Sustainable Development of the Indian Coal Sector
Ananth P. Chikkatur a,*, Ambuj D. Sagar b, T. L. Sankar c
1. Introduction
|
E |
conomic development as well as realization of basic human needs is increasingly dependent on the availability of modern energy services. India’s low levels of per-capita energy supply—the per-capita total primary energy supply (TPES) in the country was only 0.51 ton of oil equivalent (toe) in 2006, which is about one-ninth of the average for Organization for Economic Cooperation and Development(OECD) countries, just over a quarter of the global average, and about one-third that of China [1]—makes it quite clear that the country has to increase its energy availability for raising the living standards of its citizens.
Electric-power is intimately intertwined with modern energy services (such as lighting, refrigeration, and space cooling) and other services, such as water treatment, communications and many aspects of transportation. The statistics for electric power availability in
The quality of power supply in the country is also very poor, with unstable voltages and routine frequency excursions. In fact, the lack of adequate and reliable supply of power is often cited as a critical constraint to industrial development [3]. Furthermore, reducing the use of biomass and combustible renewables, which still account for over a third of the country’s total primary energy supply, and bringing modern energy services (and therefore electricity) to rural areas remain key priorities for the country. Thus, the need to sustain the continued and rapid enhancement of the availability, reliability, and affordability of electric power is seen as the most critical energy issue in
At present, the power sector in
Thus, sustainable development of the Indian coal sector will involve paying attention to two themes: the ability to sustain the increased production of coal in the country and to do so in an environmentally and socially sustainable manner. These are major challenges, yet the substantial institutional changes that the country’s coal and power sectors are currently undergoing and the availability of new and cleaner technologies offer an opportunity to guide the development of these sectors towards greater sustainability.
It is with this perspective that this paper briefly reviews the Indian coal sector and discusses key challenges for its sustainable development, and proposes policy approaches and suggestions to move it in the right direction.
2. Sustaining the growth of coal supply
2.1. Coal supply: past and future
Coal has been mined in
Starting in the 1970s, coal-based thermal power plants were installed rapidly, and demand for non-coking, thermal coal increased (see Fig. 1). In 1970, electricity generation consumed about 13 MT (less than 20% of total coal consumption); this number had risen to about 280MT in 2003 (nearly 75% of total coal consumption); see Fig. 1. Other consumers for coal include the iron and steel industry, cement manufacturers, and industries such as fertilizers, textiles, paper, brick-making, etc. The railways, which entirely dominated coal consumption in the second half of the nineteenth century, only accounted for about 20% of consumption in 1970, and direct coal consumption by the railways ended by the mid-1990s, as the railways became entirely based on electricity and diesel [5].
The iron and steel industry, which primarily consumes coking coal and some high-grade non-coking coal, is the second largest consumer of domestic coal. Domestic coking coal supply has reduced since the mid-1990s, as coking coal reserves in the country are quite limited; hence, the steel industry accounts for much of
Fig. 1 Coal production in
Source: Ministry of Coal Annual Reports [6–8].
Fig. 2 Projected future demand for coal in
Source: Integrated Energy Policy Report [10].
Demand for coal is expected to remain high in the country, especially from the power generation sector. Recent scenario-based projections of coal demand indicate that coal consumption in the power sector could be in the range of 380–500 MT by 2012 [9]. Longer term scenarios from the Planning Commission have indicated that annual coal consumption by the power sector might range between 1 and 2 billion metric tons (BT) by 2031–32, with the total coal demand vary ingany where between 1.5 and 2.5 BT (assuming coal calorific value of 16.75 MJ/kg and 8% GDP growth) [10].2 Coal demand projections by various other agencies are also indicated in Fig. 2. It is the considered opinion of the Integrated Energy Policy (IEP) Committee that the annual coal demand will be about 2 BT by 2030 [11].
It is likely that not all of the coal demand will be met by domestic production. The Planning Commission expects domestic production of coal and lignite to be about 1.4 BT by 2031–32, assuming an annual growth rate of 5.5% [10]. Already, coal demand – driven primarily by demand in coal power plants–has been outstripping supply. Over the two decades, demand for coal has increased at an average annual rate of 5.7%, while production has only increased at 5.1% [12]. Hence, there already is a gap with between coal demand and supply—a shortfall that is projected to increase in the short term [11].3 Although this gap is likely to be met by increasing coal imports,4 it is essential for the domestic coal industry in India to increase production and maintain its recent growth to minimize such a gap for the future (or at least keep it at manageable levels).
There are, however, several challenges that need to be addressed in the domestic coal industry, including better understanding of coal resources, improving coal extraction technology, increasing coal beneficiation to improve quality, and governance and regulation issues.
Notes:
* Corresponding author. Presently at ICF International,
a
b Department of Humanities and Social Sciences, Indian Institute of Technology, Delhi, Hauz Khas, New Delhi 110016, India
c Administrative Staff College of India, Bella Vista, Raj Bhavan Road, Khairatabad, Hyderabad 500082, India
1 http://powermin.nic.in/indian_electricity_scenario/ policy_initiatives.htm, accessed Nov.22, 2008.
2 Coal demand of 2.5 BT occurs in a scenario where coal is the dominant fuel of choice; a demand of 1.5 BT occurs in a scenario where nuclear, hydroelectricity, gas, and renewables resources are promoted aggressively and demand-side management, coal use efficiency, transport efficiency are all increased [10].
3 In recent years, coal supply shortages and critically low coal stock levels have affected many power plants, including National Thermal Power Corporation (NTPC) plants. NTPC had a loss of 3.6TWh in 2004–05 – much of it in their Eastern Region plants– because of coal shortages [13].
4 Import of coal is likely to increase significantly over the next 20–25 years– Any where between 11% and 45% of total coal demand (i.e., coal imports of 70–450 Mtoe) [10] – in order to meet the projected demand. This is a significant deviation from the current situation, where imported coal is only about 6% of consumption.
References:
[1] IEA. Energy balances of non-OECD countries2005–2006. International Energy Agency; 2008.
[2] Ministry of Power. Annual report 2005–06. Ministry of Power, Editor, Government of
[3] UNDP. World energy assessment. In: Johansson JGTB, editor. Overview update 2004. NewYork: United Nations Development Program (UNDP); 2004.
[4] Gupta AB. Whithercoal.
[5] Chikkatur AP, Sagar AD. Cleaner power in
[6] Ministry of Coal. Annual report 1999–00. Ministry of Coal, Editor, Government of
[7] Ministry of Coal. Annual report 2003–04. Ministry ofCoal, Editor, Government of India, 2004. <http://coal.nic.in/content0304.htm>.
[8] Ministry of Coal. Annual report 2005–06. Ministry of Coal, Editor, Government of
[9] CEA. Draftreport on National Electricity Plan (vol. I). Central Electricity Authority, Editor, Government of
[10] Planning Commission. Integrated Energy Policy: report of the expert committee. Planning Commission, Editor, Government of
[11] Ministry of Coal. Report (Part-I) of the expert committee on road map for coal sector reforms. Ministry of Coal, Editor, Government of
[12] Planning Commission. Tenth five-year plan. Planning Commission, Editor, Government of
[13] CEA. Performance review of thermal power stations 2004–05. Central Electricity Authority, Editor, 2005.
to be continued…
Courtesy: Energy Journal (2009), doi:10.1016/j.energy.2008.12.014 reprinted with the permission of the author
Sustainable Hydro Power Policy for Himalayan States (part – III)
Shankar Sharma, Consultant to Electricity Industry
Continued from Volume V, Issue No. 37…
2.2 Social, cultural and heritage impacts
|
S |
ince a large number of human settlements in
· Probably the most affected community from Himalayan dams is the tribal community, who live in isolated places in a small number with distinct identity, language and culture. The influx of migrant workers from other parts of the country for construction can devastate their community life. (Ref.2)
· Tribal populations normally have close ties with rivers, forests, hillocks and animals. With submergence of their sacred elements they will undergo extreme deprivation.
