Bottlers refuse to import LPG
Gas bottlers have been refusing to import liquefied petroleum gas (LPG) even though the government has agreed to their longstanding demand to be allowed to operate their own tankers because now they have another complaint. They say that a clause in the recently amended LP Gas Transport Bylaw 2017 is impractical because it requires them to sell their products in areas fixed by Nepal Oil Corporation (NOC). Diwan Chand, general secretary of the Nepal LP Gas Industry Association, said they would not take purchase delivery orders (PDOs) from NOC until it revised the offending provision in the bylaw. “Most importers have their own bottling plants, so how can they sell the imported gas to others instead of distributing it from their own plants?” he said. The government has allowed 46 gas plants to import 775 bullet tankers. The use of own tankers is expected to save the country Rs2 billion annually in freight charges being paid to Indian transporters. NOC issues PDOs to gas importers who buy LPG from depots of Indian Oil Corporation (IOC) in India. Currently, Nepal’s imports of LPG are being shipped in Indian gas bullets. A month ago, Everest Gas Industry of Kathmandu acquired two gas bullet tankers, but it has not yet taken PDOs from NOC. According to the association, gas importers have placed orders for 300 gas bullets. “NOC’s provision has put their investment at risk of loss,” Chand said. Meanwhile, NOC claimed that the bylaw was not meant to discourage importers from bringing LPG in Nepali-owned bullet tankers. NOC Spokesperson Bhanubhakta Khanal said that the corporation would not enforce the provision when there is normal supply. “NOC has been authorised to intervene and invoke the provision only when there is a short supply of cooking gas in the market,” said Khanal, adding that the provision had been inserted in the bylaw to ensure regular supply of the essential cooking fuel. Khanal blamed the delay in importing cooking gas on bullet tanker owners who had not completed the official procedure necessary to transport the fuel. “The newly imported bullet tankers have not been certified by NOC technicians, and their owners have not obtained an explosives licence and road permit from Indian authorities.” Khanal said NOC was always open to holding talks with gas bottlers about the provisions in the bylaw. Charles Woodson Authentic Jersey
IEA does not foresee crude oil demand peaking soon, says Director Birol
The International Energy Agency (IEA) does not expect oil demand to peak any time soon due to rising consumption in developing economies, Director Fatih Birol said on Monday. Birol also warned that oil markets could enter a period of high volatility unless companies develop new projects after two years of sharp drops in investments sparked by low oil prices. “We do not see in the near and medium terms oil products can be substituted by other fuels. More than one third of growth comes from trucks in developing Asia… We do not subscribe to oil demand peaking anytime soon,” Birol said at the GE Oil and Gas annual meeting in Florence, Italy. “If there are no major new major projects this year, it will be very difficult to see how we do not have turbulent times in the market in the years to come because of the growing supply gap.” Nick Perry Authentic Jersey
Pipeline leak halts production from Libya’s Messla oil field – official
A leak in an oil pipeline temporarily halted production from Libya’s eastern Messla oil field on Monday, a spokesman for the company that runs the field said. Omran al-Zwai, spokesman for the Arabian Gulf Oil Company (AGOCO), said repair work was expected to be completed within a day. The field produces approximately 70,000 barrels per day (bpd). AGOCO’s production before the leak was about 250,000 bpd, Zwai said. AGOCO is a subsidiary of the National Oil Corporation (NOC) operating mainly in eastern Libya. Libya’s national production has been fluctuating around 700,000 bpd. Kyrie Irving Womens Jersey
Abu Dhabi’s NMDC wins $316m India port contract
Abu Dhabi’s National Marine Dredging Company said it has been awarded a $316-million engineering, procurement and construction (EPC) contract for a hitech floating LNG (liquefied natural gas) port at Jafrabad in the Indian state of Gujarat. India’s emerging energy entity, Swan LNG Private Limited (SLPL) is developing the country’s first all-weather floating storage and regasification unit (FSRU)-based LNG import terminal in Gujarat at an estimated cost of $800 million. On completion, it will have an initial capacity of 5 million metric tonnes per annum (MMTPA), expandable up to 20 MMTPA. HH Sheikh Mohammed Bin Zayed Al Nayan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, launched the project during his recent three-day India visit. He was there as the Chief Guest for India’s 68th Republic Day Celebration at New Delhi on January 26. This project award has set a new milestone in strategic relationship between India and UAE. The Indian arm of NMDC, National Marine & Infrastructure India Private Limited (NMIIPL) has already begun construction on the project and targets to complete the project within three years, said a company spokesman. “We are proud to be a part of India’s next generation LNG import facility. We ensure that this world class infrastructure will be engineered with the highest paradigms of safety, environment, compliance, reliability and quality,” he added. Walter Payton Jersey
