Page 11 - Natural Gas

OilMin accepts all major Kirit Parikh panel recommendations on gas pricing

Final cabinet note being prepared, but Finance Ministry yet to submit comments on key issues

In line with new govt rules, Reliance re-auctions gas from its KG-D6 block

Reliance Industries Ltd and its partner bp plc have re-launched an auction for sale of natural gas from their eastern offshore KG-D6 block after incorporating the government's new marketing rules to give CNG-selling city gas companies first priority over supplies. Reliance and its partner BP Exploration (Alpha) Ltd (BPEAL) will sell 6 million standard cubic meters per day of gas in an e-auction planned for April 3, a tender notice said. The price is indexed to the global LNG marker, JKM but will be subject to the government-notified ceiling price. The partners had originally planned the auction in January but days before that the Ministry of Petroleum and Natural Gas, on January 13, published new rules for the sale and resale of gas produced from discoveries in deep sea, ultra-deep water and high-pressure-high temperature areas. This led to the auction being suspended and is now being re-launched after incorporating changes. Gas produced from wells drilled below seabed is used to .

Coal vs gas, or coal and gas?

Coal is bad, and so is natural gas, when it comes to climate change. Then why is it that the Western world, which has to date built its economy on dirty coal, is now wedded to gas as its dream fuel?

MCX Crude Oil remains range-bound; bias can turn positive above Rs 6,465

On the flip side, in case, Crude Oil futures break the support at the lower-end the commodity could dip below the Rs 6,000 mark.

ONGC Videsh to increase spending by 65% in FY24 to push overseas operations

Latin America, Africa, and Russia are expected to play key roles in helping OVL achieve its long-term production targets

BP-Reliance's giant deep-water project offshore nears completion

Billionaire Reliance Industries Ltd and UK supermajor BP are nearing start of production from their giant MJ deep-water project in the KG-D6 block, which will significantly boost gas output from the prized east coast asset, a top official said. The MJ field will come on stream this quarter, said Sashi Mukundan, Regional President and Head of Country, India, BP Group, at India Energy Week here. Reliance and BP are spending about USD 5 billion on further developing KG-D6 through three different projects, aimed at rejuvenating gas production from the offshore asset. While the first two developments -- R-cluster and Satellite Cluster -- have started gas production, MJ is now nearing completion. The two fields are currently producing around 20 million standard cubic meters per day of gas and MJ would help raise the output to 30 mmscmd, meeting up to 15 per cent of India's gas demand. "MJ, the third of three developments, is expected to come on stream this quarter. Together, R-Series, ..

Shell annual profit doubles to record high as war drives up energy costs

Global energy giant Shell said Thursday that its annual profits doubled to a record high last year as oil and natural gas prices soared after Russia's invasion of Ukraine. London-based Shell Plc posted adjusted earnings of USD 39.9 billion for 2022 in its financial results for the final three months of the year. Adjusted earnings in the fourth quarter, which exclude one-time items and fluctuations in the value of inventories, rose to USD 9.8 billion. Shell is the latest oil company to report bumper profits, even as the fossil fuel industry faces increasing pressure to cut climate-changing carbon emissions. US-based Exxon Mobil also posted record annual profits days earlier, while UK rival BP and France's TotalEnergies posted huge quarterly profits last year. The results demonstrate Shell's capacity to deliver vital energy to our customers in a volatile world," new CEO Wael Sawan said in a statement. It's the first earnings report presented by Sawan since he took over as chief ...

GAIL Q3 profit drops 90% on petrochemical, natural gas marketing woes

State gas utility GAIL (India) Ltd on Monday reported 90 per cent drop in December quarter net profit after it suffered losses in petrochemical and natural gas marketing business. Consolidated net profit of Rs 397.59 crore in October-December 2022 is compared with Rs 3,800.09 crore earning in the same period a year back, according to the company's stock exchange filing. The nation's largest gas trading and transportation company booked Rs 349 crore loss in petrochemical business after it had to cut run rate due to curtailment in supply of cheaper domestic gas. Natural gas marketing division too incurred a loss while the pre-tax profitability of the core transmission business halved. Revenue from operations rose to Rs 35,939.96 crore in October-December 2022 from Rs 26,175.60 crore a year ago.