· Influx of migrant workers will result in threat to the culture and identity of the locals. Large influx of migrant workers from other parts of he country to be engaged in dam building activities will put the local communities under severe pressure due to social and economic issues; competition for natural resources such as land and water; increase in price and shortage in availability of construction materials; pressure on language and culture etc.
· A large number of people in Himalayan rural areas depend a lot on the rivers and streams. Hourly, daily and seasonal change in the river flow, due to the construction of dams, will impact them massively. Sharavathy tail race project in Karnataka is a glaring example. Being the fourth hydro electric project on the river Sharavathy, conditional approval was given to run it as a run-of-river scheme, but it has been operating as a peak load station severely affecting the ability of the downstream people to cope up with the sudden gushing of water during the peak hours of the day. Another example is that of
· Various impacts of such large dams extend upto the river deltas; in case of Bhagirathi river it will affect the flow in Ganga and hence will affect the deltas in
· As per an independent report the Tehri Dam Project has affected around 125 villages including the old Tehri town.
· Karnataka’s experience in two river valleys of Sharavathy and Kali has been very sad. The PAFs have been displaced 2 or 3 times within a short span of 20-30 years; initially due to the construction of cascaded dams, and finally to declare the areas as reserve forests. The socio-economic impacts of such repeated displacements have been disastrous to the PAFs.
· The river valleys in
· The vastly reduced amounts of silts in rivers obstructed by dams would have serious impact on the nature and area of river deltas. They are known to have resulted in ingress of sea inlands affecting the water quality. There are reports that in Gangetic delta such erosions have resulted in considerable reduction in the size of delta, and hence there can be an issue of territorial integrity.
Though it is impossible to put a tangible economic value to the losses suffered by our society due to such social, cultural, religious and heritage impacts, it will suffice to say that the combined losses can be very huge, and is difficult to express in words or numbers. It will be not be an exaggeration to suggest that such losses in case of a single large dam, such as Tehri, can be more than the combined financial benefits of few dams.
Table 4 Hydel Projects in Uttarakhand (In various stages of survey, investigation, planning and construction)
|
|
Project Capacity |
Number |
|
1 |
Up to 5 MW |
65 |
|
2 |
>5 MW and < 25 MW |
36 |
|
3 |
>25 MW and < 100 MW |
24 |
|
4 |
>100 MW and < 250 MW |
11 |
|
5 |
>250 MW |
21 |
Source: Various independent studies
2.3 Environmental Impacts
In addition to economic and social issues the construction of dams has been known to adversely impact the local and global environment. Some of the major issues in this regard are:
· A major issue with dams is that the quantity, quality and pattern of water flow in the rivers get impacted with the result that biodiversity dependent on river flow is severely affected (Ref.3).
· A large number of hydel projects, about 150 in number of varying capacities (from 1 MW to 500 MW as in table 4 ), are reported to be in various stages of survey and investigation, planning and construction in the state of Uttarakhand alone. A major concern with a number of dams planned for Uttarakhand has been the combined impact of cascaded dams on environment, flora and fauna. More than 10 dams are reported to be planned / being constructed on river Bhagirathi and its tributaries alone.
· With much of water stored in different stretches of the same river (in case of cascaded dams), there will be very few stretches of free flowing river. The health of a river is known to be affected seriously when its natural flow is obstructed. With many dams on the same river there will be pools of stagnant water as compared to a free flowing river, and towards the tail end a mighty river may become an unrecognizable stream. Rivers Sharavathy and Kali in Karnataka, where multiple dams have been constructed have many stretches of stagnant water.
· Past experience of incomplete or incorrect Environmental Impact Assessment (EIA) in various projects have severely dented people’s confidence in the effectiveness of EIA and Environmental Management Plan.
· Whereas the National Forest Policy has recommended a target of forest /tree cover of 33% of the land area, the national average is less than 20%. If fortunate states like Uttarakhand, with more than 33% of forest /tree cover, take a decision to reduce it the region and the country as a whole will be affected ecologically.
· The proponents of dam based hydel project seem to put forth an argument that dams are benign as far as Green House Gas (GHG) emissions are concerned. But this argument conveniently forgets the fact that the massive vegetation which gets drowned by dam waters can emit Methane Gas (CH4}, which is a much higher potent GHG than CO2. One estimate indicates that the total GHG emissions from the dams in
· Many of the hydel projects are asking for project approval on the basis that they are run-of-river type; meaning that they do not affect the natural flow of river to any considerable extent. But in reality most of them may end up functioning as peak demand power stations generating electricity on an average for only few hours of the day and storing water for the remaining duration of the day. Such projects will generate power during the peak demand hours, probably for 2 to 4 hours once in the morning and once in the evening. Such a practice, as experienced in Sharavathy tail race project in Karnakata, will be against the original claim of ensuring natural river flows. Such diurnal changes in water flow of a river will adversely impact the people, flora and fauna dependent on the riverine ecosystem.
2.3.1 Impact on biodiversity
Being one of the earliest civilizations, our society has attached a great cultural and spiritual value to rivers and the rich biodiversity associated with them. However, since independence our treatment of rivers and the rich biodiversity associated with them has been one of grossly callous in nature.
· A river is known to be most beneficial to the flora, fauna and humans only if its water is fresh and flowing continuously. One or more dams on a river will severely affect this characteristic of a river, and hence will deprive us of all the associated benefits.
· It is very disturbing to note that there are no legally mandatory norms in our country which stipulates the minimum fresh water flow in a river with or without hydro electric dams. Authorities seem to consider the water flowing to sea as a waste, without appreciating the need for such a flow to conserve the ecosystem. Such ‘Environment Flows’ are required to maintain the ecological integrity of a river and its associated ecosystems, and of the goods and services provided by them. (Ref. Himamshu Thakkar of SANDRP).
· In view of the fact that many hydro electric projects involve diversion of river water through tunnels of many kM in length, if there is no minimum ‘Environment Flows’ the stretch of the river between the dam and the point where the water passing through the hydro turbines reenter the main course of the river will become dry. In many cases this stretch of a river can be few kM, and the river ecosystem in such a stretch could be destroyed.
· Dams prevent the silt from flowing down the river and seriously affect the availability of rich nutrients to the bio-diversity down stream.(Ref. 3)
· The
· Dams are known to have reduced populations of migratory fishes or caused extirpation of genetically distinct populations, as well as diminishing estuarine fishes in most continents. In
World Charter for Nature was adopted by consensus by UN General Assembly in 1982. It has provided some guiding principles for protecting biodiversity. Some key principles are: (Ref 3)
· Activities which are likely to cause irreversible damage to nature should be avoided.
· Activities which are likely to pose significant risk to nature shall be preceded by an exhaustive examination; their proponents shall demonstrate that the expected benefits outweigh potential damage to nature, and where potential adverse effects are not fully understood, the activities should not proceed.
· Environmental Impact Assessment should be thorough, be given sufficient time, and be carried out in an open and transparent fashion.
As a society do we have the necessary commitment and means of following these guidelines in an objective sense?
If we take all these issues into objective account the aggregate cost to the society of big dam based power projects is much higher than the cumulative benefits. Unfortunately, it has been a practice where the direct and indirect costs are not objectively considered and benefits are exaggerated in a cost V/S benefit analysis to get the project approval.
