-
CENTRES
Progammes & Centres
Location
Checklist of Things Undone
Sunjoy Joshi, Observer Research Foundation
N |
obody expected
The smokescreen around
Incidentally, for all its outward peeve and public face of disappointment, even
Let’s analyse what had been happening between 1990, the D-Year as far as emission action under the
Now let us look at
In the five years from 2002 to 2007,
The spurt in
In all, it is evident that
Readers would do well to remember that along with this runaway growth in manufacturing, China’s intensity of emissions (per $ 1,000 GDP on purchasing power parity basis) rose from 0.94 in 2001 to as high as 1.13 in 2005 — an increase of 20 per cent. During the same period,
The phenomenal growth of heavy industry such as steel, cement, aluminum etc fuelled the surge of infrastructure projects and the construction boom across
In short, what has been jettisoned at
Courtesy: The Pioneer 26 December, 2009
Note: Part IV of the article on Oil & Gas Discovery & Production in India: Historical Milestones, part XIII of the article on Gas in India – Issues, Opportunities and Challenges and part VII of the article on Climate and the Clash between the Diversely Developed will be published in Volume VI, Issue 28
Climate Change –
K K Roy Chowdhury, Energy & Environment Expert,
Continued from Volume VI, Issue No. 26…
Current Scenario and Ongoing Activities: The current decade has been witnessing some of the worst natural disasters the world had ever seen and some significant changes attributed to climate change that worry all sensible persons across the globe. Let me, in this context, indulge in furnishing some well-known statistics below:
Fact sheets of Climate Change include
· Freaky Weather – Cyclone Nargis in
· 1ºC rise in temperature of the globe [estimated around 2ºC in this century by IPCC].
· Rise in Sea level and Submergence of Coastal Areas (nearer home – Sunderbans Delta in West Bengal / Bangladesh, and Maldives are already witnessing submergence; our cities- Mumbai, Chennai and now even Kolkata are vulnerable.
· Loss in Agricultural production [South East Asia’s Greater Mekong Basin running through Tibetan Plateau in China, Myanmar, Thailand, Laos, Cambodia and Vietnam are now increasingly threatened with rising sea water and salt water intrusion with fall in rice and pisciculture yields].
· Loss of Livelihood of weaker and agro-based sections of populace – Livelihood of 165 million people in Mekong Delta alone are facing threats.
· Melting of Ice in polar regions and high altitudes (receding
The spin-off impact of climate change in the Asian Region have also been much talked about, written and discussed on TV Channels. As well known by now, they are visualized in terms of Hunger and Malnutrition, Increased threat to Livelihood, Threat of water scarcity, Loss of natural Eco-systems and Threat to biodiversity, and above all, Risk to human health. The gravity of the situation looms large on us by 2100 as the population increases by 30 per cent. India is said to be the most vulnerable, even some glimpses as below make it clear:
· India’s 7600 km Coastline with 20 per cent of population will be vulnerable to submergence and loss of habitat due to submergence.
· It may displace 7.5 million people and suck 5800 sq. km area into sea.
· Frequency of Cyclone, Tsunami will be 5 – 6 times more.
· Ingress of saline water may extend beyond 35 to 50 km beyond present limit of 15-20 Km.
· 9000 Glaciers covering 38,000 sq. km in the
· Mighty and Lifeline Rivers– Indus, the
· This will trigger Migration of 1.5 billion people in
Without dwelling much on the causes that result in Global Warming and Climate Change, that are already well-known, the findings of the IPCC Report (2007) can briefly be recalled below in this context:
· Atmospheric CO2 concentration is up from 280 ppm (Pre-industrial era) to 384 ppm (2005), rising at the rate of 2 ppm per year. The boundary line for sustainability of the Habitat is 450 ppm and is fast approaching. At the present rate, we shall reach the boundary line by 2033.
· GHG emission up by 70 per cent between 1970 to 2004, due mainly to human activities.
There are indications coming now that the causes could be much more intense. A report by the scientific committee on Antarctic Research (SCAR) on December 01, 2009 stated that melting ice in
Other statistics [ Causes of Global Warming and Climate Change & the Polluter Countries ]
Country |
Per capita CO2 emissions in metric tonnes |
Percentage contribution to global CO2 emissions |
USA |
18 |
30 |
EU |
8 |
- |
Japan |
9 |
5 |
China |
3 |
11 |
Russia |
9 |
10 |
India |
<1 |
6 |
World Average |
3 |
- |
Despite the inherent strength of the
The recently released data from the UNFCCC shows that most developed countries have increased GHG emissions in the course of 1990 to 2007 (instead of the mandate in the Kyoto Protocol). The level of increase in GHG emissions as shown below is highest for
GHG Emission Mitigation Performance in Developed Countries
Developed Country (Annex I- Industrialised) |
Increase in GHG Emission: 1990 – 2007 ( % ) |
Australia Canada Japan Turkey UK USA |
42.6 29.5 14.0 118.1 7.6 20.2 |
ALL ROUND CONCERTED EFFORTS:
While on one hand, the threats arising out of climate change are fast approaching alarming proportions, the debate on the issue has truly intensified (and it should be so) on the other hand, as how best to tackle the menace of climate change. A plethora of events took place in the public domain all over the world engaging the Policy Makers, Economists, Civil societies, Scientists, Technologists and Experts to deliberate upon the issue and recommend the best course of action to save the Earth and the Mankind. Topmost experts including Nobel Laureates have wandered from corner to corner of the Globe to enlighten people with their thoughts and find solutions. So did several country Heads and key officials.
