World Bank Group to provide $517 mln for Ghana oil and gas project
The World Bank Group said on Thursday it would provide $517 million to Ghana in debt and guarantees to support the $7.7 billion Sankofa oil and gas project being developed by Italy’s ENI and upstream trader Vitol Ghana. The finance adds to a $700 million guarantee package and brings its total financing to around $1.217 billion for the offshore project, whose gas component is set to open in 2018, a statement said. The Bank’s investment arm, the International Finance Corporation (IFC), has committed a loan of $235 million to Vitol Ghana and is arranging another $65 million in debt. Guarantees by the Multilateral Investment Guarantee Agency, another Bank institution, will support Vitol Ghana’s commercial borrowing needs for the project and will be issued for up to 15 years. “Sankofa is expected to generate $2.3 billion in revenues for Ghana’s government per year and provide a stable, long-term source of domestic gas that will solve Ghana’s chronic gas supply constraints,” an IFC statement said. ENI holds a 44.4 percent stake in Sankofa, Vitol holds 35.6 percent while Ghana National Petroleum Corporation holds a combined carried and participating interest of 20 percent. Ghana first began pumping oil in 2010 at the offshore Jubilee field operated by Tullow, a British company that this August opened a second field called TEN. Sankofa is expected to generate about 1,000 megawatts of power to Ghana and combined with gas from two other new fields could eliminate the need for Ghana to import gas from Nigeria through the West African Gas Pipeline Company. Minkah Fitzpatrick Authentic Jersey
Gajendra Singh to be Gail marketing director
The country’s biggest gas utility, Gail, is set to get a new director (marketing) in Gajendra Singh at a time when the government is pushing to create a gas-based economy. Singh, who is executive director in Gail at present, has been chosen by the Public Enterprises Selection Board from among 10 candidates short-listed for interviews for the post. A software engineer, Singh started his career with ONGC in 1985 and joined Gail in 1986 when the gas industry was at its nascent stage. Since then, Singh has been involved in the execution of prestigious projects of GAIL including the country’s first arterial gas pipeline — Hazira-Viajipur-Jagdihpur line. His current responsibility entails expanding gas market and ensure capacity utilisation of Gail’s pipeline network. As a director on the company’s board, once his appointment is cleared by the pertinent Cabinet panel, his scope of work would expand to include driving future growth in gas use in line with the government’s aim of creating a gas-based economy. Julien Gauthier Jersey
VVIP airport to chronicle aviation history
The high-security Safdarjung Airport may be made partially open to public, with the Centre deciding to build an integrated headquarters for several aviation agencies next to its iconic central dome. The airport is currently used only for VVIP choppers and small government aircraft. “A five-storey building will be constructed as the combined headquarters for Directorate General of Civil Aviation, Bureau of Civil Aviation Security, Airports Economic Regulatory Authority of India and Aircraft Accident Investigation Bureau. Some space has also been allocated to the Airports Authority of India,” said AAI chairman Guruprasad Mohapatra. On the ground floor of the headquarters, an exhibition hall will be built. It will display art works from Air India’s (AI)collection and rare photographs by AAI chronicling the evolution of airports in India. This section is likely to be thrown open to public in the next three years. “People can take a look at paintings and photographs from the AI and AAI collection respectively,” Mohapatra said. Sean Taylor Authentic Jersey
California governor seeks permanent ban on offshore drilling
