'Gas4India'
campaign to boost natural gas use Sep 06, 2016 India’s oil minister courts investors in London September 13, 2016 H.E.L.P. to Boost Indian Exploration, Production Sector 9 15 2016 Petronet bets big on LNG as fuel to meet transportation needs 9 15 2016 Indian Oil bets big on growing demand for natural gas 9 16 2016 |
India
Modi Oil Quest Gives Services Firms A Lifeline; June 29
2016
India
Petronet targets to market 1.5 mt LNG via road July 01 2016
Petronet
LNG aims to spend up to $3 billion in the next five years to expand
overseas 11 July 2016 . |
ONGC
to explore India’s unconventional gas basins
http://files.chartindustries.com/15071661_LNGStorageRegas_CS3.pdf LNG supply for power plant and vehicle fuels Centre again offers 6 24 2016 |
INDIA
LNG and chemical factory 6 24 2016 |
This
is our opportunity in NW India Propane switch to LNG
6 4 2016
Government
of India Shale Gas Gail exploration partners India Oil emerging giant beckons US wildcatters who riled OPEC 6 2 2016 GAIL partners spuds first exploratory well in Cambay Basin 3 29 2016 India All Explorers Welcome in Untapped Oil Fields 6 2 2016 Production Sharing Contracts Signed for 13 Blocks Under NELP-IX Bidding Round India Fresh impetus to natural gas pipeline work 6 1 2016 Amec Foster Wheeler wins India LNG import, regasification terminal contract 6-6-2016 Reliance said to revive offshore gas project by end-2017 5 27 2016 India to Boost LNG for power generation and fertilizer production Andhra Pradesh government seeks more gas allocation from ONGC 12 20 2013 India gas pipeline EnnoreTamil Nadu to Nellore in Andhra Pradesh. Krishna Godvari Basin GE Oil & Gas for India's Vashishta 5 25 2016 GMR to invest Rs 471 cr to set up LNG terminal on east coast 5 23 2016 India LNG import capacity to double by 2022 June 14 2016 India Plans advance for grassroots mega refinery in India 5 20 2016 India eyes switch to LNG-fueled barges on the Ganges by end-2018 India shale gas and oil wells 4 26 2016 Essar Oil Emerges as India Largest Unconventional Gas Producer June 22, 2016 the first local coal bed methane (CBM) asset to produce 35.3 MMscf/d ArcelorMittal (MT) Gets Government Grant for LNG Project 5 16 2016 |
Indian Oil bets big on
growing demand for natural gas 9 16 2016 Sep 14, 2016, MUMBAI: State-run refiner Indian Oil Corp aims to be one of the top natural gas suppliers in India in the next five years as it bets on growing demand for transport and factories. The company is aiming to generate 15 percent of revenues from its gas supply and distribution business by 2021, Chairman B Ashok told Reuters on the sidelines of a news conference on Wednesday. He said the company has already committed Rs 180 billion to building gas distribution infrastructure across the country and has booked LNG regasification facilities. Currently the gas trading business contributes less than 5% to its revenues, added GK Satish, the company's director of planning and business development. Prime Minister Modi's government has plans to move India to becoming a gas-fuelled economy by boosting domestic production and buying cheap liquefied natural gas as the country seeks to cut its greenhouse emissions. This is expected to open up a huge demand for natural gas in the coming years. "We have made our plans depending on the projections of the next five to 10 years," Ashok said. Indian Oil, which is India's biggest refiner and marketer of petroleum products, has secured up to 13 million tonnes of LNG regasification capacity across a number of planned import terminals in India which includes its own 5 million-tonne terminal under construction in Ennore, Satish said. The company has also lined up supplies of LNG for a similar amount from the United States, Canada and Australia. Indian Oil marketed 1.929 million tonnes of natural gas during the 2015-2016 financial year, registering a 6.9% growth in sales over the previous year. Analysts are however cautious over the expansion plans as they say that fully matching sales with supplies could prove a challenge. "In the LNG business it is important to tie-up with customers so that there is an assurance that the volumes that the company has booked will be sold. In case there are no customers, Indian Oil could be stuck with a take-or-pay clause which can hit its margins," said Dhaval Joshi, analyst with brokerage Emkay Global Financial Services. |
Petronet bets big on
LNG as fuel to meet transportation needs 9 15 2016 Thursday, September 15, 2016 Petronet LNG Ltd is betting big on the usage of LNG as a fuelling option to meet India’s transportation requirements, Prabhat Singh, Managing Director & CEO, PLL, said. “We are awaiting a green signal from the government following a proposal to the Ministry of Road, Transport and Highways to use LNG as a fuel in vehicles along with other existing fuels,” he said. Cheaper fuel LNG, which is cheaper than compressed natural gas (CNG), is not an approved fuel for vehicles right now. However, its widespread usage will reduce the cost of road transportation as well as the country’s dependence on crude oil requirements, he told Business Line in a one-to-one interaction. India consumes about 195 million tonnes of crude-based oil products today and the figure is likely to go up to 230 million tonnes by 2022, resulting in more dependence on crude and additional foreign exchange spending. Given the low processing cost to convert LNG as fuel compared to other fuelling options, he said the differential savings in terms of energy equivalence would be $12 dollar per barrel compared to crude. “When we are graduating for a better fuel for the future, there will be savings in our foreign exchange kitty and increase in fuel quantity,” he said. To create awareness on the usage of natural gas for road transportation, he said PLL has approached Tata Motors to procure 100 trucks with LNG fuelling options to operate in the country. “We are exploring options to deploy some of these trucks initially in Kochi-Mangaluru stretch on a pilot basis by outsourcing it to fleet owners,” he said. The new government in Kerala is very positive on this move and has assured to hand over the required land at 3-4 locations to set up LNG filling stations and storage units. The Kerala Government is in the process introducing 1,000 buses to run on CNG fuel. “We have mooted a proposal to convert at least 100 buses to LNG fuel for inter-city movement,” Singh added. Need to improve infrastructure Considering the low capacity utilisation of natural gas in the country, Singh