Managing Volatility & Growth: A New Energy Paradigm
(Selection of Observations from presentations made at the conclave)
Shri S C Tripathi, former Secretary, Petroleum
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rowth and energy are two sides of the same coin and modern life is so critically dependent on harnessing various sources of energy. The GDP of a country is more or less directly proportional to its energy consumption. In
The oil crises of 1973 and 1979 were initially thought to be one time events but now they have become regular features of the hydrocarbon industry. The volatility in oil and gas prices does not seem to obey basic economic laws. The prices of crude oil which was in the range of about $20/bbl in 2002 went up to $40/bbl in 2004 and $147/bbl in 2008 and since 2009 it has been oscillated between $40/bbl to $80/bbl. Gas follows a slightly different rhythm but it has followed the volatility in oil quite closely with prices oscillating between $2/btu dollars and about $12/btu.
For any developing country the stability in energy resource prices is very important and therefore the role of the government becomes important. But the role of government in respect of pricing, taxation, subsidy, marketing freedom etc., has to be carefully considered. Much of the effort towards economic liberalization in the petroleum sector were taken at the time when Mr TNR Rao was the Secretary, Petroleum and later given a big push when Dr Kelkar was Secretary, Petroleum. Liberalization was pursued both in the upstream as well as downstream. The New Exploration and Licensing Policy (NELP) was implemented and the DGH was established but now once again we seem to be at a loss on finding the right balance between the role of the government and the role and the regulator.
In downstream distribution, marketing and pricing we are moving towards freedom of distribution, freedom of pricing and freedom of marketing. But because of high volatility and the consequent anxiety of the Government to protect the interest of the consumers, particularly the urban and rural poor, it has stepped back into the policy realm. Now we do not know when a balance between the two roles would be found. We are not sure as to where the role of government ends or where the role of regulator begins. We cannot afford to have a situation where every time there is a spike in oil prices either because pirates captured ships in the Indian Ocean, or terrorists captured a few engineers on Nigerian Oil Fields or the President of Venezuela or the President of Iran or Al-Qaeda makes a statement, we go back to the Cabinet or to an empowered Group of Ministers to address the challenge. As long as the Government is preoccupied with such day to day fire fighting activities it is unlikely that we will see any long term energy planning from the Government.
Mr Manish Tiwari, MP:
One of the most critical strategic decisions which Winston Churchill made when he was the first Lord of the Admiralty was to get the Royal Navy to shift from coal to oil. At that point in time what impelled that decision was the confidence which
Dr. Vijay Kelkar, Chairman, Finance Commission
India’s growth momentum requires an assured supply of energy at internationally competitive prices for producers whether industry or agriculture.
It is true that oil prices have become more volatile in the last 5-6 years. A recent study shows that amongst all commodities oil prices is more volatile than that of gas or coal in the same period. Fortunately, our country is now much better able to handle this volatility in terms of macroeconomic management. For instance, we have episodes of four price rises: in 1973-74 the oil embargo, 1979-80 Iran-Iraq war, 1990-91 first gulf war and then the volatility in the last five years. The impact of volatility in the last five years is the highest in terms of trade. It is likely that 1.5 to 2 percent of GDP was exported out of
Even after taking into account the decline from $140/bbl to $70/bbl, the price of oil on average is still higher than what it was in the last 30 years in real terms. In other words even with the global recession, oil prices have not gone down as sharply as they should have. That is because there are genuine market factors in play. The market structure has three elements which suggest that prices will be high in the coming years. On the demand side, the demand from emerging economies is increasing. This is something that cannot be arrested. Every growing economy of Asia, Africa,
On the supply side, there is evidence that the spare capacity in OPEC is now much lower than what it used to be. The spare capacity used to be the balancing wheel in the oil market and it is disappearing. Furthermore on the supply side, the days of finding jumbo fields or giant fields seems to be receding which means that the supply side will also will get little tighter. The third market structure is such that there is ‘financialisation’ of commodity markets that has increased in the past decade. They play both a positive role and negative role. The hedge funds, private equity funds and other financial operators find that this is a very important asset class which they can use to diversify their own risk but only at the cost of increasing the risk of the oil prices. So, although their own risk goes down, the oil price risk goes up.
The remarks are compiled from the recorded transcript of the presentations by the respective speakers. The remarks are strictly not to be reproduced or quoted.
to be continued…
Courtesy: 8th Petro
Power Sector Inefficiency – Economic & Legal Implications (part II)
Shankar Sharma, Power Policy Analyst, Thirthahally
Continued from Volume VI, Issue No. 43…
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eople’s displacement is the most serious social implications of large conventional power projects. Since independence about 5 million people are estimated to have been displaced many of them few times in few decades, because of various large size projects, of which power projects are known to have contributed considerably. Dams, power project buildings, transmission lines, coal & ash handling facilities, nuclear buffer zones, staff quarters etc. have all consumed a lot of lands including a considerable amount of fertile agricultural and forest lands. As per the Integrated Energy Policy (IEP) the total installed power generating capacity in the country has to increase from the present level of about 160,000 MW to about 800,000 MW by 2031-32. About 70% of this total generating capacity is projected to be from coal power and about 20 % from dam based hydel power. This massive addition to the capacity through conventional power sources will require about 1 million acres of land, most of which will be fertile agricultural and forest lands, and which will displace a large number of people who are already economically and socially at a disadvantage. Agricultural production loss due to loss of fertile lands and the pollution due to such power plants has already provided clear cases of serious impact on the economy as a whole and on the welfare of the masses.
As per a recent report of the Planning Commission the average cost of supplying electricity is expected to be Rs 4.16 per Unit in 2009-10, while the actual average tariff for this is Rs. 3.37 per unit. Thus the average gap between the cost of supply and the tariff is about 89 paise per unit. The average recovery of cost is even less because of the inefficiency prevailing in the system. Such a huge gap year after year is having a big impact on the economy of the country.
There are major economic dimensions to this sorry state of affairs in the power sector. As per the report of the 13th finance commission, which was tabled in the parliament on 25.2.2010, unless the public utilities engaged in transmission and distribution of electricity take urgent measures to improve the efficiency of the same the combined losses at the national level may increase from Rs. 68,643 crores in 2010-11 to Rs. 1,16,089 cores by 2014-15. Such huge losses year after year have led to deprivation of adequate funding to other crucial sectors of our developmental process such as drinking water, poverty alleviation, health, education, rural infrastructure etc. These huge losses cannot be sustained; and have huge deleterious impact on the developmental front. Except for few privately owned companies, there is probably not a single electricity supply company in the country which is financially healthy. In most states the industries, which were established on the assurance of reliable electricity supply, are suffering greatly, and a large number of small scale units are reported to be closed every year due to unreliable electricity supply. The inefficiency in the sector has meant that the actual cost of bringing electricity to the end users has become very high.
