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'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        
Cairn Energy Completes Second Indian DrillingTest
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
Cairn Energy Completes Second Indian DrillingTest


 
Greka to Drill Wells for Essar in West Bengal's Raniganj East CBM Block 2016
Thursday, April 21, 2016

Greka Drilling Limited, the largest independent and specialized unconventional oil and gas driller in Asia, provided Wednesday an update on the contract to provide drilling services to Essar Oil Limited (Essar) in India. The award of this contract was announced by the Company on Feb. 15.
 
 Essar has issued the mobilization order in accordance to the contract and pursuant to which the Company has initiated mobilization of two drilling rigs. Greka Drilling expects to commence drilling operations in May. Essar is the largest producer of coal bed methane (CBM) in India, principally from the Raniganj East Block in West Bengal, which is the contract area for Greka Drilling.
 
 Randeep S. Grewal, Chairman and CEO of Greka Drilling, commented:

“We are delighted that we are again commencing work for Essar in the development of the Raniganj block. Greka Drilling’s high quality semi-automated GD75 rigs, that are already situated within country, will drill both vertical and directional wells on a day-rate basis (rather than a meters drilled basis). The Company is also in discussions with other CBM developers in India with a view to assisting them in monetizing their gas resources and it is positive to see that the Government of India remains committed to the development of CBM as a major source of domestic clean energy. We are at the forefront of CBM industry discussions in India and the remobilization of our drilling rigs for Essar is testament to that.”

Essar Oil Ltd. is focusing on exploration and development of coalbed methane (CBM) assets in eastern India. The company has lined up a plan to drill 650 development wells to accelerate CBM production in the Raniganj East Block (RG East-CBM-2001/1) in Damodar Valley and more than 500 exploration wells in four other blocks—Rajmahal (Jharkhand state), Sohagpur Northeast (Madhya Pradesh), Talcher and Ib Valley (Odisha).

“Of the planned 650 wells in Raniganj, around 200 wells have been drilled. A new contract for [an] additional 100 wells [has been] awarded,” an Essar Oil spokesperson said.

The Indian company early this month awarded Greka Drilling Ltd. a contract to drill 100 wells in Raniganj East Block in next 12 months. Five GD75 rigs are being mobilized to drill the planned wells. The block, which covers 500 sq km (193 sq miles) in districts of Burdwan, Bankura and Birbhum in West Bengal, is estimated to have CBM reserves of about 28 Bcm (1 Tcf). The wells drilled so far are producing 220,000 scm/d (8.8 MMcf/d) of gas.

Raniganj Development Plan

In addition to drilling 650 development and production wells, the development plan for the Raniganj Block involves construction of eight group gathering stations (GGS) and one main compressor station (MCS) and laying of interconnecting and transportation pipeline network for  gas production, collection and transportation and sale.

According to the plan, the wells would be drilled the target depth of up to 2,000 m (6,562 ft) in the identified areas of the Raniganj Block. The development cumulative production wells are to be drilled in clusters with each cluster comprising of 50 to 60 wells. They would target depth with a combination of low-capacity rigs for the surface section and higher-capacity rigs for the coal-bearing section.

The GGS have a planned capacity of .45 MMscm/d (16 MMcf/d) each, with the compressor station having a planned capacity 3 MMscm/d. Each GGS will be linked to the cluster of wells. The interconnecting and transportation pipeline network, with a diameter ranging from 4 in. to 18 in., will be laid down to evacuate the extracted CBM. The CBM generated during dewatering of coal seams will be separated from produced water and routed through pipelines to the GGS. Total estimated production of CBM from the proposed project is at 5 MMcm/d (177 MMcf/d). Each well is estimated to generate a peak production of 15,000 cm/d (530 Mcf/d).

Essar had drilled 12 core holes, 15 test wells and 58 pilot cumulative-production wells in the Raniganj East Block during the two phases of exploration to assess its potential methane reserves and prospects for their development. 

The data collected from the exploration wells revealed that the Raniganj East Block has estimated total CBM reserves of 28 Bcm (993 Bcf). Global consultant Netherland, Sewell and Associates Inc. estimated that the Raniganj East Block has 2C contingent resources of 5.6 Bcm (201 Bcf) and best estimate prospective resources of 22 Bcm (792 Bcf).

A large part of the coal seams in the block are located at depths of 1,000 m (3,281 ft) to 1,700 m (5,577 ft). The Raniganj Basin is floored by Precambrian metamorphic rock and filled with Permian through recent sediments. The Upper Permian Raniganj Formation is above the Ironstone Shale and is composed of a succession of coal seams, carbonaceous shale and shale alternating with bands of medium- and coarse-grained sandstone.

The Raniganj Formation is the target for CBM production in the Raniganj East Block.

