BPCL seeks 70,000 tons petrol to plug supply gap
Bharat Petroleum Corp Ltd is seeking gasoline in a rare move, due to a scheduled, month-long shutdown of a crude unit and a continuous catalytic reformer (CCR), sources said on Wednesday. BPCL will shut a 100,000-barrel-per-day (bpd) crude unit for a month from July 29 and the CCR from August 6 at its 190,000-bpd Kochi refinery in Southern India, sources with knowledge of the plan said. The state-owned refiner is seeking 70,000 tonnes of 91.5-octane gasoline with a maximum 0.004 percent sulphur content in two equal lots for Aug. 8-10 and Aug. 20-22 arrival at Kochi, a tender document showed. It has an option to buy an extra 35,000 tonnes for Sept. 3-7 arrival at the same port through the same tender which closes on June 29, with offers to stay valid until July 3. BPCL’s unusual move to seek petrol came at a time when India’s top refiner Indian Oil Corp plans extensive maintenance work at its key refineries. Nate Gerry Authentic Jersey
Petronet in talks to buy stake in GSPC’s Mundra LNG terminal
Petronet LNG Ltd, India’s biggest importer of liquid gas, is in talks to buy 25 percent stake in Gujarat State Petroleum Corporation’s (GSPC) almost- complete Rs 45 billion Mundra LNG import terminal in Gujarat. The 5-million ton a year import terminal, the third facility in Gujarat for import of natural gas in its liquid form in ships, is nearing completion and GSPC is keen to shed some of its stake to lighten its debt burden. GSPC first offered its 50 percent stake in the project to state refiner Indian Oil Corporation (IOC), but the company was willing to take no more than 25-26 percent. So now, GSPC is talking to Petronet for selling 25 percent stake, sources privy to the development said. The Adani group holds 25 percent interest in the LNG import terminal. GSPC LNG, a unit of GSPC, will hold 25 percent stake, similar to IOC and Petronet once the deal concludes, they said. While Petronet LNG CEO and Managing Director Prabhat Singh did not respond to calls made for comments, GSPC could not be immediately reached for comments. With a view to expanding its gas business, IOC is keen to buy a stake in the Mundra terminal. Petronet, too, is keen to raise its import capacity. Petronet operates a 15-mt a year LNG import facility at Dahej in Gujarat and has another 5-mt a year terminal at Kochi in Kerala. IOC, the country’s largest oil company, is building a 5- mt a year LNG import terminal at Ennore in Tamil Nadu by 2018-end. Besides the Dahej liquefied natural gas (LNG) import facility of Petronet, Gujarat has another 5 mt terminal of Shell at Hazira. Initially, GSPC was to hold 50 percent stake in the Mundra LNG terminal and Adani 25 percent. The remaining 25 percent was to be offered to a strategic partner. IOC as also India Gas Solutions Pvt Ltd — the equal JV between the Mukesh Ambani-led Reliance Industries and Europe’s second-largest oil firm BP — and state-owned Oil and Natural Gas Corporation (ONGC) were short-listed to pick 25 percent stake earmarked for the strategic partner in the project. Initially, eight firms, including state gas utility GAIL India, had expressed interest in buying the stake, but only three were finalised. Sources said GSPC has now rejigged the entire stake sale, by offering half of its stake to IOC and another 25 percent to Petronet. GSPC is looking at a partner which can bring in LNG or consume the imported liquid gas, sources said. The Mundra terminal, which is to be financed in a debt to equity ratio of 70:30, is expandable up to 10 mt per annum in the near future. Patrick Sharp Womens Jersey
Indizel, India s first non-petroleum diesel, launched
My Eco Energy, a private company, has launched the first ever non-petroleum based diesel fuel in India. Called Indizel, it is claimed to be Euro 6 compliant and is made from renewable vegetable oils amongst other raw materials. The company has about five outlets in India as of now with more than 500 outlets in the pipeline before its public launch in September. Indizel, is a substitute to the regular diesel offered by the state-run petroleum enterprises and private players like Reliance and Shell. It will require absolutely no modifications to the existing diesel engines. Since the sulphur content is less than 10ppm as against 550ppm of petroleum diesel, the exhaust gases are claimed to be significantly less harmful. In terms of the standards, it adheres to the EN590 EURO6 norms or the BIS IS 1460 BS-VI norms and is certified for retail usage in the Indian market. Santosh Verma, co-founder, My Eco Energy, says “Indizel is a preferred fuel as it is made from biodegradable products and should contribute towards solving some of today’s most pressing environmental concerns. It offers better fuel efficiency, a smoother ride and lower engine maintenance thanks to its cleaner roots.” The company plans to expand to 4,000 outlets in the next two to three years and expects to gain 5 to 10 per cent market share in diesel. To start with, Indizel will be shipped from Malaysia. But setting up a manufacturing unit in India is on the cards as well. Harold Landry Womens Jersey
