Pipeline Growth Hinges On Gas Sector Reforms

Latest data on eight core infrastructure sectors show that fall in natural gas output pulled down overall growth in these sectors. Here’s a peep in to the dynamics of natural gas industry in India and its impact on gas pipeline industry.

NELP IX receives lukewarm response

The Indian government received a lukewarm response from oil companies particularly the large global companies like Exxon Mobil and Chevron. It is suspected that long delay in granting government approval to the Cairn-Vedanta deal has kept the foreign companies at bay.

Will new tax regime benefit investments in oil & gas sector in India?

Replacing the existing regime of seven-year tax holiday on profits on sale of oil from the oil blocks offered under NELP, energy explorers will get tax incentives based on investments in the ninth round of auctions for oil and gas exploration blocks. The tax benefits will extend to gas exploration as well.

Will this move refrain bidders?

RIL’s strategic partnership with BP

Company’s press release.

GAIL fears loss of revenue… Read

Two-wheelers to go run on gas

The Minister of State fort Petroleum and Natural Gas Shri Jitin Prasada has said that Compressed Natural Gas( CNG) driven two wheelers would soon see the light of day.

click here for the release: http://pib.nic.in/newsite/PrintRelease.aspx?relid=67527

Natural Gas Production in India: On a Roll

In the past two decades, natural gas has emerged as the most preferred fuel due to its environment-friendly properties. In India, demand for natural gas is rising at a fast pace. To cater to this demand, domestic production too has been rising.

Natural gas prices under APM rise

I had written about the natural gas pricing issue between RIL and RNRL (Is the RIL-RNRL saga over), post the judgement by the Supreme Court, natural gas prices in India have seen upward movement.

Is the RIL-RNRL saga over?

After fighting a long legal battle, the two companies have been asked to renegotiate the  price. What is worrysome from my perspective is that will the setting up of cheap gas-based power plants by RNRL be affected? If so, then capacity addition in India (which has a huge lag vis-a-vis target) will be hampered too.

Brief history of the battle…

Abundance of Natural Gas or Mismanagement?

Natural gas production in India surged to its highest levels in 2009-10. Production stood at 47,573 million cubic metres (mcm) during the year. Production from Reliance Industries’ (RIL) KG basin led to the surge in output. Currently, RIL is producing 60 million metric standard cubic metres per day (mmscmd) from the KG basin.

The company has emerged as the largest gas producer in the country accounting for about 37-38% of the domestic gas production. This share will increase in the coming months when production from the KG basin touches peak output of 80 mmscmd.

Natural gas production is still lower than domestic consumption. Then why is the government asking RIL to cut output?