Hitherto unseen, this decade has been marked with such high degree of preparations, efforts and excercises to send a strong message to the Copenhagen Summit on Climate taking place now, to enable the world leaders reach a more comprehensive and effective globally binding Climate Change Agreement post-Kyoto, by building on the foundation the Kyoto Protocol Regime has offered.
to be continued…
The article, updated till Day 1 (December 07, 2009) of the
Energy in
Jacques Lesourne and William C. Ramsay*
Continued from Volume VI, Issue No. 26…
B |
ut a further fall in elasticities will be extremely difficult to achieve. While on the one hand there may be some potential to reduce energy intensity in existing industrial processes, three factors play in the other direction. First, the reform of the small scale sector is slow. Second, the current industrialization of the country will see the share of industry rising in the GDP. Third, the rising income levels will foster lifestyle changes that are more energy intensive (for some estimates, see Planning Commission, Government of India (GoI 2006, p. 19).
India’s GDP has grown impressively since the mid 1980s and more so since 2003–04. It has not just meant homothetic growth but rather a rapid transformation of the share of different sectors in their contribution to the economy. It is interesting to examine the evolution in the sectoral breakdown of economic growth (Table 17).
Table 17. Sectoral growth rates of real GDP (1999-2000 prices) (%)
Source: Economic Survey 2007–08, Government of
It is well known that services have grown rapidly in
Given this disequilibrium in sectoral evolution, the challenges are even greater for the public administration in
On trends in demand and economic growth viz. societal change and sustainability
Macroeconomic extrapolations based on current energy structure and expected economic growth suggest that India’s energy requirement is expected to increase further by three to four times (GoI 2006) within a span of 25 to 30 years. Thus, the predominance of coal as a fuel to
Yet this growth of energy demand is linked to a “total” social transformation now in progress in
Looking at the details of this pivotal and often neglected segment of the population, one finds that nearly 782 million people in
Table 18. Fuel for residential sector 2005 (Mtoe)
Source: Energy Balances of Non-OECD Countries, 2004–2005, International Energy Agency,
Reducing the need for noncommercial energy service implies a shift toward more sophisticated energies. In particular, this implies a sixfold increase in electricity generation capacity from 157 GW in 2006–07. Electricity’s share will increase with modern economic activity, as electricity is one of the most effective poverty alleviators.
Renewable energy accounts for only 6% of today’s total installed capacity. To augment energy supplies while targeting reduced emissions, the Ministry of New and Renewable Energy has launched an active program for tapping the large potential of renewable energy in the country (see Table 21).
Microeconomic solutions may thus be pursued in order to find macroeconomic and environmental sustainability. But then what are the implications for the evolution of world energy prices? Added to
The increasing role of
Table 19. GDP per capita for year 2005 (US$)
Source: UN Statistics Division.
Table 20. Number of persons undernourished (in millions)
Figures in parenthesis share in total population (%)
Source: State of
Table 21. Potential and installed capacity of renewable sources
Source: Ministry of New and Renewable Energy (MNRE), http://mnes.nic.in/
By contrast, and to put Malthusian projections for India into some perspective, it is important to note that India’s total primary energy consumption was only 3.9% of world consumption4 for the year 2006.
India’s GDP has indeed grown impressively since the mid 1980s and more so in last 5 years. But even after such growth in GDP,
This question of high energy consumption in India can be addressed rationally by asking whether Indians are consuming more energy per unit of output or per person and if India’s growth is really leading to reduction in poverty (social efficiency in energy intensity rise) in which case it contributes to the human and social global capital. This question assumes importance because if growth of the economy is not leading to improving performance in poverty reduction then increased energy needs for this growth would be a matter for increased concern. This would not only concern local efficiency, but because one of the sources for reducing global emissions is through trading quotas and improving efficiency faster in emerging and presumably developing economies.
Figure 9. Energy use per $ 1,000 of GDP (in PPP)
Source: Millennium Development Indicators, http://millenniumindicators.un.org.
Winding up on macro trends and micro shifts
Absolute energy needs for
Energy intensity of the
Further, with such a large percentage of the population still living in a poorly productive informal labor pool, this will be a determining factor—as of today difficult to assess—of the amount India’s industrial integration into the world economy will lead to “formalizing the informal sector” (see the works of Amitabh Kundu)6.
Despite these uncertainties,
While energy consumption in the organized industrial sector and in the urban domestic sector are increasingly a subject of concern, the role of noncommercial energies in the rural sector and of inefficiencies in the unorganized sector still play a major role in sustainability.
Figure 10. Commercial energy consumption per capita
Source: UN Statistics Division.
As a consequence, the technological and environmental performance of
Appendix B
Table B1. Conversion efficiency of fuels used for cooking
Source: http://www.terienvis.nic.in/stat_table/stat_tab.htm#1_5
Notes:
3. $1.25 is the recently revised poverty line for international comparision. In
4. BP Statistical Review 2008, http://www.bp.com/multipleimagesection.do?categoryId= 9017892&contentId=7033503
5. In addition to this, growth is highly skewed region-wise. The poorest of the states like
6. “Formalising the Informal Sector? Indian Labour Market in a Globalizing World.” Inaugural address, Amitabh Kundu, Chair on Indian Economy, Sciences-Po Paris, 27 March 2008, unpublished.