Obama last month released a plan that bans any new oil drilling off the coasts of California. California Gov. Jerry Brown on Tuesday asked President Barack Obama to permanently ban new offshore oil and gas drilling in the state before he leaves office. If Obama agrees, the edict would set up a potential showdown with the incoming administration of Donald Trump. Brown said he didn’t know if Trump would have the authority to overturn a permanent prohibition. “California is blessed with hundreds of miles of spectacular coastline, home to scenic state parks, beautiful beaches, abundant wildlife and thriving communities,” Brown wrote to Obama. “Clearly, large new oil and gas reserves would be inconsistent with our overriding imperative to reduce reliance on fossil fuels and combat the devastating impacts of climate change.” Working to lock in environmental protections as the clock runs out on his presidency, Obama last month released a plan that bans any new oil drilling off the coasts of California, Oregon or Washington state until 2022. The White House declined to comment on Brown’s request to make the ban permanent. Brown said he would invite fellow Democratic governors of Oregon and Washington to join the effort, which he announced at an event to launch a new organization to protect oceans. Those states also joined the International Alliance to Combat Ocean Acidification, which includes the governments of France, Chile, the Canadian provinces of British Columbia and Quebec, businesses and advocacy groups. Many Democrats in California’s congressional delegation, including Sens. Dianne Feinstein and Barbara Boxer, have urged Obama to use executive authority to permanently block oil and gas leasing on the West Coast. In 2014, Brown asked for a ban on Pacific offshore drilling through 2022, but climate activists have pushed him to ask for a permanent ban. Skyli McAfee, national oceans director for the environmental advocacy group The Nature Conservancy, said she was “extremely pleased at how seriously (Brown) is taking the issue and his reliance on the academic community.” An oil industry group, the Western States Petroleum Association, called Brown’s effort unrealistic, and said it ignores the state’s energy needs. “If offshore production is banned it will force us to import more oil from foreign sources,” the association said in a statement. “That oil is produced under less stringent environmental regulations, and its transportation to California will create an increase in greenhouse gases and other pollutants.” The group added that offshore drilling has been done safely and responsibly for decades. Brown later joined the Western Governors Association’s winter meeting, where he warned against expectations of major policy changes happening quickly under Trump. He said Congress and the judiciary serve as checks on the president and that differences tend to narrow over time. “If the world ends, we’re in deep trouble, but that hasn’t happened yet,” Brown said at a news conference, responding to a question about the consequences of overturning the Affordable Care Act. Colorado Gov. John Hickenlooper, a Democrat, said he didn’t expect significant changes under Trump toward states like his that have legalized recreational use of marijuana. Hickenlooper said Democrats may find themselves in the unusual position of advocating for states’ rights in a Trump administration, a stance more commonly associated with Republicans. Idaho Gov. Butch Otter, a Republican, wrapped his arm around Hickenlooper and said, “Welcome to the party.” Willie Brown Authentic Jersey
Iran ultimatum on gasfield
ONGC Videsh Ltd’s (OVL) prospects to develop the Farzad B gasfield in Iran, which is estimated to hold 18.75 trillion cubic feet (tcf) of in-place reserves, appear to be slipping away with Tehran warning to call global bids after March. Senior officials of OVL recently visited the Islamic nation to discuss the development plan for the field and the gas price formula keeping in view the global price scenario, sources said. However, they said Iran was not satisfied with the OVL-led consortium’s proposal and had given time till March-end to come up with a fresh offer. Iran has said it can call a global bidding if it finds OVL’s proposal unsatisfactory even then. OVL officials are expected to visit Tehran in the next two weeks to discuss Iran’s concerns and come up with an alternative plan. Analysts said this was not the first time that Iran had warned of calling global bids for the field. However, with several global players keen to exploit oil and gasfields in the Islamic nation following the lifting of sanctions, Tehran may be more inclined towards a better deal rather than sticking it out with India for maintaining trade ties during the hard times. Iran is reportedly unhappy with the $10-billion plan submitted by OVL to develop 12.5 tcf reserves in the Farzad-B field and an accompanying plant to liquefy the gas for transportation in ships. It maintains that the $5-billion cost that OVL and its partners has quoted to develop the field is on the higher side and wants it to be reduced. OVL will