Category: Gas and Oil

January 10, 2016

( ) According to  chief Ajit Someshwar Canada-India Foundation (CIF), Canada, a leading oil producer, has been grappling with falling crude prices and reduced investment in energy sector and it is the right time for Indian companies to go for joint ventures there in a major way.He said that there are huge opportunities for India’s private as well as public to enhance cooperation in the hydrocarbon sector.He said “Canada is a energy surplus country. Energy prices are extremely low now and it is hurting Canada. This is the right time for India’s public sector and private sector companies to invest in oil sector in Canada. We can also collaborate in the nuclear energy sphere.”Prime Minister Narendra Modi had visited Canada in April last year during which both sides had agreed to expand ties in the energy sector. Canada had also agreed for long-term supply of uranium to India. 
 

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January 9, 2016

( ) According to OIL statement,  A research unit of Oil India (OIL) has achieved success in lowering oil content in water bodies at drilling pits, making these areas conducive for the growth of aquatic flora and fauna. It said that this was the first time such an integrated approach of bio-remediating oil contamination in water bodies (effluent pits) has been tried out in OIL.
The first of its kind ‘Pilot Scale Bio-Remediation’ initiative by OIL’s newly established Biotechnology Section was started in August last year to lower the oil content in DEPs to less than 10 parts per million (ppm) within six months. The oil content has been brought down to a level of 10 ppm from original level of 2,00,000 ppm. The pilot study was carried at drilling effluent pits at Amgurigaon in Dibrugarh district. 
The statement added that the technology used in the pilot scale study involves augmentation of the rate of bio-degradation of floating oil in the pits with the help of micro-organisms (bacteria) which are naturally occurring in the environment along with incorporation of bacterial species capable of rapid degradation of oil contamination. Measurement of the oil content in effluent water, using internationally accepted standard protocols and advanced Gas Chromatographic Analysis of various fractions of crude oil corroborate the

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January 9, 2016

According to an official press statement, the Ministry of Petroleum and Natural Gas has launched an online initiative to seek suggestions from LPG consumers across the country, which will help in providing efficient and friendly service. Two online discussion forums – Citizen-Friendly Services and Increasing LPG Coverage in the Country – have been launched and are available on myGov.in and mylpg.in.The initiative is part of steps being taken to observe 2016 as the ‘Year of LPG Consumers’.

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January 9, 2016

ONGC has struck a gas reserve in the form of hydrates – otherwise known as ‘fire ice’ – off the Andhra coast that could turn out to be four times larger in terms of yield than Reliance Industries Ltd’s discovery of 2002, India’s biggest so far.Sources in the Directorate General of Hydrocarbons said the discoveries have been made in Blocks 982, D3, D6 and D9 in the Krishna-Godavari basin, off the Andhra coast.These blocks are 30 Kms south-west of Reliance industries Ltd’s natural gas block KG-D6. 
The discovery was made in August last year by the second exploratory expedition under the government’s gas hydrate programme in collaboration with scientists from US and Japan, which have separately inked research MoUs with India.The discovery validates the government’s stress on finding alternative sources of energy and efforts to attract investments in the exploration business. It would also be a boost for PM Modi as he moves to promote a gas-based economy in tune with India’s commitment to mitigate climate change. rrespective of the cur rent depressed oil and gas price price scenario, which makes fresh investments unviable, the hydrates discovery would put India back in reckoning in terms of prospectivity . It would also return the spotlight on the eastern offshore, described as `India’s gas bowl’ and `India’s North Sea’ after Relian

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January 8, 2016

According to Indian Oil Corp, it has tied up with trucking and logistics start up Fortigo, which will help it address issues related to ferrying of its fuel by small truck owners. In a statement, IOC said,Fortigo will “provide technology-based solutions to truck owners for managing their inventories and planning their operations and journeys effectively to save time and reduce transportation costs.”.

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January 8, 2016

The government has waived customs duty on import of goods for producing oil and gas from 69 idle fields of ONGC and Oil India Ltd that will be auctioned this year. In a notification, the Revenue Department said ‘nil’ customs duty will apply to goods imported “in connection with petroleum operations undertaken under specified contracts under the Marginal Field Policy (MFP)”. The policy provides for a single licence to be bid out to operators to explore and extract all forms of hydrocarbon resources including conventional oil and gas as well as unconventional resources like coal-bed methane (CBM), shale gas or oil and gas hydrates. The Union Cabinet had on September 2 last year approved MFP to bring idle fields of ONGC and OIL to production at the earliest so as to augment domestic production of oil and gas. ONGC and OIL could not monetise the fields for years due to various reasons such as isolated locations, small size, prohibitive development costs, technological constraints and unfavourable fiscal regime.

