June 23, 2017, Volume XIV, Issue 2

Energy News Monitor

SUPPLY DRIVING DEMAND: SAYS LAW IN ACTION? Monthly Gas News Commentary: May - June 2017

India outlook for the industry. The demand from investors has been so strong that Indraprastha Gas Ltd, which supplies here is optimism on demand for gas that is driving to homes and vehicles in New Delhi, raised the cap on imports but pessimism on production of domestic T foreign ownership to 30 percent from 24 percent, and gas. H-Energy, the Mumbai-based oil and gas arm of may increase it again to almost half. India’s largest city gas Hiranandani Group plans to invest more than ₹ 45 billion distributor Gujarat Gas Ltd, where Aberdeen Asset in the natural gas sector in five years to develop LNG re- Management Plc is the biggest non-state investor, and gasification units on the west and east coast of India along Mahanagar Gas Ltd. have also seen an increase in with pipeline infrastructure. H-Energy is at an advanced offshore holdings. India’s gas demand is about a fifth of stage of setting up an LNG re-gasification unit at Jaigarh China’s due to weak domestic supply and poor port in Maharashtra. As part of its phase-1 plan, the infrastructure, though the government is trying to change company in 2017 signed an agreement with France-based this. Measures have been stepped up to improve air energy company Engie to charter a FSRU. After phase- 1 quality in cities by giving priority to distributors such as of the project stabilises, the company will be setting-up a Indraprastha Gas for accessing cheaper local gas. land based re-gasification plant with an annual capacity of Offshore holdings in Indraprastha Gas climbed to nearly 8 mtpa. Also, the company has already started work on 25 percent as of March 31, from about 21 percent a year Jaigarh to Dabhol tie-in pipeline which will carry natural ago, according to data. Aberdeen Asset Management held gas to the gas grid of GAIL (India) Ltd at Dabhol. The about 4.6 percent of outstanding shares in Gujarat Gas as company has also approached PNGRB, for laying a 700 of end-April. Foreign holdings in the company have km pipeline to connect the East coast FSRU to major climbed about 3 percentage points to 15.4 percent in the demand centres in West Bengal. past year. Mahanagar Gas, which sells the fuel in the Fidelity Investments and Morgan Stanley Investment financial capital Mumbai and its suburbs, has seen stock Management have increased exposure to Indian city-gas in the hands of foreign investors increase nearly six times retailers, as the emphasis on clean fuels burnishes the since listing last year. India’s government wants more

QUICK FACT

Solar power today has a share of about 18% to the total renewable power installed capacity while in terms of the electricity generation the share is about 12% urban households to use natural gas and LPG for rural down the value of its investment in Dabhol power plant. users. The company has taken up synchronised development of seven city gas distribution network projects at Varanasi, The supply side does not share the optimism of the Patna, Jamshedpur, Kolkata, Ranchi, Bhubaneswar and demand side. ONGC has said that producing natural gas Cuttack. The first LNG terminal at the east coast is also is no longer a profitable business for the company as the coming up in Dhamra in Odisha under a joint venture of government-mandated gas price is significantly below the public and private sector companies. cost of production. The oil major has sought a review of pricing formula from the government. ONGC wants a The oil ministry has formed all-powerful review floor or minimum price of natural gas be fixed at committees to monitor performance of ONGC and OIL, $4.2/mmBtu for the business to be viable. With the and will have power to relinquish any oil and gas field for current price, it does not make economic or commercial auctioning to private firms. Being dubbed as super- sense for any company to invest in new fields or in boards, the committees will be headed by the ministry’s augmenting production from existing ones. Fresh upstream nodal authority DGH, and will review and investment in unlikely if the price remains below the cost monitor performance of areas given to ONGC and OIL of production. In October 2014, the government adopted on nomination basis. The two panels, one each for a new pricing formula using rates prevalent in gas surplus ONGC and OIL, will review from annual work nations like the US and Canada to determine rates in a programme and budget to declaration of a discovery as net importing country. Prices have halved to commercial as also reservoir and production $2.48/mmBtu since the formula was implemented. India performance, monitoring of development activities and imports half its natural gas needs and the government is collaborations with other explorers. The order follows keen to cut import bill by raising indigenous production ministry’s unhappiness with state explorers particularly and ‘Make in India’. The price paid to domestic producers on delays in projects linked to output enhancement. It has is less than half of the rate paid for import of gas. ONGC already ordered a detailed review of board of directors of produces 80 percent of the 70 mmscmd which makes it ONGC for a possible revamp of the functional heads. the biggest gas producer in India. ONGC lost ₹ 50.1 ONGC produced 86 percent of its 26.13 MT of crude oil billion in revenue on natural gas business, and about ₹ 30 in 2016-17 fiscal from fields given to it on nomination billion in profit in just last one year. basis. Natural gas production from nomination fields accounted for 93 percent of the total output of 25.34 bcm. GAIL said it has drawn up investment plans of ₹ 300 The review committee will meet at least once every three billion for expansion. GAIL is currently executing gas months. Field development plans, feasibility reports of pipelines worth ₹ 200 billion and another ₹ 100 billion commercial discoveries in nomination fields and worth of lines are under various stages of evaluation. The monitoring of development activities for early pipelines under execution include Jagdishpur-Haldia line monetisation will also fall within the ambit of the that will take the environment friendly fuel to the east. committees. The visible hand of government Current projects will be completed by 2019-20, taking commanding and controlling the oil sector is unlikely to GAILs pipeline network to 15,000 km from the current produce more oil than what the invisible hand of the ₹ 11,000 km. The company has already spent capex of market can produce. Even if the invisible hand favours 21.8 billion in FY17 and plans to spend ₹ 42.6 billion in production, nature’s visible hand that dealt India its FY18 and ₹ 77.04 billion in FY19 towards setting up of meagre hydrocarbon has set limits on what can be pipelines, petrochemical and process plants. GAIL will produced. get charge of the LNG block, while state-owned power