MonitorsPublished on Jul 23, 2018
Energy News Monitor | Volume XV; Issue 6
COAL IMPORTS TO MEET GROWTH IN DEMAND

Coal News Commentary: June – July 2018

India

According to some reports, imports by power stations fell about 15 percent from a year ago in the first two months of the fiscal year to March caused mainly by a 32 percent drop in overseas purchases by plants designed to use imported coal, according to calculations based on data from CEA, a unit of the power ministry. Higher coal prices and a weaker rupee forced them to cut generation. At the same time, plants that use domestic coal saw a 35 percent spurt in imports as they tried to bridge a shortfall in domestic supply. A court order last year barred some Indian power plants that use imported coal and have fixed-tariff contracts from passing on an increase in fuel costs to customers. Adani Power Ltd.’s 4.6 GW plant at Mundra in Gujarat, which runs mostly on imported coal, used merely 6 percent of its capacity during April and May, power ministry data show. Essar Power’s 1.2 GW imported coal-fired generator in the same state was closed during the months. Average thermal coal prices at Australia’s Newcastle port, considered an Asian benchmark, have risen about 25 percent in the period from a year ago. While the government seeks to discourage imports of thermal coal and sees the decline as an achievement, rising domestic supplies are failing to keep pace with demand. Plants designed to run on Indian coal are now increasingly importing the fuel for blending, as state miner CIL fails to meet requirements. The Power Minister asked state generators, who had earlier been advised to curtail coal imports, to buy from overseas if they needed to as shortages continued to persist. India’s power plants imported 8.64 mt of coal in the two months ended May, compared with 10.13 mt a year earlier. Plants that run exclusively on imported coal, accounted for most of the imports at 5.07 mt while those using domestic coal purchased 3.57 mt from overseas during the period this year.

The advisory from the power ministry to import coal comes in the wake of states demanding more coal to run their thermal units in face of growing demand. In Tamil Nadu, power demand shot up by 2383 MW this summer. If TANGEDCO is to import five mt of coal to meet the shortage, it would cost the state discom around $5,000. The coal consumption during April 2018 increased by 3.9% compared this year. TANGEDCO started importing coal regularly from 2004-05. The imports started in 2004-05 at one mt but as the demand for power increased and more thermal units were commissioned, the amount of coal imported also increased. In 2016, Coal India Limited requested Tamil Nadu government to advise TANGEDCO to stop imports and use indigenous coal available with CIL.

Increasing coal import by power plants to compensate for supply shortages by CIL would lead to a rise in electricity tariffs, analysts said. Absorbing higher imported fuel costs by electricity discoms, instead of raising tariffs, would add to losses of such state-owned entities. Reining in costs of electricity generation at state-owned power plants was a major factor which enabled discoms under the UDAY to halve their financial losses to ₹ 173.52 billion in FY18. Power plants which blend domestic and imported coal to increase efficiency imported 3.6 mt of coal in the first two months of FY19, which is 39% more than the same period in FY18. The development comes at a time when global coal prices have gone up by more than 23% CAGR from FY16 to about $100/tonne. Research firm India Ratings estimates that if there is a 6-7% rise in electricity demand, imported coal needs to increase to 62 mt in FY19 from 56 mt, even if coal availability to the power sector increases by the standard 4% rate. Overall coal imports are, however, lower than last year because a number of power plants designed to run only on imported coal have shut down their units after the Supreme Court ruled in April 2017 that imported coal price hikes cannot be passed on to discoms through higher tariffs. However, power plants with supply contacts with CIL can claim compensation for higher costs for coal imported due to less than contracted supply. CIL has increased its supplies to the power sector by 15.4% to 122.8 mt in the first three months of FY19, backed by a 15% growth in rake loading to 217 rakes per day. However, supply shortages remain. CIL said it has registered a 15.2 percent growth in coal production during the first quarter ended June 2018 to 136.87 mt.  While the offtake was spurred by higher rake loading, the overall coal offtake zoomed to 153.43 mt at the end of June, translating into a growth of 11.7 percent. CIL announced that the number of power stations having critical stock has come down from 30 at the beginning of the fiscal to 16 as of June 2018. Of the overall coal supplies of the company during the first quarter ending June, supplies to the power sector accounted for 80 percent and CIL said that a request has been made to thermal power plants to boost their coal stocksData available with the Central Electricity Authority shows that seven power projects have less than seven days coal, while eight are operating with less than four days stock.

Power sector accounted for 80 percent of coal supplies during the period. CIL has been working with the Coal and Railways ministries for enhanced rake loading of 217.04 rakes per day on an average to the power sector during the first quarter of FY’19 against 189.9 rakes in the same period last year, registering a growth of 14.9 percent. The company produced 44.88 mt in June 2018, reflecting an increase of 5.20 mt in absolute terms over corresponding month of last year. The company liquidated 16.56 mt of its pit head coal stock during the first three months of the current fiscal.

Ahead of the paddy season during which power generation at privately-owned case II projects has been hit by shortage of coal, the Punjab government has written to the union ministry of coal to consider these plants at par with the state-owned thermal stations while allocating the fuel stocks. The state government stated that being case II projects, the 1,400 MW Rajpura thermal plant and the 1,920 MW Talwandi Sabo thermal plant sell entire electricity generated to meet the state’s demand and forced shut down of these affects the availability of power forcing the corporation to go in for regulatory measures, including power cuts. Punjab State Power Corp Ltd has allowed the Talwandi Sabo plant and the Rajpura plant to import 3 lakh and 2 lakh metric tonnes of coals to meet the fuel requirements during the paddy season.

Delhi has warned of blackout in the national capital claiming that in Badarpur and Dadri I and II power plants just two days coal reserve was left. The railways and the Coal India were claiming that the fuel was being supplied. Load shedding faced in June was the “lowest” when the city’s electricity demand hit an all-time high. The power subsidy scheme for tenants is also likely to be announced soon. Delhi’s peak electricity demand had hit an “all-time high” of 6,934 MW this summer at 3:28 pm on June 8.   The city government has been planning to extend power subsidy scheme to tenants through “prepaid electricity meters”. Under the power subsidy scheme, the Delhi government provides 50 percent subsidy on electricity tariffs up to 400 units on domestic electricity connections for all residents of Delhi.  About 600 transformers have been installed in and “150 more transformers would be installed till year end”.

On the other hand MAHAGENCO, the state-run power generation company that regularly complains of coal shortage is now selling its share of coal to private companies. Its own plants are generating at half load even as private companies are making hay. These claims apart, four power plants of MAHAGENCO— Bhusawal, Nasik, Paras and Parli — have alarmingly low coal stock at present. When power plants have very less coal they do not generate at full capacity. Bhusawal has two days stock and its coal is being sold to private companies. Nasik has only one day’s stock. A public interest litigation in the high court on coal shortage in Mahagenco power plants, expressed shock over this revelation.

Customs, Excise and Service Tax Appellate Tribunal has set aside an order that imposed penalties of ₹ 175 million and ₹ 12.5 million on Delhi-based Knowledge Infrastructure Systems Private Ltd and its promoter respectively. They are accused of inflating the value of coal imports from Indonesia. In February 2017, the company appealed in the tribunal against the order passed by the adjudicating authority.

The GSPCB granted fresh consent to operate to SWPL, a unit of Jindal Steel Work, to handle 400,000 tonnes of coal per month at MPT. The board restricted Adani Mormugao Port Terminal Pvt Ltd to handle 400,000 tonnes of coal per month at the port.  The decision to allow coal handling was taken in view of the source appropriation study conducted by IIT-Mumbai to ascertain the cause of pollution in the port town. Coal operations should commence in the port town so that the cause of air pollution in Vasco can be ascertained. The board has permitted SWPL to handle 0.4 mt of coal for next nine months at berths 5A and 6. Adani will also handle 400,000 tonnes of coal at the port. Adani had never exhausted its permissible limit. Adani used to earlier handle 520,000 tonnes. The board has reduced 25% of coal handling of Adani, and they have approached the board to enhance their coal handling limit. The board allowed MPT to handle varied cargo at its offshore cargo handling facility, mooring dolphin, barring coal. GSPCB also allowed the port to handle varied cargo at berth 9. MPT used to handle iron ore at this berth and as a result of iron ore stoppage, the port had approached the board to grant them consent to operate other cargo for financial stability.

The government is planning to offload a stake in state-run CIL to speed asset sales. The Department of Investment and Public Asset Management is finalizing the amount of stake to be offered in the financial year ending March 31. If needed, the government could explore the option of staggering the sale offer in two tranches. The government’s plan to raise about $12 billion in the current year from asset sales is at risk after a high-profile plan to sell Air India ground to a halt as no prospective suitors emerged. CIL has reported strong shipment numbers in recent months due to demand from power plants. The government holds more than 78 percent in CIL. It had previously sold a 10 percent stake in January 2015, mopping up ₹ 225.5 billion.

Coal Mine Surveillance and Management System and the mobile App “Khan Prahari” designed to prevent pilferage of coal and its illegal mining has been launched.

Rest of the World

A vessel carrying a shipment of coal from the US switched its destination to Singapore from China, according to ship tracking data, amid an escalating trade row between the world’s top two economies. The cargo was loaded on the Navios Taurus in Mobile, Alabama, on May 28 and had been due to arrive in China on July 18, but is now due to land in Singapore on July 13, data shows. One of the other vessels, called Partnership, reached China. China has threatened hefty import tariffs on 659 US products. Duties will start on some 545 items, but the government has not specified when coal and the remaining products could be hit.

