Infrastructure and Energy Sector

[NSG_Blackcats]

Tata Steel-Sasol to set up coal-to-liquid plant in Orissa​

Bhubaneswar: Tata Steel in a tie-up with South Africa's Sasol Synfuel International on Monday proposed to set up the country's first project to convert coal into liquid at a mammoth investment of Rs 45,000 crore in Orissa. The proposal for the project with a 3.6 mtpa capacity was submitted by Tata Steel's Vice-Chairman B Muthuraman and Sasol's Managing Director Ernst Oberholster at a meeting with Orissa Chief minister Naveen Patnaik here.

It's a joint venture mega project. Though we have not identified the location, the proposed plant will be somewhere in the state," Muthuraman told reporters after the meeting. Company sources said coal for the project would be made available from the Srirampur area in Talcher.

Targetted to be commissioned in 2018, the project to be developed by Tata and Sasol in 50:50 ratio would produce 80,000 barrel of liquid fuel per day . While the project requires 3,000 acre of land for its main plant, additional land would be required for setting up coal mine, benefication plant, coal handling plant, water reservoir, power plant and township.

Besides superior diesel, the plant would also generate naptha and LPG with by-products like tar, phenol, sulpher and amonia, they said adding that 24 gallon of water per day would be required to run the plant. This is another big ticket investment in the state where world's two largest steel makers ArcellorMittal and Posco have committed to invest over 1-lakh crore to set mega steel plants.

The project includes setting up a 1600 MW power plant, sources said. "About 35,000 people will get direct and indirect employment in the proposed coal-to-liquid plant to be set up in the state," Industries minister Raghunath Mohanty told reporters.

Source :Zee News

 

[NSG_Blackcats]

IIFCL ties up for USD 2.4 bn WB, ADB loans

The multilateral lenders like the World Bank and Asian Development Bank have agreed to shortly extend USD 2.4 billion (around Rs. 12,000 crore) to the State-owned India Infrastructure Finance Company to fund various projects.

“We have finalised a loan of USD 1.2 billion from the World Bank, and USD 1.2 billion from the Asian Development Bank, out of which USD 360 million have been already availed of. These funds will be utilised mostly in roads, ports and power projects,” India Infrastructure Finance Company (IIFCL) Chairman S.S. Kohli told PTI here on Monday.

 

[RPK]

Gail to buy 4% in Myanmar-China project- Oil & Gas-Energy-News By Industry-News-The Economic Times


NEW DELHI: State-run gas transportation company Gail India will pick up a 4% stake in the $2-billion Myanmar-China gas pipeline project, company
chairman and managing director BC Tripathi said on Monday. OVL, the overseas arm of oil and gas major ONGC, will pick up another 8-8.5% stake in the pipeline project that will link two gas producing blocks A1 and A3 in Myanmar with consuming centres in the mainland China.

“The Gail board has already approved the stake pick in the pipeline project. The investment would go through once approvals from the government come,” Mr Tripathi said. OVL, along with Gail, already has a 30% interest in two gas producing blocks in Myanmar. The companies, however, could not secure gas from the project as the neighbour preferred China over India for gas sales from A1 and A3 blocks. In 2004, Myanmar had committed that Gail would be the preferential buyer of the gas but opted for China later due to political considerations.

The total investment of Gail and OVL is expected to be around $250 million (over Rs 1,000 crore) in the 870-km pipeline China National Petroleum Corporation (CNPC) is laying in Myanmar. Meanwhile, Gail’s net profit for the quarter ended December 31, 2009, zoomed 240% to Rs 860 crore as against Rs 253 crore in the corresponding period last year.

During the quarter, the company’s turnover also rose 6% to Rs 6,187 crore, as against Rs 5,812 crore in the same period last year. Gail had reported over 30% dip in its net profit for the second quarter ended September 30, 2009, due to falling margins on petrochemicals and liquid hydrocarbons. Shares of Gail closed at Rs 438.70, up 3.1%, from Rs 425.50.