2.3.2 Value of bio-diversity
At the global scale the value of ecological functions as well as resources of the environment (both terrestrial and aquatic) has been estimated to be about $33 trillion per year, which is almost twice the global domestic product. Fresh water ecosystems are considered to be ecologically more valuable than the terrestrial ones (Ref.3).
How much is the potential value of ecological services associated with forests and fresh water resources of Uttarakhand? Bio-diversity has many kinds of values and potential benefits for the humans and the world as a whole. It will be a wise policy to apply Precautionary Principle and take necessary action to conserve Bio-diversity before components of it are permanently lost. This approach is advocated by the Convention on Biological Diversity (Ref.3).
All these environmental impacts, some of which have many intangible benefits to the society, put together can amount to a huge loss / benefit depending on how they are treated. The international community has attached so much importance to the forests that the main outcome of the recently concluded UNFCC at
to be continued…
Views are those of the author
Author can be contacted at [email protected]
NEWS BRIEF
NATIONAL
OIL & GAS
Upstream
ONGC defends strategy, cites sound cash flow at OVL
March 9, 2009. State-owned ONGC responded to the Goldman Sachs criticism over growth prospects saying pointing out its achievements: acquired 43 overseas oil and gas assets in lands in just six years. It acquired properties abroad through its foreign arm OVL. OVL had only one property in 2003. Investments in some of the properties have been paid back much before the evaluated pay back period. Pointing at the cash flow of its wholly-owned subsidiary, ONGC said OVL has already paid back a loan amount of Rs 11,820 crore. The parent company has extended total Rs 25,684 crore to OVL as loans.
The percentage of overseas production to total production of ONGC group has moved from 7.23% in 2002-2003 to 15.42% in 2007-08. The company added 255.01 mtoe oil of reserves through acquisition of overseas properties since 2003-04. Despite subsidy discounts, ONGC’s retention price has steadily increased. Subsidy discounts to public sector oil marketing companies is a practice of the government since 2003-04. Subsidy discounts are applicable to crude produced from nominated blocks only, where there is no production sharing or profit oil sharing with the government. The company had disclosed the risk related to subsidy to the potential shareholders in its initial public offer (IPO) document in March 2004 and these facts are well known to investors.
RIL hits green barrier in CBM projects
March 9, 2009. Reliance Industries Ltd appears to be in a spot over efforts to unlock gas trapped in layers of coal, or CBM (coal bed methane) projects in two acreages. In the absence of statutory state clearances, the company faces the prospect of being fined for failure to stick to the promised timelines for exploration unless the Centre allows its request for more time. The company has sought time extension from the Centre for one acreage each in Rajasthan and Chhattisgarh.
In the Rajasthan acreage, identified as Block BS (II) CBM 2003, it is unable to start the second phase of work as the Rajasthan Pollution Control Board (RPCB) is dragging its feet in renewing clearance. The company faces a similar situation in the MP acreage, Sonhat, which also spans some areas in Chhattisgarh. In both cases, RIL has asked time extensions from the Centre for the second phase of work on excusable grounds. In the Rajasthan acreage, the company’s clearance expired in January 2008. In the meantime the company completed the first phase but is unable to start the second phase, due from September 2008, as fresh permits are yet to be granted. RIL has limited its first phase work only in the Madhya Pradesh part. The oil ministry and the exploration regulator have asked RIL for details of its correspondence with state authorities. This is being done to determine the facts of the company’s claim for more time under excusable delays. RIL had also faced problem in Rajasthan over its move to seek a reconnaissance permit for lignite in Barmer. State-owned Neyveli Lignite Corporation opposed the move saying the area proposed by RIL overlaps acreage marked for Centre’s special scheme for government-run companies.
ONGC board approves renewal and developmental projects
March 6, 2009. ONGC Board in its 189th Board Meeting on 5th March 2009 approved sanctions for following investment proposals:
1. Renewal of Lakwa and Lakhmani Surface Facilities in
2. Project Hydra under Panna-Mukta JV
Development of PK & South West Panna (SWP) Areas under Panna Mukta Joint Venture was approved by ONGC Board for US$ 131.60 million (i.e 40% share of ONGC of total expenditure of US$ 329 million). The project involves installation of 2 well head platforms associated pipelines and drilling of nine wells. These additional facilities will give recovery of 14.50 MMbbls of oil and 21.39 BCF of gas from PK and SWP areas of Panna Field over period of 11 years. The ONGC share from these projects is 5.80 MMbbls of oil and 8.56 BCF of gas.
3. Development Plan of PL Area under Panna-Mukta JV
The project involves development of un-drained area “PL” in Southern part of main field. The estimated cost of the project, including pre-development cost is UD$ 186.41 mn (ONGC share of US$ 74.6 mn). Incremental recovery of the order of 8.26 mn bbls of Oil and 12.25 BCF of gas (ONGC share of 3.30 mn bbls of oil and 4.90 bcf of gas) has been envisaged in this plan. Panna-Mukta field is being operated by Joint Venture consortium of ONGC (40%), RIL (30%) and British Gas Exploration and Production India Ltd (BGEPIL) (30%).
ONGC to delist Imperial Energy from LSE
March 4, 2009. ONGC is said to delist Imperial Energy Plc at the London Stock Exchange on March 9 and also plans to consolidate the company's operations in western
‘$60 right price for upstream oil buys’: RIL
March 4, 2009. According to Reliance Industries, $60 a barrel is the right price for valuing potential oil exploration acquisitions as prices are expected to rise 50 per cent in next few years. For the current scenario, $40 is a fair price for valuing a producing property but for long-term, meaning four to five years, $60 is the right price (for exploration assets). While Reliance is best known for operating the world's biggest oil refining complex on
Oil, IT companies ahead in CISF priority list
March 10, 2009. Oil refineries, information technology, power plants, airports and seaports will get preference over other sectors of the economy in getting the security cover of the elite Central Industrial Security Force (CISF), which has been authorised to extend security to the private sector. Already 52 private companies, including Essar Oil and Reliance Industries-owned refineries at
GAIL gets 9 pc equity in OPaL's Dahej project
March 7, 2009. GAIL has acquired nine per cent equity stake in a petrochemical plant project of ONGC Petro additions Ltd (OPaL), coming up at Dahej in
Reliance Industries commences petrol sales from new refinery
March 6, 2009. Reliance Industries sold its first non-oxygenated gasoline cargo from its new refinery for end-March loading. The 95-octane parcel was sold to an undisclosed oil major at US$1/barrel discount to
IOC plans to shut key units from April
March 6, 2009. State-run Indian Oil Corp is planning maintenance work at its key plants during April-September, including a full shutdown from late June of its 160,000 bpd
Essar Oil plans shutdown of
March 6, 2009. Essar Oil will shut down of the refinery at
January oil refining output drops 2.6 pc yoy
March 5, 2009. According to the Government data, crude oil processing by
RIL to lease out fuel stations to HPCL
March 5, 2009. RIL is in talks to lease out its closed retail petrol pumps to HPCL. The public sector oil marketing company has issued a limited tender to five merchant bankers to advise it on the deal.