Earlier, a vessel carrying 164,000 tonnes of coal from the US reached Caofeidian port in northern China, ship tracking data showed. The vessel named Partnership is on schedule, while Beijing plans to impose steep tariffs next month on a list of US products, including thermal coal and coking coal due to mounting trade friction between the world’s two leading economies. At least three US coal shipments, including Partnership, are on their way to China, but traders are worried they may end up casualties of the escalating trade dispute. The other two vessels, Navios Taurus and West Trader, are expected to arrive at Jingtang port on July 18 and August 10 respectively, according to data.

US coal mining companies are worried President Donald Trump’s intensifying trade dispute with China could hurt their booming export business, one of the ailing sector’s most important lifelines, according to industry players. Beijing added coal and other energy products to a list of US goods facing import tariffs in retaliation for Trump administration levies. For instance, traders said China National Building Material International, one of the biggest metallurgical coal importers in China, pulled back from supply talks with US coal broker XCoal and miner Consol Energy shortly after Beijing’s announcement. Consol had been in talks with China to supply up to 1 million tons per year of metallurgical coal but would not confirm whether the deal would be delayed. The US Energy Information Administration said US coal exports to Asia doubled from 15.7 mt in 2016 to 32.8 mt in 2017. Exports to China totaled 3.2 mt in 2017, up from zero in 2015 and 2016, according to the Energy Information Administration. The coal industry’s concerns mirror the unease spreading in US farm country over unintended consequences of the Trump administration’s protectionist stance, which has roiled foreign market for American crops. The farm and coal industries are critical Trump supporters that the president and his Republican party are relying on to help them retain control of Congress in the mid-term elections in November. The addition of coal to the list of more than 650 items facing higher tariffs from China also came as a shock to Chinese steel mills and trading firms. Just last month, Beijing had been encouraging them to buy more US coal to narrow the trade gap. Coal operators like Pennsylvania’s Consol had been in talks with Chinese buyers, and hope those talks revive.

Australian thermal coal prices have broken through $120/tonne for the first time since 2012, driven up by strong consumption in Asia and spot market buying by Japanese utilities to meet demand through the rest of 2018. Thermal coal cargoes for prompt export from Australia’s Newcastle port last settled at $120.10/tonne. That’s the highest close since November 2012 and up by 140 percent from record contract lows in late 2015/early 2016. The price surge has been driven by strong demand from China to feed healthy power demand and industrial growth, despite a drive to shift industry and millions of households from coal to cleaner natural gas.

The major coal producing province of Shanxi in northern China will impose special emissions restrictions on big industrial sectors by October as part of its bid to curb smog. The province produces more than 900 mt of coal a year, a quarter of China’s total, and is also a major gas and petrochemical producer. China promised in January to impose “special emissions restrictions” on major industrial sectors in 28 cities in northern China, including the four in Shanxi. It said firms that failed to comply with the deadlines would be fined, ordered to renovate or shut down completely. The 28 cities were all part of a special winter anti-smog campaign that began in October last year and imposed tough restrictions on traffic, coal consumption and industrial output. In its air quality plan for 2018, Shanxi promised to close down 22.4 mt of annual coal capacity and 1.9 mt of steel capacity this year. It will also create “no-coal zones” and convert thousands of coal-fired boilers to cleaner-burning gas.

Coal companies need to make a “fundamental shift” in how they control exposure to coal dust in underground mines to address the recent surge in black lung disease rates, according to the National Academies of Sciences, Engineering and Medicine report. The report found that even though coal operators largely comply with recently tightened rules requiring monitoring for coal dust, those measures may not be sufficient. The Government Accountability Office report said that the federal fund to help coal miners disabled by black lung disease will require a multibillion-dollar taxpayer bailout if Congress does not extend or increase the tax on coal production that funds it. The coal industry has been lobbying Congress to ensure that scheduled reduction in the tax it pays into that fund goes forward, arguing the payments have already been too high.

The Mongolian government submitted plans to parliament to list a chunk of the state-owned company that holds the giant Tavan Tolgoi coal mine. The IPO comes as the country looks to kickstart the long-delayed development of one of the world’s largest coking coal deposits, with international coal prices picking up after years in the doldrums. Mining Minister Sumiyabazar Dolgorsuren presented a bill to parliament proposing the sale of up to 30 percent of the project on domestic and international stock markets. The government said that it would also speed up plans to build a $1 billion coal-fired power plant near the mine, as well as a 247-kilometre railway that would help deliver Tavan Tolgoi’s coal to the Chinese border. Tavan Tolgoi, in the Gobi desert about 250 kilometres from the Chinese border, has an estimated 7.4 billion tonnes of reserves and is considered one of Mongolia’s flagship mining projects. It is run by state-owned Erdenes Tavan Tolgoi. However, it has been held back by poor infrastructure and weak coal prices as well as disputes over the role foreign investment should play in Mongolia’s economic development.

KOSPO bought 160,000 tonnes of coal for loading between September and October via a tender that closed, the utility said. KOSPO originally sought to buy a total of 480,000 tonnes of coal but declined to buy 320,000 tonnes due to high prices, the utility said. It had not yet decided whether to re-issue a tender for the cancelled amount. The utility purchased 160,000 tonnes of coal from Indonesia, the source said, without giving price and supplier information.

The World Bank said it has not yet decided whether to support a planned 500 MW coal-fired power plant in Kosovo, the first major energy project in the Balkan country in more than two decades. Kosovo’s government signed a deal with US based but London-listed power generator ContourGlobal to build the plant at a cost of around €1 billion ($1.2 billion). Kosovo is struggling with power shortages. Around 90 percent of its electricity is produced in two ailing coal-fired plants that are seen as among the worst polluters in Europe. Environmentalists have complained the plant could lock Kosovo into a future powered by lignite – the dirtiest form of coal.


CEA: Central Electricity Authority, GW: gigawatt, MW: megawatt, CIL: Coal India Ltd, mt: million tonnes, TANGEDCO: Tamil Nadu Generation and Distribution Corp, discoms: distribution companies, UDAY: Ujwal Discom Assurance Yojana, FY: Financial Year, MAHAGENCO: Maharashtra State Power Generation Company, SWPL: South West Port Ltd, MPT: Mormugao Port Trust, GSPCB: Goa State Pollution Control Board, US: United States, KOSPO: Korea Southern Power Co Ltd


NATIONAL: OIL

India’s oil import bill balloons 57 percent to $12.7 bn in June

17 July. India’s import bill of crude oil and petroleum products swelled 57 percent to $12.73 billion in June as compared to the same month last year. The ballooning of oil import bill comes on the back of a 60 percent rise in Brent, the benchmark for half the world’s crude, to $76 per barrel last month. Energy hungry India meets over 82 percent of its crude requirement through imports. The recent surge in international oil prices has resulted in worsening of Current Account Deficit (CAD) and fiscal deficit for the domestic economy apart from an inflated petroleum subsidy and high inflation. The increase in global crude oil prices led to CAD widening by $16.60 billion to a five-year high in June, wholesale inflation shooting up 5.77 percent, a four-and-a-half year high, and retail inflation growing to a five-month high of 5 percent. Total oil import bill in the first quarter of the current fiscal increased 49 percent to $34.64 billion, as compared to $23.18 billion in the corresponding quarter last fiscal. The country’s CAD is likely to hover between $22 billion to $31 billion in the current financial year ending March 2019. According to Petroleum Planning and Analysis Cell (PPAC), the statistical arm of the oil ministry, India’s crude oil import bill, excluding petroleum products, is expected to increase 24 percent to $109 billion in the current fiscal. Moody’s Investor Services has said that the surge in international oil prices will result in the country’s petroleum subsidy ballooning to Rs 53,000 crore, putting pressure on the country’s fiscal deficit. The Union Budget 2018-19 had allocated Rs 24,933 crore as petroleum subsidy for the current financial year, a mere 2 percent increase over the Revised Estimate of Rs 24,460 crore allocated last financial year.

Source: The Economic Times

Goa top fuel guzzler, per capita petrol sales 6 times national average of 19 kg

17 July. Goa consumes more petrol and diesel on a per capita basis than any other state in the country, while Bihar uses the least. Per capita sales of petrol in Goa were 119.7 kilogram (kg) in 2017-18, over six times the national average of 19 kg, according to oil ministry data. In diesel, at 225.6 kg, Goans consumed almost three-and-half times the fuel than the national average of 66.9 kg. By contrast, in Bihar, per capita sales were 6.7 kg for petrol and 22 kg for diesel, about one-third the national average. Economic activity, tourist flow and inter-state variation in taxes largely contribute to the differences in per capita consumption of petrol and diesel among states, according to the Indian Oil Corp (IOC). Goa top fuel guzzler, per capita petrol sales 6 times national average of 19 kg Tourism as well as dependence on diesel for power drive up per capita consumption of petrol and diesel in some union territories as well. Puducherry, Andaman & Nicobar Islands, Dadra & Nagar Haveli and Daman & Diu have sharply higher consumption than the national average. A lower economic activity and higher population in Bihar keep it at the bottom of the fuel consumption chart. Some states with lower taxes on fuel benefit from higher fuel sales as vehicle owners from bordering states drive down to filling stations offering cheaper fuel. For instance, a resident of Noida, Uttar Pradesh, is more likely to tank up his car in Delhi as the fuel is relatively cheaper in the national capital. Similarly, a truck driver going to Mumbai from Delhi is more likely to stop at a filling station in Haryana where fuel is cheaper due to lower taxes. This is one key reason Haryana has the second highest per capita consumption of diesel at 203 kg. In overall volume, Maharashtra topped the chart with sales of 3226,000 metric tonnes of petrol and 8673,000 metric tonnes of diesel. Uttar Pradesh was the second-biggest consumer in both petrol and diesel.