The ongoing rupee surge coupled with continuing price producer NTPC Ltd would be the largest shareholder in reductions of gas will push fuel cost down by around 5 the power block. The company reported 69 percent drop percent, which in turn will lower the gross margins of in fourth quarter net profit of ₹2.6 billion as it wrote upstream oil and gas players and deter fresh investment Rest of the World into the sector, Ind-Ra said. For the fifth consecutive Asian spot LNG prices edged lower as the early restart of time since implementation of the domestic gas pricing Chevron's Gorgon production facility in Australia formula in November 2014, the government in March weighed on sentiment, projects offered supply and lowered domestic gas prices by 0.8 percent to demand from Japan stayed weak. Spot prices for July $2.48/mmBtu. The price will be in force from April 1 to delivery LNG-AS were assessed at $5.40/mmBtu down September 30, 2017. The price ceiling for gas produced 5 cents from earlier. The early restart of Gorgon's first from discoveries in deep-water, ultra-deep water and high production line provided an unexpected boost to Asian pressure-high temperature areas for the period April- supplies after operator Chevron initially estimated the September 2017 is $ 5.56/mmBtu on gross calorific value outage would last until mid-June. Project stakeholder basis, while the domestic prices has been lowered to Exxon Mobil launched a tender to sell one cargo for $2.48/mmBtu on gross calorific value basis for this delivery in the second half of June days before news of period. However, it will marginally benefit the the facility's restart was made public. The various supply entities like GAIL, which will see its trading revenue fall tenders from Angola, Nigeria and Australia, which ₹ by 2.5 billion from domestic sales during in 1H of FY18. offered June-loading cargoes, came amid muted summer But since GAIL sells its domestic gases on a cost-plus demand from north Asian buyers. Any downside to Asia basis, its gross margins will be protected. GAIL will open spot prices could be capped by relatively firm European a new energy route for India early next year by beginning demand, including in Spain, traders said. Results from the regular imports of from the US, adding to New Nigerian and Angolan sell tender are expected to emerge Delhi's bargaining power with its predominantly West in the coming days, but Asian LNG market participants Asian suppliers. GAIL will begin importing gas in ships said it was unlikely that the cargoes would be sold to Asia under a long-term contract from Dominion Cove Point given the strength in Atlantic prices. LNG project from March 2018 and has floated tender for chartering ships for transportation. The company has Japan's Mitsui & Co Ltd plans to expand its LNG trading also made a time-swap deal for 1 MT of US gas for FY19 operation as demand for the cleaner fuel spurs more spot in an attempt to recast its supply portfolio in line with transactions in Asia. The move comes amid a big shift in domestic demand. GAIL had in 2013 tied up 2.3 MT the market in Asia, which takes in about 70 percent of LNG supplies for 20 years from Cove Point. It signed global shipments of LNG, with traders and end users another contract for 3.5 MT of LNG with Cheniere increasing their ability to trade in anticipation of a supply Energy Inc's Sabine Pass project in Louisiana, the influx from Australian and US projects. Mitsui traded 2.8 supplies from which will begin in December 2018. The MT of LNG in the year ended March 31, but will receive company also holds a 20 percent stake in Eagle Ford more supplies from next year when the Cameron LNG Shale of Carrizo Oil & Gas. The contracts with Cheniere project in Louisiana starts operations. The Japanese and Dominion make GAIL one of the largest holders of company has signed up to take 4 MT of LNG annually LNG portfolio linked to Henry Hub, the US gas price from the project, with some of it tied up in term contracts , and will allow it to market 6 MT of US gas. leaving it with volumes to trade. China currently Both Cheniere and Dominion projects have US energy imported about 26 MT of LNG in 2016, up by a third department's permission to export gas to countries such from a year earlier. The company is also looking for as India that do not have free trade agreement with buyers for supplies from an LNG project in Mozambique Washington. Regular gas supply from the US at an led by Anadarko in which Mitsui has a stake. affordable rate will underline the impact of a rebound in With a tanker expected to arrive in Taiwan shortly, the the US fracking industry on global energy trade and US will increase the number of countries that have widens options for India, giving it leverage against West received LNG from the Sabine Pass terminal in Louisiana Asian suppliers. to at least 23 of the 35 that can accept the vessels. The Cadiz Knutsen tanker will go to the Taichung LNG supplies from Baumgarten via the TAG and SOL terminal in Taiwan with a load of super-cooled gas from pipelines. Alternatively, Russian gas could go from Cheniere Energy Inc's Sabine, according Genscape western Turkey via Greece to Italy. Russia scrapped the shipping data. The increase in US deliveries coincides South Stream pipeline project, which would have with the LNG market worries that Qatar, the world's supplied Russian gas to southern Europe with an biggest LNG exporter, could experience problems undersea pipeline to Bulgaria, in late 2014 because of delivering fuel to some countries after Saudi Arabia and objections from the European Union on competition a few other Arab nations severed diplomatic and grounds. transport links with the gulf sheikhdom after accusing the The government of Australia's Northern Territory gave country of sponsoring terrorism. the go-ahead to start building a $600 million gas pipeline The Netherlands is set to receive its first LNG delivery that could help ease a shortage of the commodity in the from Cheniere Energy's Sabine Pass export plant in the country's east. Jemena, owned by State Grid Corp of US, according to shipping data. The Arctic Discoverer China and Singapore Power, was given permission to vessel, with a carrying capacity of 133,500 cubic metres build the westernmost portion of the 622 km line of LNG, departed the facility on the Gulf Coast and is designed to connect gas fields in northern Australia with listed as heading for Rotterdam, data shows. Cheniere is the eastern state of Queensland. Australia is the world's currently the only company able to export large cargoes second-largest LNG exporter, but has faced a growing of LNG from the continental US but very few have so crisis over local gas supply with prices rocketing over the far landed on European shores despite analyst past two years as the commodity is shipped abroad. The expectations of a surge in supply. According to US company had previously said it planned to begin Department of Energy