Energy News Monitor | Volume XI; Issue 21

[Will this Election end the Tom & Jerry Chase in Delhi’s Power Sector?]

                             “Any reduction in power bills of the consumers in the capital must be backed with factual data and strategies that flow from them rather than be used as a tool for winning election. The last option for parties would be to reduce tariffs by increasing the subsidy which will be burden on the State. The Delhi voters must not be lured with false promises but with clear and transparent roadmap on how they will manage the power mess in the capital…”

 

NEWS BRIEF

[NATIONAL: OIL & GAS]

November 4, 2014. Reliance Industries Ltd (RIL) and its partners will get about USD 40 million in additional revenue this fiscal for gas they produce from eastern offshore KG-D6 block after the government raised prices by 33 per cent. Niko Resources, which holds 10 per cent stake in the RIL-operated KG-D6 block, said partners will get increased rate of USD 5.61 per million British thermal unit for the gas they produce from MA field in the block, while old rate of USD 4.2 would continue to apply on D1&D3 fields pending resolution of a dispute regarding reasons for drastic fall in output. Extrapolating the earnings for other partners, RIL will get USD 24 million for its 60 per cent share in the KG-D6 block and BP Plc of UK USD 12 million for its 30 per cent interest. Niko said the cash flow benefit of the revised price on gas sales from the D1&D3 fields is not expected to be available unless and until the cost recovery dispute is resolved in the favour of the contractors of the block. The government has not agreed with the partner's claim of geological reasons being responsible for D1&D4 output languishing at less than 8 million standard cubic meters per day instead of 80 million standard cubic metres per day (mmscmd) projected for this time of the year. It has disallowed certain costs as penalty, which the partners have contested and the matter is in arbitration. Consumers will, however, pay the revised increased price for D1&D3 gas, but RIL and its partners will get only USD 4.2 per million British thermal unit (mmBtu) with the difference being deposited in an escrow account. They will get the higher rates if they win the arbitration case. It said while the government has stated that a premium over the USD 5.61 rate would be given to discoveries made after the issuance of guidelines in difficult areas like deepsea, the applicability of the premium to existing undeveloped finds in the D6 and NEC-25 blocks remains to be clarified. These discoveries included in the approved plans of development for the R-Cluster and Satellite Areas in KG-D6 block. (economictimes.indiatimes.com)

October 31, 2014. Cairn India said it has started to inject polymer into wells to raise output from its largest oil field in the prolific Rajasthan block, Mangala. The polymer injection activity would gradually be ramped up. The Mangala polymer flood enhanced oil recovery (EOR) programme has a capex of about $600 million. About 100 additional wells have been planned for the project. The EOR has potential to raise output from the Mangala, Bhagyam and Aishwariya - the largest of the 36 discoveries in the Rajasthan block, by 10 to 15 per cent. Polymer flood is a proven technology that has been successfully used by the Chinese. Daqing Oil in China which has similar oil as in Rajasthan, has been successfully implementing polymer flood. ONGC has implemented polymer flood in a couple of fields in Gujarat. However, the Mangala Polymer flood EOR project is of a much larger scale. (economictimes.indiatimes.com)

October 29, 2014. With Mozambique poised to become a top gas exporter, the Union Cabinet approved signing an agreement with the African nation to deepen oil and gas cooperation. The Cabinet, headed by Prime Minister Narendra Modi, approved signing of a Memorandum of Understanding (MoU) for cooperation in the field of oil and gas between India and Mozambique for a period of five years. Offshore gas discoveries in 2010 in two adjacent offshore blocks have seen the emergence of Mozambique as a significant hydrocarbon rich nation. ONGC Videsh Ltd (OVL), Oil India Ltd (OIL) and Bharat Petroleum Corp Ltd (BPCL) together hold 30 per cent interest in a giant gas field off the Mozambique coast. Gas from the field is planned to be turned into liquefied natural gas (LNG) for export to nations like India in ships. (economictimes.indiatimes.com)

October 29, 2014. Oil India Ltd (OIL) is seeking more hydrocarbon concessions across the globe, including in Brazil and Mexico. India imports about 75 per cent of its crude oil and 30 per cent of its natural gas requirements a year. OIL has invested $ 900 million on four per cent farm-in stake in offshore Mozambique. OIL and ONGC Videsh Ltd (OVL) had announced a 10 per cent farm-in acquisition with Mozambique in January this year. The company operates in 11 overseas countries and produces small quantities of hydrocarbon in the United States, Venezuela and Russia. (economictimes.indiatimes.com)

November 2, 2014. Hindustan Petroleum Corp Ltd (HPCL) expects to resume full operations at its 166,000 barrels per day Vizag refinery in southern India in two to three months. The refinery is currently operating at 80-90 percent of its capacity as its cooling towers were damaged by cyclone Hudhud. (in.reuters.com)

October 30, 2014. Bharat Petroleum Corp Ltd (BPCL) aims to double its refining margins once it completes the expansion and upgrade of its Kochi refinery in southern India to process high sulphur crudes by 2016. The refiner's margins dropped to $3 a barrel this year, from $4.50 to $5 a barrel last year, but levels will increase by a about $3 to $4 a barrel by mid-2016. Asian diesel margins have been lower this year compared with previous years due to an economic slowdown in China, the world's No. 2 oil consumer, and new refining capacity. Naphtha margins have been weaker due to an influx of the light fuel from western countries, mainly Europe and the Mediterranean. BPCL aims to raise the capacity of the Kochi refinery in southern India to 310,000 bpd from the current 190,000 bpd by May 2016. Besides boosting margins with the upgrade and expansion, the refinery will also be able to produce fully Euro IV compatible gasoline and diesel. This will meet tentative plans by the Indian government to mandate the use of Euro IV oil products throughout the country by August 1, 2017, and euro V in some cities by 2020. Once the refinery expansion is complete, BPCL also expects to lift lower volumes of oil products from private refiners such as Reliance Industries and Essar Oil. BPCL also operates a 240,000 bpd refinery at Mumbai in western India, and has majority stakes in the 60,000 bpd Numaligarh refinery in northeast India and the 120,000 bpd Bina refinery in central India. It plans to double capacity of the Bina refinery in about two years and increase the capacity at Numaligarh in 4 to 5 years. (economictimes.indiatimes.com)

November 4, 2014. State refiners are reluctant to follow the Reserve Bank of India advice to hedge part of the country’s $165 billion annual oil import bill, fearing administrative action if they suffer losses. Officials in Prime Minister Narendra Modi’s government discussed the idea, which is part of a push by Reserve Bank of India Governor Raghuram Rajan to make Asia’s No.3 economy less vulnerable to external shocks. India is the world’s fourth-largest oil consumer and imports 3.8 million barrels a day of crude. Any spike in oil prices can drive up the current-account deficit and inflation — both chronic ills that have long hobbled the country’s development. The idea of buying insurance against a possible oil price rally comes onto the agenda as oil prices touch four-year lows. But the dominant state refiners are reluctant to hedge due to the political fallout that any wrong-way bets could trigger. Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals together control about 60 per cent of 4.3 million bpd in refining capacity. Privately owned competitors Reliance Industries and Essar Oil both use hedging tools to lock in costs, as and when the opportunity arises on the international market. India wants state refiners to capitalise on the falling oil prices, which, at $82 a barrel for Brent crude, are at their lowest since October 2010, to lock in their supply costs. Some already hedge their refining margins. Only last month, Prime Minister Narendra Modi deregulated diesel prices that the prior government had subjected to state controls to blunt the impact of a previous oil rally on Indian drivers and truckers. The policy will reduce costly fuel subsidies but also expose refiners to greater market risks on the refined products they sell in addition to the cost of the crude they process. A parliamentary panel last year had raised questions over state refiners’ reluctance to hedge imports. Indian state refiners on average buy 80 per cent of their oil import needs through term contracts and the balance through spot purchases. Traders and private companies can absorb some of the losses and they adequately reward their staff if they make a profit. (www.thehindu.com)

November 3, 2014. A six-member delegation of Bihar Industries Association (BIA) met Union petroleum and natural gas minister Dharmendra Pradhan and requested him to expedite the extension of Hazira-Bijapur-Jagdishpur (HBJ) gas pipeline to Haldia and link it with the existing and potential industrial regions in Bihar. The delegation also sought special assistance from his ministry to boost industrial sector in the state. Led by BIA president Arun Agrawal, the team requested the minister to ensure survey and exploration of oil and natural gas in Kishanganj and West Champaran districts. The BIA members also drew the minister's attention towards the potential of expanding the capacity of Barauni refinery. (timesofindia.indiatimes.com)

November 3, 2014. GAIL India Ltd said it has signed an initial agreement with State Oil Company of Republic of Azerbaijan (SOCAR) for jointly pursuing LNG opportunities. Both companies shall also cooperate in optimization of liquefied natural gas (LNG) marketing, sourcing and shipping requirements. In addition, GAIL and SOCAR will pursue business opportunities in upstream assets across the world and joint investment in petrochemical projects. (economictimes.indiatimes.com)

November 3, 2014. Losses on sale of subsidised fuel have risen by 35 per cent to ` 188 crore per day even though oil firms have been losing less on LPG and kerosene because of fall in international oil rates. State-owned fuel retailers are losing ` 27.60 on sale of every litre of kerosene through the Public Distribution system (PDS) and ` 393.50 per 14.2-kg domestic cooking gas LPG. These are lower than ` 31.22 a litre loss oil firms were incurring on sale through PDS in second half of last month, and ` 404.64 per LPG cylinder. Despite the losses being lower, the per day under-recovery has risen to ` 188 crore from ` 139 crore. After diesel price was deregulated, only two products remain subsidised. The under-recovery or the revenue loss incurred on selling fuel below cost, in the first half of current fiscal was ` 51,110 crore. While the government had freed pricing of petrol from its control in June 2010, diesel was deregulated on October 18. Since then, diesel rates have cut twice - first by ` 3.37 a litre on October 19 and then by ` 2.25 per litre from November 1. (economictimes.indiatimes.com)

October 30, 2014. GAIL's drastic cut in natural gas supplies to small industries in South Gujarat has led to few gas units like Piramal Glass shutting down part of their operations. GAIL selectively slashed gas supplies to small industries to meet fuel requirement of CNG and piped cooking gas supplies in cities. The company on September 27 cut supplies to 30 industries in South Gujarat but did not touch small users in other states.