New Exploration Plans Essar Targets CBM In Eastern India 2014
By Ravi Prasad, Special to Hart Energy  Monday, September 22, 2014

Essar Oil is also working on plans to launch exploration works in the Rajmahal (RM-CBM-2005/III), Sohagpur Northeast (SP (NE)-CBM-2008/IV), Talcher (TL-CBM-2008/IV) and Ib Valley (IB-CBM-2008/IV) blocks.

The official said that Essar has taken up a plan to drill 133 exploratory wells in Rajmahal Block, which is 150 km (93 miles) away from Raniganj Block. As part of the Phase I program, it would undertake drilling of 30 core holes and three test wells in the CBM block area. In Phase II, the company plans to drill 20 pilot wells to a target depth of about 2,000 m (6,562 ft) within the block area to assess the commercially exploitable CBM reserves. The pilot wells will be drilled vertically in clusters with a gas-gathering facility provided for each cluster. In addition, four supporting wells will be drilled at each pilot well site to augment the production, depending on the strata formation and the land availability.

The Rajmahal Block, which covers 1,128 sq km (436 sq miles), is estimated to hold prospective resources of 133 Bcm (4.7 Tcf), according to a study prepared by Advanced Resources Inc. (ARI). There are eight to 10 coal seams at a depth ranging from 600 m (1,969 ft) to 1,000 m (3,281 ft). The coal has moderate permeability and a gas content of 3 cm (106 cf) per ton.

The Rajmahal coals below a cover of more than 300 m (984 ft) may become gas saturated and methane, according to the study. A coalseam gas block located to the east of allotted CSG block RM-CBM-2005/III has been designated in the trap covered areas.

Another plan involves drilling 153 exploratory wells in the Sohagpur Block (SP (NE)-CBM-2008/IV) in Madhya Pradesh. Phase 1 includes drilling 25 core holes and three test wells area as well as 25 pilot wells to a target depth of about 2,000 m (6,562 ft) within the block area to assess commercially exploitable CBM reserves. Four supporting wells will be drilled at each pilot well site to augment the production, depending on the strata formation and the land availability.

The Sohagpur Block, which covers 339 sq km (131 sq miles) in Sadol district of Madhya Pradesh, is estimated to hold CBM reserves of 17 Bcm (600 Bcf).

Essar Oil also has plans to dig 158 exploration wells in the Talcher Block and 128 in Ib Valley Block in coal-rich Odisha. In Phase 1, the company will drill 30 core holes and three test wells as well as 25 pilot wells to a target depth of about 2,000 m (6,562 ft) with four supporting wells for each pilot well in the Talcher Block area. Exploration work for Ib Valley includes making 25 core holes, three test wells and 20 pilot wells to a target depth also to a about 2,000 m (6,562 ft) with four supporting wells for each pilot well within the block area.

The Talcher and Ib Valley blocks are estimated to have CBM reserves of 74 Bcm (2.6 Tcf) and 31 Bcm (1.1 Tcf), respectively.

The official said Essar is targeting production of CBM from these four blocks in the next three years. Essar Oil, which has participating interest in 10 conventional oil and gas blocks in India and abroad, is aims to take a leading position in CBM production in India. The country is believed to hold an estimated 2.8 Tcm (92 Tcf) in CBM resources.
Cairn Energy Completes Second Indian DrillingTest
LONDON, April 11Dow Jones

Cairn Energy completed the second of two planned oil Drill Stem Tests on the LA-2 gas development well on Block CB-OS/2 in the Gulf of Khambat, offshore Western India. 

The second DST (testing an interval from 1382 to 1388 metres) flowed at a stabilized rate of 5250 barrels per day (bopd), 44.5 degrees API oil at a flowing wellhead pressure of 511 psi on a 64/64" choke and with a gas oil ratio of 397 scf/stg.
This flow rate was constrained by the surface test limitations. 

Aspreviously reported, the first DST (testing an interval from 1411 to 1420 metres) flowed at a stabilized rate of 5196 bopd. The Lakshmi gas development project is on schedule to produce first gas in August 2002. 

