January 01-15, 2019

National News Internatonal News

NATIONAL

City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG

PNGRB to hold roadshow for 10th City Gas Distribution bidding round at Jaipur

Petroleum and Natural Gas Regulatory Board (PNGRB), is organizing a roadshow on January 3, for promoting 10th City Gas Distribution (CGD) bidding round in Jaipur at Hotel Holiday Inn Jaipur City Centre. .

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After the success of the recently concluded 9th CGD bidding round for 86 Geographical Areas (GAs) covering 174 districts in 21 states/ UTs which attracted great interest from investors across the sector, wherein total 406 bids were received from 38 organizations (including 8 new and 2 overseas investors). This round ensures remarkable minimum work commitment of 2.2 crore domestic PNG connections, 4600 CNG stations and 1.16 lakh inch-km of steel pipeline. The 10th CGD Bidding Round offering 50 (GAs) covering 124 districts in 14 states, was recently launched by Hon’ble Prime Minister, Shri Narendra Modi on 22nd November, 2018 at Vigyan Bhawan, New Delhi. This roadshow at Jaipur tomorrow is part of the series of roadshows planned by PNGRB across India over the next few weeks before the deadline for bid submissions end on 5th February 2019. Prior to this, a roadshow was held at Chandigarh which entailed great response from all the stakeholders.
https://energyinfrapost.com/pngrb-hold-roadshow-10th-city-gas-distribution-cgd-bidding-round-jaipur/

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Kolkata likely to get CNG stations by year-end

The eastern metropolis is likely to get CNG by end of this year, which would facilitate vehicles running on greener fuel, an official said. As a part of the ‘Pradhan Mantri Urja Ganga’ project, the Central government owned Gail (India) Limited was entrusted to develop city gas distribution (CGD) network in six cities – Patna, Jamshedpur, Ranchi, Bhubaneswar, Cuttack and Kolkata.

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The eastern metropolis is likely to get CNG by end of this year, which would facilitate vehicles running on greener fuel, an official said. As a part of the ‘Pradhan Mantri Urja Ganga’ project, the Central government owned Gail (India) Limited was entrusted to develop city gas distribution (CGD) network in six cities – Patna, Jamshedpur, Ranchi, Bhubaneswar, Cuttack and Kolkata. However, state owned Greater Calcutta Gas Supply Corporation (GCGSC) was earlier authorised for city gas distribution in Kolkata and surrounding areas. Subsequently, it was decided the CGD in the eastern metropolis would be developed jointly. A joint venture (JV) company, Bengal Gas Company Ltd, has been formed for developing the city gas distribution, said Gail (India) Limited’s Chief General Manager S. Bairagi at a road show for promoting 10th City Gas Distribution bidding round here. Incidentally, the gas major has been setting up Jagdishpur-Haldia-Bokaro-Dhamra pipeline to bring natural gas to eastern India. He indicated that before the pipeline connects Kolkata, the JV would try to transport gas through roadways to the eastern metropolis. “Due to land acquisition issues, we are planning to put up CNG stations at the retail outlets of oil marketing companies (OMCs). We shall try to open CNG stations this year itself if we get space at the outlets. The same model we have followed in Bhubaneswar and Cuttack.  The estimated investment in first five years in Kolkata city gas project would be Rs 5,200 crore, the official said. The JV would distribute CNG and piped natural gas in the City of Joy and part of Howrah, Hooghly, Nadia and North and South 24 Parganas in West Bengal.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/kolkata-likely-to-get-cng-stations-by-year-end/67447769

 

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Piped gas supply in Patna from next month: Sushil Kumar Modi

Deputy chief minister of Bihar, Sushil Kumar Modi (SuMo) said supply of piped cooking gas to city households would begin from February. 