“The increase in profit has come mainly on account of a 25% rise in transportation of gas and better realisation from sale of petrochemicals, LPG and liquid hydrocarbons,” said Mr Tripathi adding that gas transportation has increased largely due to availability of KG basin gas on its network.

Asked about Ratnagiri Gas and Power Project in Maharashtra (formerly Dabhol power project), Mr Tripathi said that it would reach its full capacity of around 2,000 mw by March-April this year. He said that Gail would be interested in increasing the capacity together with its RGPPL partner NTPC by another 2,000 mw.

“We have taken up the matter (of expanding generation capacity) with power ministry as well as NTPC chairman. NTPC had earlier indicated that it would like to go solo on the expansion project.

Gail would make a capex of Rs 5,500 crore in 2010-11. About Rs 4,000 crore of this expenditure will be made on expanding gas transmission network. Mr Tripathi said that it was looking at expanding gas distribution network with Egas in Egypt.

 

[nitesh]

good read:

SMEs ride the Metro boom - Forbes India -

 

[NSG_Blackcats]

NTPC builds Rs 2.25 lakh cr warchest to become 75,000 MW firm

India’s largest power company NTPC plans to invest a massive Rs. 2,25,000 crore in the next seven years in capacity expansion to become a 75,000—MW entity, company’s Chairman and Managing Director R. S. Sharma said on Tuesday.

NTPC, which has a production capacity of a little over 30,000 MW annually, constitutes 19 per cent of the country’s total installed capacity of 1,55,000 MW.

For the additional capacity generation, NTPC is planning about 9,000 MW through hydroelectric sources, 2,000 MW through nuclear and 1,000 MW through renewable energy resources by 2017. This would make NTPC one of most diversified companies in the country in terms of fuel usage.

 

[NSG_Blackcats]

PowerGrid to invest Rs 50,000 cr​

The central transmission utility, Power Grid Corporation of India (PGCIL), proposes to invest Rs 50,000 crore for developing seven transmission corridors in the next five years. This will facilitate the smooth transmission of about 55,000 Mw, to be generated from the proposed independent power producers (IPPs) and merchant power plants (MPPs) in Chhattisgarh, Orissa and Jharkhand.

“The proposed investment of Rs 50,000 crore is over and above Rs 55,000 crore being planned for laying the inter-regional transmission capacity of 37,000 Mw by the end of the Eleventh Plan period (2011-12). PowerGrid Corporation would carry out the capital expenditure through internal accruals, borrowings from domestic and multilateral agencies and also through bond issues,” a PGCIL executive told Business Standard on the sidelines of an event here today.

The seven transmission corridors, which would comprise 800 kv and 765 kv lines, would create a long-term access for IPPs and MPPs. The executive said PowerGrid would soon approach the Central Electricity Regulatory Commission (CERC) to seek necessary regulatory approval. Earlier, CERC Chairman Pramod Deo said PGCIL had been asked to submit a proposal for regulatory approval for setting up the seven corridors.

Source :- Business Standard

 

[NSG_Blackcats]

HPCL plans to set up Rs. 25,000 cr refinery​

State-run Hindustan Petroleum Corp. plans to invest Rs. 25,000 crore in setting up a 15 million tonnes a year refinery on the west coast. The new refinery may be located anywhere between Mumbai and Goa on the coast and is being mulled to make up for space constraint that its Mumbai refinery faces at present.

“We face tremendous space constraint at our 6.5 million tonnes a year Mumbai refinery. A refinery of this size is spread over 2,000 acres of land but our refinery is spaced in just 350 acres. We fell in 5-10 years, the space constraint will made the inefficient,” a top company official said.

HPCL, which has a 7.5 million tonnes a year unit at Vizag in Andhra Pradesh and is building a 9 million tonnes plant at Bhatinda in Punjab in joint venture with steel czar Lakshmi Mittal, is contemplating a refinery of the size of 10, 15 or 20 million tonnes a year.