data, the biggest beneficiary of construction of a compressor station, for which it has Sabine Pass volumes has so far been Mexico, followed by already won approval, in May, and that it may eventually Chile, China, Japan, Jordan, India and Turkey. Currently extend the pipeline. Spain, Portugal, Italy and Malta are the only European ConocoPhillips said that production and exports of LNG countries to have received deliveries. Analysts and some from an investment project in Qatar have not been LNG traders expect European imports to improve from affected by growing Middle East diplomatic tensions. this summer due to increased LNG production capacity Saudi Arabia, Bahrain, Egypt and the United Arab as markets in Asia and elsewhere struggle to absorb the Emirates cut ties with Qatar, accusing the country of growing pool of supply. In February Britain received its supporting extremism. Qatar has denied the allegations. first ever LNG delivery from Peru aboard the Gallina Concerns have grown that global access to Qatar's LNG tanker. exports LNG from Peru, could be cut, especially after some ports said mostly to Mexico, but due to contractual issues with they would not accept Qatari-flagged vessels. Houston- Mexico's CFE the oil major had opted instead to divert based ConocoPhillips owns a 30 percent stake in an LNG some cargoes into alternate markets, traders said. project operated by Qatargas Operating Co Ltd, part of Austrian energy group OMV and Russia's are the state-controlled energy company. Mitsui & Co Ltd considering reviving a gas pipeline project through the owns a remaining 1.5 percent stake in the project, which Black Sea connecting Russia to central and southern processes about 3 m/day. ConocoPhillips controls the Europe. If realized, the project would likely boost the Golden Pass LNG facility in the US along with Exxon importance of OMV's Baumgarten gas hub, which Mobil Corp and Qatar . distributes around 57 bcm a year. The project would be Qatar has no plan to shut the Dolphin pipeline that an extension of the TurkStream pipeline, which Gazprom transports natural gas to the UAE despite the severing of plans to finish by the end of 2019. The extended line diplomatic ties between the two Gulf Arab nations. Saudi could pump Russian gas to Italy, which currently receives Arabia, the UAE, Egypt and Bahrain said they would cut all ties including transport links with Qatar, the world's from Russia to China per year. The Power of Siberia top seller of LNG, accusing it of supporting terrorism. pipeline, expected to be launched by the end of the Doha denies the accusation. Qatar supplies roughly a decade or in the early 2020s, should bring 38 bcm to third of global LNG - natural gas that has been converted China per year. Gazprom managed to clinch the Power into liquid form for export. The pipeline was the first of Siberia deal after ten years of painstaking talks with cross-border gas project in the Gulf Arab region. It Beijing. Neither Gazprom nor state-owned CNPC pumps around 2 billion cubic feet of gas per day to the immediately responded to requests for comment. UAE. Tankers load Qatari crude along with UAE oil as According to BP's energy outlook to 2035, the share of shipping ban eases. The diplomatic dispute has stoked pipeline gas supplies to China, including from Russia, will concern that any supply disruption could spill over into remain largely unchanged over the ten years from 2025, global gas markets. Even a partial shutdown would force with the share of LNG and China's own gas output the UAE to seek replacement LNG supplies. The UAE significantly rising. could cope with Qatar suspending its two to three Oil majors BP and are deepening their foray into monthly LNG deliveries by calling on international blockchain technology, starting to run blockchain trades markets, but Dolphin piped flows are too large to replace in parallel with their live trading systems, according to fully. developer BTL Group. The energy traders, together with The Philippines aims to build a $2 billion receiving and Austria's Wien Energie, had previously tested BTL's distribution facility for imported LNG, as it seeks to Interbit blockchain platform over 12 weeks, carrying out replace depleting domestic gas reserves that now produce trades in European natural gas. a fifth of its power. Construction could be completed by said it has started building China's largest natural 2020, or four years before the Malampaya natural gas field gas storage and logistics center with the capacity to store is depleted. The Philippines' energy demand will triple by up to 10 bcm of gas in Henan province in the central part 2040, with electricity requirements anticipated to grow of the country. The world's second-largest economy is four times from 2015. Chinese and Japanese companies investing in infrastructure from pipelines to storage tanks are among the foreign investors who want to help build as Beijing prepares to switch from coal-fired boilers and energy infrastructure, including LNG facilities. Several heating systems across 28 of its smoggiest cities to natural firms have expressed interest in building LNG facilities gas or electricity by October. The storage facility is in the Philippines, including Manila Electric Company, expected to open in May 2018. The storage facility will be formerly in talks with Osaka Gas Co Ltd for a joint connected to pipelines and supply gas to central China, venture. Beijing and Tianjin. Talks over new routes for gas supplies to China from LNG: Liquefied Natural Gas, ONGC: Oil and Natural Gas Russia have stalled while Beijing rethinks the balance of Corp, mmBtu: million metric British thermal units, OIL: Oil its energy needs, including how much LNG it might use. India Ltd, FY: Financial Year, mtpa: million tonnes per annum, Gazprom, which is already building a gas pipeline from bcm: billion cubic meters, mmscmd: million metric standard Eastern Siberia to Chin, the Power of Siberia, was in talks cubic meter per day PNGRB: Petroleum & Natural Gas over two more routes: the so-called western gas route and Regulatory Board, DGH: Directorate General of a gas pipeline from the Pacific Island of Sakhalin. Hydrocarbons, MT: Million Tonnes, Ind-Ra: India Ratings and Gazprom said there were no developments on the two Research, FSRU: Floating Storage and Regasification Unit, US: pipelines, whose combined capacity, if built, is seen United States, CNPC: China National Petroleum Corp, UAE: United Arab Emirates adding up to another 40 bcm in possible gas supplies

NATIONAL: OIL