Source: The Economic Times

Petrol, Diesel prices reduced for the first time in July

16 July. Oil Marketing Companies (OMCs) reduced the retail price of petrol and diesel across the nation for the first time, after increasing fuel prices nine times in July. Indian Oil Corp (IOC), the country’s largest fuel retailer, reduced petrol prices in Delhi by 11 paise and diesel rates by 14 paise per litre, bringing down the prices of the two automobile fuels to Rs 76.84 and Rs 68.47 per litre, respectively. The price of petrol sold in other cities — Mumbai, Kolkata and Chennai — were also reduced to Rs 84.22, Rs 79.51 and Rs 79.76 per litre, respectively. Diesel prices in Mumbai, Chennai and Kolkata were reduced to Rs 72.65, Rs 72.28 and Rs 71.03 per liter, respectively. The retail prices of fuel in Delhi had hit an all-time high of Rs 78.43 per litre for petrol and Rs 69.31 per litre for diesel on 30 May but were reduced later.

Source: The Economic Times

Battle for ATF pipelines in Mumbai hots up: RIL vs PSUs

15 July. The battle over lucrative pipelines supplying jet fuel to Mumbai airport is hotting up with a powerful formation of Reliance Industries Ltd (RIL) and private airlines Jet Airways and Emirates trying to break the stranglehold of PSU (Public Sector Undertaking) oil firms BPCL (Bharat Petroleum Corp Ltd) and HPCL (Hindustan Petroleum Corp Ltd). BPCL and HPCL built and operate two separate pipelines from their Mahul refineries in Mumbai to supply jet fuel or aviation turbine fuel (ATF) to airlines at the Chhatrapati Shivaji International Airport at Santacruz in the city. RIL, which produces a fourth of India’s ATF, wants access to these pipelines to be able to get a pie of Rs 10,000 crore fuel trade that happens at one of Asia’s busiest airports. While RIL and airlines feel competition among fuel suppliers would bring down costs, HPCL and BPCL said the pipelines are their “captive” infrastructure to take products out of the refineries and giving third party access to them would hurt their operations and profits. The Petroleum and Natural Gas Regulatory Board (PNGRB) supported the RIL idea and sought industry comments on declaring pipelines as a common carrier and giving third parties access. If implemented, it would also an airline to import fuel and use the infrastructure at the refineries situated on the coast to transport it to the airport. A company like RIL can ship the fuel from its refineries at Jamnagar in Gujarat to Mumbai and use pipelines to take it into the airport. RIL said the present ATF demand at Chhatrapati Shivaji International Airport is 1.4 million tonnes per annum and it is “absolutely essential” that access to the BPCL and HPCL ATF pipelines is available to other jet fuel marketing oil companies to service this demand. RIL wanted PNGRB to declare the twin pipelines as a common carrier and give access to other entities on a non-discriminatory basis. Also, it wanted “hook-up” facility within BPCL and HPCL refinery complexes to be able to feed ATF into the pipelines. The Airports Authority of India said the move would ensure cheaper ATF is available to the benefit of passengers and result in optimal utilisation of existing pipeline infrastructure.

Source: Business Standard

Can petrol, diesel prices be made same for four wheelers: SC asks Centre

13 July. The Supreme Court (SC) directed the Centre to apprise it as to whether petrol and diesel can have an equal pricing for four wheelers and private cars after the Environment Pollution Control Authority (EPCA) said pollution from diesel vehicles was a cause of concern. A bench of justices Madan B Lokur and Deepak Gupta suggested that the government could contemplate fixing price of diesel and petrol on par for four wheelers, other than goods vehicles. Advocate Aparajita Singh, assisting the apex court as an amicus curiae in the matter, told the bench that the real concern was pollution from diesel vehicles. She said that people go for diesel vehicles since they have high power fuel efficiency. The amicus told the bench that one of the EPCA’s report show there was “leakage” of funds from environment compensation charge (ECC) which was levied by the apex court for purchase of diesel vehicles. The court then and said that Germany was contemplating banning use of diesel vehicles. The amicus told the court that European countries were trying to fix NOx (nitrogen oxide) pollution standards since they were grappling with pollution and Germany was trying to do away with diesel vehicles. The bench said that government could consider fixing price of diesel and petrol on par for four wheelers. The counsel, appearing for vehicle manufacturers, told the apex court that BS-VI fuel, which is likely to be made available in National Capital Region (NCR) from April 2019, would solve the problem of pollution from diesel vehicles. The amicus said that Indian Oil Corp (IOC) was upbeat about Hydrogen fuel cell-powered vehicles and they have the requisite technology for it. The government had also said that reducing the price gap between petrol and diesel would not be “economically viable” and would lead to inflation.

Source: Business Standard

LPG subsidy jumps 60 percent as government maintains prices to help consumers

12 July. Cooking gas or liquefied petroleum gas (LPG) subsidy has jumped by over 60 percent in last two months as the government maintains price line despite rising international rates, Indian Oil Corp (IOC) Chairman Sanjiv Singh said. All LPG consumers have to buy fuel at market price. The government, however, subsidises 12 cylinders of 14.2 kilogram (kg) each per households in a year by providing the subsidy amount directly in bank accounts of users. The higher subsidy was meant to keep rates of subsidised LPG in check, Singh said. International rates of LPG, which was used as a benchmark for pricing of domestic fuel, have been on the run since June. Non-subsidised or market priced LPG price was Rs 653.50 per 14.2 kg bottle in the national capital in May, which rose to Rs 698.50 (Rs 48 pr cylinder) in June. This month price has further risen by Rs 55.50 to Rs 754 in Delhi. Non-subsidised LPG is the one that consumers buy after exhausting their quota of below market rate fuel. It is also bought by those who have voluntarily given up subsidy and by commercial establishments. As per tax rules, GST (Goods and Services Tax) on LPG has to be calculated at market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates. This has meant that GST is calculated every month on the rate at which domestic non-subidised LPG is priced. With rates on the rise, the tax has also risen, resulting in a minor increase in rates for subsidised users, Singh said. Subsidised LPG was priced at Rs 491.21 per cylinder in May, which rose to Rs 493.55 in June and Rs 496.26 this month, Singh said. As a result of higher global rates, the price of non-subsidised LPG in Delhi will increase by Rs 55.50 per cylinder. Oil firms revise LPG price on 1st of every month based on average benchmark rate and foreign exchange rate in the previous month.

Source: Business Standard

India’s Iranian oil imports in June fall as sanctions fears bite

11 July. India’s oil imports from Iran declined by 15.9 percent in June, the first month after the United States (US) said it would reimpose sanctions on the country, according to data from shipping and industry sources. In June, India imported 592,800 barrels per day (bpd) of oil from Iran compared to 705,200 bpd in May, the data showed. India, Iran’s top oil client after China, has asked refiners to look for alternative oil supplies as the nation may have to drastically cut imports from Tehran to comply with the renewed US sanctions. Lower purchases by private refiners dragged down India’s June imports from Iran although state refiners stepped up purchases. State refiners, accounting for about 60 percent of India’s nearly 5 million bpd of refining capacity, lifted about 10 percent more Iranian volumes in June compared to May, at about 454,000 bpd, the data showed. In April to June 2018, the first quarter of this fiscal year, India’s oil imports from Iran rose by about 24 percent to about 647,000 bpd from the previous quarter, the data showed. Imports by state refiners during the period more than doubled to about 413,400 bpd from 191,700 bpd, the data showed.

Source: Reuters

NATIONAL: GAS

ONGC to be taken on board for rerouting gas pipelines passing from Surat airport

14 July. The state government and the Airports Authority of India (AAI) have jointly decided to take the Oil and Natural Gas Corp (ONGC) on board to work out a solution to reroute or cover its gas pipeline in a time bound manner. The buried sour gas pipeline of ONGC passing from Surat airport is proving a major deterrent in the proposed extension of runway from 2,905 metre to 3,810 metre. The decision in this regard was taken at a meeting held between AAI chairman Guruprasad Mohapatra and chief secretary of Gujarat JN Singh in Gandhinagar. It must be noted that ONGC had invited expression of interest (EoI) for safe operation of the buried pipelines six months ago, but things are moving at a snail’s pace. There are two 36 inch and 42 inch diameter South Bassein Hazira Trunk (SBHT) pipelines passing through the airport. These pipelines were laid in the year 1985 and 1996 respectively to transport sour dry natural gas from Bassein Platform A (BPA) and Bassein Platform B (BPB) offshore process platforms to onshore gas processing plant located at Hazira in Surat. As on date, the volume of gas being transported is around 33-36 million metric standard cubic metre per day (mmscmd) and 2,500-3000 cubic metre per day of condensate at an operating pressure of 60-80 kilogram per square centimetre.