earn a fixed rate of return and gets to recover all the investment it has made in the field. India, however, feels that Iran is not correct in comparing the Farzad-B field with the South Pars field. The former is more complex and has a high sulphur content, which adds to the production and handling costs. The consortium had spent $900 million in the Farzad-B field to study the block following a 2002 preliminary pact with the Iranian authorities. The two sides did not sign any formal contract to exploit the resources till date because of the US sanctions. A consortium of ONGC Videsh Ltd, Oil India and Indian Oil Corporation had discovered gas in the block in 2008. OVL and IOC hold 40 per cent interest each in the block, while the remaining 20 per cent is with Oil India. Bruce Smith Jersey
CNG buses cheaper, efficient & last longer, insists Gail Gas
Rebuts BMTC’s argument that eco-friendly vehicles cost more Gail Gas Ltd has issued a point-by-point rebuttal of the objections raised by the BMTC before the state government on inducting CNG buses in its fleet. Two public sector undertakings — Bangalore Metropolitan Transport Corporation (BMTC) and Gail Gas Ltd — are locked in a dispute over running Compressed Natural Gas (CNG) buses in the city. Gail Gas Ltd has issued a point-by-point rebuttal of the objections raised by the BMTC before the state government on inducting CNG buses in its fleet. The effective running cost of CNG buses is about 20% lower than that of diesel buses, Gail Gas, which is a subsidiary of Gas Authority of India (Gail), stated in its recent power-point presentation to the Infrastructure Development Department. In a detailed proposal, the BMTC maintained that the operating and maintenance costs of CNG buses are higher than those of diesel buses, and listed several challenges in running them. The BMTC’s arguments shocked Gail Gas which has already set up CNG filling stations in Bengaluru. It is banking on the BMTC to make profit. It has won the contract to supply CNG and Piped Natural Gas (PNG) to Bengaluru Urban and Rural districts. According to Gail Gas, the BMTC calculated the operating cost by considering the CNG price at Rs 50 per kg, but the actual price is Rs 42.50. It questioned the data obtained by the BMTC from Brihanmumbai Electric Supply and Transport (BEST) and the Association of State Road Transport Undertakings. The BMTC quoted BEST as saying that the operating cost of CNG vehicles is higher in the longer run. BEST, which has a fleet of 2,970 CNG buses, also informed the BMTC that the mileage of its CNG buses is 2.64 kmpkg on average. Gail Gas has disputed this claim, saying BEST’s fleet includes many retrofitted buses (CNG engines fitted to normal buses) and that’s why their mileage is poor. It has asked Karnataka to consider the data of Pune Mahanagar Privahan Mahamandal Ltd (PMPML) where the average mileage is 3.75 kmpkg. The PMPML has been operating 574 new CNG buses, Gail Gas said. Though the capital and maintenance costs of CNG buses are higher than those of diesel buses, the additional cost can be recovered within one-and-a-half-years (250 km per day and 330 days per year), Gail Gas stated. Gail Gas general manager (projects) Partha Jana said the company had clarified all issues raised by the BMTC. CNG buses are not only cost-effective but also environment-friendly. Various reports have proved that the emission levels of Bharat Stage IV CNG buses are close to Euro IV levels. The company hopes the government will agree to run CNG buses, he added. Wesley Woodyard Womens Jersey
BP to partner Reliance to open petrol pumps
Oil major BP plans to open petrol pumps in the country in a joint venture with Reliance Industries and bring in innovative strategies to capture the market dominated by state-owned companies. “We are partners and are looking at all possible options. We have been discussing the retail foray,” sources said. BP is RIL’s partner in its exploration, production and gas-sourcing businesses. In February 2011, London-based BP had bought a 30 per cent stake in 21 oil and gas production-sharing contracts operated by RIL for $7.2 billion. RIL and BP are also partners in India Gas Solutions, an equal joint venture for sourcing and marketing gas in the country. Besides, BP sells automotive and industrial lubricant brand Castrol in India. In January this year, BP got in-principle approval to sell aviation turbine fuel in India. The global giant has also got in-principle approval and licence to set up 3,500 fuel outlets. RIL