* Editors
to be continued…
Courtesy: ENERGY IN
NEWS BRIEF
NATIONAL
OIL & GAS
Upstream
Reliance
December 22, 2009. Energy major Reliance Industries said it had made a gas discovery in one of its exploration blocks in the Krishna Godavari basin off the country's east coast. The potential commerciality of the discovery was being evaluated through more data gathering and analysis, Reliance Industries said in a statement. Reliance Industries holds a 90 percent interest in the block, which covers an area of 3,288 square kilometres, and Hardy Exploration and Production India holds the rest.
Reliance's Lyondell buy seen unlikely in 2009
December 22, 2009. Reliance Industries' bid to buy bankrupt petrochemicals firm LyondellBasell is unlikely to result in a deal in 2009 as the target evaluates its options, analysts and bankers say. Luxembourg-based LyondellBasell filed an amended reorganisation plan with a
ONGC operations hit in
December 21, 2009. ONGC operations in upper
Functioning of the public sector oil exploration company's headquarters at Nazira was also affected. A halt in oil flow during winter would cause loss in terms of both money and natural resources as there was danger of wax formation in the oil wells, which would negatively affect oil exploration.
ONGC to invest Rs 23.8 bn in upgrading equipment in
December 16, 2009. Oil and Natural Gas Corporation is investing Rs 23.8 bn in refurbishment of equipment at its facilities in
The investment is part of the Rs 46.08 bn Assam Renewal Project involving comprehensive replacement and expansion of equipment and facilities, drilling of hi-tech wells and revamping of drilling rigs.
Hyderabad-based Sairama Engineering Enterprises, Megha Engineering, in consortium with Russian company Volgo bagged the contract for the Assam Renewal Project. The prime objective of the project is to revamp, upgrade, modernize, install real time process equipment at the company's units at Lakwa, Lakhmani, Rudrasagar, Geleki and Moran in Sibsagar District in the state.
Refiners' cash woes may derail clean fuel plan
December 22, 2009.
This is based on a “conservative calculation” of Rs 500 mn per refinery, which means that IOC alone (with its network of 10 refineries in the north, south, east and north-east) would need to fork out Rs 5 bn or more.
HPCL has two refineries in Mumbai and
Transportation / Trade
Aegis Logistics acquires Shell Gas (LPG)
December 21, 2009. Aegis Logistics said it has acquired Shell Gas (LPG)
Policy / Performance
Govt may pay cash to state oil firms
December 22, 2009. The government is likely to offer cash instead of bonds to state-run oil firms for compensating them for selling fuel at lower than market price. The oil ministry had sought 200 billion rupees of bonds for state-run firms as compensation during the full fiscal year ending March 2010.
OVL joins hands with Raspol, Petronas for Venezuelan fields
December 22, 2009. Oil and Natural Gas Corporation has replaced Reliance Industries with Repsol YPF SA,
Gas regulator to invite bids for 5 pipeline projects
December 22, 2009. The Chairman of Petroleum and Natural Gas Regulatory Board, Mr L. Mansingh, has said that the board was in the process of inviting bids and expression of interest for five more pipeline projects to expand the grid and facilitate city gas distribution, both domestic and commercial. The lines include Mehsana-Bhatinda, Bhatinda Srinagar, Mallavaram-Bhilwara, Surat-Paradip and another line from
The board has also identified 330 geographical areas (GAs) around cities and towns across the country along the natural gas pipeline network for development of city gas supply network. In addition to cross-country lines, the Government has identified 250 cities to be covered by the city gas distribution networks with an investment of nearly Rs 500 bn.
Parts of AP to get piped gas supply by July
December 22, 2009. The Andhra Pradesh Chief Minister, Mr K. Rosaiah said that gas supply through a pipeline grid from the Krishna Godavari basin to first set of users is likely to commence by July 2010 in some parts of the State. The first online CNG based depot will be commissioned in April 2010. Mr Rosaiah said approximately 1,000 connections would be initially supplied by July next and gradually ramped up. The Chief Minister appealed to the Centre to help revive the ailing Fertiliser Corporation of India (FCI) plant at Ramagundam and also clear the setting up of a 26-lakh-million-tonnes-per-annum (mpta) ammonia-urea plant at
Sugar mills asked to meet ethanol supply obligation
December 22, 2009. The Union Food and Agriculture Minister, Mr Sharad Pawar, has asked sugar mills not to default on their ethanol supply commitments to oil marketing companies (OMC) for the sake of “short term gains”. The Minister said that he had been given to understand by the OMCs “that some sugar factories have not supplied ethanol according to contracts entered into by them (under the 5 per cent ethanol blended petrol programme)”. In their original three-year contract with the OMCs (which ended on October 31), the mills were required to supply ethanol at a fixed ex-distillery price of Rs 21.50 a litre. Many of them, however, defaulted, preferring to supply to potable liquor makers and alcohol-based chemical units, who were offering higher rates.
SC reserves verdict on RIL-RNRL gas dispute
December 19, 2009. The Supreme Court reserved its verdict on the gas supply dispute between Reliance Natural Resources (RNRL) and Reliance Industries (RIL) after the conclusion of arguments in the case. The hearing on the case was spread over 26 days since its commencement on October 20. In the last day of the arguments, the government again staked its claim over the title or ownership of the KG basin gas fields.
The bench has been hearing the dispute over the supply of 28 million units of gas for 17 years at $2.34 per unit to RNRL from the gas fields of Krishna-Godavari basin, which had been awarded to Mukesh Ambani’s RIL as part of the New Exploration or Licensing Policy (NELP) which allowed the private sector to produce and distribute oil and natural gas. The price, tenure and quantity were based on a pact between the Ambani family entered into in 2005. But RIL later said it will only sell gas for $4.20 per unit to RNRL, claiming this was the consideration fixed by the government.