To meet city gas requirement, GAIL was to pro-rata cut gas of non-priority sectors like steel and refineries but ended up snapping nearly 60 per cent supplied to small industries, which as per a June 2005 order of oil ministry were clubbed with priority users in power and fertilizer for fuel supplies. No subsequent order has defined non-priority users. Piramal Enterprises vice chairperson Swati A Piramal wrote to Gujarat Chief Minister Anandiben Patel against the "discriminatory" action of GAIL that has led to her firm and others like Pragati Glass, Haldyn Glass, Gujarat Borosil and Orient & Savana Ceramic shutting down few lines in their plants. The total allocation to 30 small consumers in South Gujarat is a mere 0.6 million standard cubic metres per day (mmscmd). The cut has made available only 0.35 mmscmd available for PNG/CNG use. In absence of domestic gas, the small units have to buy imported LNG which costs four times the domestic rate. (economictimes.indiatimes.com)

November 3, 2014. Falling prices of crude oil may have brought cheer for the Oil and Natural Gas Corporation (ONGC) and Oil India but not for all oil producing companies. Global crude oil prices were $85.14 a barrel. Brent crude is down over 26 per cent since its high of $116 in June. Goldman Sachs, the US investment bank, in a research note cut its forecast for Brent to $85 a barrel from $100 for the first quarter of 2015 and reduced its projection for US crude or West Texas Intermediate (WTI) to $75 from $90. Both are expected to slip even lower. Lower crude oil prices mean lower realisation from crude sales for companies like Cairn India - promoted by Anil Agarwal - which is primarily engaged in the business of oil and gas exploration, production and transportation. Cairn India put up a dismal show on the back of lower production, higher costs and soft realisations in the July-September quarter. Lower volumes from Rajasthan pulled down Cairn's revenue in the quarter. (www.business-standard.com)

November 2, 2014. The government has notified a 33 per cent hike in natural gas prices, which have led to steep increase in CNG rates in states like Maharashtra and Gujarat. The Ministry of Petroleum and Natural Gas issued a notification for implementation of a new pricing guidelines for all domestically produced natural gas effective from November 1. The price hike led to steep increase in compressed natural gas (CNG) rates in Maharashtra and Gujarat. Mahanagar Gas Ltd, which retails CNG and piped cooking gas in Mumbai, hiked CNG prices by ` 4.50 per kg to ` 43.45. Similarly, it also raised tariff for piped natural gas (PNG) supplied to households for cooking purposes by ` 2.49 to ` 26.58 per cubic meters. In Ahmedabad, state government-owned GSPC Gas, Adani Gas and Sabarmati Gas hiked CNG prices by up to ` 4 per kg to ` 48.50 per kg, ` 48.20 a kg and ` 48.09 per kg respectively. Gujarat Gas hiked prices by ` 1.80 per kg to ` 48.50. Adani Gas is also planning to raise rates by ` 3 per kg for CNG it retails in Faridabad, a city that borders national capital. However, Indraprastha Gas Ltd, the sole retailer of CNG and PNG in the national capital, decided not to raise rates despite input cost going up. (economictimes.indiatimes.com)

November 2, 2014. With firms like Piramal Glass having to shut down part of their operations after gas supply cuts, Gujarat industries have sought Oil Minister Dharmendra Pradhan's intervention to stop "arbitrary" action of GAIL that may lead to 30,000 job losses. GAIL selectively slashed gas supplies to small industries in Gujarat to meet fuel requirement of CNG (compressed natural gas) and PNG (piped natural gas) supplies in cities. It, however, did not touch small users in other states. After Gujarat High Court order, GAIL was to pro-rata cut gas of non-priority sectors like steel and refineries to meet city requirement but ended up snapping nearly 60 per cent supply to small industries, which as per a June 2005 order of oil ministry, were clubbed with priority users in power and fertiliser for fuel supplies.

It said the government policies provide that all APM or gas from regulated fields is to be supplied only to power and fertiliser consumers along with court mandated/small gas consumers having allocations up to 0.05 million standard cubic meters per day. The total allocation to 30 small consumers in south Gujarat is a mere 0.6 mmscmd. The cut has made available only 0.35 mmscmd available for PNG/CNG use. In absence of domestic gas, the small units have to buy imported LNG (liquefied natural gas) which costs four times the domestic rate. (economictimes.indiatimes.com)

November 1, 2014. Corporate giant Adani announced that it has hiked Compressed Natural Gas (CNG) prices by ` 4.28 to ` 48.09 per kg and Piped Natural Gas (PNG) by ` 2.60 per standard cubic meter (scm) in Ahmedabad and Vadodara. The steep hike in price was done under new domestic gas pricing guidelines-2014. Due to which, the company gas has hiked ` 4.28 in the price of per Kg CNG and ` 2.60 per scm in PNG in Ahmedabad and Vadodara. CNG price in Ahmedabad and Vadodara is revised to ` 48.09 per Kg from ` 43.81 per kg and PNG (domestic) price is revised to ` 24.56 per scm from ` 21.96 per scm, excluding VAT. The state government enterprise Gujarat State Petroleum Corporation (GSPC) increased CNG price from ` 44.90 per kg to ` 48.50 per kg. GSPC had also hiked the PNG (domestic) price from ` 23.50 to ` 24.83. (economictimes.indiatimes.com)

October 31, 2014. Indraprastha Gas Ltd (IGL), the sole retailer of CNG in Delhi, said it is not revising rates despite input cost going up. Meanwhile in Mumbai, city gas distributor Mahanagar Gas Ltd hiked CNG prices by ` 4.50 to 43.45/kg and domestic piped natural gas (PNG) by ` 2.49 to ` 26.58 per standard cubic meter. The Centre had finally increased domestic natural gas price by 33 per cent from $4.20 per million British thermal unit (mmBtu) to $5.61 per mmBtu from November 1. (economictimes.indiatimes.com)

October 31, 2014. BP plc, Europe's third-biggest oil company, has said that the 33 per cent increase in natural gas price is a positive step towards creating an economic landscape that helps in development of gas resources. BP wrote off $770 million from its investment in the eastern offshore KG-D6 block of Reliance Industries, citing "uncertainty" over benefits flowing from the government's gas pricing policy. The government approved a new pricing formula that would provide a gas tariff of $5.61 per million British thermal unit (mmBtu) from November 1 as against USD 4.2 currently. This hike was lower than $8.4 approved by the previous UPA government. BP Chief Financial Officer Brian Gilvary said the government announced a new domestic gas price formula as part of a package of oil and gas sector reforms. BP in 2011 bought 30 per cent interest in RIL's eastern offshore KG-D6 as well as 20 other oil and gas exploration blocks for $7.2 billion. Bulk of this was for the producing block of KG-D6 and gas discovery area of NEC-25. Both BP and RIL have been advocating market-linked gas pricing and had initiated an arbitration against the government for not revising rates from the due date of April 1, 2014. The $4.2 per mmBtu rate, fixed in 2007, was for the first five years of production from KG-D6 fields. KG-D6 fields started gas output from April 1, 2009. (economictimes.indiatimes.com)

October 31, 2014. Petrol is cheaper by ` 2.41 per litre and diesel by ` 2.25 per litre which is its first price reduction by state-run retailers after the government allowed them to align its pump prices with the international oil market. Falling international oil prices have sharply reduced retail prices of diesel and petrol. Diesel rates have dropped by about 10% in about two weeks that would dampen inflation and cheer consumers ahead of assembly elections in Jharkhand and Jammu & Kashmir. The government deregulated diesel prices and reduced its retail price by ` 3.37 per litre in Delhi. State oil marketing firms decided to reduce petrol and diesel prices. Decrease in retail price of petrol by ` 2.41 per litre in Delhi is inclusive of local taxes. Similarly, diesel price is reduced by ` 2.25 per litre in Delhi. Consumer price reduction in different cities would vary depending on local levies, Indian Oil Corp said. (economictimes.indiatimes.com)

October 29, 2014. Cooking gas supplied to kitchens at subsidised rate is costlier by ` 3 a cylinder as the government raised the dealer's commission on the day of Diwali. Kerosene will also be costlier by less than a rupee soon as the government has decided to raise kerosene dealers' commission. The oil ministry has not disclosed the quantum of the hike. Kerosene, which is called the fuel of the poor, is currently sold at ` 14.96 a litre in Delhi. The recent decision to raise cooking gas distributors' commission would help 13,896 dealers in the country who serve cooking gas to 16.62 crore customers. Bharat Petroleum Corp Ltd (BPCL) said the company has raised dealer commission for liquefied petroleum gas (LPG) from ` 40.71 per cylinder to ` 44.06 per cylinder. The dealer's commission has two components, establishment charges and delivery charges. While establishment charges have risen from ` 24.24 per cylinder to ` 26.06, delivery charger have been increased from ` 16.47 per cylinder to ` 18. State oil marketing companies have absorbed about 35 paise per cylinder of the hike and passed on only ` 3 per cylinder increase to the customer. (economictimes.indiatimes.com)

October 29, 2014. Oil and Natural Gas Corp (ONGC) has edged past Reliance Industries Ltd (RIL) to become the highest ranked Indian energy firm on this year's Platts Global 250 Rankings. ONGC, which in 2013 was ranked 22^nd, improved one position in this year's ranking that is led by global giants Exxon Mobil Corp, Chevron and Royal Dutch Shell. RIL, India's largest private firm, slipped from 19th rank in 2013 to 22^nd in this year's ranking, according to Platts. Indian Oil Corp, the nation's largest oil refiner and fuel marketing firm, made a huge jump to break into top 50 global energy firms club. It has improved from 80^th rank in 2013 to 43^rd in this year's ranking that were released. Coal India Ltd, the world's largest coal producer, slipped four places to settle at 47 in this year's ranking. Power utility NTPC slipped one place to 50^th this year. Bharat Petroleum Corp Ltd (BPCL) made the biggest leap when it jumped from 119^th rank last year to 66^th in this year's edition. Gas utility GAIL also improved its ranking from 105 to 97. Cairn India Ltd improved five positions to settle at 104^th in the top-250 ranking where Oil India Ltd, the nation's second largest state explorer, and Essar Oil debuted at 208^th and 232^nd positions respectively. (economictimes.indiatimes.com)

October 29, 2014. Seeking to deepen energy ties with oil-rich Saudi Arabia, India has invited the world's largest oil exporter to invest in strategic crude oil storages and downstream facilities. Oil Minister Dharmendra Pradhan, leading a high level delegation on his maiden visit to Riyadh, met Saudi Oil Miniter Ali al-Niami on extending cooperation in oil and gas sectors. Saudi Arabia is India's largest supplier of crude oil, providing over 20 per cent of its oil needs. The two sides also discussed areas of cooperation in Saudi Arabian and Indian energy efficiency policies and programmes. Both sides also discussed specific issues concerning public sector oil companies in India and Saudi Aramco, the Arab nation's national oil company. The Saudi side acknowledged India's importance as one of the fastest growing markets in the world and appreciated the changes and policies being initiated by the new government. It assured that it would consider India's growing demand for crude and LPG while also agreed to look into the issues underlined by India concerning trade and investment in hydrocarbon sector between the two countries. Pradhan and Indian delegation visited Saudi Arabian Basic Industries Corporation (SABIC) and King Abdullah City for Atomic and Renewable Energy and held discussions on the issues of mutual interests. Indian side also made a presentation on REINVEST, India's first Renewable Energy Global Investment Promotion Meet & Expo being held from 15-17 February, 2015 in New Delhi to showcase India's manufacturing capabilities and latest technologies in renewable energy sector. (economictimes.indiatimes.com)

 [NATIONAL: POWER]

November 4, 2014. Cancellation of coal block allocations as ordered by the Supreme Court very recently, has come as a blessing in disguise for the Telangana State, as it is set to save one year from the duration required for erection of new plants by BHEL in the newly-formed State. The Telangana government entered into an agreement with the public sector giant for construction of new thermal power plants of 6,000 MW capacities in the State in the next three years. Of this, at least 1,080 MW will be operational within 24 months, as against the standard 36 months required for erection of a power plant. Highly placed officials from the Telangana State Power Generation Corporation (TSGENCO), however, are optimistic that erection of units totalling 3,380 MW will be completed in the next two years. The decision to entrust BHEL with installation of 1,080 MW at Manuguru was announced 10 days ago, when the Chief Minister K. Chandrashekhar Rao evinced interest in entrusting the rest of the projects too to BHEL.