None of the conventional power plants can provide electrical power on a sustainable basis. Coal reserves in the country, though thought to be huge only few years ago, is now estimated to last not more than 3 or 4 decades because of the increasing amounts of coal extraction. About 75% of the petroleum products are already being imported, and the natural gas reserve also is not considered huge. With the thermal power capacity already at about 65% of the total, it is pertinent to question the wisdom of continuing to rely on this source of electricity on a sustainable basis. Energy security for all sections of our society cannot be assured on the basis of imported energy sources.
to be continued…
Views are those of the author
Author can be contacted at [email protected]
Gas in
Continued from Volume VI, Issue No. 43…
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he bid will be based on different weightage: network tariff (40%), the transportation rate for carting the gas, CNG compression charge (10%), connection to maximum number of households (30%) and size of the network in terms of inch-kilometre pipelines (10%) — to incentivise quick development of CGD network. EoIs in the pre-bidding process would be subject to a preliminary scrutiny, public consultation before being authorised by the Board. In normal case, the entire bidding and authorisation process would take about 150 days. So the evaluation of the bids will take about five months.
The bid winner will get a 25-year exclusivity on the use of infrastructure and five years’ marketing exclusivity for the particular geography the entity operates in. After the five-year period is over, other companies will be allowed to market gas in the city but will have to use the existing pipeline network for which it will have to pay a fee to the original operator. Companies such as Indraprastha Gas in
Once awarded, project implementation in each city or town will take between 18 and 36 months and will involve a capital expenditure of around Rs 400 crore in the first five years. The bidders would have to quote their tariff for five years in their applications. However, the tariff can be given on a year-to-year basis and inflation can be factored into the equation.
One major challenge for the Board is the historical baggage that it has to carry as a burden. This has to continue in order to be able provide a level-playing field. There are other problems like market service obligations, where the Board has to ensure quality of service, and these are part of the authorisation process. The Board is trying to ensure that it protects the consumer and ensure that he gets the best value for money. The ultimate challenge before the board is fostering fair trade and competition. The ultimate test for the Board would be that of being able to bring about a reasonable degree of fair trade and competition among the players even as it ensures the best value for the consumer.
Outstanding Regulatory Issues
Most of the regulations of the PNGRB are attuned to the ISO 9000 standards. PNGRB has specified a post-tax 14 per cent rate of return on the capital employed for these entities and they have given detailed calculations for this. Rate of return may be linked to the PLR enabling revisions to take place with changing circumstances. An ROR of 14 per cent may not be very attractive for an investor because borrowing costs may be higher. PNGRB seeks a long term gas supply agreement in 90 days which is rather short. LPG is being subsidised in the country which limits the price at which you can sell piped natural gas. CGD in some parts of the government is restricted to domestics and compressed natural gas (CNG). While that is understandable, to invest in CGD networks is serious business as one project entails investment of around Rs 300 crore to develop, industrial load assumes equal importance.
CGD network is a serious business with huge market service obligation and once you connect a household, you are unlikely to be able to disconnect it. Unfortunately, even today CGDs or gas supply to households is not considered as a utility service. Even the Supreme Court ruled this in a case between the ONGC and Gujarat Gas in the 1990s and said that CGD had a long way to go. With the regulatory board in place gas GCD networks may be considered as a utility with all the other provisions that a utility attracts. As a CGD, a supplier has to ensure that a retail consumer is able to access all the gas he wants round the clock, 365 days a year. As a result of this and changing government norms, the supplier has to cut down on supply to a large number of our industrial consumers just so as to maintain supply to our retail consumers. The regulator has focussed upon is building redundancy, which is more in the sense of business continuity. Multiple sources must be developed for CGD networks so as to tackle natural emergency situations sucg as floods or cyclones.
The first CNG corridor in the country, which is running quite successfully, goes from Mumbai to Ahmedabad and then to
It is important that there should be single window clearance from various statutory bodies. In addition, sharing of resources like inventories at reasonable price should be encouraged along with pipeline connectivity from pipeline infrastructure provider. One key issue is that of customer acquisition. The way the city gas networks are now going to be developed is going to be fundamentally different from what was done in the past. Earlier, it was done in a more organic manner. The people who are going to get the authorisation now get a five –year exclusivity holding and therefore have to proceed with the network development fast to take full advantage of this. This would also mean a whole new paradigm for network development. The other key challenge is that of getting the right suppliers in place. Imagine a situation, where 10, 15 or 20 cities will be trying the build their networks within a year. Are there enough suppliers supplying steel pipes? Metering equipment? Are there enough construction crews to install those pipes? Entities which are planning a serious entry into this sector need to think about these aspects upfront and need to start securing some of these capabilities and in some cases, even building some of these capabilities. Last, but not the least, is the whole issue of efficient operations. Challenges pertaining to safety are going to be paramount, especially for people who are entering this sector, because one of two incidents can spoil a big brand name.
One major challenge for the Board is the historical baggage that it has to carry as a burden. This has to continue in order to be able provide a level-playing field. There are other problems like market service obligations, where the Board has to ensure quality of service, and these are part of the authorisation process. The Board is trying to ensure that it protects the consumer and ensure that he gets the best value for money. The ultimate challenge before the board is fostering fair trade and competition. The ultimate test for the Board would be that of being able to bring about a reasonable degree of fair trade and competition among the players even as it ensures the best value for the consumer.
Opportunities in the Sector
Various entities and companies are likely to invest a total of Rs 120,000 crore for the implementation of eight sections of national gas grid City Gas Development in the country. Investment of Rs 40,000 crore is to be made in implementing eight sections of national gas grid (approx 8,000 km) and Rs 80,000 crore in 200 plus geographical areas (gas) for the CGD. Once a pipeline system is built by any entity, it is there for life. The government has allowed 100 percent FDI so this is a global opportunity not limited to Indian investors. There is also an opportunity for investors, not as infrastructure developers but as pure investors. Similarly, there is opportunity for consultants and manufacturers as well. For instance, testing and evaluation is a key area. Hitherto there were less stringent safety conditions but now this is a big concern. And then, there are opportunities for contractors, even in simple pipeline plumbing.
Concluded
Courtesy: Summary of proceedings at the 7th Petro India Conference on ‘Gas in India – Issues, Opportunities and Challenges’ organized by the Observer Research Foundation (ORF) and the India Energy Forum (IEF) on 25th & 26th September 2008, New Delhi.
Note: Part V of the article on Oil & Gas Discovery & Production in
An Open Letter to Union Minister for Environment and Forests
Dated, 12th April, 2010
Dear Sir,
Subject: Support for ministry’s principled stand on Acts of Parliament
Greetings from the
The recent news media seem to be replete with reports that the Union Ministry of Environment and Forests (MoEF) is facing criticism that environment clearance to many projects, which will need either diversion of forest lands OR are proposed to be set up in environmentally sensitive areas, is being denied or delayed while seeking clarifications. The reports also indicate that few of your cabinet colleagues are bringing political pressure seeking dilution of the relevant regulations to get exemption from the provisions of many relevant Acts. A large number of law abiding and environmentally conscious citizens of this country are in support of the principled stand taken by MoEF on these matters.
