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In its last attempt to save the company from splitting, GAIL India will launch its new portal tomorrow allowing anyone to hire its pipeline network for natural gas transportation. The Oil Ministry in January considered dividing the company, one for transportation and other for marketing in order to avoid any internal conflicts. According to the sources, GAIL has been accused of denying access to its 11,000-kilometer pipeline network.
If sources were to be believed, ONGC has used its internal resources to pay for the third of Rs 24,881 crore loan it had taken to buy HPCL. Earlier this year, the company got approval from the government to sell its stake in IOC and GAIL to repay the loan but has now decided otherwise. Acquisition of HPCL by ONGC led to the creation of nation’s first integrated oil company.
After the submission of winning bid by GAIL, Essar Oil & Gas E&P has agreed to supply 2.3 mmscmd of its entire coal bed methane (CBM) production from the Raniganj project in West Bengal, India. The gas sale and purchase agreement (GSPA) has a term of 15 years. In its bid, GAIL offered the payment of gas prices associated to the average daily price of three months of Brent crude.
Kerala GAIL Gas Ltd (KGGL), JV of GAIL and KSIDC was formed with an idea to bring more contracts for the development of city gas project in the state and to improve the delivery of CNG and PNG. Failing to do so, the state government is now of the view to wind up KGGL. IOAGPL bagged the maximum contracts in the CGD auction announced so far.
Essar Oil subsidiary, Essar Oil and Gas Exploration and Production (EOGEPL) has entered into a gas sale and purchase agreement (GSPA) with state-run GAIL for a 15-year term. GAIL won the bid for the contract floated by EOGEPL. The deal will help monetize EOGEPL’s complete CBM production from the Raniganj East block. The Essar subsidiary has already concluded drilling of 346 out of the 500 CBM wells.
An Indian Parliamentary panel has reported a drop in number of accident in the facilities of the government oil firms, but the number of such cases in ONGC, HPCL and other state run explorers continues to be high. 149 accidents were recorded by HPCL while GAIL recorded the least number of accidents. The committee has recommended an increase in the safety and security of the facilities.
Oil majors, Royal Dutch Shell and BP Plc are looking forward to moving to a unified tariff for pipelines in India, but the firms want separate marketing and transportation business before they do so. In an open house called by the Petroleum and Natural Gas Regulatory Board (PNGRB), GAIL regarded unification of tariff as a separate exercise and said that it is not related to unbundling of their business arms.
In a statement released by NRL, Indian oil companies, IOCL, ONGC, GAIL, OIL, and NRL have formed a joint venture to carry out the North-East Natural Gas Pipeline Grid as part of the Urja Ganga Gas Pipeline Project. The JV will focus on the development, construction, operation, and maintenance of the Natural Gas Pipeline Grid connecting Guwahati to the other major North-Eastern cities and major load centers.
The Indian Petroleum Minister yesterday said that India is evaluating strategies to enable the Maharatna, GAIL to keep both of its marketing and pipeline operation arms separate, without breaking up the company. Consultants, Private companies, and investors have said that GAIL's supremacy in pipeline infrastructure across the nation conflicts with its business of marketing and trading of natural gas.
A 3.4 TBtu cargo of Russian LNG reached India at its Dahej LNG terminal in Gujarat, the day before yesterday. GAIL recently renegotiated with Gazprom about the terms of the 20-year deal to import 2.5 million tones/year of LNG. India received its first cargo of US LNG a few weeks back. India Petroleum Minister, Dharmendra Pradhan sees the LNG import from Russia adding a new dimension to Indo-Russian bilateral relations!
The first ever cargo of Russian LNG is on its way to India and will reach the Petronet terminal today. The import comes in line with GAIL’s renegotiation with Gazprom about the terms of the 20-year deal to import 2.5 million tonnes a year of LNG. India received its first cargo of US LNG a few weeks back. The price indexation has been changed from the Japan customs-cleared crude to Brent.
Indian Oil Corporation, Oil India Limited, Numaligarh Refinery Limited and GAIL will be joining hands to build a 721km long pipeline from Barauni to Guwahati. The pipeline is expected to be operational by 2021. The Rs. 3000 crore pipeline project is in line with the government’s plan to connect all the northeastern states with the gas pipeline.
GAIL (India) Ltd. to be split by March next year. It shall be divided into two companies: one marketing gas and another operating pipeline that can be used by consumers who buy directly from producers as told by the head of the sector's regulator to Reuters. To ease the process in future, GAIL is already keeping separate accounts for its gas pipeline and marketing business.
A ship carrying super-cooled natural gas arrived at Dabhol in Maharashtra yesterday, its first LNG cargo from the US under a long term supply deal of state owned Indian firm, GAIL and US’s Cheniere Energy. In an official statement, GAIL India said the firm is one of the early movers to contract US LNG and has 5.8 million tonnes per annum of US LNG in its portfolio.
State owned enterprise ONGC will be buying out stake of GAIL in the Dahej Mega Petrochemical Plant in Gujarat. GAIL which had 19% stake originally during the inception of the project is holding only 9% stake. A source privy to the development said, “It doesn’t make any sense to hold such a small percentage stake and its best that ONGC buys out GAIL in the project.”
Petroleum and Natural Gas Regulatory Board (PNGRB) approved GAIL India Ltd's 'Urja Ganga' pipeline’s extension. This is part of Jagdishpur-Haldia-Bokaro-Dhamra natural gas pipeline; GAIL is currently laying this pipeline with a spread of 2,655-km at a cost of Rs 12,940 crore. The project would be executed in 36 months from the first notification of Right of User (RoU) acquisition and is likely to be completed by 2021-22.
Petroleum and Natural Gas Regulatory Board (PNGRB) has terminated the license of state owned GAIL to build Surat-Paradip natural gas pipeline. The regulatory body got encashed a quarter of performance bank guarantee i.e. Rs. 5 crore when the latter failed to begin with the project for six years. GAIL failed to submit the requisite BG within 15 days following which, its license has been terminated.
India’s GAIL which has entered into a ‘take or pay’ agreement from Cheniere’s arm, Sabine Pass (SPL) has been rebuffed when it went for a price negotiation. The contract which amounts for purchase of 182.5 trillion BTU of LNG seems to be a little problematic for the govt. owned enterprise which entered the contract to hedge prices but ended up caught under the hedge of quantity.