Energy News Monitor | Volume XI; Issue 9

[Pakistan: the next frontier for Indian power companies?]

                             “India’s power sector is also inefficient but we are in a relatively better position. Though there have been improvements in the generation side, half hearted approach to reform is leading Pakistan towards complete collapse. Pakistan is in need of experts who can assist in mending loose ends of the power sector. Many platforms on regional cooperation talk of energy and sustainability as binding forces between India and Pakistan…”

 

 

 

NEWS BRIEF

[NATIONAL: OIL & GAS]

August 11, 2014. ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corp (ONGC) has signed Production Sharing Contracts (PSCs) for two onshore blocks in Myanmar, ONGC said. The contracts were signed between OVL, Myanmar Oil & Gas Enterprises Ltd (MOGE), National Oil Company of Myanmar, and Machine & Solutions Co Ltd (M&S), the local partner. OVL had participated in the Myanmar Onland Bidding Round 2013, launched by the Myanmar government and was awarded two onshore blocks, B2 and EP-3, in October. OVL has participation in 35 projects in 16 countries including Bangladesh, Brazil, Colombia,Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, and Vietnam. (economictimes.indiatimes.com)

August 11, 2014. Cairn India has paid government $7.05 billion in profit petroleum from its Rajasthan oil fields in the last three fiscals, accounting for 60 per cent of the profit petroleum government earned from private fields. The government got $11.954 billion in profit petroleum from oil and gas fields operated by private firms like Cairn and Reliance Industries Ltd (RIL) during 2011-12 to 2013-14, Oil Minister Dharmendra Pradhan said. BG Group-operated Panna/Mukta and Tapti field gave $2.507 billion. Cairn's Ravva field gave $1.066 billion and its Cambay basin field CB-OS/2 an additional $316 million. RIL's eastern offshore KG-D6 block gave the government $486 million, Pradhan said. Pradhan said domestic natural gas production of 129 million standard cubic meters per day in 2014-15 will be way short of a demand of 405 mmscmd. The demand is projected to rise to 446 mmscmd next fiscal and to 473 mmscmd in 2016-17. Against this, domestic gas output will increase in 139 mmscmd in 2015-16 and 175 mmscmd in 2016-17. Similarly, crude oil production is projected to rise from 38.76 million tons in current fiscal to 42.54 million tons next year before dropping to 41.15 million tons in 2016-17. Against this, oil demand is projected at 159.8 million tons in 2014-15, 177.7 million tons in 2015-16 and 186.8 million tons in the following year, he said. (economictimes.indiatimes.com)

August 12, 2014. Indian Oil Corp (IOC) said it will begin commissioning its ` 30,000 crore Paradip refinery in Odisha by the end of the year. Commissioning of the full 15 million tons unit will take a few months. Paradip refinery has been delayed by two years. It was originally to come up in 2012 but got delayed due to several factors including cyclone and local law and order issues. The revised timelines for commissioning was set for August/September 2014 but that is unlikely to be achieved. (economictimes.indiatimes.com)

August 12, 2014. Uttar Pradesh government said Indian Oil Corp (IOC) will invest around ` 8,700 crores in the Mathura refinery expansion project which would lead to speedy development of the Mathura-Agra region besides creating job opportunities. IOC will invest ` 8,700 crores for the Mathura refinery extension project under which the oil refining capacity would be enhanced from the existing 8 lakh metric tonnes to 11 lakh metric tonnes and it would provide employment opportunities to some 10 thousand youths. This would be an important step in the direction of industrial development of the state. IOC said that a detailed proposal in this connection would be sent. (economictimes.indiatimes.com)

 

 

August 8, 2014. Bharat Petroleum Corp Ltd (BPCL) has drawn up plans to ramp up the capacity of its refinery at Numaligarh in Assam's Golaghat district from three million tonnes per annum to nine million tonnes at an investment of ` 16,600 crore. The project includes laying a 1,350-km pipeline to bring in crude from a port on the east coast. While the refinery expansion would cost about ` 8,800 crore, the remaining investment is expected to go into laying the pipeline and other assorted facilities. Government consultancy firm Engineers India Ltd is preparing the feasibility report for the project and the pipeline. BPCL has discussed the plan but a final call would be taken after the project report and other paperworks are completed. But, Bharat Petroleum wants 53% of capital subsidy on the ` 8,800 crore to be spent on the refinery expansion and extension of excise duty concession on the expanded capacity as a cushion against geographical, infrastructure and political difficulties in execution of the project. The company has approached the oil ministry for the relief measures. It has cited the example of Brahmaputra Cracker and Polymer Ltd, a joint venture with gas utility GAIL, which has been granted similar subsidy. The polymer project was drawn up as part of UPA government's initiative for the north-east. The present capacity of three million tonnes per annum of the Numaligarh refinery is considered too small to ensure efficient operations. Though the refinery is capable of running at 3.3 million tonnes per annum, it operates at only 2.5 million tonnes due to short supply of crude from Oil India Ltd. (economictimes.indiatimes.com)

August 8, 2014. Siemens Ltd has bagged orders worth ` 228 crore from Reliance Industries Ltd (RIL) for supplying steam turbine generation units to its Jamnagar refinery in Gujarat. Reliance Industries is in the process of expansion of its J3 petrochemical complex at Jamnagar, Gujarat, Siemens Ltd said. The scope of work includes design, manufacture, supply and commissioning of steam turbine generation units, which would be manufactured at Siemen's Vadodara factory. (economictimes.indiatimes.com)

August 7, 2014. The Adani Group and Indian Oil Corp (IOC) are in talks to build a ` 30,000-crore joint venture (JV) refinery at Mundra, which would give Gautam Adani an entry into the oil sector while the state-run company would get land port facilities for the proposed export-focused unit. The proposed 30-million-tonne refinery at Mundra will make Prime Minister Narendra Modi's native state, Gujarat, a bigger energy hub. It already has refineries of Reliance Industries, Essar Oil and Indian Oil, apart from two LNG terminals and the country's biggest city-gas distribution network. Gautam Adani has held initial talks with top executives at IOC and offered around 3,500-4,000 acres of land for the project. In exchange, Adani is keen to get a minority stake in the project that may be equivalent to the price of the land. If the deal works out, it will provide IOC land with port facility adjacent to it on the western coast of India. Most of the refineries of IOC are landlocked and it is keen to set up an export-oriented refinery on the western cost. The deal will also mark the entry of Adani Group in crude oil refining business. The two companies currently have a joint venture for city gas distribution. Adani in talks with IOC for ` 30,000 crore Mundra refinery JV IOC has 10 refineries with a combined capacity of 65.7 million tonne per annum (mtpa) year, which accounts for 31 per cent of India's domestic refining capacity. The company aims to increase its refining capacity to 100 mtpa by 2021-22. (economictimes.indiatimes.com)

August 7, 2014. Essar Oil will shut a 40,000-barrel-per-day unit at its Vadinar refinery for a week for maintenance in the second half of this month. Essar operates a 400,000-barrel-per-day refinery at Vadinar in Gujarat. Essar has scheduled the shutdown to the later part of the month to take advantage of a planned cut in supplies of locally produced Mangala crude for about 10 days. Cairn India Ltd, which operates an onland crude producing block at Barmer in Rajasthan, will shut its Mangala processing terminal for 10 days from Aug. 21 to add new units. (economictimes.indiatimes.com)

August 12, 2014. Adani Gas-IOC combine and state gas utility GAIL were among nearly a dozen firms that bid for licenses to retail CNG and piped cooking gas in 14 cites including Bengaluru and Pune. Other firms that bid for city gas distribution licenses at the close of bidding included Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL), Gujarat Gas and GSPC. Oil regulator PNGRB had invited bids for development of CGD networks in Eranakulam in Kerala; Rangareddy/Medak, Nalgonda and Khammam in Andhra Pradesh/ Telengana; Bengaluru rural and urban districts in Karnataka; Raigarh, Pune and Thane in Maharashtra; Daman; Dadar & Nagar Haveli; Shahjahanpur in UP; Guna in MP; Panipat in Haryana and Amritsar in Punjab. In all 44 bids were received with Bengaluru being the most sought after and Andhra Pradesh/Telengana faring poorly. Adani-IOC combine bid for Eranakulam, Bengaluru, Daman, Dadar and Nagar Haveli, Amritsar and Panipat. (economictimes.indiatimes.com)

August 11, 2014. Adani Group and Gujarat State Petroleum Corp (GSPC) will set up a ` 4,500 crore LNG import terminal at Mundra SEZ in Gujarat by December 2016. GSPC LNG Ltd, a unit of Gujarat government-owned GSPC, won approval to become a co-developer of the multi- product special economic zone (SEZ) being developed by Adani Ports at Mundra, a move that will help trim cost by ` 700-800 crore. Commerce Ministry's Board of Approvals (BoA) gave nod to GSPC LNG's proposal to 5 million tons a year LNG terminal together with storage and re-gasification facilities over an area of 28 hectares. (economictimes.indiatimes.com)

August 7, 2014. Naveen Jindal plans to exit from the oil and gas business and his listed entity Jindal Steel and Power Ltd (JSPL) will sell stakes in some projects to reduce the group's debt burden. JSPL had debt of ` 37,500 crore as of June against ` 36,500 crore in the year earlier. However, the company plans to continue its investment drive to expand in mining besides its steel and power plants. JSPL will invest ` 6,000 crore during the fiscal and it will be largely funded from internal cash generation. The group has already hired advisors to look for buyers for Jindal's investments in oil and gas blocks while JSPL is evaluating its options. In a bid to diversify in 2008, the group established Jindal Petroleum that acquired seven oil and gas blocks, including five in Georgia and one each in Bolivia and India. According to Jindal Petroleum, the company has so far committed an investment of $200 million and is currently producing about 550 barrels a day. It announced the discovery of crude oil in one of its blocks in Georgia and a $100 million development plan for the blocks. (economictimes.indiatimes.com)

August 12, 2014. The Vijay Kelkar committee, which is in favour of continuing with the oil and gas contract system with some modifications, will submit its report by end-September after a three-month extension, the government said. It was set up last year to prepare and suggest steps to enhance domestic oil and gas output and reduce imports. In the first part of its report, it controversially opposed the Rangarajan committee's suggestion that oil firms should share a part of revenue from the day output starts, instead of the current system in which they recover costs before sharing profit with the state. The suggestion comes when the oil ministry is preparing to adopt the Rangarajan panel's view. Two members of the Kelkar committee, including the oil ministry's nominee, RN Choubey, who was the director general of hydrocarbons, gave dissent notes. Choubey disassociated from the chapter that defended the cost recovery regime, questioning its facts and figures. The Kelkar panel's next report is likely to deal with taxation, unconventional energy sources and gas markets. Its first report criticised the Rangarajan panel's views on the contractual regime. Earlier, the comptroller and Auditor General (CAG) of India also criticised the contractual regime and its implementation. However, the Kelkar panel report said in the prevailing contracts, companies' interests are aligned with the government and there is "no incentive for the investor to gold-plate". (economictimes.indiatimes.com)