Highlights Gujarat, India
Scope of Project:
• Proprietary major equipment engineered and built by Chart for a turnkey solution.
• LNG bulk storage (VT 105 m3/12 bar) and pre-manufactured assemblies
• Chart guaranteed the system operated & functioned as designed to deliver
26,000 SCM/day to sustain consumption & operate between 30-75 PSIG on the final line
• System designed for automatic operation with provision for manual intervention
Case Study  LNG Application:
Replacement of existing propane system to more cost-effective natural gas to feed the burners of a copper smelter.
Project Background:
Chart was requested to develop a full equipment package which took LNG from trailers through to the final line.
Significant Accomplishments:
Chart managed the entire project. System included automatic switch of liquid flow between two ambient air vaporizers to guarantee steady flow rate during continuous use. System operation controlled from a remote panel containing both PLC (Programmable Logic Computer) using pneumatic logic and HMI User Interface.
System Configuration:
Engineering, project management and skid-mounted equipment modules were provided by Chart’s New Prague, MN technical center. The 105m³ storage tank was built at the Chart facility in the Czech Republic and shipped direct to site. The vaporizers were sourced locally from Chart’s indigenous business partner Shell-N-Tube.
System operation controlled from a remote panel containing both PLC (Programmable Logic Computer) using pneumatic logic and HMI user interface. The airactuated valves in the system select the various operating modes and also serve as an emergency shutoff device. The system was completely instrumented, with pressure, level, and temperature transmitters feeding the Control System.
The system allows for automated switching of liquid flow between two ambient air vaporizers allowing time to defrost in between cycle and not affect the system flow rate during continuous use requirement.
Pressure regulation completely automated by utilizing a Proportional Integral Derivative (PID) control loop and a flow control valve sized for this specific application.
Provisions are provided to mechanically control the system without the Control System, if needed.


India Oil emerging giant beckons US wildcatters who riled OPEC 6 2 2016
By Debjit Chakraborty, Sunil Jagtiani on 6/2/2016 NEW DELHI, India (Bloomberg)
Atanu Chakraborty, the head of oil regulator the Directorate General of Hydrocarbons, Chakraborty said.

“A man with a dog and enough money to invest can take his chances out here.”
The goal is to award the rights for the dozens of discovered small fields by January next year, and the government isn’t going to impose restrictions such as requiring a track record in the sector.

Prime Minister Narendra Modi
The casualties of the U.S. shale bust are being offered a new frontier thousands of miles away in India to remake their fortunes.
Prime Minister Narendra Modi is striving to woo investors to develop already discovered but untapped smaller oil and gas fields that hold more than India’s total annual output. The South Asian nation depends on energy imports, a risk Modi is seeking to tackle as the fastest expansion among major economies turns India into a center of global oil demand growth.  "Entrepreneurs who have capped their wells in Alberta or North Dakota will be looking at this kind of a story with a greater amount of interest, as there’s very little to look forward to in their own fronts,” Atanu Chakraborty, the head of oil regulator the Directorate General of Hydrocarbons, said in an interview on Tuesday.

India isn’t fussy about who takes up the challenge—whether foreign wildcatters or local internet tycoons looking to diversify their investments—as long as they’re serious and have the money needed, Chakraborty said. The government is offering incentives, such as simpler permits, tax sops and freedom from pricing restrictions, to overcome the deterrent that low oil prices pose to boosting production.
India’s robust domestic consumption is a buffer against the risk that prices "can fall again or will remain low," Chakraborty, 56, said in the interview in his office in New Delhi.

State-run Oil & Natural Gas Corp. dominates exploration and production in the South Asian nation. Faced with maturing large fields, the company has struggled to stem the drop in India’s oil output in recent years.  The $2-trillion economy imports about 77% of the crude and gas it needs. The 67 already-discovered small fields Chakraborty is trying to develop hold about 625 MMbbl of oil and gas, the administration estimates.

Foreign explorers, such as Canada’s Niko Resources Ltd. and Edinburgh-based Cairn Energy Plc, grew businesses in India after starting with smaller fields. At the same time, the companies have faced challenges ranging from arbitration spats with the government to tax disputes, underscoring the regulatory risks that some investors fear in India.

Roadshows
Chakraborty said he’s planning roadshows in North America, the UK, Singapore and some Indian cities to drum up interest. Some executives who lost their jobs in the crude slump have shown interest in the fields on offer, he added.  "It’s a good idea to target the smaller companies, not just in the U.S., but globally—they are aggressive and can definitely make a difference,” said Deepak Mahurkar, leader for the oil and gas team at PricewaterhouseCoopers in India.

Saudi Arabia led the Organization of the Petroleum Exporting Countries’ response to the U.S. shale boom by sustaining production, opting to defend market share and drive out higher-cost producers rather than cut output to tighten the market. Prices then tumbled, turning the American boom into a bust.

Risk Takers
"We’re looking at people who are able to take risk intelligently," Chakraborty said. "Those are the kind of nimble entrepreneurs we are looking at. Four to five years down the line, we’ll have at least four to five good companies who would be in a position to take on larger risks."

India is expected to surpass Japan as the world’s third-largest oil user this year, the Paris-based International Energy Agency estimates. The country will be the fastest-growing crude consumer in the world through 2040, according to the IEA, adding 6 MMbpd of demand, compared with 4.8 MMbpd for China.