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In his keynote speech at the 10th City Gas Distribution (CGD) bidding organized by PNGRB, SuMo claimed approximately 5,500 households in the city had already been connected with piped natural gas (PNG). “The state government has provided a 1.5 acre land worth Rs 100 crore for Rs 48 crore for setting up a CNG station at Phulwarisharif. Three CNG stations will be set up in Patna by March and four others in 2019-20,” SuMo said and added at least 50,000 households in the city were targeted to be connected with the PNG network over the next five years.  “At present, CGD authorization has been given by the PNGRB in seven districts of Bihar. At least 21 more districts will be added to the network under the 10th bidding phase. After the 10th round, 28 of 38 districts in the state will be fully authorized for the development of CGD network. This is a remarkable feat in the field of natural gas distribution in Bihar,” said a GAIL official. According to the Urja Ganga Gas Pipeline Project of the Union ministry of petroleum and natural gas, six cities, Varanasi , Bhubaneswar and Cuttack, Patna , Ranchi and Jamshedpur will be covered with piped cooking gas supply network. While the supply has been started in Varanasi, Bhubaneswar and Cuttack, the three remaining cities are targeted to be covered before March.

https://timesofindia.indiatimes.com/city/patna/piped-gas-supply-in-city-from-next-month-sumo/articleshow/67371226.cms

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Adani Gas Limited revises CNG, PNG prices

Adani Gas Limited (AGL) has revised the prices of compressed natural gas (CNG) and piped natural gas (PNG) for residential and industrial consumers from January 1, 2018. 

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While the city gas distribution company has raised CNG and domestic PNG prices, it has reduced tariffs for natural gas supplied to its industrial customers. Adani Gas Limited (AGL) has revised the prices of compressed natural gas (CNG) and piped natural gas (PNG) for residential and industrial consumers from January 1, 2018. While the city gas distribution company has raised CNG and domestic PNG prices, it has reduced tariffs for natural gas supplied to its industrial customers. According to details on the company’s website, the CNG price for Ahmedabad and Vadodara markets has been hiked by Rs 1 per kg to Rs 55/kg from Rs 54/kg, while PNG prices for residential consumers has been increased by Rs 13.2 per million metric British thermal units (MMBtu) or 1.97% to 682.50 per MMBtu from Rs 669.30 per MMBtu. The company had last revised these prices in October 2018. However, the company also reduced PNG price for its industrial consumers by Rs 28.02 per MMBtu or 2.68% to Rs 1,016.40 per MMBtu (for minimum guaranteed offtake-MGO) from Rs 1,044.42 per MMBtu. The Adani Group company serves about 2,85,000 households and 1,50,000 CNG users in Ahmedabad and Vadodara.

https://timesofindia.indiatimes.com/city/ahmedabad/agl-revises-cng-png-prices/articleshow/67341133.cms

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Kochi in need of more CNG outlets as gas sales surge

The demand for CNG is growing with business expanding 10 times after four CNG outlets were introduced in March 2018 in Kochi. Compared to the 1.5 tonnes sales recorded in April, IOC, which operates the pumps, reports that the sale has increased to 150 tonnes in December.

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“This can be attributed to the growing popularity of greener fuel among auto and cab drivers, who are making the switch for economic reasons. One kg of CNG retails for around `53, compared to `66 for diesel and `70.5 for petrol,” said P S Mony, Kerala Head, IOC. IOC says there are receiving requests for the expansion of CNG network across the city. Right now, four CNG-filling stations – two at Kalamassery, one at Aluva and one at Maradu – are operational.IOC is awaiting approvals for adding CNG dispensers at 20 of its outlets in Ernakulam with requests for NOCs having been submitted to the district administration in May. “The delays in the issue of NOCs are crippling us to cater to the growing demand. The state government should ensure that such licences are cleared with minimum red tape,” said Mony. He expressed hope that at least four outlets by IOC will start functioning by March at Karingachira, Thiruvankulam, Cheranallur and Chengamanad. The company says a delay in obtaining permissions from the corporation to expand into the city limits hampered the CNG network expansion.

https://www.newindianexpress.com/cities/kochi/2019/jan/02/city-in-need-of–more-cng-outlets-as-gas-sales-surge-1919368.html

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City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG

Natural Gas / Pipelines / Company News

Policy Matters / Gas Pricing / Others

LNG Development / Shipping

 

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SNAPSHOT: NATIONAL

Natural Gas / Pipelines / Company News

Government to launch 2nd round of oil block auction

The Open Acreage Licensing Policy bid round-II, with 14 blocks measuring 29,333 km2 in aggregrate area on offer, will be launched by Oil Minister Dharmendra Pradhan. After months of delay, India will launch the second auction of 14 blocks for prospecting of oil and gas in an attempt to raise domestic output to cut imports.