Source: The Economic Times

More industries to get LNG connections soon

13 July. More industrial units here are set to switch over to liquefied natural gas (LNG) from conventional fuels or LPG (liquefied petroleum gas). IOAGPL (Indian Oil Adani Gas Private Ltd) is nearing completion of distribution network to Cochin Special Economic Zone (CSEZ) in Kakkanad, where 12 industrial units have applied for securing LNG connections. According to the IOAGPL, they must lay pipes in two small stretches to complete the network to CSEZ. The IOAGPL has started registration and plumbing works at Aluva, Thrikkakara, Maradu and Eloor municipalities. IOAGPL has given 1,200 PNG connections in Kalamassery municipality. The company had got permission for digging up roads in six wards each at Kalamassery and Thrikkakara municipalities. A total of 8,500 registrations have been completed in these municipalities.

Source: The Economic Times

City gas project faces further delay in Kochi

13 July. The failure of the Kochi corporation to grant road-cutting permission to Indian Oil Adani Gas Private Ltd is causing delays in implementation of the city gas project. Two months have lapsed since the council decided to revise the road restoration charges as per a new directive by the PWD, but the corporation authorities haven’t sent the file to work standing committee, which is responsible for it. According to standing committee chairperson P M Harris, it is up to the corporation secretary, who acts as per the advice of the mayor, to send the item to the standing committee.

Source: The Economic Times

Five highways will have installations of LNG stations by next year

12 July. Leading oil marketing companies such as Petronet LNG Ltd, Indian Oil Corp (IOC), BPCL (Bharat Petroleum Corp Ltd) and the like have huddled together to put up close to twenty LNG (liquefied natural gas) stations on various national highways to provide for LNG fed truck transport movement following instruction from the government, Petronet LNG Ltd Director (Finance) V K Mishra said. That tenders would be issued for this purpose in next 15 days. Addressing a Conference on “City Gas Distribution in India” under aegis of PHD Chamber of Commerce and Industry, Mishra clarified that this association of oil marketing companies have fructified on a pilot project base to feed roughly 5,000 trucks with LNG on leading five national highways, beginning 2019. According to him, the necessary permission to put up such LNG distribution center on national highways has already been given since the government has asked the oil marketing companies to put up such stations to attack the twin issues of fuel cost savings as well sufficiently addressing the issue pertaining to increasing fuel pollution. In addition, the higher element of efficiency would also be brought in with large number of trucks running on national highways with LNG as it is deemed to be a cleaner fuel with virtually no element of pollution in it, pointed out Mishra. He also clarified that India is inspired for this initiative partly with China where close to three lakh of trucks are operation on their highways with LNG fuel and the team of oil sector experts is currently visiting China to study there this system. In order to broad base the exercise of running trucks on LNG fuel to begin with and subsequently passenger buses also on the same fuel on national highways, the oil companies have already asked the truck manufacturers such as TATAs and Mahendras to accordingly make such trucks as can be fuelled with cheaper and cleaner fuel such as LNG and the like.

Source: Business Standard

Adani top contender among 400 bids for city gas business licences

11 July. The Adani group emerged as the top contender for city gas network licences by staking claim for 52 out of the 86 geographical areas tendered out by the government, while the Reliance Industries Ltd (RIL)-BP combine pulled out at the last minute before the ninth auction round closed. Altogether, 400 bids with an estimated investment potential of Rs 70,000 crore were received by the Petroleum & Natural Gas Regulatory Board. In total, the geographical areas on offer envisage starting CNG (compressed natural gas) and PNG (piped natural gas) services in 174 districts across 22 states. State-run oil and gas companies bid aggressively. GAIL Gas Ltd, the city gas distribution arm of GAIL (India) Ltd, bid for close to 30 cities. Other subsidiaries of GAIL, Mahanagar Gas Ltd, and Gujarat State Petroleum Corp also put in bids. Adani Gas Ltd bid for 32 cities on its own and another 20 cities in joint venture with state-owned Indian Oil Corp. IGL, which retails CNG in the NCR, bid for 13 cities. India Gas Solutions Pvt Ltd, the RIL-BP joint venture formed to retail natural gas in India, looked at license for 15 cities but did not place any bid at the close of bidding.

Source: The Economic Times

NATIONAL: COAL

Assam CM hands over Barak Valley coal scam to CBI Guwahati

16 July. Assam Chief Minister (CM) Sarbananda Sonowal decided to hand over the probe of coal scam in the Barak Valley to the Central Bureau of Investigation (CBI). Sonowal directed the chief secretary and senior officials of the Home Department to take steps for handing over the inquiry of the coal scam to the CBI. In February this year, the Assam government had announced a CID (Criminal Investigation Department) enquiry into an alleged syndicate of illegal coal trade and smuggling operating in the state. The opposition Congress has, however, been demanding a CBI enquiry into the scam saying the matter allegedly involved Coal India Ltd and it was beyond the CID’s mandate.

Source: The Economic Times

Low coal stocks likely to hit power generation in Haryana

13 July. Following the low supply of coal, there has been a dip in its stocks to a critical level at the thermal power plants in Haryana and this may affect the thermal power generation in the state. The coal stock at Panipat thermal power station is critically low as only 10,000 million tonnes (mt) of coal is available, which is just sufficient for one day. The coal stock of 37,000 mt and 60,000 mt at Yamunanagar and Khedar power plants is sufficient for four and six days, respectively. The coal stock at CLP Jhajjar power plant has stocks for just one more day even as one unit is already on the verge of shutting down due to the short supply of coal. The daily requirement of coal at Panipat, Yamunanagar and Khedar thermal plants is 7,900 mt, 8,300 mt and 10,300 mt, respectively. Haryana has received only 9 rakes of coal in July, which is half of the scheduled coal supply. Panipat thermal has received two rakes, Yamunanagar one and Khedar three. As per the Central Electricity Authority norms, all thermal plants are supposed to have coal stock for 25 days before the onset of monsoon as the coal supply gets disrupted during the rainy season.

Source: The Economic Times

Vedanta may partner Anglo American to bid for coal mines in India: Agarwal

11 July. Diversified metals and mining group Vedanta will team up with international miner Anglo American to bid for coal mines in India for the next auctions, Chairman Anil Agarwal said. Agarwal’s holding firm, Volcan Investments, had bought a structured product last year, giving him an option to buy up to 21% in Anglo American for about $6 billion by end of next year, though he maintained he’s happy with what he has right now.

Source: The Economic Times

NATIONAL: POWER

Power plant will be built to meet power needs of Gautam Budh Nagar: Sharma

17 July. Union Minister Mahesh Sharma said that a power plant will be built to meet the electricity demands of Gautam Budh Nagar district and the region. Uttar Pradesh Khadi and Village Industry Minister Satyadev Pachauri said manufacturers and exporters not only earn foreign exchange, but also pay tax and create job opportunities in the country. Buyers from several countries , including the US, Russia, Australia, Brazil, Belgium, Egypt, France, Germany, Greece, Italy, Japan, Kenya, Spain, will be placing orders, the Export Promotion Council for Handicrafts (EPCH) said.

Source: Business Standard

Maharashtra government to spend Rs 73 bn on repair of electricity poles

14 July. The Maharashtra government has prepared a plan to repair the electricity poles, wires and other systems at a cost of Rs 7,300 crore, Energy Minister Chandrashekhar Bawankule has said. He claimed that maintenance of electricity poles, wires and other systems had not been carried out in the last 30 years. He said that Rs 4 lakh compensation is given to the kin of electricity-related accident victims as per the rehabilitation department of the government and that the injured are given the complete expenses of their medication. He said that the cheque of the relief amount to the kin of the deceased is given within seven days, while those injured are paid in three months. Divisional directors have been authorised to deal with cases at local level, Bawankule said. He said the current demand of power in the state is 14,400 MW and the supply is being made as per the demand.

Source: Business Standard

‘Puducherry’s power tariff less compared to other State’

13 July. Puducherry Minister of Agriculture R Kamalakannan said the power tariff in the Union Territory was lesser than that levied in the southern States of Kerala, Andhra Pradesh and Karnataka. He said the tariff was finalised by the Joint Electricity Regulatory Authority (JERA) and the territorial government did not have any role in the finalisation. He said power was purchased from the other State Electricity Boards and the Central power grids at Rs 3.84 per unit and consumers were levied Rs 5.27 per unit. He said the Department of Electricity had several commitments to meet establishment charges and the tariff was fixed by the JERA and the government had no role in fixing the tariff.

Source: Business Standard

EESL signs pact to install 1 mn smart electricity meters in Haryana

11 July. Energy Efficiency Services Ltd (EESL), an arm of the power ministry, announced it has signed two pacts with Haryana power discoms (distribution companies) to install 1 million smart electricity meters in the state. The Memorandum of Understanding entail supply and installation of Smart Meters in Gurugram, Faridabad, Hisar, Karnal, Panipat and Panchkula within 3 years in a phased manner. Under the agreement — signed with Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) — EESL will fund, build, operate and manage the Smart Metering Solution implementation in the project area for a defined period and monetize its investment on per month annuity basis. Smart electricity meters are expected to enable consumers to monitor their consumption pattern and the corresponding cost, leading them to manage their energy use and reduce power wastage, and providing long-term carbon and financial savings. EESL is currently implementing the Smart Meter National Programme (SMNP) with an aim to replace 250 million conventional meters with smart meters. The objective is to improve billing efficiency, enabling alignment with the loss trajectory agreed by the discoms under the government’s Ujwal Discom Assurance Yojana (UDAY) scheme.