ONGC declares gas finds
December 18, 2009. State-run Oil and Natural Gas Corp (ONGC) said it has made two gas discoveries while declaring Rs 18 per share interim dividend for this fiscal. The company found gas in the well GK-28-1 drilled in the
India against raising price for
December 17, 2009.
In June 2005,
ONGC was examining the viability of investment in Iranian gas projects. Investment would depend on the viability of the projects as established through a detailed due diligence exercise, which would also cover the aspect of LNG pricing.
On the Farsi Block the ONGC Videsh Ltd (OVL)-led consortia comprising Indian Oil Corporation and Oil India Ltd had submitted to National Iranian Oil Company (NIOC) on November 26, 2008, a feasibility report for oil discovery in the Block.
Gas row: RNRL wants 'comprehensive end'
December 17, 2009. Reliance Natural Resources (RNRL) has told the Supreme Court that it wants a “comprehensive end” to the gas dispute between the Ambani brothers in the national interest. The company pleaded before the court not to send the dispute to any other forum for further adjudication.
RNRL has always advocated that the dispute can be resolved by mutual discussion but the other side has stated that only the Supreme Court can decide the issue.
Government has every right to regulate gas price: RIL
December 17, 2009. Mukesh Ambani-led Reliance Industries Ltd (RIL) told the Supreme Court that the government can even undo a judicial verdict, if it is held that it has no powers to regulate gas prices based on production sharing contracts. RIL counsel Harish Salve made this assertion before the three-member bench of Chief Justice K.G. Balakrishnan, in his counter-arguments in the legal battle with Reliance Natural Resources Ltd (RNRL) over gas supplies from the Krishna-Godavari basin.
ONGC lost Rs 47.45 bn on gas sales in 2008-09
December 16, 2009. State-owned Oil and Natural Gas Corp (ONGC) lost a whooping Rs 47.45 bn in revenues on selling natural gas at a rate below production cost in 2008-09. ONGC and state explorer Oil India Ltd (OIL) sell gas at government-controlled rates, called APM (Administered Price Mechanism) price. The APM price for ONGC currently is Rs 3,200 per thousand cubic meters (or Rs 3.2 per unit). ONGC's total revenue loss on the 17.71 billion cubic meters gas it sold at APM rates last fiscal came to Rs 47.45 bn. The Oil Ministry has circulated a draft Cabinet note for raising price of gas under APM to Rs 4,142 per thousand cubic meters ($2.32 per mmBtu). APM rates were last revised in June 2005 and the hike proposed is based on Tariff Commission's recommendation that subsequently went into the issue.
POWER
Generation
Adani Power says Rajasthan utility to buy 1,200 MW
December 22, 2009. Adani Power Ltd said its unit, Adani Power Rajasthan Ltd, has won an letter of intent from the Rajasthan utility for purchase upto 1,200 mega watt of power on a long-term basis. With this the company's total long-term power selling agreement comes to 5,900 mega watt, it said in a statement to the exchange.
BHEL bags Rs 6.4 bn order from Adhunik Power
December 21, 2009. State-run BHEL said it has bagged another Rs 6.4 bn order from Adhunik Power and Natural Resources for supplying equipment for the company's thermal power project in Jharkhand. BHEL has bagged a repeat order from Adhunik Power and Natural Resources for supplying boilers, turbines and generators for 270 MW unit of the company's Jharkhand power project. The order for the first 270 MW unit of the same project has also earlier been placed on BHEL.
Maoists target hydel power unit in Orissa
December 20, 2009. Armed Maoists attacked a hydel power unit at Ballimela in Malkangiri district, paralysing energy generation at the plant. Over 20 heavily armed ultras attacked the unit run by Orissa Hydro Power Corporation (OHPC) some portions of the plant and overpowered those on duty.
NEEPCO gets go ahead for 500 MW thermal project
December 16, 2009. The Meghalaya government has okayed the execution of the 500 mw thermal power project by the state-run North Eastern Electric Power Corporation Limited (NEEPCO). The power company has selected Narengri in East Garo Hills district as the site and the coal would be brought in from the neighbouring mines of South and East Garo Hills. NEEPCO had identified the project area and had carried out preliminary survey works, before the MoU signed with the government was kept in suspension for more than a year along with four other deals in the wake of a controversy over allotment of projects to private companies. The preparation of DPR would take about a year, while the project is expected to be completed in about four years’ time.
Transmission / Distribution / Trade
Powering an
December 18, 2009. In
Govt offers 3.8 billion rupees in subsidy for wind power
December 17, 2009. The government would offer 3.8 billion rupees in generation-based subsidies to wind power projects feeding power into the national grid, its ministry of new and renewable energy said. The subsidies are earmarked for developers till 2012, the ministry said in a statement. Wind power projects will be given 0.5 rupees per unit of power fed into the power grid with a ceiling of 6.2 million rupees per mega watt for a minimum 4 years and maximum 10 years, the ministry added. The subsidies will be applicable to projects of up to 4,000 MW and detailed guidelines will be issued later, it added.