August 12, 2014. Petroleum Ministry has accorded in-principle approval for 5 per cent stake-sale in ONGC which may fetch the government about ` 18,000 crore to meet disinvestment target for the current fiscal. Ministry of Petroleum and Natural Gas has agreed in-principle to the proposal of disinvestment of 5 per cent government stake in ONGC, Minister of State for Finance Nirmala Sitharaman said. As per the Budget 2014-15, the disinvestment target is ` 58,425 crore including receipts from disinvestment of government stake in the non-government companies. Meanwhile, the Department of Disinvestment (DoD) has kickstarted the process of stake sale in ONGC and invited bids for appointing merchant bankers to manage the share sale. The merchant bankers would advise the government on the timing and the modalities of the offer for sale (OFS) and ensure best return to the government. The DoD will appoint up to five merchant bankers to manage the OFS. (economictimes.indiatimes.com)

August 12, 2014. Petrol price is likely to be cut on Independence Day on the back of softening in international rates, Indian Oil Corp (IOC), the nation's largest fuel retailer, indicated. State retailers revise petrol price on 1^st and 16^th of every month based on average international oil price and rupee-dollar exchange rate in the previous fortnight. Oil firms had last cut rates on August 1 by ` 1.09 per litre, the first reduction in price since mid-April. Petrol currently costs ` 72.51 per litre in Delhi. There are indications that the rates may be cut by a similar amount on August 15 though Ashok refused to speculate on the quantum. This will be the second reduction in rates this month. The government had in June 2010 freed petrol prices and since then rates have moved in tandem with the cost on most occasions. For diesel, the government had in January 2013 decided to eliminate the subsidy in stages through monthly increases in prices by up to 50 paise per litre. With monthly increases continuing, subsidy or losses on diesel have been trimmed to ` 1.33 per litre but this will go up as there is a marginal increase in international gasoil (diesel) prices. Diesel price revision is due only on September 1 as per the policy of raising rates every month. (economictimes.indiatimes.com)

August 12, 2014. The oil ministry is proposing about 11 changes in production sharing contracts (PSCs) to allow explorers more flexibility in meeting timelines for developing fields or make it easier for them to exit in case of defence and environmental restrictions as well as give block oversight committees powers to decide dispute over technicalities. The government said the proposed changes, once approved by the Cabinet Committee on Economic Affairs, would apply to existing and future contracts. Dispute between Directorate General of Hydrocarbons (DGH), the ministry's technical arm which monitors PSCs, and explorers over PSC technicalities have stalled work on bringing as many as 62 discoveries into production and soured investment climate in the oil sector. (economictimes.indiatimes.com)

August 11, 2014. The government is considering a new price for domestic gas that would be lower than that suggested by the C. Rangarajan panel, while the decision would be taken after the budget session of Parliament. Finance Minister Arun Jaitley, who will take the final decision on the formula to be applied for pricing domestic gas, said that the government was considering the matter. The Cabinet Committee on Economic Affairs had decided to defer implementation of the Rangarajan formula till Sep 30 and come up with a new regime by Oct 1. The current gas price of $4.2 per million British thermal unit (mBtu) would have risen to $8.8 per mBtu based on the Rangarajan formula linking domestic price to the cost of importing liquefied natural gas (LNG) and rates in the US, Britain and Japan. The new government has decided to defer the implementation till September-end to hold wider consultations with various stakeholders. The petroleum ministry has suggested a deadline of end-August for completing discussions with gas producers as well as consumers such as urea and power plants. The petroleum ministry said that a new panel is being asked to take into consideration the concerns of the power and fertilizer ministries about the impact of the steep hike recommended by the Rangarajan committee. Critics of the Rangarajan formula point out that it includes Japan's import prices even though that country is not a producer. Among the options being considered is rupee-pricing of gas, as has been suggested by Jaitley, so as to cushion prices against foreign exchange volatility. (economictimes.indiatimes.com)

August 11, 2014. Government will pay fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) ` 11,000 crore in subsidy for the first quarter. Fuel retailers sell diesel, domestic LPG and kerosene at government controlled rates which are below market price. The loss they thus incur is made good through cash subsidy from the government and dole from upstream firms like Oil and Natural Gas Corporation (ONGC). Of this, IOC will get ` 6,076 crore, BPCL ` 2,407 crore and HPCL ` 2,517 crore. During April-June, the three fuel retailers cumulatively lost ` 28,690.74 crore on the three fuel. Of this, the upstream firms ONGC, Oil India Ltd and GAIL have been asked to meet ` 15,546.65 crore or 54 per cent of the under-recovery or revenue loss. After accounting for government cash subsidy, fuel retailers are still left with about ` 2,145 crore of unmet losses. (www.rediff.com)

 

August 10, 2014. Former Australian judge Michael McHugh, who was appointed by Supreme Court to adjudicate on Reliance Industries' KG-D6 dispute, had slammed the government interpretation of his statements before quitting the tribunal. McHugh, who was on April 29 appointed by the apex court as third arbitrator to a Tribunal to decide if the government was right in disallowing recovery of $2.37 billion of KG-D6 cost for gas output lagging targets, had initially declined to the offer saying his consent was not taken. He, however, later agreed after lawyers for KG-D6 partners contacted him on May 29 explaining the process. But the government and its lawyers maintained that he cannot return once he has declined the offer, a stand that finally made him quit the Tribunal on July 20. Before his July 20 decision, he wrote to government lawyers saying his May 25 email expressing intention of not accepting the Supreme Court offer cannot be construed as withdrawal from the Tribunal until the court accepts the move. (economictimes.indiatimes.com)

August 9, 2014. A complaint against Reliance Industries Ltd (RIL) and its chairman Mukesh Ambani, in the KG-basin gas pricing issue, has revealed some serious cognizable offences, the anti-corruption branch (ACB) of the Delhi Police has said. In an affidavit filed before the Delhi High Court in relation with RIL's petition challenging a first information report (FIR) against Ambani, ACB has claimed the matter falls under its jurisdiction and it is duty-bound to probe it. (www.business-standard.com)

August 7, 2014. Government lawyers for the Reliance Industries Ltd's (RIL) arbitration proceedings have told the oil ministry that appointment of a foreigner as the presiding arbiter would be "undesirable" in the absence of any such contractual provision and difficulty in ascertaining the person's "independence and impartiality" in the face of "global presence" of RIL's 30% partner British energy major BP Plc. RIL had on November 23, 2011 initiated the arbitration proceeding against the oil ministry's decision to slap a penalty — which has now increased to $2.3 billion — for failing to meet gas supply target for the KG-D6 block, off the Andhra coast. The advocates for the government, Swarup & Associates, have given a brief to the ministry, saying the Article 33.6 of the state's contract did "not provide for appointment of a foreign national as a third arbitrator". But, the real reason for reservations against a foreigner seems to be apprehensions over BP's global presence and reach. (economictimes.indiatimes.com)

August 6, 2014. UAE's national oil company Adnoc and Kuwait Petroleum Corp (KPC) have evinced interest in hiring a part of India's under-construction strategic storage, Oil Minister Dharmendra Pradhan said. India, which is 79 per cent dependent on imports to meet its crude oil needs, is building underground storages at Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka to store about 5.33 million tonnes of crude oil to guard against crude price shocks and supply disruptions. The storages at Visakhapatnam, Mangalore and Padur will be enough to meet nation's oil requirement of about 10 days. The 1.33 million tonnes storage at Visakhapatnam would be ready by September/October while the 1.5 million tonnes Mangalore facility and 2.5 million tonnes unit at Padur would be completed by mid-2015. Visakhapatnam facility would have the capacity to store 1.33 million tonnes of crude oil in underground rock caverns. Huge underground cavities, almost ten storey tall and approximately 3.3 km long are being built. With the commissioning of Visakhapatnam storage, India will join nations like the US, Japan and China that have strategic reserves. These nations use the stockpiles not only as insurance against supply disruptions but also to buy and store oil when prices are low and release them to refiners when there is a spike in global rates. Originally, India Strategic Petroleum Reserves Ltd (ISPRL), the state-owned firm building the strategic stockpile, was to build the Visakhapatnam facility by October 2011 while the Mangalore storages were to be mechanically completed by November 2012. The storage at Padur was scheduled for completion in December, 2012. However, construction got delayed. The Cabinet had in January 2006 approved the building of the strategic crude oil storages at a cost of ` 2,397 crore but due to cost and time overrun the capital required is now estimated at ` 3,958 crore. The Visakhapatnam facility will cost ` 1,038 crore, Mangalore ` 1,227 crore and Padur ` 1,693 crore. (economictimes.indiatimes.com)

 

 

August 6, 2014. A Delhi High Court judge recused from hearing two separate pleas of the Centre and Reliance Industries Ltd (RIL) seeking quashing of an FIR lodged against RIL, Mukesh Ambani and former Petroleum Minister M Veerappa Moily for alleged collusion among them in increasing gas prices. Justice Manmohan then listed the matters for August 19. Meanwhile, the court said its earlier interim order will continue and asked the Centre and the RIL to co-operate in the probe by Anti-Corruption Bureau of Delhi government. Earlier, the court had issued notices on the plea of RIL seeking quashing of the FIR lodged against it, Mukesh Ambani and Moily by the then AAP government. The Arvind Kejriwal-led Delhi government had lodged an FIR naming Moily, Mukesh Ambani and others on gas pricing issue and alleged the Congress-led UPA government "favoured" RIL with an eye on 2014 general elections and BJP maintained "silence" hoping to gain corporate funding for the polls. Both the Centre and RIL have moved the high court seeking quashing of the FIR and both matters will now come up for hearing on August 19. (economictimes.indiatimes.com)

 [NATIONAL: POWER]

August 12, 2014. Dongfang Electric Corporation (DEC) of China has come forward to set up a 660-1,000 MW power generation facility in Telangana in the shortest time possible. DEC was stated have expressed its keen interest to participate in the Telangana government’s efforts to add power generation capacity in the shortest time possible and in an effective way. The government of Sichuan Province will actively support DEC’s business with Telangana for power projects. It also stated that project finance will be arranged on mutually agreed terms and conditions. (www.business-standard.com)

August 12, 2014. Singapore's Sembcorp Industries Ltd expects a formal approval to increase its 45 per cent stake in the 1,320 MW power plant in Andhra Pradesh within a "couple of months". NCC Infrastructure Holdings Ltd, jointly with Gayatri Energy Ventures Pvt Ltd, is building the plant which would start operation by end of next year. Meanwhile, Sembcorp's 60 per cent owned first power plant, also of 1,320-MW at Krishnapatnam, is expected to commence operation from end of this year. Thermal Powertech Corporation India, a joint venture between Sembcorp and India's Gayatri Energy Venture, is building the plant. (economictimes.indiatimes.com)

