America’s War against Carbon

 

 

NEWS BRIEF

OIL & GAS

Gail among 12 firms short listed for Nigeria gas

April 21, 2009. Twelve foreign companies, including one from India, have been short listed as prospective investors in Nigeria's vast gas sector. About 46 companies expressed their interest. The list of potential investors, made available to AFP, includes Russia's Gazprom Oil and Gas, E.ON Ruhrgas AG of Germany, BG Group Limited and Centrica Energy, both of Britain, Gas Natural SDG SA and Union Fenosa of Spain, and Gail India Limited. Also listed are units of Shell and Chevron, Korea Gas Corporation Limited and PTT Plc of Thailand.

Reliance spuds new D3 exploration well in KG basin offshore India

April 16, 2009. Krishna Godavari Basin Hardy Oil and Gas has announced that the third exploration well KGV-D3-G1 on the Company's D3 exploration license was spud on April 14, 2009. The D3 block is located within the Krishna Godavari basin, a proven prolific hydrocarbon province. The exploration well KGV-D3-G1 is located at a water depth of 1,233 m and will explore the sands in Pleistocene slope debris complex and Pliocene / Late Miocene deep water channel-levee-lobe complex. The D3 license, in which the Company holds a 10% participating interest and is operated by RIL, is located in the Krishna Godavari basin on the East Coast of India and covers an area of approximately 3,288 km2. The KGV-D3-G1 is located approximately 20 km southwest of the Company's two gas discoveries (Dhirubhai 39 and 41) in the block that were announced earlier in 2008. The appraisal program of the Dhirubhai 39 and 41 discoveries, which has been approved by the operating committee, is presently being reviewed by the Directorate General of Hydrocarbons of the Government of India.

APM Terminals mulls LNG terminal at Pipavav, Gujarat

April 20, 2009. APM Terminals has 400 hectares in all for various projects and is aiming to set up an LNG terminal at Pipavav port as part of its expansion plans. Gujarat currently has two LNG terminals located at Hazira and Dahej and the third one is being built at Mundra by GSPC-Adani consortium. APM Terminals, one of the leading providers of container port operations in the world, has so far invested Rs 1100 crore in Pipavav port infrastructure since it took over the operations of the Pipavav port in 2005.

Essar Oil shuts Vadinar refinery for maintenance

April 16, 2009. Essar Oil Ltd., has shut down its refinery in the western state of Gujarat. The 210,000 barrel-a-day refinery will be shut for maintenance for 18 days. The crude processing unit was to be closed on April 13 but was delayed on the back of making adjustments for taking care of product demand.

Fuel sales rise 6.6 pc on electioneering

April 20, 2009. India's fuel consumption jumped 6.6 per cent in March to reach 11.6 mt on the back of increased vehicle movement for electioneering. Petrol sales rose 13.2 per cent to 1.05 mt in March while diesel consumption was up 8.6 per cent to 4.79 mt. Electioneering for the Lok Sabha polls has seen increased vehicle movement. For the 2008-09 fiscal, fuel sales was up 4.5 per cent to 124 mt. Petrol sales was up nine per cent to 11.25 mt while diesel consumption was up 8.4 per cent to 51.64 mt. Naphtha sales was up 19.1 per cent to 999,000 tonnes in March.

RIL set to reopen petrol pumps

April 20, 2009. Reliance Industries, which surrendered the ‘only for export’ status for one of its two refineries to enable domestic fuel sales with effect from April 16, 2009, is all set to reopen its petrol pumps shut a year ago. Preparatory work is in progress and the first pump in Gujarat may start retailing petrol and diesel soon. Reliance had a year ago shut its 1,432 petrol pumps as it couldn't compete with the subsidised rates of PSU retailers. With oil prices falling, the margins on auto fuel have turned positive again. Reliance had captured 15 per cent market share in diesel, selling about 4 mt of fuel annually. With the shedding of EOU status, the refinery with a processing capacity of 660,000 barrels per day will now be able to cater to both domestic and export markets efficiently.  With the change in status of RIL refinery, diesel imports are expected to come down because availability in the domestic market will increase. The increase in products available locally would give public sector oil refiners the option of sourcing from RIL, instead of importing.

Jet Airways, Kingfisher raise fuel surcharge

April 18, 2009. Flying with private sector airlines could prove to be a bit more expensive for domestic travellers compared to travelling with Air India. From midnight, Jet Airways and Kingfisher Airlines are increasing the fuel surcharge by Rs 300 for flights longer than 750 km, while short-distance flying will become dearer by Rs 200. Low-cost airline SpiceJet is looking to increase the fuel surcharge by the same amount. The latest increase will see a passenger now paying a fuel surcharge of Rs 3,250 for a flight between Delhi-Chennai, while a Delhi-Jaipur passenger will now pay Rs 2,400. The fuel surcharge in one component of the fare that a passenger pays. Airlines also levy a basic fare and a passenger service fee on a traveller. Besides, those travelling from Delhi, Mumbai, Hyderabad and Bangalore will also have to bear airport fees, which vary from Rs 100 in Mumbai to Rs 375 in Bangalore. Domestic airlines said the increase in fuel surcharge is because of the rise in prices of aviation turbine fuel. In Delhi, ATF price has increased from Rs 27.10 a litre on March 1 to Rs 31.92 a litre. In Mumbai, the price has increased from Rs 27.86 a litre on March 1 to Rs 32.85 a litre now. Mumbai and Delhi airports account for a bulk of the passengers travelling throughout the country. In case of Chennai, however, ATF prices have largely remained unchanged between March 1 and now. Airlines refuelling in Chennai now are getting ATF at lower rates than earlier. Between April 1 and April 15, oil companies were charging Rs 33.33 a litre, but they decreased the price to Rs 30.47 a litre from April 16. ATF prices are adjusted twice a month, on the first and 16th.

Shell’s spot LNG drops to domestic natural gas price level

April 16, 2009. For long domestic natural gas production was the cheapest source of gas in India but no more. In a role reversal, spot LNG (regassified), sold by Shell, is now available in the Gujarat market at around $5.5/mmBtu comparable to the price of natural gas sourced from Panna-Mukta-Tapti joint venture ($5.7/mmBtu) and the price of Reliance D6 gas expected to be delivered at Gujarat at $5.5/mmBtu (inclusive of the transportation charges and marketing margin). Moreover large Indian consumers are hopeful that the price of regassified spot LNG in India will slide further in the next two months to the levels of the European and US benchmark prices, offering them an opportunity to bring down energy costs. The benchmark price of regassified LNG is currently ruling at around $3.5 and $4.2 per mmBtu respectively in the US and Europe. Thanks largely to the recession in major consuming centres such as the US and Europe, the spot LNG prices in India may converge with the global prices. This would offer Indian consumers, the opportunity to consume more spot LNG and restrict the consumption of domestic gas to the minimum guaranteed offtake level. It may be mentioned that while the domestic APM (administered price mechanism) gas sold mostly by ONGC, is still the cheapest gas priced on an average at around $2/mmBtu, new customers do not have access to the same and are dependent on the availability of what is commonly referred to as ‘new-gas’. Out of a total availability (including LNG) of approximately 100 mscmd, 50 per cent is APM gas. Panna-Mukta-Tapti joint venture is the single largest producer of new gas at 17 mscmd. At 40 mscmd peak production, Reliance is slated be the single largest source of new gas. Meanwhile, Shell terminal at Hazira is believed to be back in operation in full capacity. Shell is the prime supplier of spot LNG in India.