The nation is also poised to become more attractive for investors in oil and gas exploration over the next five years, in part because of recent government policy measures, according to a ranking by researcher IHS Inc.  The goal is to award the rights for the dozens of discovered small fields by January next year, and the government isn’t going to impose restrictions such as requiring a track record in the sector, Chakraborty said. “A man with a dog and enough money to invest can take his chances out here,” he said.

India All Explorers Welcome in Untapped Oil Fields 6 2 2016
By Debjit Chakraborty June 02, 2016 bloomberg.com

Indian technicians work on the country's first shale-gas exploratory well near Jambusar, some 170 kms from Ahmedabad in November 2013. Prime Minister Narendra Modi is striving to woo investors to develop already discovered but untapped smaller oil and gas fields that hold more than India’s total annual output.

The casualties of the U.S. shale bust are being offered a new frontier thousands of miles away in India to remake their fortunes.

Prime Minister Narendra Modi is striving to woo investors to develop already discovered but untapped smaller oil and gas fields that hold more than India’s total annual output. The South Asian nation depends on energy imports, a risk Modi is seeking to tackle as the fastest expansion among major economies turns India into a center of global oil demand growth.

"Entrepreneurs who have capped their wells in Alberta or North Dakota will be looking at this kind of a story with a greater amount of interest, as there’s very little to look forward to in their own fronts,” Atanu Chakraborty, the head of oil regulator the Directorate General of Hydrocarbons, said in an interview on Tuesday.

 India isn’t fussy about who takes up the challenge -- whether foreign wildcatters or local internet tycoons looking to diversify their investments -- as long as they’re serious and have the money needed, Chakraborty said. The government is offering incentives such as simpler permits, tax sops and freedom from pricing restrictions to overcome the deterrent that low oil prices pose to boosting production.

For more on India’s surging oil demand, click here.

India’s robust domestic consumption is a buffer against the risk that prices "can fall again or will remain low," Chakraborty, 56, said in the interview in his office in New Delhi.
State-run Oil & Natural Gas Corp. dominates exploration and production in the South Asian nation. Faced with maturing large fields, the company has struggled to stem the drop in India’s oil output in recent years.

The $2 trillion economy imports about 77 percent of the crude and gas it needs. The 67 already-discovered small fields Chakraborty is trying to develop hold about 625 million barrels of oil and gas, the administration estimates.

Foreign explorers such as Canada’s Niko Resources Ltd. and Edinburgh-based Cairn Energy Plc grew businesses in India after starting with smaller fields. At the same time, the companies have faced challenges ranging from arbitration spats with the government to tax disputes, underscoring the regulatory risks that some investors fear in India.

Roadshows
Chakraborty said he’s planning roadshows in North America, the U.K., Singapore and some Indian cities to drum up interest. Some executives who lost their jobs in the crude slump have shown interest in the fields on offer, he added.

"It’s a good idea to target the smaller companies, not just in the U.S., but globally -- they are aggressive and can definitely make a difference,” said Deepak Mahurkar, leader for the oil and gas team at PricewaterhouseCoopers in India.

Saudi Arabia led the Organization of the Petroleum Exporting Countries’ response to the U.S. shale boom by sustaining production, opting to defend market share and drive out higher-cost producers rather than cut output to tighten the market. Prices then tumbled, turning the American boom into a bust.

Risk Takers

"We’re looking at people who are able to take risk intelligently," Chakraborty said. "Those are the kind of nimble entrepreneurs we are looking at. Four to five years down the line, we’ll have at least four to five good companies who would be in a position to take on larger risks."

India is expected to surpass Japan as the world’s third-largest oil user this year, the Paris-based International Energy Agency estimates. The country will be the fastest-growing crude consumer in the world through 2040, according to the IEA, adding 6 million barrels a day of demand, compared with 4.8 million for China.

India Fresh impetus to natural gas pipeline work  6 1 2016
June 01, 2016 thehindu.com

The recent order by the Circuit Bench of the National Green Tribunal imposing restrictions on diesel engines is expected to provide the required thrust to completing the remaining part of the natural gas pipeline work in Kerala.

As per the earlier schedule, pending works on the second phase of the project will be awarded later this month. The bids for the work are scheduled to be opened on Friday, sources said.

Besides the support expressed by new government, the recent NGT order on diesel-fired vehicles is a pointer to the requirement for natural gas as motor fuel in the immediate future in major urban centres in the State. Vehicles in the Thiruvananthapuram, Kollam, Thrissur, Kozhikode, and Kannur city limits, besides Kochi, are within the purview of the NGT directive.

Sources also said that once the pipeline was commissioned and gas supplies activated, the State government stood to realise approximately Rs.1,000 crore in VAT annually.