August 11, 2014. Hindustan Powerprojects Pvt Ltd (HPPL), formerly known as Moser Baer Projects Pvt Ltd, has said its thermal power project in Madhya Pradesh is progressing and first unit of first phase is expected to come up in November this year. The company is setting up its thermal power project of 2,520 MW in in Jaithari village of Anuppur district in Madhya Pradesh. The company is investing ` 7,500 crore in the first phase of the project. It had signed Fuel Supply Agreement (FSA) with South Eastern Coalfields Ltd in 2010. The plant, which is taking shape through a special purpose vehicle Moser Baer Madhya Pradesh Ltd, is expected to come up in multiple phases is in proximity of coalfields of South Eastern Coalfields Ltd and is close to power deficit markets of Maharashtra, Madhya Pradesh and Uttar Pradesh. (www.business-standard.com)

August 10, 2014. Adani Enterprises has set aside about ` 126 crore as payment to authorities on account of delay in starting commercial operations of its Tiroda thermal power plant in Maharashtra. Adani Power Maharashtra, a subsidiary of the company, is executing the 3,300 MW capacity thermal power project at Tiroda in Maharashtra. The third 660 MW unit of the project was commissioned in June last year. The company intends to sell power from this plant under the long term PPAs (power purchase agreements) as well as in the open market. Entire 3,300 MW capacity was earlier expected to be commissioned by the end of financial year 2013-14. Adani Power, another group company has 8,620 MW capacity and plans to take it to 9,280 MW. It is developing six power projects across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. (economictimes.indiatimes.com)

August 12, 2014. The Andhra Pradesh (AP) government once again refused to honour a set of power purchase agreements (PPAs) that ensure 53 per cent of the available supply to the new state citing technical reasons. The AP government rejected the orders — issued by the outgoing AP Electricity Regulatory Commission (Aperc) — which said the attempted withdrawal of the select PPAs by APGenco was not valid. The PPAs pertain to 1,700-MW Vijayawada thermal power station and 1,200-MW Rayalaseema thermal power project by the Genco. As it resulted in widespread power cuts, the Telangana power utility had approached the regulator questioning APGenco's decision. AP government said Aperc's action was devoid of any legal sanctity as both the governments had constituted their own state electricity regulators as stated in the Schedule 12 of the AP Reorganisation Act, 2014, by August 1 itself. (www.business-standard.com)

August 12, 2014. Lower demand for electricity due to monsoons led to a fall in the country's peak power deficit to 3.9 per cent last month. Peak power deficit or supply of electricity when demand is maximum was down to 3.9 per cent in July from 5.1 per cent in June, as per latest data by the Central Electricity Authority (CEA). CEA provides assistance to the Ministry of Power in all technical and economic matters. The total electricity demand of the country during July was 1,45,014 MW, of which 1,39,320 MW was met, leaving a gap of 5,694 MW. North Indian states (including Punjab, Haryana, Rajasthan and Himachal Pradesh), which braved heat and humidity during July reported a deficit of 5.8 per cent or 2,855 MW, the CEA data said. Temperatures in the region hovered around 40-42 degrees during the month. The western region comprising Gujarat, Maharashtra, Madhya Pradesh and Chhattisgarh was the least affected with 0.9 per cent. The total peak demand was 41,598 MW of which 41,213 MW was met, CEA data said. South Indian states of Andhra Pradesh, Tamil Nadu, Karnataka and Kerala had a peak power requirement of 35,748 MW of which 33,839 MW was met leaving a deficit of 1,909 MW or 5.3 per cent. The eastern region states of Bihar, Jharkhand, Odisha, West Bengal reported a deficit of 1.7 per cent during the month. The north-eastern region (Assam, Meghalaya, Manipur, Nagaland, Arunachal Pradesh, Mizoram and Tripura) was the worst affected with a peak power shortage of 11.8 per cent. The total peak power demand of the seven sister states was 2,263 MW of which 1,996 MW was met. (economictimes.indiatimes.com)

August 8, 2014. State-owned Power Grid Corp has received approval of its board for investing ` 477.24 crore in two transmission projects. The utility will invest ` 288.49 crore for 'System Strengthening - XX in Southern Regional Grid'. Another ` 188.75 crore would be put in for 'Transmission System for Connectivity for NCC Power Projects Ltd (1,320 MW)'. Both projects are expected to be commissioned in 30 months from the date of investment approval. (www.business-standard.com)

August 12, 2014. Domestic coal shortages are prompting India’s National Aluminium Co Ltd (Nalco) to plan construction of a $3 billion smelter complex abroad, possibly in Iran, underscoring the task Prime Minister Narendra Modi faces to boost energy output. Indonesia, Vietnam, Malaysia, Oman and United Arab Emirates are other potential sites for the 500,000 metric ton smelter and a 1,000 MW captive power plant, Nalco said. Using imports to make up for a lack of sufficient local coal output is too costly, Nalco said. While Modi has pledged to fix energy woes over time, graft probes, environmental objections and slow land acquisition are holding back efforts to mine more of the fuel. India produced 565.6 million metric tons of coal in the 12 months through March 2014, compared with demand of 739.4 million tons. Supplies to captive power plants dropped 31 percent to 37.80 million tons, according to the Power Ministry. Making aluminium with imported coal isn’t viable as it costs $1,900-$1,950 a ton, about $250 more than with local coal. Electricity accounts for almost 40 percent of smelting costs. Building a plant in Iran depends in part on nuclear negotiations between it and six world powers. The talks could lead to an easing of sanctions on the central Asian nation, which the U.S. Energy Information Administration estimates holds the world’s second-largest natural gas reserves. Bhubaneswar, Odisha-based Nalco, which has been forced to idle some capacity at home because of an increase in energy costs, has tried to expand abroad for a decade to boost fuel-supply security. Obstacles in India include coal supply disruption at Nalco’s captive power plant in Odisha, Nalco said. (www.bloomberg.com)

August 12, 2014. Nuclear Power Corporation (NPC) run Rajasthan atomic power station (RAPS) unit 5 on set a world record for continuous operation for 740 days. The 220 MW unit has generated 4,120 million units (MUs) during the continuous operation. It has so far generated 8,525 MUs since it attained commercial operation on February 4, 2010.

The Unit-5 completed 739 days of non-stop power production in 13-56 hours, displacing from the number two slot — the La Salle Power County Nuclear Generating Station at Illinois in the US, Unit-1 of which had run for 739 days without a shutdown. In India, the Tarapur Nuclear Reactor had operated non-stop for 590 days. NPC said there are 436 nuclear power reactors operating in the 31 countries. According to NPC, RAPS unit 5 is planned to be shut down for routine maintenance and inspection on September 6, 2014. (www.business-standard.com)

August 12, 2014. The government is likely to auction mines through international competitive bidding route currently adopted for awarding ultra mega power projects (UMPPs). At present, the Ministry of Power awards UMPPs of 4,000 MW capacity each through international competitive bidding process. Power Finance Corporation is the nodal agency for these UMPPs. It is responsible for acquiring land in cooperation with the state government and receiving all the environment and forest clearances after which the tenders are invited from the bidders. The Power Ministry said the government may adopt the same model for allocation of coal blocks in the future. Power Finance Corporation, Rural Electrification Corporation or Coal India may be the nodal agency for the coal block auctions. The government is of the view that the power project developers in the past have struggled for acquiring land, receiving water supplies, environment and forests clearances etc. The proposal is also aimed at bringing in more transparency in awarding coal blocks. Meanwhile, the government has cancelled auction of three coal blocks -- Jhirki and Jhirki (West) mine, Andal Babuisol and Tokisud-II -- as certain clearances need to be revisited. Of the three blocks, which have total reserves of 500 million tonnes, two are in Jharkhand and one is in West Bengal. (www.business-standard.com)

August 11, 2014. Arunachal Pradesh has sought cooperation from Assam in expediting the execution of 2000-MW Lower Subansiri Hydro-Electric Project, which has been halted since December 2011. State Home Minister Tanga Byaling discussed the issue with Assam Chief Minister Tarun Gogoi. The largest project in the country being executed by the NHPC, had run into rough weather when the work came to a halt in December 2011, when Assam anti-dam activists raised safety related issues even after completion of more than 55 per cent work. Since then, the project is incurring ` 10 crore loss daily. (economictimes.indiatimes.com)

August 11, 2014. Prime Minister (PM) Narendra Modi will dedicate to the nation two hydel power projects in Leh and Kargil in Jammu & Kashmir. Modi would also lay the foundation stone for the first power transmission line from Leh to Kargil and Kargil to Srinagar. The 45 MW Nimoo-Bazgo hydro-electric project is a run-of- the-river scheme to harness the potential of river Indus in the state. The project is designed to generate 239 million units of energy. The Nimoo Bazgo power station is located on river Indus in Leh district of the state and has an installed capacity of 45 MW (3x15 MW). Power Grid Corporation of India is implementing the Leh-Kargil-Srinagar Transmission System for connectivity with Northern Region Grid for meeting demands of the Ladakh region. (www.business-standard.com)

August 10, 2014. The Odisha government has taken exception to the Centre’s proposal to phase out four old thermal units of NTPC Ltd with combined capacity of 250 MW at its Talcher Thermal power station (TTPS). The retirement of these four units, each with capacity of 62.5 MW, would mean a loss of 250 MW to Odisha since the entire power generated by NTPC's TTPS is supplied to state owned bulk power purchaser Gridco as per a power purchase agreement (PPA). The four units were identified to be phased out since they are old units commissioned during 1967-69. (www.business-standard.com)

August 11, 2014. As many as 29 hydro power projects with an overall capacity of 10,000 MW are awaiting appraisal from the Central Water Commission (CWC), the government said. As per the existing guidelines of CWC for multipurpose projects, appraisals are to be completed within 6 months for the states where the Central Design Organisation (CDO) exists. It is 12 months for those states where CDO does not exist. Appropriate compliance of observations issued on different aspects have to be complied with by the concerned project developer. Ten projects aggregating an installed capacity of 1159.5 MW are multipurpose water resource projects having both irrigation and power component, Power Minister Piyush Goyal said. He said that 19 hydel projects of 9430 MW capacity have only power component. Total land which is proposed to be irrigated by the 10 multipurpose water resource projects is 11,76,961 hectares. Detailed reports of hydro power projects with capital expenditure of more than ` 1,000 crore are submitted to Central Electricity Authority (CEA) for concurrence. (www.business-standard.com)

August 9, 2014. Electricity regulator CERC has said that the first 660 MW unit of Reliance Power's 3,960 MW Sasan project could not achieve its "full load" in March 2013 and rejected its plea to appoint an independent technical committee to look into the readiness of that unit. Reliance Power said it would take appropriate legal steps including filing an appeal in the Tribunal. The latest order follows another Central Electricity Regulatory Commission (CERC) directive passed in June last year, which was challenged by Reliance Power in the Appellate Tribunal for Electricity. The tribunal then directed the regulator to pass a fresh order on the matter. (www.business-standard.com)