About 4,000 MW of the agreed capacity will be set up in Manuguru of Khammam district, and the rest is tentatively planned for Ramagundam in Karimnagar district. Land for all the projects will be provided by the Telangana government. Imported coal will be used to light up all the units. BHEL has the necessary expertise and already executed thermal power projects in Bhupalapally, Singareni Collieries and Kothagudem, the performance of which was stated to be above the national average of the plant load factor. (www.thehindu.com)

November 4, 2014. Power shortage in India remained lower than during the corresponding period in previous years even as six out of 10 thermal power plants were running with coal stocks adequate for less than a week. According to data provided by the National Load Despatch Centre, peak power shortage hovered between 3,000 MW and 4,500 MW, lower than in previous years, when coal stocks in 60 power plants were not sufficient for even seven days while 30 had stocks that would not last more than four days. Power plants had coal stocks to last just six days on average. Yet, as many as 23 states reported near zero power supply shortfall. The only state that reported substantial shortfall was Uttar Pradesh, which witnessed a shortage of 2,570 MW. Total shortfall on that day was 4,434 MW in the state. Officials of NTPC, India's largest power producer, said they were forced to reduce capacity utilisation of a large number of generating units even as some of the units were shut due to unavailability of coal. (economictimes.indiatimes.com)

November 3, 2014. NHPC is gearing up to build India's biggest hydro plant, a 3,000 MW project that is equivalent to about half its current total capacity and three times the size of its biggest unit, even as it brushes off concerns over competition from the private sector. NHPC recently received approvals from the Forest Advisory Committee for Dibang hydel project in Arunachal Pradesh and plans to approach the Cabinet Committee for a final nod within a year. NHPC, which operates 6,500 MW of hydro power generation capacity, expects to build more plants as the Narendra Modi government pushes for faster clearances for infrastructure projects in a bid to boost the economy. The share of hydro power in the country's generation capacity has been declining as delayed environmental clearances and rehabilitation of displaced people stalled projects.

NHPC Chairman and Managing Director RST Sai said the private sector is in no position to challenge the state-owned company's dominance in generating hydro power and cited the example of the Jaypee Group, which put its hydro projects on the block to reduce debt. Executives who left for highpaying jobs now want to come back as they see a future for hydro only in NHPC, he said. Sai's main concern is about delays in the 2,000 MW Subansiri project in Assam and Arunachal Pradesh, which is being opposed by a section of affected locals. He said that finance is not a challenge for NHPC since it has reserves to the tune of ` 16,000 crore and the company enjoys access to low-cost funds. He is not looking at growth through the acquisition of private sector projects. (economictimes.indiatimes.com)

October 31, 2014. The Competition Commission of India (CCI) has cleared Adani Power's proposed deal with Lanco Infratech to buy latter's 1,200 MW imported coal-fired power plant at Udupi in Karnataka for more than ` 6,000 crore, marking the biggest acquisition in India's thermal power industry. The deal, the largest in thermal power in terms of value and capacity, catapults the Adani Group, already India's biggest private sector power producer, to a bigger league with a capacity of nearly 10,000 MW while helping Lanco reduce debt. Adani Power's current installed power generation capacity is 8,580 MW. It is also in the business of power transmission in some regions of India. Udupi is India's first independent power project in the country based on 100% imported coal with a captive jetty of 4 million tonne per annum and an external coal-handling system located at Mangalore port. (economictimes.indiatimes.com)

November 4, 2014. A joint venture between Tata Power, India's second-biggest private power producer, and ICICI Venture has begun talks to buy out some power assets of Avantha Power as the cashstrapped Thapar Group considers asset sale to reduce its debt. Officials from both sides have met to discuss the issue and that the deal is likely to involve the sale of operational power plants.

Billionaire Gautam Thapar, who has interest in electrical goods, engineering and paper, owns 75% stake in Avantha Power through a privately held family firm Avantha Holding Ltd (AHL). AHL owns 42.4% in listed power equipment company Crompton Greaves and close to 75% in Avantha Power, held directly and through Crompton Greaves. The buyer will have to pay anywhere between ` 6,000 crore and ` 7,000 crore to acquire the company with an operational capacity of 1260 MW. Avantha Power has another 1320 MW under various stages of construction. The group has been trying to reduce its debt by selling some assets. (economictimes.indiatimes.com)

November 4, 2014. The power sector is heading for a $1 billion, or ` 6,000 crore, saving in coal transportation cost and earnings of another ` 3,600 crore by additional generation as the government plans to tweak fuel supply arrangements to ensure that coal from each mine or port is shipped to closest plant. Currently, a lot of imported coal travels deep inside the country while some domestic output is transported to plants on the coast, which inflates the price of electricity. Further, many power companies get fuel from a mine far away even if coal is produced much closer to the plant. The proposed changes would affect nearly half of India's total power generation capacity. In some cases two plants will simply swap the coal suppliers, while in other cases the supply adjustments would involve many plants.

The government had appointed KPMG to assess the benefits of reorganising fuel tie-ups. The global consulting firm has estimated savings in the range of ` 4,500 crore to ` 6,000 crore in logistics as the distance between the supplying coal mine and the plant would come down by 27%. It has also estimated that this would lead to additional generation from 3,500 MW of capacity with potential benefit of ` 3,500 crore. Power, Coal and Renewable Energy Minister Piyush Goyal has said in the past that the fact that different companies supplying coal are subsidiaries of Coal India, would help restructure the supply pacts, and this was a reason why the state-run giant was not being split. The KPMG report, submitted to the power ministry, said that the exercise will also decongest the railway network as the average distance travelled by coal will come down to 429 km per tonne from 589 km per tonne and hedge coastal power projects against any interruptions in supply in future.

Power companies are incurring huge costs on importing coal and transporting it to plants in hinterlands, while projects on the coast get coal from far-off states. The consultancy has advised the power ministry to bilaterally swap coal supplies of 32 power projects of 45,000 MW capacity while multilateral swaps have been recommended for 95 power stations of 74,000 MW capacity. The proposal would require nod from power companies including private firms, states of Gujarat, Tamil Nadu, Maharashtra, Punjab, Haryana and Rajasthan and electricity regulators.

The report points out that most plants of Tamil Nadu's state electricity utility are close to the coast and even domestic coal is supplied to them by sea route. The consultancy suggested that NTPC can swap its coal imports with domestic tie-ups of the state utility. Similarly, the report observed that power stations of Gujarat State Electricity Corp Ltd (GSECL) receive coal from Coal India despite their proximity to 10 major ports. NTPC can swap the fuel tie-ups with its imports made to meet demand from plants in hinterland due to lower availability of domestic coal. (economictimes.indiatimes.com)

November 1, 2014. A meeting of technical experts from India and Bangladesh would be held on November 3 for drawing the radial inter connection line for transportation of power to Bangladesh. Stating this Tripura State Electricity Corporation Ltd (TSECL) Chairman and Managing Director S K Roy said today 100 MW power from the 726 MW thermal power project at Palatana in Gomati district would be transported to Bangladesh. While it was decided by the two countries that the power would be transported from Suryamaninagar power sub-station to Comilla district of Bangladesh, the meeting would decide about the route of transportation, he said. (economictimes.indiatimes.com)

October 31, 2014. A US subsidiary of an Indian power infrastructure company has received a $21 million bank guarantee loan for manufacturing high-voltage towers at a Texas plant, to be exported to Canada. The Ex-Im Bank announced its guarantee of $21 million revolving loan facility to Jyoti Americas LLC for the export to Canada of lattice transmission towers to be constructed by US workers in Conroe, Texas.

The 220,000 square-foot Jyoti Americas manufacturing plant already employs about 159 workers. Jyoti Americas LLC is wholly-owned subsidiary of Jyoti Structures, Ltd., which directly invested USD 41 million to establish a state-of-the-art manufacturing plant in Conroe. Jyoti Americas' customer in Canada requires electric transmission towers for the Labrador-Island Link LP, an element of the Lower Churchill Project which generates and distributes hydroelectric power to Canada's Atlantic provinces. (economictimes.indiatimes.com)

October 31, 2014. The Centre has sanctioned a comprehensive scheme of ` 4,754.20 crore for strengthening of transmission and distribution system in Arunachal Pradesh and Sikkim. The Centre has approved this ambitious scheme for intra- state transmission, sub-transmission and distribution system. An amount of ` 4754.20 crore has been sanctioned to accomplish this project.

Of this ` 3,199.45 crore is earmarked for project to be implemented in Arunachal Pradesh, the press note said. Union Minister of State for Home Affairs Kiren Rijiju convened a meeting with officials of power ministry and Power Grid to discuss the process of implementation of the project. Rijiju emphasised that there should be an active participation of Arunachal Pradesh government in coordination with the Union power ministry and Power Grid, the consultant for the project. Accordingly, the project should be implemented by the state power department. (economictimes.indiatimes.com)

October 30, 2014. As the Centre plans to overhaul the power transmission sector, the aggregate technical and commercial (AT&C) losses in several states tend to be higher. The average all-India loss levels in FY13 were in the range of 27 per cent, according to a recent report by ICRA, an investment information and credit rating agency. While there is improvement in distribution loss levels for power distribution companies in 12 states during the FY07-13 period, distribution losses remain relatively high in a majority of the states, with discoms in 10 states showing upwards of 20 per cent loss in FY13, the report said. In the Union Budget, the National Democratic Alliance government introduced two new schemes to strengthen power transmission in the country. The schemes are Integrated Power Distribution Scheme for rural and semi-urban areas and Deen Dayal Upadhyaya Gram Jyoti Yojana for feeder separation for agricultural populace. There is already a Restructured Accelerated Development and Reforms Programme scheme, which aims at improving the efficiency of the power transmission sector.

Utilities in eight states, which have agricultural consumption of 25-30 per cent have already implemented feeder separation schemes. However, in states where loss levels have been reduced, the discoms continue to face financial crunch due to high cost of power and increased agricultural consumption, which is subsidised in many states. To revamp the sector, ICRA has suggested tariff revision to improve the financial position of discoms, due to increasing dependence on costlier thermal fuel sources. The capital expenditure approved by state electricity regulatory commissions for strengthening the distribution infrastructure, aggregate capital expenditure as estimated by ICRA is ` 44,000 crore in FY15, which represents an increase of eight per cent over the previous year. According to ICRA, for every one per cent reduction in the all India AT&C losses for the sector, there could be a five per cent decrease in cash losses (` 3,900 crore). Also, for a distribution entity with loss level of, say, 25 per cent, a one per cent loss reduction leads to cost saving of 11-13 paise a unit. This results in a relief of 2.2 per cent on the retail tariff, assuming the cost of power supply remains the same. (www.business-standard.com)

October 29, 2014. Power Grid Corporation of India has commissioned the first 765 kv double circuit line from Nellore to Kurnool, thereby linking the South India Grid. During the last one year Power Grid has commissioned the 765 kv Raichur to Solapur line thereby enabling One nation-One grid with the integration of southern grid with the rest of India. Three other 765 kv substations at Raichur, Kurnool and Nellore have been commissioned. About 9000 MVA (megavolt ampere) transformation capacity has been added during this period. (www.thehindubusinessline.com)

November 4, 2014. Recognising the threat of nuclear terrorism, India has called for effective international cooperation and responsible action by governments to strengthen nuclear security and prevent non-state actors from acquiring vulnerable atomic material. First Secretary in the Permanent Mission of India to the United Nations Abhishek Singh said India has consistently supported IAEA’s important role in facilitating national efforts to strengthen nuclear security and in fostering effective international cooperation. He said as part of implementation of the arrangement with the IAEA concerning India’s voluntary contribution to the Nuclear Security Fund, the services of Indian cost-free expert in information security are being provided to the Division of Nuclear Security of the IAEA.