The project involves laying a pipeline between Kochi and Bengaluru and between Koottanad in Palakkad district and Mangaluru. A little more than 500 km of the 889-km pipeline pass through seven districts in the State. The third phase involves laying a sub-sea line to Kayamkulam.

The first phase of the pipeline project was completed in 2012 and involved laying around 50 km of the pipeline in and around Kochi linking 12 industrial units to the gas supply.

Though works on the second phase got underway in 2012 itself, works were abandoned in 2013 following opposition from people along a few stretches of the proposed line. The opposition had been quite strong in Malappuram and Kozhikode districts.

Besides the completion of the pipeline work in Kochi, 32 km have been completed in the first phase and this includes the pipeline work for the proposed Cheemeni power project on the Kannur-Kasaragod border.

Sources said here that measurements for award of compensation had been completed for 370 km already.

While this would help speed the works, there had been false allegations from some quarters that public hearing was not held for the project, sources said.

Reliance said to revive offshore gas project by end-2017 5 27 2016
By Saket Sundria, Dhwani Pandya, Bhuma Shrivastava on 5/27/2016 MUMBAI, India (Bloomberg)

Reliance Industries Ltd. is preparing to restart work in four offshore oil and gas blocks, including one of India’s biggest natural gas discoveries, as it seeks to revive development activity stalled for seven years by disputes with the government, according to people with knowledge of the plan.
Reliance has held meetings with oilfield-services companies to discuss the projects, which it aims to begin by December 2017, said the people, who asked not to be identified as the information isn’t public. The company plans to drill 21 wells in four offshore areas, including the deepwater KG-D6 Block in the Bay of Bengal, the people said. Reliance is partners with BP and Niko Resources for the KG-D6 Block. The Indian refiner and Niko didn’t immediately respond to requests for comment. “We continue to progress activities with our partners, building on our successful cooperation in technology, operations, and subsurface techniques in deep water exploration and production,” a BP India spokeswoman said in an emailed statement.

The company aims to initially focus on parts of the KG-D6 Block known as the R-Cluster, Satellite and MJ discoveries, according to the people. It plans to finalize the investment and work plan by the end of this year, they said.  Reliance rose 3%, the most in more than three months, to 974.70 rupees at the close in Mumbai on Friday. The benchmark S&P BSE Sensex rose 1.1%.

Output Falls
Production from the D6 Block in the Krishna Godavari basin off the country’s east coast, discovered in 2002, has fallen 85% to 9 MMscmd, according to the company’s website. The company has continued with offshore exploration activities, while pausing development drilling as it has been locked in disputes with the government over gas prices and cost recovery.

Reliance and BP intend to withdraw from multiple arbitration proceedings against the government related to KG-D6, at least one dating back to 2011, people with knowledge of the plan said earlier this week. Ending the disputes is a requirement for the companies to receive higher prices available through a government policy revision in March to encourage development of deepwater fields.

Oil Minister Dharmendra Pradhan said the new policy is expected to boost gas output by 35 MMscmd and unshackle projects worth 1.8 trillion rupees ($27 billion). These include two blocks held by Reliance with total estimated reserves of 2.53 Tcf, according to an oil ministry presentation on March 10.

Development Plan
Niko said in April 2015 that the MJ discoveries have gross contingent resources of 1.4 Tcf. Reliance’s development plan for R-Cluster was approved by the government in August 2013.
Reliance owns stakes in seven offshore blocks in India, and is a partner with BP in four of those. Reliance holds 60% in KG-D6 and NEC-OSN-97/2, with BP holding 30% and Niko the remaining. Reliance owns a 70% stake in two more blocks, CY-DWN-2001/2 and CB-ONN-2003/1, with BP holding the rest.

Andhra Pradesh government seeks more gas allocation from ONGC  12 20 2013
Dec 20, 2013, (The Andhra Pradesh government…)

HYDERABAD: The Andhra Pradesh government requested the Centre today to allot additional natural gas for its power plants.
The AP government said that it currently receives 0.5 million metric standard cubic metre per day (mmscmd) from ONGC for its power plants and it needs an additional 0.5 mmscmd, according to an official release issued here today.

Krishna Godvari Basin GE Oil & Gas for India's Vashishta  5 25 2016
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.

GMR to invest Rs 471 cr to set up LNG terminal on east coast 5 23 2016
May 23, 2016 moneycontrol.com
GMR Group is in the process of setting up an LNG (liquefied natural gas) terminal at Andhra Pradesh's Kakinada sea port with an investment of Rs 471 crore.

According to minutes of the meeting held by Expert Appraisal Committee (EAC) under the Ministry of Environment and Forests, the project envisages a start-up capacity of 1.75 million tonnes per annum (MTPA). 
This comprises of captive use by GMR Energy Limited to the tune of 0.85 MTPA.
The balance is for domestic piped and non-piped users within a radius of 450 kms.

