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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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Low Cure Rate For Childhood Cancer in India: Experts

On International Childhood Cancer Day, the hospital organised a ‘Sit and Draw competition’ with pediatric patients and rewarded the winner

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Health insurance covers only for hospitalization and doesn’t necessarily cover the medical expenses incurred for the treatment of major illnesses. flickr

Childhood cancer comprises almost 3-5 per cent of the total cancer cases in India, experts said here on Friday, expressing concern over the low cure rate due to lack of available data.

“The disturbing reality is that the cure rate of pediatric cancer is almost 80 per cent in the developed countries. When we see the data from major cancer centres, it actually can match up to the Western standard but this data is not enough,” Haemato-Oncologist Vivek Agarwala said at an awareness programme conducted by Narayana Superspecialty Hospital, Howrah.

According to the Indian Council for Medical Research, cancer in children constitutes approximately 3-5 per cent of the total cancer cases in India.

Agarwala said a large portion of the incidence of childhood cancer in society is still not addressed.

Cancer survivor. Flickr

Also, a large section who don’t have access to premier institutes are often diagnosed late due to financial crunch and that is why the overall treatment rate in India is low.

“Probably, the government and society at large are not considering it a big problem as it is just around 5 per cent. We are always campaigning for breast and cervical cancers,” Agarwala said.

“We must remember this 5 per cent of cancer is majorly curable if given proper treatment,” he said.

Leukaemia and retinoblastoma (a form of cancer where children have a white eye) are the two common forms of cancer in children.

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Talking about awareness and symptoms that parents need to watch out for, he said: “Symptoms are different for different cancers, but children who have cancer have poor growth, poor weight gain and decreased appetite. One must get their children evaluated on seeing these symptoms”.

On International Childhood Cancer Day, the hospital organised a ‘Sit and Draw competition’ with pediatric patients and rewarded the winner. (IANS)