Transportation / Trade
RIL likely to change gas sale agreements
March 10, 2009. Reliance Industries Ltd, which had sent draft gas sales purchase agreements to its fertiliser consumers, is likely to tweak some of the major clauses in the agreement to address the concerns raised by these companies. But, the sales agreements with individual companies, necessary to begin gas supplies, are unlikely to be ready before mid-April. Fertiliser companies including IFFCO, Kribhco, Indo-Gulf, Nagarjuna Feriilser, Zuari Agro, Chambal Fertilisers and Oswal Fertilisers, who have been in discussions with Reliance Industries for gas supplies from the Krishna Godavari basin, had raised some serious objections to the clauses put forth in the draft agreement. The main objections raised by the fertiliser companies refer to the take or pay clause and the penalties they have to bear in case they fail to buy the committed amount of gas. According to the draft agreement, while the fertiliser companies are liable to pay such penalties, RIL as a gas supplier has no such obligation even if there is a shortfall in gas supplies. After a meeting of member companies here last week to discuss the concerns, Fertiliser Association of India (FAI) DG Satish Chandra wrote to the fertiliser secretary that the take or pay clause should be imposed on both the supplier and the consumers equally. Or else, fertiliser companies could be exempted from paying these penalties if RIL manages to sell that gas without incurring a loss, that is, by selling the gas to other consumers. RIL is said to have agreed to tweak this clause and redress this issue. RIL proposes to adjust the payments against actual consumptions. It will work like a refund, adjusted against actual billing. RIL’s argument against a penalty on itself as the supplier stems from the fact that it was not given either the marketing or the pricing freedom for the gas, even though this was provided under the government’s own policy on exploration. The other issue raised by the FAI was to do with multiple agreements. Fertiliser companies had said they were willing to sign only one agreement (or agreements with the transporters Reliance Gas and Transportation Infrastructure Ltd and GAIL and gas supplier RIL that could be read as a single agreement, kicking off at same time over the same period) with the fuel supplier instead of multiple agreements with fuel supplier and transporter. RIL had suggested two agreements, one, with itself as the gas supplier and two, with its pipeline company RGTIL. RIL, however, may not have an option in this case as the regulator has insisted on separate companies for marketing and production in the gas sector.
‘Pak to go ahead with IPI project even without
March 10, 2009. Pakistan has expressed its readiness to go ahead with the $7.5 bn gas pipeline with
KPTL to lay 550 km of pipeline for HMEL, bags Rs 385 crore order
March 10, 2009. Gandhinagar based Kalpataru Power Transmission Limited (KPTL) has bagged contract of Rs 385 crore for laying 550 km of pipeline as Part A of Mundra-Bhatinda pipeline project for transportation of crude oil from Mundra to Guru Govind Singh Refinery at Bhatinda. The project is being set up by Hindustan Mittal Energy Limited (HMEL), a joint venture of Hindustan Petroleum Corporation Limited (HPCL) and LN Mittal Group. Part A of the Mundra-Bhatinda pipeline project also has in its scope one pumping as well as intermediate pigging (IP) station at Dhansa, two IP stations, 17 SV stations and one dispatch station at Kota which involves all civil, electrical, piping, mechanical and instrumentation work. The pipeline scope starts at
Ravva gas: GAIL told to use D6 price as reference
March 9, 2009. The Petroleum Ministry has asked GAIL (
Petronet LNG to resume imports of spot cargos
March 6, 2009. Petronet LNG Ltd., has reportedly resumed imports of the fuel on the spot market after a two-month abatement to meet demand. Accroding to reports, Seri Angkasa, a 145,100 cubic-meter LNG tanker, is expected to arrive at the terminal in Dahej on the west coast of
Policy / Performance
‘Oil auction suffer due to income tax break’: Deora
Mar 6, 2009. According to Murli Deora, the lack of an income tax break on gas production is hurting interest for the nation’s next auction of oil areas. There are plans to promote the auction in
‘Low prices may hamper NELP VIII’: Reliance
March 4, 2009. The forthcoming auction of oil and gas assets may not be very attractive for investors, as the explorers are finding it difficult to meet their existing work commitments amid the global credit crunch and falling crude prices. The Petroleum Ministry is aiming to launch the eighth round of the New Exploration Licensing Policy (NELP) in April. The major problem seen in NELP rounds is that people had been bidding as it were the real estate business.
POWER
Generation
BHEL wins order for Tirora thermal power project
March 9, 2009. BHEL has won a major contract for the manufacture and supply of generator transformers against stiff competition from European MNCs and Indian companies. Valued at Rs810mn, the order has been placed on BHEL by Powergen Infrastructure for the upcoming 1,980 MW (3x660 MW) Tirora Thermal Power Project of Adani Power Maharashtra Ltd. (APML). This is the second order won by BHEL in a gap of one month, for generator transformers for 660 MW supercritical sets. In February, the company had bagged an order for the supply of 7 single-phase generator transformers from NTPC Ltd. for its Barh Thermal Power Project. The present order envisages design, engineering, manufacture, supply and installation of 10 numbers 270 MVA, 400 kV single-phase generator transformers, which will be manufactured at the company’s
Financial closure for Sasan UMPP by March end
March 8, 2009. Anil Ambani Group's Reliance Power Ltd is likely to achieve financial closure for the Rs 19,000- crore Sasan ultra mega power project in Madhya Pradesh by this month-end. For the 4,000-MW project, which is to be funded in a 75:25 debt-equity ratio, the company has tied up with different banks to raise Rs 12,000 crore and the financial closure will be achieved by March-end. The company in late January had said it would achieve the financial closure in a month's time. However, government officials said the entire land for the project has not yet been acquired and financial closure for the project cannot be achieved unless 3,285 acres is completely acquired. According to the project appraisal done on January 28 this year, only 275 acres had been acquired. The land for ash pond and township is left to be acquired. The Sasan project would be funded by a consortium of 10-12 banks, led by the State Bank of India, and includes domestic financial institutions such as the Power Finance Corp and the Rural Electrification Corp. Reliance Power had recently announced that the financial closure for its imported coal-based 4,000 MW Krishnapatnam UMPP is likely to be done by the end of June.
Officials worried whether hydel power can pull through summer
March 8, 2009. Hardly a week after implementing the Government Order to increase the hydel power generation to resolve the state’s power crisis, the officials at Karnataka Power Corporation Limited (KPCL) are now praying for early rainfall, considering the depleting water level at the major hydel reservoirs. The State Government might have found a solution to power woes by directing to increase Hydel power generation to meet the growing demand, but the KPCL officials and experts in Power department are worried whether the hydel power can pull through the summer as the State is drawing nearly 40 million units per day from them and this has led to the decrease in reservoir level. At Sharavathi, the biggest reservoir in the State, there was a good inflow in 2008 during monsoon, but as the monsoon ended soon, it decreased drastically. The water here now stands at 1782.6 feet against its capacity of 1.52 lakh million cubic feet and it is not much different with the other hydel reservoirs. The hydel power is usually utilised to meet the peak load demand, but considering the scarcity, the hydel power plants are contributing almost double its normal generation, but if it drops down there will severe scarcity and lead to the collapse of the state grid. On 5 March, 2009 the three hydel projects have contributed 43 million units of power and again on March 7 the contribution is 38 million units. Though the newly established Bellary Thermal Power Station was expected to bail out the state from darkness, the unit according to the KPCL needs to be seasoned.
Koodankulam N-power project to start supply by December
March 7, 2009. The Koodankulam Nuclear Power Project (KKNPP) is most likely to start supply of power by December 2009. More than 95 per cent of the works in the first unit had been completed and generation of electricity would most likely start from December 2009. Of the six reactors, of 1,000 MW each at the site, 900 MW of electricity generated from the first two units would go to Tamil Nadu and the remaining quantum would be shared by other southern States. Also, the number of reactors is likely to go up to eight instead of six as originally envisaged. NPCIL was planning for massive expansion programmes in the existing as well as new sites. NPCIL operates 17 units across the country with a total installed capacity of 4,120 MWe and is currently building five units with a total installed capacity of 2,660 MWe. At Jaitapur in Maharastra, six French nuclear reactors each with a capacity of 1,650 MW have been planned. Based on Indo-French agreement, NPCIL would have technical collaboration with Areva of France as a supplier and set up Areva-built European Pressurised Reactors with lifetime fuel supply at Jaitapur.