emphasised the need to improve the infrastructure like pipeline connectivity and re-gasification plants. Citing the case of lower capacity utilisation of Kochi LNG terminal costing the company an annual loss of approximately 350 crore, he said free flow of gas will ensure an uninterrupted fuel supply. Answering a question on the progress of the much delayed pipeline connectivity from Kochi terminal, Singh said that ILFS has bagged the contract for the spread I of 90 km in the Kochi-Koottanad-Bengaluru-Mangaluru project, which is expected to be completed in 24 months. Petronet has signed a MoU with the Inland Waterways Authority of India to set up LNG filling stations in three locations along the NW-1 for fuelling barges. Discussions are also on to covert diesel barges into natural gas and efforts are on for preparing a feasibility report to enable LNG bunkering for coastal shipping movements in the Indian peninsula. ABOUT PETRONET LNG Petronet Terminals Petronet LNG Limited, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 10 MMTPA [equivalent to 40 MMSCMD of natural gas], the Kochi terminal has a capacity of 5 MMTPA [equivalent to 20 MMSCMD of natural gas]. The company is in the process to build a third terminal at Gangavaram, Andhra Pradesh. Petronet LNG is at the forefront of India's all-out national drive to ensure the country's energy security in the years to come. Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. Our promoters are: GAIL (India) Limited . The public sector company GAIL is responsible for the transportation, distribution, processing and marketing of natural gas in India. Oil & Natural Gas Corporation Limited (ONGC). The public sector giant ONGC is spearheading India's aggressive hunt for crude oil, natural gas and other energy sources. Established in 1956 as the Oil and Natural Gas Commission, it was corporatized as Oil and Natural Gas Corporation Limited on February 1, 1994. Today ONGC, which is fast emerging as an integrated energy transnational, is responsible for the exploration, production and transportation of unprocessed hydrocarbons and accounts for more than 90% of India's oil and gas output (mostly in the Western Offshore Region). Indian Oil Corporation Limited (IOCL) Indian Oil Corporation Limited Public sector undertaking IOCL is India's largest commercial enterprise and has established itself as a regular both in the Fortune magazine's Global 500 listing of the world's largest corporations and Forbes magazine's International 500 list of largest companies outside the USA. Bharat Petroleum Corporation Limited (BPCL). Bharat Petroleum Limited, One of India's top national oil marketing companies (OMCs), BPCL was formed in 1976 through nationalisation of the the Burmah Shell Oil Storage & Distribution Company of India. With sales of 19.35 million tonnes and a market share of 21.43%, BPCL is today the second largest oil marketing company in the country. The authorized capital is Rs. 1,200 crore ($240 million). Vision Statement "To be a key energy provider to the nation by leveraging company’s unique position in the LNG value chain along with an international presence." Mission Statement Create and manage world class LNG infrastructure Pursue synergetic business growth opportunities Continue excellence in LNG business Maximize value creation for the stakeholders Maintain highest standards of business ethics and values |
H.E.L.P. to Boost Indian
Exploration, Production Sector 9 15 2016 Thursday, September 15, 2016 India is seeking technology, innovation and investments to invigorate its domestic exploration and production (E&P) sector, starting with Hydrocarbon Exploration and Licensing Policy (HELP) this year. Investors are likely to be small- to medium-size companies, start-up firms, Indian service companies and other industries looking to get into the oil business, Robinson added. “Investment and technology are the two buzzwords in [the] energy sector,” Minister for Petroleum and Natural Gas Dharmendra Pradhan said Sept. 9 at a roadshow in Singapore inviting bids for 67 discovered small fields (DSF) in India. “Why should India be left out of the innovation and technology era? We want to bring in more entrepreneurial ventures into the E&P sector.” “We strongly believe that [a] sustainable increase in the domestic production of oil and gas will not only counter the energy constraints that we face, but also make us self-sufficient in meeting our energy needs,” Pradhan said. Pradhan disclosed that several international firms have collected data packages for the DSFs for analyzing. The fields are grouped into 46 clusters: 26 onshore, 18 shallow water and 2 deepwater. He addressed industry concerns about small and uneconomic reserves in some of these fields by assuring investors that they would be allowed to aggregate such resources with exploration concession acquired under the Open Acreage Licensing Policy (OLAP). Under HELP terms, the Oct. 31 deadline for bid submissions is final and licenses will be awarded by Dec. 31. Production from the DSFs will be profitable at $45 per barrel, as benchmarked by calculating production costs. Existing oil and gas field infrastructure – owned by Oil and Natural Gas Corp. Ltd. (ONGC) and Oil India Ltd. (OIL) – will be made available for transporting hydrocarbon liquids to India at lowest toll charges, Pradhan assured investors. The 67 discoveries now owned by ONGC and OIL will be transferred to successful bidders by end of this year to accelerate production. HELP Offers Incentives According to the Minister, there is a paradigm shift with the introduction of HELP by the new government as compared to the previous New Exploration Licensing Policy (NELP) and he highlighted four main incentives for industry players: •Pricing and marketing freedom, which allows investors to sell hydrocarbon liquid from DSF independently •Only a single license is needed to continue exploration for conventional and unconventional resources; HELP allows investors to undertake exploration during the entire contract period within the leased acreage •No oil cess and exemption from customs duty for imports of machinery and materials for developing the fields •HELP levies low royalty of 7.5 percent for shallow water oil and gas; for deepwater production, it will be 5 percent after exemption for the first 7 years, while that for ultra-deepwater is pegged at 2 percent The exploration period will be extended from 7 to 8 years for onshore and shallow water blocks, while the timeframe for deepwater exploration