August 7, 2014. Chinese equipment has been used for 34 thermal power projects having a total generation capacity of 24,749 MW in more than three years, the government said. Imports of two hydro electric projects aggregating to 100 MW capacity have been contracted for benefits in 12^th Plan, Minister of State for Power Piyush Goyal said. According to the Minister, Bharat Heavy Electricals Ltd (BHEL) is fully capable of meeting the requirements of main plant equipment for power projects. (economictimes.indiatimes.com)

August 7, 2014. Uttar Pradesh (UP) Chief Minister (CM) Akhilesh Yadav ordered expediting the construction of three thermal power plants, totalling almost 5,000 MW. The projects — Lalitpur (1,980 MW), Bara (1,980 MW) and Anpara D (1000 MW) — are expected to start generation from next year. The Lalitpur and Bara projects in Allahabad are being developed by Bajaj Hindusthan and Jaypee Associates, respectively. The Anpara D project in Sonebhadra is being developed by UP Rajya Vidyut Utpadan Nigam. The state would get energy generated from the Lalitpur project, while its share would be 1,782 MW from Bara. The state has been grappling with a summer power shortage of 3,000 MW. UP Power Corporation Limited (UPPCL) gets power from state-owned thermal and hydro electric plants and from government and private sector plants. The power production capacity in Uttar Pradesh stands at 8,250 MW. UPPCL had lost ` 25,000 crore due to rampant pilferage. The aggregate technical and commercial (AT&C) losses in Uttar Pradesh were 30 per cent during 2013-14. AT&C losses are the sum of technical losses, commercial losses and shortage due to non-realisation of the billed amount. It also includes power theft and losses during transmission and distribution of power. UPPCL has undertaken a drive against power theft. So far, 1.3 million new connections have been given across UP. (www.business-standard.com)

August 7, 2014. Prime Minister Narendra Modi is set to go on a power trip to dedicate commissioned projects and lay foundation stone for several more ahead of crucial state assembly elections. State-run companies such as NTPC, Power Grid Corporation of India and NHPC have identified milestones of their projects to host Modi in poll-bound states of Maharashtra, Haryana, Jharkhand and Jammu & Kashmir. Modi will visit Jammu & Kashmir, Jharkhand and Maharashtra to launch projects of Power Grid and NHPC, while NTPC is preparing the stage for inviting him to dedicate its Mouda power project in Maharashtra's Nagpur district. Among other aspects, he highlighted reforms in the power sector and rural electrification. The BJP, the first political party to create an energy cell, had also promised to increase energy production in its election manifesto. Modi will dedicate two of NHPC's hydropower stations in Ladakh to the nation. He will also lay the foundation-stone for an electricity transmission line between Leh and Kargil. In Jharkhand, the Prime Minister will dedicate a newly commissioned transmission line between Ranchi and Sipat. (economictimes.indiatimes.com)

August 7, 2014. All power plants which have completed 25 years of operations will be replaced with modern and environment-friendly ones to enhance production capacity, Power Minister Piyush Goyal said. He said the Centre has framed a guideline to replace all old power plants in a phased manner as their production capacity has slowed down. Goyal said presently power situation in the country was not good but it was inherited from the previous government as the NDA government has taken charge hardly over two months ago. He said 100 per cent Foreign Direct Investment is allowed in power sector and the government would welcome more funds to be invested in that sector. Goyal said the Central Electricity Authority has received detailed project reports of 117 hydro schemes aggregating installed capacity of 55,900 MW since 2002-03. Out of these, 71 schemes aggregating to 38,740 MW were concurred and the Detailed Project Reports of 27 of hydro schemes with an aggregate installed capacity of 7,730 MW have been returned to the project authorities for re-submission after compliance of various observations of CEA, Central Water Commission, Geological Survey of India and other appraising agencies. (economictimes.indiatimes.com)

August 7, 2014. Gas-based plants in India are not viable because there is not enough gas in the country and Naptha-based plants produce costly energy, government said blaming inadequate planning for the situation. Power Minister Piyush Goyal informed that power crisis in the country is a situation which he has "inherited" and is not the doing of a 67-day old Modi government. Goyal said gas-based plants are not viable because there is not enough gas in India. Goyal said Kerala has some gas-based plants and it is "very difficult" to imagine how a government could subsidise power from the plants which are set up without assurance from the government. He said the Centre is sympathetic to the fact that these assets have come up and see if we can find out a suitable mechanism to support these plants. Responding to a question on Koodankulam power plant, he said there has been a lot of debate on this issue as to whether the states which did not allow nuclear power plants to come up in their states, should be the beneficiary of nuclear power generated in another state. (economictimes.indiatimes.com)

August 6, 2014. The power ministry plans to create a fund to provide long-term finances to hydropower developers, and aims to play an active role in resolving state level sues that are blocking such projects. However, the new government is working in tandem as a team and we are hopeful to resolve pending issues to give conducive environment to hydropower sector," power, coal and renewable energy minister Piyush Goyal said. He said one of his first projects Prime Minister Narendra Modi inaugurated was the 240 MW Uri-II project, demonstrating his government's commitment towards hydropower. Modi is expected to inaugurate one more hydroelectric project at Ladakh. India has a potential to build 1,48,000 MW of hydropower generation capacity. However, India could add only 5,400 MW of capacity during 11^th Five Year Plan against its target to commission 16,500 MW of projects, partly due to procedural hurdles and partly because of faulty planning. India has around 36,000 MW of installed hydropower capacity. About 13,000 mw of additional capacity is under construction. Goyal said India can surpass its target of generating 15 per cent of its energy from renewable sources by 2020 by promoting hydropower. (economictimes.indiatimes.com)

 [INTERNATIONAL: OIL & GAS]

August 11, 2014. Blackstone Group LP is in advanced talks to acquire Royal Dutch Shell Plc’s 50 percent stake in a shale-gas field in Louisiana. Blackstone would pay about $1.2 billion for Shell’s half-interest in the Haynesville formation. The deal would follow a parade of gas-acreage sales by oil companies including Shell and Apache Corp to investors as they trim holdings amassed when natural-gas prices were higher. The New York-based PE firm would buy the stake in a joint venture that owns more than 350,000 acres in the Haynesville Shale formation in northern Louisiana and East Texas. Shell, based in The Hague, struck a deal to explore the field in 2007 in partnership with Encana Corp. Blackstone, which has bankrolled refineries and off-shore drilling projects, avoided investing in gas, when prices rose to more $13 per million British thermal units (Btu). It has recently gathered positions in the Marcellus gas formation in Pennsylvania. Gas futures recently traded for about $4 per million Btu. Blackstone’s holdings include a plant in Louisiana that it’s building with Cheniere Energy Inc, through a venture called Cheniere Energy Partners LP, to export liquefied natural gas. The facility, the first to win government approval to export from the Gulf Coast, is scheduled to come on line in 2016. (www.bloomberg.com)

August 10, 2014. President Vladimir Putin lauded Russia’s “old and reliable partner” Exxon Mobil Corp as he gave the command for the U.S. energy company and ally OAO Rosneft to begin drilling a $700 million Arctic Ocean oil well. Putin, Rosneft Chief Executive officer Igor Sechin and Exxon’s Russia head Glenn Waller, undeterred by the crisis in U.S.-Russian relations, together welcomed the start of the country’s northernmost well. It’s the first step in a quest for new energy resources to help maintain oil production near a post-Soviet high of more than 10 million barrels a day. The European Union imposed a third round of sanctions, restricting the export of equipment used for offshore oil production to Russia after its relations with Europe and the U.S. deteriorated to the lowest point since the Cold War over the conflict in Ukraine. That hasn’t stopped Exxon, the world’s largest energy company, because the contract to hire the rig was signed before the measures were announced. The U.S. also separately sanctioned Russian energy companies Rosneft and OAO Novatek. The partners plan to drill the Universitetskaya prospect after more than two years of planning. Exxon, which reported a drop in output to a five-year low in the second quarter, isn’t the only western company involved. BP Plc, the U.K. oil company, has an interest through its 20 percent stake in Rosneft, whose CEO Sechin is subject to sanctions. Universitetskaya is the first of as many as 40 offshore wells Rosneft plans by 2018 to test the potential of the unexplored Arctic Ocean. The geological structure targeted by the drilling is roughly the size of the city of Moscow and may contain as many as 9 billion barrels of oil, according to Rosneft. (www.bloomberg.com)

August 9, 2014. Abu Dhabi National Energy Co (TAQA), the state-owned oil explorer and power supplier, has suspended its activity at the Atrush Block in Kurdistan due to the instability in the region, the company said. The Atrush Block is expected to initially produce approximately 30,000 barrels of oil per day (bpd) with first oil expected by early 2015. The company said it remained committed to oil and gas exploration of the field and still expected production to start by 2015. (www.arabianbusiness.com)

August 8, 2014. Pakistan-focused Oil & Gas Development Company Ltd (OGDCL) reported that its Pasakh Deep Well No.4, located in the Hyderabad district of Sindh Province, has discovered gas and condensate. The development well was drilled to a depth of 11,350 feet, targeting the hydrocarbon potential of massive sands of the Lower Goru Formation. The zone was tested and flowed at 14 million cubic feet of gas per day with 125 barrels per day of condensate on a 36/64-inch choke, the firm said. (www.rigzone.com)

August 8, 2014. Thailand's PTT Exploration and Production Pcl (PTTEP) said its subsidiary has signed a production sharing contract with Myanmar Oil and Gas Enterprise (MOGE) for onshore exploration and production rights of MOGE 3 block. Its wholly-owned unit PTTEP SA plans to conduct seismic surveys and drilling campaign of four exploration wells for the first three years with a minimum investment of about $72 million, the Thai firm said. MOGE 3 block covers 1,217 sq km and is located in central Myanmar, adjacent to the west of the Irrawaddy River. Apart from MOGE 3, PTTEP has invested in six petroleum exploration blocks and its three production fields – Yadana, Yetagun and Zawtika – contributed output of about 75,000 barrels of oil equivalent per day, or 20 percent of the company's production, the company said. (www.rigzone.com)