The proponents of such ill-conceived projects need to be reminded that MoEF has been entrusted with the onerous responsibility of protecting our natural resources and environment through the Environmental Protection Act, the Forest Conservation Act and the Wild Life Protection Act. In view of this critical responsibility the MoEF should not be seen as a rubber stamp of approval for every project, including the ill conceived projects.
Its is highly deplorable that high impact projects in such environmentally sensitive areas, such as a road through a protected forest in Karnataka OR in Madhya Pradesh OR Hubli-Ankola railway through thick forests of Western Ghats OR Gundia Hydel Project in Western Ghats, which may reduce the travel time by an hour or two OR reduce the distance by few kM OR provide few MW of power for wasteful uses, are considered highly essential to seek exemptions as compared to the integrity of thick forests or the conservation of rich bio-diversity. These people seem to be completely ignorant of the criticality of rich bio-diversity we have in our forests, and the fact that the forest & tree cover in the country is already below 23% against the national target of 33%.
People, who are aware of the destruction of our nature through unscientific mining activities, are also satisfied that you have taken a firm and principled stand against the enormous damage being caused by the mining. We are happy to acknowledge your stand that almost one-third of the country’s top grade coal reserve areas would not be available for mining as these areas are now considered to be ecologically very fragile. We think that in fact almost all coal mines were, or are, or will be found to be, below thick forests. The Integrated Energy Policy which envisages increasing the coal power capacity from the present level of about 80,000 MW to about 600,000 MW by 2031-32 must be reconsidered seriously in this context. Large number of additional coal mines required to support such massive coal power capacity expansion will not only reduce our forest cover (which are the best sinks of CO2) considerably but also will seek huge quantities of fresh water, which is already getting scarce. These additional mines will irreversibly destroy water security, biodiversity security, food security and national culture, as well as contributing to global and regional climate change. Our country must utilize the plentiful free energy from the Sun instead of continuing to damage water bodies, soils, plants, animals and people irreversibly through outmoded nineteenth century ideas of limitless economic growth. If pressure lobbies are allowed to twist the laws of the land then various commitments by the government to its own people, such as National Action Plan on Climate Change, will have no meaning, and we can forget our various commitments to the international community on Global Warming. There are any number of scientific reports in the international arena, which are consistently advocating the urgent implementation of environmentally sustainable policies through application of the law in a rigorous and timely manner before it is too late to safeguard the flora, fauna and the vulnerable sections of our society.
Popular support to the MoEF in your endeavors in this regard can be guaranteed.
Yours sincerely
Shankar Sharma, Power Policy Analyst, Thirthahally, Karnataka
Views are those of the author
Author can be contacted at [email protected]
NEWS BRIEF
NATIONAL
OIL & GAS
Upstream
Gas production from KG basin uneconomic at $4.20/mmBtu: ONGC
April 15, 2010. State-owned Oil and Natural Gas Corp (ONGC) said it will not be economically viable to produce gas from its Krishna-Godavari basin block at current sale price of $4.20 per mmBtu. ONGC, which has made 10 gas finds in a block that sits next to Reliance Industries' prolofic KG-D6 block off the Andhra coast, wants over $7 per million British thermal unit as gas price. The government has fixed $4.20 per mmBtu as the sale price of gas from RIL's KG-DWN-98/3 or KG-D/ block for five years. These rates, which are now being considered as a benchmark, are lower than $5.7 per mmBtu that gas from BG-led Panna/Mukta and Tapti fields command. ONGC plans to begin gas production from KG-DWN-98/2 block in 2015-16, later than previously anticipated 2013. Before ONGC, Gujarat State Petroleum Corp (GSPC)-- a
Petrobras keen to exit Indian block: ONGC
April 15, 2010.
Private oil co keen on refinery at Cairn’s Rajasthan field
April 19, 2010. A leading private oil refiner is willing to build a well-head refinery at Cairn
Reliance to shut VGO unit for a month
April 19, 2010. India's top refiner Reliance Industries plans to shutdown a 100,000 barrels per day (bpd) vacuum gas oil (VGO) hydrotreater at its old refinery for about a month, an industry source said on Monday. "VGO hydrotreater will be shut for 20-30 days to change the catalyst. Reliance's old 660,000 bpd refinery at
Petron Eng bags Rs 1.8 bn contract from IOC
April 19, 2010. Petron Engineering Construction said it has bagged a contract worth Rs 1.8 bn from state-run Indian Oil Corporation for its Paradip Refinery Project.
The company has bagged the order for engineering related works at Paradip Refinery Project, Petron Engineering said in a filing to the Bombay Stock Exchange (BSE). The scope of work includes design, engineering, procurement, construction at the project site, it said.
India Chennai Petro puts new refinery plan on hold
April 16, 2010. India's Chennai Petroleum Corp has put on hold its plans to build a new 300,000-barrels-per-day refinery at Ennore in southern
Chennai Petroleum will go ahead with the planned expansion of its existing 210,000-barrels-per-day (bpd) refinery at Manali in southern
HPCL shelves refinery at Vizag
April 15, 2010. State-run Hindustan Petroleum has "shelved for now" its planned 300,000 barrels-per-day refinery and associated petrochemical project at Vizag.
Transportation / Trade
BP rebuilding India trade operations, hires head
April 19, 2010. Oil major BP Plc has shifted back its
BP's local desk mainly handles marketing and supply of fuel in
IOC, HPCL, BPCL losing Rs 2.65 bn a day on fuel subsidies
April 16, 2010. State-owned Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum are collectively losing Rs 2.65 bn per day on selling fuel below cost and may end the fiscal with a Rs 874.40 bn revenue loss. IOC, BPCL and HPCL currently sell petrol at a loss of Rs 6.68 per litre, while the loss is Rs 5.81 a litre on diesel, Rs 18.42 per litre on PDS kerosene and Rs 265.27 per 14.2-kg LPG cylinder. Three fuel retailers lost Rs 479.60 bn on selling fuel below cost in the 2009-10 fiscal. The government has not yet said how it will make up for the projected losses for this fiscal. For FY'10, losses on petrol and diesel are to be met by upstream firms like ONGC and the government was supposed to shoulder the under-recovery on cooking fuel. However, the government has not kept its part of the deal.
Oil firms raise ATF price by 3.2 pc
April 15, 2010. For the fourth time in two months state-owned oil retailers raised jet fuel or ATF prices, this time by 3.2 per cent, in step with rise in global oil rates. Aviation turbine fuel (ATF) rates in
Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and today's increase in fuel rates would put extra burden on Indian carriers. The hike comes on back of a 1.4 per cent increase on April 1 when prices in
Pipavav Shipyard in talks to buy European oil rig, shipping co
April 15, 2010. Pipavav Shipyard is in talks to buy an oil rig and a shipping company in
Oil spill cleaned at Rushikulya beach, no threat to Turtles
April 15, 2010. The authorities have been able to clean almost 100% of the furnace oil that leaked from a ship two km off the Gopalpur port in south Orissa and got scattered on the coast after being pushed by high tide. The ship, laden with non-coking coal and sailing from Indonesia, had anchored nearly two km away from the port at Gopalpur in Ganjam district, about 170 km from here, when a barge hit it causing oil leak on Monday evening. More than 100,000 Olive Ridley turtles had nested last month on the Rushikulya beach and millions of eggs were laid by them.