IOC sets extensive maintenance shutdown plans for units
Indian Oil Corp has lined up an extensive maintenance turnaround plan for its refineries in 2017, sources with knowledge of the plan said, which could force the country’s top refiner to tap overseas markets for gasoline and diesel to meet rising local demand. IOC plans to shut a 150,000 barrel per day (bpd) crude unit at its 300,000 bpd Panipat refinery in northern India and an associated naphtha cracker plant for about a month in July, the sources said, freeing up some naphtha for exports. IOC also plans to shut a 160,000 bpd Mathura refinery for 15 days from Aug 25; its 120,000 bpd Barauni refinery in Bihar for about five weeks in July-August; and a 150,000 bpd Haldia plant in West Bengal of the country for about three weeks in November-December for a flare job. IOC plans to shut the only crude unit at its 300,000 bpd coastal Paradip refinery in Odisha for about three weeks for repairs in October to enhance its capability to process tough grades, the sources added. The refiner has already shut some units at its 274,000 bpd Koyali refinery in Gujarat for revamp and maintenance from June 1. There is not likely to be any planned shutdowns in the first quarter of 2018, because state refiners normally do not plan maintenance in the last quarter of their fiscal year, when they ramp up runs to meet annual production targets. The company may change dates for the planned shutdowns depending on local fuel demand and the turnaround plans of other refiners, the sources said. No comment was available from IOC. Russell Martin Authentic Jersey
Iran says Qatar crisis not to impact work at joint South Pars gas field
Iran’s Oil Minister said on Wednesday Qatar’s regional isolation will not affect Tehran’s plans to develop its vast South Pars offshore gas field that it shares with the Arab Gulf country, state TV reported. “We will continue our work as planned. There is no problem,”Bijan Zanganeh said. In a heightened crisis between Arab states, Saudi Arabia,Egypt, the United Arab Emirates (UAE) and Bahrain severed relations with Qatar on Monday and closed their airspace to commercial flights, saying it was funding militant groups. Mitchell Schwartz Womens Jersey
Russia-China talks over new gas routes stalled – sources
Talks over new routes for gas supplies to China from Russia have stalled while Beijing rethinks the balance of its energy needs, including how much liquefied natural gas (LNG) it might use, two Russian sources familiar with the matter told Reuters. Gazprom, which is already building a gas pipeline from Eastern Siberia to China – the Power of Siberia – was in talks over two more routes: the so-called western gas route and a gas pipeline from the Pacific Island of Sakhalin. “The Power of Siberia-2 (the western route) and the Sakhalin pipeline – there are no moves. There are a lot of factors and they (China) are not yet ready to take any decisions,” a source familiar with the Russia-China energy talks said. A Gazprom source also said there were no developments on the two pipelines, whose combined capacity, if built, is seen adding up to another 40 billion cubic metres (bcm) in possible gas supplies from Russia to China per year. The Power of Siberia pipeline, expected to be launched by the end of the decade or in the early 2020s, should bring 38 bcm to China per year. Gazprom managed to clinch the Power of Siberia deal after ten years of painstaking talks with Beijing. Neither Gazprom nor state-owned China National Petroleum Corporation (CNPC) immediately responded to requests for comment. According to BP’s energy outlook to 2035, the share of pipeline gas supplies to China, including from Russia, will remain largely unchanged over the ten years from 2025, with the share of LNG and China’s own gas output significantly rising. “We don’t see a room yet for (additional) pipeline gas from Russia to China except from the already signed Power of Siberia contract (before 2035),” Vladimir Drebentsov, head of Russia &CIS economics at BP, told Reuters. Tom Johnson Jersey