August 7, 2014. Mexico’s vote on rules for the end of its 76-year state-oil monopoly couldn’t come at a better time for global energy companies from Exxon Mobil Corp to Royal Dutch Shell Plc. With reserves holding $1.3 trillion of crude, Mexico offers a new opportunity for deep-pocketed producers as well as pipeline and power companies to try and mimic an energy revolution that has spurred U.S. oil output to a 26-year high and pushed Canadian production to records. New access to Mexico comes amid unrest in some African oil nations and sanctions that threaten to strangle Russian output, places where some oil companies have invested heavily in production. An injection of foreign investment could help double daily output to 5 million barrels a day, a figure that would rank Mexico the world’s fourth-largest producer. It would join a North American energy boom that has reignited investment in manufacturing and reduced trade deficits as the U.S. seeks to become free of oil and natural gas imports and even begins to contemplate exports. Chevron Corp., BP Plc, Total SA, Petroleo Brasileiro SA and Pacific Rubiales Energy Corp. are also among those that may bid for tens of billions of dollars in joint ventures and contracts to help pump oil in a nation with North America’s third-largest reserves. Among the prizes are portions of prolific fields that stretch across the border in the U.S. Gulf of Mexico and Eagle Ford shale formation in south Texas. Shell, BP and national oil companies like China National Petroleum Corp. already have agreements to collaborate with Mexico’s state-owned Petroleos Mexicanos, or Pemex, which may boost their chances for joint ventures. While Mexican President Porfirio Diaz may have lamented more than a century ago that the country was “so far from God, so close to the United States,” the nation’s allure to oil producers may be enhanced by how close it is to U.S. fields that have seen output soar in recent years. (www.bloomberg.com)

August 7, 2014. Energy companies are taking their controversial fracking operations from the land to the sea -- to deep waters off the U.S., South American and African coasts. Cracking rocks underground to allow oil and gas to flow more freely into wells has grown into one of the most lucrative industry practices of the past century. The technique is also widely condemned as a source of groundwater contamination. The question now is how will that debate play out as the equipment moves out into the deep blue. For now, caution from all sides is the operative word. Offshore fracking is a part of a broader industrywide strategy to make billion-dollar deep-sea developments pay off. The practice has been around for two decades yet only in the past few years have advances in technology and vast offshore discoveries combined to make large scale fracking feasible. While fracking is also moving off the coasts of Brazil and Africa, the big play is in the Gulf of Mexico, where wells more than 100 miles from the coastline must traverse water depths of a mile or more and can cost almost $100 million to drill. Those expensive drilling projects are a boon for oil service providers such as Halliburton, Baker Hughes Inc. and Superior Energy Services Inc. Schlumberger Ltd., which provides offshore fracking gear for markets outside the U.S. Gulf, also stands to get new work. And producers such as Chevron Corp., Royal Dutch Shell Plc and BP Plc may reap billions of dollars in extra revenue over time as fracking helps boost crude output. Fracking in the Gulf of Mexico is expected to grow by more than 10 percent over a two year period ending in 2015, said Douglas Stephens, president of pressure pumping at Baker Hughes, which operates about a third of the world’s offshore fracking fleet. Deep-water wells cut through multiple pancaked layers of oil-soaked rock, and each layer must be fracked to get the most oil out -- a task that can take a full day to get to the bottom of the well. Halliburton and others have figured out a way to save time and money by fracking all those layers in one trip down the well, instead of doing each layer separately. The more intense fracking means larger volumes of water, sand and equipment are needed to coax more oil out -- and bigger boats to carry it all. (www.bloomberg.com)

August 6, 2014. Royal Dutch Shell plc reported that its Nigerian subsidiary, Shell Nigeria Exploration and Production Company, has started up oil production from the first well at the Bonga North West deep-water development off the country's coast. The Bonga project, which began producing oil and gas in 2005, was Nigeria's first deep-water development in water depths over 1,000 metres. Bonga North West represents a significant step forward for the project. Oil from the Bonga North West sub-sea facilities is transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility. The Bonga FPSO has been upgraded to handle the additional oil flow from Bonga North West which, at peak production, is expected to contribute 40,000 barrels of oil equivalent per day, helping to maintain the facility's overall output. Four oil producing wells and two water injection wells in the Bonga North West development will be connected to the FPSO, from where oil is loaded onto tankers for shipping around the world. (www.rigzone.com)

 

 

 

August 11, 2014. U.S. refiner Axeon Specialty Products will not buy or accept delivery of any cargoes of disputed Kurdish crude oil for its Paulsboro, New Jersey, refinery, according to the company. The tanker Minerva Joy, loaded with an estimated 300,000 barrels of Kurdish crude at the Turkish port of Dortyol, arrived to Paulsboro as scheduled, but it has not been unloaded and is currently anchored. Several cargoes of Kurdish Shaikan crude have recently reached the United States and Iraq's central government has moved to block independent exports of crude by the Kurdistan Regional Government. Axeon Specialty Products said previously it received a separate cargo of Kurdish Shaikan crude in June. (www.downstreamtoday.com)

August 8, 2014. Plans by Italian oil major Eni to slash its refining business by more than half could squeeze out a quarter of Europe's refining overcapacity, bringing the ailing sector badly needed relief. European nameplate refining capacity is around 15 million barrels per day (bpd) but as demand falls and competition grows analysts say around 1.5-2.0 million bpd of throughput capacity needs to be mothballed by 2018 to balance the market. In July Fitch said failure by Eni to turn around its refining business over the next 12 to 18 months could trigger a downgrade of the Italian group's A+ rating. By converting three of its six domestic plants to storage or bio-refineries and reducing its international exposure, Eni says it will be able to reach cash break even at the end of 2015. (www.downstreamtoday.com)

August 12, 2014. Libya loaded the first oil cargo from the port of Ras Lanuf since it was closed by rebels a year ago, just as the International Energy Agency (IEA) said the North African nation is struggling to find buyers in an oversupplied market. A tanker will soon leave port with 680,000 barrels of crude and head to Italy, the Oil Ministry said. While National Oil Corp plans to double exports, crude traders are more concerned that the additional supply will depress prices than the risk of production being disrupted by further unrest, the IEA said. The increase in Libyan oil exports comes as prices of Brent crude signal that immediate supplies are more than enough to satisfy demand. The grade, used in pricing more than half the world’s oil, fell to a nine-month low of $103.25 a barrel. Front-month Brent contracts have been cheaper than later deliveries since early July, the longest period since 2010 that such a discount, called contango, has been in place. (www.bloomberg.com)

August 12, 2014. Global oil demand growth eased to its weakest since 2012 last quarter, calming world markets amid threats to supplies in the Middle East and North Africa, according to the International Energy Agency (IEA). The IEA cut estimates for oil demand growth this year and next after the annual expansion in fuel consumption slowed to 700,000 barrels a day in the second quarter, the lowest level since early 2012. The resulting supply surplus has meant that Libya, seeking to restore crude exports choked off by political feuding, is struggling to find buyers, the agency said. Logistical constraints in southern Iraq may prove a bigger hurdle to bolstering output than violence in the north, it said.

The agency reduced estimates for global oil demand growth in 2014 by 180,000 barrels a day following a weaker assessment of the world economy by the International Monetary Fund. Consumption will increase by 1 million barrels a day, or 1.1 percent, this year to average 92.7 million a day. While demand growth will rebound next year, the pace will be 90,000 barrels a day slower than previously expected because of lower estimates for China and Russia. Global consumption will expand in 2015 by 1.3 million barrels a day, or 1.4 percent, to 94 million a day. Total demand levels for this year are little changed from last month’s projections, while growth is lower because of upward revisions to consumption data for previous years. Output from OPEC’s 12 members climbed 300,000 barrels a day in July to a five-month high of 30.44 million a day, as Saudi Arabia raised production and supplies recovered in Libya. The Gulf kingdom, OPEC’s biggest member and de facto leader, increased output to 10 million barrels a day, the most since September, the IEA said. Libyan output almost doubled to 430,000 barrels a day. (www.bloomberg.com)

 

August 11, 2014. InterOil Corp, Total SA’s partner in Papua New Guinea, named former BG Group Plc Chief Executive Officer (CEO) Chris Finlayson as chairman to help the company develop a natural gas export project in the Pacific nation. Finlayson has led exploration and production ventures in Russia, Nigeria, Europe and Asia with BG and Royal Dutch Shell Plc, Singapore-based InterOil said. Finlayson joins InterOil as the energy company and Paris-based Total proceed with plans to use supplies from the Elk and Antelope fields to build Papua New Guinea’s second liquefied natural gas development. The proposed project will target customers in China and Japan as the U.S. adds to supply competition in the global LNG market, Finlayson said. A Total and InterOil development in Papua New Guinea would follow Exxon Mobil Corp’s $19 billion LNG project, which started shipments to Asia earlier this year. Oil Search Ltd., Exxon’s partner, acquired part of Elk-Antelope this year. Finlayson said InterOil would be interested in working with competitors in Papua New Guinea to curb costs. (www.bloomberg.com)

August 11, 2014. Ukraine state gas grid Naftogaz said it would continue uninterrupted pumping of Russian gas exports to Europe through its territory even if Ukraine imposes its own sanctions on Russia. Ukraine Prime Minister Arseny Yatseniuk said that parliament would debate sanctions against Russia, which could include bans on Russian gas and sanctions against Russian banks. Russia halted gas supplies to Ukraine in June due to disagreements over pricing, but Russian gas transit through Ukraine to Europe was unaffected. Russian gas accounts for about a third of Europe's gas needs, and about half of that amount passes through Ukraine. Russian gas export monopoly Gazprom is the only company that pumps Russian gas to Europe through Ukraine. Naftogaz said that possible sanctions in the gas sector could "limit or exclude" some companies from the Ukrainian transit market. It did not explain whether the move could affect Gazprom. Naftogaz said that transit of gas via Ukraine could be carried by companies that are not subject to sanctions and that these firms had to sign transit agreements with Ukrainian transit monopoly Ukrtransgaz. (www.rigzone.com)

August 9, 2014. Petroleo Brasileiro SA, the biggest oil producer in deep waters, posted an unexpected profit decline in the second quarter after its fuel imports surged and crude exports fell. Rising Brazilian demand for gasoline and diesel that Petrobras sells at a discount relative to international prices is leading the state-run producer to export less crude and increase refinery output. It cut sales to overseas markets by 14 percent from a year earlier, while the refining boost wasn’t enough to prevent a 56 percent surge in fuel imports. The government has prevented the company from increasing prices enough to erase import losses as it seeks to keep inflation in check. The company’s fuel imports jumped to 407,000 barrels a day in the quarter, from 261,000 a year earlier. Daily crude exports fell to 308,000 barrels from 359,000. (www.bloomberg.com)

August 8, 2014. Blueknight Energy Partners is planning to build a $300 mn, 160-mile pipeline project to serve Eaglebine crude in the US. The project will have an initial capacity of 100,000bpd with an option to expand up to 200,000 bpd in the future. The pipeline, which will connect the East Texas Eaglebine/Woodbine crude oil resource play to Oiltanking Houston crude oil and product terminal on the Houston Ship Channel, will originate in Madison County and run south via Leon, Walker and Houston counties. The pipeline will serve Eaglebine/Woodbine crude oil producers through two origination stations situated near North Zulch and Madisonville. A third station near Roans Prairie is also planned to accommodate future production growth in the area. Construction work on the pipeline will be completed by March 2016. (transportationandstorage.energy-business-review.com)