NTPC to invest Rs177bn in FY10
March 4, 2009. NTPC Ltd. is reportedly planning to invest Rs177bn for adding 750 MW of capacity by the end of this month. The state-owned power utility giant may borrow 70% of the amount it plans to spend. NTPC plans to add 750 MW of capacity by the end of this month.
Sahara to build mega power plant in Orissa
March 4, 2009. Sahara India Power Corporation Ltd., the subsidiary of Sahara India Pariwar’s real estate company Sahara Prime City Limited signed Memorandum of Understanding (MOU) with the Government of Orissa for setting up a 1320 MW (2 x 660) Coal Based Thermal Power Plant in Turla Tehsil of Balangir District, Orissa at an investment of about Rs56.04bn. To be built on an area of 1,500 acres, the Sahara Power’s Turla plant is planned to commission its first Unit of 660 MW by February 2013 while the second unit of 660 MW is expected to be commissioned within 6 to 8 months thereafter. The plant is planned to be set up through Joint Venture Participation with Power Companies from different parts of the world. Sahara India Power Corporation Limited will develop fuel based or non conventional power plants using the latest and emerging technologies. Sahara Power will set up a 5 MW Grid Interactive Solar Photo Voltaic Power Plant in Dhenkanal District of Orissa at an estimated investment of about Rs1.25bn. The Company has already received an in-principle approval from the Government of Orissa through Orissa Renewable Energy Development Agency (OREDA). Sahara Power has tied up with Solar Integrated Technologies Inc. (SIT)
Transmission / Distribution / Trade
RPTL signs agreement with Western Region power utilities
March 9, 2009. Reliance Power Transmission Limited (RPTL), a wholly owned subsidiary Company of a Mumbai-based Reliance Infrastructure Limited (Reliance Infra), through its two SPVs, has signed Power Transmission Agreements (PTA) with eight beneficiaries from the Western Region for two Inter-State Power Transmission Projects, viz. Project B & C, under the Western Region System Strengthening Scheme – II (WRSSS – II). On the directive of Central Electricity Regulatory Commission (CERC), the Power Grid Corporation of India Limited (PGCIL), as the bid process coordinator, had invited tariff based competitive bids way back in year 2005 for establishing 400kV Double Circuit Transmission Lines of around 1500 Kms under WRSSS – II, in the Western Region, prominently in the States of Maharashtra (1000 Kms.) and Gujarat (500 Kms.), where the renowned players like Tata Power, Lanco, GMR, L&T, etc. had also participated in the bid. On winning the project as the lowest bidder, RPTL, a wholly owned subsidiary company of Reliance Infra, obtained transmission license from the Central Electricity Regulatory Commission (CERC) and was entrusted to establish the transmission lines under the scheme. After prolonged deliberations with the Western Region beneficiaries, PTA has been signed now. With this RPTL will become the first ever private transmission utility to build these first ever 100% privately owned inter state transmission projects in the country and on completion of the projects as scheduled by the end of December 2010, they would facilitate the smooth flow of surplus power in Eastern and Northern Regions of the country to Western Region. Reliance Infra, which has been entrusted to carry EPC works for the project, has already commissioned its process to beat the deadline by marching ahead with the detailed engineering, designing and tower testing. Other required compliance activities to obtain necessary statutory clearances from various authorities are being undertaken by the project companies so as to facilitate Reliance Infra to commence with the actual construction work for the projects. These projects, once completed and commissioned successfully, will benefit Western Region constituents, which include, the Maharashtra State Electricity Distribution Company Limited, (MSETCL), Madhya Pradesh Power Trading Company Limited (MPPTCL), Gujarat Urja Vikas Nigam Limited (GUVNL), Chhattisgarh State Power Distribution Co. Limited (CSPDCL), Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVNL), Electricity Department, Govt. of Goa; Electricity Department, Administration of Daman & Diu and the Electricity Department, Administration of Dadra & Nagar Haveli.
Save energy, appeals power supply company
March 9, 2009. Power shortage worsening, the Chamundeswari Electricity Supply Company (Chescom) has now turned to the consumers in
Diamond Power bags order for rural electrification works
March 9, 2009. Diamond Power Infrastructure Ltd. (formerly Diamond Cables Ltd.) informed about the receipt of Letter of Award for supply of equipment, materials and erection of Rural Electrification works under Diyungbra, Harangago,
Transco spending Rs. 25 crore per day to purchase power
March 9, 2009. The unrestricted power demand in the State touched an all-time high of 230 million units (mu). Pooling power from all sources, APTransco could supply only 212 mu. As a result, Transco and distribution companies resorted to load shedding on industries wherever dedicated feeders were available, even while continuing a six-hour cut daily in rural areas. These measures saved 18 mu. The daily demand is likely to reach 248 mu towards March-end when agriculture load will go up as will domestic consumption. A sum of Rs. 25 crore was being spent everyday on purchases from the market. Transco stepped up hydel generation from Srisailam. As a result, hydro-electric stations, overall, contributed 33 mu. Following a directive to reduce the load, the discoms began consulting industries whether they wanted a two-day power holiday in a week or a load-shedding of three to four hours daily.
Power Grid to invest Rs12bn in telecom biz in 3 years
March 9, 2009. Power Grid Corp of India Ltd. (PGCIL) plans to invest around Rs12bn over the next three years in its telecom business. The company is in advanced talks with a couple of television channels for providing its network for video streaming facilities. The company will be providing its fibre-optic network mounted over its overhead transmission network to provide the required bandwidth to television companies to air their video content. PGCIL currently offers end-to-end leasing of bandwidth to telecom operators, through its overhead transmission infrastructure. It currently has a fibre-optic network length of 20,000 km and will take it up another 5,000 km by the end of the next financial year. By the end of the XIth Plan period (2012), the company is likely to have a network length of close to 30,000 km. PGCIL connects 128 cities in India including some remote areas in Jammu & Kashmir, Himachal Pradesh and the Northeast such as Assam, Manipur, Meghalaya, Nagaland and Tripura with 80% of these are overhead cables mounted on the company's existing power transmission towers.
KEC Intl bags two orders worth Rs3.65 bn
March 6, 2009. KEC International Ltd has bagged two orders worth Rs3.40bn from Power Grid Corporation of India Limited (PGCIL) and one order worth Rs 250mn from Central Organization for Railway Electrification (CORE),
Power consumption in Kerala at record level
March 5, 2009. Power consumption in Kerala is climbing to record levels despite the 30-minute daily load-shedding that has been in force for some time. According to officials in the Kerala State Electricity Board (KSEB), daily consumption touched 47.98 million units from an average of 42 million units recorded till February 22. The board is expecting the consumption to cross the 50-million unit mark when the load-shedding is lifted for nearly three weeks in connection with the SSLC examinations this month. The board had planned to reduce generation from hydro-electric power stations till June when the south-west monsoon is expected to set in. The cutback in generation was warranted by low water levels in the hydel reservoirs. The situation demands that KSEB will have to depend more on the national power exchange system than anticipated earlier to cater to the surging demand. Here again, the scenario is grim with other power-starved States also increasingly looking up to the system to meet their demand.