Mr. Singh said that the universal adherence to the Convention on the Physical Protection of Nuclear Materials (CPPNM) and early entry into force of its 2005 Amendment would go a long way in strengthening global efforts in the area of nuclear security. The amended Convention would make it legally binding for states parties to protect nuclear facilities and material in peaceful domestic use, storage as well as transport. Mr. Singh said India is party to the CPPNM and is amongst the countries which have ratified the 2005 amendment to the Convention. Mr. Singh emphasised that India’s commitment to harnessing the benefits of nuclear energy for electricity production while according the highest priority to nuclear safety and security. (www.thehindu.com)

November 3, 2014. Bangladesh and India decided that a 'Radial inter-connection line' would be drawn from Suryamani power sub-station here up to Comilla in South Bangladesh for transportation of 100 MW power from the 726 MW thermal power project at Palatana in Gomati district. This decision was taken in a meeting of technical experts from India and Bangladesh held. While it was decided by the two countries that the power would be transported from Suryamaninagar power sub-station here to Comilla district of Bangladesh, the meeting decided about the route of transportation. Leader of the Bangladesh team, Chowdhury Alamgir Hossain, Director of the Power Grid Company of Bangladesh said, from Suryamaninagar substation, the line would be drawn by the Indian government up to Konaban, the crossing point to Bangladesh, covering a distance of about 24 km. From Konaban the line would enter Bangladesh territory and would be drawn by the Bangladesh government up to Comilla grid covering a distance of about 27 km which would cost about 135 crore Bangladeshi taka (` 106.75 crore). Chowdhury Alamagir Hossain said India put forward a proposal to Bangladesh for power corridor for transportation of power from India's North-East to West Bengal However, there was no decision as yet, he said. (economictimes.indiatimes.com)

November 3, 2014. The Telangana government has entered into a memorandum of understanding with the government of Chhattisgarh for purchase of 1,000 MW of power. The long-term power purchase agreement in this regard will be signed shortly by the Chhattisgarh Power Trading Corporation and the Generation of Corporation of Telangana State (TSGenco) at a price to be fixed by the Telangana State Electricity Regulatory Commission. Chhattisgarh chief minister, Raman Singh, had responded positively to the request of his Telangana counterpart, K Chandrasekhar Rao, for supply of an additional 1,000 MW of power. Pending laying of transmission lines by the Power Grid Corporation (PGC), the Telangana government is exploring the possibility of securing power from the transmission network passing through Maharashtra to meet its immediate needs. The PGC was already preparing to lay transmission lines from Chhattisgarh and the tendering process was expected to be completed in a month. (www.business-standard.com)

November 3, 2014. Coal India Ltd (CIL) produced 40.20 million tonnes (mt) of coal in October, beating its target of 39.74 MT for the month. However, the company missed its output target of 259.85 MT for the first seven months of the current fiscal, producing 250.96 MT of coal. However, no reasons were given by CIL for missing the target for April-October period. The company's offtake in October stood at 39.11 MT, against the target of 40.94 MT, the company said. Coal India had missed its output target for the fifth consecutive month producing 34.88 million tonnes (MT) of coal in September against targeted 36.17 MT. In August, the output was 34.54 MT against the target of 35.13 MT. In July it achieved a production of 33.01 MT (35.86) and in June it was 34.54 MT (36.84). In May, the output was 36.27 MT against target of 38.46 MT. Coal and Power Minister Piyush Goyal had earlier asked Coal India to ramp up production from its existing mines. CIL, which accounts for 80 per cent of domestic coal production, missed its output target of 482 million tonnes for 2013-14, producing 462 million tonnes during the period. Production fell short of target because of various reasons, including lack of environment clearance to coal mining projects. In 2012-13, the company produced 452.5 million tonnes of coal, falling short of the 464 MT target. (economictimes.indiatimes.com)

November 3, 2014. The government has put 90 of Coal India's nearly 150 greenfield and brownfield mining projects on the fast track, entailing an investment of around ` 88,000 crore, in a bid to augment domestic coal supply quickly and ensure uninterrupted power, despite the cancellation of coal block allocations by the apex court. The coal ministry has sought faster clearances for CIL's much-delayed projects, some of which have been on the drawing board for decades and could double its capacity once complete, as this would also allay the apprehensions of the firm's trade unions about its future as the expansion plan would create hundreds of employment opportunities and ensure the behemoth retains its dominant market stature. This move runs parallel to the proposed auction of coal blocks that the government intends to wrap up in the current financial year, for which an ordinance was promulgated on October 21. Coal India trade unions have announced a one-day strike on November 24, protesting against what they term as a move to allow private companies in commercial coal mining. (economictimes.indiatimes.com)

November 2, 2014. Around 60% of the total 103 thermal power projects in the country are reeling under acute coal shortage with less than a week's stock at their disposal, according to Central Electricity Authority (CEA) data. Of the total 61 plants, with less than seven days of stockpiles, 34 power projects have less than four days of reserve, as per data of the Central Electricity Authority (CEA). The 34 projects with less than four days stock include seven power stations of NTPC -- Badarpur (Delhi), Indira Gandhi power station (Haryana), Singrauli (Madhya Pradesh) Rihand, Tanda and Unchahar (Uttar Pradesh). CEA has attributed the reason for shortfall in supply to Coal India and its subsidiaries. As per the data, Coal India and its subsidiaries -- South Eastern Coalfields, Mahanadi Coalfields -- delivered lesser than annual contracted quantity of coal to these plants. (www.business-standard.com)

November 2, 2014. The Electricity Appellate Tribunal has rejected Adani Power's application seeking to condone the "481 days" delay in filing a plea against power regulator CERC's ruling of April 2013 with regard to tariff issues at Mundra project. The application was filed requesting that the tribunal condone the "delay of 481 days" in filing the appeal that challenges certain findings of an order passed by electricity watchdog CERC on April 2, 2013. CERC had ruled in April 2013 that Adani Power should be granted "compensation" package for its Mundra project which would provide a cushion against the escalation in cost of imported coal for the plant. The company had approached the Central Electricity Regulatory Commission (CERC) last year, seeking revision in tariff from its 1,980 MW Mundra project in Gujarat saying increase in imported fuel cost. However, CERC rejected Adani Power's submission to consider tariff issues arising out of change in Indonesian coal pricing rules should be considered as 'force majure or change in law'. The tribunal's latest order observed that even though Adani Power was aggrieved by certain portions of last year's CERC order it did not choose to exercise its right to file the appeal at that stage itself. Other respondents to the appeal are Uttar Haryana Bijli Vitran Nigam Ltd, Dakshin Haryana Bijli Vitran Nigam Ltd and Gujarat Urja Vikas Nigam Ltd. The first two are Haryana's power distribution companies while the third one is of Gujarat. (www.business-standard.com)

October 31, 2014. Tripura Power Minister Manik Dey expressed the hope that and the Power Grid Corporation of India Limited (PGCIL) would start work for implementation of the North Eastern Region Power System Improvement Project within this financial year. The World Bank and the PGCIL has prepared Detailed Project Report (DPR) for the System Improvement Project for the six North Eastern states. PGCIL signed agreements with Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura for improving power transmission system, including transmission line and power substations. (economictimes.indiatimes.com)

October 30, 2014. The Meghalaya government will provide micro grid systems in some villages in the state where power will be generated using renewable resources and energy thus saved will be routed to industries, Chief Minister Mukul Sangma said. He said these micro grid systems would be set up in a radius of one to two kms and in a cluster of villages, while generation of power would solely be on renewable resources like solar, wind and biomass. The project, if successful, would be beneficial to the state and once the set up is in place and the clusters of villages delinked from the grid, the energy thus saved could be routed to industries where it (power) could be sold at a higher rate, the Chief Minister said. Meghalaya Electricity Regulatory Commission said the country in general and Meghalaya in particular has to generate five to six per cent more power if it expects its economy to grow by eight to nine per cent in a year. (economictimes.indiatimes.com)

October 30, 2014. The Arunachal Pradesh power department has ordered all the districts to restrict power load in view of the shortage of power due to the onset of low hydro season in the north east region. An official order issued said that power supply to consumers may be affected in the form of local load shedding. The order would remain in force until reviewed, depending upon the availability of central sector power. (economictimes.indiatimes.com)

October 30, 2014. Public sector hydro-power generator NHPC Ltd’s net profit for the second quarter of fiscal 2014-15 dropped 3.3 per cent to ₹ 684.10 crore on the back of higher finance costs. The company’s net profit in the same quarter last year was ₹ 707.58 crore. However, NHPC did improve its net revenues in the quarter. Its net revenue increased by 27 per cent to ₹ 2,098.79 crore, from ₹ 1,650.02 crore in the same quarter last year. The company’s finance costs in the quarter more than doubled to ₹288.36 crore, from ₹120.31 crore in the similar previous period. (www.thehindubusinessline.com)

 [INTERNATIONAL: OIL & GAS]

November 4, 2014. Halliburton Co. Chief Executive Officer (CEO) Dave Lesar is joining the chorus of oil executives who say they aren’t worried about falling oil prices, and expect them to climb next year. Unlike with conventional oil, shale wells peter out quickly and companies depend on constant new drilling to maintain production levels. This also makes shale more responsive to price movements. Lower prices will discourage new drilling, quickly removing the glut in crude supplies, Lesar said. As the the world’s biggest supplier of fracking services, Halliburton has perhaps the best perspective on what’s driving the U.S. shale boom. Lesar also said the supply-demand imbalance is temporary, and that prices are likely to remain between $80 and $100 a barrel. The breakneck pace of shale drilling in recent years has pushed oil output to 31-year highs just as forecasts for global demand were cut. U.S. crude prices plunged more than 25 percent since June to hover around $80 a barrel, and the industry is poised for them to drop even more. Falling prices may be detrimental to Halliburton because oil producers would have less cash for the equipment and hydraulic fracturing services Lesar’s company provides. Lesar sees North America as its most promising region for deploying its new fracking gear. To make shale drilling economic, a country needs three things: good rock soaked in oil and natural gas, ample infrastructure such as pipelines to carry the petroleum to market and a profitable price. For now, the U.S. is the only market with all three, Lesar said. More than any of its peers, Halliburton is tied to the ups and downs of North America, where it generates about half its sales. More than 80 cents out of every dollar of profit in the region comes from its fracking division. (www.bloomberg.com)

November 3, 2014. Islamic State fighters in Syria said they had taken control of a gas field in the central province of Homs, the second gas field seized in a week after battles with government forces. The hardline Sunni Islamist group posted 18 photos on social media showing the Islamic State flag raised in the Jahar gas field as well as seized vehicles and weaponry. Islamic State fighters, who hold up to a third of Syria as well as swathes of Iraq and have declared a 'Caliphate' on the territories they control, took the larger Sha'ar gas field. (www.reuters.com)

October 30, 2014. U.S. crude production climbed to the highest level in at least three decades as the shale boom moved the country closer to energy independence. Output rose 0.4 percent to 8.97 million barrels a day, according to weekly Energy Information Administration (EIA) estimates that began in January 1983. The EIA’s monthly data, which goes back to 1920 and is based on data collected by state and federal agencies, shows production at the highest since 1986.

The combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies from shale formations in the central U.S., including the Bakken in North Dakota and the Eagle Ford in Texas. The surge in production has helped push oil prices down 16 percent this year to a two-year low on Oct. 27. The higher output is filling storage tanks across the country. U.S. inventories climbed by 2.06 million barrels to 379.7 million barrels in the week ended Oct. 24, according to the EIA report. Crude imports dropped 5 percent last week to 7.1 million barrels a day, down 4.8 percent from a year earlier. U.S. crude production will grow by a million barrels a day this year and next to reach 9.5 million in 2015, the most since 1970, the EIA said. (www.bloomberg.com)

October 30, 2014. Anadarko Petroleum Corp. (APC) is teaming with private equity giant KKR & Co. in a plan to drill more than 500 wells across East Texas, a major expansion in what once was one of the industry’s most prolific regions. KKR is investing in “long-term” development of the Eaglebine field in three counties about two hours northeast of Houston, the New York-based firm said. The deal values Anadarko’s interest at $1.1 billion. KKR agreed to pay $442 million to fund future drilling, The Woodlands, Texas-based Anadarko said. The investment comes as some have questioned the longevity of the U.S. drilling boom after oil prices fell 13 percent in the past month. Companies including ZaZa Energy Corp. have linked the potential of the Eaglebine to Texas’s Eagle Ford formation, which produces more than 1 million barrels a day of oil.

The deal values the East Texas land holdings at $12,000 an acre, according to RBC Capital Markets. Oil fields in East Texas helped fuel America’s rise as a superpower and built the fortunes of H.L. Hunt, who at one time was one of the world’s wealthiest men. Anadarko, Apache Corp. and EOG Resources Inc. have all drilled wells in the region. Anadarko will operate the development and hold a 51 percent interest in the joint venture. The company drilled five wells in the third quarter, and production grew to the equivalent of 3,000 barrels of oil and natural gas a day, about 90 percent of which was oil, Anadarko said. (www.bloomberg.com)

October 30, 2014. Brent has lost a quarter of its value from its peak in June. That’s bad news for PetroChina Co. and Cnooc Ltd., which made most of their profit this year from oil and gas production. PetroChina, the nation’s biggest explorer, posted its lowest profit in eight quarters, while Cnooc Ltd., which only reports quarterly sales, saw a decline of 4.6 percent. The plunge in crude may cause PetroChina’s profit margin to shrink and cause Cnooc, the country’s biggest offshore oil and gas producer, to stop some high-cost projects.

PetroChina cut capital spending by 7 percent this year in order to control costs and improve margins, which caused oil and gas production growth to slow to 2.5 percent in the first nine months of the year, compared with 4.3 percent in the same period a year earlier. Chinese explorers aren’t alone. BP Plc, Europe’s third-largest oil producer, this week reported a 19 percent slump in third-quarter profit. BG Group Plc, U.K’s third-largest natural gas producer, posted a 29 percent net-income decline on weak oil prices and lower output. (www.bloomberg.com)

October 30, 2014. For all the noise about oil’s collapse, the market is saying not that much has really changed: Higher prices will be back soon enough because the current slowdown in demand growth will prove fleeting. While Brent crude for next month delivery has fallen 25 percent since June to $86.03 a barrel, the price for 2020 contracts was down less than one-fourth that to $91.53. Global consumption will grow to 99 million barrels a day in 2019 from 92.8 million this year, according to the Paris-based International Energy Agency. While the U.S. is producing the most oil since 1985 as it taps shale-rock formations and OPEC production grew at the fastest rate in 13 months in September, future demand will require supply from areas with high costs, such as the deep waters of the Gulf of Mexico or the Arctic. Prices may rebound well before 2020. Brent, the global benchmark, will climb to as much as $100 a barrel next year, according to Sanford C. Bernstein & Co., Standard Chartered and Barclays Plc. Current prices are low enough to slow some drilling for shale oil in the U.S., according to Standard Chartered. Growth from Canada’s oil sands or the Arctic will also be impaired at these levels, Bernstein said. (www.bloomberg.com)

October 29, 2014. BP Plc has the right investments to allow it to cope with oil prices that have tumbled to $80 a barrel, according to Chief Executive Officer Bob Dudley. Brent crude, a global benchmark for oil prices, has fallen more than 20 percent this year on concerns world economies will slow, while output resumes in places like Libya after political turmoil eased and more fuel from shale is extracted in the U.S. The grade has traded below $90 a barrel for the past two weeks. European and U.S. sanctions on Russia after the country’s annexation of Crimea from Ukraine this year haven’t affected BP directly, Dudley said. It has almost 20 percent of OAO Rosneft. BP Chief Financial Officer Brian Gilvary said oil at $80 to $85 offered more opportunities than threats. (www.bloomberg.com)

November 3, 2014. Brazil's state-run oil company Petroleo Brasileiro SA will have to limit initial crude processing at its new RNEST, or "Abreu e Lima" refinery to 39 percent of capacity until it can show that pollution-control equipment is functioning properly, according to the operating license announced. RNEST, located at the Port of Suape near Recife, Brazil, will only be allowed to process 45,000 barrels of crude oil a day, the license said. That's less than half the 115,000 planned capacity of the first of two processing "trains" being built at the 230,000 barrel-a-day facility. (www.downstreamtoday.com)

October 30, 2014. China's Hengyi Petrochemical Co has delayed the start-up of its 160,000-barrels-per-day (bpd) refinery in Brunei to late 2017, the company said. The refinery was initially expected to start up next year, but this has been delayed, said the company said. Hengyi Petrochemical Co, a wholly-owned unit of the east China-based group, plans to source of its crude supplies from oil major Royal Dutch Shell, the company said. (www.downstreamtoday.com)

November 4, 2014. Oil-sands crude will supply Gulf Coast refineries regardless of how President Barack Obama rules on the Keystone XL pipeline, Alberta Premier Jim Prentice said. Developers of Alberta’s oil sands can use trains to reach the world’s largest refining market or the Energy East conduit to Canada’s Atlantic coast that TransCanada Corp. is also proposing, Prentice said. Awaiting a U.S. decision on Keystone XL since 2008, Calgary-based TransCanada applied with Canadian regulators last week to build Energy East, a 4,600-kilometer link from Alberta to tidewater in New Brunswick. The C$12 billion ($10.6 billion) pipeline would be North America’s largest crude conduit, carrying 1.1 million barrels of oil a day without crossing into the U.S. About half of Energy East’s volumes will probably be exported from Canada to markets including the Gulf Coast, TransCanada Chief Executive Officer Russ Girling said. Using Energy East and crude tankers to get the oil to the Gulf will cost about $2 to $3 a barrel more than Keystone XL, he said. Keystone XL has faced delays in the U.S. amid opposition from landowners and environmental groups seeking to block oil-sands development. The U.S. State Department, which has jurisdiction over projects that cross U.S. borders, has put off a decision while a Nebraska court weighs whether a state regulator should review the pipeline. Prentice plans to travel to the U.S. to meet with legislators in the next two months. A decision on Keystone XL appears to be imminent, he said. (www.bloomberg.com)

November 3, 2014. The European Commission said it had pushed back a deadline for deciding whether to give Russia more access to the Opal gas pipeline across Germany until the end of January from the end of October. Russian gas exporter Gazprom is currently allowed only limited access to the pipeline under a European Union law which seeks to prevent energy suppliers from dominating infrastructure. But no-one else has taken up the spare capacity on Opal, which provides a link between Russia's Nord Stream pipeline to Germany and the Czech Republic. The new deadline was the end of January 2015, although it could be extended further. A decision on whether to grant Gazprom greater access has already been delayed several times. The latest delay comes at a time of high tension between the EU and Russia over the Ukraine crisis. The conflict and Gazprom's decision in June to cut off gas supplies to Ukraine over unpaid bills has heightened the EU's determination to reduce its energy dependence on Russia. Gazprom said it had failed to reach a deal at talks with the European Commission on the Opal gas pipeline and wanted new negotiations. (www.downstreamtoday.com)

November 1, 2014. For signs of how the U.S. shale boom is transforming the global flow of oil, look halfway across the world at South Korea. The Asian nation, which relies on the Middle East for about 86 percent of its oil imports, is benefiting as new output from Texas to North Dakota displaces the crudes that fed U.S. refineries for decades. South Korea received this month a shipment of Alaskan oil for the first time in at least eight years and may buy more, the importing company said. The country was one of the first to receive a cargo of the ultralight U.S. oil known as condensate after export rules were eased.

The U.S. shale revolution has driven oil output to the highest in more than three decades, reducing America’s need for overseas purchases and sinking global prices into a bear market. South Korea is seeking to reduce its dependence on Middle East crude just as OPEC’s biggest members discount supplies to protect market share and Goldman Sachs Group Inc. predicts the group is losing influence. South Korea, which imports about 97 percent of the supplies used to satisfy its energy needs, receives more than a third of its oil from Saudi Arabia, the world’s biggest crude exporter and the largest member in the Organization of Petroleum Exporting Countries (OPEC). Its purchases from other OPEC members are declining. Crude imports from Iran fell to 4 million barrels last month, 27 percent below the five-year average, according to data from Korea National Oil Corp. Libyan supplies declined 55 percent last month from August, while shipments from Iraq dropped by 16 percent. (www.bloomberg.com)

October 31, 2014. Royal Dutch Shell, Europe's largest oil company, said a final investment decision on expansion of Hazira LNG terminal in Gujarat will be made shortly. Shell is also discussing Floating Regasification Storage Unit (FRSU) project at Kakinada in Andhra Pradesh with GAIL and Gaz de France. The FRSU will regasify imported LNG. The ` 3,000 crore Hazira LNG Terminal and Port facilities in Surat district of Gujarat is regarded as a key foreign direct investment (FDI) project and represents one of the largest international investments in India in the energy sector. The Hazira LNG Terminal and Port is partnered by Shell Gas B V and Total Gaz Electricite Holdings France, representing two of the largest private LNG suppliers in the world. Total has a shareholding of 26 per cent in each of the companies that comprise the Hazira LNG Terminal and Port project and are collectively known as Hazira Group Companies (HGC). The Hazira Terminal includes a liquefied natural gas (LNG) storage and re-gasification terminal within a fully functional port. (economictimes.indiatimes.com)

October 31, 2014. Oil’s collapse is eroding the appeal of potential U.S. LNG exports to Asia as it cuts the cost of competing supplies linked to the price of crude. Brent’s 22 percent drop this year outpaced the 8.9 percent decline in natural gas at Henry Hub, the benchmark for U.S. liquefied natural gas shipments that are scheduled to begin in 2015. When the cost of processing and shipping American supplies to Asia is taken into account, the price advantage over oil-linked cargoes from producers such as Qatar has more than halved. While the U.S. shale boom prompts the world’s biggest natural gas producer to plan exports of the fuel, it’s also boosting the country’s crude output to the most in 30 years, helping drive down global oil prices. (www.bloomberg.com)

October 31, 2014. Asian traders are split on whether Saudi Arabia will deepen the crude price cuts that propelled oil into a bear market. Saudi Arabian Oil Co. will announce official selling prices for supplies to buyers in Asia for December next week after cutting prices to the lowest in almost six years for a month earlier. The world’s biggest oil exporter will further discount supplies, according to seven respondents in a survey of traders.

Saudi Arabia’s decision may signal whether the biggest producers in the Organization of Petroleum Exporting Countries (OPEC) will offer bigger discounts to defend market share as the highest U.S. output in three decades boosts global supplies. After the most recent price cut on Oct. 1, Brent crude tumbled 9 percent and West Texas Intermediate slumped 11 percent amid speculation that OPEC won’t reduce production. Saudi Arabia cut prices for all grades and to all regions for November.