Indian refiners' crude oil processing in December rises 4% y/y: Govt data

India's Bharat Petroleum Corp plans to shut its multiple refineries for maintenance in the coming months

Near support for MCX Crude Oil seen at Rs 6,030; Natural Gas to test Rs 285

In case, the MCX Crude Oil futures fail to hold the support, the commodity could revisit its December lows of Rs 5,850 level.

Fitch sees risks to India's target of raising natural gas' energy share

Price volatility and infrastructure constraints will challenge India's target of increasing the share of natural gas in its primary energy to 15 per cent by 2030 from 6 per cent in 2017, Fitch Ratings said in a new report Tuesday. "Progress on the target has been minimal - 6 per cent share in 2021 - as natural gas growth has not managed to outpace total energy growth," it said. This is despite resilient demand from city gas distribution (CGD) networks and rising domestic production. Prime Minister Narendra Modi had in 2017 set a target of raising the share of natural gas in the primary energy consumption basket with a view to cutting down emissions. However, the demand for the fuel is rising at a slower rate, with current growth rates only around 53 per cent of levels required for the country to meet a 15 per cent gas use target. Gas demand by 2030 will only reach 326 million standard cubic meters per day at current 4-5 per cent growth rates, much lower than the 611 mmscmd of ...

Fast forward to 2023

The second overwhelming trend of 2022 is the impact of climate change

Gas pricing up in the air: 2023 to see new trading products from exchanges

New trading products could be the start of India's attempt to create a domestic price benchmark and derivatives contract market, and the tapering of the administered price regime

European Union hails high natural gas storage levels despite Russian cuts

Natural gas storage levels in the European Union stand at nearly 84 per cent and were higher in December than the average amount in reserve 4-6 years ago, the EU's executive branch said Wednesday, despite Russian attempts to choke off supplies amid its war on Ukraine. Fearing winter shortages, the 27 EU countries began stocking up on gas last year. Joint gas reserve levels climbed to 82 per cent by September, well ahead of an 80 per cent target set for November. Gas consumption also dropped by 20 per cent from August to November as prices spiked. Angered by EU war-related sanctions, Russia tightened its gas taps to Europe last year. Its pipeline gas accounted for 40 per cent of all gas Europe imported before President Vladimir Putin ordered his troops into Ukraine in late February, but now it only accounts for around 9 per cent. It's a fairly good position to be in, EU commission spokesman Tim McPhie told reporters. We have a healthy level of gas storage for the start of this year,

Fear of global natural gas crisis eased by warm start to winter

Gas futures are plummeting on reduced fuel consumption and the weaker outlook. European gas fell Tuesday, a day after briefly touching the lowest level since the war in Ukraine started

Demand to exploration: Key warning signals for India's gas industry in 2023

Consumers will be in trouble, given rising European demand from India's traditional suppliers, the absence of gas storage facilities and the lack of a clear LNG procurement strategy

CGD, fertilisers to drive demand for domestic natural gas: CRISIL

The growth is in line with the government's target to increase the share of natural gas in its energy mix to 15 per cent by 2030 as part of its environmental commitments

Reliance Industries seeks bids for sale of KG-D6 gas at rates linked to JKM

Reliance Industries Ltd and its partner bp plc of the UK have sought bids for the sale of natural gas from the eastern offshore KG-D6 block at a price linked to the rate at which LNG is delivered to Japan and Korea. The two partners invited bids for the sale of 6 million standard cubic meters per day of gas starting February 2023, according to the tender document. Users such as city gas operators that convert gas into CNG for sale to automobiles and pipe it to household kitchens for cooking purposes, or power plants that use it to generate electricity or fertilizer units that use it to make urea, have been asked to quote premium they are willing to pay over the JKM price. JKM is the Northeast Asian spot price index for LNG delivered ex-ship to Japan and Korea. JKM price for February is USD 28.83 per million British thermal unit. Bidders have been asked to quote variable 'V' in the gas price formula 'JKM + V'. The starting bid for 'V' has been set at USD (minus) 0.30 per mmBtu. "Ea

CAG says 3 state-owned oil firms ignoring own software for logistics

National auditor says state-owned companies make monthly adjustments that aren't best for saving costs, efficiency

Turkey discovers new natural gas reserve of 58 billion bcm in Black Sea

Turkey has discovered a new natural gas reserve of 58 billion cubic meters (bcm) in the Black Sea, as the country's total reserve in the sea has reached 710 bcm, President Recep Tayyip Erdogan said