With the Reliance Group operated KG-basin D6 block gas flowing in, the gas-based power generation across the country has registered a healthy turnaround. In October, a total of 15 gas-based stations recorded a plant load factor (PLF) of over 80 per cent due to improved fuel availability, as against around just 50 per cent last year.
The spurt in gas-based production has more or less compensated for a dip in hydro generation in the northern and eastern regions, where reservoir storage was 35 per cent and 33 per cent respectively below last year's levels.
Increased generation by gas stations, especially those in the south, have also come at a time when coal-based generation at a number of stations, including key NTPC ones, have faltered due to a botched-up coal tender. Domestic natural gas production in April-October period was up 31 per cent at 25.389 bcm (billion cubic metres). Reflecting the jump in gas production, generation in gas-based plants shot up 34 per cent during April-October. “Surplus is also available due to low offtake by other sectors. The utilisation of the surplus gas has resulted in better utilisation of idle capacity,” an official with the Central Electricity Authority said.
Source:http://www.thehindubusinessline.com/2009/11/30/stories/2009113051160100.htm
Monday, November 30, 2009
Thursday, November 26, 2009
RIL refineries to get one-fifth of gas from KG-D6
RIL has been allocated 2.34 mmscmd of gas from its KG D-6 fields to meet just about one-fifth of the gas requirement at its twin refineries at Jamnagar in Gujarat.
Reliance Industries had sought 11.80 million standard cubic meters per day of KG D-6 gas to meet feedstock requirement at its twin refineries but it got only 2.34 mmscmd.
An Empowered Group of Ministers (EGoM) had on October 27 allocated one-fourth of the additional 20 mmscmd gas that RIL is ready to produce from KG-D6 to refineries.
"Refineries had projected a demand of 25.20 mmscmd but since the EGoM allocated only 5 mmscmd, the same has been allocated on pro-rata basis," an oil ministry official said.
State-run Indian Oil got 1.6 mmscmd while HPCL and BPCL have been allocated 0.26 and 0.20 mmscmd respectively. Private sector Essar Oil would get 0.60 mmscmd against a demand of 3 mmscmd for use at its Vadinar unit in Gujarat.
Reliance Group, which had so far not been allocated any gas from KG D-6, is currently buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block in the Krishna-Godavari Basin.
Of the 20 mmscmd, 12.9 mmscmd has gone to power plants, the official said, adding the new customers notified to RIL include state-run NTPC who has been given 2.71 mmscmd.
The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output, 18 mmscmd had gone to power plants.
The official said out of the additional allocation made on firm basis, NTPC will get 2.71 mmscmd, Lanco's Kondapalli plant (1.46 mmscmd), GMR Energy's Tanir Bavi (0.88 mmscmd - both in Andhra Pradesh), Rithala (0.40 mmscmd), Bawana plants (0.93 mmscmd - both in Delhi) and Gujarat's Uran plant (1.40 mmscmd).
The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output, 18 mmscmd had gone to power plants.
Source:http://business.rediff.com/report/2009/nov/25/reliance-ril-refineries-to-get-one-fifth-of-gas-from-kg-d6.htm
Reliance Industries had sought 11.80 million standard cubic meters per day of KG D-6 gas to meet feedstock requirement at its twin refineries but it got only 2.34 mmscmd.
An Empowered Group of Ministers (EGoM) had on October 27 allocated one-fourth of the additional 20 mmscmd gas that RIL is ready to produce from KG-D6 to refineries.
"Refineries had projected a demand of 25.20 mmscmd but since the EGoM allocated only 5 mmscmd, the same has been allocated on pro-rata basis," an oil ministry official said.
State-run Indian Oil got 1.6 mmscmd while HPCL and BPCL have been allocated 0.26 and 0.20 mmscmd respectively. Private sector Essar Oil would get 0.60 mmscmd against a demand of 3 mmscmd for use at its Vadinar unit in Gujarat.
Reliance Group, which had so far not been allocated any gas from KG D-6, is currently buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block in the Krishna-Godavari Basin.
Of the 20 mmscmd, 12.9 mmscmd has gone to power plants, the official said, adding the new customers notified to RIL include state-run NTPC who has been given 2.71 mmscmd.
The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output, 18 mmscmd had gone to power plants.
The official said out of the additional allocation made on firm basis, NTPC will get 2.71 mmscmd, Lanco's Kondapalli plant (1.46 mmscmd), GMR Energy's Tanir Bavi (0.88 mmscmd - both in Andhra Pradesh), Rithala (0.40 mmscmd), Bawana plants (0.93 mmscmd - both in Delhi) and Gujarat's Uran plant (1.40 mmscmd).
The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output, 18 mmscmd had gone to power plants.