Policy / Performance
Govt plans to 'subsidise' imported LNG
April 19, 2010. The government may subsidise costly imported gas (LNG) by making users of cheaper domestic gas pay more under its unique plan to rationalise gas prices. Currently, gas imported in liquefied form (LNG) costs $5.7 per million British thermal unit as against $1.82 rate for fuel produced from state-owned ONGC's fields and $4.2 per mmBtu for gas from Reliance Industries' KG-D6 field. The ex-terminal price of liquefied natural gas (LNG) imported by Petronet LNG at Dahej from Qatar on long-term contract is slated to increase to $9.01 per mmBtu by 2012 and unless 'subsidised' it would have resulted in rise in electricity generation cost and spike in fertiliser subsidy. The new contract that Petronet has entered into are at least 25 per cent higher than the 2012 price and the Oil Ministry has asked the state-run gas utility GAIL to study making LNG affordable.
Provisional gas transmission tariff for Reliance, GAIL networks approved
April 19, 2010. The Petroleum & Natural Gas Regulatory Board (P&NGRB) has approved the provisional tariff for gas pipeline networks operated by Reliance Gas Transportation Infrastructure Ltd (RGTIL) and GAIL (
Petroleum Ministry assures more gas allocation to plants
April 18, 2010. The Ministry for Petroleum and Natural Gas has assured additional fuel allocation for expansion of gas-based power projects, some
Oppn plans cut motion against fuel price hike on April 27
April 17, 2010. More trouble is brewing for the Manmohan Singh government with the opposition planning to move a cut motion against the fuel price hike on April 27 in the Lok Sabha. Although petroleum and natural gas ministry is not being discussed in the House, the opposition wants to bring a cut motion on it. If the Speaker Meira Kumar admits it in the House, this will be the first time that a cut motion is taken up on a ministry which is guillotined.
At a Business Advisory Committee (BAC) it was decided to discuss demands for grants of only five ministries — external affairs, water resources, rural development, tribal welfare and national highways — due to “paucity of time”.
ONGC may challenge tax-sop rollback on gas prod
April 15, 2010. ONGC wants to challenge the government's decision to withdraw the seven-year tax holiday on production of natural gas in a high court as the economics of its deep-sea projects will be severely hit because of the decision. The then finance minister P Chidambaram, had in 2008, modified the definition of mineral oil to mean that it does not include production of gas for the purpose of grant of the seven-year break from payment of I-T.
India to have strategic oil reserve by Oct 2011
April 15, 2010. India will complete building its first strategic crude oil storage by October 2011 in an effort to insulate itself from supply disruptions.
India, which is 75 per cent import dependent to meet its crude oil needs, is building under-ground storages at Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka to store about 5.33 million tons of crude oil. This is enough to meet nation's oil requirement of 13-14 days.
A similar facility in Mangalore will have a capacity of 1.55 million tons and would be mechanically completed by November 2012. A 2.5 million tons storage at Padur, near Mangalore, would be completed by December 2012.
IOC plans 1st Azeri, Algerian oil deals
April 14, 2010. State-run Indian Oil Corp is planning its first-ever term crude oil import deals with SOCAR and Sonatrach, as it aims to lift 15.4 per cent more low sulphur oil in the current fiscal. Terms of the deals to import 10,000 barrels per day (bpd) each of
POWER
Generation
BHEL bags Rs 63 bn order from RPCL
April 19, 2010. State-owned BHEL said it has bagged a Rs 63 bn order for setting up an energy-efficient power plant in Karnataka. The contract envisages design, engineering, manufacture, supply, erection and commissioning of two coal-fired thermal units of 800 MW each with supercritical parameters (energy efficient and environment friendly) at Raichur in Karnataka.
RPCL is a joint venture company of Karnataka Power Corporation Limited (KPCL) and BHEL, which has been set up to build, own and operate supercritical thermal power plants in Karnataka. BHEL is also executing a contract for supply of supercritical steam generators to APGenco’s 2x800 MW Krishnapatnam Thermal Power Project, which is at an advanced stage of completion, the statement added.
ABB bags orders worth Rs 1.45 bn from BRBCL
April 19, 2010. Power and automation technologies major ABB India said it has bagged orders worth Rs 1.45 bn from Bhartiya Rail Bijlee Company Ltd (BRBCL) for power-related works. The company has bagged the contracts for construction of substation and transformers to connect newly established Nabinagar thermal power plant to the railway network, ABB said in a filing to the Bombay Stock Exchange (BSE).
Bhartiya Rail Bijlee Company is a subsidiary of state-run power major NTPC in collaboration with the Indian Railways. BRBCL is commissioning 4x250 MW thermal power project at Nabinagar (Bihar) to meet the increased power requirements of rail networks in eastern and central
Water shortages hit power plants in MP
April 16, 2010. The Plant Utilisation Factor (PUF) or output of the state-owned thermal stations dipped to 62.87 per cent in the last financial year, the lowest since ten years, causing a huge loss to the MP State Electricity Board (MPSEB) mainly due to delayed rainfall. Besides, some thermal power units were also not taken up for annual overhaul and maintenance last year resulting in low PUF. The installed thermal power generation capacity of Madhya Pradesh at present stands at 2857.5 Mega Watt (MW).
Videocon keen to set up power project in
April 15, 2010. Diversified business conglomerate Videocon Group said it is keen to set up a 1,000 MW thermal power project in
NTPC, CIL may set up 2 power plants in Jharkhand
April 15, 2010. Public sector NTPC and Coal
Over 12.5 GW projects of Tenth Plan still stuck
April 14, 2010. Even in the penultimate year of the Eleventh Plan, power projects cumulatively adding up to 12,549 MW that were scheduled for commissioning in the Tenth Plan are still to come on stream. According to Government data updated till March 10, of the Tenth Plan projects that are still to be commissioned, nearly half are thermal projects in the Central sector, being implemented by utilities such as NTPC Ltd, Neyveli Lignite Corporation (NLC) and NEEPCO. Contractual problems with suppliers, delays in placement of orders, and hold-ups in the balance of plant packages are among the key reasons for the delays in case of the thermal projects, which total at 9,200 MW. Of these a majority, or 5,190 MW, are Central sector projects, while 1,036 MW are in the State sector and 2,974 MW in the private sector. Hydro projects which have slipped from the Tenth Plan and are yet to be commissioned include 2,321 MW in the Central sector and 558 MW in the State and 470 MW in the private sectors.
Transmission / Distribution / Trade
Tata Power may hike power tariff
April 19, 2010. Almost 60,000 consumers of Tata Power Company (TPC) across Mumbai will have to face increased power billing following State government's order to TPC to continue supplying power to R-Infra. In addition, TPC is also facing a challenge to provide 100 MW to BEST, due to the State's order to continue power supply to R-Infra, despite the signing of a power-purchase agreement (PPA).
