January 01-15, 2019
National News Internatonal News
NATIONAL
City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG
Piped natural gas still a dream for Haryana and Punjab region
When the Central government authorised GAIL Gas Ltd to start city gas distribution (CGD) network in Sonepat in June 2009, it was anticipated that it will be the first city in North India to get piped gas connections. Same is the case of Chandigarh, Mohali and Panchkula residents. They were expecting to join the premier league of cities having CGD network when IndianOil-Adani Gas (P) Ltd won the bid for these cities in May 2013.
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However, nine years later, GAIL has succeeded in roping in only 8,500 piped natural gas (PNG) customers in Sonepat. In Chandigarh, only 9,000 customers are getting piped gas. Even other awarded projects in Punjab and Haryana are running behind schedule. PNG is around 20% cheaper than LPG supplied in cylinders but the slow progress in laying underground pipes has been a major stumbling block and eluding customers from cheaper fuel. According to a senior functionary of the company which won the bids for the CGD network, teething problems at local level, infrastructure constraints and mindset of people are the main reasons behind the slow progress. We are facing infrastructure constraints in the city as the lanes are very narrow and it’s very difficult to lay the pipelines. Secondly, the mindset of people has to change. People are still not coming forward to opt for piped gas,” said a GAIL official. The companies who have already won the bid said the right of use (RoU) charges for laying the pipeline in Punjab, Haryana and Chandigarh are very high.
https://www.tribuneindia.com/news/business/piped-natural-gas-still-a-dream-for-region/704923.html
show less
CNG buses piloted for interstate routes in India
Delhi Transport Corporation (DTC) is planning to restart interstate passenger services after an eight-year hiatus, with buses using Compressed Natural Gas (CNG) to commence a pilot project around the national capital from February 2019. DTC ceased interstate activity when the entire fleet switched to CNG in 2010 and because of challenges with range of operations using steel cylinders.
show more
At that time the CNG refueling network was only available in cities, but the recent push by the government to move to a gas-based economy has heightened investment in piped gas networks and refueling infrastructure. Type IV carbon composite cylinders have been imported for use in the trial and if the pilot is successful, the cylinders will be manufactured in India. Approval of this cylinder type is in accordance with India’s amended Gas Cylinders Rules 2015. The carbon composite cylinders are lighter and more can be carried onboard buses, hugely extending the range. The existing ordinary CNG buses have five steel cylinders with a capacity of 100 kg fuel top up. The new buses will have seven fibre cylinders which can store up to 300 kg CNG. The Times of India reports the existing ordinary bus cost is about Rs 32 lakh (USD 45,700), while the one with fibre cylinder would cost Rs 39 lakh ($ 55,700) as each cylinder cost is Rs one lakh ($1,430 per unit). Dubbed ‘green corridors’ because of the use of CNG as a fuel that is significantly cleaner for bus operations than diesel, routes are proposed for the busy highways from Delhi to Agra, Jaipur, Haridwar and Chandigarh.
Source: NGV Global
show less
Tap on IGL app before you queue up for CNG
Next time you want to tank up on CNG in Delhi-NCR, you need not wait in a long queue. A few taps on a new IGL app on your phone will tell you the average waiting time at stations within a radius of five kms and beyond to help you chose the one where you can get the quickest refill
show more
The ‘CNG Queue Management’ app is the key ingredient of a basket of digital initiatives launched on Friday by NCR’s sole supplier of CNG and PNG services for improving consumer interface and service.
“These initiatives will provide seamless information and convenience to consumers as well as a big push towards creating a Digital India,” oil minister Dharmendra Pradhan said launching the initiatives. The New app divides CNG consumers into three broad categories- buses, cars and autos and help disperse demand in a particular area to ease the queues. IGL has been hamstrung by lack of land in expanding its CNG network, especially in east and south, to meet over 10% rise in annual demand as more and more vehicles switch to the clean-burning fuel. But still, the company is refueling a million vehicles daily and supplying PNG to an equal number of households, which drew a rare compliment from Pradhan. “Good to see that IGL has grown beyond the initial mandate of supplying CNG for public transport vehicles to become one of India’s biggest CGD companies. Of the 1500 CNG stations operating in the country, more than 450 are in Delhi. IGL plans to add another 50 CNG stations in NCR,” Pradhan said.
https://timesofindia.indiatimes.com/india/tap-on-igl-app-before-you-queue-up-for-cng/articleshow/67198328.cms
show less
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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
|
GO TOP
SNAPSHOT: NATIONAL
Natural Gas/Pipelines/ Company News
India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
show more
The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
show less
Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round. Source: Financial Chronicle/Indian Oil & Gas [Edited]
show less
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GO TOP
|
SNAPSHOT: NATIONAL
Policy Matters/Gas Pricing/Others
India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
show more
The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
show less
Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round. Source: Financial Chronicle/Indian Oil & Gas [Edited]
show less
|
SNAPSHOT: NATIONAL
Policy Matters/Gas Pricing/Others
India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
show more
The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
show less
Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round.