August 6, 2014. California, home to two-thirds of refining capacity in the western U.S., brought in a record volume of waxy oil by rail from Utah in June as crude imports from Canada and North Dakota slid. The state, the biggest gasoline market in the U.S., received 2,737 barrels a day of oil by rail from Utah in June, almost twice the volume of the previous month and up from nothing a year ago, the state Energy Commission data showed. Canadian oil-by-rail imports dropped 25 percent to 6,669 barrels a day. North Dakota shipments shrank by 34 percent to 4,035. California’s oil-by-rail deliveries are at a seasonal record as refiners in the western U.S., lacking direct pipeline access, use trains to reach surging crude production from shale formations in the center of the country and in Canada. Utah is shipping record volumes of oil by rail as companies use a combination of hydraulic fracturing and horizontal drilling to draw the most waxy oil out of its Uinta Basin since 1987. Ultra Petroleum Inc., a Houston-based independent oil and gas driller that bought $650 million worth of oil-producing assets in the Uinta Basin in northeast Utah, said that “rail capacity is the best option to place our barrels.” The company has agreements for at least 2,000 barrels a day of rail capacity that can expand to 7,500. (www.bloomberg.com)

August 12, 2014. Officials from Indonesia’s outgoing government will recommend capping fuel subsidies in policy advice to President-elect Joko Widodo’s transition team, as the nation grapples with economic harm from the measure. The current system of providing set gasoline prices leaves Indonesia, a net oil importer, economically vulnerable. A spike in prices, such as from Middle East tensions or a slide in the rupiah, can bloat the government’s budget deficit and worsen the country’s trade balance. Failure to scale back the costly system and use the proceeds at least in part to invest in infrastructure would risk Indonesian economic growth slumping below 5 percent in three to five years, Vice Finance Minister Bambang Brodjonegoro said. A revamp must be done before the U.S. Federal Reserve starts raising interest rates, which could put pressure on the rupiah next year, he said. (www.bloomberg.com)

August 8, 2014. Gabon's oil ministry said it had signed seven oil contracts with six companies as part of an offshore licensing round expected to attract at least $1.1 billion in investment to the sector. The Central African country hopes that this tender, its tenth, will help it reverse a chronic decline in output due to maturing onshore fields. The former OPEC member currently pumps about 230,000 barrels per day, down from a peak of close to 400,000 bpd in the 1990s. Drilling deep offshore the Gulf of Guinea is expensive but potentially very rewarding for oil firms, given the similar geology to oil-rich Brazil, where billions of barrels of oil have been discovered. The companies that have signed contracts are: Impact, Repsol, Marathon, Noble Energy, Petronas and Woodside. (www.rigzone.com)

August 7, 2014. China has halved the quantum of shale gas it expects to produce by 2020 after early exploration efforts to unlock the unconventional fuel proved challenging, according to an industry website and a government source. China, believed to hold the world's largest technically recoverable shale resources, is hoping to replicate the shale boom that has transformed the energy landscape of the United States. About four years of early evaluations and drilling have so far yielded one large find - Fuling field - in the most prospective gas province of southwest Sichuan, but experts say the Fuling success is hard to repeat due to complex geology and high cost of production. Citing Wu Xinxiong, the head of China's National Energy Administration, industry website www.cpnn.com.cn reported that China aims to pump 30 billion cubic metres (bcm) of shale gas by 2020, versus an earlier goal of 60-80 bcm mapped out in 2012. The revision, which is pending government finalization, would be negative for oil service sector companies that were hoping to cash in on the major drilling activity needed to reach the earlier target. It also means China would continue to focus on tapping easier-to-unlock gas resources, such as tight gas, which the Chinese oil firms are more experienced in, to reach a government-set total gas supply target of up to 420 bcm by 2020. China's tight gas output may hit 80 bcm by 2020, according to forecasts by the China Academy of Engineering, doubling its estimated output of 40 bcm in 2013. The new 30 bcm shale gas target would mostly be contributed by the country's top two state oil firms, PetroChina and Sinopec Corp, experts have said, as they hold the majority of the country's oil and gas blocks, as well as the expertise. The government's efforts, led by the Ministry of Land and Resources, to open up the shale gas sector to independent players have had small success, as the blocks the ministry has to offer are of poorer quality and would entail hefty exploration costs. (www.rigzone.com)

August 7, 2014. Egypt will pay back about $6 billion it owes to energy companies, including with proceeds from a bond sale that’s to take place “very soon,” Finance Minister Hany Kadry Dimian said. Dimian said the government will pay for part of the arrears with savings from a recent reduction in fuel subsidies. Egypt will also issue an international bond and is seeking a guarantee from a country with a high credit rating for the sale, he said. (www.bloomberg.com)

August 7, 2014. Venezuela's government has confirmed that it is considering the sale of its oil refining and distribution network in the U.S. amid a worsening economic crisis. Analysts said the proposed sale reflects the socialist government's urgent cash shortage. The state-owned oil company Petroleos de Venezuela SA signaled its interest in a finding a buyer for U.S.-based Citgo Petroleum Corp. in a bond prospectus. Oil Minister Rafael Ramirez said Venezuela will sell Citgo if the price is right, but added that the government is not in a hurry to make a deal. (www.downstreamtoday.com)

August 6, 2014. ConocoPhillips, the third-largest U.S. energy company, agreed to study non-conventional oil and natural gas formations in southern Chile with state-owned energy company Empresa Nacional del Petroleo (Enap). Houston-based ConocoPhillips will carry out geophysical and geological studies of the Patagonian region where Enap produces the South American country’s only oil and gas. The Chilean company seeks to boost oil and gas output in Magallanes where it first produced oil and gas in 1945. Chile, the world’s largest copper producer, imports more than 90 percent of its fossil fuel needs. With a focus on new drilling technology to tap tight-gas deposits, Enap spent more than $100 million exploring for oil and gas in 2013, the most in 15 years, according to the company. Santiago-based Geopark Ltd is also stepping up exploration efforts in the region. (www.bloomberg.com)

August 6, 2014. Japan, dependent on imports for almost all its fuel, is pursuing natural gas projects and energy purchases in Russia despite new sanctions designed to punish Vladimir Putin and his associates. Japan won’t be keen on deeper sanctions that would curb its access to gas, oil and coal from Russia. Japan buys about 65 percent of the liquefied natural gas coming from Russia’s Sakhalin-2, a 9.6 million metric ton-a-year project. Neither country will break the contracts based on sanctions. Japan will freeze assets of individuals or groups involved in increasing instability in Ukraine and in the annexation of Crimea. Russia’s foreign ministry said that Japan’s new sanctions are “unfriendly, shortsighted” and will hurt bilateral relations. Japan continues to view Russia as an important, resource-rich country, the Ministry of Economy, Trade and Industry said. Russia’s Sakhalin facility near Japan’s northern island of Hokkaido provides almost 9.5 percent of Japan’s gas, according to Royal Dutch Shell Plc. Russian President Putin’s continued support for separatists in eastern Ukraine has prompted the U.S. and European Union to impose restrictions on the operations of some banks and energy companies in an effort to isolate the Russian economy. (www.bloomberg.com)

 [INTERNATIONAL: POWER]

August 11, 2014. Glacier Power Ltd., a subsidiary of TransAlta Corporation, under the Hydro and Electric Energy Act, has applied for a time extension to complete the 100 MW Dunvegan hydro power plant near Dunvegan, Alberta. Glacier Power Ltd. received approval for the power plant in 2009 with a condition to complete construction by May 30, 2014. Glacier Power Ltd. has now requested that the completion date be extended to May 30, 2023. Written submissions are due September 5, 2014. (hydro.energy-business-review.com)

August 10, 2014. South Korea groups Hyundai and Doosan have suspended construction of a 1,400 MW Libyan power plant in the town of Sirte because of security concerns. In 2007 Hyundai Engineering & Construction Co Ltd and Doosan Engineering won the 1.8 billion dinar ($1.5 billion) contract to build and operate the power plant, along with U.S.-based Bechtel, France's Geocean and Turkey's Gama Enerji. Bechtel is still operating in Sirte but without American staff, while 350 workers belonging to Gama Enerji have returned to Sirte after a brief break. Geocean has already left after its contract ended. The Gulf power plant was scheduled to start operating in 2014 with four oil-fired units of 350 MW each. But construction has been held up by the war that topped Gaddafi in 2011 and then by fighting between a number of armed groups in the three years since then. Only one 175 MW unit has started production so far. (in.reuters.com)

August 8, 2014. Iran's Power Generation Transmission and Distribution Management Company said that hydroelectric power plants are not able to operate at full capacity due to water deficit. A plan has been developed to use wastewater for power generation. Iran's hydroelectric power generation capacity has increased 9.5 percent in the current year. Iran's hydroelectric power plants have generated 5,544 billion kilowatt hours of electricity since the beginning of the current Iranian calendar year. Based on the annual report of Iran's Energy Ministry, the country's hydroelectric power generation capacity was 10.5 GW in the past year. Power generation capacity in Iran has grown by 7 percent annually during the past 10 years. The figure has averaged 3.5 percent in the world. Iran is currently the biggest electricity producer in the Middle East. Iran's total electricity generation currently stands at 70 GW. Iran currently trades power with Turkey,Armenia, Turkmenistan, Azerbaijan,Pakistan, Afghanistan, Syria, and Iraq. Iran seeks to become a major regional exporter of electricity and has attracted more than $1.1 billion in investments for the construction of three new power plants. (www.zawya.com)

August 6, 2014. As many as 11 international power giants have submitted their requests for prequalification to develop Oman's biggest gas-fired power plant, to be built in two locations, with a combined generation capacity of 2,600 MW. The Oman Power and Water Procurement (OPWP) floated a request for qualification by mid-June, giving potential developers to submit their proposals up to August 3 for developing the mega power plant within the main interconnected system region. As per the plan, part of the capacity will go on stream by 2017, while the full project will be ready by 2018. The project is to meet the growing demand for electricity, mostly driven by a surging population in the country. The proposed project will have a capital expenditure of $1.5 billion, OPWP said. (www.zawya.com)

August 11, 2014. The World Bank has approved a $500 mn loan to help Vietnam build and improve electricity transmission throughout the country. The project requires an investment of $731.25 mn, of which $500 mn will be funded by the International Bank for Reconstruction and Development, the World Bank's lending arm for middle-income countries. The Socialist Republic of Vietnam will finance the remaining $231.25 mn of investment. Under the project, more than 1,000km of transmission lines and substations at voltage levels of 220 and 500 kilovolts will be built. The World Bank said the funding will make up 15% of Vietnam's transmission network growth in the 2015 to 2020 period. (utilitiesnetwork.energy-business-review.com)