Electricity, a scarce commodity in several parts of rural Kerala
April 18, 2010. Electricity has become a scarce commodity in several parts of rural Kerala, especially in Pathanamthitta district, where one of the major hydel project Sabarigiri is located. One stint of summer showers accompanied by winds had kept thousands of consumers, mostly households without power supply for four days (April 4-8).
Load-shedding in northern districts of Kerala
April 16, 2010. The Kasaragod, Kannur and
AP Transco mulls cost share approach for industrial consumers
April 14, 2010. Transmission Corporation of Andhra Pradesh is working on a new revenue share model which will help high tension (HT) industrial consumers access additional power provided they bear the extra cost burden. While representatives from the Confederation of Indian Industry and the Federation of Andhra Pradesh Chamber of Commerce and Industries and HT consumers have agreed to share the cost burden if additional power is supplied, this move is subject to regulatory approvals. The Open Access system has also benefited some of the HT consumers in the State. About 50 MW is now being traded through the open access system, where individual consumers with over one MW demand have the right to procure power from either their own captive plants in other locations or purchase from merchant plants.
A Rs 1.35 bn power generation plant to come up in Pondy
April 20, 2010. Puducherry Administration has drawn up a plan to set up a co-generation power plant on the premises of the Cooperative Sugar Mill at Lingareddipalayam near here at a cost of Rs 1.35 bn using the bagasse available from the mill. The government had also decided to start a distillery to produce arrack in Bahoor using the molasses produced by the sugar mill.
Videocon plans 5 GW power projects
April 18, 2010. Leading business conglomerate Videocon said it has plans for generating 5,000 MW of power through projects in states like Gujarat, Chhatisgarh, Maharashtra and
Maharashtra clears Tata Power's Shahapur plant rehab package
April 17, 2010. A high-powered group of secretaries formed by the
The approval by this panel, which has secretaries from departments like revenue and rehabilitation, industry and power, should come as a big relief for the 2,400-mw plant that has been opposed by the locals and environmentalists.
L&T evinces interest to put up power shop in Jharkhand
April 17, 2010. Larsen & Toubro has evinced interest to put up a thermal power plant in Jharkhand. The state was more interested to work with a couple of big industries which could help the state meet its power requirement in the coming years. The Shibu Soren government has said that it would make Jharkhand an 'Engery Hub' by 2014.
JSW Energy to buy majority stake in
April 16, 2010. JSW Energy will acquire a majority stake in South African Coal Mining Holding (SACMH) for about Rs 382 bn ($85 million) besides making an open offer to the minority shareholders.
According to the deal, JSW Energy, through an yet-to-be launched wholly-owned overseas arm, will purchase the SACMH stake from Strider Holdings and RBH Resources at 30 cents a share. The company will buy 49.80 per cent in Royal Bafokeng Capital from Strider Holdings with an option to acquire the remaining stake. JSW Energy will also acquire Mainsail Trading 55 (Proprietary), an investor in SACMH, from RBH Resources Holdings.
Star rating helps save 1.65 GW: Bureau of Energy Efficiency
April 15, 2010. Initial estimates by the New Delhi-based Bureau of Energy Efficiency (BEE) suggest that around 1,650 MW of electricity was saved countrywide during FY10 through the use of star-rated air-conditioners, refrigerators, tube-lights and colour TVs. This includes nearly 350 MW saved by CTVs alone.While the one- to five-star labelling for fridges, ACs and tube-lights became mandatory from January 2010, the star-labelling for CTVs and LCDs is still voluntary. BEE expects to bring these too under the mandatory regulation by March 2011.
INTERNATIONAL
OIL & GAS
Upstream
CNOOC hits Black Gold in
April 19, 2010. CNOOC made a discovery in the Penglai 9-1 block in waters measuring 95 feet (29 meters) in the eastern
Gas OPEC boosting output sends prices lower for worst commodity
April 19, 2010.
Chakib Khelil,
The fuel’s value is falling as
Norway cuts Lofoten oil view, boosting greens
April 16, 2010.
The Norwegian Petroleum Directorate, a government agency tasked with developing the country's offshore oil and gas riches, said the Arctic island waters could hold around 1.3 billion barrels of oil equivalent. This estimate comes after seismic studies of the waters and compares to a previous one of about 2 billion barrels.
Mexico's Pemex bullish after deepwater natgas find
April 15, 2010.
The company is planning to drill a second well at Lakach to learn more about the size of the gas field once the rig that drilled the Labay probe can be moved into position. The Labay exploration well was the fourteenth drilled by Pemex in the deep waters of the
Shell suspends oil production at
April 14, 2010. Royal Dutch Shell Plc’s Nigerian unit suspended oil output at its offshore EA field to enable repair works after a storm. Production of some 100,000 barrels of oil equivalent per day has been deferred. EA has an installed capacity to produce 115,000 barrels of crude a day. The equipment connecting the floating, production, storage and offloading vessel for the oil field, which was scheduled for overhaul in May, had to be fixed urgently following a storm. Shell operates the EA field as part of a joint venture in which state-owned Nigerian National Petroleum Corp. has a 55 percent stake.
Downstream
Sinopec mulls plan to build refining complex in
April 20, 2010. China Petroleum & Chemical Corp. (SNP), the nation's largest refiner by capacity, is "studying the investment opportunity" to build a large refining and petrochemical complex in
The company is considering expanding the plant into a complex. The complex would be located on
China's April crude runs likely at record high
April 19, 2010. China's refinery crude runs look to be heading for another all-time high in April, bolstered by strong economic growth and a recent fuel price rise, and given a boost by stockbuilding ahead of the World Expo due to kick off in Shanghai.
Though runs may dip next month due to planned maintenance at some large refineries, crude throughput is expected to grow steadily later this year with new refining capacity scheduled to come online and the economy expanding at high speed.
Refiners doing 'yeoman's work' meeting demand - API
April 16, 2010. U.S. refineries produced more gasoline this March -- at 9.3 million barrels per day -- than any previous month on record. March gasoline deliveries (a measure of demand) were higher -- at 9.2 million barrels per day -- than any previous March.
The highest amount of gasoline ever delivered was 9.6 million barrels per day in July 2007. Total March deliveries of all products, including gasoline, distillate, kerosene-jet fuel, and residual fuel, rose 3.5 percent from a year ago.
Indonesia's Chandra Asri may join Aramco to build refinery
April 15, 2010. Indonesia's PT Chandra Asri will likely team up with Arabian American Oil Company (Aramco) to build a US$1 billion oil refinery to produce naphtha in the country.
The Saudi company is the only one serious in guaranteeing crude oil supply to feed the naphtha factory planned by the country's largest petrochemical company, a company official said.
There are a number of other companies indicating interest but all talks are still in the initial phase. Chandra Asri will need naphtha to guarantee supply of the feedstock for its ethylene and propylene production units.
Libya seeks JV partner for refinery revamp
April 15, 2010. Libya is expected to finalize the sale of a 50%-stake in state-owned Azzawiya refinery this year as part of plans to modernize the country's refining sector and help it meet rising domestic product demand.