will rise from 8 to 10 years. “We have simplified [the] E&P policy for deepwater, ultra-deepwater and high temperature and high pressure fields to increase domestic production. “I never quantify the investment for these fields. [But] I am expecting a huge capital investment in Indian hydrocarbon sector,” he said in response to reports that India needs $40 billion investment for the oil and gas sector. To boost investment, Pradhan has invited international investors including Saudi Aramco, Royal Dutch Shell plc, BP plc, Chevron Corp. and others, to participate in the development and industrializing of India’s energy sector. “We expect a sizeable investment. There is a kind of enthusiasm we have seen in these discovered small fields. A good number of companies have taken our data from out data rooms,” he said of the data centers set up at Noida in India, Calgary, Houston and London. Challenges Ahead While generating investors’ interests in India’s E&P sector remains a key priority, Pradhan acknowledged the challenge of operating in local basins, particularly those arising from inadequate data. “But we are now focusing on that National Data Repository,” he said, referring to ongoing efforts in building a data bank. “We are planning for 3D seismic service and appraisal of unappraised areas,” the Minister added. Supporting the minister’s latest initiatives, Vikram Mehta, executive chairman of Brookings India, highlighted the 100 percent Foreign Direct Investment being allowed in India’s E&P sector. “I believe the significant changes that have been made reflect a purposeful and determined leadership to create a competitive and business-friendly operating and commercial environment for E&P,” Mehta, a former Shell chairman in India, said. “What is markedly evident to me about the evolution of the current policy on DSF – there is a singularity and the alignment of purpose of the political, civilian and technical leadership to reinvigorate E&P and to enhance production of oil and gas in our country,” Mehta added. The tax/royalty regime under HELP is a big improvement on the previous NELP, as it largely removes the government from businesses and will avoid disputes over cost recovery issues, according to Kevin Robinson, vice president for Asia at Malaysia’s SapuraKencana Energy. “A biddable royalty system will mean that the market place will decide the government net take. This will help marginal projects get developed, while on better projects the government will get a higher net take due to competition,” he told Rigzone. “Market pricing on oil and gas will also help the industry, particularly for gas and may see smaller gas discoveries get developed. Subsidized gas pricing has held developments back over the last 10 years,” he explained. But HELP will mainly affect future exploration rounds, Robinson observed. “For the marginal discoveries many will be too small to be developed and will be uneconomic under any terms until prices recover,” he said. Investors are likely to be small- to medium-size companies, start-up firms, Indian service companies and other industries looking to get into the oil business, Robinson added. |
India’s oil minister
courts investors in London September 13, 2016 India’s oil and gas minister Dhamendra Pradhan is in London, hoping to find interested oil firms to invest in the country’s oil and gas sector through participation in the recently announced Discovered Small Fields Bidding Round – 2016. Speaking at the road-show in London on Monday, he said that the huge energy market in India provides unique opportunity to invest in Indian oil and gas sector. Pradhan said the 67 small undeveloped fields were discovered long back but could not be monetized mainly due to restrictions in government policies. Now, he said, progressive policies have been ushered in and private and foreign investments are being proactively facilitated. Small fields provide an investment opportunity in already discovered fields with no signature bonus, no requirement of prior technical experience and no mandatory work program. The new policy is based on revenue sharing contract model with the aim of simplifying th operating regime and making it more transparent. Sh. Pradhan said that Ministry of Petroleum & Natural Gas is looking at London and UK for bringing in not only investment but also innovation and new technology to improve oil and gas production from these fields. He assured the investors of all possible support. Since the launch of Bid Round on 25th May, 2016 in New Delhi, multiple interactive meets across India and various international locations – Houston, Calgary, Dubai and Singapore have been conducted for the Bid Round 2016. Indian Oil exec says targetting 10-15 pct revenues from natural gas in next 5 yrs Indian Oil Corp Wednesday, September 14, 2016 * Exec says have committed 180 billion rupees in setting up natural gas infrastructure * Exec says targetting 10-15 percent revenues from natural gas in next 5 years Further company coverage: (Reporting By Promit Mukherjee in MUMBAI) |
Dharmendra Pradhan launches
'Gas4India' campaign to boost natural gas use Sep 06, 2016 NEW DELHI: Petroleum Minister Dharmendra Pradhan on Tuesday launched the 'Gas4India' campaign that is aimed at promoting the use of natural gas in the country and said the country "will move towards a gas-based economy". "The country is moving towards a gas-based economy, and it is working to increase the share of gas in the country's energy basket from the present 6.5 per cent," he said. "Gas4India is a unified cross-country, multimedia, multi-event campaign to communicate the national, social, economic and ecological benefits of using natural gas as the fuel of choice to every citizen," the petroleum ministry said regarding the campaign. The campaign includes social engagement via Twitter, Facebook, Youtube, LinkedIn, and its official blogsite, as well as hyper local, offline events to directly connect with consumers through discussions, workshops and cultural even . Besides the move to enhance gas production, the government is promoting a nation-wide gas grid and setting up gas infrastructure," Pradhan said. He said that state-run gas utility GAILBSE -1.47 % has already finished the tendering process for a gas grid and actual process of laying pipelines will begin soon. The minister noted that three new liquefied natural gas (LNG) terminals are also coming up in the country. "India has entered into long term contracts and acquired assets abroad to ensure unhindered supply of gas at reasonable prices," he said. Earlier on Tuesday, Pradhan met here with senior officials and representatives from 20 major cities to discuss maters related to PNG, the ministry said. "The issues of road cutting fee, uniform tax for PNG and provisioning of PNG infrastructure for upcoming smart cities were discussed," the statement added. |