Source : The Hindu

 

[NSG_Blackcats]

Delhi-Gurgaon Metro trial run from tomorrow

NEW DELHI: Delhi Metro will script yet another chapter in its history tomorrow when a train will chug into the satellite city of Gurgaon as the trial runs on the much-awaited line will begin. Union Urban Development Minister S Jaipal Reddy and Haryana Chief Minister Bhupinder Singh Hooda will inaugurate the trial runs from HUDA City Centre Metro Station and the Sultanpur Metro Station, a DMRC spokesman said.

The first trial Metro train will be flagged-off from the HUDA City Centre Metro Station. The trial runs on this section will cover a distance of approximately 11 kms which will have stations at HUDA City Centre, IFFCO Chowk, M G Road, Sikandarpur, Guru Dronacharya, Arjangarh, Ghitorni and Sultanpur.

The DMRC plans to inaugurate the line by April and the corridor is expected to draw thousands of more people to the new age transport system.

The stretch is part of the Metro's 14-km-long Qutub Minar-Gurgaon line.

 

[Pintu]

Parikh Panel Suggests freeing of Oil prices

Kirit Parikh panel constituted by The Govt. of India, suggests freeing of Oil prices from regulations, Link and report of Times of India :

http://timesofindia.indiatimes.com/...lation-of-fuel-prices/articleshow/5531531.cms

Panel suggests deregulation of fuel prices
AGENCIES, 3 February 2010, 05:03pm IST

NEW DELHI: The government-constituted Kirit Parikh committee on oil sector reforms on Wednesday suggested total decontrol of oil prices, while recommending an immediate increase in prices of kerosene by Rs 6 per litre and LPG by Rs 100 a cylinder.

The committee headed by economist Kirit Parikh also pegged the losses of state-run oil marketing companies at Rs.40,000 crore on account of having to sell transport fuels at below cost.

"There is no way we can continue with the current pricing policy," said Parikh while discussing the recommendations here.

Regards

 

[NSG_Blackcats]

Innovative Technology - Sky bus developed by B. Rajaram, MD Konkan Railways. Currently trails are going on in Goa.​

​

 

[NSG_Blackcats]

Sky Bus, not Metro, tailor-made for Indian cities: Inventor​

NEW DELHI: The Sky Bus is tailor-made for congested Indian cities and is a safer and better option than Metro Rail, according to B Rajaram, inventor of the Sky Bus and former managing director of Konkan Railway. Significantly, Rajaram, who developed the Sky Bus — a twin-coach module that combines the strength of a steel coach with the flexibility of a bus — said he did it "at a tiny fraction of what it would have cost the government to develop it, which is anywhere between Rs 500 crore and Rs 800 crore".

The biggest advantage of a patented technology like the Sky Bus is that it remains the most cost-effective alternative at Rs 60-75 crore per route km as compared to Rs 215 crore for the Metro and Rs 400 crore for the underground Metro, at current costs, according to available data. The Sky Bus can potentially carry six million passengers daily, or 80,000 hourly, in any direction.

"The Sky Bus pre-fabricated structure, unlike Metro Rail, which requires heavy infrastructure and huge capital, can be superimposed on existing roads, without altering their set-up or dislocating traffic, anchored by pillars raised on dividers," Rajaram told IANS in an interview. It also frees authorities of the necessity of land acquisition, excavations and construction that clog and choke city arteries. What's more, said Rajaram, the project barely takes 24 months to commission against the five to seven years required by Metro systems.

"Integrating 15 rail technologies, Sky Bus turns the conventional approach on its head by reversing the position of the carriage and the wheels. The upside down configuration actually leverages gravity to bind the carriage wheels and the tracks inseparably in an enclosed concrete box, eliminating the possibility of either derailment or capsizing," he said.

"The system has already been granted worldwide patents and approved for mass implementation by German Tuv Rheinland, internationally renowned for technical-viability testing for aviation and transportation projects like magnetic levitated railways." Handling passenger volumes is only one aspect of the Sky Bus. Another variant, the Sky Con, can be integrated with ports, railways and roadways, to accelerate loading and unloading of containers on ships 10 times faster than existing systems worldwide, he added.