US fund puts Rs 2,000 crore in RIL

April 21, 2009. At a time foreign institutional investors (FIIs) are supposed to be keeping away from the Indian market, RIL has got a Rs 2,000 crore investment from one of the largest American funds. Europacific Growth Fund (EGF), managed by the Capital Group, bought 16.13 million shares, or a 1.02 per cent stake, of RIL from the open market in the March-ended quarter. With these transactions, the institutional holding in the company has risen to 25.22 per cent from 24.55 per cent. The FIIs’ holding has risen to 15.99 per cent from 15.52 per cent. RIL will initially produce 15 mcm gas a day from the KG basin. The output from the D6 block in the basin will rise to 40 mcm a day by July and 80 mcm a day in 2010.

RIL subsidiaries, including Reliance Chemicals (1.98 per cent stake), Reliance Polyolefins (1.94 per cent) and Reliance Universal Enterprises (1.81 per cent), have continued as institutional investors. As these three RIL companies had changed their status to subsidiary from the earlier ‘classified promoter group’ firms during the September-ended quarter, their stake comes under the public category and so does not carry any voting right.

NTPC-RIL contract will stand frustrated

April 21, 2009. RIL counsel Milind Sathe told the Bombay High Court that even if NTPC won the suit against RIL over gas supply agreement, the NTPC-RIL contract would stand frustrated in light of the decision taken by the empowered group of ministers (EGoM). NTPC counsel DD Madan, however, opposed Mr Sathe, submitting that all the eGoM decisions clearly stated that the price and priority for gas supply would be subjected to the outcome of the NTPC-RIL court case. The stand of the government regarding the price at which gas from the Krishna Godavari (KG) basin will be supplied, the gas allocation and utilisation policy arrived upon in three meetings of the EGoM, was earlier clarified to the high court during the hearing of the case between RIL and the Anil Ambani-owned Reliance Natural Resources (RNRL) in January. RIL had moved an application in February before the high court seeking to include the government stand as a part of its submission in the dispute with NTPC. NTPC’s case is that RIL agreed to supply gas to it from the gas finding in the KG basin for which, NTPC claims, the agreement was finalised. RIL is disputing the claim saying that the agreement was not final and was subject to negotiations on some issues. The government’s decision on the gas supply price and priority of allocation does not feature NTPC. Mr Sathe argued that, RIL’s marketing rights were subject to the EGoM decision and the same has a bearing on this suit and sought to include the government’s affidavit on record in the case with NTPC. He contented that, even if it was assumed that NTPC won the suit, the gas supply would be subject to government approval, this application would be rejected considering government policy.

Promotional road shows for NELP VIII deferred

April 17, 2009. The promotional road shows for eighth auction round of oil and gas exploration blocks (NELP VIII) and fourth round of CBM have been deferred. Though there were no official reasons given for the deferment, indications are that it was mainly due to general elections and uncertainty over the issue of tax holiday for commercial production of natural gas. New dates for road shows will be worked out later. The Government had launched NELP-VIII and CBM-IV on April 9 and bids are to close on August 10. The promotional road shows for NELP-VIII and CBM-IV was to take place on April 20 at Mumbai, followed by road shows in Perth (April 27-28) and Brisbane (April 29), London (May 4-5), Houston (May 7-8), and Calgary (May 14-15). An investors’ meet was also planned at Washington on May 11-12. Lack of clarity on seven-year income tax holiday in respect of commercial production of natural gas had haunted the seventh round of NELP (NELP-VII). The bid submission date of the seventh round of NELP had to be extended thrice before the final date, due to uncertainty arising over the taxation issues. The uncertainty had led to both domestic and international players adopting a more cautious approach before working out their bidding strategies. Subsequent to deliberations with the Finance Ministry, the Petroleum Ministry had then clarified in the bid documents of NELP VII that income tax relief of seven years will be available only for commercial production of crude oil and not for natural gas. The status remains the same for NELP VIII. But, the Petroleum Ministry is hopeful that the issued will be resolved at the earliest. The Government has offered 24 deep-sea blocks, 28 shallow water blocks and 18 onland blocks for bidding in NELP-VIII. Also on offer were 10 areas for extraction of gas from below coal fields or CBM.

ONGC bags leading oil & gas corporate of the year award

April 16, 2009. ONGC bagged Leading Oil & Gas Corporate of the Year, award announced by Petroleum Federation of India. This is the highest category of award given to a corporate by PetroFed. The PetroFed Oil & Gas Awards-2008’ were given at an impressive ceremony in New Delhi. The award was given in recognition of ONGC’s leading performance in multiple segments in Oil and Gas value chain, in particular performance in Finance, Transparency and Governance, R&D and Innovation, Human Resource Management, fulfilling values for Corporate Social Responsibility, while meeting norms of Health , Safety and Environment. In addition to this ONGC also received two more awards: Exploration & Production – Company of the Year and commendation award for Project Management – Company of the Year (for project more than Rs 2000 Crore).

POWER

NHPC to enter thermal power generation

April 20, 2009. NHPC Ltd, is all set to diversify into thermal power generation. A 1,000 MW coal-based power plant will be set up by NHPC’s subsidiary Narmada Hydro-electric Development Corporation (NHDC) in Madhya Pradesh. NHPC holds a 51 per cent equity in NHDC, while the rest is being held by the Madhya Pradesh government. Under its articles of association, NHPC does not have the mandate to get into thermal power generation. NHDC has already implemented 1,520 mw of hydro power projects in Madhya Pradesh. As there is not much of a scope for further hydel projects in the state, the state decided to allot NHDC a coal-based power project in the state. NHPC would continue to consolidate its position in implementing hydel power projects, which holds immense potential.

India possess enough uranium to produce 10,000 MW electricity

April 18, 2009. According to Anil Kakodkar, chairman of the Atomic Energy Commission, India has enough uranium to produce 10,000 MW of electricity. India is talking to Russia and Areva SA, for additional supplies of the atomic fuel and the country may consider buying stakes in uranium mines overseas.

RPower to tie up funds for Sasan

April 17, 2009. According to Power Finance Corporation, Reliance Power may arrange funds for the 4,000-MW Sasan ultra mega power project in Madhya Pradesh this month. The power project is estimated to cost about Rs 19,000 crore, to be funded at a debt equity ratio of 75:25. The debt component would be raised by a consortium of banks led by State Bank of India.

More private power units likely to come up in TN

April 17, 2009. According to Tamil Nadu Electricity Board (TNEB), following the changes governing the norms for third party sale of power, more private players are likely to establish power generation units in the State during the current financial year. The power generated would be sold using the TNEB’s grids after payment of wheeling charges fixed by the Tamil Nadu Electricity Regulatory Commission. A 15-MW sugar cogeneration plant using coal and biogas is expected to be commissioned at the National Co-operative Sugar Mill at Allanganallur in Madurai district. The State Government is establishing such units in 17 sugar mills across the State with a total power generation of 234 MW under a scheme. A 5-MW solar photovoltaic power generation unit and 1-MW solar thermal plant are scheduled to come up in Sivaganga district.

BHEL-built thermal sets generate 4 pc more power in '08-09

April 16, 2009. Power generation in the country received a boost with BHEL-built thermal sets generating over 4% more power in fiscal 2008-09, compared to the previous fiscal. During the year, these sets registered a record generation of 403.43 bn units of electricity against 387.71 bn units in the year before. Significantly, this constituted 79% of the total power generated in the country from coal-based thermal sets. Consistently exceeding the national average efficiency parameters, in 2008-09 also, BHEL-manufactured thermal sets achieved the highest-ever Operating Availability (OA) of 88.2%, while the Plant Load Factor (PLF) at 80.1% was 3.1% higher than the national average. BHEL-make 200-500 MW thermal sets, which form the backbone of the country's thermal generating capacity, operated at an all-time high OA of 91% and an impressive PLF of 84.3%. Notably, 77 BHEL-make thermal sets of various ratings operated at a PLF of over 90% and 141 sets achieved an OA of more than 90%. During fiscal 2008-09, the installed capacity of BHEL-supplied Utility sets went up to 87,646 MW and the company maintained its share of 64% in the country's total installed capacity of 1,38,175 MW. BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself for the future, by way of technology, facilities and trained manpower to meet the country’s power forecast for the 11th Plan and beyond. For this, it has already enhanced its manufacturing capacity to 10,000 MW per annum and is further augmenting it to 15,000MW per annum which is proceeding apace and plans are afoot to hike this further to 20,000 MW by 2011-12. 