"GMR Holding Pvt Ltd has proposed for development of LNG facility with capacity of 1.75 MTPA at Kakinada Deep Water Port (KDWP) berth 7 located adjacent to survey no. 317/318, GMR barge mounted power plant located at survey no. 411, 413, tehsil Kakinada, district East Godavari, Andhra Pradesh."

"The proposed LNG facility consists of the following...development of necessary facility/ equipment for ship berthing and mooring, LNG unloading arms with all safety measures, LNG storage and transportation, onshore insulated cryogenic pipeline, LNG regasification facility and pipeline for connectivity to existing gas distribution grid," the EAC said.

While recommending the term of reference for the project, the EAC asked the company to conduct a public hearing, besides laying down other conditions.

"During presentation, project proponent (GMR) informed that regasification plant will also be installed at berth no.7. Cost of project is Rs 471 crore. Power requirement will be 8 MW. Coringa Wildlife Sanctuary is located at a distance of 1.5 kms south," it said.

Meanwhile, the EAC deferred its decision on environmental and CRZ clearance in case of proposed greenfield facility for import of 5 MMTPA LNG Floating Storage Unit (FSU) and handling facility within Krishnapatnam Port Ltd, Nellore, Andhra Pradesh by LNG Bharat Pvt Ltd.

The committee suggested the project proponent that it should submit all the requisite documents to Andhra Pradesh Coastal Zone Management Authority as sought by them.

Power generation

There are several power plants in and around Kakinada. Spectrum Power Generation has a 208-MW plant, and was one of the first Independent Power Producers in the country. The company is planning to expand the capacity to 1350 MW in phases. Tenders for a 350-MW expansion have been requested.[38] A 220-MW power station (being expanded to 2400 MW at a cost of Rs 100 billion) owned by Reliance Energy[39] and a 464-MW combined-cycle power plant by GVK Group are in operation at Samalkota (Kakinada Rural). These plants supply electricity to the state's transmission utility, AP Transco, under a power purchase agreement.

Natural gas and petroleum

Kakinada is the base for Oil and Natural Gas Corporation's Eastern Offshore Asset. Several oil companies use Kakinada for oil and gasoline shipments. Baker Hughes and Schlumberger are field-development companies working on offshore natural-gas fields near the city.
 The Krishna Godavari Basin is considered the largest natural-gas basin in India.[40] Significant discoveries of oil and natural gas were made by Oil and Natural Gas Corporation (ONGC), Gujarat State Petroleum Corporation and Reliance, which has been extracting gas from its KG D6 block off the Kakinada coast. Reliance has an onshore terminal in Gadimoga, about 25 kilometres (16 mi) from Kakinada, to process and distribute gas to other parts of the country. Reliance Gas Transportation Infrastructure (RGTIL) has built a 1,440-kilometre (890 mi) pipeline from Kakinada to Bharuch (Gujarat) to transport 120 million cubic meters per day (mcmd) of natural gas from the Krishna-Godavari fields (owned by Reliance Industries)[41] across India to its west coast.

In 2010, the Petroleum and Natural Gas Regulatory Board awarded Kakinada's gas-distribution project to Bhagyanagar Gas, a consortium of GAIL and Hindustan Petroleum.[42] Construction is underway to supply gas to Kakinada and the surrounding towns of Samalkot, Peddapuram and Pithapuram, making Kakinada the second city in Andhra Pradesh to have a piped gas supply for domestic, commercial and industrial purposes (along with Vijayawada)

India Plans advance for grassroots mega refinery in India 5 20 2016
India’s Minister of Petroleum and Natural Gas (MPNG) Shri Dharmendra Pradhan

         Public-sector refining firms Indian Oil Corp. Ltd. (IOC), 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).
           BC, 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 Sabha, 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.
        
India shale gas and oil wells 4 26 2016
Tuesday, April 26, 2016 Hyderabad: The Economic Times.com

State-owned  ONGC Limited is planning to explore as many as 17 shale gas and oil wells in both east and west coasts with an investment of around Rs 700 crore.  
   According to the minutes of a recent meeting of the Expert Appraisal Committee (EAC) of Ministry of Environment and Forests, the PSU sought the ministry's nod to prepare Terms of Reference for exploring the wells.    A senior official of the PSU said this is the first time that the oil and gas company has taken up shale gas exploration in such a big scale. Also, it first time that it has taken up shale gas exploration in the Krishna-Godavari basin.   

According to the minutes, ONGC sought permission for drilling 11 exploratory wells for shale oil/shale gas in Cambay basin at Mehsana, Ahmedabad and Bharuch districts of Gujarat, one well in Cauvery basin at Nagapattinam in and five wells in KG Basin at East and West Godavari districts of Andhra Pradesh. 