A technical panel constituted by the central government and headed by Indiresen, former director of IIT, Madras, had concluded that the technology was "not tested" — which has become a major hurdle in its implementation. Ironically, Indiresen also observed: "If very strict standards that some want to apply in this case (Sky Bus) had been applied in the case of Stephenson's Rocket Engine, the world would never have seen railways at all. We cannot live on borrowed technology for ever and should learn to develop our own inventions and, for that reason, learn to place confidence in Indian technology."

"Why single out the Sky Bus as 'untested'," asked Rajaram, "when a 'tested technology' like Metro Rail has been involved in a spate of accidents, injuring more than 200 people. Derailments and collisions over the past decade have also claimed 1,300 lives. Does it follow that train travel be outlawed as unsafe though the technology is proven?

"Similarly, were 'high-tech' Germany coaches disowned after uncoupling four or five times at low speeds within 20 days of their being introduced on the Lucknow-New Delhi Shatabdi Express in the late 1990s?" Rajaram asked. Another panel headed by former president APJ. Abdul Kalam — as then prime minister's principal scientific advisor — had certified the technology as being safer than railways. Sky Bus can be designated under the Tramway Act instead of the Indian Railway Act, since it moves along existing roads. Sky Bus is also included in the draft Metro Rail Act by the urban development ministry.

Source - Blog of Rajaram Bojji (Former MD Konkan Railways)

 

[NSG_Blackcats]

ONGC bags $19bn oil deal in Venezuela​

NEW DELHI: A group of firms led by flagship explorer Oil and Natural Gas Corporation has won the bid for a 40% stake in Carabobo-1 acreage in the Orinoco heavy crude belt of Venezuela, the first major oil auction during 11 years of Hugo Chavez's presidency and three years after acreages were nationalised in the region.

This is the first big-ticket success for ONGC Videsh, ONGC's overseas arm that will represent the parent in the grouping, since its acquisition of then London-listed Imperial Energy for over $2 billion in 2008. Carabobo-1 will also be ONGC Videsh's second project in Venezuela after San Cristobal. The Carabobo-1 acreage is estimated to have 31 billion barrels of recoverable reserves and will take $19 billion to develop, starting with a $9 billion initial investment. The grouping will pay a little over $1 billion as signing amount and also extend a loan of similar amount to Venezuela's state oil firm PdVSA.

The group also has Spain's Repsol and Malaysia's Petronas as ONGC's equal partners with 11% each, while northeast explorer Oil India Ltd and refiner-marketer IndianOil Corporation are minority partners and have 3.5% each. Together as a bloc, the Indian holding will, thus, be 18%.

As investors, the Indian companies together will get some 5-6 million tonnes of crude as equity oil and will have the first right to buy upto 9 million tonnes of the output. The consortium is expected to bring the project into production by 2012-13. The acreage can produce 400,000 barrels of oil per day, or 20 million tonnes in a year.

Source - Times Of India

 

[NSG_Blackcats]

Muppandal, Tamil Nadu, India's biggest wind power Center​

Muppandal, a small town in TamilNadu is India's biggest wind power center. (As per some reports it is Asia's biggest Wind power center.) Once totally operational it will produce 1600MW of electricity. It has around 3600 wind trubines.

It was producing 25MW of electricity in June 2005.

As per the below given source it is the second largest wind power center in the world.

Source

​

 

[NSG_Blackcats]

Solar Plants in India​

Hundreds of children near Vadodara in western India attend schools run by the Muni Seva Ashram. Until recently,meals were prepared with diesel burners but these have now been replaced by solar heat. This helps save considerable amounts of environmentally damaging carbon dioxide per year. The ashram hopes that its new solar cookers and various other projects will allow it to switch entirely to renewable energy.

​

 

[Pintu]

http://economictimes.indiatimes.com...ked-Rs-380-crore-more/articleshow/5621897.cms

Union Budget 2010: Renewable energy sector earmarked Rs 380 crore more
26 Feb 2010, 2327 hrs IST, IANS

NEW DELHI: India's renewable energy sector budget has been increased by 61 per cent to Rs 1,000 crore from Rs 620 crore, signalling the government's commitment to popularising alternate source of energy in the country.

