Page 8 - Natural Gas

After MGL and IGL, Torrent Gas reduces CNG prices by Rs 2.50 per kg

After city gas retailers in Mumbai and Delhi reduced CNG prices, Torrent Gas on Saturday announced a Rs 2.50 per kg reduction in compressed natural gas (CNG) prices across all its locations. "This makes CNG cheaper by up to 45 per cent vis a vis petrol and up to 37 per cent vis a vis diesel," the company, which has a city gas license to sell CNG to automobiles and piped cooking gas to households in 34 districts, said in a statement. "This reduction in prices of CNG has been done with an objective of promoting the usage of clean fuel and enhancing the ecosystem of natural gas." Mahanagar Gas Ltd, the city gas operator in Mumbai and its adjoining areas, on March 6, announced a Rs 2.5 per kg reduction in CNG price. Accordingly, the revised CNG price will be Rs 73.50 per kg. "MGL's CNG price now offers attractive savings of 53 per cent compared to petrol and 22 per cent compared to diesel at current price levels in Mumbai while delivering unmatched convenience, safety, reliability and

Swan Energy's natural gas business arm prepays Rs 2,206 crore debt

Swan Energy on Monday said its natural gas business arm Swan LNG Pvt Ltd has prepaid Rs 2,206 crore of loan taken from a consortium of lenders. Post-prepayment, Swan LNG's debt has come down to Rs 1,611 crore and the firm will save around Rs 250 crore in interest cost annually, the company said in a statement without disclosing the lenders' names. Before the repayment, the group's overall debt stood at Rs 3,817 crore as of December 2023. To facilitate the pre-payment, the parent company Swan Energy has lent Rs 2,210 crore to Swan LNG. Swan Energy had last week raised Rs 3,000 crore through a qualified institutional placement of equities to SBI Life, LIC, LIC Mutual Fund, Tata Mutual Fund, Infini Mutual Fund, SBI General Insurance, BNP Paribas Mutual Fund, Nomura, Diamond Asia, Bank of India Mutual Fund, ITI Mutual Fund, Goldman Sachs, Future Generali, Anand Rathi, and Quant Mutual Fund, among others. Meanwhile, public sector fertilizer major IFFCO, which has a joint venture with S

Iran accuses Israel of attack that saw explosions strike gas pipeline

An Israeli sabotage attack on an Iranian natural gas pipeline caused the multiple explosions that struck it a week ago, Iran's oil minister alleged on Wednesday, further raising tensions between the regional archenemies amid Israel's war on Hamas in the Gaza Strip. The comments by Iran's Oil Minister Javad Owji come as Israel has been blamed for a series of attacks targeting Tehran's nuclear programme. The explosion of the gas pipeline was an Israeli plot, Owji said, according to Iran's state-run IRNA news agency. The enemy intended to disturb gas service in the provinces and put people's gas distribution at risk. He added: The evil action and plot by the enemy was properly managed. Owji provided no evidence to support his claims. Israel has not acknowledged carrying out the attack, though it rarely claims its espionage missions abroad. The office of Prime Minister Benjamin Netanyahu, a longtime foe of Iran, did not immediately respond to a request for comment. The blasts on Febr

Adani Total Gas looks to increase adoption of LNG as primary fuel

With quicker adoption of liquified natural gas (LNG) becoming a centre point in government's gas policy and to control greenhouse gas (GHG) emissions, leading city gas distributor (CGD) Adani Total Gas Ltd has identified this super-chilled fuel to fuel its growth. Adani Total Gas Ltd (ATGL) is aiming to increase the adoption of LNG as the primary fuel for long-haul commercial vehicles, replacing diesel, through an ecosystem approach, a senior company official said. This includes strategic tie-ups with various stakeholders like auto ancillaries, Original Equipment Manufacturers (OEMs), fleet operators, end-use industry, and retrofitment players to advocate for quicker adoption of the fuel. "The biggest challenge of LNG is distribution. Currently we have only a handful of LNG dispensing stations and hence it is a chicken and egg situation. Fleet operators are unwilling to invest in switching over till the distribution network comes up, and till the demand builds up, oil marketing ...