Libya plans to sell the share in its second-largest refinery to an international oil company as it seeks to upgrade and expand its domestic facilities.
Azzawiya, which has capacity to process 120,000 barrels a day of crude and largely supplies the local market, is in need of investment and a revamp.
China raises diesel, gasoline prices 4.6 pc on crude
April 14, 2010.
The NDRC said the fuel price gain will add 7 basis points to the April consumer price index month-on-month. The increase will boost costs for manufacturers and farmers and may add to inflationary risk as the Chinese economy, the world’s third biggest, expanded at the fastest pace since 2007 in the fourth quarter.
Transportation / Trade
Kinder Morgan to expand
April 20, 2010. Kinder Morgan announced plans to modify and expand the existing Cochin Pipeline system to provide a solution for transporting natural gas liquids (NGL) from the
Putin Heads to
April 20, 2010. Russian Prime Minister Vladimir Putin is scheduled to visit
South Stream would send gas from the Black Sea to south-eastern and Central
Clean Energy to expand CNG outlet network in NYC
April 19, 2010. Moving to expand its
The first station will be located in Queens, and the second CNG station will open adjacent to
US State utility regulators might oversee new pipelines
April 15, 2010. State utility regulators are concerned about the safety of pipelines used by
Major interstate and pipelines within
Policy / Performance
Indonesian govt to offer 34 O&G blocks
April 20, 2010. The Indonesian government plans tenders for 34 oil and gas blocks in May this year, including 16 regular tenders and 18 direct offers.
The tenders will be made to coincide with the conference of Indonesian Petroleum Association (IPA) in
Mitsubishi keen on implementing LNG project
April 20, 2010. Mitsubishi Corp. said it is still keen on implementing a multi-billion U.S. dollar liquefied natural gas project in Donggi-Senoro,
Mitsubishi will team up in the DSL with state-oil and gas company PT Pertamina and PT Medco Energi Internasional with shares of 29 percent and 20 percent, respectively. Natural gas for the LNG is to be supplied from the Matindok gas field of Pertamina and Senoro gas field, which is jointly owned by Pertamina and Medco.
Suncor fires up gas production in
April 19, 2010. Suncor announced that first commercial gas has been achieved from the Cdn $1.2 billion
Algeria Oil Min: New
April 19, 2010. New natural gas production from the
Chakib Khelil, speaking before a meeting here of the Gas Exporting Countries Forum, of which he is president, said the glut had led to a drop in prices to which the group was trying to find solutions. Amid a recent drop in demand, "the spectacular development of non-conventional gas production...[in
China lends
April 19, 2010. China, the world’s second-biggest oil user, will lend Venezuela $20 billion and form a venture to pump crude from an Orinoco Belt block, President Hugo Chavez said as he promised to meet the Asian country’s energy needs.
The financing from
The oil is used to repay the Asian country for $8 billion
Pertamina assured of stake in Mahakam Block
April 16, 2010. The Indonesian government has ensured that state owned oil and gas company PT Pertamina will have a stake in the Mahakam Block now controlled by PT Total E&P Indonesie.
The share of Pertamina, however, is yet to be decided. Earlier, Pertamina said it was awaiting an answer from the government to its proposal to acquire 15 percent or 25 percent stake in the Mahakam block in
Bahrain to join Iranian gas project
April 16, 2010. Iran and
Technicians and experts from both countries have made good progress on preparing for the project, said Iranian First Deputy President's Assistant Dr. Ali Agha Mohammadi. Dr. Mohammadi said, "Both sides have agreed on various technical aspects.
The next step will be the final signing of the project by the ministries." He said that a third party is also involved in the gas agreement, however he would not reveal who it was.
Industry opposes ‘monumental’ expansion of CFTC Power
April 15, 2010. Industry groups backed by Koch Industries Inc. and Cargill Inc. are fighting a Senate bill that would reshape almost 30 years of policy that allowed the $605 trillion over-the-counter derivatives market to surge and helped trigger the financial crisis in 2008.
The Legislation would give the Commodity Futures Trading Commission authority over most of the
The bill would give the commission the power to monitor over-the-counter trading, impose heightened capital requirements on companies with large swaps positions and limit the number of contracts a single trader can hold. The bill, which is expected to be taken up by the Senate this month, would push standardized swaps onto regulated exchanges or similar electronic systems.
At stake is control of one of Wall Street’s most lucrative businesses. Trading revenue in unregulated markets last year generated an estimated $28 billion for five
Schlumberger starts staffing in
April 15, 2010. Schlumberger Ltd has begun staffing an operation in
The world's largest oilfield service company is finishing work on a 40-acre compound near
Greens launch NAFTA action on
April 14, 2010. Environmental groups launched a complaint against
In the latest move in a long-running campaign to highlight the impact of oil sands development, the submission by Environmental Defense Canada, Natural Resources Defense Council and three citizens charges that toxic tailings ponds are being allowed to leak and contaminate ground water.
The ponds store residual oil, heavy metals and other byproducts of oil sands processing in the western
Sinopec pays more for oil stake for energy security
April 14, 2010. China Petrochemical Corp.’s purchase of a stake in a
The company known as Sinopec Group agreed to pay at least $650 million more for ConocoPhillips’s 9 percent stake in Syncrude Canada Ltd. compared with an estimate by Macquarie Securities.
The cost of the purchase could have been narrowed by a stronger yuan, currently constrained by a peg to the dollar. Gains in the Chinese currency would cushion the rising costs of oil and natural gas supplies needed to sustain the expansion of the world’s fastest-growing major economy.
POWER
Pacifica to bid for administration of
April 20, 2010. Pacifica, Inc. is bidding for a government contract to manage the 650-megawatt (MW) Malaya Thermal Power Plant in Pililia, Rizal, as part of a plan to expand into the power industry.
British Columbia to pursue controversial dam plan
April 20, 2010.
The Site C dam near
British Columbia expects its electricity demand to increase between 20 percent and 40 percent over the next 20 years as the population on
Brazil completes controversial Amazon dam auction
April 20, 2010.
President Luiz Inacio Lula da Silva likely faces a prolonged battle over the 11,000 megawatt Belo Monte dam that he has heavily promoted despite opposition from a range of critics including
Government leaders say the project, due to start producing electricity in 2015, will provide crucial power for
Uganda power generation up 47 pc in 2 years to reach 361 MW-ERA
April 19, 2010.
Power generation has reached 361 megawatts from 245 MW two years ago due to investments in hydro power stations as well as thermal generation plants, ERA said in a statement. Among the companies that have invested in the sector is Eskom Uganda Ltd., a unit of
AES bids for $481 mn BG power plant
April 19, 2010.
BG, which also owns a 50% stake in the Seabank power station in
Costa Rica to double power generation within 6 years
April 19, 2010. According to ICE’s Expansion of Electricity Generation Plan for 2010-2021, next year and through 2016 ICE will operate at least 14 more power plants. These generators would increase from 2400 to 4018 megawatts (MW) of installed capacity in the country.