Source: Financial Chronicle/Indian Oil & Gas [Edited]
show less
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INTERNATIONAL
City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG
Piped natural gas still a dream for Haryana and Punjab region
When the Central government authorised GAIL Gas Ltd to start city gas distribution (CGD) network in Sonepat in June 2009, it was anticipated that it will be the first city in North India to get piped gas connections. Same is the case of Chandigarh, Mohali and Panchkula residents. They were expecting to join the premier league of cities having CGD network when IndianOil-Adani Gas (P) Ltd won the bid for these cities in May 2013.
show more
However, nine years later, GAIL has succeeded in roping in only 8,500 piped natural gas (PNG) customers in Sonepat. In Chandigarh, only 9,000 customers are getting piped gas. Even other awarded projects in Punjab and Haryana are running behind schedule. PNG is around 20% cheaper than LPG supplied in cylinders but the slow progress in laying underground pipes has been a major stumbling block and eluding customers from cheaper fuel. According to a senior functionary of the company which won the bids for the CGD network, teething problems at local level, infrastructure constraints and mindset of people are the main reasons behind the slow progress. We are facing infrastructure constraints in the city as the lanes are very narrow and it’s very difficult to lay the pipelines. Secondly, the mindset of people has to change. People are still not coming forward to opt for piped gas,” said a GAIL official. The companies who have already won the bid said the right of use (RoU) charges for laying the pipeline in Punjab, Haryana and Chandigarh are very high.
https://www.tribuneindia.com/news/business/piped-natural-gas-still-a-dream-for-region/704923.html
show less
CNG buses piloted for interstate routes in India
Delhi Transport Corporation (DTC) is planning to restart interstate passenger services after an eight-year hiatus, with buses using Compressed Natural Gas (CNG) to commence a pilot project around the national capital from February 2019. DTC ceased interstate activity when the entire fleet switched to CNG in 2010 and because of challenges with range of operations using steel cylinders.
show more
At that time the CNG refueling network was only available in cities, but the recent push by the government to move to a gas-based economy has heightened investment in piped gas networks and refueling infrastructure. Type IV carbon composite cylinders have been imported for use in the trial and if the pilot is successful, the cylinders will be manufactured in India. Approval of this cylinder type is in accordance with India’s amended Gas Cylinders Rules 2015. The carbon composite cylinders are lighter and more can be carried onboard buses, hugely extending the range. The existing ordinary CNG buses have five steel cylinders with a capacity of 100 kg fuel top up. The new buses will have seven fibre cylinders which can store up to 300 kg CNG. The Times of India reports the existing ordinary bus cost is about Rs 32 lakh (USD 45,700), while the one with fibre cylinder would cost Rs 39 lakh ($ 55,700) as each cylinder cost is Rs one lakh ($1,430 per unit). Dubbed ‘green corridors’ because of the use of CNG as a fuel that is significantly cleaner for bus operations than diesel, routes are proposed for the busy highways from Delhi to Agra, Jaipur, Haridwar and Chandigarh.
Source: NGV Global
show less
Tap on IGL app before you queue up for CNG
Next time you want to tank up on CNG in Delhi-NCR, you need not wait in a long queue. A few taps on a new IGL app on your phone will tell you the average waiting time at stations within a radius of five kms and beyond to help you chose the one where you can get the quickest refill
show more
The ‘CNG Queue Management’ app is the key ingredient of a basket of digital initiatives launched on Friday by NCR’s sole supplier of CNG and PNG services for improving consumer interface and service.
“These initiatives will provide seamless information and convenience to consumers as well as a big push towards creating a Digital India,” oil minister Dharmendra Pradhan said launching the initiatives. The New app divides CNG consumers into three broad categories- buses, cars and autos and help disperse demand in a particular area to ease the queues. IGL has been hamstrung by lack of land in expanding its CNG network, especially in east and south, to meet over 10% rise in annual demand as more and more vehicles switch to the clean-burning fuel. But still, the company is refueling a million vehicles daily and supplying PNG to an equal number of households, which drew a rare compliment from Pradhan. “Good to see that IGL has grown beyond the initial mandate of supplying CNG for public transport vehicles to become one of India’s biggest CGD companies. Of the 1500 CNG stations operating in the country, more than 450 are in Delhi. IGL plans to add another 50 CNG stations in NCR,” Pradhan said.