India-Iran energy co-op in the pipeline
Marking India’s 68th Republic Day a flag-hoisting ceremony was held at the embassy on Thursday. It was followed by a speech by Ambassador Saurabh Kumar. After the ceremonies the Indian envoy talked with the Tehran Times about India-Iran relations. Below is the text of the interview. Seven agreements, valued at over $3b, were signed on January 23 on the sidelines of the international conference on investment opportunities and sustainable development in Mokran coastal area in the Chabahar Free Trade Zone (CFTZ). Agreements were signed by Indian, Omani, Chinese and S. Korean investors. Could you please elaborate on this? Chabahar is a very important symbol of cooperation between India and Iran. It was a very important issue of connectivity between India, Iran and Afghanistan and as well as the Central Asia region. Deputy Chief of Indian Mission, Davesh Uttam, was present at this ceremony which was attended by around a dozen Indian companies. We have a few important initiatives which are presently under way. Rashtriya Chemicals and Fertilizers and Gujarat State Chemicals and Fertilizers are two important Indian companies that manufacture fertilizers and are looking to establish urea and ammonia plant in CFTZ. They are searching for a reliable partner from the Iranian side. “There is no distinction between good terrorist and bad terrorist.”Another initiative is an agreement between National Aluminium Company of India (NALCO) and Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) for an aluminium smelter plant in CFTZ. A delegation from NALCO was here in December and held extensive discussions with IMIDRO and visited various sights in Chabahar. At present NALCO and IMIDRO are looking at an independent consulting company to prepare a feasibility report. In addition, there were other Indian fertilizer companies which held discussions with the Iranian side. If investments come about they would add significantly to the development of the Chabahar region and provide the needed traffic for the Chabahar Port. It would be hard to put a deadline into these projects because of their technical nature and commercial aspects. One of the most critical issues is establishing an understanding on the gas price and again there are a lot of technicalities involved. Expectation is that they would reach a positive conclusion and we are encouraging these activities. Minister of Transport and Urban Development Abbas Akhundi visited India last September. Both India and Iran had decided to hold an event in Chabahar in which Indian private sector and other stakeholders can be invited. “It (terrorism) is becoming highly unpredictable.”We had a high level Indian official from our foreign ministry who was in Tehran in January and he visited the Chabahar region. During those interactions, we decided that we are looking at this event on the second half of April. I emphasize the importance of this event because what Chabahar needs is investment. The private sector will be the major investor and it needs a lot more exposure to Chabahar and the facilities there. India will invest $85m in equipment for phase one of Chabahar Port and the process is underway which would short list the Indian companies that would provide the needed equipment. As far as the $150m in line of credit is concerned we are waiting for the Iranian side to submit the projects for which the finances would be utilized. In your previous interview with the Tehran Times you said “we are trying to put in place three important agreements”, namely Preferential Trade Agreement (PTA), double taxation avoidance and bilateral investment agreement (BIT). Any progress in this goal? This is something that foreign ministries of both countries are monitoring. We had received a proposal from the Iranian side. Indian Ministry of Commerce and Industry has examined these proposals and given its comments to the Iranian side. On double taxation avoidance agreement we had a few suggestions from Iran. On BIT we have agreed on some dates to hold meeting in this regards. However, no documents have been finalized at this stage.” Is the idea of transferring of Iranian gas to India through seabed still under consideration There is a working group relating to this matter. As far as our cooperation for the hydrocarbon sector, which includes transfer of gas to India, both sides are considering all possibilities, including