Kalpataru Power bags Rs3.73bn order from Power Grid
March 4, 2009. Kalpataru Power Transmission Ltd (KPTL) has announced that the Company has bagged orders worth Rs3.73bn from Power Grid Corporation of India Ltd (PGCIL) for supplying power transmission equipment. The company would be supplying and erecting transmission towers for 413 Kms and would also provide 765 KV S/C transmission lines associated with Sasan Ultra Mega Power Project for Silwar-Satna and Satna-Bina section. The work on the orders secured from PGCIL will commence from March 2009 and the project is scheduled to be completed within 27 months. The company has enhanced its installed manufacturing capacity from 54,000 MT p.a. in 2001 to 84,000 MT in 2005 and then to 108,000 MT p.a. in 2008. KPTL’s new capacity has been operational from September 2008 onwards.
OERC fixes new tariff for CPP power
March 10, 2009. To enable Grid Corporation of Orissa (Gridco), the bulk supplier of power in the state to source power from the Captive Power Plants (CPPs) and the cogeneration plants, the Orissa Electricity Regulatory Commission (OERC) has come out with a new tariff order for purchase of power. The Commission has fixed the price for procurement of power by Gridco from the CPPs at Rs 3 per unit while the tariff for purchase of power from the cogeneration plants Like Nilachal Ispat Nigam Limited and Aarti Steel has been pegged at Rs 3.10 per unit. The power procured by Gridco from CPPs and the cogeneration plants is meant for sale to the distribution companies in the state. For procurement of surplus power meant for power trading, OERC has set an indicative rate of Rs 3.50 per unit. However Gridco and the individual CPPs or the cogeneration plants can enter into further negotiations for an agreed price above this indicative rate on the condition that the price would not unduly vary from the indicative rate fixed by the Commission. The price of power purchase from the CPPs and the cogeneration plants declared by OERC would be effective from March 1 this year. The tariff for power purchase was fixed by the Commission earlier this month. OERC’s move to come out with the procurement price of power comes in response to Gridco’s plan to purchase 400-500 MW of power from the CPPs and the cogeneration plants to tide over any possible deficit of power in the state and ensure uninterrupted supply of power over the next four months. The current peak power requirement of power in the state is 2,800-3,000 MW while the non-peak demand stands at around 2,500 MW.
Govt. making all efforts to purchase power
March 10, 2009. The BJP government in Karnataka has been making all efforts to purchase power from available sources including
Eleventh Plan power capacity target unlikely to be met
March 9, 2009. The power generation capacity addition target of 78,700 MW set for the Eleventh Plan period is unlikely to be met. It is believed that 40,000 MW is certainly achievable, 60,000 MW is a possible target but 78,000 MW looks a bit difficult. Under the 11th Plan period, 59,693 MW is slated to come from thermal projects, whereas hydro and nuclear projects are expected to generate 15,267 MW and 3,380 MW, respectively. At present, the country has an installed capacity of 1,47,402.81 MW, including 93,392 MW from thermal, 36,647,76 MW from hydro, 4,120 MW from nuclear and 13,242 MW from renewable energy sources. Ensuring energy security is one of the biggest challenges that the country faces, especially in light of the volatility that the international energy market is currently experiencing.
Bigger Bench to decode electricity tribunal powers
March 9, 2009. A constitution Bench of the Supreme Court will consider whether the Appellate Tribunal for Electricity has the jurisdiction to deal with the validity of regulations framed by the Central Electricity Regulatory Commission. The Bench was hearing a case filed by power trading firm PTC India. The company had challenged a decision by the tribunal that it was not empowered to look into the validity of the regulations framed by the CERC. PTC had challenged CERC’s regulations that fixed trading margin in 2006. The tribunal had cited an earlier apex court judgement while expressing its inability to hear PTC’s plea against CERC.
The apex court had earlier held in the West Bengal Electricity Regulatory Commission case that the tribunal, which is a creature of statute, cannot question the provisions under which it functions. Considering the importance of the matter, it was necessary to refer the matter to a larger Bench to consider whether the West Bengal Electricity case can have application to the cases coming under the 2003 Act (Electricity Act, 2003), where the parties go before the tribunal in terms of Section 121 of the 2003 Act. The order of the apex court in the West Bengal Electricity Regulatory Commission case pertained to the Electricity Regulatory Commission Act, 1998. However, the issue of power trading margin falls under the Act of 2003. There was a conceptual difference between the provisions contained in the Acts of 1998 and 2003, PTC had said. It said that Section 121 of 2003 Act gives ample powers to the tribunal to deal with the matter.
Tatas, Anil out of DPSC stake race
March 9, 2009. Speculation is already rife that three prominent bidders, Tata Power, Reliance Infrastructure and Torrent Power, are no longer proposition. None of them took part in the last bidders’ meeting of DPSC. The next bidders’ conference would be held. Reliance Infrastructure and Tata Power are the top companies among private sector power utilities in
Incidentally, JSW already has 32.6% of DPSC’s shares pledged to it by Descon, which happens to be DPSC’s single-largest shareholder. The consortium partner of Quippo, Environ Energy, holds around 6% stake in the power utility. It is not possible to specify the number of companies who will submit bids. All 16 companies have been invited to attend the meeting on March 10. Some of the reservations about DPSC also arise from concerns about its future.
DPSC has a plan to add 500 MW (2x250 MW) in the next few years at a cost of Rs 2000 crore. Although it has identified the 200 acres necessary for this purpose, it has not yet acquired the 140 acres which it needs to buy since about 60 acres are there with it. Even the coal linkage is not there till date. Moreover, the distribution license of DPSC, the company’s most lucrative asset, is set to expire on December 2012. The state electricity regulator would then have to decide on the fate of the company. Besides, pollution control authorities and the regulator have directed DPSC to close down a 10 MW power plant, which the firm plans to do by June-July. Once that happens, DPSC’s effective capacity would become 30 MW.
Devoid of electricity, villagers threaten poll boycott in UP
March 7, 2009. The residents of a village in Uttar Pradesh have threatened to boycott the coming Lok Sabha polls if electricity is not provided in their area. Even 13 years after being inducted into Uttar Pradesh government’s
Ambedkar
Fresh twist to RIL, NTPC gas supply pact
March 7, 2009. Reliance Industries is reportedly willing to supply gas to NTPC at the Government-fixed rate of $4.20 an mmbtu. However, if this was to happen, NTPC must withdraw the pending case in the Bombay High Court and arrive at a court-administered settlement. NTPC and RIL are locked in a legal issue in the Bombay High Court over the implementation of a gas supply contract between them. NTPC wants RIL to supply the contracted quantum of gas mentioned in the letter of intent, which was signed by both companies in 2005. As per NTPC, RIL should fulfil its contractual obligation of supplying 12 mmscmd of natural gas.
NTPC is of the view that even if it wins the case against RIL and gets a binding contract, it will not be able to get the Centre to approve of the earlier contracted price of $2.34 an mmBtu. It fears that it will, instead, insist upon the Empowered Group of Minster’s decided price of $4.20 an mmBtu. RIL was also likely to amend its written statement filed in the RIL vs. NTPC case. Since this is at the trial stage, an amendment to the written statement could further delay the case and consequently the gas supplies to NTPC. The public sector major had approached RIL for gas supply when the injunction on gas supply was lifted by the court in February. This was, however, turned down by the latter. RIL took a view that due to the ongoing case, it was not bound to make any supply at the Government-approved rate of $4.20 an mmBtu.