ONGC Q3 results: Net profit shrinks 7.9% to Rs 10,748 cr as production dips

ONGC's total crude production dropped by 3.3 per cent to 5.21 million metric tonnes (MMT), down from 5.39 MMT in Q3 FY23

Petronet draws Rs 40,000 cr investment plan to increase profit by 2028

Petronet LNG Ltd, the operator of the world's largest liquefied natural gas (LNG) import terminal, will invest Rs 40,000 crore in expanding import capacity and petrochemicals with a target to treble net profit by 2028, its CEO A K Singh said. Petronet is making a foray into the petrochemical business by investing Rs 12,685 crore in a propane dehydrogenation plant that will convert imported feedstock into propylene, as well as setting up an LNG import facility at Gopalpur in Odisha at a cost of Rs 2,300 crore, he told reporters on the sidelines of India Energy Week here. The firm, which this week extended a deal to import 7.5 million tonnes a year of LNG from Qatar by 20 years, is also looking at investing in overseas projects such as a floating LNG terminal at Colombo in Sri Lanka. "We have charted a 1-5-10-40 strategy -- increasing turnover to Rs 1 lakh crore in 5 years with a net profit of Rs 10,000 crore from investing Rs 40,000 crore in expansions," he said. The strategy started

Gas to biofuels: India's demand sets agenda for global energy business

Country commits to increasing LNG imports as it separately invests in clean energy

Petronet signs a new long-term agreement to source LNG from Qatar

An existing deal for another 7.5 MMTPA of LNG from Qatar, signed back in 1999, was also recently extended by the company till 2028

Petronet to sign LNG deal with Qatar for supplies past 2028: Report

India wants to raise the share of natural gas in its energy mix to 15 per cent by 2030, up from 6.2 per cent currently, as part of an effort to cut emissions

PM Narendra Modi to inaugurate India Energy Week in Goa on February 6

Energy Ministers from 17 nations to discuss energy issues at India Energy Week

India's natural gas demand is expected to rise 6% in 2024, says IEA

India's natural gas demand is expected to rise by 6 per cent in 2024 with a rise in consumption in fertiliser units, power generation and industrial sectors, according to the International Energy Agency (IEA). Following the 7 per cent year-on-year decline observed in 2022, India's primary gas supply rose by 5 per cent in 2023, with growth primarily driven by the petrochemical, power generation, refinery and industrial sectors. "Natural gas demand in India is expected to increase by 6 per cent in 2024, mainly supported by higher gas use in industry (including in the fertiliser sector) and stronger gas burn in the power sector amid the development of its national pipeline grid and city gas infrastructure," IEA said Gas Market Report released last week. India's natural gas demand had risen to 64 billion cubic meters in 2023. Liquefied natural gas (LNG) imports rose by 7 per cent on the year to 29 billion cubic meters last year, with import dependency at 44 per cent of the nation's ...

IGL Q3 results: Net profit jumps 41% on higher CNG, piped gas sales

Indraprastha Gas Ltd, India's leading CNG retailer, has reported a 41 per cent jump in third quarter net profit, as the firm recorded higher sales of CNG to automobiles and piped cooking gas to households and industries. The company clocked a net profit of Rs 392.07 crore in October-December - the third quarter of current fiscal that started in April 2023 - compared to Rs 278.26 crore in the same period in the previous year, it said in a statement. IGL operates city gas distribution (CGD) networks across 30 districts in 11 geographical areas across four states of Delhi, Uttar Pradesh, Haryana and Rajasthan. The company said it "registered an overall sales volume growth of 4 per cent over the corresponding quarter in the last fiscal, with the average daily sales going up to 8.48 million standard cubic meters per day from 8.12 mmscmd." "Product wise, CNG recorded sales volume growth of 4 per cent in the quarter, while piped natural gas (PNG) recorded sales volume growth of 5 per cent

Cabinet clears Rs 8,500 cr incentive scheme for coal gasification projects

The Union Cabinet on Wednesday approved a Rs 8,500 crore incentive scheme for coal gasification projects, sources said. The adoption of gasification technology in India is expected to reduce the country's reliance on imports of natural gas, methanol, ammonia and other essential products. The cabinet has given its go-ahead to Rs 8,500 crore incentive scheme for coal gasification projects, the sources said. The government is targeting to gasify 100 million tonnes (MT) of coal by 2030. In gasification process, coal is partially oxidised by air, oxygen, steam, or carbon dioxide under controlled conditions to produce a liquid fuel known as syngas. Syngas or synthesis gas can be used for power generation and to make methanol as well.