Power transmission hobbled by slack generation

April 20, 2009. India's state-run power companies are furiously fuelling growth in the transmission sector but find slack generation capacity addition a hobble. India plans to add 78,500 MW power by end 2012, mostly from the eastern and north-eastern regions of the country, while the major consumer load centres are in western and southern regions, requiring a strong national transmission grid. According to analysts, the sector is likely to see close to 20 percent growth in the near term and likely to pick up as we near 2012, as additional generation projects would go upstream. Nearly three quarters of the Rs550 bn that the Power Grid is expected to spend on strengthening transmission grids by 2012 has already tied up from various sources. It intends to spend Rs120 bn for FY10 versus Rs80.95 bn last year, setting a scorching pace. On the other hand, it has disbursed orders worth Rs150 bn in the Jan-March to private firms. The companies that received these orders include Areva T&D, Crompton Greaves, KEC International and Kalpataru Power. Power Grid has completed transmission projects for 20,800 MW power against its 11th plan target of 37,800 MW, but the generation addition not keeping pace may prove regressive.

Uttarakhand buys power at higher rates

April 20, 2009. Uttarakhand is facing acute electricity crisis with the state-run power corporation finding it tough to buy it from other states even at higher rates. Uttarakhand’s power blues were compounded after most of the states, with which it had entered into a banking arrangement, refused return power due to general elections. Uttarakhand Power Corporation Limited (UPCL) is under pressure from chief minister B C Khanduri not to go for electricity rostering and load shedding during the election time. This has forced UPCL to buy power at exorbitant rates. The corporation is holding talks with various power companies in Gujarat, Delhi and Haryana and is also making efforts to overdraw from the northern grid. Gujarat has agreed to provide 3.2 million units of electricity at Rs 12 per unit. On the other hand, the corporation is trying hard to buy electricity from Delhi, Harayana and other states. Uttarakhand currently needs 23 million units of power and is facing a shortage of at least 6 million units. UPCL is already overdrawing from the northern grid even after getting the state’s share from the central pool. The demand in Uttarakhand this season is 2.2 million units more than the previous year due to rapid industrialisation in the state. Electricity generation in Uttarakhand, which produces 12-13 million units of power during summer, has come down to nearly half due to receding water levels in various rivers.

PowerGrid to spend about 20,000 crore in UMPPs by 2012

April 19, 2009. Central transmission utility PowerGrid Corp has announced an investment of up to Rs 20,000 crore during the XIth Five-Year Plan period to provide transmission system to four ultra mega power projects of 4,000 MW each. This is a part of PGCIL's total investment of Rs 55,000 crore for laying new transmission lines for various projects, including four UMPPs and others to be commissioned, in the 12th plan period. The investment would be funded through a mix of internal accruals and borrowings from multi-lateral agencies to realise its ambitious plans. 

 Areva T&D wins power transformer order from PowerGrid

April 16, 2009. Areva T&D has received a order for two 500 MVA Power Transformers from Power Grid Corporations of India Ltd. These are the highest in rating 400 KV 3 phase Class transformers in the country and will help PowerGrid in augmenting capacities of their 400KVsubstations at Malerkotla and Patiala in Punjab. The 500 MVA Power Transformers order Is of strategic significance for AREVA T&D, as it is a breakthrough in the Indian T&D sector. in the foreseeable future, as the 500 MVA configuration becomes an industry norm, it will open up big opportunities for us in the Utilities segment. The 500 MVA 3 phase Power Transformers order is the first such in the country by any customer, to be manufactured in India.

DCW commences sale of surplus power

Apr 15, 2009. DCW Ltd. has commenced sale of it's surplus power from the Company's 2 x 25 MW Coal based Captive Co Generation Plant situated at Sahupuram in Tamilnadu to Tamil Nadu Electricity Board. The supply commenced on April 09, 2009 and the agreement is for supply of power till May 31, 2009 for the time being. On account of power shortage situation in Tamil Nadu and most parts of India, the Company expects to benefit from its surplus power position. Going forward, the thermal power plant will facilitate efficient energy cost management. Arrangements are being made to export jointly from the Company’s new Co-Generation Power Plant and DG sets.

Committee formed to investigate power trip

April 21, 2009. The West Bengal government has nominated officials from the West Bengal State Electricity Transmission Company Ltd (WBSETCL) to a committee formed by CESC to investigate the cause for the massive power shortage in the city April 20. The committee will also come up with remedial measures in the face of a similar situation in the future. While the city's system load is around 1400 MW in the afternoon, CESC generated around 975 MW,and therefore, it drew power from the state generation company. The committee has submitted an initial report to the state government outlining the reason behind April 20 black-out as technical equipment failure and a detailed report would take around two week's time. Four power generating stations of CESC at Budge Budge, Titagarh, Kashipur and Southern had tripped simultaneously last afternoon crippling metro and rail networks, hospitals, ATMs, hotels, hitting water supply apart from residential blocks across the city.

GVK Power looks to dilute stake in power, road biz

April 20, 2009. GVK Power and Infrastructure Ltd (GVKPIL), with interests in power, airports, roads and mining, is looking to divest its roads and power ventures. The company is in talks with at least five players for divesting up to 49 per cent in these two segments. Some foreign players have expressed interest in aligning with GVKPIL, a listed company engaged in owning, operating and maintaining power plants both by itself and through its subsidiary or associate companies. GVKPIL, however, would retain a majority stake of at least 51 per cent in these segments. It would take three to six months for the due diligence to be completed and for the non-binding term sheets to be converted into binding term sheets. The company is developing power projects that are based on coal, gas and hydel resources in Andhra Pradesh, Punjab and Uttarakhand. The combined capacity of these projects will be over 2,000 MW once operational. It owns 53.96 per cent in GVK Industries Ltd, a wholly-owned subsidiary which operates the 216 MW Jegurupadu Phase I gas-based power plant and the 220 MW Jegurupadu Phase II gas-based project in East Godavari. The company declared the plant commercially operational on April 14. GVKPIL also owns 51 per cent in Gautami Power (464 MW gas-based power plant in East Godavari), which is ready for commissioning. The company is hopeful of achieving the financial closure for the 600 MW thermal-based Govindwal Sahib power plant in Punjab in June. The project is estimated to cost Rs 3,000 crore. Work on the Rs 2,700 crore Srinagar hydro power project of 370 MW is also on target.

Massive power failure cripples Kolkata

April 20, 2009. All the four units of the CESC, which supplies electricity to the metropolis, tripped simultaneously, leading to a massive power failure causing suspension of the Metro services and the emergency services in hospitals. The four power generating stations viz., Budge, Titagarh, Kashipur and Southern generating station, which have a combined capacity of 980 MW tripped together at 16.45 hours. The engineers and top officials of the private utility were trying to locate the fault and restore the power supply. The power outage forced Metro services to be suspended between 16.42 hours and 16.48 hours. Most hospitals were also left without their emergency services due to the disruption in the power supply.

