. The staff strength would grow as the company expands its trading business in Singapore, he said. BPCL along with its subsidiaries operate refineries that can process 730,000 barrels per day of crude oil, equivalent to about 15 per cent of India’s overall refining capacity. Samuel Morin Jersey
Domestic natural gas prices hiked by 6% for April-September 2018: Ind-Ra
India Ratings and Research (Ind-Ra) has published the March edition of its credit news digest on India’s oil and gas sector. The report highlights the trends in the oil & gas sector with a focus on domestic production, import, consumption, refining and gross under-recovery, regulatory changes and the recent rating actions. Domestic natural gas price has been raised by around 5.9% to USD 3.06/mmbtu for April – September 2018. Prior to this, the gas price was raised by around 17% to USD 2.89/mmbtu for October 2017-March 2018 after it was revised downward five times consecutively since the implementation of the domestic gas pricing formula in October 2014. The increase in gas prices is likely to impact fertiliser, power and city gas distribution entities which are the primary consumers of natural gas. India’s crude oil production decreased 2.4% yoy during February 2018. Production volume of Oil India Limited increased marginally by 0.1%, while it declined by 3.3% and 1.1% for Oil & Natural Gas Corporation Limited and fields under production sharing contracts, respectively, during February 2018, on a yoy basis. The crude oil import volume increased 6.5% yoy during February 2018. India’s import dependency of crude oil had been around 82.8% during April 2017-February 2018. Petroleum Planning and Analysis Cell estimates crude import of 219 million tons (mt) in FY18 (FY17: 214mt). Refining throughput in February 2018 was 20.1mt, which was 5.4% yoy higher. Bharat Petroleum Corporation Mumbai refinery processed a higher volume, aiding the overall increase in throughput volume. India’s petroleum products output was higher by 7.8% yoy to 20.5mt during February 2018. On a cumulative basis, the production was 4.8% yoy higher during April 2017 – February 2018. Natural gas production during February 2018 was 1.5% yoy lower. The production volume grew for Oil & Natural Gas Corporation Limited (higher 1.5% yoy), whereas for Oil India Limited and ‘from private/joint venture fields’ it declined yoy (negative 7.2% and negative 9.4% yoy, respectively) during February 2018. Natural gas consumption increased by 9.3% yoy during February 2018. The increase in consumption was on account of increased domestic demand and a 6.1% yoy increase in imports during April 2017-February 2018. Ron Francis Jersey
BP and Reliance sanction second phase of KG D6 development
BP and Reliance Industries Limited (RIL) announced the sanctioning of the ‘Satellite cluster’ project in Block KG D6. The companies are moving forward to develop the Block’s discovered deep-water gas fields in an integrated series of projects, bringing new gas production for India. The ‘Satellite cluster’ is the second of three projects in the Block KG D6 integrated development. The first of the projects, development of the ‘R-Series’ deep-water gas fields, was sanctioned in June 2017. Together the three projects will develop a total of about 3 trillion cubic feet of discovered gas resources with a total investment of c. INR 400 billion (US$6 billion). They are expected to bring a total c. 30-35 million cubic metres (1 billion cubic feet) of gas a day new domestic gas production onstream, phased over 2020-2022. Mukesh Ambani, Chairman and Managing Director of RIL, said: “In consonance with our announcements last year to raise domestic gas production, we are delighted to announce the on-schedule progress of the Satellite cluster in the east coast of India. This development supports the country’s imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy.” Bob Dudley, BP Group Chief Executive, welcomed the investment decision: “This latest investment is a further demonstration of BP’s commitment to India. Through our partnership, Reliance and BP are able to develop these discovered gas resources efficiently and economically, working closely with the Government of India. These new developments will produce much needed energy for India’s thriving economy.” Integrated field development of deep-water gas fields The Satellites cluster is a dry gas development and comprises four discoveries with five well subsea development in ~1700 metres water depth, up to ~15 kilometres east and southeast of the producing D1D3 fields in KG D6. The first of the KG D6 projects to be sanctioned, the R-series project, is already in execution phase with all major contracts awarded. The Satellites cluster project will draw on execution synergies with the R-series project being developed concurrently. India today consumes over 5 billion cubic feet a day of natural gas and aspires to double gas consumption by 2022. Gas production from the integrated development is expected to help reduce India’s import dependence and amount to over 10% of the country’s projected gas demand in 2022; benefiting India and domestic consumers at large. Ricky Seals-Jones Jersey
Good news for Delhi residents: Get money for power cuts soon, Arvind Kejriwal government decides
Citizens would be compensated for unscheduled power cuts lasting longer than one hour, if a policy approved by the Delhi government on Tuesday gets a green signal from Lt. Governor Anil Baijal. Chief Minister Arvind Kejriwal on Tuesday approved the policy to provide compensation to users in case of “unscheduled power cuts by the private power distribution companies” and it was later sent to the Lt. Governor for approval. The policy would now need Baijal’s approval to come into force. “According to this new policy, in the case of an unscheduled power cut, the DISCOMS (power distribution companies) will have to restore the electricity within one hour, and failure to do so shall result in a penalty of Rs 50 per hour per consumer for the first two hours and Rs 100 per hour per consumer after two hours,” an official statement said. The compensation would be provided to consumers in their monthly electricity bills. “The Delhi government is confident that the LG will concur with the policy and endorse this pro-consumer step, which will become a model for other governments across the country to follow,” the statement added. Tim Schaller Jersey
Iran’s oil export reaches 2.1 mbd in March
Exports volume for Iran’s crude oil stands at two million and one hundred thousand barrels per day (mb/d) in March. The figure is expected to increase in April. China and India are the largest buyers of Iranian crude, with more than one million barrels in total. The figure is expected to reach nearly 1.3 million barrels per day in April, while China and India will maintain their position as the first and second largest oil importers of Iranian crude. Dutch-British Shell, France Total, Italian ENI and Saras Companies, Greek Hellenic Petroleum and Spain Repsol and Hungary MOL are among Iranian oil customers in Europe. According to the Oil Ministry’s report, Iran has also exported 400,000 barrels per day of condensates during the March with South Korea was the biggest customer with purchasing half of the amount. South Korea has requested for more gas condensate from Iran, however, due to increased domestic consumption and its allocation to Persian Gulf Star Oil Co., there is no possibility of realizing South Korea’s demands for it. South Korea now receives about 200,000 barrels of gas condensate per day from Iran. Adrian Peterson Authentic Jersey