Source:http://business.rediff.com/report/2009/nov/25/reliance-ril-refineries-to-get-one-fifth-of-gas-from-kg-d6.htm
Wednesday, November 25, 2009
Crisil on Reliance’s Lyondell Acquisition
Reliance Industries plans to fund its acquisition of the LyondellBasell Industries (LBI) by selling treasury stock and dipping into its cash reserves without taking any additional debt on its balance sheet, rating agency Crisil said on Tuesday while re-affirming its ‘stable’ rating on RIL’s debt.
Crisil said that Mukesh Ambani led firm had told it that, post-acquisition, LBI would have a conservative capital structure, with gross debt-to-equity ratio not exceeding 0.75 times. No additional support would be required from RIL, Crisil said.
The rating agency said its description of Reliance’s plans to finance the acquisition of LBI and the foreign company’s post-acquisition debt structure was based on its discussions with the management of India’s largest private sector company.
When contacted, RIL’s external spokesperson said the company had nothing more to add to its Saturday statement which said that it had submitted a non-binding all-cash preliminary offer to buy a controlling stake in LBI.
Source:http://www.indianoilandgas.com/viewnews.php?id=7752
Crisil said that Mukesh Ambani led firm had told it that, post-acquisition, LBI would have a conservative capital structure, with gross debt-to-equity ratio not exceeding 0.75 times. No additional support would be required from RIL, Crisil said.
The rating agency said its description of Reliance’s plans to finance the acquisition of LBI and the foreign company’s post-acquisition debt structure was based on its discussions with the management of India’s largest private sector company.
When contacted, RIL’s external spokesperson said the company had nothing more to add to its Saturday statement which said that it had submitted a non-binding all-cash preliminary offer to buy a controlling stake in LBI.
Source:http://www.indianoilandgas.com/viewnews.php?id=7752
Tuesday, November 17, 2009
RIL hunts for shale gas
Reliance Group (RIL), which has executed the world’s single largest refinery complex at one place, and one of the most complex gas projects in the depth of the Bay of Bengal on the East coast of India, may join global oil majors in search of shale gas.
RIL has been studying the breakthroughs and the new technologies that are being used in producing shale gas that is now a huge rage in the US. “We are studying the prospects and we will take a decision on the investment in the next six months. RIL is looking at the overseas markets and it plans to go big in new technology. We now have the balance sheet to support such a move,” a senior RIL executive, who did not wish to be named, told ET.
Shale gas is natural gas produced from shale — a fine grained sedimentary rock composed of flakes of clay and minerals like quartz and calcite. “The future of energy is a low-carbon regime. Shale gas is one such example. It is somewhat like coal-bed methane and is on land. The US has made major strides in the technology in shale gas that has made it now a commercial proposition,” the executive in the know said.
According to Vijay Kelkar, former petroleum secretary and chairman of the 13th finance commission, it’s innovative technology using horizontal drilling (allowing the gas to be brought out easily) that made this fuel a commercial possibility. Mr Kelkar had floated a paper on how such non-conventional possibilities existed in gas hydrates — deposits in sea — near the Andaman and Nicobar Islands.
Reliance, which has used advanced technology in its exploration projects in the Krishna-Godavari basin, is betting on its expertise in technology to tap unconventional energy sources in the energy value chain. The company has been eyeing unconventional energy sources, such as solar, for some time now. But industry analysts are of the view that a fuel like shale gas is perhaps the best bet as it has already been proved as a commercial proposition.
Source:http://rilrnrlgasdispute.wordpress.com/2009/11/17/ril-hunts-for-shale-gas/
RIL has been studying the breakthroughs and the new technologies that are being used in producing shale gas that is now a huge rage in the US. “We are studying the prospects and we will take a decision on the investment in the next six months. RIL is looking at the overseas markets and it plans to go big in new technology. We now have the balance sheet to support such a move,” a senior RIL executive, who did not wish to be named, told ET.
Shale gas is natural gas produced from shale — a fine grained sedimentary rock composed of flakes of clay and minerals like quartz and calcite. “The future of energy is a low-carbon regime. Shale gas is one such example. It is somewhat like coal-bed methane and is on land. The US has made major strides in the technology in shale gas that has made it now a commercial proposition,” the executive in the know said.
According to Vijay Kelkar, former petroleum secretary and chairman of the 13th finance commission, it’s innovative technology using horizontal drilling (allowing the gas to be brought out easily) that made this fuel a commercial possibility. Mr Kelkar had floated a paper on how such non-conventional possibilities existed in gas hydrates — deposits in sea — near the Andaman and Nicobar Islands.
Reliance, which has used advanced technology in its exploration projects in the Krishna-Godavari basin, is betting on its expertise in technology to tap unconventional energy sources in the energy value chain. The company has been eyeing unconventional energy sources, such as solar, for some time now. But industry analysts are of the view that a fuel like shale gas is perhaps the best bet as it has already been proved as a commercial proposition.
Source:http://rilrnrlgasdispute.wordpress.com/2009/11/17/ril-hunts-for-shale-gas/
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