State-run oil marketing companies (OMCs) and upstream firms like ONGC are awaiting the final decision from the government on adopting the formula for compensating the OMCs for under-recoveries. While union finance ministry wants the adoption of export-parity pricing model to compensate for under-recoveries, petroleum ministry opposes the proposal as it woul
Category: Oil & Gas
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Liberalisation of gas sector may incentivise production
Some industry observers suggest the government to liberalise natural gas sector in India in order to incentivise exploration and production by private companies. They point out that like in the US, if gas market is liberalised, it will help IndiaÂ’s economy in more ways than what can be predicted. Some industry observers argue that producers will be attracted to invest in gas exploration including shale gas.
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PNGRB to open bids for CGD project
Petroleum and Natural Gas Regulatory Board (PNGRB) would soon open the technical bids submitted by oil and gas firms for launching city gas distribution (CGD) business in key cities. After clearing the technical bids, the downstream regulator would open financial bids for the third round of auct
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DGH not inclined to clear RIL proposal
The Directorate General of Hydrocarbons (DGH), the technical arm of the union petroleum ministry, is not in favour of approving the Reliance Industries' (RIL) proposal to conduct separate testing for D-29, 30 & 31. Earlier in May, the firm sought permission for conducting separate tests at its three gas discoveries i.e D-29, 30 & 31. This is a shift away from the com
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Gas-based power plants need 72 mscmd gas
Media reports quoted a top source from the union power ministry as saying that natural gas-based power plants in the country need 72 mscmd of gas to operate at 75 per cent plant load factor. However, at present they get only 27 mscmd gas, which enable them to operate at only 29 per cent plant load factor, reports suggest
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Ministry gets request from OIL for gas revision
In order to meet the increasing cost of production and also to enable the proposed capital investment of over Rs 19,000 crore in the 12th Five Year Plan period (2012-17), Oil India (OIL) asked the union oil ministry to raise natural gas price. In a letter to the union oil ministry, the firm said its cost of production of natural gas from the nominated fields was increasing on sustained
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US govt allows export of LNG to non-FTA nations
Department of Energy of the US government gave conditional approval for export of locally produced LNG to non-FTA (free trade agreement) countries from Freeport Terminal on Quintana Island in Texas. The Department of Energy, in its 132 page order, said the proposed exports may result in net economic benefits to the U
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Ministry circulates note seeking hike in gas price
Union Petroleum ministry has circulated a note to the Cabinet Committee on Economic Affairs (CCEA) seeking hike in the price of natural gas produced by both private and state-run companies. The ministry's proposal, if accepted by the CCEA, may benefit firms like ONGC, OIL, Reliance Industries (RIL), Cairn India who are selling the fuel at a pre-determined price
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Cairn’s 3 oilfields hold 2.19 bn barrels of reserves
Cairn India's three oil fields - Mangala, Bhagyam and Aishwariya - in its Rajasthan block had an in-place oil reserve of 2.19 billion barrels as of March 31, 2013 compared to 2.090 billion barrels as on March 31, 2012. It may be noted that these three fields produced oil at the rate of about 170,000 barrels per day for most part of
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Environment ministry seeks details from GSPC
Union Ministry of Environment and Forests has reportedly asked Gujarat State Petroleum Corporation (GSPC) to submit details on certain critical environmental issues identified during laying of pipeline for its project in Andhra Pradesh. It may be noted that the company is laying pipeline for transporting natural gas from Deen Dayal West block in KG Basin in KG-OSN-2001/03