Pact with
December 22, 2009. India and Bhutan stepped up their engagement in the power sector by signing new pacts, including a memorandum of understanding for four new hydel projects and for initiating consultancy services aimed at the preparation of a transmission grid master plan in the Himalayan nation. The MoUs on initiating the detailed project report (DPR) work cover the Amochu Reservoir (620 MW), Kuri-Gongri (1800 MW), Kholongchu (486 MW) and Chamkharchu-I (670 MW) projects in
Meghalaya revives power projects
December 22, 2009. The Meghalaya Government has revived two giant hydro-electric projects, giving its nod to two private companies to develop them on build-own-operate-transfer basis. The Hyderabad-based Athena Power will develop the 450-MW Kynshi Stage One Project, while Jai Prakash Power Ventures Ltd will execute the 450 MW Kynshi Stage Two project — both over Kynshi river in West Khasi Hills district. The projects, along with three others, were kept in suspension for two years after several protests from organisations. The protesting groups had alleged that the Government had violated the State’s power policy by not going for international competitive bidding to optimise benefits.
Gas supply from KG-D6 basin has improved power supply: Govt
December 22, 2009. The government has said gas from RIL's offshore block KG-D6 basin to power plants has resulted in improved electricity supply situation in the country. It said power supply improved during April to November this year compared to the same period in 2008-09 after the allocation of KG basin gas to power plants on a priority basis. Gas based generation during April to November period this year increased to 62,036 million units compared to 59,430 million units during the same period last year, representing a growth of about 31.4 per cent.
Parental identity crisis may cost Deep CH4 CBM blocks
December 21, 2009. The government is set to deny the natural gas blocks it awarded to Deep CH4 for failing to establish the credentials of parent company Coal Gas Mart, a move that will mire the bidding process in legal dispute and delay the development of a key source of energy.
Ahmedabad-based Deep CH4 had emerged as the biggest winner of the fourth round of coal-bed methane (CBM) bidding in October, securing as many as seven of the eight blocks that got companies like Australia’s Arrow Energy. Kinley Exploration of the
Himachal incentives for expediting hydel projects
December 18, 2009. The Himachal Pradesh government has decided to give incentives to hydro electricity projects in the state, which are completed ahead of the schedule period. The incentive system has been introduced to motivate the party to complete the project on time. Under the incentive system, if the project is completed a year before stipulated five-year deadline, the power firms will have to provide only 11% free power to the state instead of the mandatory 12%. Similarly for every year delayed after the completion date the power plants will have to supply 1% additional free power above the mandatory 12%. Besides, the state government is also planning to take strict action against defaulters.
REC to fund majority of power projects, says Shinde
December 18, 2009. The Union Power Minister, Mr Sushil Kumar Shinde, said that the opportunities for financing power infrastructure projects in the coming years are colossal and the Rural Electrification Corporation (REC) will have a sizable share in funding them. Informing the Consultative Committee of the Members of Parliament for Power, the Minister said that as a nodal agency for monitoring and channelising funds under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), REC would continue to take up the socio-economic responsibility of village electrification and contribute to the mission of ‘Power for all by 2012'. The Government estimates for investments in the power sector, in order to meet the targets for the Eleventh Plan, stand at Rs 10,316 bn. This includes funds for adding power generation capacity, repair & maintenance of existing power plants, expansion and upgrading of transmission and distribution infrastructure.
NEEPCO to implement Narengre thermal project
December 18, 2009. The 500 mw Narengre thermal project in Meghalaya will be implemented by North Eastern Electric Power Corp Ltd (Neepco). The decision was taken by the state cabinet recently. The project which was initiated in 2007 was held in abeyance after it generated much political heat. State circles said coal from the neighbouring mines of South and East Garo Hills would be used for the project.
NPCIL plans to raise Rs 850 bn to fund projects
December 18, 2009. Nuclear Power Corporation of India (NPCIL) has raised around Rs 28 bn through a mix of bond and debt, and plans to raise foreign currency funds for part-financing its forthcoming atomic reactors. NPCIL plans to raise around Rs 850 bn to finance its projects including, power generation, mining and forging through joint ventures with foreign and local companies.
Power ministry, planning panel spar over transmission bidding
December 17, 2009. The creation of power transmission infrastructure could get caught in a turf battle between the power ministry and the Planning Commission. The power ministry has rejected the standard bidding procedure suggested by the Planning Commission for public-private partnership in transmission projects arguing the new procedure would create confusion among investors.
The commission has shot back saying the model transmission agreement (MTA) has been drafted after inter-ministerial discussions and stakeholder consultations, and is based on the model issued by the finance ministry for PPP projects. The ministry has argued that the bidding process in the power sector is governed by procedures laid down in the Electricity Act and cannot be replaced by the procedure followed for other PPP projects in the infrastructure sector. The ministry’s objection comes after the Planning Commission circulated a MTA for PPP in intra-state transmission projects where private investment is invited.
NTPC not to suffer Rs 300 bn loss: Govt
December 17, 2009. State-run NTPC will not suffer Rs 300 bn loss if it was to get natural gas at prices higher than those committed by Reliance Industries five years ago, Power Ministry has told Parliament. NTPC had taken RIL to court seeking implementation of the firm's 2004 bid to supply 12 mmscmd of gas at $2.34 per mmBtu for 17 years.
Public hearing on TNEB's plan for ‘reliability charge'
December 16, 2009. The Tamil Nadu Electricity Regulatory Commission (TNERC) will hold a public hearing on the Tamil Nadu Electricity Board's proposal to levy a reliability charge on HT consumers seeking exemption from the evening peak-hour power cut. According to a press release from the TNERC, the public hearing will give the industries and the public a chance to give their inputs on the TNEB's proposal to levy a reliability charge of up to Rs 7 a unit between December 2009 and May 2010. This will be applicable for HT consumers who want to be exempted from the evening peak-hour power cut.