"In pursuance of government's resolve to implement the National Solar Mission, I propose to provide a concessional customs duty of five percent to equipment required for the initial setting up of solar thermal power generating units," Finance Minister Pranab Mukherjee said while presenting the 2010-11 budget in the Lok Sabha Friday.

The central excise duty on LED lights, a highly energy-efficient source of lighting for streets, homes and offices, has been reduced from eight percent to four percent at par with fluorescent lamps.

Full exemption from central excise duty has been provided to electric cars and vehicles that offer an eco-friendly alternative to petrol or diesel vehicles.

"The manufacturers of such vehicles have expressed difficulty in neutralising the duty paid on their inputs and components. I propose to remedy this by imposing a nominal duty of four per cent on such vehicles," Mukherjee said.

The budget also provided a concessional excise duty of four percent battery-run rickshaws.

 

[Pintu]

http://timesofindia.indiatimes.com/...es-buoyed-about-India/articleshow/5645127.cms

Aviation biggies buoyed about India
TNN, Mar 5, 2010, 06.07am IST

HYDERABAD: They are the big daddies of global aviation industry. Be it Boeing, Airbus, Bombardier, Bell Helicopters, Eurocopters, Gulfstream Aerospace Corp, they are all there at the India Aviation 2010 show.
While some are here to hardsell their latest offerings, others are sniffing around for prospective clients and some others are here just to get a feel of the Indian growth story.

But they are all here because at a time when most economies in the world are struggling to stay afloat, the Indian economy is taking off yet again after having successfully countered the turbulence of the global recession.
That explains why the buzz around India is getting louder and the excitement of global aircraft manufacturers palpable as they are all projecting India to be one of the fastest growing aviation markets in the world with a demand of over 1000 aircraft over the next 20 years.

“Asia Pacific is the biggest market with 8960 airplanes. Within Asia Pacific, India is the fastest growing market with a projected requirement of over 1000 airplanes worth $100 billion by 2028 thanks to its strong GDP growth rate, huge middle class and increasing disposable incomes,” said an excited Boeing India president Dinesh Keskar, pointing out that the turbulence of 2008 and 2009 was a thing of the past for Indian aviation as Indian carriers had turned profitable for the November 2009-January 2010 period.

Indian aviation market has zoomed a whopping 207% in the last 10 years and is slated to score yet another record high in 2010 with a total domestic passenger traffic of 48 million as against 43.8 million in 2009, he said.
That also explains why the American aircraft manufacturer is pumping $100 million into the Indian market for setting up an MRO facility in Nagpur, where the company has acquired 50 acres of land in an SEZ. The project, which is expected to take two years to complete, will have two hangars with a capacity of housing a total of four big aircraft. Boeing’s latest offering, the 787 Dreamliner, will also source its floor beams from a manufacturer in Nagpur.

Rival European aircraft maker Airbus too is pegging the demand in India over the next 20 years at 1032 aircraft worth $138 billion, which is the world’s fifth biggest. No wonder then that Airbus executive vice-president (marketing and contracts) Kiran Rao, has been busy handing over aircraft to Indigo and Air India at the event, is bullish on India.
“We have 19 deliveries of A-320s lined up for 2010 to Indian carriers like IndiGo, Go Air and Air India and another 20 deliveries of A-330s. We expect to improve our market share from 70% to 80% over the next few years in India,’’ says Kiran Rao.

“The Indian economy is showing signs of rebounding and this will translate into new aircraft orders by 2012. Long term, the potential for growth in India’s aviation sector remains exceptional,’’ explained Miranda Mills, vice-president (sales) of Airbus India.

The projections of India requiring 1030 aircraft over the next 20 years has Bombardier too buoyed about its prospects here, though company officials refuse to divulge any details of their delivery schedules for India.

Upbeat about India, European helicopter maker Eurocopter, part of the EADS group to which Airbus belongs, too is mulling setting up an Indian subsidiary and has announced plans to set up MRO facilities in either Mumbai or Delhi over the next year or so in joint venture with Pawan Hans.

