Our daily LNG price and vessel rates database

For reference purposes, the website has a daily Indian LNG projects carrier price database
We also have daily LNG prices data for key markets around the world
The daily prices are given in terms of
-- FOB rates
-- Transhipment rates, where relevant
-- Spot rates
Easy maneuverability and past price trends are the highlights of our pricing software

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New pricing norm for Basra crude: Indian refiners are unhappy

A new method of pricing Basra crude from Iraq using the monthly average of DME Oman futures two months before the oil loads has not gone down well with Indian refiners. Other Middle East producers like Saudi Arabia, Kuwait and Iran price their oils one month before loading.

This means Iraqi crude loading in October would be priced off DME’s futures contracts in August.
This poses a risk to Indian buyers, who would only be notified by mid-September whether they had successfully bid for a cargo, making it hard for them to hedge against price changes in advance.

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LNG plant in Bangladesh: Petronet LNG out of the race

Petronet LNG seems to be losing out on a deal to build an LNG plant in Bangladesh.
The company could not compete with a host of international competitors, including Chinese and international companies such as Shell.
The selected bidder would have 60 percent stakes in the proposed 3.5 MMTPA project while Bangladesh would have the remaining 40 percent which would be built under engineering, procurement and construction contract.
Read more on Indian LNG projects imports by Bangladesh, with deals not just with Oman but with Malaysia and Indonesia in the offing.

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Rs 12,000 crore coal-based ammonia urea units: LSTK contracts are coming up

Nearly 70% of China's urea capacity is based on ammonia produced from syn gas extracted out of coal
In India, two such projects are coming up, with price tags of around Rs 12,000 crore
In one, an international agency has been hired as consultant
In the other, process licensors have been selected.
Clearly promoters of both these urea-ammonia plants seem to be seriously going about trying to get their clearances and financial closures
For one, the RFQ for the LSTK contractor is expected in November 2017, for another in 2018

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Greka Drilling: Flying high

Greka Drilling is primarily focused on China but India too is a big market
In India, it has partnered with Essar Energy in CBM drilling work in its Ranigank block.
But Greka really came on its own in April when it was chosen ahead of 16 other contractors for a 73 well programme for state-owned energy group ONGC in the Bokaro CBM block.
Greka is now confident of bagging more CBM related work in the future.

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Khed SEZ: Good location for oil & gas equipment suppliers

The 4200 acre Khed SEZ near Pune is a big success story.
The industrial park is being built in a JV between the Kalyani Group and the MIDC
The first phase has been launched and more than 40 manufacturing units have settled in comfortably in the park.
The park is ideally located for manufacture of oil and gas equipment too, this website believes

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Fresh US sanctions on Russia: LNG lobby sees more than what meets the eye

There is much much talk in the LNG community that recent US sanctions on Russia were prompted to push US LNG cargoes to Europe and stall fresh pipeline imports
The idea may sound a little far fetched but the website carries here a cogent argument on why this may actually be so
The argument then goes on to reveal that Asian competition may deter Europe from accessing US cargoes

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Road shows by ONGC: Rs 850 crore of equipment purchase

Highly placed sources said that ONGC RIL tenders contracts is planning road shows abroad for some of its critical equipment requirements so as to be able to elicit more competition
One such road show will involve critical drilling related equipment worth around Rs 850 crore.
Find out more on what kind of equipment this is going to be and who can qualify
The qualification rules are also to be relaxed to ensure higher competition.

What kind of discount is ONGC looking for?

What is the extent of discounts that ONGC is currently seeking from suppliers of E&P equipment?
The discount sought is high.
Since the rapid decline of equipment and service prices, the traditional Last Purchase Rate model for determining the reserve price is no longer working.
A rough yardstick is followed, which is usually a deep discount to the Last Purchase Rate

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The rise of the second rung of oil & gas EPC contractors: Is a third rung likely?

The inexorable rise of the second rung of oil and gas EPC contractors is something to take note of
The likes of Kalpataru Power Transmission Ltd, with its cut rate quotes, are quickly pushing out more established competitors out.
Just as the first rung of indigenous players such as L&T and Punj Lloyd pushed out the multinationals, companies such as Kalpataru are pushing the first rung out.
They are eating up the EPC space not just in the high cost, low-end E&P segment but also in the midstream section.
As the second rung moves up the value chain, as L&T did, will a third rung emerge?

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Oil demand and supply: Battle still on

Saudi Arabia’s then Oil Minister Ali al-Naimi had once said that “whether it goes down to $20, $40, $50, $60, it is irrelevant,”. This was when Saudi Arabia had tried to run US shale producers to the ground by driving the price as low as possible
Ali al-Naimi's strategy did not work and he lost his job.
Saudi Arabia, in the face of quickly declining foreign exchange reserves, is trying to shore up the market by leading production cuts
The website carries here an interesting picture of declining crude prices in relationship with the decline in Saudi foreign exchange assets
But the battle is not over yet between US shale and Saudi oil

When will demand begin to fall?

The advent of electric cars is meant to cause demand to begin a downward slide
But when is that going to happen remains a moot point
While some say that the point of inflexion can happen sooner than later, there are a lot of others who say that this point is not coming anytime soon.

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Business development opportunities in fertilizers

New SSP plant: No response to a tender for contractor
New ammonia- urea fertilizer complex: Environment clearance granted
Technical pesticide unit: Tender for gas likely in October 2017
Find out when will Chambal's new ammonia-urea plant will go onstream: When will 2 mmscmd of gas demand will come up?
New 800 TPD SSP unit coming up

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Tug of war over rights to KG Basin gas: GAIL vs. GITPL

A tug of war is on between GAIL and GSPL India Transco Ltd (GITPL) over who should have the rights to transport gas from ONGC's Odalarevu terminal from where the Indian E&P projects gas major's KG Basin gas output is to come in.

GITPL is implementing the cross-country Mallavaram-Bhilwara-Vijaipur natural gas pipeline and it claims that one of the major reasons why it was set up was to ferry gas from ONGC RIL tenders contracts, offshore KG Basin fields, such as the S1 and VA deepwater fields, and eventually gas from the KG-DWN-98/2 in 2019.
GAIL has now laid a counter-claim to do what is called a tie-in with the Odalarevu terminal from its regional KG Basin network on the ground that it is the nearest pipeline network. GITPL's tap-off point is 13 km away from Odalarevu whereas GITPL's is 50 km away. The ball in now in the court of the PNGRB

What is causing "significant adverse changes in gas demand"?

A worrying point that needs highlighting is the GITPL's assertion that there are "significant adverse changes in market demand" that is threatening the viability of the Mallavaram-Bhilwara-Vijaipur natural gas pipeline. The 1800 km pipeline will traverse through 33 districts and six states. GITPL also claims that it will be able to cut down tariff drastically: gas from the KG basin can travel to NFL's Vijaipur plant at 25% of the current applicable tariff.
But the point is what is what has changed about gas demand in the heart of industrial India through which the pipeline winds it way?
Clearly, demand for gas has not been found to be as buoyant as was anticipated earlier.

The inability of cross-country pipelines in India to stay viable needs a further investigation. The market for gas is becoming more dynamic, with a plethora of competing fuels as crude prices continue to stay low. LPG, FO/LSHS and Pet Coke are competing with gas for the attention of dual feed furnace owners. Low cost renewable energy may also increasingly emerge as a competitor. 

Undoubtedly, India should ordinarily have an insatiable appetite for gas but when will demand emerge remains a moot point.  Will disruptive changes -- such as lower for ever crude prices or the advent of electric car or really low cost renewable energy --  kill this demand before it emerges?
The jury is still out on this subject.

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