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Agreements signed to connect ONGC’s natural gas fields with North East Gas Grid

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Oil and Natural Gas Corporation (ONGC) and ndradhanush Gas Limited (IGGL) have signed pacts to transport natural gas from ONGC’s gas fields in Jorhat, Silchar and Tripura to the demand centres and capital cities of all the eight north eastern states for which the IGGL is laying a 1,656 km long natural gas pipeline, according to PTI.

Oil and Natural Gas Corporation Limited (ONGC) and Indradhanush Gas Limited (IGGL) have signed three hook-up agreements to connect the former’s natural gas fields with the North East Gas Grid (NEGG) for transportation of natural gas.

The natural gas will be transported from Jorhat, Silchar and Tripura Assets of ONGC to the consumers, an official release said on Thursday.

IGGL is laying a 1,656 km long natural gas pipeline connecting the capital cities and the demand centres of all the eight north eastern states.

These hook up agreements will facilitate connection of the natural gas fields of ONGC with the IGGL’s pipeline for evacuation of natural gas, IGGL Director Sanjay Kumar said.

“The hook-up agreements signed with IGGL is a strategic move to enhance the connectivity of ONGC fields with the North East Gas Grid which will benefit both the companies”, he said.

It will make domestic gas available to the customers and will contribute to the country’s economy as a whole, he said.

NEGG infrastructure, the hydrocarbon potential of the northeastern region can be fully utilised for development of a gas-based economy in line with the Centre’s Hydrocarbon Vision 2030, Kumar said.

IGGL is also in touch with other natural gas producing companies to hook up their gas fields with NEGG.

The hook-up agreements will facilitate withdrawal of 1,85,000 SCMD of Natural Gas from Jorhat Asset, 82,500 SCMD from Silchar asset and 7,00,000 SCMD from the Tripura asset of ONGC through NEGG.

The NEGG project being implemented by IGGL has achieved 75.52 per cent physical progress as on date, the release added.

ALSO READ: Reliance Industries Q1: Expects refining weakness offset by strength in Jio and retail

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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How Nord Stream breach reminds about vulnerabilities in undersea infrastructure

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Nord Stream gas leak is a reminder of the problem of fugitive methane, which comprises the leak, loss, escape and emission of gas from active or abandoned industrial sites.

On the night of September 26, near the end of the calm season on the Baltic, a broiling kilometre-wide circle disturbed the face of the sea and a huge mass of methane erupted into the air.

The gas formed a cloud that crossed Europe, in what’s considered the greatest single release of this potent greenhouse gas ever recorded. It was caused by four breaches of Russia’s Nord Stream 1 and 2 gas pipelines, located in or near the territorial seas of Denmark and Sweden. Seismologists detected explosions at a depth of 70-90 metres on the seabed. These were not earthquakes.

Danish, Swedish and German authorities have reported that the explosions were a deliberate act, equivalent to the use of 500 kilograms of TNT. The bubbling surface of the Baltic is a stark visual image of fossil fuel consumption changing the world’s climate. Methane has over 25 times the global warming effect of the equivalent amount of carbon dioxide and is a crucial target for combating climate change.

It also highlights the vulnerability of undersea pipelines and undersea infrastructure in general, of which Australia has a significant network. Wasted emissions The explosions have had no direct economic or energy consequences. Nord Stream 1 stopped operating at the beginning of September following gradual supply reductions during the summer.

Nord Stream 2 was never launched as Germany refused to certify it following Russia’s invasion of Ukraine. Europe was not counting on the resumption of supplies from either pipeline. While the pipelines were not transmitting gas, they contained methane gas to maintain pressure.

The amount of gas released is hard to quantify. Estimates suggest that roughly 300,000 tonnes of methane (or the equivalent of 7.5 million tonnes of carbon) has probably been released into the atmosphere, making it the largest release of methane in a single event (and over twice as large as the 2015 Aliso Canyon leak in California).