 

[NSG_Blackcats]

Bhatinda, Paradip plants set to increase LPG output​

The Central Government on Thursday informed that the new liquefied petroleum gas (LPG) plants at Bhatinda in Punjab and at Paradip in Orissa would substantially increase the availability of cooking gas by pushing up their production by next year.

Replying to supplementaries in the Lok Sabha during Question Hour, Minister of State for Petroleum and Natural Gas Jitin Prasada informed the House that the third new LPG plant at Bina in Madhya Pradesh would come up between July and September.

Pointing out that LPG production in 2008-09 was 93.35 lakh tonnes, he said the consumption was 123.44 lakh tonnes, leading to import of 23.60 lakh tonnes to partly offset the shortfall. “There are 11 crore LPG connections today compared to eight crore connections earlier. There is a shortfall and it is met through imports,'' he said.

Mr. Prasada said the government was planning to augment production through new plants at Bhatinda, Paradip and Bina. Expansion and capacity addition of existing plants would also be done to ease the demand-supply situation, he said.

The provisional production for 2009-10 between April and December was pegged at 76.07 lakh tonnes, he said, adding that the consumption during the period was estimated to be 95.76 lakh tonnes with imports of 18.07 lakh tonnes.

Source - The Hindu

 

[NSG_Blackcats]

Essar Oil plans Rs 4,000-cr investment for CBM blocks​

The Ruias-controlled Essar Oil plans to invest about Rs 4,000 crore in the next three years for developing its three coal bed methane (CBM) blocks in Jharkhand, Gujarat and West Bengal, having recoverable gas reserve of close to seven trillion cubic feet (tcf). “The existing recoverable gas would be valued about $4 billion at the current contract prices. With the commencement of CBM production in three blocks, Essar’s exploration and production (E&P) will be poised for a significant growth and the additional cash flow will help the company pay off the debts,” said an industry source.

According to sources, the company has already spent Rs 150 crore for exploration at these CBM blocks. According to the latest Competent Person Report (CPR) of two US-based consultant firms, Netherlands Sewell & Associates Inc and Advanced Resources Inc, Essar’s recoverable resource at Rajmahal block in Jharkhand stood at 4.7 tcf, against the earlier estimate of 1.3 tcf. Also, the company has found 0.75 tcf CBM gas reserve at its Mehsana block in Gujarat. Directorate General of Hydrocarbons (DGH) had earlier approved recoverable reserves of 1 tcf at the company’s Raniganj block in West Bengal.

“As certified by internationally recognised reserve consultants in the latest CPR, the estimate for recoverable resources and reserves at our CBM blocks has more than doubled to seven tcf,” said Shishir Agrawal, chief executive officer — Exploration & Production, Essar Oil.

Gas flow from Raniganj has already started, and sales are likely to commence by early April. In the CBM IV Round, Essar was announced as the provisional winner of Block Rajmahal in Jharkhand. As per CPR, the recoverable resource is estimated at 4.7 tcf, compared to the earlier estimate of 1.30 tcf. Earlier, DGH estimate indicated Rajmahal to be a very good CBM potential with 3.2 tcf of gas, which is now estimated at 9.50 tcf in the CPRs.

Source

 

[NSG_Blackcats]

India to add 7,450 km to gas pipeline network in 3 yrs​

India will add over 7,450 km of gas pipeline network over the next 2-3 years to ramp up its supply lines to keep pace with the growing demand from the consumption centres in the country. Asia’s second fastest growing economy has most of the gas pipeline infrastructure concentrated in west and north while the south and east have largely been left untouched by the revolution increased availability of gas is bringing.

“The challenge for an emerging market like India is to develop pipeline infrastructure in all parts of the country, including in remote areas, in tandem with increasing supplies. Only then we will be able to secure inclusive growth,” Petroleum Minister Murli Deora said addressing the VI Asia Gas Partnership Summit here.