  Shale gas is the natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich resources of petroleum and natural gas.   

"ONGC Ltd has proposed for exploratory drilling of 11 wells for shale oil/shale gas in Cambay basin at Mehsana, Ahmedabad, Bharuch in Gujarat.
Total cost of project is Rs 366 crores," according to the minutes of the meeting.   

The costs of the projects at KG-Basin and Cauvery are Rs 217 crore and Rs 45 crore, respectively, it added.  
 "ONGC was given a mandate to identify a minimum of 50 nomination blocks where it will take up shale gas and oil exploration in Phase-I.  
 "ONGC will have to drill at least one (two in blocks having area more than 200 sq km) well for assessment of shale gas and oil in each of these blocks by 2017," the official cited above told PTI.

   Realising the importance of shale gas and oil for meeting the energy demands of the country and the need to expedite exploration and assessment of domestic reserves, the Centre had announced policy guidelines on October 14, 2013, whereby national oil companies ONGC and OIL were to take up shale gas and oil exploration activities in their nomination blocks.   

According to a report released in 2013 by US Energy Information Agency, India has 63 trillion cubic feet of shale gas trapped under rocks.

This is our opportunity in NW India Propane switch to LNG 6 4 2016
Keywords: Cairn India, oil production, Rajasthan gas reserves, gas pricing guidelines

In 2010 several propane operations switched to LNG regassified from imported marine sources.
At least 3 more operators of propane powered plants wanted the same LNG source but were denied.
No more LNG could be allocated for those operations because regassified gas was needed elsewhere.
Gas wells are now available but no pipelines are available, but planned.
This is our opportunity in NW India.
Charly_b

Cairn India makes new oil discovery in Rajasthan block
Cairn India turns its focus to gas in Rajasthan

Cairn India, on Tuesday, announced that it had made the 26th oil discovery in its Rajasthan block.
Wednesday, April 13, 2016
Cairn Chief Executive Officer P Elango said the discovery in the block "reaffirms our belief that an aggressive exploration drilling programme will help harness the full potential of the Barmer Basin in Rajasthan."

The block management committee had approved the exploration work programme for the RJ-ON-90/1 block on February 14 after which Cairn India commenced drilling of its first exploration well, Raageshwari-South-1, on February 25 located in the southern part of the block. “Technical evaluations indicate about 10 metres of gross oil column within Dharvi Dungar formation. Oil has been discovered and tested for the first time in Dharvi Dungar sands in Raageshwari-Tukaram area, where previous discoveries were in the shallower Thumbli sands,” it said. The volumes of oil in place and the potential resource base associated with this discovery are under evaluation.

Cairn India CEO P. Elango said the discovery in the block reaffirmed the company’s belief that an aggressive exploration drilling programme would help harness the full potential of the Barmer basin in Rajasthan. “This is a step closer towards reserve accretion through exploration-led growth,” he added.

After making a success of discovering and producing oil from its Rajasthan field, Cairn India is now turning its focus to gas.

The Vedanta group company, which is now close to breaching the 2-lakh barrels of oil equivalent per day (boepd) output mark, is stepping up efforts to monetise the gas reserves in the southern part of the block and in the Rageshwari field.

“We hope to have the gas results out by the first quarter of 2015. It will be a real story,” said a top official of Cairn India, who did not want to be named. He said that based on first estimates, the reserves could be bigger than that in the Cambay Basin CB 0S2 field, which held 300 billion cubic feet of gas.
Commercial viability
Drilling is currently on in Rageshwari and in new deep gas prospects in the southern part of the Rajasthan block. “We are sure about the commerciality,” the official said pointing out that it was an on-shore field, which means easier logistics and cheaper cost of production.

It is also close to the developed gas market of Gujarat. Last month’s notification of the new gas pricing guidelines which will see prices doubling from the present $4.2 per mmbtu starting April 1 has made development of the new gas prospects attractive for Cairn.

The gas will be piped out through a new pipeline that will be built parallel to the existing oil pipeline that extends to the Gujarat coast. When it sought approval for the existing Barmer-Boghat (Gujarat) pipeline which evacuates the Rajasthan crude, Cairn had, with foresight, secured Right of Use of such width as to enable it to lay another parallel pipeline in future. “Thanks to this, we can quicken the pace of getting the gas to the market as all we need to do is lay the new pipeline,” said the official.

The existing oil pipeline, which was originally built to transport 1.75 lakh boepd, is now moving close to 2 lakh boepd. Thanks to drag reducing additives used by Cairn, which are chemicals that form a coating on the pipeline and help reduce friction, the quantum of oil transported has increased.