BPCL reassessing plan to build in NGT hearing on April 13 this year, the agitators had Allahabad committed to the Tribunal not to obstruct work. IOC said the terminal will store LPG in mounded vessels, June 20, 2017. Corp Ltd (BPCL) is which are considered the safest in the industry worldwide. revisiting its mothballed plan to build a refinery in Allahabad to cater to the expanding demand for fuel in Source: The Times of India the country. India’s fuel demand rose 5% in 2016-17, 7 petrol pumps sealed for tampered meters in with consumption of diesel and petrol rising about 2% Mumbai and 9% respectively. The expansion in fuel demand has spurred refiners to increase capacity, which the June 20, 2017. Over the past three days, Thane Crime government expects to go up by 150 million tonnes in the Branch has raided nine petrol pumps which showed a next 7-8 years from 235 million tonnes today. The false reading to customers while pumping less fuel than increase is expected to include 50-60 million tonnes of has been paid for. The Thane crime branch has sealed brownfield expansion. BPCL, along with Indian Oil Corp seven of the nine petrol stations it raided after learning (IOC) and Corp Ltd (BPCL), is that they had been operating with rigged dispensers working on setting up the world’s biggest greenfield which show a false reading to customers while pumping refinery in Maharashtra. BPCL holds 25% stake in the less fuel than has been paid for. The police believe that mega project in which is said to be keen to the pumps have each pocketed ` 5.5 lakh a month by invest. dispensing 5–7 percent less for every litre bought. The tampering doesn’t come as news to motorists in Thane Source: The Economic Times and the nearby Dombivali and Khopoli, who have lodged Kochi LPG terminal will ease backlog in Kerala: IOC a slew of complaints with local police stations in the past few months that they had been short-changed by the fuel June 20, 2017. Indian Oil Corp (IOC) said its proposed stations. When police informants corroborated these LPG (liquefied petroleum gas) import terminal at allegations, the crime branch raided the nine pumps. The Puthuvypeen in Kochi, construction of which has searches led to the discovery that the fuel dispensers at witnessed violent protest, will help reduce backlog for the stations had been fitted out with a chip that makes cooking gas in Kerala. IOC said the backlog of supplies the meter run faster than the petrol being pumped out. in Kerala is 15 days and the new import facility was aimed In May, the Thane crime branch had arrested Vinay at easing the same. Also, the import terminal would Shetye from Dombivali, for running a similar ring in minimise the movement of bulk LPG tankers through Uttar Pradesh that made the technology for rigging the the highways in the state. IOC moves bulk LPG from pumps available to many stations in the northern state. It Mangalore to various LPG bottling plants in North was during his questioning that the names of some of Kerala through about 100 bullet trucks every day, which these nine petrol pumps, which had allegedly bought the ply on narrow highways. Besides the import terminal, the chips from Shetye, surfaced. Investigation of the other ` 2,200 crore project comprises a multi-user liquid two pumps is underway, but sources have confirmed they terminal, the Kochi-Salem LPG pipeline and a bulk were also manipulating the machines. The managers and terminal at Palakkad. Out of this, about ` 670 crore is owners of the nine raided pumps have been arrested. only towards labour cost, the company said. IOC said the When questioned, they told the police that the petrol National Green Tribunal (NGT) had in August 2016 transporters are involved in the racket but the claim is yet permitted the company to continue with the work. to be verified, a senior investigator said. However, a small group of people have been obstructing the work since February 16. The company said during the Source: The Economic Times Oil Minister assures people won't suffer due to monsoon rains typically reduce the need for diesel used daily revision of fuel prices in irrigation pumps, the curtailed supply because of the maintenance shutdowns will likely continue to boost June 17, 2017. Oil Minister Dharmendra Pradhan said imports into the country, Paravaikkarasu said. India is a people won't suffer due to daily revision of fuel prices. net exporter of diesel with its refinery production usually He said that people will daily get a little profit or loss. enough to meet domestic demand, limiting imports. But State-owned oil companies such as Indian Oil Corp the change in fuel standards has boosted imports of (IOC), Bharat Petroleum Corp Ltd (BPCL) and cleaner diesel while it has exported more lower sulphur Hindustan Petroleum Corp Ltd (HPCL), decided on a diesel, traders said. India's diesel demand is expected to pan-India implementation of daily price revision of petrol rise to record levels again this year as a slew of and diesel. Before the rollout of daily price revision, infrastructure projects boosts the use of the fuel, Federation of All India Petroleum Traders (FAIPT) although a government-induced cash shortage will hold demanded an automated system to reflect price changes growth to its slowest in three years. Diesel demand is from the state-run oil marketing companies. The main expected to grow by 3 percent this year, lower than the concern of the dealers is that they will have to stop the 5.1 percent growth in 2016, Paravaikkarasu said. sales every midnight for considerable time to change the daily rates. However, the IOC successfully rolled out the Source: Reuters daily revision of petrol and diesel prices across the Petrol price cut by ` 1.12 per litre, diesel by ` 1.24 country through its network of 26,000-plus petrol pumps. IOC has developed various information modes for the June 15, 2017. Reflecting global crude oil prices, petrol customers to check the price being charged by the petrol price was cut by ` 1.12 per litre and diesel by ` 1.24 per pumps including the mobile app wherein the customers litre. Oil companies made the announcement in the will be able to fetch daily updated prices of petrol and evening today and the change in price will be effective diesel at all cities through IOC's mobile app Fuel@IOC. from June 16. From June 16, India will switch to a market It will also enable customers to cross-check the prices dynamic system under which petrol and diesel prices will applicable in their cities by sending SMS on various dealer be revised on a daily basis. Rates will change at 6 am codes, including various other options. everyday depending on movement in cost on the previous day. Currently, prices are revised on 1st and 16th Source: Business Standard of every month based on the fortnightly average of India's 2017 diesel imports may rise to highest since international oil price and the foreign exchange rate. at least 2011 Petrol will cost ` 65.48 a litre in Delhi from June 16 as ` June 16, 2017. India's diesel imports this year may rise to against 66.91 per litre currently. A litre of diesel will cost the highest since at least 2011 as refiners shut down to ` 54.49 as compared to ` 55.94 at present. Indian Oil upgrade their units to meet new fuel standards and as Corp (IOC) said daily revision of retail selling price of warmer temperatures spur demand. India's state-owned petrol and