Greka to Drill Wells for Essar
Greka
to Drill Wells for Essar in West Bengal's Raniganj East CBM Block
2016 New Exploration Plans Essar Targets CBM In Eastern India 2014 Highlights Gujarat, India LNG diesel substitution Plans advance for grassroots mega refinery in India Krishna Godvari Basin JDR Bags Subsea Deal from GE Oil & Gas for India's Vashishta & S1 Project by Rigzone Staff Wednesday, May 25, 2016 The Vashishta & S1 fields are located in the Krishna Godvari Basin, 18.6 - 21.7 miles (30 - 35 kilometers) off the east coast of India, at water depths of 820 to 2,296 feet (250 to 700 meters). JDR Cable Systems Ltd., a UK-based supplier of subsea umbilicals and power cables to the offshore energy industry, indicated Tuesday that it has been awarded a contract by GE Oil & Gas for India's offshore Vashishta & S1 project operated by state-owned Oil and Natural Gas Corp. Ltd. (ONGC). Under the contract, JDR will engineer, design and manufacture 12 steel tube flying leads -- used to connect subsea trees to umbilical termination arrangements, manifolds and subsea distribution units -- and associated hardware, while its technical services team will provide design analysis for the project including flow and structural analyses and free spanning vortex induced vibration (VIV) analysis. “This contract highlights our world-leading expertise in the supply of specialist umbilicals and cables to the offshore energy industry. We are delighted to support GE and ONGC by providing the critical links to their subsea control system. This contract award is testament to our expert teams who are leading the charge in developing advanced and innovative technologies for the offshore energy sector,” JDR CEO David Currie said in the press release. |
Petronet LNG aims to spend
up to $3 billion in the next five years to expand overseas 11 July 2016
. India's biggest gas importer Petronet LNG aims to spend up to $3 billion in the next five years to expand overseas, setting up terminals in Bangladesh and Sri Lanka among other countries, its managing director said. Falling spot liquefied natural gas prices have boosted consumption of the fuel in India and triggered demand for LNG infrastructure in countries long shut out of the gas trade. "We are thinking global and we are not looking inwardly only at India ... we have potential and we should aim for 30 billion-40 billion rupees' ($445 million-$596 million) worth of projects every year for five years," Prabhat Singh told Reuters in an interview. Petronet has previously just focused on importing LNG for regasification at its plants at Dahej in Western Gujarat state and at Kochi in the southern state of Kerala. Singh said the company plans to invest 50 billion rupees to build a 5 million tonne a year terminal at Kutbdia in Bangladesh and company officials would visit Bangladesh on 23 July to take the proposal forward. "We are hopeful of a favourable response from them," he said. Last month Petronet also submitted a proposal for a 1-MMtpa floating LNG terminal in Sri Lanka, which wants a gas link for its 600-megawatt power plant, Singh said. That would require 13 billion rupees in investment, if approved by the Sri Lankan government. Rising Indian demand for LNG has prompted Petronet to operate its 10 MMtpa Dahej plant at 120% capacity, meaning it is regasifying and selling an additional 20% gas. However, its Kochi plant is operating at a fraction of its 5-MMtpa capacity as pipelines linking the terminal to industrial clients are not ready yet. India's current LNG consumption is about 58 million cubic metres a day, up from about 45 MMcmd last year, Singh said, and Petronet is on the lookout for overseas gas deals to meet rising Indian demand. Russia last month offered Petronet and other Indian companies a stake in the second phase of its Yamal LNG project. Singh said any deal with Russia would only be possible if the price of LNG from Yamal matches the spot market, which is flooded with cheaper supplies. "India is a buyers' market and we will need lots of gas, (but) the ... price needs to be to our satisfaction," he said. Last year India renegotiated a long-term deal with Qatar's RasGas to buy LNG at cheaper rates as local demand for the fuel was slowing. |
India Petronet targets
to market 1.5 mt LNG via road Friday, July 01, 2016 Petronet LNG, India's biggest importer of liquefied natural gas, targets to sell as much as 1.5 million tonne (mt) of the fuel annually by transporting it via trucks to customers not connected by pipelines, Prabhat Singh, managing director and CEO, told FE. The strategy behind this move is to replace liquid fuel use by the trucks and small scale industries. Petronet LNG, India’s biggest importer of liquefied natural gas, targets to sell as much as 1.5 million tonne (mt) of the fuel annually by transporting it via trucks to customers not connected by pipelines, Prabhat Singh, managing director and CEO, told FE. “Our target is that in the next three years, we want to create a market of 1.5 mt of LNG through this route (road). The trucks could load at any terminal,” said Singh, who served as director (marketing) of GAIL (India) prior to Petronet. The strategy behind this move is to replace liquid fuel use by the trucks and small scale industries. Currently, Petronet operates two terminals – 10 million tonnes per annum (mtpa) at Dahej in Gujarat and partly a 5 mtpa terminal at Kochi in Kerala. The Petronet CEO said that nearly 70 mt of diesel is consumed annually in India. Of this, about 20 mt is utilised by long distance heavy duty trucks. Pointing out that there is a huge arbitrage between the diesel and LNG price — atleast $5 including all taxes — an LNG market could be created to substitute diesel. “The country’s LNG demand could double just by replacing one liquid fuel. That is the capacity,” he explained. Petronet is in talks with Tata Motors to buy about 100 trucks, which the gas importer would outsource to fleet owners for operating them. “The market is huge,” said Singh, adding that his firm could cater to mere 1-2 mt. This means that other gas marketing firms such as GAIL and IOC too have a fair chance to share a pie once the concept of transporting LNG via roads is established in India. “We have spoken to regulators and work is going on a fast pace. These trucks will run on LNG. For 1 mt of LNG, there is a need for more than 30,000 trucks. If we cater to 10,000 trucks, we would be able to utilise 0.1 million tonne,” Singh explained. Inititally, Petronet would deploy the tucks in Kerala – Kochi to Mangalore. This is primarily because its five million tonnes per annum re-gassification terminal at Kochi remains under utilised at mere 5% capacity due to lack of evacuation route. Gradually, it would introduce the business model in routes from Mumbai to Delhi and Mundra to Ahmedabad. |
