Monday January 27, 2020
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Demand for natural gas in India will increase, so will domestic production: ICRA

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New Delhi: The demand for natural gas in India will increase to 330 million standard cubic meters per day by 2024-25, while domestic production will rise by 60 percent to around 150 mscmd, research and ratings agency ICRA said on Friday.

Photo: http://www.livemint.com
Photo: http://www.livemint.com

The increase in supply will come from the likely commencement of Gujarat State Petroleum Corp’s Deen Dayal block and state-run ONGC’s KG basin blocks along with marginal increase in Mukesh Ambani-led Reliance Industries’ KG basin production and other sources, ICRA said in its latest report on Indian gas utilities.

“Despite high domestic demand-supply deficit, the demand for regasified liquefied natural gas (RLNG) in the country is critically dependent upon the prices of liquid fuels and global spot LNG prices,” it said.

“The prices of long-term RasGas LNG are expected to be at materially higher level than liquid fuel prices and spot LNG prices till FY17, thereby leading to significant pressure on demand and marketing margins of RasGas RLNG in view of lower prices of liquid fuels and spot LNG,” the report said.

The marketers are expected to partially mitigate the risk by taking recourse to offtake flexibility available under the GSPA and by marketing a higher share of spot LNG, it added.

Due to competition from liquid fuels and coal, the actual consumption of RLNG could be lower than demand potential resulting in significant competitive pressures among LNG terminals, said ICRA senior vice-president K.Ravichandran.

“Even though the government of India has ambitious plans to double the pipeline capacity to 30,000 km, the constrained gas availability may be a key hurdle for new pipeline projects, which require large investments,” he said.

Meanwhile a petroleum ministry source here told IANS on Friday that a decision is expected soon on the premium to be paid on natural gas for all new discoveries in ultra-deep-water and deep-water areas as well as in high pressure-high-temperature areas.

In October 2014, the government had announced an upward revision to $5.61 per unit against the industry’s demand for at least doubling it to a little over $8 per unit, as per the Rangarajan Committee recommendations.

As per the mechanism approved in October 2014, the new price of $5.61 per unit will be applied for normal categories of gas.

But for all new discoveries in ultra-deep-water areas, deep-water areas and the high pressure-high-temperature areas, it said that a premium will be given but did not spell out further details on how it will be calculated.

While shallow-water blocks are at a depth of up to 100-500 metres, deep-water blocks descend to around 1,000 metres. Those at depths beyond 1,500 metres are classified as ultra-deep-water blocks.

These are the areas where the Reliance Industries-led consortium has maximum discoveries.

Reliance Industries will not immediately be able to avail the new price as it remains locked in an arbitration with the government over alleged shortfall in production from its Krishna-Godavari basin fields.

The government has announced a new rate, effective April 1, at $4.66 a unit – lowering it by 8 percent from the earlier $5.61 owing to lower international prices.

(IANS)

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Novel Coronavirus: Government Deploys Health Team on Nepal Border

Many Indian students studying in Wuhan, the epicentre of the outbreak have been stuck there

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Coronavirus
The Coronavirus outbreak, which has so far caused 41 deaths in China, and caused the country to quarantine 16 cities, is causing comparisons to the 2003 spread of severe acute respiratory syndrome, or SARS, which decreased the value of the global economy by $40 billion. VOA

In the wake of a confirmed case of novel coronavirus in Nepal, the Union Health Ministry has subsequently strengthened its vigil in the areas bordering Nepal.

The recent deployment of health team has taken place at Panitanki in West Bengal, entry point from Nepal, said the Health Ministry on Monday.

“Update on #ncov2020 – Subsequent to confirmed #coronarvirus case in #Nepal, vigil strengthened at Panitanki (West Bengal) entry point from Nepal,” the ministry tweeted.

Earlier on Sunday the ministry had informed that in response to confirmed case of the new virus in the neighbourhood country Nepal, India stepped up vigil in districts bordering Nepal. The health ministry said that teams of medical experts were also deployed at border outpost with Nepal at Jhulaghat and Jauljibi in Pithoragarh district in Uttarakhand.

Coronavirus
Southeast Asia’s proximity to China and dependence on that nation for a major share of its economy is raising concerns that the coronavirus outbreak  that started there will not only have health impacts but harm the region’s economies. VOA

In continuation of its efforts to stop the virus from entering in India and making the passengers aware, the ministry has also displayed signage advising the passengers for self reporting and other precautions, disseminated through advisories, at the Mumbai airport.

According to the health ministry, a total of 29,707 passengers from 137 flights have been screened. Fortunately, no case of coronavirus has been found till date.

Also Read: Patients May Suffer Invasive Treatments for Harmless Cancers: Researchers

According to the announcement made by Chinese health authorities on Monday, 2,744 confirmed cases of pneumonia caused by the novel coronavirus (2019-nCoV), including 461 in critical condition and a total of 5,794 suspected cases have also been reported. The killer virus has caused 80 deaths in China, as per Chinese authorities.

Many Indian students studying in Wuhan, the epicentre of the outbreak have been stuck there. The health ministry said it is working closely with the Ministry of External Affairs and is in touch with the students. (IANS)