Power transfer firms to get policy boost

April 19, 2009. In a move to privatise the power transmission sector for attracting major investments, the Ministry of Power will come out with detailed guidelines within a month. It will help leading private power companies such as Tata Power, Reliance Infrastructure, JSW Energy, Lanco Infratech and GMR Energy enter the power transmission sector on a large scale. The norms, which are being finalised, will elaborate how the private sector can participate in the transmission sector with viable returns on investment, and will set transparent bidding guidelines. Tariffs for various projects will be determined by the Central Electricity Regulatory Commission (CERC) and other stakeholders as is done in the case of private participation in power generation. Though the government had not finalised any cap on private sector participation in the sector, it could go up to 100 per cent. India has set an ambitious target of 100,000 MW of capacity addition by 2012. Transmission systems related to this will require an investment of over Rs 75,000 crore. Investments required for generation, transmission and distribution are estimated to be close to Rs 11 lakh crore. Under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), the government is spending over Rs 28,000 crore in the 11th Plan period to electrify rural villages. Besides, the government is implementing a Rs 52,000 crore programme to improve and modernise the power transmission and distribution network under the re-structured Accelerated Power Development and Reforms Programme (APDRP) during the Plan period.

Many private sector players are participating in both the schemes. At present, the public sector firm, PowerGrid, one of the largest transmission utilities in the world, carries over 45 per cent of the total power generated in the country on its inter-state network. The rest is handled by various electricity boards. The government has experimented with private-public partnership in the transmission sector. The first of such project was the Tala transmission project in Bhutan, a 51:49 joint venture between Tata Power Company (TPC) and the state-run PowerGrid Corporation, to evacuate power from the 1,020 MW Tala hydroelectric power in Bhutan to New Delhi via 1,200 km of transmission lines.

SERC directs KSEB to replace faulty meters

April 18, 2009. The State Electricity Regulatory Commission (SERC) has approved the Aggregate Revenue Requirements (ARR) and Expected Revenue from Charges (ERC) submitted by the KSEB with amendments, but pulled up the power utility on a number of counts and issued 16 directives to it on a host of issues including power loss, faulty meters and rejuvenation of downed hydel projects. In an order on April 17, the Commission approved an ARR of Rs 5,316.30 crore and total revenue receipts of Rs 4,981 crore against Rs 6,113.22 crore and Rs 5,013.94 crore projected by the KSEB. The expected revenue gap has been pegged at Rs 335.30 crore against a gap of Rs 1,099.28 crore projected by the Board. The Commission also seeks to rationalise the tariff and has directed the Board to file a tariff petition within two months. The Commission has also asked the KSEB to chart out a plan for replacement of faulty meters, observing that the replacement of faulty meters have been falling short of target. It also noted that during the past nine months, the number of faulty meters in the system have gone up by around 65,000. The Commission has instructed the KSEB to submit plans regarding energy audit, which it had promised to conduct. The Commission has also urged the Board to file scheme-wise details of investment proposed for approval from now one, and instructed it to invite proposals from developers of non-conventional energy sources such as small hydro, wind, solar, and co-generation urgently so as to draw at least the five percent of energy earmarked from such sources.

Load shedding withdrawn in Kerala

April 18, 2009. The Kerala State Electricity Board (KSEB) has decided to withdraw the half-an-hour load-shedding in the State in view of a reduction in peak load demand. The board, through efficient energy management, expects to maintain the required level of power supply till June 15 without any major hitches. The peak load demand had increased to 2,742 MW last year. Since then, the board had given around five lakh new connections and this was expected to take the peak load demand beyond 3,000 MW. However, the cooperation extended by the consumers to the energy conservation efforts of the board as also the changes effected in the use of power by HT and EHT consumers during peak load hours has now restricted the peak load demand to 2,700 MW.

Pakistan to move international court against Kashmir hydro project

April 17, 2009. Pakistan is to move the International Court of Arbitration against India's diversion of the Jhelum river to the Wullar Barrage and what it terms the faulty design of the Kishanganga hydropower project in Jammu and Kashmir. Pakistan has opposed the construction of the hydropower project, saying the diversion of river water to the Wullar Barrage contravenes the provisions of the Indus Waters Treaty. India disagrees.  

Indo-Canadian N-deal soon

April 17, 2009. After sealing nuclear fuel supply deals with Russia and France, India is ‘very close’ to inking a similar agreement with Canada. With New Delhi planning to import reactors upto 20,000 MW of capacity in next 10 years, it has laid down a road map for strategic partnership with Ottawa and is very close to signing a nuclear cooperation agreement, Montek Singh Ahluwalia, Deputy Chairman of Planning Commission said.

Govt. urged to drop power projects in Western Ghats

April 17, 2009. Environmentalists here have expressed concern over the proposal to set up 27 mini-hydro electric projects in the catchment area of the Netravati in the Western Ghats, which the State Government has approved. They fear that these projects would have serious implications on the biodiversity of the region, and threaten the very existence of the Netravati, considered as the “lifeline” of Dakshina Kannada. According to the environmentalists, five of the 27 projects had been implemented. If the remaining 22 projects were also to be implemented, a large area of forest would be submerged as they would involve construction of dams at various locations. Besides, the vast forest cover might get depleted because of the subsidiary works such as laying of power transmission lines and roads to be taken up there. The biodiversity and wildlife in the ghat section would be severely damaged. In all, 77 projects had been approved in the Western Ghats, including 50 outside the catchment area of the Netravati.

Indian hydropower investors face fresh trouble in Nepal

April 16, 2009. Two Indian companies that broke the ice in Nepal's highly politicised hydropower sector last year by bagging contracts to develop two separate projects that together would generate over 700 MW are in hot water again following opposition by local groups. In January 2008, India's GMR Group was given the go-ahead by the coalition government of Nepal to develop the 300 MW Upper Karnali project. However, the Bangalore-headquartered company at first found itself dogged by law suits and then security threats by local groups enjoying political patronage which hampered work. Now, public sector undertaking Satluj Jal Vidyut Nigam, which won the contract for the 402 MW Arun III project, is being opposed by local indigenous communities. The Arun Valley Adivasi Indigeous People's Rights Forum, a newly formed body of protesters, has begun a campaign in Kathmandu, alleging that the project remains silent on the future of the locals who would become displaced. The forum is also expressing reservations about the fate of the rare flora and fauna of northern Sankhuwasabha district near the border with Tibet, due to the construction of a dam, an approach road and two tunnels needed for the project.

EC says no to review of mega power policy

April 15, 2009. The government’s effort to push through a policy related to large power plants has been scotched by the Election Commission. The revised so-called mega power policy has been in the making for at least a year, but the power ministry’s request to the commission to be allowed to put up this policy before the cabinet has been denied because of the general election that was to start on April 16. The Election Commission frowns on policies that it thinks could have a bearing on the outcome of the elections. These could wait till a new government takes over.