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January 8, 2016

Consumers may have to pay only a small price for Bharat Stage (BS)-VI fuels, which would cost marginally more than BS-IV petrol and diesel, but all would depend on benchmark trading prices as well as rupee exchange rate at the time of rollout in April 2020. 
Oil company executives said BS-VI fuels may roughly cost 50-60 paise a litre more if the current oil and currency rates were to prevail in 2020, given the wholesale price differential between the grades. 
Pump prices are largely tuned to bulk prices at regional trading hubs such as Singapore and the rupee exchange rate. Other factors and taxes also contribute towards the final price. 
The Auto Fuel Vision & Policy 2025 in June 2014 had recommended a 75 paise cess to recoup Rs 64,000 crore of the Rs 80,000 crore investment projected for producing cleaner fuels. 
The recommendation came after refiners indicated an incremental increase of Rs 2.64 and Rs 1.43 per litre for producing cleaner petrol and diesel, respectively. This was in addition to the Rs 35,000 crore invested till then for graduating from BS-III to BS-IV in the Metros and chosen cities and BS-II to BS-III in the rest of the country. 
The capital servicing and operational costs was lower at 91 paise a litre for petrol and Rs 2.20 for diesel for shifting from BS-III to BS-IV. But moving fr

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January 8, 2016

( ) Power and fertiliser companies  are likely to  benefit from the RasGas and Petronet LNG deal, which will help them buy more gas from the state-run company and boost their margins as the fuel becomes cheaper.Petronet LNG reworked its long-term contract with RasGas on December 30 to halve the price of the imported fuel and waive a penalty of Rs 12,000 crore for lifting lower volumes than contracted. The price of gas is expected to decline to $6-7 per million British thermal units from $12 per million Btu.Brokerages said gas transmission and marketing companies would gain from the lower prices, which would boost demand from power and fertiliser units that had avoided taking supplies from Petronet LNG because the long-term contracted gas was one of the most expensive in the world, substantially higher than spot prices.According to a report by  rating agency ICRA, “The major impact on the fertiliser industry of the decrease in RasGas LNG prices would be in the form of decrease in subsidy receivables and working capital requirements. Further, it will lead to a decrease in interest cost due to lower working capital intensity in case of delays in subsidy payments, thereby improving net profitability. It will also favourably impact the profitability of revamped urea capacities earning import parity pricing-based pricing and those o

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January 8, 2016

( ) The Delhi government’s experimental odd-even vehicle rationing rule has had an unexpected spin-off, sharply boosting demand for CNG kits in the aftermarket. Manufacturers and distributors of CNG kits in the national capital region say they have recorded a 25-30% increase in demand in the past 10 days. While the CNG kits are traditionally fitted on small cars from Maruti SuzukiBSE 0.20 %, Hyundai and Honda ??mainly because CNG is cheaper than other motor fuels ??some are now retrofitting them on luxury vehicles such as Mercedes-Benz and BMW as well. 
The experimental odd-even rule is in place until January 15, but many believe the early success of it could encourage the Delhi government to consider making it permanent at some point of time. CNG-powered vehicles are currently exempted from the rule, and that is driving the demand for the kits, said industry executives. With authorities looking to discourage people from buying diesel-run vehicles, and implementation of the odd-even rule with exemption on CNG vehicles, demand for new CNG vehicles could also go up. In the aftermarket, CNG kits are retrofitted mostly in petrol vehicles as diesel-to-CNG conversion requires major modifications to the engine. Though there is no official estimate on the exact volume of CNG cars, industry sources indicate 8-9% of vehicles in the domestic market

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January 8, 2016

( ) According to petrol pump owners, petrol and diesel sales have dropped nearly a quarter in Delhi in the week following the launch of the odd-even policy that allows private cars to ply only on alternate days as per the last digit in their registration numbers.
Nitin Goyal, a petrol pump owner, said the volume at his station at Karkardooma in East Delhi has fallen nearly 25% since the odd-even formula was rolled out on January 1. Cars account for about 40% of his sales and bikes for the balance. Pumps dependent more on cars have seen a steeper fall. Delhi has about 400 filling stations, with each selling 470,000 litres of petrol and diesel on average every month. Ajay Bansal,  chief of All India Petroleum Dealers Association said “This can fall to 300,000 litres this month if sales were to slide at this pace.”

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