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Officials said the Open Acreage Licensing Policy (OALP) bid round-II, with 14 blocks measuring 29,333 square kilometres in aggregrate area on offer, will be launched by Oil Minister Dharmendra Pradhan. India had in July 2017 allowed companies to carve out blocks of their choice with a view to bringing about 2.8 million sq km of unexplored area in the country under exploration. Under this policy, called OALP, companies are allowed to put in an expression of interest (EoI) for prospecting of oil and gas in any area that is presently not under any production or exploration licence. The EoIs can be put in at any time of the year but they are accumulated twice annually. The blocks or areas that receive EoIs at the end of a cycle are put up for auction with the originator or the firm that originally selected the area getting a 5-mark advantage. The two window of accumulating EoIs end on May 15 and November 15 every year. EoIs accumulated till May 15 are supposed to be put on auction by June 30 and those in the second window by December 31. EoIs for second round closed on May 15, 2018 and the blocks were supposed to be put for auction by June but the round was for reasons unknown delayed. In the meanwhile, EoIs in the third window also closed on November 15, 2018 with as many as 11 blocks measuring 21,507 sq km and five coal-bed methane (CBM) blocks being sought for. Officials said after the delay in putting on offer the blocks sought in second window, it was expected that blocks in second and third window would be put on offer together. But the government appears to have gone with putting on offer only the 14 blocks sought in the second window. The blocks on offer in OALP-II include one in deep waters of Krishna Godavari basin and five shallow water blocks – two each in Andaman and Kutch basin and one in Mahanadi basin. Eight onland blocks – four in Mahanadi basin, two in Cambay and one each in Rajasthan and Cauvery are on offer. Officials said the 14 blocks are estimated to hold in-place resource of 12,609 million tonnes of oil and oil equivalent gas. In the third window, EoIs have been put for one deepsea block in Mahanadi basin and one shallow water area in Kerala Konkan basin. Nine onland areas – three in Assam, two in Cambay and one each in Mahanadi, Rajasthan, KG and Bengal-Purnea basin have been sought.

https://www.millenniumpost.in/business/govt-to-launch-2nd-round-of-oil-block-auction-today-335101

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Modi government may give freedom to PSUs to bring in private players

The move by the government to bring in private parties for the nomination blocks of state-run companies had raised protests among employees.

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Giving a major boost to government-owned Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), the government is planning to come up with a new fiscal model giving ‘special incentives’ for fields that were given out on nomination to these companies. This will also give companies the freedom to bring in private players to ramp up the production. Petroleum minister said his government was working on giving “incentives to the E&P sector, especially those under the nomination regime and special incentives to difficult fields under that regime”. This include blocks that were allocated to the two National Oil Companies (NOCs) – ONGC and OIL — to whom petroleum exploration licences (PEL) were granted on nomination basis prior to the New Exploration Licensing Policy (NELP) and OALP rounds. The move by the government to bring in private parties for the nomination blocks of state-run companies had raised protests among employees. “The freedom to bring in private players to increase production will be given to the boards of the respective companies,” Pradhan added. The government launched the second round of OALP auction, which is likely to see investment to the tune of around Rs 40,000 crore. 

https://www.business-standard.com/article/economy-policy/modi-government-may-give-freedom-to-psus-to-bring-in-private-players-119010700758_1.html

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GAIL India may throw lifeline to Matix Fertilizers and Chemicals

Matix Fertilizers and Chemicals is banking on GAIL India’s Pradhan Mantri Urja Ganga pipeline for restarting its idle coal-bed methane-fired fertiliser plant in West Bengal and escape insolvency resolution. The company, promoted by the Datamatics Group, which started defaulting on its Rs 4,305 crore loan exposure was recently dragged by IDBI Bank to the National Company Law Tribunal and rated defaulter by rating agency CARE. 