Ignoring India, Iran Inks Gas Field Deal with Russian Firm
Iran has signed a basic agreement with Russian energy giant Gazprom for development of Farzad B gas field, discovered by a consortium of Indian state-run companies, in an apparent retaliation against India’s bid to pressure Tehran for a formal deal by cutting purchase of Iranian oil. This is likely to strain ties between the two countries as it can potentially hit India’s ongoing participation and investment in development of oil and gas sector in Iran. The agreement with Russia comes on the back of India’s failure to finalize a commercial contract for Farzad B with Iran despite the optimism expressed by PM Narendra Modi and President Hassan Rouhani for the same when they met in Tehran last year. Iran’s oil minister Bijan Zanganeh recently told Argus, the top global energy market information provider, that Farzad-B field was among three such agreements signed with Gazprom. The other two fields are North Pars and Kish gas fields. Zanganeh’s announcement, made in an interview to Argus publication, follows his threat to replace the Indian consortium led by ONGC Videsh, the overseas acquisition arm of flagship explorer ONGC, in Farzad-B. TOI had on May 30 reported that Iran was considering the option of inducting companies from other countries to replace the Indian consortium or relegate it to developing a small part of the offshore field. Government officials here downplayed Iran’s preliminary deal with Gazprom and said they were positive about a formal deal. But there are others who see the Gazprom deal as Tehran’s willingness to play hardball and let commercial considerations guide relations with India. Farzad-B negotiations have been in a stalemate since the field’s discovery in 2008. The two sides have missed several deadlines even after oil minister Dharmendra Pradhan’s visit to the country last year. India has blamed Iran’s flip-flop over the terms of the delay, while Tehran holds the Indian consortium’s offer as “unsatisfactory”. As reported by TOI, miffed with the delay, New Delhi asked its refiners to reduce oil imports from Iran by a fifth. India is Iran’s key oil buyer. Iran hit back by reducing the payment window from 90 days to 60 days for Indian refiners. National Iranian Oil Company also cut the discount on ocean freight it offered to Indian buyers from 80% to nearly 60%. India had stood by Iran through the sanctions and continued to buy Iranian crude after seeking a US waiver. Jim Kelly Womens Jersey
All India daily revision of petrol price from June 16
India’s state-run oil marketing companies will revise petrol price on a daily basis all across the country beginning June 16, ET Now reported on Wednesday citing unidentified sources from the Ministry of Petroleum and Natural Gas. The reported roll out of daily petrol price revision mechanism all across India comes close on the heels of a pilot project to review petrol and diesel prices on a daily basis in five cities from May 1. There is no immediate information available on daily revision of diesel prices across all India. At present, India’s three state-run oil marketing companies Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp review retail fuel prices periodically and usually revise them every fortnight to pass on the impact of global crude oil prices on their purchases. Earlier in May, the three fuel retailers begun a pilot in the cities of Puducherry and Vizag in southern India, Udaipur in the West, Jamshedpur in the East and Chandigarh in the North to revise petrol and diesel prices everyday, before implementing the mechanism nationwide in order to better shield themselves from volatility in global crude oil prices. Dynamic gains Since these three companies together control the bulk of the fuel retail market with over 90% of the operational outlets between them, and hence practically set the benchmarks in fuel pricing, the private fuel marketers Reliance Industries and Essar Oil, who have most of the remaining market, are also expected to soon follow suit. The daily price change practice, commonly followed in many developed countries, is called dynamic fuel pricing. It is a practice in which the companies change the prices of petrol and diesel every day, based on crude price movements and don’t have to wait for a fortnightly review to adjust the prices. Crude impact The proposed move will allow the oil companies to align their retail prices more closely with the crude prices and will help them in tapering their losses, as currently, the oil companies are vulnerable to fluctuations in currency