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Sep 2019

The LNG market ahead is going to be the most volatile ever.
8Prices are going low on account of a massive doze of over supply and they are going to stay low in the face of cooling demand.
8Prices will rise again but the timing is not certain, but it will not be for the next two years.
8There will then be yet another crash again, according to latest demand-supply analysis
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The typical LNG contract is going through a dramatic makeover
8Fixed contracts are being torn up and replaced with those which contains all sorts of provisions
8From price renegotiations to arbitration, everything seems to be changing rapidly
8An economic slowdown that India is facing could well be a golden opportunity to sweep open the Indian gas market. One part of it is the downstream cleanup that the likes of PNGRB is doing, but there is also a need to bring overall gas prices down.
8And that can only happen if we reopen the long term contracts which are today keeping Indian prices high
8Strong vested interests, such as the fact that domestic producers of gas, such as RIL, are trying to sew up gas supply contracts at rates equal to prevailing long term LNG conracts and strong bilateral relationships with countries such as Qatar may prevent us from reopening such contracts, but that will not be in India's long term interest
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China alone is the biggest driver of LNG demand in the world
8But there are many uncertainties ahead as pipeline imports begin to bite at LNG demand
8The world did turn its attention on India as another China in the making but then there was disappointment over it.
8India does not offer the same opportunity, it seems.
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For reference purposes the website carries here the following tenders:
8Procurement of Radiant Coil Assemblies for GCU-I & GCU-II Details
8Mechanical AMC Contract of IOP&S, GPU-LPG & GCU Plant Details
8Coated Line Pipes for Srikakulam Angul Pipeline Project Details
8Procurement of Plug Valves Details
8Charter Hire of a 1400 HP capacity land Drilling Rig Package with requisite manpower Details
8Supply of Corrosion Inhibitors Details
8Emission Control System (Vapor Recovery System) at Dharmapuri Terminal Details
8Piping Works for LPG Pipelines and other associated Civil Works at LPG Bottling Plant Details
You can also click on Tenders for more

For reference purposes the website carries here the following Newsclips:
8Houston prepares to say ‘Howdy Modi’ as US gas producers eye deals Details
8Aramco tells Indian refiner it will get oil: source Details
8Air India's monthly fuel bill might spike by Rs 50 cr on higher oil prices: Official Details
8Why India should be worried about drone attacks on Saudi Arabia’s oil facilities Details
8India's current account under threat if oil surge continues: RBI Governor Details
8WPI inflation unchanged at 1.08 per cent in Aug, reinforces rate cut expectation by RBI Details
8MMTC, STC stocks tank 16% on shutdown report Details
8Saudi on track to restore third of lost crude oil output: Experts Details
8Saudi Arabia assures India of no oil supply shortage: Oil Ministry Details
8Aramco attacks show company entanglement in Saudi politics Details
8Energy prices spike after Saudi oil attack, US blaming Iran Details
8Tension over Kashmir not to affect TAPI: Pak assures Turkmenistan Details
8Aramco less optimistic on output recovery Details
You can also click on Newsclips for more   Details
The company eventiually slated to invest Rs 500 crore in the development.
8LOA for hiring of services for 3D Broadband seismic data acquisition is expected by end of October.
8An EIA consultant will also be needed
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Details
Get the latest US LNG shipment data into India.
8The irony of the dual pricing regime is brought into focus in US supplies to India. If data was available, the same picture would be evident from Qatar as well, as the kingdom dispatches spot cargoes at sharply lower rates than term cargoes.
8Long term LNG supply is at almost twice the price of sport cargoes
8Spot cargoes are now at a little over variable cost of US LNG liquefaction plants
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NPK Fertilizer Expansion Project 
8Cost - Rs 190 crore
8Project Event: Environment clearance has been elicited, and RFQ for the EPC contractor is scheduled in December 2019.
Click here for more details
Single Super Phosphate Expansion Project
8Cost - Rs 20 crore
8Project Event: The approval of environmental clearance is under process. The RFQ for the contractor is likely to be released in November in place of July 2019 due to delay in the environmental clearance.