pipelines and LNG. We are looking for a techno-commercial feasible option to utilize. Turning to political issues, how can Iran and India cooperate on containing the spread of terrorism, especially in Central Asia? Terrorism is a major concern. It is becoming highly unpredictable. This is an issue on which both Iran and India have expressed serious concerns. We have mechanisms through which we exchange views. Very important dialogue has been held between Supreme National Security Council and the National Security Council Secretariat of India. Can you elaborate on the steps needed for regional security, especially as Iran and India are very concerned about the scourge of terrorism. All the countries have to be sincere in the fight against terrorism. India has always maintained that there is no distinction between good terrorist and bad terrorist. We have to target all terrorists. All means that sustain terrorism have to be attacked, including financing and material support. Most importantly India has put on the table at the UN a comprehensive convention on terrorism. However, the progress on this issue has not been to our satisfaction. We look forward to cooperation with our partner countries so that this initiative reaches its logical conclusion. Hanley Ramirez Womens Jersey
GLOBAL LNG-Oversupplied Japanese players to sell off excess volumes
Asian spot LNG prices extended losses this week as oversupplied Japanese utilities sought to offload cargoes and as key European gas benchmarks softened. Asian prices for LNG delivery in March fell 25 cents to about $7.75 per million British thermal units (mmBtu), traders said, ranging from $8/mmBtu to about $7.60/mmBtu. Prices tailed off even more sharply into April, currently trading at around the $7/mmBtu mark, they said. One trader said utilities in Japan “have overbought due to warmer than average temperatures at the end of 2016 and the current cold spell doesn’t look like it will last,” leaving them stuck with larger inventories. “This will put massive pressure on the market as I don’t think the demand is there for March,” to absorb the excess supply, the trader said. Kansai Electric, Osaka Gas and LNG importing giant JERA are expected to unload at least one cargo apiece for March delivery, he said, though it was unclear if Kansai was trying to arrange a time-swap as opposed to a straightforward sale. A second trader said JERA was already marketing two shipments from Indonesia’s Donggi-Senoro LNG export facility and that it has likely sold one of those cargoes. Further weighing on Asia’s March LNG contract was an 8 percent slide in Europe’s equivalent benchmark, at Britain’s National Balancing Point trading hub, which settled at $6.40 per mmBtu on Friday. China’s Sinopec put up for tender several cargoes for February and March delivery from Australia’s AP LNG project, where it is a stakeholder with long-term supply rights. Exxon Mobil’s Papua New Guinea (PNG) export plant sold off one cargo for March and one for April loading, via a tender process, at a price above $8/mmBtu, traders said. “I think PNG went above 8 – but – they are big and rich and several people still have a lot of in-the-money contracts in the Far East where you would pay a big premium to take in a cargo of that quality,” one said. hailand’s PTT was seeking a March shipment via tender. Angola, which has launched a fresh sale tender, this week sold a cargo to Spain’s Union Fenosa at a price-tag above $9/mmBtu. The status of Gail India’s buy tender, which closed on Jan. 24, could not be immediately verified. Attracted by an upsurge in gas prices in France and Spain, U.S. exporters are shifting their focus away from Asia as problems with Algerian gas supply have driven southern Europe’s gas prices higher. Algeria’s Skikda LNG facility will fully resume at the end of the month after a maintenance, but state energy firm Sonatrach has fulfilled its gas delivery commitments, the Sonatrach CEO said on Thursday. Argentina state-run energy firm Enarsa has launched a tender, which closes on Feb. 7, seeking 16 LNG cargoes for delivery between April and August. Chad Williams Authentic Jersey
AG&P Signs MoU with Hindustan LNG to Build a Terminal in Andhra Pradesh