India Modi Oil Quest Gives
Services Firms A Lifeline Wednesday, June 29, 2016 rigzone.com India is offering global oilfield service providers starved of new contracts a $27 billion lifeline as the government’s ambition to cut fuel imports drives fresh investment. India’s hydrocarbon resources still remain highly undeveloped and the government’s new liberal approach is nudging companies to invest in tapping them. The measures are expected to boost gas output by 35 million standard cubic meters a day and unshackle projects worth 1.8 trillion rupees ($27 billion), Oil Minister Dharmendra Pradhan had said when the policy changes were announced. About 90 percent of the new spending would go to companies that provide services from drilling to testing and the laying of infrastructure. Spending plans are ratcheting up and stalled projects restarting after the government in March announced pricing freedom for natural gas from deepsea fields that begin production this year. Coming at a time when the cost of rigs and services has halved, that’s prompted India’s largest explorer Oil and Natural Gas Corp. to launch its biggest development campaign yet. Reliance Industries Ltd. is preparing to restart work at four offshore oil and gas blocks. The flurry of activity is providing some respite to services companies including Schlumberger Ltd., Technip SA and Halliburton Co. that were stung last year by more than $100 billion in slashed spending by explorers as oil collapsed. Investments in India are growing to meet Prime Minister Narendra Modi’s target of cutting import dependence by 10 percent over six years as increased consumption puts the nation on track to become the world’s third-largest oil consumer. “In India, there are two to three major identified projects and they are probably bigger than anything else going on in rest of the world,” Technip India’s Managing Director Bhaskar Patel said in an interview. “India is a place where there is work available.” Halliburton is positioned to participate in “the country’s ambitious plans to increase its domestic production,” the company said in an e-mailed response to questions. “India plays a crucial role for sustained development in the region for Halliburton.” The Indian government’s initiatives will increase the pace of exploration, ONGC Chairman Dinesh Kumar Sarraf said. ONGC will contract deepwater drill ships and dozens of jack-up rigs for a $5-billion development program in the Krishna-Godavari Basin, he said. The company intends to spend 11 trillion rupees by 2030 to raise output. Reliance has held meetings with oilfield-services companies to restart work at four offshore oil and gas blocks, including one of India’s biggest natural gas discoveries, people with knowledge of the plan said in May. It plans to drill 21 wells in four offshore areas, including the deepwater KG-D6 block in the Bay of Bengal, the people said. ONGC shares were up 0.5 percent to 211.15 rupees as of 9:32 a.m. in Mumbai on Tuesday, while Reliance gained 0.3 percent to 958.85 rupees. India’s exploration binge still won’t be enough to compensate for canceled projects around the world as oil prices settle below 50-a-barrel of crude from more than $100 two years ago. Worldwide, the oil and gas industry will cut $1 trillion from planned spending on exploration and development because of the price slump, consultant Wood Mackenzie Ltd. said this month. Investing during the current down-cycle ensures lower costs for explorers as well as future returns over four or five years once oil recovers, Technip India’s Patel said. Read more on planned spending in the oil and gas industry here. ONGC has reduced the cost of its Krishna-Godavari basin block by almost a third from earlier estimates of about $7 billion as prices slide for the contract rate for rigs and oilfield equipment and services. Offshore jack-up rigs, which used to cost $80,000 to $90,000 a day, are now available for less than $50,000, ONGC’s Sarraf said. “We could say there is 20 percent to 50 percent reduction in the cost of goods and services.” Despite the price competition, service providers are finding that an India strategy is critical given the scarcity of spending elsewhere. Finnish company Wartsila OYJ’s Indian unit sees opportunity here given the tough global environment. “In the exploration segments, if projects are coming up of course it’s an opportunity for us,” Kimmo Kohtamaki, president and managing director of Wartsila India, said. “We have matching products and no one else is investing. Everyone is laying off, it’s a tough market.” To contact the reporters on this story: Saket Sundria in Mumbai at ssundria@bloomberg.net; Dhwani Pandya in Mumbai at dpandya11@bloomberg.net; Debjit Chakraborty in New Delhi at dchakrabor10@bloomberg.net To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net Candice Zachariahs, Alpana Sarma |
INDIA LNG and chemical
factory 6 24 2016 India's Fertiliser and Chemicals Travancore Ltd (FACT) aims to boost output by two thirds to a million tonnes in 2016/17 after a sharp fall in liquefied natural gas (LNG) prices, its chairman said on Friday. NEW DELHI (Reuters) –Friday, June 24, 2016 Asian LNG prices have declined by 75 percent since 2014 because of falls in global oil prices, reducing the cost of the feedstock to produce ammonia for fertiliser production. FACT resumed LNG imports in April after a gap of more than a year, buying at $7.79 per million British thermal units (Btu), Chairman Jaiveer Srivastava said. "We never thought, nor even dreamt, that we would get LNG at this rate" Srivastava told Reuters. The company issued a tender on Friday seeking to import 10.39 trillion Btu of LNG equivalent in three cargoes over the year to August 2017. "We may get $5-$6/mBtu (price for LNG import)," Srivastava said. FACT's LNG purchases will also help India's top gas importer Petronet LNG to reduce losses at its Kochi terminal. "Last year capacity use at Kochi was about 2 percent. This year it could be 5-6 percent," said Petronet LNG's head of finance, R. K. Garg. |