A key feature of the revised policy was the extension of the so-called mega power project status to captive plants that generate at least 1,000MW. While increasing India’s power generating capacity, this would have also benefited private sector companies such as Mukesh Ambani’s Reliance Industries Ltd, or RIL, Jindal Steel and Power Ltd and Anil Agarwal-owned Vedanta Resources Plc’s Sterlite Industries (India) Ltd, which are setting up captive power projects. Captive power plants, set up by a company to generate electricity exclusively for its own use, are currently not eligible for the mega project status, which would entitle them to fiscal incentives, including a waiver of customs duty on equipment imports and a 10-year tax holiday. The policy also does away with several restrictions related to plants seeking a mega power project status. According to existing norms, a thermal project will be given mega power project status if it has a generation capacity of at least 1,000MW, sells power to at least one state and is located in a state that has begun privatizing power distribution in cities with a population of at least one million. These restrictions have been done away with in the revised policy. In the case of hydropower projects, the threshold capacity is 500MW. In Jammu and Kashmir and the North-East, the threshold power generation capacities to be eligible for mega power project status are 700MW for thermal projects and 350MW for hydropower projects. RIL plans to set up two power projects of 2,000MW each at its special economic zones, or SEZs, one each in Haryana and Maharashtra. It also wants to develop captive power capacity of around 4,000MW to supply electricity to the thousands of outlets its unit Reliance Retail Ltd plans to open. JSPL plans to set up captive projects of 2,609 MW in Jharkhand and 2,600 MW in Orissa. Sterlite, through its unit Bharat Aluminium Co. Ltd, or Balco, is setting up a 1,215MW captive power plant in Orissa, and a 1,200MW project in Chhattisgarh. The revised policy could encourage more companies to develop captive power plants and improve India’s track record in terms of adding generating capacity. In the five years to 2007, the country saw the addition of only 20,950MW of generating capacity against a target of 41,110MW. India has an installed power generation capacity of 147,000MW and plans to add 78,577MW by 2012. In addition, the country has a captive capacity of 45,000MW with an additional 10,000MW expected to be commissioned by 2012.

Russia asks India to invest in uranium plant

April 15, 2009. Russia has proposed that India should invest in a uranium enrichment center in Angarsk, Siberia, for guaranteed supplies of the radioactive fuel. The investment would be in lieu of payments for fuel supplied to Russian-built light-water reactors being set up at Kudankulam in southern India, the report stated. The proposal was made during a visit to the plant on April 9 by Anil Kakodkar, chairman of India’s Atomic Energy Agency.

OIL & GAS

Bahrain's Bapco to hold bidding for gas E&P in May

April 21, 2009. Bahrain Petroleum Co., or Bapco, will be initiating its deep gas exploration and production bidding round for international and national oil companies in May for reserves in the Bahrain Field. The objective is to bring IOCs and NOCs to provide their offers for exploration and production on the pre-confirmation. Twenty companies have so far showed interest in the bidding for gas deep below existing producing reservoirs.

A new company called the Joint Oil Company, or JOC, will be formed between Occidental Petroleum Corp. (OXY, Abu Dhabi's Mubadala Development Co.and National Oil and Gas Authority, or NOGA, of Bahrain and will be effective from July 1, 2009. Oil production in Bahrain is expected to increase from 35,000 barrels to 70,000 barrels per day and gas production to rise from 1.2 million cubic feet per day to 1.8 mcf in the next five years. 

OMV confirms oil discovery in Sirte Basin offshore Libya

April 21, 2009. OMV has announced the discovery and successful testing of oil in the A1-NC202 exploration well in Block NC202. The well is located in the offshore Sirte Basin, 40 km southwest of Benghazi. The well reached a total depth of 15,815 ft (4,820m) and tested a natural flow rate of up to 1,264 bbl/d from the Eocene Dernah Formation. This is OMV's first oil discovery in offshore Libya. Block NC202 forms part of a package of exploration blocks including the neighbouring offshore block NC201, NC199 (Cyrenaica), NC200 (Murzuq Basin), NC203 and NC204 (Kufra Basin) which were awarded to Repsol and OMV in June 2003. OMV holds a 14% interest in this package. The other partners are the National Oil Corporation of Libya (65%) and Repsol which acts as operator and holds the remaining 21%.

Sinopec's Tahe oil field turns out 1.5 mt in Q1

April 20, 2009. Tahe oil field, the second largest oil field of Sinopec, turned out 1.5745 mt of crude oil in the first quarter of this year, up 131,800 tons from the same period of last year. The oil field, situated in Tarim basin in north China's Xinjiang Autonomous region, produced 288 mcm of natural gas, up 28 mcm from Q1 last year. It drilled 54 wells, with combined length of 359,200 meters, an increase of 158,000 meters year-on-year. As the fastest growing oil field in China, the oil field is expected to achieve annual output of 10 mt in 2010. Statistics show crude and gas output at Tahe oil field increased 640,000 tons and 320 mcm, respectively, to 6 mt and 1.27 bcm in 2008, generating a total of 2.023 billion yuan of income. The Tarim basin is rich in energy resources, with estimated reserve of 22.9 billion tonnes of oil equivalent.

PVEP discovers Northern Vietnam's largest gas field

April 20, 2009. According to Dow Jones Newswires, PetroVietnam Exploration Production Co. (PVEP) discovered the largest gas field, Hac Long, offshore northern Vietnam. PVEP confirmed that tests conducted by the company and Petronas Carigali Sdn Bhd. indicated that the Hac Long field flowed gas at 400,000 cubic meters per day. This gas field has the largest output in northern Vietnam and the Hac Long project is one of the unit's 38 projects.

Kuwait Energy finds oil in Egypt's Western Desert

April 20, 2009. Kuwait Energy Company, has announced a new oil discovery in the East Ras Qattara (ERQ) Field, located in Egypt's Western Desert. The company estimates a daily production capacity of 5,285 barrels of oil and unproven reserves of 3.460 mn barrels. Kuwait Energy acquired the ERQ Field in April 2008 with its 100% takeover of Oil Search Middle East and North Africa for US $200 mn. Oil was found in the Rana and Shahed wells, both of which are located 70 kilometers and 100 kilometers, respectively, from Giza. This discovery is the first in Egypt for Kuwait Energy since 2006. Established in 2005 as a non-governmental company, Kuwait Energy holds five exploration assets in Egypt, three of which are producing assets, a total of 19 exploration blocks in seven countries and operates 10 fields in four countries across the Middle East, Eastern Europe and Pakistan.

Pan Andean formalizes E&P contract in Peru

April 20, 2009. Pan Andean has formally signed the contract on Exploration & Development Block 161 in Peru, the award of which was announced on September 16, 2008. Block 161 is located in the Sub-Andean foothills in the prospective Ucayali basin of central Peru, close to Blocks 114 and 131 in which Pan Andean already holds a 30% carried interest. The proven reserves are 20 million barrels. The Aguaytía field, located to the south of Block 161, is producing 2,525 barrels of condensate and 39 mcf of gas daily. Block 161 has a well-defined petroleum system, with established Jurassic and Permo-Carboniferous source rock, traps, reservoirs and seals. These are believed to be similar to the Camisea field. Pan Andean is targeting both gas and oil plays. Seismic analysis shows major anticlines. The Sub-Andean play in Block 161 shows 5 possible prospects. The work program includes geological & geophysical evaluation in year 1, acquisition of 300km of seismic in year 2 and drilling of an exploration well to at least 3,500m in years 3 & 5.

StatoilHydro, CNOOC to shutdown Lufeng oil field in South China Sea

April 17, 2009. After more than 11 years in production, StatoilHydro and CNOOC have reached a mutual agreement to transfer full responsibility for the abandonment of the Lufeng field in the South China Sea to CNOOC. The transfer will take effect after the production shutdown later this year. Lufeng 22-1 lies some 250 kilometers southeast of Hong Kong. Lufeng 22-1 was first discovered in 1983 by Occidental.

Ampolex took over in 1991 and sold its interests to Statoil in 1996. The field was brought on stream in 1997. By the agreement, StatoilHydro will hand over its 75% interest in Lufeng 22-1 to CNOOC. Lufeng originally planned to produce 25 million barrels of oil, but exceeded a total of 42 million barrels by year end 2008. Production was originally scheduled to shut down in 2004.