Source: The Economic Times

Gujarat government sets up rescue team for Tata, Adani, Essar power projects

11 July. The Gujarat government has set up a panel to suggest within two months a rescue plan for three large generation projects belonging to the Tata, Adani and Essar groups in the state, with combined PPA (power purchase agreements) for over 8,000 MW and outstanding debts in excess of Rs 22,000 crore. As the Central regulator, Central Electricity Regulatory Commission Chairman Pramod Kumar Deo had granted tariff hike sought by these imported coal-based projects after fuel costs rose due to changes in Indonesian law. The relief was granted under PPA provisions of ‘force majeure’ and ‘change in law’. But the consumer states refused and the matter landed in the Supreme Court, which last year struck down the relief. Unable to sustain operations at full capacity due to ballooning debt, the promoters reduced supplies and last year offered to sell 51% stake in the projects for Rs 1 to the Gujarat government. The state has PPAs for 4,800 MW from these projects. The remaining PPAs are spread among Maharashtra, Punjab, Rajasthan and Haryana. All of them are buying expensive power to bridge the shortfall, resulting in a higher tariff.

Source: The Economic Times

NATIONAL: NON-FOSSIL FUELS/ CLIMATE CHANGE TRENDS

Mytrah Energy bags 100 MW wind power project in Maharashtra

17 July. Independent power producer Mytrah Energy (India) Pvt Ltd announced it has bagged a contract for setting up a 100 MW wind power project from Maharashtra State Electricity Distribution Company Ltd (MSEDCL) through competitive bidding. Six companies had participated in the reverse bidding collectively submitting quotes for a cumulative capacity of 821.8 MW. The bidders were given a choice to reduce the quoted capacity during re-auction. During the e-auction, Mytrah quoted a tariff of Rs 2.86 for 200 MW capacity and won the bid for a capacity of 100 MW to supply power to the distribution company. Other winners in the e-auction included Adani Green Energy and KCT Renewable Energy Pvt Ltd, each with 75 MW at a tariff of Rs 2.85 per unit; Inox Wind with 50 MW capacity; Hero Wind Energy Pvt Ltd with 75.6 MW at Rs 2.86; and Torrent Power which bid for 146 MW but was awarded 124.4 MW capacity at Rs 2.87 per unit. The auction was conducted to seek bids to procure 500 MW wind power supply from bidders based on a tender issued on 21 December 2017. MSEDCL issued the Letter of Award on 28 June 2018, followed by the signing of power purchase agreement (PPA) on 16 July. The project is expected to be commissioned within 18 months from the date of execution of PPA. Mytrah Energy has a portfolio of over 40 operational and under-development power projects across nine states in the country with an aggregate capacity of 2,000 MW.

Source: The Economic Times

India struggles to stay cool amidst global warming

17 July. India is among the nine most populous countries where people are at risk from lack of access to cooling as global warming continues to threaten health and climate, according to a study of a UN (United Nations)-led initiative. The study, ‘Chilling Prospects: Providing Sustainable Cooling for All’, is the first ever report to quantify the growing risks and assess the opportunities of the global cooling challenge. The report said there are over 1.1 billion people globally who face immediate risks from lack of access to cooling. The report is based on an analysis of 52 vulnerable countries in hot climates. Among the 1.1 billion people face cooling access risks are 470 million people in poor rural areas without access to safe food and medicines and 630 million people in hotter, poor urban slums with little or no cooling to protect them against extreme heatwaves. Nine countries across Asia, Africa and Latin America, which have the biggest population, are facing significant cooling risks, the study said. The countries are India, Bangladesh, Brazil, Pakistan, Nigeria, Indonesia, China, Mozambique and Sudan.

Source: The Economic Times

India’s trade ministry urges duty on Chinese solar cells, modules

16 July. India’s trade ministry recommended imposing a 25 percent duty on imports of solar cells and modules from China for one year to try to counter what it sees as a threat to domestic solar equipment manufacturing. Falling prices of solar cells and modules, over 90 percent of which India imports from China, have triggered a decline in the cost of solar power generation and led Indians increasingly to adopt the technology. India plans to make renewable power account for 40 percent of its total installed capacity by 2030, from 20 percent currently. The proposed safeguard duty, which would apply for two years in total to imports from China and Malaysia, would be reduced in the second year to 20 percent for six months and then 15 percent for six months. The proposed duty is less than the 70 percent recommended by Indian authorities in January. The recommendation, contained in a report published by the ministry and to be submitted to the government for approval, is intended to address a serious threat to the domestic solar manufacturing industry from Chinese imports, the directorate general of trade remedies (DGTR) said in the report. Indian solar cell and module manufacturers said cheap Chinese imports were hurting the domestic industry, while Chinese manufacturers say imports are helping India accelerate its renewable energy adoption program.

Source: Reuters

Essel plant to generate power from waste in Maharashtra

16 July. Essel Infraprojects Ltd (EIL) will construct Maharashtra’s first Waste to Energy (WtE) plant with a capacity of 800 tonnes of waste, it was announced. For the purpose, the EIL has set up a subsidiary – the Nagpur Solid Waste Processing & Management Pvt Ltd, to develop the project with an investment of Rs 219 crores. Besides the Nagpur Municipal Corp will contribute Rs 70 crore as viability gap funding to execute the project under the Swwachh Bharat Mission. Once operational, it will treat 80 tonnes of the total 1,100 tonnes wastes generated in Nagpur city, Chandra said. The EIL will also operate existing landfill site, develop two more and operate and maintain them for 13 years, ensuring mitigation of fires, air, and ground water pollution.

Source: Business Standard

Gujarat’s MS University chalks out roadmap for solar rooftop plants

16 July. Gujarat government’s decision to allocate Rs 1.14 crore from Department of Climate Change has acted like a shot in the arm of M S University. The University is all set to adopt major green initiatives including adopting groundwater recharge systems, installing solar rooftops, increasing the green cover of the campus, segregating of garbage and making the campus plastic free. University’s construction division and the Internal Quality Assurance Cell (IQAC) have prepared a roadmap for this. To increase its green cover, the university will planning to add 5,000 more trees in next three years’ time. The first phase to improve its green cover will start from Pratapsinhrao Parisar (earlier known as Donor’s Plaza ground) where 300 trees will be planted soon. The plantation drive will cover the Halls of Residence and other spots on the campus where there is scope of increasing the green cover. On the solar front, the university already has installed and commissioned solar panels with total capacity of 725 KW. The university has now set the target to scaling up its total capacity to 1 MW within this year. Presently, grid-connected solar rooftop panels have been installed at Faculty of Technology and Engineering, Hansa Mehta Library and university head office.

Source: The Economic Times

MoEF&CC undertaking a study on petcoke ban before banning its import, SC told

16 July. The Ministry of Environment, Forest and Climate Change (MoEF&CC) informed the Supreme Court (SC) that it was undertaking a study on the ban on petroleum coke (petcoke) before it decided on imposing a ban of its import. The court was also informed that the ministry of petroleum and natural gas (MoPNG) was in favour of imposition of a ban on the import of petcoke on environmental grounds. The apex court-appointed Environment Pollution Control Authority (EPCA), in its report “Mandating Acceptable Fuels and recommending ban on sale and use of furnace oil and pet coke in NCR” in April 2017, had recommended that the distribution, sale and use of furnace oil and petcoke be strictly banned in National Capital Region. In October last year, the SC had upheld the ban on use of petcoke in New Delhi and neighbouring states of Haryana, Uttar Pradesh and Rajasthan, after the air pollution level in the national capital reached hazardous level due to increased smog.

Source: Livemint

Indian Army inaugurates first mega solar power plant in Ambala Cantonment

16 July. Indian Army’s 1 MW solar power plant was inaugurated at the Ambala Cantonment. The plant has been established under the aegis of headquarters 2-Corps. This was conceptualized and planned as a part of the ‘go green’ initiative. The garrison engineer, Major Arun Kumar Umar, who supervised the construction project, informed that the facility was spread over an area of five acres and consisted of 3120 solar panels.  The complex is integrated with the 66 kilovolt substations that supplies electricity to Ambala Cantonment. Constructed at a cost of 5.91 crore, the plant will generate 14,50,000 unit of electricity annually and save Rs 1.50 crore expenditure on electricity.

Source: The Economic Times

10 new biogas plants to put Delhi’s waste to good use, cut landfill fires

16 July. Under an ambitious project to manage the biodegradable waste, 10 biomethanation plants will be set up across the city to generate biogas that will generate electricity and enriched organic manure from waste. North corporation will set up four such plants of 5 tonnes per day capacity each. Similarly, south corporation will also set up 4 plants and east Delhi will get two. The overall project for waste management under the corporations has been sanctioned by the ministry of housing and urban affairs, and is being carried out under urban development fund. Each plant is expected to cost around 3 to 5 crore. Corporations will now have to focus on making the residents segregate their waste into dry and wet category. Swati Sambyal, an expert on waste management at Centre for Science and Environment, said that while the composting infrastructure requires more space, biomethanation plants are much more compact and could be a solution for waste management in the capital. Around 60% of the waste generated in Delhi falls under the category of wet waste but despite laws making it mandatory, only minimal segregation at household level is taking place. The cities that are leading in waste management have devised strategies like compositing. Kerala’s Alappuzha has focused on biogas model and thousands of homes have constructed biogas plants in their homes, and use it for part of their cooking. Alappuzha now has no landfills — the dump yard for waste is no longer used, and the municipality is now planning to build a sports stadium there.