LNG supply for power plant
and vehicle fuels Centre again offers 6 24 2016 Navhindtimes.com June 24, 2016 in Business NEW DELHI: CNG corridors across Delhi–Mathura–Agra- Lucknow–Bareilly, Delhi–Chandigarh, Delhi-Jaipur and Delhi– Haridwar would be operational shortly so that the vehicles can run long distances on CNG. As Delhi battles the tag of being one of the most polluted cities in the world, the Centre today renewed its offer to supply natural gas to the city’s stranded power plant to help switch from the polluting coal-generated electricity. Oil Minister Dharmendra Pradhan said his ministry had offered to supply natural gas to the Bawana power plant at a price of USD 7.5-8 per million British thermal unit, that will help generate power at less than Rs 5-6 per unit Delhi pays for getting electricity from the coal-based Badarpur power station. “I had written to the Delhi Chief Minister offering him to supply LNG. He wrote back to me but did not address the core issue (of taking gas),” he said. The minister further said, “If they shut (coal-based) Badarpur power station, it will help cut pollution equivalent to not plying cars for 17 years.” Delhi, he said, has a power demand of 6,500 to 7,000 MW. Decades-old Badarpur power plant supplies 350 MW. The 1,500 MW Bawana power plant in Delhi has been operating at less than a fifth of its capacity for the past four years. The plant was to be commissioned before the 2010 Commonwealth Games but was delayed by an year. “Even buying LNG from spot market would be more cost effective for Delhi,” he said. The slump in international energy prices has meant that liquefied natural gas (LNG) in international market is available at USD 5-6 per mmBtu. The price after including shipping cost, taxes and pipeline transportation comes to USd 7.5-8 per mmBtu. “LNG is available in abundance in the international market,” he said. Pradhan said the government was looking at extending use of CNG beyond cars and autos. Pilot for CNG-run two-wheelers was started today and efforts are on to promote its use in long-haul trucks, buses and railways. The Centre is committed to making available CNG across the country so that clean fuel is accessible at the doorstep, he said. He said that CNG corridors across Delhi–Mathura–Agra- Lucknow–Bareilly, Delhi–Chandigarh, Delhi-Jaipur and Delhi– Haridwar would be operational shortly so that the vehicles can run long distances on CNG. |
Essar Oil Emerges as India
Largest Unconventional Gas Producer June 22, 2016 by Chee Yew Cheang Rigzone Staff Wednesday, June 22, 2016 India's Essar Oil Ltd. emerged as the country's largest unconventional gas player as its Raniganj (East) Block in West Bengal crossed an important milestone when it became the first local coal bed methane (CBM) asset to produce 35.3 million standard cubic per day (MMscf/d) or 1 million standard cubic meters per day (MMscf/m). The company expected peak production from the Raniganj (East) Block to reach 105.9 MMscf/d (3 MMscf/d). According to the 2016 NSAI (Netherland Sewell & Associates, Inc.) report, the proven, probable and possible gross CBM reserves in the block is around 1.09 trillion cubic feet (Tcf), while contingent resources was estimated at around 270 billion cubic feet (Bcf). “We married talent with technology to transform reserves to production. In the last 12 months, the average well productivity has more than doubled, the gas break-out time in new wells has reduced to days instead of months, and the workover cycle has reduced to a fifth. Our collaborative relationship with international service providers has resulted in win-win solutions,” Essar Oil CEO for Exploration and Production Manish Maheshwari said in the press release. Essar Oil is supplying 5.29 MMscf/d (150,000 scm/d) of CBM gas to Matix Fertilisers for its pre-commissioning activities, while industrial consumers in the catchment area of Durgapur also received the fuel from the company. “There are tremendous opportunities in the domestic unconventional hydrocarbon sector. The Hydrocarbon Exploration Licensing Policy (HELP), which was announced by the Government in March 2016, recognizes this potential in contributing towards national energy security,” Maheshwari added. Essar Oil revealed that a U.S. Trade & Development Agency-supported study by an independent U.S. firm with expertise in shale has assessed that the original in-place shale gas resources in the Raniganj (East) Block is estimated at around 8 Tcf. In February, Essar Oil awarded Greka Drilling Ltd. a $8 million one year contract for the provision of drilling services for its Raniganj (East) Block. Greka deploys two semi-automated GD75 rigs for the drilling operations, which commenced May 8 and June 5, respectively. Excluding its Raniganj (East) Block, Essar Oil's CBM portfolio in India includes more than 1,042 square miles of acreage. The Indian government has been working to increase the country's energy supply, whether domestic and foreign, to meet rising consumption in the South Asian nation. India's energy demand reached 700.5 million tons of oil equivalent (MMtoe) last year, up 36 percent from 515.2 MMtoe in 2008, figures released recently by BP Statistical Review of World Energy 2016 indicated. |
India LNG import capacity
to double by 2022 Tuesday, June 14, 2016 gasprocessingnews.com According to information released by the ministry, the country’s LNG terminal capacity will likely rise to 47.5 MMtpy by 2022 from the current 21.3 MMtpy as existing terminals expand capacity and new facilities are commissioned. Demand for gas in India is expected to be driven by refineries, fertilizer and power plants. In 2015–2016. Natural gas consumption in the country rose barely 2% to 52 Bcmy, of which 40% was imported as LNG. However, with low global prices, consumption has soared, rising 14% in April, pushed by imports that rose 45%. LNG consumption in the power sector has increased from the 3 MMscmd during April to a maximum level of 11.47 MMscmd in March. There are four LNG terminals at Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in the state of Kerala. Capacity expansion of Dahej LNG terminal is expected from 10 MMtpy to 15 MMtpy by end of 2016. The ministry stated that a plan is in place to augment another 2.5-MMtpy capacity at Dahej. Work to develop a new LNG terminal of 5 MMtpy at Ennore in the southern Indian state of Tamil Nadu is in the advanced stages. In addition, two new R-LNG terminals of 5-MMtpy capacity each (at Dhamra and Kakinada on the east coast) are also planned. |