August 8, 2014. Plentiful supplies of coal used to generate electricity are poised to cap prices for the fuel near the lowest in five years, even as demand rises heading into the Northern Hemisphere winter. Power-station coal at the port of Newcastle in Australia, the world’s second-biggest exporter, will be little changed in the three-month period starting Oct. 1, according to UBS AG and Bank of America Corp., even as utilities in Asia buy more toward the end of the year. Prices gained 8.1 percent in the fourth quarter of 2013 and 7.6 percent in the same period of 2012. Colombia, the world’s fourth-largest shipper, is seeking to boost output to a record in 2014 just as rising production in China, the biggest consumer, limits gains in export prices. The supply glut that’s driven coal to the lowest since 2009 will more than double next year, according to Morgan Stanley. Indonesia, the world’s biggest exporter of thermal coal, is projected to increase shipments by 2 percent to 420 million tons this year, Australia’s Bureau of Resources and Energy Economics said. Output from Colombia, Latin America’s largest producer, may climb as much as 12.8 percent in 2014 to a record 97 million, the nation’s deputy mining minister, Cesar Diaz. Colombia is increasing output as companies such as Glencore Plc, Drummond Co. and BHP Billiton Ltd. reduce the number of work days lost to strikes, according to Diaz. The nation produced 86 million tons last year. Shipments from Australia are forecast to rise by 2 million tons this year to 190 million, according to the Bureau of Resources and Energy Economics. Sales are projected to climb 3.7 percent to 197 million in 2015. The benchmark price for China’s spot power-station coal at the port of Qinhuangdao was at 470-480 yuan ($76-$77) a ton as of Aug. 3, the lowest since September 2007, according to data from China Coal Transport and Distribution Association. (www.bloomberg.com)

August 6, 2014. A new dataset by Northeast Group has revealed that electricity transmission and distribution infrastructure annual investment will reach $198 bn by 2024. According to the report, the world will need to invest between $140.2 bn to $170.5 bn a year on traditional transmission and distribution (T&D) infrastructure to meet electricity demand. A further $8.0 bn to $27.3 bn will be invested in smart grid infrastructure to improve the efficiency and reliability of T&D grids. Distribution automation investment is expected to account for 5.4% of total T&D spending in 2014. India will beat China to become the largest amount of traditional T&D investment country by 2024. (utilitiesnetwork.energy-business-review.com)

August 6, 2014. World Bank President Jim Yong Kim indicated that African “demand for access to power” may lead the lender to support coal projects on the world’s poorest continent. Africa is experiencing an “almost energy apartheid,” where two-thirds of the population lacks access to power, Kim said. World Bank funds will be invested in clean energy as much as possible, with a focus on hydroelectric, solar, geothermal and wind. It will “try to avoid” investing in coal, Kim said. The Washington-based lender said it’s committing $5 billion to boost electricity generation in Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania. The proposition would force the lender and its biggest shareholder, the U.S., to make an exception in their clean-energy commitments and concede that burning coal can be the fastest route out of poverty. The International Monetary Fund said it estimates sub-Saharan Africa’s economies will grow 5.4 percent this year and 5.8 percent in 2015, compared with 1.7 percent and 3 percent in the U.S. for the same two years respectively. Energy shortages are a major obstacle to more robust growth, with about 70 percent of the population lacking electricity, according to the International Energy Agency. U.S. President Barack Obama’s administration has proposed a Power Africa program, which still requires action by Congress, a five-year $7 billion plan to double access to power in Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania. (www.bloomberg.com)

 [RENEWABLE ENERGY / CLIMATE CHANGE TRENDS]

August 12, 2014. Vikram Solar Pvt., an Indian panel maker, won a contract to build the South Asian nation’s first floating solar power plant on a lake in eastern India. The 15-kilowatt pilot plant will be constructed by December on top of a 1,400-square-foot (130-square-meter) platform anchored to the lakebed next to Kolkata’s New Town Eco Park, said S.P. Gon Chaudhuri, a member of the governing body of the West Bengal Renewable Energy Development Agency. The project will study whether situating a solar installation above water helps to boost generation by cooling the panels, he said. Excessive heat can reduce the efficiency of solar modules. The project will also examine the effects of corrosion and evaporation from the lake, he said. The Ministry of New and Renewable Energy is financing the project, which will cost about ` 2 million ($32,700) to build and require another 2 million rupees for research, Chaudhuri said. The 20,000 kilowatt-hours of electricity generated annually will be sold to the grid at ` 8.9 a unit, he said. (www.bloomberg.com)

August 12, 2014. The government plans to rapidly accelerate wind energy generation, adding an ambitious 10,000 MW every year, or five times the total new capacity that came up in the last fiscal, as the Modi government takes steps to reduce India's dependence on costly energy imports. Wind energy, which had been overshadowed by solar projects in recent years, got a big boost as the government has restored key tax incentives that had helped India emerge as one of the top countries in the world in generating electricity from wind. The government feels that tax incentives coupled with conducive environment will rapidly accelerate wind energy. According to Indian Wind Turbine Manufacturers Association (IWTMA) proposed target is achievable as the country has capacity to manufacture close to 9,500 MW of wind turbines and it can be expanded in short period. IWTMA said Indian wind turbine makers with access to best technologies and services are globally competitive but they are unable to offer cheaper finance like Chinese firms. (economictimes.indiatimes.com)

August 12, 2014. The domestic demand for grid connected solar photo-voltaic power will be moulded by the extent of fulfilment of renewable purchase obligations (RPOs) by state distribution companies, according to a recent report. A report by ICRA said that discoms will have to buy the obligated share of renewable power determined by the State Electricity Regulatory Commissions (SERCs) in order to ensure that solar power producers are not at financial risk. Under the National Tariff Policy 2006, state distribution companies have to buy renewable power or Renewable Energy Certificates (RECs) to meet the obligations. In case of solar power, the RPO has been fixed at 0.25 per cent in 2012, which is to be increased to three per cent by 2022. To fulfil the solar RPO requirements by the end of FY15, solar capacity addition of over 2,500 MW would be required in the current financial year to touch 5291 MW, the report said. Domestic solar PV installations crossed the 2,600 MW mark by the end of FY14, with 1,100 MW of projects being commissioned during that fiscal. (economictimes.indiatimes.com)

August 11, 2014. Minister of State for Power, Coal & New and Renewable Energy Piyush Goyal said the cost of land in renewable energy projects such as wind farms and solar farms/power plants is of the order of 3 to 5 per cent of the total project cost. The minister said that the government has taken various initiatives including setting up of solar parks on the banks of canals, ultra mega solar power projects, wind power projects for which the states are encouraged to use land including wastelands depending on availability and resources. Goyal said that a total of over 53.22 billion units have been produced during 2013-14 from non-conventional sources of energy in the country which includes rural areas. (economictimes.indiatimes.com)

August 9, 2014. Regretting that the responses of countries were not adequate to combat climate change issue, Environment Minister Prakash Javadekar said time has come to "incentivise" action. The Minister said India has taken a number of steps on voluntary basis in pursuance of a sustainable development strategy. India has formulated its national climate change action plan with eight missions which are being strengthened, he said. Javadekar also said that the country has designed a low carbon strategy for growth and has set up ambitious renewable energy targets. Noting that the government under Narendra Modi is committed to the cause for a clean and green environment, he said the Union Budget this year has underscored initiatives to tackle climate change. Clean energy cess on coal has been increased from ` 50 per ton to ` 100 to reduce more revenue for clean energy and cross subsidising solar and other renewable energy. A sum of ` 100 crore has been allocated for national adaption fund for climate change while ` 100 crore has been allocated for new ultra modern super critical coal based thermal power technology, he said. (www.newindianexpress.com)

August 7, 2014. Power solutions provider Jakson Group said it has bagged a contract from Delhi Metro Railways Corporation (DMRC) to install roof top solar power plants that will help DMRC meet its operational requirements such as lighting of the stations. Under the deal, the company will set up roof top solar plants with an aggregate power capacity of 250 Kwp (kilowatts peak) at DMRC's three premises -- Pragati Maidan Metro Station, Anand Vihar Metro Station and Metro Enclave, Saket. The power generated by these plants would be used for DMRC's operational requirements including station lighting and other loads, Jakson Group said. Jakson Power Solutions is targeting to commission the three projects within next six months. (economictimes.indiatimes.com)

August 7, 2014. A group of scientists from South Korea have converted used-cigarette butts into a high-performing material that could be integrated into computers, handheld devices, electrical vehicles and wind turbines to store energy. The researchers have demonstrated the material's superior performance compared to commercially available carbon, graphene and carbon nanotubes. It is hoped the material can be used to coat the electrodes of super capacitors — electrochemical components that can store extremely large amounts of electrical energy — whilst also offering a solution to the growing environmental problem caused by used-cigarette filters. It is estimated that as many as 5.6 trillion used-cigarettes or 766,571 metric tons are deposited into the environment worldwide every year. In their study, the researchers demonstrated that the cellulose acetate fibres that cigarette filters are mostly composed of could be transformed into a carbon-based material using a simple, one-step burning technique called pyrolysis. As a result of this burning process, the resulting carbon-based material contained a number of tiny pores, increasing its performance as a super capacitive material. (economictimes.indiatimes.com)

August 6, 2014. PTC India Financial Services (PFS) has approved loans of over ` 1,000 crore to power projects, bulk of them in renewable energy space. PFS approved project lending of a little over ` 1,000 crore to established players with proven track record. Bulk of the projects are in renewable energy space. Loan of ` 540 crore has been sanctioned for solar projects and ` 265 crore for wind projects. Hydroelectric projects have got ` 140 crore from PFS and capital thermal power plants another ` 150 crore. In one of the projects in the solar space, PFS is the sole lender and is lending ` 300 crore. The 50 MW project in Madhya Pradesh is a joint venture between a leading Public sector company, NEEPCO and a private player chosen after bidding. The project is likely to come up by January 2015. With NDA government's focus on renewable energy, a number of projects are beginning to take shape or are in the process of being constructed. There is keen interest in renewable energy projects from both public and private sector companies. India, with abundant sunshine through the year, long coastline ideal for wind power and water resources, is ideal for renewable energy. While bulk of India's current power generation is coal based, which is both polluting and a finite source, renewable energy promises to significantly cut down pollution levels. (economictimes.indiatimes.com)

August 6, 2014. Renewable energy and energy security would be the focus of the two-day annual India-US Energy Summit to be held next month. Noting that energy security is critical for both the US and India, Dr R K Pachauri, president of The Energy and Resources Institute North America (TERI NA), said the two countries must work together, both in energy security as well as on policy fronts, so as to bring in some positive changes. The two-day event from September 30 being organised by TERI and Yale University is likely to be attended by top officials and energy experts from both the countries. Prime Minister Narendra Modi, who is expected to be in the city to meet President Barack Obama, has been invited to address the meeting in energy, a subject close to his heart. According to the TERI, the focus of the Summit will be on bilateral cooperation in the energy sector and related areas. (economictimes.indiatimes.com)

August 12, 2014. New research shows that lithium batteries can explode and burn even more violently than previously thought, raising questions about their use and shipment on passenger airplanes. Because many airlines are replacing paper charts with laptops and tablet computers, the U.S. Federal Aviation Administration conducted tests on what would happen if one of their rechargeable lithium-ion battery cells ignited. In one test, the cockpit filled with smoke thick enough to obscure instruments and vision out the window for about five minutes.