Source: The Economic Times

Hybrid power unit set up at Vidyut Bhavan in Patna

16 July. The Bihar State Power Holding Company Ltd (BSPHCL) has set up a micro unit at Vidyut Bhavan in Patna as part of its green project under which electricity is generated using wind and solar energy. According to the BSPHCL, the micro unit utilizes solar energy and wind to generate around 1 kilowatt of electricity in a month, which can supply 120 units of electricity to households. The micro unit was set up recently on a pilot basis, but the department will soon install two more such units — one each in Patna and Rohtas districts. The micro unit would remain productive 24X7 since wind energy is not limited by sunlight. However, the production will be comparatively higher during daytime. Such units survive seasonal variations. Solar energy gets produced more during the summer whereas wind velocity is higher during the winter, the official said and added installation of such a micro unit of hybrid power cost around Rs 2 lakh. State Energy Minister Bijendra Prasad Yadav said the state government was at work to reduce dependency on coal and gas power generation. The state energy department is contemplating more investments for hybrid energy generation, he said.

Source: The Economic Times

‘DMRC to get green power from Rewa solar plant’

15 July. The Delhi Metro Rail Corp (DMRC) will start getting green power from the Madhya Pradesh-based Rewa Ultra Mega Solar Ltd (RUMSL) in the next two months, the first project in the country to supply power to an inter-state open access customer. The 750 MW project in Rewa district, spread over an area of 1,590 acres, is among the largest single-site solar power plants in the world. The DMRC had signed a power purchase agreement (PPA) with the RUMSL to get green power from the latter to run its trains in the national capital. Madhya Pradesh Renewable Energy Principal Secretary Manu Srivastava said that the DMRC would get around 25 percent of the total power generated by the RUMSL, which would meet around 90 percent power demand of the DMRC. He said the RUMSL has started generating 10 MW power from July 6 this year. He said the DMRC would pay around Rs 3.67 for per unit of solar power, including the transmission charge. The DMRC is currently buying power at Rs 7 per unit. The MP Power Management Company Ltd, which supplies power to the state discoms, will get 76 percent of the power produced from the Rewa solar power plant, while the DMRC will benefit from the remaining 24 percent. He said RUMSL will go full steam by this year-end. Under the plant, three units of 250 MW each will produce a unit of green energy for less than Rs three, he said.

Source: Business Standard

Gujarat BSF out-posts to use solar energy to fight electricity crisis

14 July. In an innovative effort to fight electricity crisis in forward areas, Gujarat Frontier of the Border Security Force (BSF) is all set to use solar energy for its out-posts located in remote border areas, where no electrification is possible till date. Inspector General of Gujarat Frontier of BSF Santosh Mehra said there are two projects on solarisation, one is a five megawatt solar plant in Nalabet area in border district of Banaskantha and in another project 20 Border Out Posts (BoPs) will be lightened up with solar energy. BSF said that electricity produced from this plant will be used in various centres of BSF. The photovoltaic system is a method of converting solar energy into direct current of electricity by using the semi-conducting materials.

Source: The Economic Times

Vedanta offers Rs 25 bn for GMR’s Chhattisgarh thermal power plant

14 July. Vedanta quoted the highest offer of Rs 2,500 crore for GMR’s 1,370 MW thermal power plant in Raikheda, Chhattisgarh. The offered price estimates the cost of the plant at Rs 1.8 crore per MW, significantly lower than the Rs 6 crore per MW needed to set up a coal-based power generation asset. Adani Power is said to have quoted the second highest price, but it could not be immediately ascertained. GMR’s Chhattisgarh unit’s debt stood at around Rs 7,500 crore.

Source: The Financial Express

ACME bags 600 MW solar power project

13 July. Independent power producer ACME Solar said it has bagged 600 MW solar power project at SECI (Solar Energy Corp of India) 3,000 MW Interstate Transmission System (ISTS) Solar bid. Technical bids totalling 5,100 MW were received against the tendered capacity of 3 GW by 12 companies, it said. ACME bid for the capacity of 600 MW. ACME Solar constructs, owns and operates solar power plants in India. The company plans to execute this project in self-execution mode, it said.

Source: Business Standard

Approval for rooftop solar power projects on Delhi municipal buildings

13 July. South corporation, in its standing committee meeting, has approved the project to install 5 MW solar rooftop projects on the municipal buildings. The commissioner of south corporation, Puneet Goel, told the committee that Lok Sabha has also directed a study to be conducted in order to see the feasibility of the project for setting up a 12 MW plant in Ghuman Hera’s vacant land. The civic body has recently earned Rs 10 lakh by selling the surplus solar power that it generates from the existing units. SDMC (South Delhi Municipal Corp) has become the first municipal corporation in the country to generate solar energy by installing solar panels on the rooftops of its buildings and earn revenue in three months.

Source: The Economic Times

NTPC’s Rs 15 bn solar power plant inaugurated by MP CM

12 July. Madhya Pradesh (MP) Chief Minister (CM) Shivraj Singh Chauhan dedicated to the state, state-run power giant NTPC’s 250 MW Solar Power Plant in Suwasra, District Mandsaur. This project has been set up by NTPC at an investment of about Rs 1,500 crore mainly on non-agricultural land and generation of electricity has been achieved without affecting the natural eco-system with zero carbon emission, NTPC said. Under the Make in India initiative, this is one of the biggest solar plant developed using domestically manufactured Solar cells and modules. The Project has been commissioned in June 2017 and generated electricity is being supplied for consumption in MP, the sole beneficiary.

Source: The Economic Times

Floating solar plants may lose viability in India due to cost pressure

12 July. Efforts from state governments such as those of Maharashtra and Uttar Pradesh (UP) to develop floating solar plants might hit the financial-viability hurdle. Companies like JSW Energy have been planning to get into this business, while the Tatas and NTPC Ltd have already done pilots. Limited domestic availability of floats, however, is a big challenge. The industry has to depend on European or Chinese suppliers, which is not cost effective. The differential between a ground-mounted and a floating solar project does not make it viable in terms of product pricing, JSW Energy said. The company has plans to set up a combined floating solar capacity of 250 MW across various locations. In June, the Maharashtra government said that it had set up a committee for the development of a floating solar plant. UP was another state where the process to call for bids to develop a similar solar capacity on the Rihand dam was underway. Floating solar plants are considered an alternate option to tackle land availability issues. The concept involves setting up solar panels on floats placed on dams, lakes and similar water bodies. However, the indigenous production of floats, which substitutes land in a floating solar power set-up, at present, is minimal. In addition to the cost of imported floats, the logistic costs involved in transporting them to India are seen as a bigger challenge. The group is currently consulting Maharashtra’s state power generation company for setting up 250 MW of floating solar capacity. The country is yet to see bids submitted for a floating solar plant from potential power companies. JSW Energy will join the list of power producers like NTPC and Tata Power that have already experimented with floating solar.

Source: Business Standard

Azure Power wins 160 MW solar project in UP auction quoting tariff of Rs 3.55 per unit

11 July. Azure Power, New Delhi-based independent solar power producer, announced it has won a 160 MW solar power project in Uttar Pradesh (UP) in the latest auction conducted by UP New & Renewable Energy Development Agency (UPNEDA). Azure Power will sign a 25-year power purchase agreement with Uttar Pradesh Power Corp Ltd (UPPCL) at a tariff of Rs 3.55 per kilowatt hour, around 45 percent higher than the lowest tariff bid for a solar project in the country. The project is expected to be commissioned in 2019 and developed outside a solar park. With this win, Azure Power’s solar portfolio stands at 260 MW in UP. The company has a portfolio of 2,000 MW capacity projects in India.

Source: The Economic Times

INTERNATIONAL: OIL

Goldman Sachs expects volatile oil market, prices between $70 and $80 per barrel

17 July. Investment bank Goldman Sachs expects volatile oil prices in the short-term on the back of uncertainty over possible disruptions to supply, with benchmark Brent crude in a $70-80 per barrel range. Oil prices have declined sharply the past week as the Sino-United States (US) trade war intensifies and were hovering below $72 per barrel, not far from their lowest since mid-April. Goldman said it still expects Brent to retest $80 per barrel, although this may occur only late this year depending on US oil policies, rather than this summer as it previously expected. The bank said that the recent escalation in trade tensions was unlikely to have much impact on its 2018 oil demand growth view, but would likely create downside risks to its 2019 oil demand growth forecast of 1.6 million barrels per day.

Source: Reuters

Tullow Oil may halt Kenyan oilfield operations due to protest

17 July. Britain’s Tullow Oil said that it might be forced to shut down operations at its northern Kenyan oilfields if it cannot reach a deal to end protests by the local community that have disrupted activities to truck oil from the area. The protests, which began on June 27, interrupted a trucking scheme that aims to transport about 2,000 barrels per day of crude from northern oil fields to the coast. The pilot scheme was launched in June. The oil is being used to test flow rates and other technical issues before the start of full production and before Kenya starts oil exports via a pipeline to the coast. The pipeline is due to be constructed by 2022.

