Page 2 - Natural Gas

Fitch sees risks to India's target of raising natural gas' energy share

Price volatility and infrastructure constraints will challenge India's target of increasing the share of natural gas in its primary energy to 15 per cent by 2030 from 6 per cent in 2017, Fitch Ratings said in a new report Tuesday. "Progress on the target has been minimal - 6 per cent share in 2021 - as natural gas growth has not managed to outpace total energy growth," it said. This is despite resilient demand from city gas distribution (CGD) networks and rising domestic production. Prime Minister Narendra Modi had in 2017 set a target of raising the share of natural gas in the primary energy consumption basket with a view to cutting down emissions. However, the demand for the fuel is rising at a slower rate, with current growth rates only around 53 per cent of levels required for the country to meet a 15 per cent gas use target. Gas demand by 2030 will only reach 326 million standard cubic meters per day at current 4-5 per cent growth rates, much lower than the 611 mmscmd of ...

Fast forward to 2023

The second overwhelming trend of 2022 is the impact of climate change

Gas pricing up in the air: 2023 to see new trading products from exchanges

New trading products could be the start of India's attempt to create a domestic price benchmark and derivatives contract market, and the tapering of the administered price regime

European Union hails high natural gas storage levels despite Russian cuts

Natural gas storage levels in the European Union stand at nearly 84 per cent and were higher in December than the average amount in reserve 4-6 years ago, the EU's executive branch said Wednesday, despite Russian attempts to choke off supplies amid its war on Ukraine. Fearing winter shortages, the 27 EU countries began stocking up on gas last year. Joint gas reserve levels climbed to 82 per cent by September, well ahead of an 80 per cent target set for November. Gas consumption also dropped by 20 per cent from August to November as prices spiked. Angered by EU war-related sanctions, Russia tightened its gas taps to Europe last year. Its pipeline gas accounted for 40 per cent of all gas Europe imported before President Vladimir Putin ordered his troops into Ukraine in late February, but now it only accounts for around 9 per cent. It's a fairly good position to be in, EU commission spokesman Tim McPhie told reporters. We have a healthy level of gas storage for the start of this year,

Fear of global natural gas crisis eased by warm start to winter

Gas futures are plummeting on reduced fuel consumption and the weaker outlook. European gas fell Tuesday, a day after briefly touching the lowest level since the war in Ukraine started

Demand to exploration: Key warning signals for India's gas industry in 2023

Consumers will be in trouble, given rising European demand from India's traditional suppliers, the absence of gas storage facilities and the lack of a clear LNG procurement strategy

CGD, fertilisers to drive demand for domestic natural gas: CRISIL

The growth is in line with the government's target to increase the share of natural gas in its energy mix to 15 per cent by 2030 as part of its environmental commitments

Reliance Industries seeks bids for sale of KG-D6 gas at rates linked to JKM

Reliance Industries Ltd and its partner bp plc of the UK have sought bids for the sale of natural gas from the eastern offshore KG-D6 block at a price linked to the rate at which LNG is delivered to Japan and Korea. The two partners invited bids for the sale of 6 million standard cubic meters per day of gas starting February 2023, according to the tender document. Users such as city gas operators that convert gas into CNG for sale to automobiles and pipe it to household kitchens for cooking purposes, or power plants that use it to generate electricity or fertilizer units that use it to make urea, have been asked to quote premium they are willing to pay over the JKM price. JKM is the Northeast Asian spot price index for LNG delivered ex-ship to Japan and Korea. JKM price for February is USD 28.83 per million British thermal unit. Bidders have been asked to quote variable 'V' in the gas price formula 'JKM + V'. The starting bid for 'V' has been set at USD (minus) 0.30 per mmBtu. "Ea

CAG says 3 state-owned oil firms ignoring own software for logistics

National auditor says state-owned companies make monthly adjustments that aren't best for saving costs, efficiency

Turkey discovers new natural gas reserve of 58 billion bcm in Black Sea

Turkey has discovered a new natural gas reserve of 58 billion cubic meters (bcm) in the Black Sea, as the country's total reserve in the sea has reached 710 bcm, President Recep Tayyip Erdogan said

The gas-coal riddle

Former coal secretary Anil Kumar Jain's book makes a strong case for using coal until renewable energy becomes ubiquitous in India

TotalEnergies walks away from stake in Russian gas producer Novatek

French energy giant TotalEnergies said Friday that it will walk away from its stake in Russian natural gas producer Novatek and take a $3.7 billion loss. TotalEnergies, which has come under criticism for pursuing some of its projects in Russia amid the war in Ukraine, said Western sanctions prevent it from selling its 19.4% stake to the Russian company. It said it was withdrawing its representatives from the Novatek board, who have been abstaining from voting because of sanctions, with immediate effect." As a result, TotalEnergies will no longer account for its ownership interest in Novatek, which will lead it to record an impairment of approximately $3.7 billion in the accounts for the 4th quarter of 2022," the French company said in a statement. In line with its principles of conduct published on March 22, TotalEnergies has gradually started to withdraw from its Russian assets while ensuring that it continues to supply gas to Europe. It comes amid an energy crisis in Europe provo

How will the Kirit Parikh panel-gas reforms impact related companies?

A govt-appointed panel of Kirit Parikh has recommended doing away with the norms where prices of natural gas are fixed in tandem with world markets. How will the reforms affect companies in the sector

Kirit Parikh panel recommendations: 'Remove caps on gas prices by 2027'

The committee has also recommended a ceiling price of $6.5 per mmBtu, which may be increased yearly by about $0.5 per mmBtu till 2027, Parikh said

Core sector output growth slows to 20-month low of 0.1% in October

Output accelerated by only 0.1% in October; 4 of 8 core industries reported production contraction

India's gas target of 15% was only aspirational. Time to give it up?

While several bankers and analysts have projected the difficulty of reaching this number, it is important to figure out where the target of 15 per cent came from

India to receive first cargo from Indonesia's Tangguh LNG plant today

India will receive its first cargo from Indonesia's Tangguh liquefied natural gas (LNG) plant at the Dahej terminal on Monday, according to a Refinitiv analyst and Refinitiv ship tracking data

Nigeria drills for oil in new field as theft and extremism erode earnings

Nigeria on Tuesday began drilling oil and natural gas in the country's northern region, anticipating a boost to the nation's finances even as the new energy supplies face the threat from theft and extremist activity. President Muhammadu Buhari flagged off the drilling within Kolmani oil field in northeast Gombe and Bauchi states, making it the first area where oil is being drilled outside the southern Niger Delta region. It has a reserve of up to 1 billion barrels of crude. The drilling began nearly three years after Nigeria announced the discovery of oil in commercial volume in the region, which is embroiled in a decadelong war against Islamic extremists. Analysts have raised questions about security measures to protect energy facilities there, while there are environmental concerns about tapping into more climate-changing fossil fuels. Crude oil has been critical in expanding infrastructure in the West African nation, accounting for 41% of total federal government revenue in 2021

China signs one of its biggest ever LNG deal with Qatar at $60 billion

Qatar Energy will send Sinopec 4 million tons of LNG a year starting in 2026, the state-controlled companies announced in a virtual ceremony on Monday

Cut I-T, review capital gains tax in Budget 2023-24: CII to govt

FM Nirmala Sitharaman's pre-Budget consultations from today