That tonnage represents around 10 percent of Germany’s annual methane output, or one third of Denmark’s total annual gas emissions, or the equivalent of the annual carbon emissions of one million cars. Nord Stream, however, is a wasted emission without either social benefit or productivity gains.

The leak is a reminder of the problem of fugitive methane, which comprises the leak, loss, escape and emission of gas from active or abandoned industrial sites.

While emissions from beef and rice production are the main culprits of fugitive emissions, oil and gas facilities also leak a significant amount of methane, as do activities such as fracking, coal mining and oil extraction. CSIRO estimates global oil and gas industries emit between 69 and 88 million tonnes of methane each year.

Australia’s undersea infrastructure network Critical undersea infrastructure plays a vital role in the global economy. For example, the fibre-optic cable network is the unseen lifeblood of globalisation, consisting of around 1.1 million kilometres of cables carrying 99 percent of global data.

When we talk about data flows and digital commodities we are, in fact, referring to the transmission of communications through these undersea cables. The stability of the global economy and the wealth of multi-national corporations depend on the integrity of these cables and on the uninterrupted connectivity they provide.

Undersea pipelines delivering oil and gas from one country or state to another form the material basis of energy markets. Australia’s offshore energy pipelines include the 740km-long Tasmanian Gas Pipeline, 300km of which is sub-sea, as well as the Gorgon (140km), Scarborough (280km), Pluto (180km), Browse (400km), and numerous others. Undersea power cables are a rapidly developing infrastructure. The proposed undersea and underground Marinus power cable link will connect Tasmania and Victoria.

Harnessing the potential of offshore wind (now one of the largest energy investments globally) is being realised in Australian projects such as Star of the South. Meanwhile, Sun Cable aims to supply renewable energy produced in Australia to Singapore via 4,200km subacqueous cable.

While speculative, such projects represent aspects of the green power revolution which will drive emissions reductions, and which are likely to become more common. Ensuring the resilience of these systems against malicious digital and physical threats is a priority.

System failures and hostile agents

The dependence of society and the economy on the reliability of this infrastructure is underappreciated. The integration between cables and pipelines and the national and international markets they service is so tight, even the slightest disruption could inflict disproportionate economic damage.

These systems are so complex and closely integrated that their failures have consequences that traverse physical and national borders. This represents a significant challenge to ocean infrastructure governance.

System failure may occur because cables and pipelines are prone to accidental damage by ships’ anchors, trawl net fishing, and other undersea activities such as dredging. As the Nord Stream pipeline incident shows, they are also vulnerable to intentional hostile attack both physical and cyber.

Hostile agents may exploit the fact that the sea is an opaque realm, one that’s difficult to operate in and defend. It, therefore, provides an effective shield against detection and subsequent prosecution. Nord Stream was attacked in one of the busiest and the most surveilled seas in the world the Baltic, in close proximity to the Danish military base of Bornholm Island. This clearly exposes the vulnerabilities of undersea infrastructure: it enables attackers to get close to targets undetected.

Cables and pipelines are governed by both national and international law. However, there are security gaps in international waters, where responsibility is ambiguously shared between corporations and government. The lack of clarity gives companies little incentive to invest in security, or cooperate with government, increasing their vulnerability to attack.

The privatisation of cables and pipelines has resulted in cost-effective practices being adopted to reduce operating costs. But this has been achieved by reducing maintenance and surveillance. Undersea infrastructure will continue to be vital to world trade and social cohesion.

The growing demand for bandwidth and the need for energy security makes cables and pipelines both more crucial and vulnerable. Nord Stream highlights the need for resilient systems to limit the risk of accidents and has given greater impetus to transition from fossil to renewable energy.

Also Read: Joe Biden vows advance air defense systems for Ukraine after Russian missile attack

 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Looking at significant capex increase in FY22, says GAIL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The Kochi-Mangaluru natural gas pipeline, worth Rs 3,000 crore was inaugurated by Prime Minister Narendra Modi on Tuesday. The 450 km pipeline is of around 12 mmscmd capacity and if the Tamil Nadu section is added then the entire line will be of 1,600 mmscmd capacity. Manoj Jain, CMD of GAIL discussed its impact on the company.