Source: Reuters

US shale oil output expected to hit record high in August: EIA

17 July. US (United States) oil output from seven major shale formations is expected to rise by 143,000 barrels a day to a record 7.47 million barrels per day (bpd) in August, the US Energy Information Administration (EIA) said. Production is expected to rise in all seven formations, with the largest gain of 73,000 bpd seen in the Permian Basin of Texas and New Mexico.

Source: Reuters

IHS Markit sees Canadian oil sands growth moderating after 2019

17 July. Canadian oil sands production will rise more than half a million barrels per day in 2019 and growth will moderate thereafter, according to a forecast by data firm IHS Markit. Canada has emerged as the primary source of heavy oil supply in the world as output from other large producers, such as Venezuela, has declined. However, the pace of growth of Canadian oil sands is uncertain after 2019 and depends on the timing of investment decisions that are yet to be made. By then, ongoing projects will be completed and an initial boost to production will slow down, IHS Markit said. Canada is expected to produce an additional 1 million barrels per day by 2027 from current levels, IHS Markit said.

Source: Reuters

Russia raises crude oil exports from Sakhalin-1 in Q3

16 July. Russia plans to boost crude oil exports from the ExxonMobil-led Sakhalin-1 project to between 260,000 to 266,000 barrels per day (bpd) in the third quarter (Q3) after major oil producers agreed to lift production at the end of June. The exports include 10 to 11 cargoes of Sokol crude to be lifted in July and 12 cargoes scheduled to load in August and September. Each cargo is 700,000 barrels. Sokol crude exports averaged at 215,000 bpd in second quarter, with 9 to 10 cargoes exported each month.

Source: Reuters

OPEC will continue to play important role in oil market to 2040

16 July. OPEC (Organization of the Petroleum Exporting Countries) will continue to play an important role in the oil market to 2040, according to a new report by Wood Mackenzie. In the report, the global natural resources consultancy said it expects production growth to continue in the US (United States) Lower 48 over the medium-term, but added that once the US plateaus, total non-OPEC liquids production will “lose its growth momentum and begin to decline slowly post-2030”.

Source: Rigzone

Norway oil workers’ strike accelerates, drillers fear contract losses

16 July. A strike by Norwegian offshore oil and gas workers accelerated when hundreds more walked out in a dispute over pay and pensions after employers failed to respond to union demands for a new offer. The strike has had a limited impact on Norway’s oil production so far, but some drillers warned of possible contract cancellations if the dispute goes on for a month or more. The expanded strike was not expected to have any immediate extra impact on oil or gas production beyond the closure of Shell’s Knarr field, which produces 23,900 barrels of oil equivalent per day.

Source: Reuters

Ireland to move oil reserves from UK over Brexit

15 July. The Irish government is planning to move 200,000 tonnes of its oil reserves from Britain as part of its Brexit preparations and will sign off on the move. Ministers will sign off on the decision to move the oil, which includes refined products, at a Cabinet meeting. Around 500,000 tonnes of Ireland’s 1.5 million tonnes of oil reserves are currently held overseas.

Source: Reuters

Syncrude Canada to cut August crude deliveries 35 percent after outage

14 July. Syncrude Canada told buyers it would cut crude deliveries in August by about 35 percent after an outage at its oil sands site in northern Alberta. Canada is the world’s fourth-largest oil producer and Syncrude’s nameplate capacity of up to 360,000 barrels per day represents about 10 percent of the country’s supply. Suncor Energy Inc, the biggest stakeholder in the northern Alberta project, said the site will resume some operations in July and reach full production in September.

Source: Reuters

OPEC does not want to see volatility in oil prices: OPEC President

12 July. OPEC (Organization of the Petroleum Exporting Countries) President Suhail al-Mazrouei said that volatility in the crude market was undesirable and OPEC prefers a more stable price environment, speaking after crude had its biggest one-day drop in two years. OPEC and other large producers are working on a long-term plan to build spare capacity that would cushion the market from unexpected outages, he said. When Libya reopened key oil exporting ports, global oil prices fell sharply, with benchmark Brent futures plunging 6.92 percent, the steepest one-day drop in two years. Tripoli-based Libya National Oil Corp said four export terminals were being reopened after a standoff that had shut down most of the OPEC member’s oil output.

Source: Reuters

Libya’s NOC reopens El Feel oilfield

12 July. Libya’s National Oil Corp (NOC) said that it was reopening the El Feel oilfield after resolving a dispute with guards over pay and benefits that shut it down in February. Production at El Feel was expected to reach 50,000 barrels per day (bpd) in two days, and 72,000 bpd three days later, NOC said. The restart is a boost for Libya’s oil industry, coming one day after an unrelated stoppage at major eastern oil terminals was ended. That disruption, which began in mid-June, had more than halved Libya’s national oil production from highs in February of 1.28 million bpd. Operations at fields linked to the eastern ports are gradually resuming, with production restarting at the 70,000 bpd Abu Attifel field. Both El Feel and Abu Attifel are operated by Mellitah Oil and Gas, a joint venture between NOC and Italy’s Eni. Libya’s oil production has been repeatedly disrupted by blockades and conflict over the past five years. Before a 2011 uprising threw the OPEC (Organization of the Petroleum Exporting Countries) member into turmoil, it was producing more than 1.6 million bpd.

Source: Reuters

INTERNATIONAL: GAS

Gas talks to continue with Ukraine and EU: Russian Energy Minister

17 July. Russian Energy Minister Alexander Novak said that three-way talks with Ukraine and the European Union would continue in the autumn, after he met representatives from Kiev and the European Commission in Berlin. He also reiterated a statement by Russian President Vladimir Putin that Russia was ready to prolong a gas contract with Ukraine that expires on 31 December 2019, once all legal disputes were resolved.

Source: Reuters

US to compete with Russia for Europe gas market: Trump

16 July. US (United States) President Donald Trump eased his tone about a Russian natural gas pipeline to Germany after a one-on-one meeting with President Vladimir Putin, shifting from the harsh criticism he’d levied in Europe. The Nord Stream 2 pipeline, which would double Russia’s current capacity to deliver natural gas direct to Germany under the Baltic Sea and circumvent Ukraine, a major supply route to the European Union, has been a sore point between the US and its allies over the past months.

Source: Bloomberg

Protesters at Iraq gas field demand jobs, better services

16 July. About 200 protesters gathered at the main entrance to Iraq’s Siba natural gas field, following more than a week of unrest over poor services sweeping southern cities amid political uncertainty. The crumbling oil hub of Basra and others parts of the Shi’ite heartland south have long been neglected, first by Sunni dictator Saddam Hussein and then Shi’ite-led governments after him. Similar protests have occurred in the past. Residents of the southern oil-exporting city of Basra have gathered at the main gate to three major oil fields — West Qurna 1, West Qurna 2 and Rumaila.

Source: Reuters

Total closes $1.5 bn deal for Engie’s upstream LNG business

13 July. French oil and gas major Total said that it has completed a $1.5 billion deal to acquire Engie’s upstream liquefied natural gas (LNG) business to become the second-largest player in the global LNG market. Under the deal, Total said it would make additional payments of up to $550 million to Engie if there was an improvement in the oil markets in the coming year. The deal will see the group manage an overall LNG portfolio of around 40 million tonnes per year by 2020 and increase its share in the United States market, with a 16.6 percent stake in Engie’s Cameron LNG project, Total Chief Executive Officer (CEO) Patrick Pouyanne said.

Source: Reuters

INTERNATIONAL: COAL

China June coal imports jump 18 percent as utilities speed buying

13 July. China’s coal imports in June rose 18 percent from a year ago to 25.47 million tonnes, the data from the General Administration of Customs showed, as utilities went on a buying spree to shore up electricity generation. June’s imports also rebounded from 22.33 million tonnes in May, the data showed, after traders said China relaxed customs checks to let in foreign supplies. Major Chinese cities such as Wuhan in Hubei and Hefei in Henan province reported heavy loads on their power grid and indicated that they might started rationing electricity. In the first half, coal imports rose to 146.19 million tonnes, up 10 percent from a year earlier, data showed.

Source: Reuters

INTERNATIONAL: POWER

Dominion Energy plans $1.5 billion power plant sale

17 July. Dominion Energy Inc is working with JPMorgan Chase & Co. to seek buyers for two power plants in Pennsylvania and Rhode Island. The Richmond, Virginia-based company could fetch about $1.5 billion from the sales of its natural-gas-fired Fairless and Manchester Street Power Stations. Dominion said that it would raise $1 billion to $1.5 billion selling non-core assets to pay down debt and to ensure that it will meet a key financial objective.

Source: Bloomberg

Dubai’s DEWA starts testing at UAE’s largest power plant

16 July. Dubai Electricity and Water Authority (DEWA) has started testing the turbines in the M-Station expansion project in Jebel Ali, which is the largest electricity generation and water desalination plant in the UAE. The cost of the expansion project is AED1.47 billion and testing includes an initial operation of turbines and power generators and connecting them to the grid. Tests are scheduled to continue until the completion of the project in the fourth quarter of 2018. When completed, the project will increase the station’s total capacity to 2,885 MW, adding 700 MW.

Source: Arabian Business

Indonesia’s PLN CEO denies links to power station graft case

16 July. The Chief Executive Officer (CEO) Sofyan Basir of Indonesian electricity utility Perusahaan Listrik Negara (PLN) denied wrongdoing after the country’s Corruption Eradication Commission (KPK) searched his house for evidence in a power station graft probe. PLN’s PJB had been in talks for around two years with the consortium, and had yet to reach agreements on power pricing or project operations, he said.