Click here for more details (Via www.energylineindia.com)
Details
8Is ONGC planning to replace John Energy's gas dehydration and dew point depression units now that the vendor has run into trouble for bringing in second equipment as new
Find out more. Details
The petroleum ministry seems very keen to ensure that the Government E Marketplace portal picks up speed
8Procurement targets have been set for public sector oil companies
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It is a big Rs 300 crore POL terminal project
8There is an EPCM contractor on the job
8An RFQ for pumps is expected in November, 2019
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Details
A massive Rs 62,000 crore private sector greenfield refinery-cum-cum petrochemical complex is being planned
8The prefeasibility report has been prepared
8Site survey has been done. This means that there is interest in following through with the initial proposal by the promoter
So how serious is this proposal?
   Details
Any kind of global model that looks at decarburization of the transportation sector will end up with a 2030 date for a ban on conventional cars.
8Then again, some global agencies suggested oil demand plateauing  s early as 2022.
8In this context, is the current slowdown in the transportation sector in India as well as in countries such as China a result of cyclical or structural changes?
8If structural changes are at the root of the automobile demand slowdown, oil companies may have to redraw some their refinery expansion plans.
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GSPL India Transco Ltd (GITL), a subsidiary of Gujarat State Petronet Ltd (GSPL), had signed a Gas Transportation Agreement (GTA) with Ramagundam Fertilizers and Chemicals Ltd (RFCL) on July 8, 2016, for a period of 20 years.
8GITL will supply 2.4 MMSCMDof natural gas from Mallavaram of Andhra Pradesh (AP) to RFCL's plant at Ramagundam in Telangana through the Mallavaram-Bhopal-Bhilwara-Vijaipur Natural Gas Pipeline (MBBVPL) being developed by GITL. 
8It is learnt that GITL's slow work has delayed the project Details
ONGC is beginning work in this OALP block
8Seismic survey tender has been floated
8EIA RFQ likely soon
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Details
Get an update on the drilling work for the project
8Drilling is scheduled from next year
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One tender for an early production system has been refloated
8Another for a Group Gathering station expected by end 2019
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Details
Phase-I pre-commissioning work is going on
8Phase-II work is set to begin in Q-1 2020
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Details
It is a big 7.50 MMTPA expansion of refinery-cum-petrochemical capacity
8The PFR consultant has been appointed
8Capital approval is expected in six months
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Details
Even as gas demand goes up, there is preparation afoot for a post-gas scenario, when rapid decarbonization will become a global imperative
8Pipeline networks built to ferry gas will also have to restrucutre their business models, going ahead
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An advanced paper has projected India's energy combination by the year 2020 under different enegy sources
8And there are a dozen of them
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Are you interested in offshore drilling opportunities and tie-ups.
There is a list of addresses and profiles of some of the best companies in the world -- who may not necessarily be present in India as of now -- in areas such as
8Topsides (EPC)
8Floaters (EPC)
8Marine engineering & design
8Technical and production services
8Administration and IT
8Internet of things, automation
8Cranes, lifitings, moorings
8Process equipment
8Rotating equipment
8Safety equipment and services
8Other mechnical equipment systems
8Drilling systems
Click on Reports for more Details
If you looking to cleanly convert coal, petroleum coke and biomass into high-value products, here is a multinational willing to build complete turnkey gasification complexes under a “Sale of Gas” model
8It will finance, build, owns and operates the syngas production facility for you.
8The company has built over 200 gasification reactors till date
8Interested?
Click on Reports for more Details
Many LNG terminals seem to be on the drawing boards.
8Here is another with a 5 MMTPA FSU with onland storage tanks and regasification.