TurboSonic wins refinery order

April 21, 2009. TurboSonic Technologies, Inc. announced the receipt of a US $2.3 mn order from a European refinery. The refinery will incorporate TurboSonic's technology for controlling particulate emissions, as an integral part of an upgrade of its physical plant. The upgrade will facilitate the production of low-sulfur fuels in response to environmental legislation. TurboSonic expects that delivery will be completed in its 2010 fiscal year. TurboSonic Technologies designs and markets air pollution control technologies to industrial customers worldwide. Its products help companies in the Cement and Mineral Processing, Ethanol, Metals & Mining, Petrochemicals, Power Generation, Pulp & Paper, Waste Incineration, and Wood Products industries meet the strictest emissions regulations, improve performance and reduce operating costs.

AGA Gas taps NCC to construct LNG terminal in Nynashamn

April 20, 2009. NCC Construction Sweden has been commissioned by AGA Gas AB to construct a terminal for liquid natural gas (LNG), which is to be located at Brunnsviksholme outside Nynäshamn. The agreement consists of the construction of the infrastructure required for the new terminal and the assignment will be implemented as a partnering project.

The LNG tank itself will be built on a general contract on assignment from Cryo AB. The total order value for both transactions will be approximately SEK 275 million. The terminal to be erected will be the first of its type in Sweden and will facilitate the utilization of natural gas in Central Sweden. Fortum, among others, will use the natural gas to replace petroleum for city-gas production in Stockholm and the Nynas refinery will use the natural gas in its production of hydrogen gas. The LNG tank will be 33 meters high and 38 meters in diameter and will be constructed in slip form in August 2009 and completed during the first half of 2010.

NCC will also construct a harbor, which will be able to receive tankers with a maximum length of 160 meters and a depth of nine meters. An approximately 100-meter-long bridge will connect Brunnsviksholme with the mainland. The assignment also includes construction of a service building, an access road to Norviksvägen, a vehicle bay for receipt of LNG and some ground work.

Aramco seeks to cut Jubail refinery cost to below $10 bn

April 20, 2009. Saudi Arabian Oil Co. seeks to reduce the cost of its joint venture refinery project at Jubail on the Persian Gulf with Total S.A. (TOT) to below $10 bn amid falling commodity and equipment prices. Aramco and Total will receive bids from contractors for the project's five biggest contracts by the end of April, with cost expected to be well below the level anticipated last year.

Aramco, the world's largest oil company, and Total signed in June 2008 the agreement to build their project in Jubail, on Saudi's east coast, originally estimated to cost at least $12 bn. Total and Aramco extended the bidding period for the 400,000-barrel a day export refinery twice to take into account the fall in commodity prices and construction cost.

Refinery fire darkens Iraqi skies

April 20, 2009. Thick clouds of black smoke filled the skies as far south as Tikrit after a massive fire started near the Baiji oil refinery complex, one of Iraq's largest. The Kurdish AKA news agency that the fire began in an area used to burn waste from the industrial complex's five refineries. The company official ruled out the possibility of sabotage, but said the refinery was operating at its capacity of 350,000 barrels of oil a day, or about a third of Iraq's total refinery capacity. Four refineries in the industrial park, which was built in 1982 with cooperation from international oil companies, refine oil. A fifth produces asphalt and other petroleum derivatives.

Sunoco logistics expects no impact from Tulsa refinery sale

April 17, 2009. Sunoco Logistics Partners L.P. does not expect any impact to its business from announced sale of the Tulsa Refinery by Sunoco, Inc. (R&M) to an affiliate of Holly Corporation. Effective with the closing of the sale of the refinery, Sunoco Partners Marketing & Terminals L.P. will have a long term agreement with Holly Refining & Marketing MidCon, L.L.C. to supply crude oil to the Tulsa Refinery.

Pemex to build new refinery in Tula

April 15, 2009. State-owned Petroleos Mexicanos will spend more than $12 bn to build one new oil refinery and upgrade an existing facility. Mexico's first new refinery in three decades is to be located in Tula, Hidalgo state, and Pemex expects the plant to be operational by sometime in 2015, while the expansion of the facility in Salamanca, Guanajuato, should be complete by the end of 2014. The aim of both projects is enabling Mexico, a major oil exporter, to reduce the amount of gasoline it imports from the United States, currently running at 340,000 barrels per day.

Gazprom to sign south stream gas pipeline agreements

April 21, 2009. The Russian energy giant Gazprom will sign agreements with Bulgaria, Serbia and Greece on its South Stream gas pipeline to Europe. All technical and economic assessments of the $13 bn South Stream project are to be completed this year when agreements with the three Balkan countries should be signed. Gazprom will urge the European Union to place the South Stream pipeline, transporting Russian gas under the Black Sea and across the Balkans to Europe on its priority list. Gazprom and the Italian Eni oil and gas company plan to build the South Stream pipeline. Russia and Serbia have reached a political agreement on the South Stream pipeline and Gazprom secured the participation of Bulgaria, Hungary and Greece in the project.

China, Russia reach pact on oil supply, pipeline, loan

April 21, 2009. China and Russia finalized an oil cooperation agreement including the construction of an oil pipeline, crude trading, and a loan. Chinese Vice Premier and the visiting Russian deputy prime minister, signed the agreement in Beijing. China reached a long-term pact in February to lend $25 bn to two Russian energy companies in exchange for an expanded supply of Russian oil for 20 years. State-owned OAO Rosneft, Russia's biggest oil producer, and OAO Transneft, its oil pipeline operator, will split the $25 bn in loans from China Development Bank, and in exchange, Russia would provide China with an additional 15 mmtpa of crude oil. Construction of an oil pipeline carrying Russian crude to refineries in China's northeastern regions, a spur of the East Siberian-Pacific Ocean pipeline currently under construction, was also part of the deal.

Medvedev promotes Nord Stream gas pipeline project in Helsinki

April 20, 2009. Russia intends to promote the construction of the Nord Stream gas pipeline. The pipeline from Russia to Germany is going to run along the bottom of the Baltic Sea, mostly in the Finnish waters. This Nord Stream project first leg of some 1,200 km with an annual capacity of 27.5 bcm of gas is planned to be commissioned in 2010. Work to launch the second line is expected to be completed by 2012.

Kuwait stops oil exports due to sandstorm

April 16, 2009. Kuwait on April 16, halted exports of oil as a result of a prevailing sandstorm. The Gulf state, a major exporter of oil, often resorts to this measure when weather conditions turn bad. On the same day, Kuwait has also stopped the operations of Shuwaikh Port due to the sandstorm. One ship is waiting to leave the port and three others are waiting for entering the port. Kuwait is the fourth biggest exporting country in the OPEC and currently produces 2.3 mn barrels of oil per day.

PGNiG signs framework agreement on LNG with Qatar supplier

April 15, 2009. The Polish Oil and Gas Mining PGNiG has signed with Qatargas Operating Company Ltd. a framework agreement on LNG supplies. PGNiG and Qatargas agreed on LNG supplies to be implemented as of 2014 for 20 years in the amount of some one million tons LNG annually, it was written. Talks between PGNiG and Qatargas on finalizing a trade contract are underway. The signing is planned after assurance is given that technical conditions for receiving LNG supplies are fulfilled.

Oman's total crude oil exports stood at 38.2 mn barrels Jan-Feb

April 17, 2009. Oman's total export of crude oil stood at 38.2 million barrels during the months of January and February of 2009, against 36.1 million barrels during the same period of 2008, constituting a 5.9% rise. The Monthly statistical bulletin published by the National Economy Ministry showed that Oman's total production of crude oil and condensates stood at 46.1 million barrels during January and February of 2009, against 44.1 million barrels during the same period in 2008, constituting a 4.3% rise.