The Asian price of the Arab Light grade was lowered by $1 a barrel to a discount of $1.05 to the average of Oman and Dubai crudes, the benchmark published by Platts, the energy-information division of McGraw Hill Financial Inc. That’s the lowest since December 2008. Iran followed with its own price reductions a week later, also selling its oil to Asia in November at the biggest discount in almost six years. Kuwait and Iraq also lowered official prices. The discounted supplies show how Middle East oil producers are seeking to hold on to customers in Asia, where they face increased competition. Cargoes from the U.S. to Russia and Latin America to Africa are finding buyers in the region amid a surplus in international markets. (www.bloomberg.com)

October 30, 2014. TransCanada Corp said it has filed for regulatory approval of its C$12 billion ($10.8 billion) Energy East pipeline, the largest, longest and most expensive ever proposed for the country, as it pushes ahead with a plan to ship oil sands crude to eastern refineries and Atlantic export ports. Canada's No.2 pipeline operator said it has filed the formal project application with the National Energy Board, officially starting the clock on a regulatory review of the proposed 4,600 kilometer line, a process expected to last about 18 months. Energy East is TransCanada's most ambitious project to date.

The company, which is also the backer of the controversial Keystone XL project, wants to convert an existing natural-gas pipeline to carry 1.1 million barrels per day of crude as far as eastern Ontario, then add new pipe to Quebec and New Brunswick. The line is expected to open new export markets for Canadian oil producers whose output is rising even as increasing supplies of shale oil from U.S. deposits cut into demand for the country's oil from Midwest refiners, now Canada is primary export market. The Energy East line is expected to displace some of the about 700,000 bpd imported by eastern Canadian refineries. But he estimates as much as half of the crude shipped on the proposed line will be exported to refiners in the U.S. Northeast and Gulf Coast, as well as to Europe and as far as India. (www.downstreamtoday.com)

October 29, 2014. Crude probably won’t rise from current levels as the U.S. and Libya increase supply and demand remains weak, according to Vitol Group, the world’s biggest independent oil trader. Crude collapsed into a bear market this month amid concern that the market is oversupplied, with the U.S. pumping the most oil in almost three decades and Russia’s output nearing a post-Soviet record. Libyan crude output has risen this month, averaging 800,000 and 900,000 barrels a day. The nation produced 215,000 barrels a day in April. (www.bloomberg.com)

November 4 2014. Saudi Arabian Oil Co. lowered the cost of its crude to the U.S., where production is the highest in three decades, deepening a selloff that sent prices to the lowest in more two years. The state-owned producer, known as Saudi Aramco, lowered the premium for Arab Light relative to U.S. Gulf Coast benchmarks by 45 cents a barrel to the smallest since December. Swelling supplies from producers outside the Organization of Petroleum Exporting Countries (OPEC) drove oil prices into a bear market last month as global demand growth slowed. Middle Eastern producers are increasingly competing with cargoes from Latin America, North Africa and Russia for buyers, as well as with U.S. production that has jumped 54 percent in the past three years. Saudi Aramco surprised traders when it trimmed crude levels, known as official selling prices or OSPs, to six-year lows for buyers in Asia, a step interpreted as a shift in the stance of OPEC’s biggest producer to defending market share from supporting prices. Iraq’s Oil Minister Adel Abdul Mahdi said that members of the OPEC are engaged in a “price war” as surplus supplies spur them to offer discounts. (www.moneynews.com)

November 4, 2014. Hedge funds cut bullish holdings in crude as record U.S. output added to a global supply glut, spurring the longest losing streak in prices in six years. Money managers reduced net-long positions in West Texas Intermediate (WTI) by 2.3 percent in the week ended Oct. 28, U.S. Commodity Futures Trading Commission data show. Long positions retreated to the lowest level in 17 months. WTI fell 12 percent in October for a fourth consecutive drop, echoing the collapse in prices during the global financial crisis. Production by OPEC rose to the highest in more than a year last month, a Bloomberg survey showed, and U.S. output is running at the fastest pace since at least 1983. The gains came as the International Energy Agency reduced its estimate for demand growth this year and in 2015. (www.bloomberg.com)

November 3, 2014. Saudi Oil Minister Ali al-Naimi is making his first visits in years to fellow exporters Venezuela and Mexico, although tumbling oil prices are not the stated purpose of the trip. Naimi will attend a long-planned climate change meeting on Venezuela's Margarita Island. He will be in Acapulco, Mexico, Nov. 12-14 for a major Natural Gas conference. Still, the travel plans, come at a pivotal moment for Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC), which meets later in November to discuss how to respond to global oil prices that have tumbled 25 percent to four-year lows. The trip quickly evoked memories of the late 1990s, when Naimi helped broker a deal with Venezuela and Mexico to curb production and revive prices that had fallen near $10 a barrel. But the similarities are superficial. While Venezuela has already begun pressing for output curbs, the oil cartel's core Gulf members have indicated they see no need for action. (www.reuters.com)

November 3, 2014. Canada's Quebec province could start exporting crude from oil sands and also liquefied natural gas to Asia and Europe from 2017-2018, as buyers search for alternative suppliers to Russia, Quebec's energy minister said. The standoff between Russia and the West over Ukraine has increased Europe's quest for alternative suppliers of oil and gas and Canada's exports to Europe have already started to pick up in the last few months. In September, oil sands giant Suncor exported its first-ever cargo of Western Canadian crude to Europe, although since then crude price differentials have narrowed and Suncor said future shipments would depend on whether the economics were favourable. A recent EU decision to scrap a plan to label Canadian tar sands oil as highly polluting has helped pave the way for more Canadian exports to Europe. Quebec hopes the development of new projects will allow it to start exports of oils sands from 2017 and liquefied natural gas (LNG) from 2018. (www.downstreamtoday.com)

November 3, 2014. Croatia has received six bids in an international tender for oil and gas exploration areas in the Adriatic Sea and will choose the best ones by the end of the year, Economy Minister Ivan Vrdoljak said. Croatia, an EU member since July last year, said it expected investment worth some $2.5 billion over the next five years in exploration activities. Oil majors like Exxon, Shell, Chevron and Total as being interested but Vrdoljak declined to name any of the bidders. The tender comprised 29 block areas for exploration and future exploitation, eight in the north and 21 in central and southern Adriatic. The size of one block ranges from 1,000 to 1,600 square kilometres. Each bidder was allowed to compete for an unlimited number of blocks. The six submitted bids were for 15 blocks altogether, Vrdoljak said. The government plans to sign concession agreements by the spring 2015. The exploration concession will be awarded for five years with a possibility to extend it for another year, while exploitation concessions are planned for 25 years. According to the preliminary data, gas reserves are more likely to be found in the north while crude deposits are expected in the southern part of Croatia's Adriatic, where the seabed is deeper. Local environment groups say oil drilling could destroy the Adriatic and hurt Croatia's lucrative tourism industry. The government said the concessionaires would be required to respect the highest international environmental protection standards. Croatia currently covers about 65 percent of its annual gas consumption of 3 billion cubic metres from its own fields offshore. It hopes to be able to meet the entire local demand from the domestic wells following the new exploration efforts. Croatia is currently also running an international tender for onshore oil and gas exploration which expires in February. (www.rigzone.com)

November 3, 2014. Norwegian liquefied natural gas (LNG) shipper Hoegh LNG won a 20-year contract to operate a regasification unit in Colombia from mid-2016, it said. The floating storage regasification unit contract from Sociedad Portuaria El Cayao S.A. E.S.P. is expected to generate annual earnings before interest, taxes, depreciation and amortisation of $40 million to $45 million, depending on the terms of the contract. Although the contract is for 20 years, SPEC will have an option to reduce it to five, 10 or 15 years, Hoegh said. (www.downstreamtoday.com)

October 31, 2014. Asian spot liquefied natural gas (LNG) prices extended a slide that started in late September, overwhelmed by weak demand, falling oil prices and growing supplies, while traders said there was no relief in sight. LNG was priced at $13.00 per million British thermal units (mmBtu) for December delivery, down around 60 cents from a week ago. Australia's North West Shelf LNG export project closed a two-cargo sell tender and was expected to award them later.

The supplies are for December delivery, and the deal was likely to serve as a pricing signal for the market. Brent crude oil fell to around $85 a barrel as a firmer dollar and a well supplied market pushed the benchmark towards its steepest monthly decline since 2012. The oil benchmark has fallen more than 10 percent so far this month. Falling oil prices are making long-term, oil-linked LNG supply contracts more attractive, potentially diverting activity away from the spot LNG markets. Ukraine, Russia and the European Union reached a deal under which Moscow will resume supplying gas to Kiev over the winter, which removed some upside risk for LNG prices. Traders said that weaker LNG prices have forced those holding stocks to exit long positions to avoid losses. (www.downstreamtoday.com)

October 31, 2014. U.K. natural gas prices fell the most in six weeks as Russia agreed to restore flows to Ukraine after a four-month halt, with Societe Generale SA casting doubts on the eastern European nation’s ability to pay for fuel. Russia said it will resume gas flows to Ukraine after it receives $1.45 billion, the first tranche of debt repayments, and prepayment for November supplies under an accord brokered by the European Union. Societe Generale SA, which cut its U.K. gas price forecast after the deal, said there are still risks of supply disruptions in the first quarter of 2015. The EU, which had been trying to broker an agreement since May, sought to avoid a repeat of 2006 and 2009, when disputes between Russia and Ukraine disrupted flows to the region amid freezing weather. Ukraine agreed to pay $3.1 billion of its gas debt to Russia by the end of the year under the deal, Russian Energy Minister Alexander Novak said. (www.bloomberg.com)

October 30, 2014. The reasons oil prices started sliding in June were hiding in plain sight: growth in U.S. production, sputtering demand from Europe and China, Mideast violence that threatened to disrupt supplies and never did. After three-and-a-half months of slow decline, the tipping point for a steeper drop came on Oct. 1, said Ray Carbone, president of broker Paramount Options Inc. That’s when Saudi Arabia cut prices for its biggest customers. The move signaled that the world’s largest exporter would rather defend its market share than prop up prices. The 29 percent drop since June of the international price caught traders and forecasters by surprise. After a steady buildup of supply and weakening demand, the outbreak of an OPEC price war is casting doubt on investments in new oil resources while helping the global economy, keeping inflation in check and giving motorists a break at the pump. Brent crude, the global benchmark, declined to $82.60 a barrel on Oct. 16, the lowest in almost four years, from $115.71 on June 19. In the U.S., West Texas Intermediate touched $79.44 on Oct. 27, the lowest since June 2012. U.S. regular unleaded gasoline is averaging close to a four-year low of $3.023 a gallon nationwide, according to AAA. (www.bloomberg.com)

October 30, 2014. Everyone in the oil market should stop panicking because crude supply and demand will return to equilibrium, OPEC’s Secretary-General Abdalla El-Badri said. Members of OPEC, who pump about 40 percent of the world’s oil, aren’t waging a price war and haven’t demanded an emergency response to the plunge in crude futures, Abdalla El-Badri said. While the direction of oil prices, which have collapsed about 25 percent since June, remains unclear in the short term, they will have to rebound to guarantee long-term supply, he said. Crude collapsed into a bear market this month as Saudi Arabia and other producers deepened price discounts for their oil. U.S. crude production climbed to the highest level in at least 31 years as the shale boom moved the country closer to energy independence.