Ennore, Tamil Nadu India gas pipeline EnnoreTamil Nadu to Nellore in Andhra Pradesh. LNG import to be built in Ennore Piped gas could finally be within the reach of Chennai’s fuel-thirsty industries by the end of 2017, with a private firm winning a bid to build a pipeline connecting the city’s northern suburb of Ennore to Nellore in Andhra Pradesh. KEI-ROS Petroleum and Energy Private Limited, based in Andhra Pradesh, has won the mandate to build, own and operate for 25 years the 250-km pipeline via Krishnapatnam Port, a company representative confirmed through email on the condition of anonymity. This is the latest attempt to build a gas pipeline in the State after a few earlier ones ended in failure. One high-profile project that bit the dust was initiated by India’s biggest natural gas distributor GAIL India. Its plan — to run a pipeline from Kochi to Mangalore via Tamil Nadu — remained a non-starter with farmers in the State opposing the laying of pipes through agricultural land. Only 50 km of the pipeline to be built by KEI-ROS Petroleum will be in Tamil Nadu. Also, the company doesn’t foresee the need for agricultural land, as the plan is to run the pipeline close to the National Highway. The Rs. 650-crore project now needs clearance from the Union Ministry of Environment and Forests. The representative said the company expects groundwork to begin by June next year and the project to be commissioned by December 2017. Piped gas could benefit manufacturers of gas, ceramics, fertilizers, petrochemicals, tyres and automobiles, apart from helping CNG stations, refineries and foundries. These industries had earlier gone through the disappointments of seeing the GAIL project fail as well as seeing an alternative project — seeking to draw from Indian Oil Corporation’s LNG terminal at Ennore — getting excessively delayed. A Madras Fertilizer spokesman said: “We are living on borrowed time, as we have been asked to switch over to natural gas to produce urea. As southern States do not have access to the gas grid, it is a big question when that would happen as well as how long the Centre would provide us support by way of subsidy.” The spokesman further said, “This project would not only help us but would also lead to the next stage of providing piped gas to those living in Chennai City. LNG terminal Ennore, Tamil Nadu Amec Foster Wednesday, June 08, 2016 Amec Foster Wheeler secured a contract from Indian Oil LNG Private Ltd. Co. (IOLPL) for the liquefied natural gas (LNG) terminal in Ennore, Tamil Nadu, on the east coast of India, the company said Monday. The workscope for Amec Foster Wheeler include the supervision of works related to various engineering, procurement and construction contracts for the LNG regasification and marine import facilities, as well as the LNG storage tanks. In addition, the company will undertake project management consultancy work for the entire project, covering engineering development and construction phases through to pre-commissioning, commissioning and start-up of the terminal. The 42 month contract, which follows Amec Foster Wheeler's successful completion of a front end engineering and design (FEED) contract for theLNG terminal in 2012, is scheduled to be completed at the end 2018. "Following our successful completion of the FEED contract, delivering this next phase of this project reinforces our position as a leading provider of LNG services to the Indian domestic market," Roberto Penno, group president of Amec Foster Wheeler’s Asia Pacific, Middle East, Africa and Southern Europe business said in the press release. |
India to Boost LNG for
power generation and fertilizer production By Aiswarya Lakshmi June 07, 2016 marinelink.com India’s LNG sector is undergoing a major transformation as it is set to occupy a crucial part in the country’s energy portfolio after the federal government approved the use of imported gas for power generation and fertilizer production. The fertilizer and power sectors have been key consumers of the natural gas in the country, depending mostly on domestic output, while refineries and petrochemicals plants have relied more on imported gas. India plans to more than double its liquefied natural gas (LNG) import terminal capacity in six years to cater to the rising natgas demand from refineries, fertilizer and power plants, according to a report in the Economic Times. A total of 15.15m tonnes of LNG was delivered into Indian terminals in 2015, a 5% increase from 2014, according to ICIS data. India was one of the biggest importers of LNG in Asia buying approximately10.4 million tonnes in 2014. In 2015-16, the natural gas consumption in the country rose barely 2 per cent to 52 billion cubic meters, of which 40 per cent was imported as LNG. With LNG prices hovering around a benign $5/mBtu for several months coupled with drop in domestic production of natural gas, India’s gas imports have risen a steep 45.4% annually in April. Now, India's plans to set up new terminals and expand existing facilities will push up LNG terminal capacity to 47.5 million metric tonne per annum (mmtpa) by 2022 from the current 21.3 mmtpa, according to an oil ministry document. India and Qatar are expected to give a push to cooperation in the hydrocarbons sector, with the latter having the world’s third largest gas reserves and being India’s largest supplier of liquefied natural gas (LNG) during the visit of Prime Minister Narendra Modi. Currently, there are four LNG terminals at Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in Kerala. The recently-built Kochi terminal is barely functional due to the delay in the construction of pipeline planned to connect the terminal with the consumers. Total Qatari deliveries to India in 2015 stood at 9m tonnes, down from 11.9m tonnes from 2014. Qatar’s share in total Indian LNG supply was 59%, down from 82% in 2014. Qatar has gas reserves exceeding 900 trillion cubic feet (25 trillion cubic metres), or 14 per cent of global reserves. It is the largest LNG exporter in the world. |
Amec Foster Wheeler wins
