Oil PSUs to invest over Rs. 1.4 lakh crore in AP: Pradhan
The Dollar Business Bureau Petroleum and Natural Gas Minister Dharmendra Pradhan said on Friday that key oil public sector units (PSUs) are planning to do investments of more than Rs.1.43 lakh crore in Andhra Pradesh in the next few years which would generate thousands of jobs in the state. The Minister said that investment will begin from the financial year 2017-18 and the entire investment will be finished by 2021-22. Andhra Pradesh has huge potential in hydrocarbons and in the coming years the state is going to become the main petrochemical and petroleum hub, Pradhan stressed at the Partnership Summit organised by CII. “Our oil PSUs are partnering with Andhra Pradesh to build new synergies in the hydrocarbon sector. The oil PSUs have invested more than ...
ONGC to acquire GSPCs 80% stake in KG basin
The Dollar Business Bureau Oil and Natural Gas Corporation Ltd. (ONGC) has been exploring potential opportunities with Gujarat State Petroleum Corporation Ltd. (GSPC) to purchase the latter’s stake and operatorship in NELP-III Block in Krishna Godavari (KG) Basin offshore. The board of ONGC had approved an acquisition of the entire 80% participating interest of GSPC along with operatorship rights, at a purchase consideration of $995.26 million for Deen Dayal West Field in the Block. ONGC will also pay $200 million to GSPC for six other discoveries, in addition to Deen Dayal West Field. GSPC has already installed production facilities such as well-head platforms, process-cum-living quarter platform, onshore gas terminal, export pipeline for transporting treated well fluid from process platform to onshore terminal etc. “The acquisition ...
LNG import terminals to face major challenges: Icra
Source: PTI New LNG import terminals will face major challenges due to price sensitive demand, Icra said in its latest update on gas utilities sector. According to Icra estimate, gas demand will increase to 330 million standard cubic meters per day by 2024-25, while domestic natural gas production will rise by 60% to around 150 mmscmd. The domestic output increase is contingent upon GSPC's Deen Dayal block and ONGC's KG basin blocks going on stream along with marginal increase in Reliance Industries' KG production, the rating agency said. “Despite high domestic demand-supply deficit, the demand for Regasified-Liquefied Natural Gas (R-LNG) in the country is critically dependent upon the prices of liquid fuels and global spot LNG prices," Icra said. Prices of long-term ...
Reliance seeks pricing freedom for natural gas
The Dollar Business Bureau Concerned over regulatory challenges faced by oil and gas business, Reliance Industries has sought freedom over fixing of gas prices and an official statement in this regard was made by Mukesh Ambani, CMD, Reliance Industries Ltd. “Contractual commitment of marketing and pricing freedom for natural gas, along with risk-reward balance must be met,” said Mukesh Ambani on Saturday. Addressing company shareholders, Mukesh Ambani raised concerns over oil & gas exploration and production (E&P) business saying, “The E&P business created huge economic value to the government, but, generated lower shareholder returns which are even lower than the cost of capital.” While E&P business helped the nation save $34 billion in foreign exchange by bringing to production in the KG-D6 fields ...
Revival of stranded gas-based units to boost power generation
Sai Nikesh | The Dollar Business In a move to boost power generation in the country, the Government of India approved a major policy intervention to revive and improve the utilization of gas-based power generation units in the country. A decision to this effect was taken in a Cabinet Committee meeting on Economic Affairs, chaired by the Prime Minister, Narendra Modi, on Tuesday. To revive the stranded gas-based plants in the country, the government has announced a mechanism where the Regasified Liquified Natural Gas (RLNG) will be imported and supplied to these plants, boosting the overall power generation in the country. Through this move, 31 gas-based power units in the country with a capacity of 14,000 MW, those ...