INTERNATIONAL
OIL & GAS
Upstream
Greymouth wins mining permit for NZ's Moturoa oil field
December 22, 2009. A mining permit for the historic Moturoa oil field in and around the port area of New Plymouth city has been awarded to the joint venture between Greymouth Petroleum and Ngati Te Whiti Hapu joint venture. The 53 sq km PMP 50509 is about one third onshore and two thirds offshore. Greymouth said that increasing subsurface pressures in recent years has re-activated petroleum production in the Moturoa field area.
PTTEP, CNOOC win Hassi Bir Rekaiz Block in
December 21, 2009. Algeria, Africa PTTEP Algeria Company Limited (PTTEP AG), a subsidiary of PTTEP, together with CNOOC International Limited, have been selected as the successful bidders of block Hassi Bir Rekaiz in Algeria 2009 Bid Round. The consortium consists of PTTEP AG (the Operator) and CNOOC International Limited with the participating interests of 50% and 50% respectively. Block Hassi Bir Rekaiz is located in the Southeast Zone of Algeria with the approximate area of 5,670 square kilometers. It is approximately 115 kilometers east of the Bir Seba oil field, which is being jointly developed by Sonatrach (
Petrobras' oil production up nearly 8 pc in November
December 18, 2009. Petrobras' average oil and natural gas production in
VOG drills ahead at Logbaba project in
December 18, 2009. Victoria Oil & Gas has reported on its Logbaba gas and condensate project in
Changqing oilfield records highest annual natural gas output
December 17, 2009. Changqing oilfield's natural gas output reached 18.1 billion cubic meters by December 10, and the annual output will hit 19.54 billion cubic meters, well exceeding its annual target of 18 billion cubic meters and posting a net increase of five billion cubic meters over last year. According the China Petroleum Daily reports, Changqing oilfield's newly added natural gas production capacity has reached 3.8 billion cubic meters in 2009. It also put Sulige gas field into operation in 2009, adding natural gas production capacity of 10 billion cubic meters per year.
Devon adds Itaipu pre-salt find to Anadarko's Wahoo success
December 17, 2009. Devon has announced a pre-salt oil discovery on block BM-C-32 in the
Downstream
Black & Veatch, Chemtex to build LNG plant in
December 22, 2009. Nearly 4.6 million people living in Guang'an City, P.R. China will soon have greater access to natural gas, resulting in new jobs and cleaner air.
China Natural Gas Co. Ltd, (CNGC) selected Black & Veatch and Chemtex to design and build a liquefied natural gas (LNG) facility that will provide area residents with a cleaner and more economical fuel source for transportation, as well as industry and home use.
The facility will provide natural gas supplies to
CNPC forms refining JV in
December 18, 2009. China National Petroleum Corp. (CNPC),
Graham Corp. wins refinery orders
December 18, 2009. Graham Corp., a manufacturer of critical equipment for energy, petrochemical and other process industries, announced that it has been awarded three orders in excess of $9 million. The orders are for custom-engineered ejector systems to be installed at new refineries in the Middle East and
The new Middle East and Chinese refineries will have capacities of 400,000 and 200,000 barrels per day, respectively, while the
The equipment for the
Refiners reshape ops with real-time monitoring
December 18, 2009. Though often written off as industrial dinosaurs, the oil-refining industry is reshaping how it does business by creating virtual war rooms where executives and managers can keep a real-time grip on refinery operations. Valero Energy Corp and Royal Dutch Shell PLC among other refinery owners, have been spending millions of dollars in the past two years to link up thousands of pieces of equipment into company-wide Internet-based networks to more effectively monitor operations, supply, energy consumption and environmental issues. The aim for these companies is to prevent operational snags and to fix problems before they result in major accidents, such as the 2005 explosion at BP PLC's
Oil Search: Funding secured for PNG LNG
December 16, 2009. Australian company Oil Search Ltd says lenders to the Papua New Guinea liquefied natural gas (PNG LNG) joint venture signed documents providing $US14 billion ($A15.46 billion) in funding for the project.
Oil Search said in a statement that up to $US14 billion of commitments from lenders had been secured, more than enough to meet the estimated $US13 billion of debt required for the Project, at an agreed 70 percent gearing. Oil Search, which has a 29 percent stake in the project, said $US8.3 billion would come from export credit agencies, $US1.95 billion from a banking syndicate and $US3.75 billion of co-lending from ExxonMobil.
The PNG LNG project is a joint venture led by Esso Highlands Ltd, a subsidiary of energy giant ExxonMobil. The massive project is tipped to generate 6.6 million tonnes of LNG per annum for about 30 years. Australian listed companies Oil Search and Santos Ltd both have stakes in PNG LNG, as does Japan's Nippon Oil, and PNG government groups.
Transportation / Trade
Turkmen gas exports to
December 22, 2009. Russia and
Louisiana pipelines change hands
December 16, 2009. Enterprise Products Partners has purchased three intrastate natural gas pipelines that originate in
Policy / Performance
CNPC gets exclusive operating rights for China-Burma oil pipeline
December 22, 2009. China National Petroleum Corp (CNPC) has signed an agreement with
The pipeline company will also enjoy tax concessions and customs clearance rights, said a report on the CNPC. The agreement stipulates the
NZ methane hydrates may soon be developed
December 22, 2009. A gas industry using frozen gas hydrates below the seabed off the East Coast could be developed in the near future thanks to rapid global technical developments. 'Sweet spots' containing high concentrations (about 4-10%) of methane hydrate found in sheets under the seabed off the East Coast may contain about 8.5 - 21 trillion cubic feet (TCF) of recoverable gas.