GEECL claims more than Rs 100 cr from Matix Fertilizers over GSPA dispute

Natural gas producer Great Eastern Energy Corporation Limited (GEECL) has claimed more than Rs 100 crore from Matix Fertilisers & Chemicals Limited, allegedly for not adhering to the terms of the Gas Sale and Purchase Agreement (GSPA). This may come as a blow to Matix which operates West Bengal's only large integrated fertilizer plant at Panagarh near Durgapur and claims to have a 20 per cent market share in eastern India. Matix did not want to make any comment on the development stating that the matter is sub-judice. The coal-bed methane gas producer entered into a GSPA with Matix in July 2017, which was valid till August 31, 2018. It claimed that Matix did not honour the Minimum Guarantee Offtake clause. According to the latest accounts notes, GEECL had then claimed Rs 148 crore including interest from Matix. GEECL also claimed that following arbitration, the company owes nearly Rs 112 crore including interest. It subsequently approached a commercial court in Rajarhat to execute

MNGL inks tech deal with Heath Consultants for low-emission operations

Gas distributor Maharashtra Natural Gas Limited (MNGL) said it has entered into a technology collaboration with US-based Heath Consultants Incorporated to ensure low-emission operations of its natural gas utility infrastructure. The Memorandum of Understanding (MoU), signed under the US-India Low Emissions Gas Task Force (LEGT), would provide MNGL and Heath to jointly identify opportunities in the areas of emissions abatement, underground utility damage prevention, and waste heat recovery, MNGL said in a statement. "Upon signing this MoU, we would work to convert such identified opportunities into specific implementable projects," MNGL managing director Kumar Shanker said in the company statement. Houston-headquartered Heath Consultants Incorporated will also offer its technical solutions to support MNGL in gas line location services, underground utility damage prevention, waste heat recovery, and low-emission valves. As per the agreement, Heath shall support MNGL in improving ...

ONGC makes two consecutive natural gas discoveries in Mahanadi basin block

State-owned Oil and Natural Gas Corporation (ONGC) has made two significant back-to-back natural gas discoveries in a Mahanadi basin deepwater block in the Bay of Bengal as its calculated game plan of venturing into high-risk deep water exploration starts yielding results. The firm made the discoveries in the block MN-DWHP-2018/1, which it had won in the third round of auction under the open acreage licensing policy in 2019, two sources with direct knowledge of the development said. Significantly, the discoveries have been made in an area, which previously was classified as a 'no-go' area because of national security interests. The first discovery, named Uktal, is in 714 metres of water depth and flowed more than 3 lakh cubic metres per day of gas during initial testing, they said, adding the other find is at a water depth of 1,110 metres. ONGC has notified the discoveries to upstream regulator Directorate General of Hydrocarbons (DGH) and is now doing pool size and commercial ...

Gail signs deal with Vitol to secure 1 mn MT of LNG annually for 10 years

The deal is significant as it is the first of a series of agreements being pursued by Gail to diversify its imports beyond Qatar, aiming to avoid disruption in supplies

IGX sees 16% surge in volume of gas traded in 2023 on its platform

The Indian Gas Exchange (IGX) on Thursday said volume of gas traded on the platform rose 16 per cent in 2023 as producers and consumers flocked to the exchange. IGX recorded 1.22 billion cubic meters or 3.3 million standard cubic meters per day of gas trade in 2023, it said in a statement. December volume at 67 million standard cubic meters or 2.2 million standard cubic meters per day was a 7 per cent decline month-on-month. "A total of 132 trades were executed during the month. The maximum number of trades were executed in daily contract, 61 trades; followed by fortnightly and monthly contracts of 27 and 18 trades, respectively," the statement said. The most active delivery point for free market gas was Dahej and the domestic ceiling price gas was traded at Gadimoga. Other trading delivery points were Hazira, Ankot, Suvali, Mhaskal, Bhadbhut & KG Basin. During the month, the exchange traded gas flows were 37,26,500 million British thermal unit or mmBtu (around 3 mmscmd). GIXI ..

Energy surge: Oil and gas sector set for good growth in FY24, FY25

Natural gas consumption to rise 10-15% this financial year, driven by CGD

Gas firms seek price deregulation as city distribution targets fall behind

Regulator warns them of losing bank guarantees as investors show little interest in gas economy