8A 12-bay truck loading facility is planned as also a connection to the all-India grid of GAIL
8The promoter has also drawn up a list of customers it will cater to
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Obtaining certificate of stability of Uran Plant Details
8Procurement of skid mounted portable engine driven air compressor Details
8Procurement of Tyres, Tubes and Flaps Details
8Procurement of FTP/ staging server for GEOPIC Details
8Supply of Structural Materials Details
8ARC for Ultra Pure Gases Details
8Annual Maintenance Contract for Leak Detection System Details
8Construction of Admin Building, Control Room and other Civil Works Details
You can also click on Tenders for more

For reference purposes the website carries here the following Newsclips:
8Central India’s first CNG, LNG mother station opened in Nagpur Details

8US blames Iran for drone attacks on Saudi oil infrastructure Details
8Iran signs $440 million deal with local firm to develop Gulf gas field Details
8Sonowal assures support to Numaligarh refinery expansion Details
8Govt nominates ONGC to operate Panna-Mukta fields Details
8Saudi drone strikes: No crude blow to India yet Details
8Oil price surges, stock futures slip after attack on Saudi facility Details
8Saudi Arabia battles market jitters after drone attacks on oil plants Details
8CNPC signs 3-year diesel supply contract with Australia's Arrow Energy Details
8Aramco tells Indian refiner it will get oil: source Details
8Tension over Kashmir not to affect TAPI: Pak assures Turkmenistan Details
8Saudi to tap vast oil stores after attacks disrupt output Details
8Saudi Aramco: from 'Prosperity Well' to energy giant Details
You can also click on Newsclips for more   Details
8The LNG market is in oversupply and it looks like low spot prices may continue to linger longer than it was anticipated earlier.
8The world seems to be moving away from oil-indexed LNG prices but that can be a two-way street. If oil prices go down, gas prices may move up.
8China is trucking LNG to demand centers not supplied via a pipeline network in a big way. There are lessons here for India
8The US government is pushing for American companies to take a big chunk of contracts from the Mozambique terminal in which the Indian trio of ONGC, OIL and BPCL are heavily invested. Should India too push for local companies to take part in the development?
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India is the only nation to have introduced an environmental tribunal, the National Green Tribunal (NGT),  after Australia and Newzealand.
8The drive for use of gas in place of naphtha or fuel oil has been driven by action from the NGT
8But there is an urgent need for reforms here as well.
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The Tapti process complex -- which belonged to the Panna Mukta Tapti JV -- would have otherwise been decommissioned
8Decommissioning would have been an expensive exercise. But ONGC decided to take over the process platform from the JV at no cost
8Two years from its decommissioning, the platform is now a key production centre for ONGC.
8Business opportunities centered around this process platform -- in terms of new developments whose well fluids will be processed  -- are coming up ahead.
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Details
NPK Fertilizer Expansion Project  
8Cost - Rs 190 crore
8Project Event: The project is awaiting for the environmental clearance and tender for EPC contractor is likely to be released in December 2019.
Click here for more details
Single/Triple Super Phosphate Greenfield Project
8Cost - Rs 25 crore
8Project Event: The project has sufficient fund to progress but due to internal matter project is still on hold, RFQ for the contractor is likely to be released in November 2019 in place September 2019, due to internal issue.
Click here for more details
A
vailable through www.indianfertilizer.com
Details
August POL consumption data has come out somewhat lopsided
8But clearly enough, consumption has stalled.
8And is negative in some instances
8The POL consumption data is a barometer to how the economy fares
8The signs are not good so far
Click on Reports   Details
What is up for LNG prices this coming winter?
8Storage facilities are already almost full
8Will there be a spurt in LNG vessel rates?
8How will price behave?