The average daily production stood at 7,799 barrels by the end of February 2009 against 7,315 barrels during the same period in 2008, constituting a 6.1% rise. The bulletin said that the average price of Oman oil barrel fell by 47.9% by the end of February 2009 to US $45.25 per barrel, against US $86.78 per barrel during the same period in 2008. China topped the countries importing Omani Oil as it imported 12.3 million barrels during the months of January and February 2009, against 18.2 million barrels during the same period in 2008, constituting a 31.9% decline. Korea came second, as it imported 8.7 million barrels during the months of January and February 2009, against 2. million barrels, constituting a 182.9% rise. Thailand came third as it imported 5.492,2 million barrels, against 6.3 million barrels during the same period in 2008, constituting a 8.9% decline. Oman's production of natural gas stood at 170.867 mcf, by the end of February of 2009 against 172.408 mcf during the same period in 2008, constituting 0.9% decline. Gas consumption stood at 170.764 mcf by the end of February 2009 against 172.408 mcf during the same period in 2008, constituting a 1% decline.

Indonesian govt. to offer 24 oil working areas

April 20, 2009. The Indonesian government will offer at least 24 new oil and gas working areas expected to contribute to increasing the country's oil and gas reserves. The government will announce the plan in May to coincide with the conference to be held by the Indonesian Petroleum Association. Seventeen of the of the working areas will be offered through regular tender and the rest will be through direct offer scheme. Those offered through regular tender are located mainly in eastern Indonesia and those to be offered directly are located in central and western parts of the country. 

2008: Canadian NEB's busiest year yet

April 20, 2009. The National Energy Board's (NEB or Board) 2008 Annual Report, tabled in parliament, reports that the NEB received more applications and presided over more public hearings in 2008 than any other year in NEB history. The Board considered applications for new pipeline facilities, tolls and tariffs filings, activities on frontier lands, as well as export and import licenses, and orders. A number of applications to expand the capacity of the oil pipeline system were also considered by the Board. In total, there were 17 public proceedings in 2008. Spurred by record high oil and gas prices, over $127 bn worth of crude oil, petroleum products, natural gas liquids and natural gas was shipped through NEB-regulated pipelines in 2008. In addition, NEB-regulated international power lines transported over $3 bn of electricity, demonstrating the huge economic value that pipeline and power transmission systems bring to Canadians. The report outlined how a busier pipeline construction year led to a corresponding increase in safety incidents. NEB inspectors doubled their compliance monitoring activities, performing audits, inspections and investigations.

Oil & Gas UK says tax needed to increase production over 5 years

April 20, 2009. Oil & Gas UK is encouraged by initial reports that the Chancellor plans to implement measures to increase North Sea production by 20% over the next five years. Delivering that extra production and consequently additional tax revenues to the Treasury will require a substantial reduction in the tax burden across the range of UK oil and gas projects, including new fields and additional investment in existing fields.

Woodside still to convince JV partners of W. Australia gas site

April 16, 2009. Woodside Petroleum Ltd has yet to convince its Browse Basin joint venture partners to use a site north of Broome in Western Australia as a liquefied natural gas (LNG) processing hub. The state government, Woodside and a group representing the traditional owners of the Kimberley region, the Kimberley Land Council (KLC), agreed to use James Price Point for the hub after lengthy negotiations. But other joint venture partners in the Woodside-operated Browse Basin project BHP Billiton, BP, Chevron and Shell are not parties to the agreement and have not committed to the site.

The joint venturers are mulling whether to proceed with the James Price Point site, which Premier Colin Barnett had threatened to compulsorily acquire if an agreement with the KLC could not be reached.

The alternative is to use Woodside's North West Shelf gas processing facility in Karratha or its nearby Pluto LNG development, which is about 50 percent complete. An environmental impact assessment of the James Price Point site is expected to be complete in 2010.

POWER

Japan to restart quake-damaged nuclear power plant

April 18, 2009. A strong earthquake shut down the world’s largest nuclear power plant here almost two years ago. The clock is now ticking for it to restart but fears about a nearby seafloor faultline and a string of fires inside the dormant facility have deepened distrust in local communities.

National, regional and local authorities have in recent weeks approved the resumption of the 8,200 MW Kashiwazaki-Kariwa plant that sprawls across more than 4km2. The tremor, which struck 60km offshore in the Sea of Japan, injured 2,346 people, mostly in Niigata prefecture, and damaged or destroyed more than 30,000 buildings. Among the structures hit was the nuclear plant, one of Japan’s oldest, where the first reactor started generating electricity in 1985. An electric transformer caught fire and more than 400 barrels of contaminated waste toppled over, with at least 40 spilling their contents.

Poor in energy resources, Japan also draws about 30 percent of its total power from its 53 nuclear plants. Since the 2007 quake hit the Kashiwazaki-Kariwa plant, it has upgraded it to withstand a tremor of 7 on the Richter scale.

Reduced power from US nuclear generator

April 17, 2009. Exelon Corp's 867-MW Quad Cities 2 nuclear power unit in Illinois was at 32 percent power early, down from 97 percent of capacity early a day before, the U.S. Nuclear Regulatory Commission said in its power reactor status report.

It was not immediately known why the unit, in Cordova, Illinois, about 155 miles west of Chicago, had been reduced. Based on historical outages at the plant, the adjacent 867-MW Unit 1 is slated to shut in early May for a month long refueling outage.

Australian consumer anger over power price increases

April 20, 2009. Electricity consumers and environmental groups have reacted angrily to an announcement by the NSW Energy Minister, that power companies will be allowed big price increases to pay for the largest energy expansion program in the state’s history. According to the head of the Energy Users Association, the NSW power industry was becoming more inefficient and needed reform, not excessive spending.

The money will come from electricity consumers. Domestic users in Sydney are expected to have to pay extra $2.50 per week. Environment groups and energy-efficiency experts joined a chorus of criticism over the program, which is expected to be formally approved by the Australian Energy Regulator on April 29.

Zesco to Justify Electricity Tariffs in Zambia

April 18, 2009. Private Sector Development Association (PSDA) has urged Zesco to justify its intention to increment electricity tariffs by 66 per cent because it was not improving its operations.

Zambians owned the power utility firm but management did not see it fit to be accountable to the people. Zesco, failed to collect the money in bills even though the firm was proposing tariff increase. Many institutions are supplied electricity on fixed rates which are below the revenue receipts that Zesco would have realised if the connections were metered. The company had a top heavy management structure that ate into the revenue far more than the production staff of engineers and technicians.

Kuwait minister in Doha for Gulf electricity link 

April 20, 2009. Kuwait's Minister of Electricity, Water and Transport was on an official visit to the Qatari capital of Doha to hold talks with Qatari officials on ways to enhance bilateral cooperation in electricity and water links.

He described the Gulf electricity link, which was launched in February, as a pioneering project and an advanced step towards GCC integration.

Nuclear energy officials look to grow past financial crisis

April 19, 2009. The global financial crisis is unlikely to deter growing long-term demand for new nuclear power plants, international atomic agency officials said, ahead of a conference to discuss the future of atomic power.

International Atomic Energy Agency (IAEA) officials and national and international energy representatives are gathering in Beijing to discuss prospects for atomic power during a global slowdown, climate change and energy worries, and tensions over the nuclear programmes of North Korea and Iran.

Nuclear power provides 14 percent of global electricity supplies, according to the Vienna-based IAEA, and that proportion is set to grow as nations seek to contain fuel bills and the greenhouse gas emissions dangerously warming the planet.

Much of the expected expansion is in Asia. As of the end of August 2008, China topped the list of countries with nuclear power plants under construction, with 5,220 megawatts (MW), followed by India at 2,910 MW and South Korea at 2,880 MW, according to the International Energy Agency.