The Kochi-Mangaluru natural gas pipeline, worth Rs 3,000 crore was inaugurated by Prime Minister Narendra Modi on Tuesday. The 450 km pipeline is of around 12 mmscmd capacity and if the Tamil Nadu section is added then the entire line will be of 1,600 mmscmd capacity.

Manoj Jain, CMD of GAIL discussed its impact on the company.

“This portion we are connecting to Mangalore. We have started supplying gas to one of the big fertiliser plant there and we expect that the Mangalore Refinery and Petrochemicals Limited (MRPL) will also be connected very shortly,” he said.

In terms of gas volumes, he said, “We are already at the levels of the last year, we have surpassed those levels. The effect of COVID is almost gone and Q3 and Q4 are definitely going to be similar as last year or maybe slightly more than this.”

He was bullish on the capex plan going ahead. “There were some setbacks with the actual target that we set before COVID but now we are catching up and by the end of the year, we should be able to meet the entire capex target of more than Rs 5,400 crore which we have set for this year and next year in-line with the government’s vision we are also looking at significantly upping this capex.”

Crude oil at USD 50 per barrel is good for the company, he shared. “It balances our portfolio, both gas index price as well as the crude index price,” he said.

For more, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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GAIL’s online gas portal to boost transparency

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The launch of an online portal by GAIL (India), allowing third-party access to its natural gas pipeline network, would ensure transparency and permit companies to understand the infrastructure further, analysts said on Tuesday.

The launch of an online portal by GAIL (India), allowing third-party access to its natural gas pipeline network, would ensure transparency and permit companies to understand the infrastructure further, analysts said on Tuesday.

GAIL, India’s biggest gas marketing and trading firm, launched an online portal on Monday for companies to book natural gas pipeline capacity.

The state-run utility, which operates more than 11,400 kilometres of natural gas pipelines across various parts of India, has been providing third-party access to natural gas pipelines since 2004.

GAIL has served about 100 to 150 customers over the past few years, and, this would be the first time the company has taken the process online.

“It’s a positive step towards introducing further transparency into the market,” said Nicholas Browne, senior gas analyst at energy consultancy Wood Mackenzie.

“I haven’t heard of this mechanism elsewhere in Asia although other markets such as Japan have introduced third-party operators, so a visible step towards separate ownership of transmission.”

While GAIL has said the portal was to bring transparency in the way pipeline capacity is sold, the move could help the utility convince the Indian government that it is not blocking access to the market as it faces the threat of being broken up, said Browne.

The government had said in January it wanted to split GAIL into two companies – one for laying pipelines and the other for marketing and petrochemicals – to encourage more transparency between the two operations, but has since appeared to have changed its position.

India, the world’s third-biggest energy consumer, is building infrastructure, including pipelines and import facilities, to raise the share of gas in its energy mix to 15 percent by 2030 from the current level of about 6.5 percent.

LNG IMPORTS

India’s imports of liquefied natural gas (LNG) surged by 20 percent in the first half of this year, compared with the same period a year earlier, said consultancy IHS Markit’s senior analyst Vidur Singhal.

“With this initiative, there could be more visibility on available pipeline capacity and greater push for short-term LNG trades directly between buyers and sellers,” he added.

However, constraints to increase the country’s LNG imports still remain.

“The bigger constraint is actually the quantity of pipelines rather than open access,” Woodmac’s Browne said, adding that India remains critically under-served by pipelines.

“Pipeline construction in India is notoriously difficult … as such, companies have proposed building their own pipelines to avoid being reliant on GAIL’s construction schedules.”

GAIL is working on increasing the gas grid by another 5,000 kilometres, connecting eastern and north-eastern India.

(Reporting by Jessica Jaganathan; additional reporting by Nidhi Verma in NEW DELHI, Editing by Sherry Jacob-Phillips)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Should Elon Musk be able to buy Twitter?