diesel on pilot basis was implemented in refiners are already seeking or have bought up to 967,000 Chandigarh, Jamshedpur, Puducherry District, Udaipur tonnes of diesel through July, according to tender data. and Visakhapatnam from May 1. That exceeds then-record imports of 962,000 tonnes in Source: India Today 2016, according to full-year government data going back Oil Minister invites BP and RIL to invest in fuel to 2011. The upgrades to meet new Euro IV fuel retailing standards implemented on April 1 and warmer temperatures are boosting diesel imports into the world's June 15, 2017. A day before India shifts to a market third-largest oil consumer, Sri Paravaikkarasu, head of dynamic system of daily revision of petrol and diesel East of Suez Oil for oil consultants FGE, said. While prices, Oil Minister Dharmendra Pradhan invited BP plc, Europe's third-biggest oil company, and Reliance NATIONAL: GAS Industries Ltd (RIL) to invest in fuel retailing. While RIL already has a fuel retailing license and has some 1,400 India asks Qatar to invest in power plants as petrol pumps on the ground, BP last year got approval to condition for LNG deals set up petrol pumps in India. RIL and BP are partners in June 20, 2017. India said it would sign future long-term oil and gas exploration but have no such collaboration in liquefied natural gas (LNG) purchase deals with Qatar if downstream fuel retailing business. BP is the tenth player only Doha agrees to acquire stakes in the South Asian to enter the lucrative fuel retailing business that is seeing double digit growth, not seen anywhere in the world. BP had in January last year won in-principle approval to retail QUICK COMMENT aviation turbine fuel (ATF) to airlines in India. RIL too Mandating gas exporters to invest in power plants will not change power market fundamentals! operates aviation fuelling services separately. India Bad! currently has about 59,595 petrol pumps, with public sector firms operating a majority of them. Private sector nation's power plants, Oil Minister Dharmendra Pradhan operators are limited to Essar Oil and RIL, which said. India is the latest major LNG buyer to seek between them have some 4,900 petrol pumps. Royal concessions from Qatar, the world's biggest LNG Dutch Shell operates 85 petrol stations. Numaligarh exporter, in order to re-sign long-term supply contracts. Refineries Ltd (NRL) and Mangalore Refineries and Amid a global glut of LNG and a slump in prices, other Petrochemicals Ltd (MRPL) are late entrants and have six buyers have sought more flexible contracts, including outlets between them. Indian Oil Corp (IOC) owns clauses that would allow them to resell gas they do not 26,212 petrol pumps, Hindustan Petroleum Corp Ltd consume. India is suffering from natural gas shortages (HPCL) 14,412 stations and Bharat Petroleum Corp Ltd that have required power plants with capacity of as much (BPCL) 13,983 outlets. In aviation turbine fuel (ATF) or as 25,000 MW to shut down or run as lower rates. Qatar's jet fuel retailing, there are 211 aviation fuel stations, 104 RasGas is India's biggest LNG supplier. India wants to of which are owned by IOC, 42 by BPCL and 37 by gradually move to a gas-based economy and has plans to HPCL. RIL has 27 aviation fuel stations at airports, while raise its annual LNG import capacity to 50 million tonnes joint venture of Shell and MRPL owns one. in the next few years from 21 million tonnes now. India Source: Business Standard is also open to granting stakes to Qatar in local oil and BPCL eyes Bina refinery expansion to 310k bpd in 4-5 yrs gas companies and LNG terminals, should the Gulf emirate make such a proposal, said Pradhan. India's June 14, 2017. Bharat Petroleum Corp Ltd (BPCL) aims biggest gas importer Petronet LNG annually buys 8.5 to expand the capacity of its Bina refinery in central India million tonnes under a long-term contract. It also buys to about 310,000 barrels per day (bpd) in the next four to additional volumes from Qatar under spot deals. Prabhat five years from the current 120,000 bpd. India aims to Singh, chief executive officer of Petronet, said the Gulf expand its refining capacity by 35 percent to 6.2 million nation needed to decide quickly on the Indian proposal. bpd to meet the country's rising fuel demand. BPCL He said India could be a stable outlet for Qatar's LNG. owns a majority stake in Bharat Oman Refineries Ltd Source: Reuters (BORL), which runs the plant. Oman Oil Co owns 26 percent in the refinery. BPCL aims to shut the Bina RIL’s KG-D6 investment to up its regulatory refinery for about a month in June-September 2018 as the exposure: Moody’s refinery is adding some units to raise capacity to 156,000 June 20, 2017. ’ planned $6 billion bpd. investment to monetise gas finds in the KG-D6 block will Source: Reuters increase its exposure to the extremely challenging Indian gas business that is fraught with delays and retrospective Projects worth ` 13,181 crore to exploit C-26, Daman, changes in regulation, Moody’s Investor Service said. Bassein and Vasai East discoveries will help ramp up the Reliance Industries Ltd (RIL) and its partner BP Plc of output further. Vasai East additional development the United Kingdom (UK) announced that they are project, costing ` 2,476 crore, will help raise crude oil moving ahead with development of three fields in the production from 5,600 barrels per day (bpd) to 17,550 KG-D6 block off the east coast of India. Investment of bpd and gas from 1.3 mmscmd to 2.5 mmscmd. The ` ` 40,000 crore in the development of the fields is 6,086 crore Daman development project will give a peak expected to produce 30-35 million metric standard cubic gas output of 8.3 mmscmd and 9,600 bpd of condensate meter per day (mmscmd) by the year 2020-2022. It said while the ` 4,619 crore Bassein integrated development given the regulatory environment, the timing of both the project will help produce 19.36 billion cubic meters (bcm) investments and cash flows from the project remains of gas and 1.97 million cubic meters (mcm) of condensate. uncertain. RIL-BP estimate that the fields have 3 trillion C-26 Cluster development project, costing ` 2,592 crore, cubic feet of discovered gas resources, which could be would produce 5.94 bcm of gas and 0.644 mcm of monetised with these investments. The investment is condensate, they said. Bassein field had 393 bcm of initial subject to approval by the government of the gas in place, of which 248 bcm (about 7 trillion cubic feet) development plans which RIL and BP plan to submit has been produced. It is ONGC's fastest growing asset, before the end of 2017. Currently, RIL only gets $2.5 per spread over 7,300 square kilometres in Arabian Sea. It million British thermal unit for its current gas production from the KG-D6 block. But the new fields are entitled to comprises South Bassein field that produces 18 mmscmd a higher rate, which is capped at $5.56. RIL-BP plan to of gas, NBP (D-1) field, B-193 super sour field, Vasai