The department of expenditure of the union finance ministry suggested the oil ministry to fix a ceiling price for domestic natural gas under the Rangarajan formula. On June 27, the Cabinet Committee on Economic Affairs cleared the adoption of the Rangarajan pricing formula for domestic natural gas from April 2014. But while adopting this formula, the expenditure department suggested that gas producers should not be allow
Category: Oil & Gas
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GAIL plant does not receive gas from KG-D6
Liquefied Petroleum Gas (LPG) plants of GAIL has reportedly stopped receiving natural gas from Reliance Industries' KG-D6 block because of falling output in the area. Supply to the plant was stopped because gas output at KG-D6 declined to just over 14 mmscmd which is enough to met the requirement of fertiliser plants. Fertiliser plants are given top priority in gas supplies
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India to cooperate with Iraq on various sectors
At a bilateral meeting with the leaders of Iraqi government, Union oil Minister M Veerappa Moily offered the participation of Indian companies with expertise in areas such as refineries, petrochemicals and fertilisers in various projects in the gulf nation. He recently visited Iraq to attend the 17th meeting of the India-Iraq Joint
Commission. Moily stressed on the need to strengthen the relationship between the two countries given that Iraq is the s
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OIL produced 3.7 mn t of crude oil in FY13
State-run oil and gas explorer Oil India (OIL) could produce only 3.701 million tonne of crude oil during 2012-13 compared to 3.884 million tonne in 2011-12 because of hostile work environment in Assam. The company was targeted to explore 3.95 million tonne in 2012-13, but it could not and the figure was this year's target. OIL posted a gross income of Rs 11,456.32 crore
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CBM output set to rise in India
In the next two years, about 6.5 million standard cubic meters per day of coal bed methane (CBM) could be produced by Essar Oil and Reliance Industries from their respective blocks. This output is enough to generate about 1,573 mw of power, reports indicate. 1 mmscmd gas can generate 242 mw power, reports indicate
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Crude tanker segment may not perform well
Analysts expect that the crude tanker segment of the shipping industry may not perform well in the near future because of the sharp decline in the import of crude oil by one of the largest consumer of energy, the USA. The US has become self-sufficient for crude, because of its the boom in the shale oil industry in the country. US imports of crude oil declined significantly by almost 4 to 4.5 million barrels a day. That is not being mad
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Govt to release remaining dues to OMCs
Media reports indicate that the government would release the remaining dues to state-run oil marketing companies (OMCs) towards the under-recoveries incurred by these firms while selling fuel products at subsidised price. Earlier, Prime Minister Manmohan Singh asked the finance ministry to pay Rs 45,000 crore as its share of subsidy for Jan-Mar 2013 quarter
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BPCL lays pipeline to supply ATF
State-run oil marketing company (OMC) BPCL laid 33 km underground pipeline from its Kochi refinery to the local airport to ensure smooth supply of aviation turbine fuel (ATF) at an investment of Rs 41 crore. Earlier, aircrafts in the airport used to get jet fuel from the refinery by tanker trucks. The company set up the pipeline considering that transport of ATF by pipeline is safer than tanker lorry delivery
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IOC ropes in Essar Projects for safety improvement project
Indian Oil Corporation (IOC) roped in Dubai-based engineering firm Essar Projects to implement process safety related improvements at its terminals and depots across the country. According to the contract, Essar Projects is responsible for basic and detailed design and project management relating to implementation of various HSE requirements in 109 POL terminals or depots of IOC acro
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Petronet considering GAIL proposal to renegotiate deal
Petronet LNG is said to be considering the proposal to renegotiate the Sale Purchase Agreement for natural gas it decided to source from Gorgon in Australia. GAIL India recently suggested Petronet to renegotiate the contract the latter entered into in August 2009 with Australia on grounds that the scenario changed worldwide since then