Global consumption will increase this year at the slowest pace since 2009, according to the International Energy Agency. The Organization of Petroleum Exporting Countries (OPEC) itself doesn’t face a “critical situation” as a result of the price slump, El-Badri said. OPEC’s collective output in 2015 will remain close to this year’s level of about 30 million barrels a day, he said. (www.bloomberg.com)

October 29, 2014. Algeria raised its oil price for November to the highest in five months after adding Venezuela, fellow OPEC member and holder of the world’s largest crude reserves, to the list of its mostly European customers. The North African country will sell its Saharan Blend crude at a premium of 70 cents a barrel to Dated Brent, the benchmark for more than half of the world’s oil. That’s the highest level since June and an increase from 20 cents in October. The first supertanker of Algerian crude arrived in Venezuela, according to ship tracking data. Venezuela is importing light oil to dilute its own heavy Orinoco crude and make it more attractive to refiners. The supertanker Carabobo loaded 2 million barrels of Saharan Blend crude in Algeria on for delivery to the port of Jose in Venezuela. (www.bloomberg.com)

 [INTERNATIONAL: POWER]

November 4, 2014. State-owned electricity company PLN is planning to build power plants with a combined capacity of 15,000 MW until 2020, its President Director Nur Pamudji said. He said that the remaining 20,000 MW would be built by independent power producers (IPPs). The program to develop 35,000 MW power generators will begin next year. The work will differ from each type of plants. He said that the 15,000 MW - 20,000 MW portions between PLN and the IPPs still could change later, depending on the plant types, whether hydro power (PLTA) or steam power plants (PLTU). (www.antaranews.com)

November 3, 2014. A Pennsylvania company is advancing plans to build a dozen small power plants in the Marcellus Shale region, producing electricity for the grid directly from nearby gas wells. IMG Midstream L.L.C. presented plans to the Northern Tier Regional Planning and Development Commission in Wellsboro to build nine 20 MW power stations in Bradford, Tioga, Susquehanna, and Wyoming Counties.

The company also plans to build several other 20 MW stations in shale-gas production areas in Southwestern Pennsylvania. The IMG plants are minnows compared with several power-generation whales under construction in the shale region. Panda Power has broken ground on two 829 MW plants in Bradford and Lycoming Counties, and an Invenergy L.L.C. affiliate in August applied to build a 1,300 MW station in Lackawanna County. (www.philly.com)

October 29, 2014. Japan’s Satsumasendai Assembly has voted in favor of restarting the two reactors at Kyushu Electric Power-owned Sendai nuclear power station, marking a step ahead in reviving the nuclear power industry following the 2011 Fukushima disaster. About 19 of 26 assembly members of Satsumasendai Kagoshima Prefecture, which is located 1,000km south-west of Tokyo, have voted in favor of restarting the two nuclear reactors. Subsequently, the city mayor approved the power plant restart despite Japanese environmental authorities issuing warnings of an eruption at Ioyama volcano, which is located on the island of Kyushu, and roughly 64km away from the already damaged Sendai nuclear power plant. The nuclear power plant is likely to restart operations until 2015 following completion of operational safety checks and necessary paper work by Kyushu Electric. Japan gradually closed all of its 48 nuclear reactors following 2011 Fukushima nuclear disaster, forcing the country to import expensive fossil fuels for power generation. Previously, Japan's nuclear power had contributed around 30% to the country's electricity generation capacity. (nuclear.energy-business-review.com)

November 3, 2014. Ormat Technologies Inc., a U.S. developer of geothermal energy, signed a 25-year agreement to supply Kenya Power & Lighting Co. with electricity from a 35 MW project. Ormat’s majority-owned Kenya unit will build and operate the Menengai power plant, according to the Reno, Nevada-based company. Construction is expected to begin after financing is completed, and terms of the power sale weren’t disclosed.

This is Ormat’s fifth geothermal project in Kenya, and when it’s done the company will be supplying 145 MW of capacity to the country’s grid. The Menengai project is part of President Barack Obama’s Power Africa initiative aimed at stimulating economic growth in the region, and received a partial risk guarantee from the African Development Bank. (www.bloomberg.com)

October 31, 2014. European coal for delivery in 2015 fell for a second month as natural gas tumbled after Russia agreed to terms for resuming gas exports to Ukraine. European next-year coal declined 1.3 percent to $71.55 a metric ton as of 4:55 p.m. in London, .extending the monthly loss to 3.3 percent, according to broker data. U.K. gas for delivery next summer slid as much as 1.9 percent and declined 6.2 percent in October, the biggest monthly drop since the contract started trading. (www.bloomberg.com)

November 3, 2014. Germany is turning against coal as a fuel for generating electricity, a move that will boost the nation’s reliance on natural gas from Russia. Alarmed that curtailing nuclear power has prompted utilities to burn the most coal in six years, Chancellor Angela Merkel’s government is working on a plan to reinforce Germany’s commitment to reduce fossil-fuel emissions.

The Economy Ministry published a paper laying the groundwork for the most strict steps yet to limit coal in Europe. The shift, if implemented, would force Germany to tap Russia for additional supplies, to import power from neighbors and to further subsidize renewables such as solar and wind. That would swell the country’s 100 billion-euro ($126 billion) annual fuel import bill and may raise the cost of electricity paid by consumers, already the second-highest in the European Union. It would also run counter to efforts by the U.S. and EU to isolate Russia economically. (www.bloomberg.com)

October 29, 2014. U.S. electricity markets face years of higher prices as clean-air regulations shut more coal-fired power plants than earlier forecast, cutting supply and forcing producers to rely more on natural gas. Standard & Poor’s estimates that 40 to 75 GW of coal units may be shut by 2020, compared with announced permanent shutdowns of 27 GW. About 18 percent of the closures expected through the end of next year will be replaced by natural gas, BNP Paribas SA forecast. The loss of the cheaper coal units will boost power prices by as much as 25 percent on grids that serve about a third of the nation’s population, according to the Brattle Group, a Cambridge, Massachusetts-based consulting company.

The biggest impact may be in the Midwest and Northeast, where demand for gas for heating jumps during the cold-weather months. Midcontinent Independent System Operator Inc., or MISO, which manages the electricity network that runs from Manitoba to Louisiana, expects its power reserves to fall short of targets by about 2,000 MW by 2016, with deficits mounting after that. Even with the shale boom that’s cut gas prices, power generated with the fuel costs $30 to $35 a megawatt-hour, compared with about $25 for coal, according to Brattle. (www.bloomberg.com)

 [RENEWABLE ENERGY / CLIMATE CHANGE TRENDS]

November 4, 2014. As part of its CSR activity, Coastal Gujarat Power Ltd (CGPL), a wholly-owned subsidiary of Tata Power, has installed 36 bio-gas plants across eight villages in Mundra and Mandvi talukas of Kutch district, the company said. CGPL, which has its Ultra Mega Power Project (UMPP) in Mundra, has undertaken the installation of bio-gas plants under project 'Annapurna' in association with Tata Power Community Development Trust (TPCDT), it said. Through this initiative, Tata Power aims to promote the use of household bio-gas using cow dung. Being considerably cheaper than the conventional energy sources, the daily input in each Bio-Gas plant is nearly 40 KG which enables cooking for a family of 5 to 6 people. The total cost of each plant is ` 26,200, of which ` 18,000 was invested by Tata Power with ` 8,200 contributed by the community. Each bio-gas unit has also resulted in monthly savings of nearly ` 300, which was earlier spent on wood and kerosene. The company also claims that these units will assist in protection of the environment as well as health of the villagers as it avoids pollution caused by burning wood. This reduction in pollution further protects the families from future ailments such as asthmatic problems, cataract etc. (economictimes.indiatimes.com)

November 4, 2014. In light of ongoing widespread power cuts and government-authorised power holidays across India, some companies have taken to building their own solar plants in order to have access to a guaranteed power supply. One such firm, IT company ValueLabs based in the southern Indian city of Hyderabad, recently completed the building of a 13 MW solar plant in order to keep its office running for the 3,000 employees working there. The company is also able to sell surplus electricity back to the national grid. Across India, factories and businesses have installed over 30 MW of rooftop solar panels in the last year according to data compiled by New Delhi-based consultancy Bridge to India. Demand may accelerate further under Prime Minister Narenda Modi, who has made renewable energy a priority in a drive to wean the country off its dependence on coal and oil and fulfil Modi's election pledge of bringing reliable power to all citizens. In the southern Indian state of Karnataka, the country’s second-largest IT exporter Infosys Ltd is building a 50 MW solar plant to meet 30 per cent of the company's power needs. The Bridge to India report estimates that commercial rooftop and smaller utility plants have the potential to provide up to 83,000 MW of solar energy, more than half of India’s potential solar capacity from now to the year 2024. (eandt.theiet.org)

November 4, 2014. India's sluggish wind energy market is set for a revival following the restoration of a depreciation incentive, which is expected to attract about ` 20,000 crore of investments next year as companies across sectors add 3,000 MW of capacity powered by this renewable source of energy. The reintroduction of accelerated depreciation (AD), which was withdrawn in 2012, is poised to support equipment manufacturers, including Suzlon Energy Ltd, the country's largest wind turbine maker, which received 150 MW of orders soon after the benefit was brought back. Accelerated depreciation allows a higher level of an asset's value to be written off in the first few years, reducing taxable income. The government proposed reintroducing the benefit in July. Wind power accounts for the biggest chunk of India's renewable energy capacity. Reinstatement of AD makes wind energy attractive for captive use by companies and some even want to hive it off as a separate business unit due to stable long-term returns. (economictimes.indiatimes.com)

November 4, 2014. Spanish Ambassador Gustavo De Aristegui has offered to Punjab in the fields of water treatment, agro and food processing, bio-waste management and renewable energy. The envoy called on Punjab Chief Minister Sukhbir Singh Badal, offering to seek partnership with the state government on key areas of strategic development through sharing latest technological advancements and expertise especially in the areas of water treatment and renewable energy. Aristegui informed Badal that he would lead a high powered delegation of leading players in the fields to have detailed discussions with the top brass of the state government. The state-of-art solid waste management prevalent in the Spanish towns of Barcelona and Madrid, might be replicated in the major towns of the state. (economictimes.indiatimes.com)

November 3, 2014. A day after scientists of the UN-backed panel appealed the world to take urgent actions to save the globe from disastrous consequences of climate change, environmentalists asked Indian government to take a leadership role in global climate negotiations for an ambitious action saying "the rich nations have failed to take the lead" in solving the problem. Ahead of crucial climate talks in Peru next month, they also said the world can only come together if the global negotiations are based on the principles of fairness and equity. The IPCC synthesis report said that the inaction from the governments across the world had not only led to increase of average surface temperature by 0.85 degree celsius over the period from 1880 to 2012 but also resulted in warming and acidifying of oceans, contributing to extreme weather events across the all continents in the past few years. The Delhi-based Centre for Science and Environment (CSE)'s analysis shows that a fair deal would require developed countries to reduce their emissions substantially by 2030. However, no developed country has announced an ambitious emission cut targets. Seeking actions from nations to face the challenges climate change, the IPCC, in fact, wants the world to completely phase out fossil fuels (oil, coals and natural gas) in electricity generation by the end of this century and reduce their use to 20% by 2050. Scientists have clearly noted that if disastrous consequences of climate change are to be avoided, all nations will have to collectively bring emissions of greenhouse gases to nearly zero by year 2100. (timesofindia.indiatimes.com)

