Category: India

Analysts are counting on Prime Minister Narendra Modi to raise gas prices in India. European Pressphoto Agency India may soon put a floor under years of sliding investment in natural gas production as the new government is likely to increase the price of the fuel offered to gas producers and explorers. The previous Congress Party-led government had proposed increasing the price of natural gas to $8 per million British thermal units from $4.20 per mmBtu, but this was put on hold ahead of the elections . The current level is about a third of the cost of gas imported into India, with imports meeting 35% of local gas needs. Now that voting is over , analysts are anticipating that the new Bharatiya Janata Party-led government will increase gas prices as it had campaigned on the promise of economic reforms and industrial development. Proponents say this is needed […]

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India’s new Prime Minister Narendra Modi has brought three often-quarreling, energy-related ministries under one minister, hoping to crank up the supply of power the country needs to generate more economic growth. The new Bharatiya Janata Party government said Tuesday that Piyush Goyal will head the power, coal and renewable energy ministries. "The idea is clear. We need more electricity, more power," Mr. Goyal, told reporters as he became the first person to simultaneously head all three ministries. "The intention is to debottleneck the system." He said he plans to visit and study the power network of the western state of Gujarat, which is one of the few states in India with a power surplus. It was until recently led by Mr. Modi. "Narendra Modi was able to turn around the energy sector in Gujarat during his tenure as the chief minister of the state from […]

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The Bharatiya Janata Party’s decisive win in India’s general elections should see key reforms in the oil and gas sector pushed through and could end years of under-investment in the country’s exploration sector. As a first step, analysts expect the new government led by Prime Minister Narendra Modi to swiftly raise natural gas prices — which would promote offshore investment — and deregulate diesel prices to cut the government’s subsidy burden. "The oil and gas space in India is ripe for reform, in our view," Credit Suisse said in a recent report. "Many measures have already been implemented, and a strong new government at the center can potentially continue and complete the reform process," the bank said. Analysts at Bernstein Research echoed a similar sentiment, saying that they expected a Modi election win to be positive for the oil and gas sector. "After stalling […]

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Reliance Industries Ltd. , the operator of India’s biggest natural-gas find, and its partners BP PLC and Niko Resources Ltd. said Saturday that they have sought arbitration with the Indian government in an effort to force implementation of a planned price increase for natural gas. India’s government sets gas prices in the domestic market. India’s cabinet last year approved a plan to increase the price of natural gas to around $8 per million metric British Thermal units from $4.20 now. The oil ministry in January said the new price would come into effect from April 1 and would be revised quarterly. India’s election watchdog in March, however, deferred the implementation of the federal-government decision, saying it could affect the outcome of national elections which began in May and end on Monday. Results are set to be announced Friday. "We have received the arbitration notice. We will take […]

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India imported around 15.86 million mt of coal at 24 major ports in April, up 6.45% from March, according to data released Wednesday by Indian ship broker Interocean. The April imports consisted of 12.3 million mt of thermal coal, up 8.76% from March, and 3.56 million mt of coking coal, down 0.84%. Mundra port on India’s west coast received the highest coal shipments last month at 2.98 million mt, down 18.88% from 3.67 million mt in March. It also received the highest steam coal shipments at 2.98 million mt, up 27.26% from 2.34 million mt in March. Paradip port on the east coast received the most coking coal last month, 754,159 mt up 0.29% on the month. The surveyed ports were: Kandla, Navlakhi, Mundra, Bhavnagar, Pipavav, Muldwarka, Bedi, Magdalla, Dahej, Dharamtar, Haji Bunder, Jaigarh, Goa, Mangalore, Tuticorin, Ennore, Karaikal, Krishnapatnam, Kakinada, Gangavaram, Vizag, Paradip, […]

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Oman is in talks with India to buy a minority stake in Petronet LNG Ltd. ‘s planned liquefied natural gas terminal off India’s east coast, the middle-eastern nation’s oil and gas minister said Wednesday. Mohammed Bin Hamad Al Rumhy told reporters on the sidelines of an event that Oman wants to buy a 10% to 20% stake in the 5 million tonne a year LNG terminal at Gangavaram, in the state of Andhra Pradesh. The stake could be bought through an investment or pension fund, he added. "Petronet’s track record in the terminal business is attractive……..There are synergies (as well)," he said. Indian state-run companies Corp. , Indian Oil Corp. , Bharat Petroleum Corp. and GAIL hold a 12.5% stake each in Petronet. French power company GDF Suez owns 10% and the Asian Development Bank another 5.2%. The rest is held by public, insurance companies and mutual funds. […]

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India’s crude oil imports rose by nearly a quarter in February as demand for fuel products rose ahead of federal polls that begin from next week. The world’s third-biggest crude oil importer after the U.S. and China bought 16.42 million metric tons, or 4.29 million barrels a day of oil, from overseas last month, up from 13.37 million tons a year earlier, according to oil ministry data. Crude oil refiners say the demand for crude is up due mainly to the steady rise in demand for fuel products as political parties burn more gasoline and diesel to power their campaign for the federal elections. Fuel demand in February rose 2.4 per cent to 12.836 million tons from a year earlier. According to a senior government official, imports also rose because local refineries raised crude oil processing volumes to meet their fiscal-year throughput target. The annual crude oil contracts […]

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India, Asia ’s second-biggest energy user, is in talks with Saudi Arabia and Kuwait for better terms on oil contracts as surging U.S. output frees up supplies. Hindustan Petroleum Corp. (HPCL) , India’s third-largest state refiner, is seeking to at least double the interest-free credit period for crude purchases from Saudi Arabia and Kuwait to 60 days, B.K. Namdeo, the company’s refineries director, said in Mumbai. Mangalore Refinery & Petrochemicals Ltd. (MRPL) wants price discounts for agreeing to contracts that are more than 10 years long, according to Managing Director P.P. Upadhya. “Discussions are going on, and we expect the extended credit period to be reflected in the new contracts from April 1,” Namdeo said. “There is a surplus in the market, and India should take full advantage of the situation.” A shale-oil boom in the U.S., the world’s biggest consumer, has pushed crude production to […]

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