award soon the contracts for development of the first East field and C-Series and Daman gas field. field — R-Series, deep water gas fields located in water- Source: The Times of India depths of more than 2,000 meters, approximately 70 km Bengaluru gas distribution project inaugurated offshore. The companies expect to produce up to 12 mmscmd, with first production in 2020. June 18, 2017. GAIL (India) Ltd launched the ₹ 6,283 Source: The Hindu Business Line crore Bengaluru City Gas Distribution (CGD) project. The project is expected to cover 4,395 sq km in urban ONGC's Bassein gas field to touch record output in and rural Bengaluru, broadly covering eight sectors — 2018 Nelamangala, Dod Ballapur, Devanahalli, Hosakote, June 18, 2017. India's largest natural gas field Bassein in Bengaluru East, Bengaluru North, Bengaluru South and the Arabian Sea has seen a remarkable turnaround with Anekal. As part of the project, about 60 compressed the natural decline that had set in at the 28-year old field natural gas (CNG) stations are to be set up. The project reversed and output slated to rise by a quarter to a record will provide cheaper fuel for the transport sector and also high in 2018. The field, which had hit a peak of 29 million facilitate a healthy lifestyle by creating a pollution-free metric standard cubic meter per day (mmscmd) in 2011, environment. GAIL launched a mobile app to provide a had seen output decline thereafter but the same has now one-stop platform for customers to view/pay piped been reversed in last three years. Gas production has natural gas (PNG) bills, locate CNG stations, know about regained the 30 mmscmd mark and will climb to 34 the benefits of CNG/PNG and get emergency mmscmd in few weeks before touching 37 mmscmd by instructions. Oil Minister Dharmendra Pradhan said that December 2018. Crude oil production from the asset has so far, 66 kms of steel and 452 kms of MDPE pipeline risen from about 1 million tonnes to 2.5 million tonnes in last three years, making it the second highest oil has already been laid in the city. producing asset of Oil and Natural Gas Corp (ONGC). Source: The Hindu Business Line Greka Drilling secures 3 year drilling deal with ONGC enhance operational efficiency, the company said. Since 2016, JSPL has secured coal linkages of close to2.3 mtpa June 16, 2017. Greka Drilling Ltd, an independent oil and in various sub-sectors for a 5-year timeframe. gas driller in Asia, has secured a three year drilling contract with Oil & Natural Gas Corp (ONGC) for the Source: The Economic Times Bokaro CBM (coal-bed methane) asset in India. Under Steel ministry asks CIL to set up more washeries the deal, Greka will deploy one of its purpose-built rigs in the country. ONGC plans to drill 73 wells over the June 15, 2017. The steel ministry has asked Coal India next three years using this rig, which has a proven track Ltd (CIL) to set up more washeries at coal mine pitheads. record of drilling in similar geological conditions, According to Union Steel Minister Chaudhary Birender according to Greka. The project will entail the provision Singh, the move is expected to help reduce coking coal of drilling and mud services, along with the provision of imports. According to the Minister, the Centre’s focus on associated equipment, and is estimated to generate total ‘housing for all’ and increased movement of revenues of $15 million over the three year period. infrastructure projects are expected to create an additional demand of around ₹ 40,000 crore worth of Source: Rigzone steel in the country. NATIONAL: COAL Source: The Hindu Business Line

Coal production not affected by ongoing strike: SCCL NTPC eyes 3 mt coal output this fiscal

June 19, 2017. Singareni Collieries Company Ltd (SCCL) June 14, 2017. State-run power giant NTPC which made said the ongoing strike by a few sections of workers' its debut in coal mining this fiscal has in a major unions has not impacted coal production. The national development awarded Mine Developer-cum-Operator trade unions AITUC, INTUC, CITU, HMS and BMS are contract for its Dulanga coal mine in Odisha, as part of among the unions to have decided to go on indefinite its plan to produce 3 million tonnes (mt) of the dry fuel strike from June 15 demanding implementation of the this fiscal. After the start of coal production and dispatch revival of the Dependent Employment Scheme (DES) as from Western Quarry of Pakri-Barwadih coal mine in promised by the TRS Government during elections. It December 2016, NTPC has now started the same from further said that the coal production was over 1.71 lakh Eastern Quarry of this mine, as well. Already 56,352 tonnes during the past four days against 1.52 tonnes a day tonne of coal has been extracted from this quarry. NTPC, before the beginning of the strike. Meanwhile, CITU in so far, has produced more than 4.6 Lakh tonne of coal statement demanded that the management should from Pakri-Barwadih mine and successfully despatched immediately call agitating workers for a dialogue. The 58 coal rakes (2,02,480 tonne of coal) to its Barh power trade union held a "round table" on the issue. station. This mine has an estimated mining capacity of 15 million tonnes per annum and has been allotted by the Source: The Times of India central government to NTPC as a basket mine to meet JSPL secures coal linkage for a 5 year term in the fuel shortfall of its power stations. Coal mining is captive power auctions integral to NTPC’s fuel security strategy, which believes that greater self—reliance on coal will go a long way in June 19, 2017. Jindal Steel and Power Ltd (JSPL) said it ensuring sustained growth of generation. NTPC has been has secured coal linkage in the recently-concluded allocated eight coal blocks -Pakri— Barwadih, Chatti— auctions for the captive power sub-sector. The captive Bariatu & Chatti—Bariatu (South), Kerandari, Dulanga, power plants of the company are located at Raigarh and Talaipalli, Banai, Bhalumuda and Mandakini—B by Dongamahuah (Raigarh district) in Chhattisgarh. The Government of India. linkages ensure a steady supply of thermal coal to feed the captive power plant at calorific cost and would further Source: The Hindu NATIONAL: POWER are not wilful defaulters or there are no significant irregularities. Power industry hails ` 5 per unit tariff by Punjab Source: The Economic Times government PFC to launch maiden bonds allowing capital gain June 20, 2017. The power industry in Punjab has hailed tax exemption decision of Congress government led by Chief Minister (CM) Amarinder Singh to provide power at a uniform June 16, 2017. Power Finance Corp (PFC), the state- rate of ` 5 per unit in the state. The industry has termed owned power sector lender, announced it has been the action as pro-industry and a step set to accelerate allowed by the government to raise bonds eligible for industrial growth. Confederation of Indian Industry (CII) capital gain tax exemption under section 54EC of the