According to the Instituto Costarricense de Electricidad (ICE), the contribution of these plants will cope with the rising electricity demand and reduce the risk of blackouts. Today, the electricity consumption of households, industries, businesses and institutions demand 1624 MW (peak).
Siemens gets order for Dutch power plant
April 19, 2010. Siemens Energy has received an order for the turnkey construction of a combined cycle power plant. The purchaser of the 435MW Hemweg 9 plant is the Dutch utility Nuon, a subsidiary of Vattenfall. The gas-fired plant will supply power to more than 750,000 Dutch households The start of commercial operations is scheduled for late 2012 and Siemens will also be responsible for plant maintenance.
India,
April 18, 2010. Chalna, a port town in southwestern
A joint technical committee comprising officials of the Bangladesh Power Development Board (BPDB) and the National Thermal Power Corporation (NTPC) of
Czech electricity demand, generation rise more than 2%yy in Feb
April 16, 2010. Czech net electricity demand in February was up 2.3% annually while the country's gross power production in the month was up 2.1% annually, the Energy Regulatory Office, or ERU.
Czech net power demand--which is total power production minus exports, electricity used in power generation and losses in grid--was 5.25 terawatt hours in February compared with 5.13 terawatt hours a year earlier. Czech total electricity generation was 7.58 terawatt hours in February compared with 7.42 terawatt hours a year earlier.
Australia's Wesfarmers says agrees coal prices
April 14, 2010. Australian conglomerate Wesfarmers Ltd said it has agreed to new quarterly coal price contracts, including a 70 percent increase for most of its Curragh coking coal. It said around 25 percent of Curragh's contracted tonnage remains under the annual pricing and based on the weighted average contract prices, annual pricing will increase by approximately 78 percent from April, compared to current levels.
Transmission / Distribution / Trade
European Commission orders increase of electricity trading capacity through Swedish borders
April 15, 2010. The European Commission has adopted a decision rendering legally binding commitments offered by Svenska Kraftnät (SvK) that will increase trade in electricity within Sweden and between Sweden and neighbouring countries contributing to a better allocation of resources and, ultimately, to lower prices for customers and end consumers.
The commitments address concerns that SvK may be abusing its dominant market position in the Swedish electricity transmission market by reducing the amount of export capacity on the interconnectors between
Tres Amigas proposed
April 14, 2010. Tres Amigas, proposed as energy "hub" to allow new sources of wind and solar power to move from remote areas of the U.S. Southwest to power-hungry cities, is attracting interest from nuclear and fossil-fueled generators as well. To be built near Clovis, New Mexico, the Tres Amigas superstation will serve as a power hub, not only to only allow electricity to flow between the nation's three separate grids, but to improve the overall efficiency of the grid.
Likened to a highway rotary, Tres Amigas will allow multiple power transmission lines from the three
First SAARC level micro hydropower center set up in
April 20, 2010. The first South Asian Association for Regional Cooperation (SAARC) level micro hydropower center has been set up in
Pekkarinen won’t propose 3 atomic reactors in
April 18, 2010.
Constellation Energy buys two plants for $365 mn
April 16, 2010. Constellation Energy Group said it agreed to buy two natural-gas-fired power facilities in
The transaction was for the 550 megawatt (MW)
US needs nuclear storage, fuel options-regulator
April 14, 2010. As the
Merchant projects, such as those proposed by an NRG Energy-led joint venture and Constellation Energy Group will face a more daunting challenge to secure the billions needed to finance new reactors compared to projects sponsored by utilities, such as Southern Co, FPL Group, Progress Energy and others that operate in regulated markets where they can more easily recover the huge investment needed through captive customers, during or before actual construction.
GE Hitachi’s Fuller to seek nuclear recycling
April 14, 2010. GE Hitachi Nuclear Energy is pushing the Obama administration to support new recycling technology that the company says would reduce the risk of proliferation and the storage needed for radioactive waste.
The approach differs from the reprocessing technology already in use outside the
Washington sues to revive
April 14, 2010.
The government’s decision to withdraw its license application for Yucca Mountain will frustrate Washington’s plans to clean up the Hanford Nuclear Weapons Reservation, a site located in southeastern Washington that was created in 1943 as part of the Manhattan Project, state Attorney General Rob McKenna said in a statement.
About 53 million gallons of nuclear waste is stored in underground tanks at
Renewable Energy / Climate Change Trends
National
Suzlon to supply 44 turbines for wind project in
April 20, 2010. Wind turbine manufacturer Suzlon Energy said its subsidiary, REpower Systems AG, has bagged a contract for supply of 44 wind turbines for a project in
The company has "concluded a contract with Al Yel Elektrik, a subsidiary of Akuo Energy SAS, for the delivery of 44 wind turbines for a project in
The turbines will be installed at Geycek wind farm in Kirsehir province, East of Ankara, in
Orient Green Power plans public issue to raise Rs 9 bn
April 19, 2010. The Shriram EPC-promoted Orient Green Power Ltd has filed for a Rs 9 bn public issue, it is learnt. OGPL is engaged in electricity generation from renewable sources and has a portfolio of about 175 MW, comprising 134.5 MW of wind and 40.5 MW related to biomass projects. OGPL has more than 500 MW under construction / implementation pipeline.
The company aims to expand this portfolio to 1,000 MW in two years, for which it seeks funds. It is learnt that the issue would hit the market later this summer, once it has gone through the formalities with SEBI. The issue is being managed by JM Financial, Goldman Sachs and UBS securities. Amarchand & Mangldas is the filing legal counsel.
Nalco to set up Rs 3 bn wind energy project
April 18, 2010. Aluminium PSU Nalco said it will set up a Rs 3 bn wind mill in the country as part of its green initiative. The state-owned navratna company is in the process of inviting bids for setting up a 50 MW wind energy project, possibly in
A technology developed in
April 18, 2010. As ensuring clean growth is a big challenge in the light of growing ecological concerns, the setting up of waste to energy plant using mounds of municipal solid waste across the country holds the key, says an Indian patent-holder for such a project in
The technology was demonstrated at the UN Conference on Environment Ministers in
Solar
April 18, 2010. Solar project developers offering the best discount on a tariff to be notified by the electricity regulator will figure higher in the pecking order during the allocation of identified projects under the Solar Mission programme. The tariff rates under consideration by the CERC for 2010-11 are Rs 17.90 a unit for photovoltaic (PV) and Rs 15.40/unit for solar-thermal.
The tariffs are notified annually by the CERC. NVVN (NTPC Vidyut Vyapar Nigam), the trading arm of NTPC, will procure power from the solar producers offering the most competitive tariffs on the ceiling rates to be notified by the Central Electricity Regulatory Commission (CERC), according to official sources. For 2009-10, electricity generation cost for PV was Rs 18.44/unit, and in the case of solar thermal, it was Rs 13.45. The reason for a higher tariff for 2010-11 being proposed for solar thermal is based on industry representations seeking a higher rate and availability of more data on capital cost of the projects.