CIL may join Ircon-Rites in rail project
March 6, 2009. As part of its product evacuation plan from
Power firms head to
March 5, 2009. The enactment of a new, more liberal, mining legislation in
Govt. allots coal block in orissa to Jindal Steel & Power
March 4, 2009. Jindal Steel & Power Ltd has announced that Government of India has allotted Ramchandi Promotional Coal Block in Orissa to Jindal Steel & Power Ltd. on February 27, 2009 for the proposed Coal to Liquid (CTL) project. The CTL project is yet another feather in JSPL's cap. The project will produce 80000 barrels per day (4.0 mmtpa) crude using environment friendly Indirect Coal Liquification technology developed by M/S Lurgi of
State demands 8 battalions SF to protect projects
March 4 2009. Manipur government has demanded provision of altogether eight battalions of Central security forces for deployment in project areas of Tipaimukh Hydro Electricity Project and Jiribam-Imphal Rail Line in the North Eastern Council Steering Committee. In the meeting which chair by the Union Home Secretary Madhukar Gupta, state additional chief secretary, (planning and home) DS Poonia represent the state. Joint secretary MHA (Border Management) Jarnail Singh also took part. Deployment of at least four battalions each at the two projects sites above the presently stationing security forces was proposed by the state stressing the needs of flashing out militants operating in the areas where the projects are taking up. As per the government assessment reports, the area where the Tipaimukh project located is dominated by militant outfits, Hmar People Convention-Democratic (HPC-D) and Hmar National Army (HNA). Besides UNLF, NSCN(K), NSCN(IM) etc. are also actively operating. The controversial Tipaimukh Hydro Electricity Project located within Manipur bordering with Mizoram state under Purbung sub-division of Churachandpur district at the confluence of Tuivai and
INTERNATIONAL
OIL & GAS
Upstream
Bangladesh approves Chevron gas investment plan
March 9, 2009. The state-run Bangladesh Oil, Gas and Mineral Corporation or Petrobangla approved an investment plan of
Maurel & Prom starts production from Onal in
March 9, 2009. Maurel & Prom reported that production at the Onal field began on March 9, 2009 with the opening of the first 11 wells on platforms PF-500, PF-700 and PF-900, at an initial provisional rate of 10,000 barrels per day at 100%. Oil processing and storage commenced at the Onal facilities on February 23, following the start-up of the Omko field (production of 3,000 bbl/d at 100%). The export pipeline (120 km) between Onal and the Coucal delivery point is currently being filled. The first oil is expected to arrive at Coucal before the end of the week.
Oselvar field development plan submitted to Norwegian authorities
March 9, 2009. Norwegian Energy Company ASA (Noreco) reports that the development plan for Oselvar has been submitted to Norwegian authorities. Noreco owns 15% of the field, and will book an additional 7.8 mn barrels of oil equivalents, a 24% increase in the company's 2P reserves. The field is expected to start producing in the fourth quarter of 2011, and will increase Noreco's production by 2,700 boepd. The reserves of the development are 52 mn boe. Noreco's share is 7.8 mn barrels (3.7 mn barrels of oil and 4.1 mn boe of gas), and these will be added to Noreco's proven and probable reserves (2P) at the end of Q1 2009. This excludes any contribution from the
OMV acheives first gas from Latif field in Pakistan
March 9, 2009. OMV, the leading energy group in the European growth belt, has announced along with its joint venture partners ENI and PPL the start of the extended well test of Latif-1 located in the Latif Block, about 100 kilometers from Sukkur in southern Pakistan's province of Sindh. OMV's current production in
StatoilHydro makes North Sea discovery at Katla
March 9, 2009. Oil and gas have been encountered by StatoilHydro in the Katla prospect, which lies 11 kilometers southwest of the Oseberg South platform operated by the group in the Norwegian North Sea. Proven recoverable volumes are 50-80 million barrels of oil equivalent, with the bulk of the resources occupying the Tarbert formation in the upper Brent group. Oil and gas were found in this structure, while gas was also proven in Upper Jurassic reservoir rocks belonging to the Heather formation. The find will probably be developed and produced through a tie-in to one of the existing subsea installations in this part of the
Nicaragua inks new offshore exploration deal
March 6, 2009. The government of
Lukoil says proven reserves fall to 19.3 bn barrels
March 6, 2009. According to Lukoil proven hydrocarbon reserves fell to 19.3 bn barrels of oil equivalent (boe) in 2008, but
Downstream
Sinochem's Quanzhou refinery gets govt. approval
March 9, 2009. Sinochem Corporation has been approved to build a 12 mtpa oil refinery in Quanzhou, a coastal city in southeast
Total to cut runs at European refineries
March 9, 2009. French oil major Total will reduce runs at its refineries operating in
China refining capacity to surge in next two years
March 6, 2009.
Work on Malaysian oil refinery complex to start in July
March 5, 2009. Work on a crude oil refinery complex, part of the Sungai Limau Hydrocarbon Hub (SULIHH) project off Yan will start in July. The project that would take three years to complete include a 320 km crude oil pipeline from Yan, Kedah to Bachok, Kelantan. Sungai Limau Hydrocarbon Hub (SULIHH) was formerly known as the Yan Petroleum Industry Zone (ZIPY). The Kedah population will gain from the offshore project as it will create artificial reef good for fish breeding. SULIHH would start operation after three years generating revenue of RM297 mn (US $ 80 mn) annually to the Kedah state government. The mega project is supported by two large oil companies namely Merapoh Resources Sdn Bhd (oil refinery) and Hijaz Refinery Sdn Bhd (oil storage). Investments in SULIHH was expected to reach some RM83 billion capable of offering numerous job opportunities to people in Kedah. The oil refinery project involves the construction of a 50 km pipeline to transport crude oil from Kuala Jerlun to Bukit Kayu Hitam.
Products of
March 4, 2009. Petrol products from
Transportation / Trade
CNPC begins preliminary work on third West-East pipeline
March 9, 2009. China National Petroleum Corp. plans to invest more than CNY100 bn ($14.6 bn) in a third West-East natural gas pipeline. Preliminary work has already started on the pipelines, which will likely have an annual transmission capacity of 20 bn - 30 bcm of gas sourced from
CNOOC to invest in S. China petchem plants, pipelines
March 6, 2009.
Oil thieves sabotage Chevron pipeline in Nigeria
March 6, 2009. Oil thieves sabotaged a Chevron-operated pipeline in the restive Niger Delta but no oil production was affected. Troops discovered oil spillages from a burst oil pipeline near the border of Bayelsa and Delta states in southern
Spectra signs customer agreements for BC pipeline expansion
March 4, 2009. Spectra Energy Corp has executed firm Service Agreements with customers related to the proposed expansion of the company's Transportation North (T North) natural gas transmission facilities in northeastern British Columbia (BC). The T North expansion project will increase eastbound transportation capacity by 153 MMcf/d from Spectra Energy's McMahon Plant in
Sakhalin II inks full-scale LNG deal with
March 4, 2009. Sakhalin Energy Investment Company signed a sale and purchase agreement (SPA) for liquefied natural gas (LNG) supply to the Japanese company Osaka Gas. The deal calls for the supply of approximately 0.2 mtpa of LNG for a period of more than 20 years. As the second largest gas company in
Gassco gets thumbs up to operate Kvitebjorn gas pipeline
March 4, 2009. Gassco
Palin unveils plan for $4 bn bullet line
March 4, 2009. Alaska Governor Sarah Palin unveiled a plan to encourage development of a $4 bn in-state natural gas pipeline that would precede the massive project that state officials hope will deliver
Policy / Performance
OPEC members 80 pc compliant with cut
March 9, 2009. OPEC members had complied 80 percent with September's 4.2 mn barrel per day quota cut. Compliance would be higher once existing contracts had run their course. Another 1-mn barrel per day production cut would push the price of oil above $50 per barrel by the third quarter of the year. Public comments by OPEC oil ministers on whether a new round of production cuts would be announced after a meeting in
Indonesia teams up with
March 6, 2009. Indonesian President and his South Korean counterpart agreed to expand cooperation in the oil and gas sector, and revisions were made to benefit both countries. The agreement includes the contract to develop the oil block in West Madura in the East Java province,
PetroChina held talks on
March 6, 2009. PetroChina Co. Ltd. officials have met with Aruban Prime Minister to discuss a potential purchase of Valero Energy Corp.'s refinery on the island. The interest exhibited by PetroChina, the publicly traded arm of state-owned China National Petroleum Corp., is the latest example of
POWER
Philippine hydropower project gets P860 - mn loan
March 5, 2009. The estimated P860-million mini-hydro electric power plant projects in Solong, Kapipian and Hitoma in the
Transmission / Distribution / Trade
Dubai electricity bills soar 66 pc in a year
March 4, 2009. Commercial and residential property owners and tenants in
Treasury warns of big electricity hike in Cape Town
March 4, 2009. The Treasury has advised municipalities to budget for a substantial 25% increase in bulk electricity tariffs when preparing their budgets pending a ruling by the National Electricity Regulator of SA (Nersa) on the 2009-10 electricity tariff hike. The recommendation was made because it was unlikely that Nersa would be in a position to approve a revised electricity pricing structure before March 15 in order for the new tariff to be implemented from July 1 the start of the municipal financial year as required by the Municipal Finance Management Act. The Treasury stressed in a municipal budget circular for the 2009-10 medium-term revenue and expenditure framework that its recommendation was not an attempt to preempt the Nersa ruling.