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Procurement of Insulation Materials for Pyrolysis Cracking Furnaces Details
8Contract for Services of GPS Based Foot Patrolling, Report Generation & Report Submission for Pipelines Details
8Procurement of 5400MT Butene1 for LLDPE HDPE Swing unit Details
8Quantitative Risk Assessment of CGD Networks Details
8Supply of Fittings and Flanges for SJHPL Project Details
8Supply, Installation and Commissioning of UV-VIS Spectrophotometer Details
8Supply of Ball Valves Details
8SOR Branding Job for two years Details
You can also click on Tenders for more

For reference purposes the website carries here the following Newsclips:
8India's diesel demand in August falls to a 10-month low Details
8RIL-BP to kick off India’s first gas auction next month Details
8RIL to start gas production from R-Cluster in 2nd half of FY21 Details
8India's August retail inflation rises to 3.21% Details
8Reliance commits to pay for any gas supply shortfall Details
8Pradhan meets GECF Secretary-General, discusses trends in global gas markets, energy transition Details
8UP: 4 injured in gas tank explosion at HPCL plant in Unnao Details
8OPEC, allies weigh further oil production cut in December Details
8Saudi energy minister says every country should comply with OPEC+ oil output cuts Details
8Nigeria and Iraq pledge to cut output to meet OPEC targets Details
8Saudi willing to keep oil output below 10 mln bpd: Energy minister Details
8Oil prices fall after OPEC+ talks, ECB rate cut Details
8IEA says oil demand subdued on economic uncertainty Details
You can also click on Newsclips for more   Details
It is an Effluent Treatment Plant worth Rs 25 crore
8Capital approval is awaited
8RFQ has been delayed and now expected in October
Click on Details for more
Details
This is a private sector offshore development project involving the hiring of a jackup rig and an offshore processing platform>
8The field development plan has been already approved
8Quotations are being accepted
8What is raised eyebrows is the low capital allocation for the project
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Details
The price bid for ONGC's Living Quarters Platform Development project has been opened
8The L-1 price was way below that of the L-2
8The price differential seems to establish a new paradigm for the offshore platform projects in India
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Details
LPG bottling plant is coming up
8Cost is Rs 75 crore
8RFQs from November
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Details
ONGC has finalized the long-awaited deal for three fire fighting and safety vessels for its western offshore assets.
8There is big jump in the day rate from the last time when a TAG Offshore vessel was hired
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Phosphoric Acid Expansion Project
8Cost - Rs 1100 crore
8Project Event: RFQ for the equipment is likely to be released in November 2019.
Click here for more details
Single Super Phosphate Greenfield Project 

8Cost - Rs 10 crore
8Project Event: The tender for an EPC contractor is likely to be released in November 2019.
Click here for more details (only via www.indianfertilizer.com)
Details
For reference purposes the website carries here the following tenders:
8Tender Document for Gas Metering System Details
8ARC for Standby Duty Services for Emergency Jobs Details
8Supply of Tubing Tong Details
8Procurement of Transformers Details
8Supply of MS Pipes Details
8Supply of Heat Exchanger Anode Details
8Carrying out Detailed Route Survey Details
8Design and completion of Storage Vessels for storage of LPG Details
8Supply of CNG Cascades Details
8Supply of Prefabricated SS Tanks Details
8Supply of 30,000 PSI High Pressure Test Unit For BOP Testing Facility Details
8Charter Hiring of O&M Services for Work Over Rigs for various Assets Details
8Online repair of pipelines though composite repair system at NH Asset Details
8Procurement of Hydrochloric Acid Details
You can also click on Tenders for more

For reference purposes the website carries here the following Newsclips:
8ONGC to invest Rs 13,000 crore in Assam to drill over 220 wells Details
8ONGC considers buying out rest of Western India petrochemical project Details
8India's fuel demand rose 2.8 percent year-on-year in August Details
8Gujarat: Multiple bids for GSPC’s blocks Details
8Punjab slashes VAT on natural gas Details
8Air India grounds operations director over low fuel issue in Sydney Details
8Server breach outs key data of Shell India, MG Motors Details
8Pawan Hans stake sale: Government extends EoI deadline by a week Details
8IOC, BPCL, NTPC among firms where govt stake to be cut to under 51%  Details
8India's oil demand to rise at fastest pace in world: Opec Details
8Oil demand to peak in three years, says energy adviser DNV GL Details
8Downbeat: Oil traders dwell on weaker demand growth at industry meets Details
8OPEC cuts 2020 oil demand forecast, urges effort to avert new glut Details
8Russia sees Arctic offshore oil development feasible at $130-$140 per barrel -Interfax Details
8Energy 'transition' the buzzword, but a fossil future for the Gulf Details
You can also click on Newsclips for more   Details
Another OALP block has a stake farm out
8This is between OIL and ONGC
8Seismic survey contract has already been awarded
8EIA consultant has been selected
8Get a status update here Details
This is a big nearly Rs 4000 crore pipeline project
8RFQs for mainline pipes and pumps are expected by November, 2019
Click on Details for more
Details
It looks like the timelines for setting up the mega 60 MMTPA refinery by oil marketing companies in collaboration with Saudi Aramco and Adnoc is going to be delayed further.