holds licences to set up 5,000 fuel outlets. So far, it has set up about 1,500 filling stations, of which over 1,000 are operational. Industry sources said several marketing options were being considered to capture the fuel retail market. Apart from dynamic pricing, the company is looking at the option of setting up motels, convenience stores and café with WiFis. Also, to cater to commercial goods transporters and truckers, highway pumps will have resting and eating places and vehicle servicing outlets. Within the city, there are plans to introduce dynamic pricing, which means the cost of a product could be flexible. Analysts said the entry of new players in fuel retailing will soon cause a price war at petrol pumps, benefiting consumers of petrol and diesel in line with the prevailing international practice. Arbitration drill The government is considering joining the arbitration initiated by RIL and its partners against a $1.55-billion demand raised on Reliance for “unfairly enriching” itself by producing natural gas belonging to ONGC. “We have received the notice and are studying it. We will take an opinion of the law ministry on joining the arbitration,” a senior oil ministry official said. Bobby Hart Authentic Jersey
Swan Energy gets nod for Rs 56 billion floating LNG terminal
Nikhil Merchant-led Swan Energy today said it has received approval from the Gujarat Maritime Board (GMB) for construction of a Rs 56 billion floating LNG terminal off the Gujarat coast. “Swan Energy Ltd, through its 100 per cent subsidiary company Swan LNG Pvt Ltd (SLPL), has received approval from Gujarat Maritime Board (GMB) for commencement of construction of LNG terminal with ancillary structures for its floating storage and re-gasification unit (FSRU) project at Jafrabad, Gujarat,” the company said in a regulatory filing. Oil and Natural Gas Corp (ONGC), IOC and Bharat Petroleum Corp Ltd (BPCL) have agreed to take one million tonnes per annum capacity each on the 5 million tonnes a year floating LNG terminal. Swan Energy, which is building the project in joint venture with Exmar of Belgium, is targeting 2019 for commissioning of the one jetty-moored FSRU at Jafrabad. It plans to expand the capacity to 10 million tonnes through the deployment of a second FSRU. Merchant’s Swan Energy Ltd holds 51 per cent stake in Swan LNG Pvt Ltd – the company building the Jafrabad terminal. Exmar Marine holds 38 per cent and the remaining 11 per cent is with Gujarat State Petroleum Corporation (GSPC). Exmar is known as a pioneer in floating regasification solutions for having introduced world’s first FSRU in 2005. “SLPL has executed an EPC contract for marine and dredging work worth Rs 21.15 billion with National Marine & Infrastructure India Pvt Ltd for carrying out the construction of LNG terminal at Jafrabad, Gujarat, to be completed within 3 years. NMIPL has already started the construction works,” it said. The company had last year secured all necessary permits for the project and the state-owned firms agreed to hire 60 per cent capacity of the terminal on tolling basis for importing their own gas will help Swan take the final investment decision and tie-up project financing. ONGC and IOC own 12.5 per cent stake each in Petronet LNG Ltd, which owns and operates a 10 million tonnes a year liquefied natural gas (LNG) import terminal at Dahej in Gujarat. This terminal is being expanded to 15 million tonnes by next month. While Petronet expanded the Dahej terminal on premise of leasing out the capacity third parties, the company also has a 5 million tonnes a year LNG import facility at Kochi. GSPC is building its own LNG terminal in joint venture with Adani Group at Mundra in Gujarat by 2017. Also on the west coast is an under-utilised 5 million tonnes Dabhol LNG import terminal, operated by state gas utility GAIL India Ltd. Antoine Roussel Jersey
Top Indian Gas Utility Pushes Gazprom for LNG Price Cut