Economic downturn delays
December 22, 2009. Angola's oil minister said the global economic downturn will slow the completion of
Petrobras awards FEED contract for floating LNG unit
December 21, 2009. Petrobras, BG Group, Repsol and Galp Energia, partners in the joint venture aimed to build an onboard natural gas liquefaction unit (ONGU) to use the gas from the pre-salt area, signed the agreements with the best bidders in the tender to develop the FEED (Front End Engineering and design) for the liquefaction unit. The winners were Saipem (
Indonesian gas pipeline to be submerged prior to May 2010
December 21, 2009. The gas pipeline of PT Kodeco Energy Co. Ltd, in
Japanese-Malaysian partnership to develop Iraqi oil field
December 21, 2009. Malaysia's state-owned oil company Petronas and the Japan Petroleum Exploration Company (Japex) signed a deal to develop southern
Iraq's state oil company will hold a minority share in the partnership.
Africa oil gets go-ahead to drill first Puntland well
December 21, 2009. As announced by Range Resources, the Cabinet of the Puntland Government approved the amended agreements modifying the terms of the existing Production Sharing Agreements ("PSAs") made in respect of the Dharoor and Nugaal Valley Exploration Areas which was still subject to ratification by the Parliament of the Puntland State of Somalia.
The Company is pleased to announce that the Parliament has formally approved and ratified these amended agreements paving the way for Africa Oil to now commence operations and drilling of the first exploration well in Puntland in more than 16 years.
Oregon gas pipeline, LNG project gets FERC clearance
December 18, 2009. Pacific Connector Gas Pipeline, LP announced that the Federal Energy Regulatory Commission (FERC) has issued a certificate order approving an application to construct and operate the Pacific Connector Gas Pipeline, a 234-mile, 36-inch diameter natural gas pipeline. The FERC has also authorized the Jordan Cove Energy Project, LP to site, construct and operate the Jordan Cove Energy LNG terminal.
Bolivia to receive extra money for NGL sold to
December 17, 2009. Bolivia will start receiving the first additional payments within 30 days from sales of natural gas liquids to
Development plan for Feixianguan gas reservoir approved
December 17, 2009.The overall development plan (ODP) for developing Feixianguan gas reservoir in the Luojiazhai gas field in the southwestern region has recently received approval from the National Development and Reform Commission, China's top economic planner. The NDRC has approved CNPC and US-based Unocal East China Sea Limited to jointly develop the Luojiazhai gas field, which covers Dazhou city in
Federal judge lifts ANF drilling ban
December 16, 2009. Private oil and gas drilling on the
U.S. District Judge issued a 53-page memorandum opinion and order which prohibits the Forest Service from requiring an environmental assessment before drillers can access their mineral rights below the service in the ANF; ends the drilling ban; reinstates the previous rules; dismisses the actions brought by Warren County and the Allegheny Forest Alliance; and prohibits further implementation of a settlement agreement with several environmental groups.
POWER
Kenya Electricity seeks company to build 90 MW power plant
December 21, 2009. Kenya Electricity Generating Co., the biggest electricity producer in the East African country, is seeking a company to build a 90 megawatt power plant in the capital,
Work starts on expanded H-Power plant
December 21, 2009. The city broke ground on the long-awaited expansion plans for
Processing capacity will increase to 900,000 tons at the 28-acre plant, which is owned by the City and
Saudi Electricity gets 3 Rabigh plant bids-source
December 17, 2009. Three international firms have made bids ranging between $3.94-$4.34 billion to build a 2,400 megawatt power (MW) power plant for state-run Saudi Electricity Co. South Korea's Doosan Heavy Industries & Construction is the lowest bidder with 14.8 billion riyals ($3.94 billion).
Hyundai Heavy Industries' bid came at 14.9 billion riyals and that of
Transmission / Distribution / Trade
Zambia’s Copperbelt Energy spends $70 mn to supply mines
December 22, 2009. Zambia’s Copperbelt Energy Corp. spent $70 million this year in boosting electricity transmission to the country’s mining industry. Half the money was spent on providing power connections to Konkola Copper Mines, owned by Vedanta resources Plc, and the Konkola Deep-Mining Project in Chililabombwe.
Power pathway coming to Millsboro
December 22, 2009. As part of Pepco Holdings' $1.2 billion Mid-Atlantic Power Pathway project, a 640-kilovolt transmission line and conversion station will be coming to the town by 2014. Although the town will have little input on the plan it will ensure more reliable electricity. Customers can expect a 30 cent per month increase to compensate for the new pathway. Electricity producers increase their charges during peak usage periods because the transmission lines must compensate for the increasing demand.
Power cuts to go up in Nepal
December 22, 2009. Nepal Electricity Authority (NEA) informed that it is coming out with a new load-shedding schedule. According to NEA the weekly load-shedding hours is slated to rise to 42 hours per week from the existing 28 hours. With the new schedule citizens will be reeling under a six-hour power cut daily. NEA has said that it was compelled to come up with a new schedule as the water level in the major hydro projects has decreased.
Kyrgyzstan starts new hydro plant, neighbours worry
December 22, 2009. Kyrgyzstan began to dam a key Central Asian river to build a new hydroelectric power plant, a project criticised by neighbouring nations who fear it will disrupt water supplies. Water sharing is a contentious issue in
EU to negotiate nuclear agreement with
December 22, 2009. The Council of the European Union mandated the European Commission to negotiate a broad nuclear partnership agreement with
The negotiations for a broad nuclear agreement are necessary because of recent developments, such as the latest EU enlargements and the renewed interest in nuclear energy as an alternative to reduce CO2 emissions from energy generation, the press release said.