“We can transport up to 3 lakh boepd by just adding some more boosting pumps and compressors along the way,” the official said. Last week, Cairn drilled its 200 well in the Rajasthan block, and work is currently on at the Mangala Processing Terminal to increase its processing capacity.

Cairn India’s programme to buy back shares is open now.

The company plans to buy back 17.09 crore shares, representing 8.9 per cent of its equity, at Rs.335 per share. The cash-rich company, sitting on about $3 billion, has set aside Rs.5,725 crore for the buyback.
Keywords: Cairn India, oil production, Rajasthan gas reserves, gas pricing guidelines

ArcelorMittal (MT) Gets Government Grant for LNG Project 5 16 2016
May 16, 2016
Steel giant ArcelorMittal announced that ArcelorMittal Mining Canada has been awarded a C$4.5 million grant from the Quebec government which will allow its pellet plant to use a greater proportion of alternative fuels. The grant, which forms part of the Quebec government's 2013−2020 Action Plan on climate change, aims to improve the carbon balance and energy efficiency of the province's businesses.

The grant will be utilized to finance a pilot project for one of ArcelorMittal's two production lines at its pellet plant in Port-Cartier enabling the furnace to cook pellet using liquid natural gas (LNG) and a lower amount of traditional fuel oil. This will aid the reduction of greenhouse gas emissions of more than 30% compared with oil-based fuel, and also considerably lower emissions of sulphur and other pollutants.

 The government's support will enable the development of the Plan Nord region's emerging LNG sector. Also, it will showcase the technical feasibility of the project's approach to energy conversion.

ArcelorMittal recently released its first-quarter 2016 results. The company posted a net loss of $416 million or 23 cents per share in the quarter, lower than a net loss of $728 million or 41 cents per share recorded a year ago. Excluding exceptional and non-cash items, adjusted net loss for the quarter was $176 million compared with adjusted loss of $36 million in the year-ago quarter. Adjusted loss of 10 cents per share for the reported quarter was narrower than the Zacks Consensus Estimate of a loss of 15 cents.

Revenues plunged 21.7% year over year to $13,399 million in the quarter and missed the Zacks Consensus Estimate of $14,189 million. The year-over-year decline resulted from lower average steel selling prices, lower market-priced iron ore shipments and a fall in iron ore reference prices.

ArcelorMittal currently has a Zacks Rank #2 (Buy)

Government of India Shale Gas Gail exploration partners 
http://www.gailonline.com/final_site/ep_shalegas.html
http://www.gailonline.com/final_site/blocks-awarded.html

GAIL is preparing itself to participate actively in the Shale Gas Bidding Round which is expected to be launched by Government of India. Government of India has issued a Policy Guidelines for Exploration and Exploitation of Shale Gas and Oil by National Oil Companies (ONGC and OIL) for areas allocated under Nomination regime.

 GAIL is a member of Multi Organisation Team (MOT) along with DGH (Directorate General of Hydrocarbons), ONGC and Oil India Limited (OIL).

Shale gas (unconventional source of gas) is natural gas produced from shale formations unlike conventional natural gas which is produced from sand, limestone formations. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to Canada, Europe, Asia, and Australia.

 GAIL is actively pursuing opportunities for acquisition of Shale Gas asset in overseas countries.

GAIL partners spuds first exploratory well in Cambay Basin 3 29 2016
ETEnergyWorld   29 March 2016

GAIL has started drilling the first Exploratory Well as Operator in its NELP-IX Block CB-ONN-2010/11 in Cambay Basin. The process, technically called “spudding”, started on March 27, 2016 in the well situated in Dugari village in Tarapur Tehsil of Anand District of Gujarat, a statement from the company said today.

New Delhi:
GAIL has started drilling the first Exploratory Well as Operator in its NELP-IX Block CB-ONN-2010/11 in Cambay Basin. The process, technically called "spudding", started on March 27, 2016 in the well situated in Dugari village in Tarapur Tehsil of Anand District of Gujarat, a statement from the company said today.

GAIL is the lead operator of the block with 25 per cent participating interest in it. Other partners in this block are Bharat Petro Resources Limited, Engineers India Limited, Monnet Ispat Energy Ltd. and Bharat Forge Infrastructure Limited, the statement added.

Drilling of target depth of 2,500 meters of this well is scheduled to be completed in 40 to 45 days followed by testing for another 10 to 15 days.

This will target Cambay Shale and Olpad formations. The consortium will drill eight exploratory wells in the initial Exploration Phase as per minimum work commitment of Production Sharing Contract (PSC).

While this phase will continue till March 2017, Acquisition, Processing and Interpretation (API) of 2D and 3D Seismic Data have already been completed, GAIL said in the statement.

Production Sharing Contracts Signed for 13 Blocks Under NELP-IX Bidding Round
http://pib.nic.in/newsite/erelcontent.aspx?relid=81851