India LNG import, regasification terminal contract 6/6/2016 LONDON worldoil.com Amec Foster Wheeler has been awarded a contract by Indian Oil LNG Private Ltd. Co. (IOLPL) for the liquefied natural gas terminal in Ennore, Tamil Nadu, on the east coast of India. This award follows the successful completion of a front end engineering and design contract for the terminal in 2012. As part of the new contract, Amec Foster Wheeler’s responsibilities include the supervision of works related to various engineering procurement and construction contracts for the LNG regasification and marine import facilities, as well as the LNG storage tanks. The company will also undertake project management consultancy activities for the entire project, from the engineering development and construction phases, through to pre-commissioning, commissioning and start-up of the terminal. This is a 42-month contract, which will be delivered at the end of 2018. |
ONGC to explore India unconventional gas basins India’s state-owned Oil & Natural Gas Corp. is seeking approval for 17 shale oil and gas exploration wells along the east and west coasts of the country, according to news agency Press Trust of India (PTI). Citing minutes of a recent meeting of the Expert Appraisal Committee (EAC) of Ministry of Environment and Forests, the operator ‘wants to invest $105 million in exploring the countries unconventional resource potential. According to PTI, ONGC sought permits on 11 wells in Cambay basin at Mehsana, Ahmedabad, and Bharuch districts of western Indian state of Gujarat, one well in Cauvery basin at Nagapattinam in the southern state of Tamil Nadu, and five wells in Krishna-Godovari basin in the East and West Godavari districts of Andhra Pradesh, a state on India’s east coast. If approved, this move woufd be largest push for shale exploration in the country but not the first. GAIL (India) Ltd. Spudded its first of eight exploratory wells in the Cambay basin in western India in March (OGJ Online, Mar. 29, 2016). Drilling began Mar. 27, and target depth of 2,500 m was expected to be reached by mid-May. The well was targeting Cambay shale and Olpad formations on NELP-IX Block CB-ONN-2010/11. In its 2013 assessment of global shale gas reserves, US Energy Information Agency estimates India has 96 tcf of technically recoverable shale gas reserves. Plans advance for grassroots mega refinery in India Public-sector refining firms Indian Oil Corp. Ltd. (lOG), Bharat Petroleum Corp. Ltd. (BPC), and Hindustan Petroleum Corp. Ltd. (HPC) are advancing a previously announced plan to jointly invest in construction of a grassroots 60 million-tonne/year integrated refining and petrochemical complex in India’s Maharashtra state (OGJ Online, Jan. 29, 2016). lOG, BPC, and HPC have enlisted fellow partner Engineers India Ltd. (EIL) to carry out a detailed feasibility study for the complex, with the site selection for the project already under way in consultation with the government of Maharashtra, India’s Minister of Petroleum and Natural Gas (MPNG) Shri Dharmendra Pradhan said in an Apr. 25 notice to the Lok Sabba, the lower house of India’s Parliament, The project partners plan to make decisions regarding equity structure and financing for the project once site selection and the detailed feasibility study have been completed, Pradhan said, Implementation for the proposed project likely would be 7 years following acquisition of a land site, Pradhan added, without disclosing a firm timeframe. To be built in two phases, the complex would produce gasoline, diesel. LPG, and jet fuel, as well as other feedstock for Maharashtra’s petrochemical industry. Phase 1 of the refinery would include a crude processing capacity of 40 million tpy, with an additional 20 million tpy of capacity to be commissioned following completion of Phase 2. |
ONGC to explore India’s
unconventional gas basins India’s state-owned Oil & Natural Gas Corp. is seeking approval for 17 shale oil and gas exploration wells along the east and west coasts of the country, according to news agency Press Trust of India (PTI). Citing minutes of a recent meeting of the Expert Appraisal Committee (EAC) of Ministry of Environment and Forests, the operator ‘wants to invest $105 million in exploring the countries unconventional resource potential. According to PTI, ONGC sought permits on 11 wells in Cambay basin at Mehsana, Ahmedabad, and Bharuch districts of western Indian state of Gujarat, one well in Cauvery basin at Nagapattinam in the southern state of Tamil Nadu, and five wells in Krishna-Godovari basin in the East and West Godavari districts of Andhra Pradesh, a state on India’s east coast. If approved, this move woufd be largest push for shale exploration in the country but not the first. GAIL (India) Ltd. Spudded its first of eight exploratory wells in the Cambay basin in western India in March (OGJ Online, Mar. 29, 2016). Drilling began Mar. 27, and target depth of 2,500 m was expected to be reached by mid-May. The well was targeting Cambay shale and Olpad formations on NELP-IX Block CB-ONN-2010/11. In its 2013 assessment of global shale gas reserves, US Energy Information Agency estimates India has 96 tcf of technically recoverable shale gas reserves. |
Greka
to Drill Wells for Essar in West Bengal's Raniganj East CBM Block
2016 Essar Energy is a world-class, low-cost, integrated energy company focused on India and positioned to capitalize on India’s rapidly growing energy demand; assets worth US$12 billion across the power and oil and gas industries Essar Energy's operations straddle the global power, and oil and gas industries with existing operations and projects under development in both. The company is one of India's largest private power producers with over 14-year operating track record. Its power business currently has seven operational power plants in India and one in Algoma, Canada, with a total installed generation capacity of 3,910 MW. In the oil and gas sector, the company has 15 blocks and fields for the exploration and production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam. Total reserves and resources across these blocks is 2,034 mmboe. Essar Energy's refining and marketing business primarily consists of the Vadinar Refinery in Gujarat. India’s second-largest refinery, and the Stanlow refinery, UK’s second largest refinery. Essar Energy serves retail customers in India through a modern, countrywide network of 2,000 operational and under-construction retail fuel outlets. In India, the company operates its oil and gas business through Essar Oil, which is listed on the Bombay Stock Exchange and the National Stock Exchange of India. Essar Oil is amongst India’s top 10 companies by revenue. |
New
Exploration Plans Essar Targets CBM In Eastern India 2014 |
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