Source: Reuters

Utilities in Europe to use long-distance drones to inspect transmission lines

16 July. Flying robots that can travel dozens of kilometres without stopping could be the next big thing for power companies. Utilities in Europe are looking to long-distance drones to scour thousands of miles of grids for damage and leaks in an attempt to avoid network failures that cost them billions of dollars a year. However the technology faces major safety and regulatory hurdles that are clouding its future in the sector.  Snam and EDF’s network subsidiary RTE have tested prototypes of long-distance drones that fly at low altitudes over pipelines and power lines. Italy’s Snam, Europe’s biggest gas utility, said it is trialling one of these machines – known as BVLOS drones because they fly ‘beyond the visual line of sight’ of operators – in the Apennine hills around Genoa. It hopes to have it scouting a 20 kilometre (km) stretch of pipeline soon. France’s RTE has also tested a long-distance drone, which flew about 50 km inspecting transmission lines and sent back data that allowed technicians to virtually model a section of the grid. The company said it would invest €4.8 million ($5.6 million) on drone technology over the next two years. At present, power companies largely use helicopters equipped with cameras to inspect their networks. They have also recently started occasionally using more basic drones that stay within sight of controllers and have a range of only about 500 metres. Power grid companies are expected to spend over $13 billion a year on drones and robotics by 2026 globally, from about $2 billion now, according to Navigant Research.

Source: The Economic Times

Nigerian government may stop supplying electricity to Togo, Niger, Benin republic

11 July. The Federal Government has called on international customers who receive electricity from Nigeria to either pay their bills or be disconnected. Nigeria sells power to the Republics of Togo, Niger and Benin, and classifies the West African countries as international customers. The Minister of Power, Works and Housing, Babatunde Fashola said that the international customers, who pay for the power they receive from Nigeria in dollars, owed the country. He however revealed that President Muhammadu Buhari was working hard to ensure that the electricity debts by the country’s neighbours were cleared. Fashola said that he had also directed the Nigerian Bulk Electricity Trading Company (NBET) to go ahead and collect its money from the international customers. Fashola said that he recently received the Minister of Power from Niger and both of them discussed issues bordering on the payment of electricity bills to Nigeria.

Source: Daily Post Nigeria

INTERNATIONAL: NON-FOSSIL FUELS/ CLIMATE CHANGE TRENDS

Bosnia’s Elektroprivreda HZHB starts construction of hydropower plant

17 July. Bosnian power utility Elektroprivreda HZHB started the construction of a hydropower plant (HPP) in Tomislavgrad, the municipal government of Tomislavgrad said. Elektroprivreda HZHB plans to invest € 89.11 million ($104.5 million) in the construction of the hydropower plant, named Vrilo, and to put it into operation in 2023, the Tomislavgrad municipal government said. In March, Elektroprivreda HZHB connected to the grid the 50.6 MW Mesihovina wind farm in Tomislavgrad, the first in the country.

Source: Renewables Now

Spanish hydropower availability inches down to 63.4 percent

17 July. Spain’s total hydropower availability inched down 1.5 percentage points week on week to 63.4% (14.9 terawatt hour) of capacity, environment ministry data showed. Current levels were still significantly higher than the 39.5% figure seen a year ago and above the 60.9% five-year average and the 58.4% 10-year average, according to the ministry. Meanwhile, reserves at hydroelectric dams were 72.6% full, down 1.7 percentage points from the prior week. Yet the latest levels are almost 26 points higher than a year ago and above the 68.5% average over the past decade. Hydropower generation in Spain totalled 573 gigawatt hour (GWh) in the week to Sunday, 57 GWh less week on week, but more than doubling year on year.

Source: Montel

China, EU reaffirm Paris climate commitment, vow more cooperation

16 July. China and the European Union (EU) reaffirmed their commitment to the Paris climate change pact and called other signatories to do the same, saying action against rising global temperatures had become more important than ever. Following President Donald Trump’s decision last year to withdraw the United States from the agreement, China and the EU have emerged as the biggest champions of the 2015 accord, which aims to keep global temperature increases to “well below” 2 degrees Celsius.

Source: Reuters

Saudi Arabia’s ACWA Power inks contract to build solar plant in South Africa

16 July. Saudi Arabia’s ACWA Power has signed a deal with Central Energy Fund to build renewable energy complexes in South Africa. The project will be a 100 MW solar power plant called Redstone CSP, and its construction will begin this year. Located in the Northern Cape, the concentrated solar thermal power (CSP) plant will produce clean energy for 210,000 South African homes. ACWA Power said its projects in South Africa would create thousands of jobs in the country. The complex will be built with a CSP central tower that captures sunlight. Using this design will help the plant generate competitively priced electricity compared to other forms of renewable energy that cannot serve evening peak demand unless they are linked to “extremely expensive” utility scale batteries, ACWA Power said.

Source: Construction Week Online

Myanmar urged to review hydropower dam projects seen damaging to rural communities

12 July. Myanmar’s government must ensure the protection of ethnic communities amid hydropower projects that have “weak social and environmental safeguards,” activists said. The Myanmar government must undertake reforms in its hydropower sector to prevent dam projects from negatively impacting rural ethnic minority communities in southeastern Kayin state, where electrification rates are lowest in the nation, according to a report issued by two ethnic Karen NGOs. The findings of the report, based on information collected in districts in Kayin state, discussions with focus groups, individual interviews with villagers, and legal research, conclude that instead of benefiting local communities, hydropower development in ethnic minority areas has diminished the livelihoods of those who rely on their land to secure their food and income. Residents are usually forced from their land by companies involved in dam-building or by armed forces, are given little or no opportunity to give their input on the projects, and are later permitted limited access to natural, religious, or cultural sites where the dams are constructed, the report said. The report said that hydropower development in southeastern Myanmar often occurs without adequate consultation with ethnic communities or due process of law, and that villagers receive inadequate or no compensation for the land, homes, and possessions they are forced to give up. Myanmar plans to build 50 large hydropower projects, 42 of which will be located in ethnic minority areas of the country, the report says. And of the 26 largest already built, 12 are situated in such regions.

Source: Eco-Business

Ireland commits to divesting public funds from fossil fuel companies

12 July. Ireland committed to divesting public funds from fossil fuel companies after parliament passed a bill forcing the €8.9 billion ($10.4 billion) Ireland Strategic Investment Fund (ISIF) to withdraw money invested in oil, gas and coal. Members of Ireland’s Dail (Parliament) passed the Fossil Fuel Divestment Bill, which requires the fund to divest direct investments in fossil fuel undertakings within five years and not to make future investments in the industry. The bill said indirect investments should not be made, unless there is unlikely to be more than 15 percent of an asset invested in a fossil fuel undertaking. As of June last year, the fund’s investments in the global fossil fuel industry were estimated at €318 million across 150 companies. Ireland was ranked the second-worst performing European Union country, in front of Poland, in terms of climate change action in June by environmental campaign group Climate Action Network (CAN) Europe. The world’s top oil, gas and coal companies face rising pressure from investors to shift to cleaner energy and renewables to meet international greenhouse gas emissions cut targets. Fossil fuel divestment has gained traction over the past few years as pension funds, sovereign wealth funds and universities, have sold oil, gas and coal stocks, especially after the 195-nation Paris climate agreement set a goal in 2015 of phasing out the use of fossil fuels this century. Norway’s $1 trillion sovereign wealth fund, the world’s largest, is barred from investing in firms that get more than 30 percent of their business from coal and it has also proposed to drop its investments in oil and gas. The government will give its opinion about that broader divestment in October. In the United States, New York City announced a goal earlier this year to divest its $189 billion public pension funds from fossil fuel companies in five years.

Source: Reuters

German coal trounced by renewables for first time

11 July. Renewable energy sources satisfied more of Germany’s power demands than coal during the first half of 2018, marking a shift towards clean power as the Bundesrepublik continues to debate how best to phase out coal. According to data released by the German Association of Energy and Water Industries (BDEW) data, wind, solar, hydropower and biogas met 36.3% of Germany’s electricity needs between January and June 2018, while coal provided just 35.1%. Although renewables have hit notable benchmarks in the past, outstripping fossil fuels on certain days or even weeks, this is the first time coal has fallen by the wayside during such a long period of time in Germany. In comparison to the same period in 2017, renewables only met 32.5% in the first six months of last year, with coal generating 38.5%. New Energy Minister Peter Altmaier refused to consider anything above a 32% renewable energy target for 2030, cutting down any hopes that national capitals could be convinced to back the European Parliament’s proposed 35% mark.

Source: EURACTIV

DATA INSIGHT

Import of Crude & Petroleum Products by India from Different Countries

US$ Million

Top Ten Countries 2017-18 (Apr-Dec)*
Saudi Arab 12319
Iraq 11623.62
UAE 6595.81
Iran 6401.51
Nigeria 6228.5
Qatar 5116.23
Venezuela 4430.24
Kuwait 4018.08
Angola 2639.37
Mexico 1829.34

Total Imports of Crude & Petroleum Products by India

* Provisional figures
Source: Rajya Sabha Un-starred Questions

Publisher: Baljit Kapoor

Editorial Adviser: Lydia Powell

Editor: Akhilesh Sati

Content Development: Vinod Kumar Tomar

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