November 3, 2014. The Union ministry of new and renewable energy plans to set up 5000 MW solar power production capacity in Odisha in next three years. States like Rajasthan and Gujarat have gone far ahead in developing solar projects. The central government will organize a business meet in February to attract investments worth USD 100 billion to the sector. With prime minister, Narendra Modi taking keen interest in solar projects, India is about to witness a massive scaling up of solar power capacity to 100,000 MW in next five years. The total installed capacity of solar plants in the country, at present, is pegged at 2780 MW. Union ministry of new and renewable energy said, Odisha would be setting up small hydro projects with combined capacity of 700 to 750 MW. Under the proposed Small Hydro Power policy, the Union ministry aims to renovate old small hydro projects, bring in private investments and identify new potential for power generation. (www.business-standard.com)

October 30, 2014. India ranks fourth among 55 developing nations in clean energy investment, according to a new country-by-country study which is topped by China. Released by Inter-American Development Bank, the results of the new study Climatescope 2014 suggest renewable technologies can be just as cost-competitive in emerging parts of the world as they are in richer nations. The study offers the clearest picture yet of clean energy in 55 emerging markets in Africa, Asia and Latin America and the Caribbean. According to the report, China ranks number one followed by Brazil. China received the highest ranking as the largest manufacturer of wind and solar equipment in the world and the largest demand market for said equipment. India has a score of 1.85 points against China's 2.23. India also had its best performance on Low Carbon, the report said adding that business and Clean Energy Value Chain Parameter III developed clean energy value chains and service providers. (economictimes.indiatimes.com)

October 30, 2014. Environment activists assembled in a resort at Chorla Ghat to discuss the present status of the Western Ghats and urgent measures to be taken for their protection and conservation. The environmental activists from Goa, Maharashtra, Karnataka, Kerala and Tamil Nadu discussed measures to protect the Western Ghats vis-a-vis powerful pressures from various quarters. The meeting, which discussed socio-economic development needs in the area, new government policies and climate change, also decided to convince the government to implement the Western Ghats Ecology Expert Panel (WGEEP) report. The brainstorming sessions focused on challenges and problems faced by the Western Ghats and possible solutions. They resolved unanimously to work for the protection and conservation of the eco-sensitive, biodiversity-rich wildlife corridor in the Western Ghats. (timesofindia.indiatimes.com)

October 29, 2014. More than 450 scientists and policymakers from around the world will discuss ways and means to tackle climate change and disaster management at a conference to be held here from Feb 26-28, 2015, it was announced. The Kerala State Council for Science Technology and Environment (KSCSTE) will host the International Conference on Climate Change and Disaster Management, organised in association with the International Academy of Astronautics (IAA) and the International Institute of Space Law (IISL). The highlight of the event would be the participation of 250 experts from international space agencies including NASA, NOAA, GMES and Eumetsat. The latest advancements and the future of earth science systems and data distribution network, climate change data protocols and data base creation and climate analysis and modelling will be among the topics taken up. The sessions, however, will not be limited to the technical aspects, but will examine the issues from a policy and legal perspective as well, KSCSTE said. (www.newkerala.com)

November 4, 2014. The Brazilian power developers Solatio Energia and Renova Energia SA, along with Italy’s Enel Green Power, were the biggest winners in Brazil’s first power auction with a specific category for photovoltaic projects. The three companies won contracts to deliver more than 70 percent of the solar capacity awarded in the event, the Sao Paulo-based electricity trading board CCEE said. A total of 1,048 MW of solar projects won contracts in the Oct. 31 auction. The power plants will require about 4.15 billion reais ($1.66 billion) of investment. Solatio will invest about 1.6 billion reais in Brazil solar farms over the next three years, according to CCEE. (www.bloomberg.com)

November 3, 2014. The world can only consume a fraction of the known deposits of fossil fuels if it’s to avoid the most dangerous effects of climate change, according to the biggest assessment of the issue. Burning reserves of oil, natural gas and coal already identified by national governments and commodity companies would cause widespread droughts, more-violent storms and melting of polar ice caps, a long-awaited report by a panel of climate scientists gathered by the United Nations said. The finding, encapsulated in a so-called carbon budget for the world, is crucial because it tells governments how much room they have to maneuver in balancing measures to reduce emissions that may be costly to companies and the economy, against the predicted consequences of doing nothing. The idea of the carbon budget was given prominence in the report from the UN’s Intergovernmental Panel on Climate Change, helping the concept seep deeper into the vocabulary of government officials. The study, released in Copenhagen and the work of some 2,000 scientists, is the world’s fullest investigation into the science of global warming and sets out ways to make changes. It’s meant to guide ministers from more than 190 nations working toward signing a deal in Paris at the end of 2015. The pact is aimed at restraining emissions in all nations, building on the limits set out in the Kyoto Protocol that lapse in 2020. Oil companies including Exxon Mobil Corp. and Royal Dutch Shell Plc have said they don’t see a danger of their reserves becoming devalued as emissions limits take hold. About 85 percent of the world’s energy comes from fossil fuels, and they are predicted to remain dominant for decades to come. The International Energy Agency estimated the annual value of subsidies to the fossil-fuel industries is $544 billion. That compares with the $343 billion to $385 billion that the climate panel said the world spends on reducing emissions and increasing our resilience to climate change. The IPCC report gives a budget for carbon-dioxide emissions compatible with the goal of keeping global warming to 2 degrees Celsius since the industrial revolution. That level still puts the world on track for the fastest shift in temperatures since the last ice age ended about 10,000 years ago. (www.bloomberg.com)

November 2, 2014. Humans are causing irreversible damage to the planet from burning fossil fuels, the biggest ever study of the available science concluded in a report designed to spur the fight against climate change. There’s a high risk of widespread harm from rising global temperatures, including floods, drought, extinction of species and ocean acidification, if the trend for increasing carbon emissions continues, a panel convened by a United Nations body said in Copenhagen. Humans can avoid the worst if they significantly cut emissions and do so swiftly, it said. The report is designed to guide policy makers around the world in writing laws and regulations that will curb greenhouse gases and protect nations most at risk from climate change. It will also feed into talks among 195 nations working on an international agreement to rein in emissions that envoys aim to reach in Paris in December 2015. The report is the culmination of five years of unpaid work by thousands of scientists, who sifted through research into all areas of global warming and condensed the conclusions into a single document that summarizes the most relevant findings. The panel, which has won a Nobel Prize for its work, last carried out the exercise in 2007 and has become more certain about the threat since. (www.bloomberg.com)

November 1, 2014. Denmark should ban coal use by 2025 to make the Nordic nation a leader in fighting global warming, adding to green measures ranging from wind energy to bicycle power, Denmark's Climate, Energy and Building Minister Helveg Petersen said. Denmark has already taken big steps to break reliance on high-polluting coal - wind turbines are set to generate more than half of all electricity by 2020 and 41 percent of people in Copenhagen cycle to work or school, higher than in Amsterdam. His ministry is studying details of how it would work before unveiling a formal plan. Denmark imports about 6 million tonnes a year of coal on world markets, currently from Russia, so a ban would coincidentally cut dependence on Moscow for energy. The Danish Energy Association, representing energy firms, said a faster phase-out of coal would bring risks that wind turbines could not meet demand on calm days. Coal now generates about a third of Danish electricity. Denmark often gets high marks for its work to cut greenhouse gas emissions, which fell 25 percent from 1990 to 2012, among the steepest falls of any EU nation. It is aiming for a 40 percent cut from 1990 by 2020, matching the EU's goal for 2030. A report by the WWF conservation group said Denmark was a global leader on climate and energy. U.N. Secretary-General Ban Ki-moon and leading climate scientists will unveil a U.N. report in Copenhagen that outlines ways to fight climate change to avert more floods, droughts, heat waves, more powerful storms and rising seas. (in.reuters.com)

October 31, 2014. The U.K. Green Investment Bank mobilized 5 billion pounds ($8 billion) of total spending on carbon-cutting technology in the two years since starting up. The Green Investment Bank has invested about 1.6 billion pounds in 37 projects around Britain, with companies putting in 3.7 billion pounds, it said. Details of two of the projects have yet to be announced. The bank began operating in October 2012 and has been capitalized with 3.8 billion pounds to invest in projects from local energy efficiency programs to large offshore wind farms to try to cut carbon emissions and promote clean energy. (www.bloomberg.com)

October 31, 2014. At a time when India is embarking on an ambitious renewable energy plan, Sweden is looking for possible collaboration with the country in developing 'micro grids' which would help in increasing power availability by tapping green sources. A government agency, the entity focuses on use of renewable energy, improved technologies and smarter end-use of energy, among others. India expects to attract about $ 100 billion investments in renewable sector in the next five years and various efforts are being made to increase use of green energy for electricity generation. The Swedish Energy Agency said that India should look at 'bottom up' rather than 'top down' approach to tap more renewable sources. Currently, about 48 per cent of Sweden's energy supply comes from renewable energy sources. (economictimes.indiatimes.com)

October 30, 2014. China is on course this year to build four times the total wind power installed in all of Denmark as developers push to build the turbines ahead of cuts to incentives originally designed to spur the industry. The nation may add as much as 20 GW of wind power in 2014 and maintain that pace next year, the Chinese Wind Energy Association said. Should that target be reached, China this year will surpass the 18 GW of wind the nation installed in 2011, the highest annual number on record. Installations in Denmark, a pioneering nation in the application of wind energy, will edge 1 percent higher to a total installed base of 4.9 GW by the end of 2014. By annual additions, China is set to build almost twice as much onshore wind power as Europe and more than triple new installations in the U.S. All that new wind energy means China’s policy makers are now at the stage where they’re set to withdraw the incentives brought in to encourage developments. China has proposed cutting tariffs by as much as 11 percent for projects to be built after June 30, 2015. The current tariffs were introduced in 2009 and comprise four different levels for onshore wind farms ranging from 0.51 yuan a kilowatt-hour to 0.61 yuan a kilowatt-hour. China surpassed the U.S. a year after the tariffs were brought in to become the world’s biggest wind market. Capacity has doubled in the past three years. China aims to more than double its wind capacity to 200 GW by the end of 2020. The nation had 89.6 GW of wind installations at the end of 2013. China’s biggest turbine maker will account for at least 4 GW of installed capacity in 2014, the Xinjiang Goldwind Science & Technology Co., said. Guodian United Power Technology Co. will double shipments this year. Switching off wind turbines in China because their electricity can’t be absorbed by the grid is limiting how much planners can cut incentives given to renewable power producers, the China Renewable Energy Engineering Institute, said. The idled capacity is a result of the rush to build turbines in the windiest areas of China, surpassing the transmission grid’s ability to handle and transmit the power. Leaving wind farms turned off cost operators at least 8.16 billion yuan in lost revenue last year, according to the institute. China had 11 percent of its wind power capacity sitting unused last year, with the rate rising to more than 20 percent in the northern provinces of Jilin and Gansu, according to the institute. (www.bloomberg.com)

October 29, 2014. Ceres Power Holdings Plc will work with a Japanese power engineering business to help develop and bring to market the U.K. company’s fuel-cell technology that converts natural gas or hydrogen into power and heat. The companies agreed to work together to lower the cost of the system after testing in the U.K. and Japan, Horsham-based Ceres said. Homes and businesses are installing fuel cells to produce clean power locally and cut the cost of delivering electricity through the grid. Japan plans to produce more power off the grid as it recovers from the 2011 Fukushima nuclear disaster. (www.bloomberg.com)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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