The present natural gas transportation infrastructure in the country is around 10,800 km with a capacity to move 270 million standard cubic meters of gas per day. “Major pipeline projects are underway in the country, which would add another 7,450 km and 248 mmscmd to our gas transport infrastructure,” he said.

Natural gas, he said, was the fuel of choice today. “It enhances energy security, it is an efficient fuel for power generation, a cheaper feedstock for industries, a cleaner alternative for vehicles, it reduces air-pollution and, in general, it leads to improved quality of life.”

At present, gas occupies about 10 per cent of the total energy basket of the country, much less than the world average of 24 per cent. The scenario is fast changing, largely because of the increase in the availability of natural gas and the efforts being made towards expanding the natural gas infrastructure, he said.

Discoveries by Reliance Industries in the Krishna Godavari basin have almost doubled the availability of gas from domestic sources. It is producing around 60-62 mmscmd and has led to a rise in power generation and reduction in the country’s fertiliser subsidy.

“The increased gas supply from KG fields has helped our fertilisers plants to use indigenous natural gas rather than expensive naphtha and fuel oil. Accordingly, it is helping us to reduce our fertilisers subsidy. In power sector, increased gas supply has resulted in increase in power generation by around 5000 MW,” he said.

“LNG (import) infrastructure in the country is also being expanded,” Mr. Deora said, adding the capacity of Dahej terminal in Gujarat has been doubled to 10 million tonnes last year. While the work at 2.5 million tonnes Kochi LNG terminal is underway, the Dabhol terminal in Maharashtra would be commissioned soon. “So the LNG regasification capacity in the country would reach a level of 20 million tonnes per annum by the year 2011-12 (from current 13.5 million tonnes),” he said.

In addition to fertilisers and power sectors, the increased availability of natural gas is also set to transform city gas sector.

“Today, about 40 cities & towns are covered by CNG. We intend to develop city gas in more than 200 more cities. Piped Natural Gas (PNG) in a greater number of big cities and metros would help us to divert LPG supplies to our rural areas,” he said.


Source - The Hindu

 

[Sridhar]

South India to get KG gas by 2012: oil ministry

22 March 2010


South India will start getting natural gas from the Krishna-Godavari (KG) basin by 2012 through three new gas pipelines, according to union petroleum secretary S Sundareshan.
While speaking to reporters on Saturday in Chennai, Sundareshan said that there is shortage of gas supply in southern India when compared to northern and western parts of the country, and the government was committed to ensure uniform availability of gas throughout the country by putting up a good network of pipelines.
State-owned gas major Gas Authority of India Ltd (Gail) will lay a pipeline connecting Bangalore and Chennai while Reliance Industries Ltd (RIL) will build a pipeline between Kakinada and Chennai which will be later extended to the southern city of Thoothukudi, and also lay another pipeline between Chennai and Bangalore.
The secretary said that the government has asked both the companies to implement the projects in a ''strict timeframe''.

The government had already sanctioned GAIL to construct pipelines from Dhabol to Bangalore, and Mangalore to Cochin with connectivity to Goa and Bangalore.
RIL would also lay a pipeline from Kakinada to Haldia and Gail would build a pipeline from Haldia to Jagdishpur.
"All the pipelines to the south will be ready by mid 2012. With this, the pipeline connectivity will come to the south. There is no need for any concern now," Sundareshan said.
Three major consumers in Tamil Nadu whose operations are suffering for want of natural gas, Madras Fertilisers, Southern Petrochemical Industries Corporation, and Chennai Petroleum Corporation will also be connected to the grid.
The KG basin currently produces around 60 million metric standard cubic metres per day (mmscmd) of gas, which is expected to go up in the next 3-4 years on account of new gas finds in the field, according to the secretary.
On the gas pricing front, the secretary said that the government is working on equitable pricing of natural gas irrespective of its source.
At present, there is huge difference in the price of gas which varies from Rs3,200 per mmscmd for ONGC and OIL produced gas for power and fertilizer industry to over Rs8,500 per mmscmd in the Gujarat market.

http://www.domainb.com/industry/oil_gas/20100322_oil_ministry_oneView.html