hailed the key measures including disbanding truck Income Tax Act. Section 54EC provides that capital gain unions and the CM’s appeal to the well-to-do farmers to subject to a maximum of ` 50 lakh arising from the give up power subsidy voluntarily. CM had announced to transfer of a long term capital asset will be exempt if the give up the free power while appealing to his Cabinet assesse invests the whole or any part of capital gains in colleagues to volunteer for the same. certain specified bonds within a period of six months. An Source: The Economic Times investor can save up to a maximum ` 10 lakh by investing maximum permissible amount of ` 50 lakhs in these Rise in electricity demand to revive stressed power bonds. PFC is the lead financier for the Indian power companies sector and is the largest infrastructure company in the June 17, 2017. The government expects the demand for country based on net worth. According to a Department electricity to pick-up in the next couple of years, which of Public Enterprises survey of March 2017, PFC was experts believe is critical to revive the power sector ranked the seventh-highest profit making public sector undertaking (PSU) among 320 PSUs. QUICK COMMENT Source: The Economic Times Increase in electricity demand will not only revive stressed power companies but also improve quality of life! Power firm struggles to ensure smooth supply Good! June 14, 2017. The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) appears to be saddled with stressed assets. Experts said transferring the struggling to ensure uninterrupted power supply to the assets from one developer to the other would not be city despite claiming that adequate measures were taken enough to revive the stranded assets till the time demand before the monsoon. Almost the entire city was without for electricity does not pick up. The government, power from 4 pm to 7 pm soon after it started raining. however, feels the problem is of over supply rather than Power was restored in some areas only late at night. of lean demand. The demand for power has grown by a Consumer activist Raju Gangurde said the MSEDCL robust 6.4% in the last three years against 6.2% in 2004- should have restored power supply within a maximum of 2014, the power ministry said. The government proposes three to four hours, but the areas did not receive power to set up a special purpose vehicle to hold stressed power for seven hours. Gangurde said that despite the power assets and revive them by debt-equity swaps, offering last company's tall claims of infrastructure upgradation or mile equity or asking public sector companies like NTPC to operate them on a contractual basis. Power Minister pre-monsoon maintenance, the system is just not being Piyush Goyal said the government is close to resolution able to stand the rain. of the stressed thermal power projects where developers Source: The Times of India NATIONAL: NON-FOSSIL FUELS/ CLIMATE CHANGE TRENDS

NHPC awards EPC contract for 50 MW Solar connections. The State government will give 1,000 solar- Power project in Tamil Nadu powered irrigation pump sets of 5, 7.5 and 10 horsepower (hp) under a model programme to farmers across the June 20, 2017. NHPC has awarded an EPC (engineering, State. These off grid units will be available with 40 procurement and construction) contract for the percent State government subsidy, 20 percent from the development of 50 MW Solar Power PV Grid connected Union Ministry of New and Renewable Energy; 30 project located at Theni and Dindigul districts in Tamil percent from Tamil Nadu Generation and Distribution Nadu to Larsen & Toubro, L&T Construction, Corporation and the farmer’s share will be 10 percent. Manapakkam, Chennai for an amount of ` 287.48 crore This scheme will be implemented at a cost of ₹ 15 crore, with its comprehensive O&M (operating and the Electricity Minister P Thangamani said. To avail this maintenance) for 10 years. The project is anticipated to benefit, farmers will have to apply for irrigation pump be completed within 9 months. sets under the seniority scheme. The government will also Source: Business Standard offer Tatkal scheme in which farmers can get conventional agriculture connection within six months of Chinese firms inks deal with Adani Group, to invest application. They will have to shell out ₹ 2.5 lakh for a 5 $300 mn in Gujarat hp motor connection; ₹ 2.75 lakh for a 7.5 hp motor June 20, 2017. India's Adani Group inked a deal with supply; and ₹ 3 lakh for a 10 hp supply. The connection East Hope Group, one of China's largest companies, will be provided within six months for 10,000 applicants, which will invest over $300 million to set up a he said. The government also plans to establish a 500 MW manufacturing unit for solar power generation equipment solar park through a private player; and a mobile app will in Gujarat. An estimated investment of more than $300 also be developed for power consumers to pay their million is expected to be made by East Hope Group in utility bills, the Minister said. India, as part of the proposed cooperation between the Source: The Hindu Business Line two conglomerates. East Hope Group, a 70 billion yuan company, is one of the largest corporate houses in China. Centre removes interstate supply charges on solar power projects till Dec 2019 Source: Business Standard June 19, 2017. Solar power projects will be exempted Tamil Nadu farmers to get 90 percent subsidy for from interstate transmission charges till the end of solar-powered pump sets December 2019, making it feasible to compete with June 19, 2017. Farmers in Tamil Nadu can avail thermal power. The decision was taken by the ministry of themselves of 90 percent subsidy for solar-powered power in consultation with the ministry of new and irrigation pump sets if they exit the waiting list for farm renewable energy and other stakeholders since imposition of charges would have raised cost of using QUICK COMMENT solar power from another state by ` 1-2.50 per kilowatt Subsidising solar-powered pumps today may lead to hour (kWh), depending on the distance it is transmitted complaints over depleting water tables tomorrow! Ugly! and voltage at which it is supplied. Solar tariffs have been falling steeply in recent years, touching an all-time low of ` 2.44 per kWh at Rajasthan’s Bhadla solar park auction of 32 power substations being established in different in May, very much on a par with thermal power. But parts of the state, by March next year. imposition of interstate transmission charges would have Source: The Financial Express affected capacity to compete. The Delhi Metro Rail Corp, for example, signed an agreement in April to draw most Cheaper loans, lower registration fee for green of its daytime power needs from the 750 MW ultra mega homes soon solar power project – three plants of 250 MW each – June 19, 2017. The government is working on a scheme being built at the Rewa solar park, Madhya Pradesh. to promote energy efficient