Reports indicate that the government is considering the proposals of liquefied petroleum gas (LPG) distributors seeking key changes on the proposed distribution policy. During a recent presentation to the union petroleum and natural gas ministry, the distributors called for raising the present ceiling for refill sales by 50 percent. The distributors argue that the existing ceiling on refills is ba
Category: Oil & Gas
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Govt aims to save upto Rs 100 bn via DBT scheme
The government plans to save Rs 8,000 crore to Rs 10,000 crore annually on subsidy expenditure towards liquefied petroleum gas (LPG) following the partial roll out of Direct Benefits Transfer (DBT) scheme. The government recently decided to provide subsidies on cooking gas cylinders by crediting the amount directly in the bank account of beneficiaries in 20 di
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Offshore oil and gas blocks hold great potential in India
Industry players opine that India's offshore exploration sector holds tremendous potential in terms of oil and gas reserves. According to SK Srivastava, Chairman of Oil India (OIL), offshore exploration will play an increasing role in India's efforts to source crude oil domestically. Of the domestic crude oil output of 38 million ton, the offshore sector accounts for 21 million ton, followed by 1
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Oil ministry to send proposal on gas pricing to cabinet
Union petroleum Minister Veerappa Moily informed that he would send the final proposal on the pricing of natural gas to the cabinet committee on economic affairs (CCEA) soon. Industry players are keenly awaiting the government's decision on natural gas pricing as it would have a bearing on their financials. Natural gas producers like Reliance Industries (RIL) are seeking hike in the price of do
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ONGC to buy gas detection system
State-run exploration firm Oil and Natural Gas Corporation (ONGC) produces crude oil and natural gas from 110 fields. Of them, 15 contribute 73 per cent of the production. These fields are old.
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APGDC, KSPL sign pact for Rs 50 bn LNG terminal project
The Andhra Pradesh Gas Distribution Corporation (APGDC) and the Kakinada Seaport (KSPL) signed a memorandum of understanding (MoU) for the proposed Rs 5,000 crore LNG terminal project. APGDC is a joint venture between GAIL Gas and Andhra Pradesh Gas Infrastructure Corporation (APGIC). The proposed floating, storage and re-gasification unit (FSR
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India must sort out transit fee, pricing of gas
While the Indian government showed interest in the Iran-Pakistan natural gas pipeline project, it remains to be seen how it arrives at a consensus with Pakistan on the transit fees for using the pipeline. During his recent visit to Iran, Indian External Affairs Minister Salman Khurshid showed interest in the project. Reports from New Delhi also indicate that the Iranian Oil Minister Rostam Qassemi is scheduled to visit New Delhi som
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GAIL studies impact of tariff order
GAIL India is studying the impact of the recent tariff order by the Petroleum and Natural Gas Regulatory Board (PNGRB) on its financial position. Some reports indicate that the May 10 order of PNGRB may cause Rs 500 crore loss for the company. In its order, the downstream regulator retrospectively reduced the tariff charged by GAIL for its Krishna Goda
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Petronet to rope in contractors for LNG terminal project
In order to set up gas storage facilities, re-gasification plant and marine facilities for its proposed 5 million ton LNG terminal in Gangavaram, Petronet LNG will rope in contractors. In order to select contractors, the company invited bids from eligible entities. Some months ago, the board of the firm approved the plan to set up the LNG terminal, which would be the first
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Consumers prefer local gas due to high cost of imported gas
Even as several power and fertiliser plants are suffering from insufficient availability of natural gas, they are averse to buy imported gas because of its unacceptably high price. Natural gas-based power producers want a larger share of the domestically-produced cheaper gas, which is priced between $4.2 (RIL's D6 gas) and $5.73 per unit, which is far less than the price of imported gas in the s