Renewable Energy / Climate Change Trends
National
Researchers map 'dinosaur tree' genome
December 22, 2009. Researchers have sequenced the chloroplast DNA of the ancient Wollemi Pine, known as the 'dinosaur' of the tree kingdom, which survived 200 million years of shifting continents and changing climates.
Using next-generation sequencing machines in the Ramaciotti Centre for Gene Function Analysis, University of New South Wales (UNSW) students produced a draft sequence of the approximately 180,000 nucleotides of the DNA code of the Wollemi's chloroplast genome.
The Wollemi (Wollemia nobilis) was known to science from fossil records but was thought to be extinct until 1994 when David Noble discovered it in a remote rainforest canyon in
India 'pleased' with climate summit
December 22, 2009. India says it is pleased at the outcome of the recently concluded climate change talks in
Mr Ramesh said all of
In fact, he added, the BASIC group of countries which includes
Commercial airline flights responsible for 4-8 pc of surface global warming
December 22, 2009. The first analysis of emissions from commercial airline flights shows that they are responsible for 4-8 percent of surface global warming since surface air temperature records began in 1850, which is equivalent to a temperature increase of 0.03-0.06 degree Celsius overall. According to a report in Nature News, the analysis was done by atmospheric scientists at
The results of the analysis also show that in the
50-paise sop will boost wind power capacity, say turbine makers
December 22, 2009. Wind turbine manufacturers anticipate a growth in wind power capacity addition, thanks to the recent 50 paise a kWh generation incentive announced by the Centre. They feel that nearly half the new capacity will come through projects that avail themselves of the benefit, named Generation-Based Incentive (GBI), with large multi-national independent producers of wind energy contributing a major share.
The Indian Wind Turbine Manufacturers' Association, a representative body of turbine manufacturers, said that the GBI made wind power more attractive for investors, with the pay-back period coming down and the internal rate of return increasing.
Under the scheme, wind power projects will be eligible for either the accelerated depreciation method, already available, or the GBI. The GBI will be given for a period not less than four years and up to a maximum of 10 years, with a cap of Rs 62 lakh a MW. The total disbursement in a year will not exceed Rs 15.50 lakh a MW, or a fourth of the limit, during the first four years.
Pune to soon get a Rs 150 mn solar thermal power plant
December 21, 2009. A solar thermal power plant producing 250 KW for 10 hours of the day using solar power and bio waste to run the plant will be set up here on a pilot basis. The residents of village of Shive, about 50 kms from Pune, behind the Talegaon MIDC, which houses international giants like General Motors, JCB, Posco, L&T, INA Bearings, etc, expect the Rs 150 mn plant to be operational in the next 18 months.The Department of Science and Technology of the Central government has put in Rs 130 mn for this project and the balance Rs 20 mn will be used for Thermax’s share.
US can challenge
December 21, 2009. A top White House adviser has described the limited, non-binding
Nuclear Power Corpn's uranium demand likely to go up 10-fold
December 21, 2009. Nuclear Power Corporation of
Incentive scheme likely to draw more FDI in wind power
December 20, 2009. The Ministry for New and Renewable Energy expects a sharp increase in the foreign direct investment (FDI) in wind energy as a result of the generation-based incentive scheme for grid connected wind power projects. According to the Ministry, wind power potential has been estimated at 48,500 MW taking sites having wind power density greater than 200W/sq. The FDI inflow in wind energy has seen a quantum increase from $1.43 million in 2006-07 to $31.56 million in 2007-08. The number though declined in 2008-09 to $27.89 million. With the launch of the generation based incentives scheme on December 17 for grid connected wind power projects, the Ministry is looking at broadening investors' base by attracting more FDI and independent power producers (IPPs).
Suzlon repays $780 mn loan, lowers debt by 15 pc
December 19, 2009.
The promise of an alternative fuel
December 18, 2009. While it still seems very expensive to set up a mega solar plant, the charm of endless, almost free fuel is difficult to ignore. The Copenhagen Summit has highlighted that the main chunk of CO2 is created by our electricity needs. Almost 50% of the pollution of the world comes from here and this if anything, is a reminder for a country like
Global
China blasts claim it 'hijacked' climate talks
December 22, 2009. China dismissed a British editorial accusing it of "hijacking" the UN-sponsored climate talks in
Australia to do 'no more and no less' than others on climate
December 22, 2009. Australia will do "no more and no less" than other nations to fight climate change, the government said, as it prepared to set its greenhouse gas pollution targets after talks in Copenhagen. The centre-left Labor government wants to introduce a carbon trading emissions scheme which could reduce the pollution responsible for global warming by up to 25 per cent of 2000 levels by 2020. But following the global summit on climate change in
China,
December 21, 2009. China, the world's largest emitter of greenhouse gases, lauded the outcome of the U.N. climate conference, which produced a nonbinding agreement that urges major polluters to make deeper emissions cuts, but does not require it. Foreign Minister Yang Jiechi said the climate talks that brought together more than 110 world leaders in
Making the alternative fuels push
December 21, 2009. As world leaders huddled in
Standard Bank in carbon emission reductions deal
December 17, 2009. Standard Bank and
In terms of the agreement, Standard Bank will purchase the carbon dioxide (CO2) emission reductions generated by Guodian Power's three newly-built hydropower plants located in north-eastern
After the three hydropower plants are built and successfully registered with United Nations Framework Convention on Climate Change, four million tons of CO2 emission reductions were expected to be generated during the 21-year crediting period. Some 320 000 tons of CO2 emission reductions would be realised before 2013.
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