But the ambitious plans for nuclear power growth across the developing world also risk straining safety standards and safeguards against weapons proliferation.

Kosmos Energy to support Ghana govt. produce electricity

April 18, 2009. Kosmos Energy, a company that is prospecting for oil in the country, has offered a helping hand to the government in the production of electricity to meet national energy requirements. The company was willing to provide gas for the generation of additional electricity to supplement the power generation at the Akosombo Dam by 2010.

New pollution limits seen for cars and power plants in US

April 18, 2009. Cars, power plants and factories could all soon face much tougher pollution limits after a government declaration setting the stage for the first federal regulation of gases blamed for global warming. The Environmental Protection Agency took a big step in that direction, concluding that carbon dioxide and five other greenhouse gases are a major hazard to Americans' health.

That was a reversal of the Bush administration, which resisted such a conclusion and said it would be costly for companies to meet new emission limits and therefore could harm the national economy. It was the first time the federal government had said it was ready to use the Clean Air Act to require power plants, cars and trucks to curtail their release of climate-changing pollution, especially carbon dioxide from the burning of fossil fuels.

PMC to start 11 biogas plants running on waste soon

April 21, 2009. In a bid to reduce the burden on the Urali Devachi garbage land-fill site and to cut the cost of transporting garbage, the civic standing committee has approved a proposal to set up 11 bio-gas plants at various sites in different zonal ward offices of the city. The PMC hopes to recover the cost of the plants within one-and-a-half years since the transportation per day is Rs 2,000 per tonne.

In addition to the bio-gas plants, three mechanical composting plants would be set up to generate manure from waste. Although it will be only around 70 metric tonnes which will be processed at these plants, it was just the beginning to dispose of garbage at source, which is mandatory under the Municipal Solid Waste (MSW) handling rules, 2000.

Early advent of wind season eases power situation

April 21, 2009. Wind season has set in earlier than anticipated this year, sparing the State of additional hours of load shedding owing to increased demand during summer. In the last one week, the power generated through wind mills has been ranging between 800 MW and 1,300 MW providing tremendous relief to the Tamil Nadu Electricity Board (TNEB). On April 20, the wind mills generated 1,300 MW of electricity.

The period between May and October is considered the wind season, this year the winds had set in by mid-April itself providing a bonus for the board. This additional source of power has compensated for the growth in load owing to the summer season, which witnesses increased use of air conditioners, fans and air coolers. However, the winds were unpredictable by nature and hence, the board was unable to take a decision to reduce the existing load shedding duration owing to questions of sustainability.

Meltdown hits Rs 5,500 crore solar power project in Bengal

April 20, 2009. The global financial crisis has come as a roadblock to the Rs 5,500-crore integrated solar power complex, possibly the world's largest and the country's first polysilicon project, in Haldia in West Bengal. The project would be executed in phases. The financial closure for the first phase is yet to be achieved due to the global financial crisis. The proposed investment for the first phase was estimated at Rs 3,100 crore. The project would be funded in a mix of debt and equity. The company and the West Bengal government had announced that the first phase would be completed by 2009. US-based Perseus may also partner with the solar energy project. The project has acquired 200 acre for its current phase and is in talks with the government for another 600 acres for the other phases.

The plant proposes to produce 2,500 tonne of polysilicon at an investment of Rs 2,500 crores. The plant would also produce wafers in the subsequent phases. The project aimed to make all stages of production of solar panels. It was expected to play a significant role in contributing to the central government's target of having 5,000 MW of solar power by 2012. The plant would also help to manufacture semi-conductor chips and benefit information technology industries.

Numeric to set up solar project in TN

April 17, 2009. Numeric Power Systems, a manufacturer of UPS systems, is planning a 1-MW solar energy farm in Coimbatore. Numeric Power is also setting up a 200-KVA-a-day UPS manufacturing facility at Parwanoo in Himachal Pradesh. The Rs 6-crore project will become operational by May.

WBGECL to invest Rs 750 crore to meet renewable energy quota

April 17, 2009. In a bid to fulfill the renewable energy quota as fixed under the Electricity Act 2003, which mandates all states to source a certain portion of their power requirement from renewable energy sources, West Bengal Green Energy Corporation Limited (WBGECL), the state's nodal renewable energy agency, has outlined investments worth Rs 700-750 crore over the next two to three years. WBGECL pointed out that the state, at present, hardly sourced 2-3 per cent of its total power requirement from renewable energy source, roughly 100 megawatt (MW), of which 50 per cent was from biomass and the rest solar. However, under the Electricity Act 2003, by 2012, all state utilities should be able to source a minimum of 10 per cent from renewable sources.

OG&E breaks ground on 101-MW wind farm

April 21, 2009. Representatives from Oklahoma Gas and Electric (OG&E) and the University of Oklahoma broke ground on Oklahoma's newest wind farm on April 21. The start of the 101-MW OU Spirit project marks a milestone in OU's commitment to using 100 percent renewable energy by 2013. Last September, OG&E and OU outlined a plan for OU's Norman, Oklahoma, campus to achieve 100 percent renewable energy by 2013. Construction of OU Spirit is a large part of that agreement. The wind farm will feature 44 Siemens 2.3-MW turbines. Following foundation work this spring, turbines will be assembled at the site beginning in August.

Arizona lands $1 bn solar plant

April 20, 2009. The Arizona Department of Commerce and Albiasa Solar of Spain will announce that a $1 bn solar-thermal power plant will be built near Kingman next year, generating enough power for 50,000 homes at once when it opens in 2013. It's the third large Arizona solar plant announced in less than 18 months, although one of the first two has been scrapped and the other won't be running until 2011.

Pakistan PM inaugurates 50 MW wind power project

April 20, 2009. Prime Minister Syed Yousuf Raza Gilani PM inaugurated the 50 MW wind power project in Thatta, Pakistan declared that the Kalabagh Dam would not be built unless a consensus was reached between all the provinces. The Pakistan government has created an Alternative Energy Fund for successful implementation of alternative energy technologies in the country.

Japan to sell solar-powered phone

April 20, 2009. Mobile phone users could soon be turning to the skies to charge their handsets. Japan's KDDI Corporation will start selling a waterproof, sunlight-powered mobile phone in June. The yet-to-be-priced handset will be made by Sharp. A 10-minute solar charge will provide enough energy for a one-minute call or power the handset in standby mode for two hours. The sun can recharge up to 80% of the phone's battery. The lower use of standard electricity will help reduce carbon dioxide emissions.

Sempra Generation proposes new 48-MW solar energy plant       

April 18, 2009. Sempra Generation, a subsidiary of Sempra Energy announced its intention to construct a new 48 MW expansion of its existing photovoltaic power-generation facility near Boulder City, Nev., about 40 miles southeast of Las Vegas. The combined 58-MW installation would become the largest operational photovoltaic solar-power facility in North America. Construction will commence after Sempra Generation contracts to sell the facility's power output. The project could be operational by late 2010. Sempra Generation has agreed that Tempe, Ariz.-based First Solar will be the engineering, procurement and construction contractor. Upon completion, the project, called Copper Mountain Solar, will be capable of generating 48 MW of power, or enough electricity to supply more than 30,000 homes. Together with the existing 167,000 photovoltaic panels at the adjacent 10-MW facility, which was completed late last year, the facilities will utilize nearly 1 million photovoltaic panels.

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 India’s energy future. You could be a partner in this effort by becoming a subscriber. You could also contribute recommendations for India’s energy future in the form of brief insightful articles.   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 New Delhi for Rs.........……….favouring ‘Observer Research Foundation’   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]

 

• Energy
• China
• India
• America

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.