8Why is that? Details
ONGC is planning to fast track work on this OALP Round-2 block
8Seismic work is opening up
8EIA services will be required next
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Details
ONGC's 53-well development drilling project will soon see RFQs coming out
8EIA study will be first
8Followed with other RFQs after a time gap
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RIL Jamnagar refinery suffered the second largest supply production loss for a refinery in the world during a shutdown
8It was of course a scheduled shutdown, but given the size of the refinery and the duration of the shutdown, the output loss recorded as one of the largest in the world
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Farm out transactions have already begun in OALP blocks
8One such deal for a 40% stake has been signed
8RFQs for the hiring of 400 LKM 2D and 50 SKM 3D seismic survey services will be released December 2019
8A drilling programme will be unfolded subsequently
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Details
The latest report by DNV-GL that predicts peak oil by 2022 may knock the bottom out of the Indian E&P market and stop companies from looking at acreages being offered by India under a liberalized regime. Operators who have garnered acerages under DSF and OALP rounds may want to go slow if they are certain that the bottom is going to give way around the time they begin to produce oil and gas.
8The prediction is that after oil, peak gas will happen 10 years later, around 2033, but production thereafter will not decline but remain constant right up to 2050. This will mean that Indian E&P majors may stop looking at major offshore gas investments five years from now, as most fields have 10 to 15-year production profiles, and these can stretch to a point when demand begins to peak and prices become unremunerative, thereby pushing NPVs to negative territory.
8All of this does not mean that investments will not happen in the oil & gas sector, as plans have to be put in place to maintain output in declining fields or new fields have to be put to production to take on the slack.
8There is also another counter argument: Why should India, which has relatively poor hydrocarbon prospectivity, look for oil & gas when it can easily import it cheaply once prices drop from 2022 onwards? Let low cost global producers pull out the oil and India will buy it off them, the argument will go. 
8As long as cost of output in India is below the import parity price, both gas and oil production will continue, but the equation can tilt the wrong way in as little as five years from now.
These comments are by the Edior
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Oilex has struck a deal with GSPC in the Cambay PSC
8This followed a court battle between the two
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Methane emission is emerging as a major environmental worry
8Measurements were earlier taken sporadically over time
8A new but volantary continuous methane measure programme in E&P installation is now being adopted
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LNG shipping have undergone two different phases of transition.
81960s to mid-2000s, it ws the traditional liner model (P2P), with back-to-back contracts 20yr plus, with steam engines
8Then after that portfolio players have emerged, terms contracts were for 7-15yrs and four stroke  DFDE/TFDE engines were at play
8LNG 3.0 is now upon us, and it will herald a whole new era
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DAP Expansion Project
8Cost - Rs 100 crore
8Project Event: The project has elicited the term of reference and waiting for environmental clearance. It takes a minimum of three to four months for clearances to come by. RFQ for environmental clearance is likely to be released at the end of November 2019. The company is planning to do its phosphoric acid expansion first, for which construction has already started.
Click here for more details
Ammonia-Urea Energy Saving Project

8Cost - Rs 380 crore
8Project Event: The Company will be undertaking significant debt-funded capex to meet energy consumption norms applicable under NUP-2015 from FY2021 onwards. The capex for the project is around Rs. 380 crore and is to be funded in a debt-equity ratio of 70:30. The loan is still under process, and it will take a minimum two to three months for approval.
Click here for more details
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