https://timesofindia.indiatimes.com/india/tap-on-igl-app-before-you-queue-up-for-cng/articleshow/67198328.cms
show less
|
City Gas Distribution – Retail PNG / CNG / LNG & AUTO LPG
Natural Gas/Pipelines/ Company News
Policy Matters / Gas Pricing / Others
LNG Development / Shipping
|
GO TOP
SNAPSHOT: INTERNATIONAL
Natural Gas/Pipelines/ Company News
India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
show more
The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
show less
Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round. Source: Financial Chronicle/Indian Oil & Gas [Edited]
show less
|
GO TOP
|
SNAPSHOT: INTERNATIONAL
Policy Matters/Gas Pricing/Others
India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
show more
The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
show less
Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round. Source: Financial Chronicle/Indian Oil & Gas [Edited]
show less
|
SNAPSHOT: INTERNATIONAL
Policy Matters/Gas Pricing/Others
India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
show more
The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
show less
Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round.
Source: Financial Chronicle/Indian Oil & Gas [Edited]
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India mulls building natural gas reserves
India is considering building emergency stockpiles of natural gas, on the lines of strategic oil reserves, to deal with supply disruption amid the country’s growing dependence on fuel and its import. The government wants domestic consumption of natural gas, a cleaner fossil fuel, to rise two-and-a-half times by 2030 and is encouraging big public and private investments in gas production, import, transport and distribution infrastructure. Local demand increased 5.5% between April and October to 35.1 BCM, increasing dependence on imports to 47% of total consumption from 44% a year earlier.
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The panel formed by the petroleum and natural gas ministry to evaluate the need for strategic gas storage and prepare a plan to go about building and managing these. The panel has representatives from ONGC, GAIL and Oil Industry Development Board. “We would need to answer two key questions: First, how do we build the storage, and second, what would be the right business model to operate it,” the person said. The panel plans to hire consultants soon and hopes to finalize a report in about six months, he said. Most heavy gas consuming countries already have natural gas storage in place, primarily for supply security. About 30% of gas storage capacity is in the US, a major producer and consumer of natural gas. Russia, Ukraine, Canada and Germany together account for another 40%. China, a late entrant to the game, too is fast building gas storage facilities. About three-fourths of underground gas storage is in depleted gas and oil fields while the balance is distributed between salt caverns and aquifers. “The simplest way to start would be to launch depleted field storage as it would be cheaper and less time-consuming than a salt cavern or rock cavern,” said the person quoted earlier. The first storage in India could come up at a site connected to a pipeline, the person said, adding that the reserve would store imported gas, which could be released when needed in the domestic market.
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-mulls-building-natural-gas-reserves/articleshow/67184324.cms
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Domestic gas pricing to be freed as global rates decline
In one of the last reform initiatives in the oil and gas sector, aimed at scaling up local production from fields of ONGC, OIL, Reliance and Vedanta, the government is set to open pricing of domestic gas. A panel, led by the NitiAayog vice-chairman, has also suggested free-market pricing for natural gas produced from domestic fields to boost output.
show more
The NDA government’s reform initiatives have already allowed free gas pricing for production from small and marginal blocks, difficult high pressure/deep water blocks and output from the newly bid blocks under the hydrocarbon exploration licensing policy (HELP). The pricing and marketing from pre-NELP exploration blocks and those under the new exploration licensing policy (NELP) are still regulated. This will be lifted gradually, once the new policy is approved. Under the current formula, the current gas price is at $ 3.36 per MMBtu. At present, producers can charge market rates for gas from deep sea and other difficult fields but rates must stay below a government-prescribed ceiling that’s linked to prices of alternative fuels. The price ceiling is currently at $7.67 per MMBtu. The new policy will look into this ceiling price as well, sources said. Domestic gas output shrank by 1% in April-October of FY19 raising the demand of expensive imported LNG. The government is aiming to increase gas production by two-and-a-half times by 2030, which would help raise the fuel’s share in the energy mix to 15% from 6%. At present, of the 310 exploration blocks awarded under various bidding rounds (discovered field, pre-NELP and NELP), 189 blocks/fields are operational. 17 blocks under nomination are being operated by Oil and Natural Gas Corporation and Oil India Limited. The petroleum exploration licences (PEL) for domestic exploration and production of crude oil and natural gas were granted under four different regimes over a period time: nomination basis – PEL, pre-NELP discovered field, pre-NELP exploration blocks and NELP. As many as 117 entities-11 public sector undertakings, 58 private firms and 48 foreign companies — are operating in these blocks after the ninth NELP round.
Source: Financial Chronicle/Indian Oil & Gas [Edited]
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