Hawaii Island residents face electricity rate hike
March 4, 2009. Kauai’s electric utility plans to raise its base rates this year but is still calculating how much the increases will be. The Kauai Island Utility Cooperative filed a notice with the Hawaii Public Utilities Commission of its intent to seek a general rate increase. A base rate increase may be needed at this time to provide KIUC with financial stability during these difficult times and meet various challenges on the horizon. The utility plans to file a formal application with the PUC in May. The utility is still reviewing rate studies and it’s too early to say how much the base rate will change for its 29,000 customers. The utility is studying how to determine a rate structure that will assist it in shifting its reliance away from fossil fuels, continuing to promote energy efficiency, investing in renewable energy, and fulfilling the objectives and goals of the Hawaii Clean Energy Initiative.
Arab role needed to solve
March 10, 2009. Experts felt that the stand-off over the disputed Iranian nuclear programme cannot be resolved without the engagement of
How N65 bn electricity subsidy will be shared in Nigeria
March 6, 2009. The federal government explained how it intends to share N65 bn electricity subsidy it approved under the Multi-Year Tariff Order (MYTO) for operators in the industry. The MYTO is the new tariff regime for the electricity industry which was approved for implementation from July 1, 2008.
The N65 bn is for the 2008/2009 period. Eight months after, no money has been released under the scheme to any operator in the industry, but sources confirmed that the money is now available at the Central Bank of
Lagos to produce electricity accessories in Nigeria
March 5, 2009. The
Plunderers of power sector funds to stand trial in Bangladesh
March 4, 2009. The prime minister of
Electricity revenue shock for cities in South Africa
March 4, 2009. More than 10 years since restructuring of the electricity industry was mooted and after many delays in implementation, the government would amend the constitution to force the establishment of six regional electricity distributors (REDs). Electricity distribution is fragmented, with 187 muni-cipalities and Eskom providing supply.
The greatest concern for me is the backlog in infrastructure investment of about R27bn. Participation in the re- structuring, entailing transferring assets from municipalities and Eskom to the RED s, is voluntary, but municipalities are reluctant to give up electricity distribution assets as they are a big source of revenue. Because of this reluctance, the government was resorting to a constitutional amendment. The government would amend the constitution to speed up the process. The finalisation of the REDs Establishment Bill and the pending constitutional amendment are central in the restructuring of the electricity distribution industry.
Renewable Energy Trends
National
Astonfield plans to invest $ 2 bn on solar projects
March 8, 2009. US-based Astonfield Renewable Resources is planning to invest two bn dollars (nearly Rs 10,000 crore) in the next five years, and a major portion of it would be used for setting up solar power projects in
Solar energy at a Nascent stage in India
March 7, 2009. As per a report released by Netscribes (
However, due to tropical location and the government initiatives,
Both, solar photovoltaic and solar thermal methods are covered in the report. Key trends and drivers in the solar power market are highlighted and a brief analysis of the major issues/challenges hindering growth is also included. Competitive landscape identifies the key players and highlights the investments proposed by each in solar energy.
eSolar to build 1,000 MW of solar power plants in
March 6, 2009. eSolar, a producer of modular, scalable solar thermal power plants, has announced an exclusive licensing agreement with the ACME Group to build up to 1,000MW of solar thermal power plants in
eSolar names ACME as a master licensee of its modular, scalable technology and grants the company the exclusive right to represent eSolar in
Spanish wind turbine makers keen to supply components
March 4, 2009. In the light of global downturn squeezing demand in Europe, a delegation of 15 component manufacturing companies from Spain were in Chennai, to explore the possibility of supplying components to the Indian wind turbine manufacturing sector. Facilitated by the Spanish chamber of commerce, the delegation held a meeting with the Indian wind turbine manufacturers association (IWTMA).
Spain hosts the third largest wind energy industry in the world with a power output of 16000 MW. That translates into an industry size Rs.96000 crore in Rupee terms. Global giants like GE and Axiona source their components from
Global
Qinghai to build world’s large solar power station
March 10, 2009.
Greek solar project expanded from 1.6 MW to 10 MW
March 10, 2009. U.S. based SolFocus announced an agreement which dramatically expands its installation of solar Concentrator Photovoltaic (CPV) technology in the country of
TECO plans 25 MW solar power plant in Florida
March 10, 2009. Tampa Electric, has entered a partnership to build one of the largest solar power plants in the nation in
|
Dear Reader, You may have received complimentary copies of the ORF Energy News Monitor. Our objective in bringing out the newsletter is to provide a platform for focused debate on We look forward to receiving your patronage and support. ORF Centre for Resources Management |
|
ORF ENERGY NEWS MONITOR Subscription Form Please fill in BLOCK LETTERS |
|
Subscription rate slabs for Commercial entries, Research Institutes, Academics and Individuals will be provided on request. The subscription can be made for soft copy or for hard copy or for both. Selected ORF publications as well as advertising space in one issue of the ORF Energy News Monitor are offered as introductory free gifts for Commercial Sector only. |
|
Yes! I/we would like to receive copies of the weekly ORF Energy News Monitor for a period of ______year(s). I/we shall be entitled to one hard copy along with the option of soft copies to a list of e-mail addresses provided by me/us for the period of subscription. I/we also note that I/we shall get select ORF publications brought out during the period of subscription free. Name……………………………Address…………….………………………Telephone……………………Fax………………….E-mail………………… Please find enclosed cheque/Bank Draft No.........................dated …………………drawn at Please fill in this form and mail it with your remittance to ORF Centre for Resources Management OBSERVER RESEARCH FOUNDATION 20 Rouse Avenue New Delhi - 110 002 Phone +91.11.4352 0020 extn 2120 (Vinod Tomar) Fax: +91.11.4352 0003 E-mail: [email protected] |
Registered with the Registrar of News Paper for
Published on behalf of Observer Research Foundation,
Disclaimer: Information in this newsletter is for educational purposes only and has been compiled, adapted and edited from reliable sources. ORF does not accept any liability for errors therein. News material belongs to respective owners and is provided here for wider dissemination only. Sources will be provided on request.
Publisher:
Production team:
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
PREV