Global
Major economies focus on finance at climate meeting
April 20, 2010. Representatives from the world's biggest polluters sought to make progress on short-term financing to help developing countries adapt to global warming at a meeting hosted by the
The Copenhagen Accord outlined funds approaching $30 billion for 2010 to 2012 to help developing countries adapt to global warming and mitigate its potential effects, like floods, droughts and stronger storms. It also outlined longer-term financing by developed countries of $100 billion a year by 2020. Talks on that are being held by a separate U.N. panel headed by
Milk production accounts for 3 pc of greenhouse gas emissions
April 20, 2010. Just under three per cent of the global greenhouse gas emissions are a result of milk production, according to a new report by the United Nations Food and Agriculture Organization (FAO). This figure includes emissions related to the production, processing and transportation of milk products. The percentage climbs to four when emissions from meat production from animals originating from the dairy system are factored in, the study says. FAO points out that methane contributes most to milk's impact on global warming, accounting for more than half of the sector's emissions in both developing and developed countries. Nitrous oxide and carbon dioxide also account for large proportions of the dairy sector's contributions to greenhouse gas emissions.
Scientists call for research on climate link to geological hazards
April 19, 2010. Scientists called for wide-ranging research into whether more volcanoes, earthquakes, landslides and tsunamis could be triggered by rising global temperatures under global warming. Significant warming of the atmosphere in the distant past can be linked to changes in geological activity, they say. Suggestions that climate change predicted for coming decades could bring similar changes remain speculative, but the scientists say there is enough evidence to take the threat seriously. Some experts have already linked current levels of global warming to rockfalls and landslides in mountain regions.
Hyundai Heavy, LG invited to join $1 bn solar project
April 19, 2010. Matinee Energy Inc., a U.S. based renewable energy company, said it invited Hyundai Heavy Industries Co. and LG Electronics Inc. to become partners in a $1 billion solar project. Matinee signed a preliminary agreement with the South Korean companies, the solar power projects developer said in a statement yesterday, without saying where the plant would be built. Hyundai and LG earlier said they were named preferred bidders for a solar-power order worth $1 billion from Matinee Energy.
Iberdrola Sings 50 MW PPA with We Energies
April 16, 2010. Iberdrola Renewables announced a power purchase agreement (PPA) with a new customer, We Energies of Milwaukee, Wisconsin. We Energies will purchase 50 megawatts (MW) of energy from Iberdrola Renewables' Barton Wind Power Project in operation near
Iberdrola Renewables has become the second-largest wind operator in the
China to fight ‘world war’ scale climate destruction
April 16, 2010.
Takaoka to introduce cheaper chargers for electric cars
April 16, 2010. Takaoka Electric Manufacturing Co., an affiliate of Tokyo Electric Power Co. and maker of chargers for electric cars, will introduce a new, cheaper recharging system in June to raise its
Demand for recharging equipment for electric cars is expected to rise in
U.S. solar capacity surges in '09 on incentives
April 15, 2010. Installed solar capacity in the
World Bank's IFC issues $200 mn "green" bond
April 15, 2010. The International Finance Corp issued its first "green" bond which aims to reduce greenhouse gas emissions through investments in clean projects like solar and wind farms and fixing inefficient power plants. IFC, a member of the World Bank Group, said proceeds from the $200 million, fixed-rate bond would be set aside in a separate account for investing exclusively in renewable energy, energy efficiency and climate friendly projects in developing countries. The launch of the bond "highlights increased interest from sustainable and socially responsible institutional investors," IFC said in a statement. SEB, a European financial group, will manage the four-year bond.
Climate bill seen raising gasoline prices
April 15, 2010. Point Carbon, a market analysis firm, estimated
BP brushes off investor revolts on tar sands, pay
April 15, 2010. Oil major BP Plc easily beat off challenges to a Canadian oil sands project and to its executive pay policy. Europe's largest oil company by market value said 94 percent of shareholders who voted in advance of the annual meeting rejected a call to review its
Carbon market to thrive despite political failings: EU
April 15, 2010. The global carbon market will still have enough momentum to survive even if the international community fails to come up with a new deal to combat greenhouse gas emissions, a European policy coordinator said. Carbon traders and project expressed concern that the failure to secure a binding agreement at U.N.-led climate talks in
Lack of ships may hinder
April 16, 2010. Lack of investment in the vessels used to build offshore wind farms could hinder
U.S. seeks climate ideas after
April 16, 2010. The
A document listing
Obama will focus on energy bill after bank reform
April 16, 2010. President Barack Obama said his administration would shift its focus to climate and energy legislation after finishing financial regulatory reform. The Senate has not passed a similar measure but a bipartisan group of senators including Democrat John Kerry, Republican Lindsey Graham and independent Joe Lieberman are expected to produce a bill. Some environmentalists have questioned how big a priority Obama will make climate legislation on his long list of domestic policy priorities.
CNPC finishes early-stage huge gas storage plan
April 16, 2010. State-owned CNPC has completed some early-stage construction of
CNPC, parent of PetroChina, decided to build the Changqing Oilfield Natural Gas Storage Project that would have storage capacity of 12 billion cubic metres, or fourfold
California climate campaign spending may top record
April 16, 2010. A dispute between environmental groups and refiners Tesoro Corp. and Valero Energy Corp. over global warming laws in
Sarkozy, Berlusconi push EU for border climate levy
April 15, 2010. The European Union's executive must work out ways to impose a climate levy on imports from countries which do not make efforts to combat global warming, the leaders of
‘Renewed appetite’ for IPOs set to boost solar and wind power
April 15, 2010. The biggest revival in stock prices since the Great Depression is reigniting interest in initial public offerings by environmental companies, spurring businesses from
Western climate group sees carbon at $33 per ton in 2020
April 14, 2010. A cap-and-trade market to slow climate change in
Climategate Probe finds no evidence of scientific malpractice
April 14, 2010. An investigation by a panel of scientists into the so-called climategate leaked e-mail flap found no evidence of scientific malpractice at the
Merrill Lynch has ‘bearish’ outlook for
April 14, 2010. Merrill Lynch said it’s “bearish” on prospects for wind power demand in the
The Bank of America Corp. unit cut to “underperform” Danish turbine maker Vestas Wind Systems A/S and
BP to invest $1 bn plus in alt energy this year
April 14, 2010. Oil major BP Plc plans to invest more than $1 billion this year on alternative energy development, the head of BP's alternative energy unit said.
The company launched its alternative energy division in 2005 and has said it would spend $8 billion in the sector over 10 years to 2015. Investments are moving forward faster than the company had anticipated and BP expects to pour "a billion plus" into the alternative space this year. spent $1.3 billion in the alternative energy sector last year, which represented some 6 percent of the company's overall investment.
Hungary seeks to ‘clear its name,’ asks for CO2 trader’s data
April 14, 2010.
Total Global Steel Ltd., started in 1999 as a trader on the London Metal Exchange, has yet to turn over the requested data. The country, which didn’t accuse Total Global of impropriety, said an unidentified company broke an agreement not to resell the CO2 credits in
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