India’s biggest gas utility is seeking a price cut and other changes to a 20-year liquefied natural gas supply contract from Gazprom PJSC, the latest in a series of concessions sought by buyers amid a global gas glut. GAIL India Ltd. is pushing to overhaul the 2.5 million ton a year contract with the Russian gas giant that starts in 2018, B.C. Tripathi, chairman of the Indian state-run company, said in an interview in New Delhi. The company also plans to charter four to five LNG vessels on short-term contract as it prepares to receive U.S. LNG supplies. “It’s not only duration, it’s the price, source of supply, the terms and conditions,” Tripathi said of the supply contract Dec. 6. “There are a host of contractual issues — all these are being re-looked into.” While there are talks on “adapting the contract terms,” the deal signed in 2012 is in place and legally binding, the press service for Gazprom’s export arm said in response to a request seeking comment. No other details were provided. Its deputy head Alexander Medvedev said in July that Gazprom was in talks on the contract with GAIL and was positive over the result without elaborating. India is seeking to take advantage of the glut that has pushed prices down almost 60 percent the past three years, by renegotiating long-term contracts. Last year the country’s biggest gas importer, Petronet LNG Ltd., reworked a 25-year contract with Qatar’s RasGas Co. that resulted in prices dropping by almost half. GAIL is currently buying about 2 million tons a year of LNG on a spot basis, comprising about a fifth of its overall purchases, Tripathi said. The supply contract with Gazprom was signed in 2012. “We are seeing a change in LNG contracting mechanism, with short-term contracts growing and replacing long-term contracts,” India’s Oil Minister Dharmendra Pradhan said Dec. 6. GAIL, which was the first Asian importer of U.S. shale gas, has bought four cargoes in the spot market from Cheniere Energy Inc.’s Sabine Pass plant. The company has an agreement to buy 3.5 million tons a year for two decades from the Louisiana terminal, with the supplies expected to start in March 2018. It has also booked 2.3 million tons a year from the Cove Point LNG liquefaction terminal in Maryland, which is set to commence deliveries in December 2017. Spot LNG in Singapore increased about 16 percent from a week earlier to $8.55 per million British thermal units on Monday. LNG Freedom While U.S. LNG exports are still relatively small, they are having an impact because the contracts are tied to U.S. natural gas prices instead of crude oil that much of the LNG coming to Asia is linked to. They also allow for switching of cargo destinations — a key concern for importers seeking greater flexibility. GAIL plans to issue a tender for a short-term charter to ferry U.S. shale gas after it scrapped an earlier tender to lease nine carriers, including three to be built in India, on a long-term basis. India wants to turn the global glut of LNG to its favor as it seeks to boost the amount of natural gas in its energy mix to 15 percent by 2020 from about 6.5 percent now. “Buyers will continue to have options,” Pradhan said. Emmanuel Ogbah Authentic Jersey
Indonesia’s Pertamina may sign deal with Iran for 2017 LPG imports
State energy company Pertamina may sign a deal to import Iranian liquefied petroleum gas (LPG) in 2017 when Indonesia’s president visits the country this week, company officials said on Tuesday. The LPG imports may total up to 528,000 tonnes during next year, the officials said. “It is highly likely we will import again from the National Iranian Oil Company,” Pertamina spokeswoman Wianda Pusponegoro told reporters, adding that Pertamina planned to import up to 12 cargoes, each of which contains 44,000 tonnes of gas, in 2017. A deal could be signed this week during Indonesian President Joko Widodo’s trip to Iran, she said. The planned purchases are part of 600,000 tonnes of LPG that Pertamina tentatively agreed to purchase in May from state-owned National Iranian Oil Co (NIOC) this year and in 2017. Pertamina is also considering buying stakes in two oil and gas blocks in Iran and had met and discussed the matter with Iran’s oil minister during the recent Organization of the Petroleum Exporting Countries meeting in Vienna, Pusponegoro said. “We hope they can agree on Pertamina’s proposal,” she said, noting that Iran was still studying the matter and that Pertamina aims to complete a deal at the beginning of 2017. “Our target is for at least 30,000 barrels of oil equivalent per day.” Separately, Pertamina’s deputy chief executive, Ahmad Bambang, told reporters that the company is also hoping to expand its footprint in Algeria. “In the short term we want to strengthen our position in Algeria with a purchase from Repsol, but this is still being discussed,” Bambang said. Spanish energy company Repsol wants to sell its 35 percent participating interest in the MLN field, where Pertamina currently holds the remaining 65 percent stake, he said. “(Repsol) want to sell everything. We are negotiating.” Christian Arroyo Womens Jersey