The findings raise an even bigger issue beyond laptops as makers of the rechargeable cells can ship the products in bulk in the cargo areas of passenger airplanes. One test found the batteries may blow up, which might render airplane fire-suppression systems ineffective. A working group of officials from international regulatory agencies, airlines, unions and battery manufacturers is scheduled to meet Sept. 9 in Cologne, Germany, to address the new research and determine whether additional restrictions are needed. (www.bloomberg.com)

August 11, 2014. Sasol Ltd, the world’s largest producer of gasoline from coal, said full-year profit probably rose as much as 17 percent as an increase in synthetic-fuels output exceeded its forecast and the rand weakened. Earnings per share excluding one-time items climbed 11 percent to 17 percent in the 12 months ended June 30 from 32.62 rand ($3.06) a year earlier, the Johannesburg-based company said. Synfuels production rose 2 percent to 7.6 million metric tons, compared with a forecast of 7.3 million to 7.5 million tons. So-called normalized fixed-cash costs were “slightly below market inflation,” it said. (www.bloomberg.com)

August 11, 2014. Japan Bank for International Cooperation (JBIC) and Mizuho Bank are among the lenders that will provide about 370 million pounds ($621 million) in funds for a U.K. offshore wind power project. The financing documents were signed between the lenders and WMR JV Investco Ltd., according to the Marubeni Corp-based Marubeni and the U.K. Green Investment Bank (GIB) jointly own Investco. The loans are for the 210 MW Westermost Rough wind project off the Yorkshire coast. Marubeni and GIB acquired a 50 percent stake in the project from a unit of Dong Energy A/S of Denmark. The wind farm is under construction and due to start operations in 2015, Marubeni said. (www.bloomberg.com)

August 11, 2014. Renewable-energy investment in Mexico is on pace this year to exceed the nation’s 2010 record of $2.4 billion. Investment in the first half of 2014 was about $1.3 billion, compared with $1.6 billion for all of last year, the London-based research firm said. Spending on wind and solar projects is expected to see a “significant” increase over the next two years. Mexico and the nations of Central America are estimated to install about 1 GW of wind capacity this year, topping a record 757 MW in 2012. That figure may leap to 1.3 GW in both 2015 and in 2016. Solar installations will be about 193 MW this year, and are expected to increase to 355 MW next year and 456 MW in 2016. (www.bloomberg.com)

August 11, 2014. Vattenfall AB is about to build a 11 billion-kronor ($1.6 billion) wind farm in the German North Sea to beat Chancellor Angela Merkel’s planned changes to subsidies. Vattenfall and municipal utility Stadtwerke Muenchen GmbH will start construction next year on the 288 MW Sandbank project, it said. The plant will use 72 of Siemens AG’s 4 MW turbines and qualify for renewable subsidies before power auctions start two years later. Merkel has said the switch to renewable energy from nuclear and conventional sources, or Energiewende, is her most important project. Her government, which targets 6.5 GW of offshore wind capacity by 2020, this year agreed to slow planned cuts for new offshore wind farms in 2018 and 2019 and will permit more sea-based turbines. (www.bloomberg.com)

August 8, 2014. China and Brazil are looking for ways to redirect a global climate debate, which they say unfairly accuses developing nations of delaying limits on fossil-fuel pollution. China wants to blitz attendees at United Nations-led climate talks with pamphlets touting the clean-energy gains made by the world’s largest emitter of carbon dioxide. Brazil wants more recognition for slowing destruction of the planet’s biggest rainforest. (www.bloomberg.com)

August 8, 2014. SolarCity Corp, the biggest U.S. solar company by market value, increased its loss in the second quarter by investing in the installation of 107 MW of new rooftop-power plants. The net loss in the second quarter increased to $47.7 million, or 52 cents a share, from $39.5 million, or 52 cents, a year earlier, San Mateo, California-based SolarCity said. Excluding some items, a loss of 96 cents was smaller than the expected loss of 99 cents, the average of 10 estimates. Sales rose to $61.3 million from $37.9 million. The company is expected to lose more than $1 billion over the next three years through 2016 on rooftop power projects for homes and commercial buildings. Customers sign decades-long contracts to buy the output, and SolarCity is pouring the revenue into new installations. SolarCity had 141,034 customers at the end of the second quarter. The company installed 82 MW of panels in the first quarter. It acquired a solar manufacturer, Silevo Inc., to ensure a steady supply of panels as its chairman, billionaire Elon Musk, predicted annual demand would eventually reach “tens of gigawatts.” (www.bloomberg.com)

August 8, 2014. A dam failure that sent billions of gallons of mine waste flowing down a British Columbia creek threatens to put a chill on new mining projects across Canada. The Aug. 4 accident at Imperial Metals Corp. (III)’s Mount Polley copper-and-gold mine led the local district authority to declare a state of emergency amid concerns about drinking water and the fate of millions of migrating salmon. Provincial government officials are at the mine, about 400 kilometers northeast of Vancouver, and are testing local rivers and lakes for contamination. The dam breach has been stabilized and the waste isn’t acidic, Vancouver-based Imperial said. The company is trying to investigate the spill and mitigate its effects, it said. Standard & Poor’s cut its credit rating for Imperial to CCC+ from B- with a negative outlook. The accident has “materially weakened” Imperial’s financial flexibility, the ratings company said. British Columbia’s environment ministry said that preliminary results from testing water in Quesnel Lake, downstream from the breach, met provincial and Canadian quality guidelines. It kept local restrictions on drinking and bathing, pending further testing. (www.bloomberg.com)

August 8, 2014. Armstrong Asset Management, a private-equity company based in Singapore, is providing $29 million to fund the development of a series of solar power projects in the Philippines. The projects will be built by nv vogt Singapore Pte Ltd., 40 percent owned by the German solar company ib vogt GmbH, Armstrong said. The first facility will be a 6.25 MW ground-mounted solar park that’s expected to start working by year-end. (www.bloomberg.com)

August 7, 2014. China, the world’s biggest carbon emitter, accelerated solar power installations in the first half, adding enough capacity in the period to equal Australia’s entire supply of power from sunlight at the end of last year. China added 3.3 GW of solar capacity in the six months ended June 30, double last year’s additions, the National Energy Administration (NEA) said. China now has 23 GW of solar power supply, almost seven times as much as Australia, which is described by its own government as the world’s highest recipient of radiation per square meter.

China’s race to add renewable energy comes as policymakers push for ways to combat the nation’s growing problem of air pollution. Just this week, Beijing ordered official vehicles off the road and urged the use of public transport to ensure smog-free skies for a preparatory meeting ahead of an Asia-Pacific Economic Cooperation summit in November. Utility-scale photovoltaic power plants accounted for 2.3 GW of the new capacity in the first half, with distributed projects comprising the remainder, the NEA said. The northwestern region of Xinjiang led the way, with 900 MW of photovoltaic power plants in the first six months. The eastern province of Jiangsu added 270 MW of distributed solar capacity, according to the NEA. (www.bloomberg.com)

August 6, 2014. Chinese solar manufacturers climbed on news the world’s biggest supplier of photovoltaic panels may announce policies as soon as this month to encourage businesses to install the technology on rooftops. Under the policies, the National Energy Administration would call for local planners to add more projects in regions where electricity can be distributed to customers living nearby, according to people familiar with the matter who asked not to be identified because they aren’t authorized to speak publicly. The government will focus on supporting the development of so-called distributed solar power projects in industrial zones and at industrial and commercial companies with large rooftops. Big consumers of electricity will also be encouraged to develop solar projects as a way to reduce power costs.

The push may help China edge closer to its target of installing 8 GW of distributed solar, which is eligible this year for subsidies, and may spur orders for solar equipment. Distributed projects have already caught the interest of investors such as Yingli and GCL New Energy Holdings Ltd. (www.bloomberg.com)

August 6, 2014. Europe’s energy dilemma -- burning the dirtiest coal while meeting pollution targets -- is crystallizing in opposition to a plan that would uproot 700-year-old villages and dig two pits the size of Manhattan. PGE SA and Vattenfall AB, the Warsaw- and Stockholm-based utilities, want to tap Europe’s richest lignite deposit, along the German-Polish border. They’re opposed by communities already suffering sporadic sand storms and crumbling roads, in an area where the 12 kilometer long Jaenschwalde mine has dominated the landscape for three decades. Locals will form an 8-kilometer cross-border human chain on Aug. 23 in protest.

The battle reflects the divide across Europe. Polish Prime Minister Donald Tusk sees coal, used to generate 90 percent of his nation’s power, as a way for Europe to depend less on Russian natural gas. German Chancellor Angela Merkel’s government calls lignite “the black gold” that will help smooth out fluctuations from wind and solar generation. The European Union, to which both belong, wants tighter pollution rules that make coal pricier to burn. The European Commission seeks a deal by October to cut greenhouse-gas emissions across the 28-nation bloc by 40 percent by 2030 from 1990 levels. The current target is for a 20 percent reduction by 2020. (www.bloomberg.com)

August 6, 2014. Malaysia, the largest palm oil producer after Indonesia, delayed the nationwide implementation of its biodiesel mandate to the end of the year, said Douglas Uggah Embas, Plantation Industries and Commodities Minister. The B5 program will be completed by December instead of an original target of July, doubling average monthly consumption, Uggah said. The delay was because construction of 15 blending facilities in the states of Sabah and Sarawak and the federal territory of Labuan in East Malaysia were taking longer than expected, he said. Palm, the world’s most consumed cooking oil, has declined 16 percent in 2014 and slumped to the lowest level in a year in Kuala Lumpur as the U.S. government predicts record global inventories of soybeans, used to make an alternative oil. Prices have also been pressured by the failure of Indonesia and Malaysia to boost use in biofuels, according to Godrej International Ltd. (www.bloomberg.com)

August 6, 2014. The U.K. plans to make rigging of energy markets a criminal offense, imposing penalties of up to two years in prison for price manipulation, according to proposals by Energy and Climate Change Secretary Ed Davey. Fixing wholesale gas and electricity prices or using insider information to buy or sell energy products would become a crime under the proposed laws, the Department of Energy and Climate Change (DECC) said. The changes may take effect in spring 2015 pending approval by lawmakers. The Competition and Markets Authority said it would investigate whether the U.K.’s six biggest utilities used their power to increase prices. While energy regulators can now investigate market manipulation and levy fines for rule breaches, the new laws would make violations a criminal offense. The plans are part of the implementation of European Union regulations related to gas and power, the DECC said. Under the EU’s wholesale energy market integrity and transparency rule, known as Remit, companies must publish information that may have an effect on energy prices, including plant outages and flow data. (www.bloomberg.com)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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• natural gas
• power

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