AG&P (Atlantic, Gulf and Pacific Company), the leading global integrator of LNG infrastructure solutions including LNG terminals and the supply chains that emanate from them, and Hindustan LNG (HLNG), a Hyderabad-based LNG import terminal development company, have signed a Memorandum of Understanding (MoU) to supply tolled gas to power stations in the East Godavari region of Andhra Pradesh, India. Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal that AG&P will also design and build at the port in Andhra Pradesh. The MoU was signed at the Partnership Summit 2017 organized by Confederation of Indian Industry (CII), and the signing was graced by Chief Minister N. Chandrababu Naidu. The MoU has launched a fully integrated solution for delivering tolled gas in India, including design, construction, financing, operations and maintenance of the new terminal, which will ensure a reliable and low-cost supply to power producers, fertilizer plants, cold storage and other industries in Andhra Pradesh and other markets along the east coast. Speaking at the signing ceremony in Andhra Pradesh on 28th January, 2017, Dr. C.R. Prasad, Chairman of HLNG said: “Andhra Pradesh is the ideal place for developing an LNG import facility to serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG. The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solution that enables the region to continue on its growth trajectory.” AG&P will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users. AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities. “It is a great privilege for AG&P to help implement India’s vision for clean, low-cost, flexible and reliable power. Andhra Pradesh is playing a critical role in manufacturing and trade. The state and its people are on a strong, upward trajectory. We see the provision of tolled gas to supply power and fuel to factories, homes and even transport in an environmentally clean way as crucial elements of Andhra Pradesh’s future. We are honoured to be a part of this exciting phase of the state’s development,” said Dr. Jose P. Leviste, Jr., Chairman of AG&P. Brett Favre Womens Jersey
Budget wish list: Oil & Gas sector hoping for reduction in cess rate, 100% depreciation allowance
he oil and gas sector is hoping for couple of announcements related to reduction in cess rate, 100 per cent depreciation allowance for projects undertaken for upgradation of fuel quality and exemption on 15 per cent service tax on LNG Sea transportation and regasification from the government in the upcoming Union Budget scheduled on February 1. Experts also believe that the industry is further expecting to get infrastructure status from the government. According to ICICIDirect.com, the change in Oil Industry Development (OID) cess duty would be positive for upstream oil companies as it would reduce costs by $5-6 per barrel at current crude oil prices. The elimination of import duty on LNG will also boost LNG demand and lower costs. It will prove to be positive for gas utility companies. At present, only the power sector is exempted from paying import duty on spot LNG. In the past one year, crude oil prices have surged nearly 64 per cent to $55.52 per barrel till January 27, from $33.89 per barrel on January 28, 2016. IndiaNivesh Securities says upstream companies like ONGC and Oil India are seeking a reduction in cess rate applied on crude producers. It was linked to crude prices in last budget at the rate of 20 per cent ad-valorem from earlier being linked to volume at Rs 4500 per mt. The recent rise in crude oil prices is impacting the profitability of these companies. The brokerage house further said that there is very low probability that the sector will get infrastructure status from the government in the upcoming Union Budget. However, if it happens, the move will be positive for upstream companies like ONGC and Reliance Industries. At present, 15 per cent tax is levied on sea transportation of LNG from a place outside India to the first customs station of landing in India. According to market experts, the industry has also demanded inclusion of LNG facility at port location in the definition of “industrial infrastructure” in section 80-1A of Income Tax Act. Federation of Indian Petroleum Industry seeks clarity on the definition of the term “Mineral Oil” by including both crude oil and natural gas under it for the purpose of section 80 IB (9) retrospectively irrespective of NELP rounds. The industry also flags concerns about the implementation of BS-VI emission norms by April, 2020 and the need to incentivise the shift for downstream companies. Hence, the industry body has suggested that 100 per cent depreciation allowance be provided for projects undertaken for up-gradation of fuel quality. Brokerage houses believe that the move will be positive for OMCs and upstream companies both. In the past one year, the BSE Oil & Gas outperformed benchmark equity indices and surged 45 per cent till January 27, whereas BSE Sensex gained 13.84 per cent during the same period. During the period, oil marketing companies such as HPCL, BPCL and IOC surged 101 per cent, 93.54 per cent and 62 per cent, respectively. On the other hand, other oil and gas majors such as Reliance Industries, ONGC and Oil India gained 2.58 per cent, 40.49 per cent and 30 per cent, respectively. Gail (India) gained 35 per cent in the past one year. Jonathan Marchessault Jersey
Oil PSUs to invest over Rs 1.4 trillion in Andhra Pradesh by FY22: Dharmendra Pradhan