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The Rs 7,000 crore plant has been lying closed for want of feedstock. “By July we would be able to take the Urja Ganga pipeline to Matix’s plant from where they would be able to get both natural gas as well as the coal-bed methane being produced by Essar at Ranigunj,” S Biragi, chief general manager (marketing), GAIL India, said. The greenfield urea and ammonia plant need 2.4 MMSCMD, which was supposed to come mostly from Essar Oil and Gas Exploration and Production. The CBM production reportedly fell short of Matix’s requirements while Essar officials had maintained that Matix’s own production wasn’t estabilised, and the company had even supplied CBM for pre-commissioning activities of Matix. With the pipeline now turning into reality, production would now be scaled up by Essar. The pipeline would pick coal bed methane from  Essar’s operating field at Ranigunj along the way, and would be able to reach Matix’s plant near Panagarh before reaching Haldia near the Bay of Bengal by December, the GAIL official said on the sidelines of a conference on gas sector organised by industry body Ficci.

https://www.dnaindia.com/business/report-gail-india-may-throw-lifeline-to-matix-fertilizers-and-chemicals-2706153

 

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SNAPSHOT: NATIONAL

Policy Matters/Gas Pricing/Others

Try diverting gas from non-core sectors to stuck power units: Panel

The government should explore diverting domestic gas allocation from non-core sectors to stranded gas-based power plants, a parliamentary panel has suggested, while asking the government to spell out the action taken against those responsible for the “gross miscalculation” of gas availability in KG D6. Calling for cost moderation of RLNG,

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 the panel has also asked the government to rethink its plan of free market pricing of natural gas, saying it will be counter-productive and not in the public interest. The oil ministry’s proposal for removal of power sector from priority allocation should also be reconsidered and instead the government should restart its e-bid RLNG scheme to support these stranded plants with necessary exemptions, waivers and desired modifications, said the standing committee on energy in its report on stressed/non-performing assets in gas-based power plants. The financial support or subsidies required for the scheme may be sourced from Power System Development Fund, National Clean Energy Fund or budgetary grants for which the power ministry should pursue with the finance ministry, it said. We welcome these recommendations, with emerging energy mix of increasing renewables, it is imperative that the gas-based projects are saved from being mothballed as we need gas-based generation for grid balancing. We hope GoM will consider committee’s recommendations and operationalise these at the earliest,” Association of Power Producers director general Ashok Khurana said. The parliamentary panel has proposed that the government should hand-hold these stranded gas-based power plants and provide them requisite support to revive them. The ministry of petroleum & natural gas should come out with the reasons, in lucid terms, for zero production of gas from KG D6 against the estimated production of 80 MMSCMD that was envisaged earlier and the steps taken by the government against those who are responsible for this gross miscalculation, which has put the reliability of the ministry at stake,” the panel said.

https://economictimes.indiatimes.com/industry/energy/oil-gas/try-diverting-gas-from-non-core-sectors-to-stuck-power-units-panel/printarticle/67410464.cms [Edited]

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Gas hub plan on hold

As both a marketer and a pipeline operator, GAIL in its current form has raised serious questions about conflict of interest in the business. The natural gas trading hub, which could help in better price discovery, is unlikely to be set up in the current fiscal as the oil ministry plans to first decide on splitting GAIL India into two separate entities —

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a gas marketing company and another a pipeline company. As both a marketer and a pipeline operator, GAIL in its current form has raised serious questions about conflict of interest in the business. Oil ministry officials said “for effective transparent functioning of the gas hub, there should be level playing field and equal access to the pipeline infrastructure and no scope of any favour or discrimination by the pipeline operator. So unbundling would ensure a level playing field”. The official, however, said the government is yet to take a final decision. GAIL has opened its network to private gas marketing companies. Pipelines are crucial to take natural gas to consumers across the country. Currently, the pipelines are concentrated in the western and northern parts of the country only. After initially resisting any split moves, GAIL has said separation could be done only after the gas market develops further. In mature markets, monopoly gas transporting and marketing companies have been unbundled or split after the share of natural gas in the energy mix has reached at least 15 per cent and a well-connected pipeline network built. Also, domestically produced natural gas forms bulk of consumption, Gail said. The share of natural gas in the energy mix of the country is currently about 6.2%. The official said the government also needs to decide on who would be the transmission system operator, apart from deciding on how much volume should be traded on the proposed exchange.

https://www.telegraphindia.com/business/gas-hub-plan-on-hold/cid/1681059

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SNAPSHOT: NATIONAL

LNG Development / Shipping

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INTERNATIONAL

City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG

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City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG

Natural Gas/Pipelines/ Company News

Policy Matters / Gas Pricing / Others

LNG Development / Shipping

Technology Development / Shipping

 

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SNAPSHOT: INTERNATIONAL

Natural Gas/Pipelines/ Company News

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Policy Matters/Gas Pricing/Others

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LNG Development / Shipping

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Technology Development

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