and crude oil prices over the 14-day cycle of retail price adjustment. This shift in pricing practice will also help in predicting their margins more accurately. The introduction of daily price revision mechanism will likely propel Indian retail fuel market to the international standards. This move will also allow private competitors, Essar Oil and Reliance Industries, which currently follow the price set by state-owned companies, to also shift to a dynamic model. The revision in retail fuel prices by the state-run oil marketing companies on a daily basis instead of fortnightly was recommended by the experts and was not on the orders of the government, oil minister Dharmendra Pradhan had said in April. Jarvis Landry Jersey
GDF to sell entire 10% stake in Petronet LNG for up to $512 million
GDF International will sell its entire 10 per cent stake in India’s Petronet LNG in block trades on Thursday for up to $512 million, according to a deal term sheet. GDF will sell the shares in a price range of Rs 417-440 a share, according to the term sheet. The price range is a nil to 5.2 per cent discount to Petronet’s Wednesday closing price of Rs 440. JPMorgan and Citi are the banks on the deal. Roberto Clemente Womens Jersey
‘India First’ policy shuts China bidders out of Gail pipeline projects worth Rs 3,000 crore
The government’s ‘India first’ policy for official procurement has ejected Chinese companies from pipeline projects worth Rs 3,000 crore being built by state-run Gail India Ltd, giving a big boost to domestic steel firms and carrying forward Prime Minister Narendra Modi’s ‘Make in India’ mission. Indian steel firms are poised to win orders worth tens of billions of dollars without losing business to Chinese supplies which they find suspiciously cheap. A spokesperson for Gail India said the guidelines for domestic preference are being imposed on all tenders that have not been opened so far. All future tenders will impose this condition. Government sources said that preference for Indian firms is likely to be extended beyond the steel and power sectors. The government is already studying more ways to give preference to Indian firms without violating international commitments, sources said. Steel minister Chaudhary Birender Singh told ET that all tenders from central and state governments as well as state firms, where the project is worth more than Rs 50 crore, will give preference to domestic firms unless the quality or quantity is not locally available, or if there is a 15% value addition in India. value addition in India. “This is a new and novel idea to see how we can increase consumption (of domestic steel). These guidelines will be incorporated in any tender in the future,” the minister told ET. ‘Set up Entire Plant’ He said state-run Gail India wanted to purchase pipes worth about Rs 3,000 crore, starting with orders of Rs 1,000 crore in the first phase. The steel minister said foreign firms were free and welcome to invest in India. “If there’s a transfer of technology, then we’d invite anybody to set up a plant in India. If he wants to set up the entire plant, he is welcome,” he said. The move comes as a big blow to China, where stateowned media has sharply criticised similar steps initiated by the minister for power, coal, renewable energy and mines, Piyush Goyal, in the power sector. Goyal had told ET last month that future projects will not be open for bidding by companies from countries that do not allow Indian firms to bid. Chinese state media has reacted strongly against the loss of business in India. Recently, Global Times, published by state-owned People’s Daily said debarring of Chinese firms in the power sector was new evidence of India’s “overly suspicious approach towards China”. It said the move could backfire because India’s power sector was marred by shortages. The power minister had told ET that business relations should be based on reciprocity – a concept lauded by a top executive of General Electric. However, Global Times said it would be difficult and costly for India to find proper replacement for goods and services offered by Beijing. Indian government officials and industry executives say Chinese firms should not be allowed in sectors where Indian firms are barred by Beijing. Indian executives also say China has a huge surplus capacity in steel which it wants to dump in India. Western companies, particularly those in the European Union, have also complained about a flood of Chinese imports, which they say are being dumped in their markets at the cost of local manufacturing and jobs. John Brown Authentic Jersey