Major oil public sector units are planning to invest over Rs 1.43 lakh crore in Andhra Pradesh in coming years which would create jobs for thousands of people in the state, Oil Minister Dharmendra Pradhan said today. He said that the investment will start from 2017-18 and all the investment will be completed by 2021-22. Andhra Pradesh has immense hydrocarbon potential and it is going to become a major petroleum and petrochemical hub in the coming years, he said here at the CII Partnership Summit. “Our oil PSUs are partnering with Andhra Pradesh to build new synergies in the hydrocarbon sector. The oil PSUs have invested more than Rs 9,400 crore in the last two and a half years and have plans investments of more than Rs 1.43 lakh crore in the state in the coming years,” he said. The minister also said about USD 20 billion is being invested in KG basin by both public and private sector companies. “In the current scenario, KG basin is the most active area in the world … such huge investment is happening in deep sea projects. The ONGC’s investment of Rs 78,000 crore will generate 3,000 direct jobs and thousands of indirect job in Andhra Pradesh. This will also attract world standard companies like Schlumberger in the state. “They all will operate from the state,” he added. He said that GAIL and HPCL are jointly developing a petrochemical plant in Kakinada. Further he said India’s first strategic oil reserve storage facility is in Visakhapatnam, which has a storage capacity of 1.33 million tonnes. Similarly, to ensure long term gas supply, GAIL and Andhra Pradesh government are setting up an LNG terminal of 3.5 million tons at Kakinada at an investment of Rs 2,500 crore. The minister informed that he has also invited UAE investment in the petrochemical project in Kakinada and “they are positively considering this proposal”. He added that the world’s largest oil producer is looking for investment in the sector in the state for a holistic integrated project. BP is already in Andhra Pradesh, he said. “With all this investment and infrastructure development, Rajamundry Kakinada Visakhapatnam region will emerge as (a major hub)….We are also working with Andhra Pradesh for LPG connections to all the houses…the world will come here in the oil and gas sector,” Pradhan said. Su’a Cravens Jersey
Indian Oil Corp’s Paradip refinery faces withdrawal of fiscal sops
In a setback to Indian Oil Corp (IOC), the Odisha government has slapped a notice seeking withdrawal of fiscal incentives given to the PSU’s Rs 34,555 crore Paradip refinery in the state. In the December 29 notice, Odisha government has asked why the fiscal incentives like 11-year deferment of sales tax on petroleum products sold in the state should not be withdrawn considering that the refinery was delayed by over six years. Sources said the state government had in February 2004 signed an agreement with IOC to give fiscal incentives for setting up a 9 million tonnes a year oil refinery at Paradip by 2009-10. However, the project was delayed and started only in early 2016. The delay is now being cited by Odisha to seek withdrawal of the incentives, they said, adding the state government feels the delay has pushed back the payback time of deferred taxes by few years. Also, the state government says that the refinery was originally planned for a 9 million tonnes per annum capacity but the actual size commissioned was 15 million tonnes. Withdrawal of VAT deferment would mean an annual payout of about Rs 2,000 crore on 2 million tonnes of petroleum products sold in the state. Sources said IOC has replied to the showcause notice saying the size of the refinery should not matter as VAT deferment is limited to 2 million tonnes of products sold in the state. On delay in commissioning of the refinery, it says the Odisha government made clear its intentions of withdrawing the incentives in 2010 or 2011 itself to enable the company to redraw its plans. More importantly, even if the refinery was commissioned in 2009-10, the VAT deferment would have been in operation till 2020-21 and there is no case for it ending in 2016-17. The company says the state government will not suffer any revenue loss as it will pay back the taxes after 11 years albeit without interest on it. IOC says its board had approved investments only in 2009 and the withdrawal of the VAT concession will reduce by 2 per cent the rate of return it considered for working out the investment. Sources said the state government was of the opinion that the refinery no longer needs incentives as its profitability had increased due to a higher capacity and low global oil prices. IOC says Paradip refinery is yet to achieve profitability on a standalone basis and that its investment in higher capacity and downstream petrochemical plants will only lead to higher economic activity and employment in the state. The higher capacity was needed for setting up two petrochem units at an additional cost of Rs 7,250 crore. Originally, the foundation stone of the Paradip refinery was laid by the then Prime Minister Atal Bihari Vajpayee on May 24, 2000. Mason Cole Womens Jersey