homes by offering cheaper Source: The Economic Times loans and lower registration fee for green residential units as it ramps up efforts to mitigate climate change by Over 12k solar pumps distributed to farmers in moving towards a net zero-energy building regime. Chhattisgarh Government said the proposal is part of ongoing June 19, 2017. Over 12,000 solar pumps have been discussions on framing the ‘Energy Conservation distributed so far to the farmers at subsidised rates under Building Code for Residential Sector (ECBC-R)’ on the ‘Saur Sujala Yojna’ in Chhattisgarh. Chief Minister (CM) lines of such a code for government and commercial Raman Singh was informed about the development buildings framed in 2007. Power, Coal, New and under the scheme while he was chairing a review meeting Renewable Energy and Mines Minister Piyush Goyal is of the energy department. Prime Minister Narendra Modi scheduled to release the refreshed version of the code, had launched the ‘Saur Sujala’ scheme on state’s ECBC-2017, outlining a quantum leap towards a greener foundation day on November 1, 2016 in Raipur. During outlook for Indian realty. The Bureau of Energy the meeting, the CM instructed the officials to focus more Efficiency is working on a scheme to incentivise new in 85 tribal-dominated development blocks for the homes that are more energy efficient and make lower distribution of the solar energy-based irrigation pumps. demand on utilities for lighting and cooling energy. Singh expressed satisfaction that the department had ECBC-R will be a booster for the government’s ‘Make in distributed more solar pumps than the set target and India’ campaign as it is expected to raise the demand for congratulated the officials. The CM further stressed on energy efficient household equipment as well as other the need to cover 20,000 farmers under this scheme by services. Seen in the backdrop of climate change and the end of this year pointing that farmers belonging to expanding cities, ECBC-R will strengthen the remote areas and inaccessible regions, should be given government’s efforts at reducing the carbon footprint of priority while distribution. Notably, farmers are being a growing segment of energy consumers. It will also add provided solar-irrigation pumps of 5 horsepower (hp) green jobs in the real estate sector. and 3 hp at heavily subsidized rates in the state. Solar Source: The Economic Times irrigation pump worth ` 3.5 lakh (3 hp) is being given to Scheduled Caste and Scheduled Tribe classes at the cost Delhi power department opens registration for rooftop solar power plants of ` 7,000, to Other Backward Class (OBC) at ` 12,000 and general category farmers at ` 18,000. The remaining June 18, 2017. The Delhi government’s power amount is borne by the state government, he said. Besides, department said it has opened registration process for the chief minister also directed the officials to complete installation of rooftop solar power plants in the city, as it electrification of all villages and hamlets by March next aims to tap 1 GW of green energy by the year 2020. year. Similarly, he also asked to complete the installation Under the scheme, 30 percent central finance assistance will be given by the ministry of new and renewable energy an ambitious plan of moving to 100 percent electric on the cost of solar photovoltaic plant. The generation mobility by 2030. The United States (US) carmaker is based incentive of ` 2 per unit is also there for residential looking to enter India as a retailer and is in talks with the category. The Indraprastha Power Generation Company government for waiver of restrictions on imports of its Ltd has empanelled vendors for solar photovoltaic high-end electric cars until its factory is built. The import installations. Lt Governor Anil Baijal had directed the penalties or restrictions that Elon Musk, chief executive power department to prepare a standard operating officer, Tesla, referred to are most likely the norms for procedure and a roadmap for promoting installation of multinationals to set up single-brand retail in India, which solar power panels in the city. The Delhi Solar Policy, mandate them to source at least 30 percent locally. Unlike which aims at mass adoption of solar power in the city, traditional automakers, Tesla sells and services its vehicles was notified on September 27, 2016. The highlights of on its own rather than through local dealers. Over the the policy includes a generation-based incentive for three past couple of years, this policy has largely worked, with years. brands such as Mercedes-Benz, Audi, BMW, JLR and Source: The Financial Express Volvo having units in India. Experts believe that the government should do the same even for electric vehicles Tamil Nadu interested on low floor electric vehicle as it will help boost the local industry. buses: Ashok Leyland Source: The Economic Times June 16, 2017. Tamil Nadu Government has shown interest to purchase low floor, air conditioned electric India ranks 75th in environmental impact survey vehicle CIRCUIT provided by Hinduja Group flagship June 16, 2017. Mozambique, the southern African Ashok Leyland. Ashok Leyland, Head-Global Bus, T country rated as one of the poorest, has topped a survey Venkataraman said the company introduced the electric of nations with the lowest global environmental impact vehicle in October last year and has been talking to while India has ranked a dismal 75th in the report. various governments for providing the service. Asked on Mozambique topped the list because almost all its energy the company's overseas operations in Electric Vehicle use comes from green sources. India, on the other hand, business, he said Ashok Leyland already operates such was placed 75th, with renewable energy making up only buses in London under "Optare" brand. The buses can 15.2 percent of all energy used; only 2.2 percent of waste be produced on multiple platforms depending upon the water being recycled, and municipal waste of 0.34 kg per customer's requirement, he said. Ashok Leyland person being generated daily. showcased the electric vehicle CIRCUIT in October 2016. The buses equipped with fire detection and suppression Source: The Economic Times system can travel upto 120 kilometrs on a single charge Azure Power receives $10.5 mn solar rooftop under standard test conditions. funding from World Bank

Source: The Economic Times June 16, 2017. Azure Power, an independent solar power Tesla plans electric car factory in India producer in India, announced it has been granted ` 67.83 crore ($10.5 million) of low-cost debt financing through June 16, 2017. Tesla Motors is planning to set up a the State Bank of India (SBI)-World Bank Grid factory in India to cater to the local demand for electric Connected Rooftop Solar PV Program. The loan is cars, at a time when the Modi government has launched granted for 15 years with an interest rate of 8.35 percent Bihar eyes ` 200 bn investment in renewable energy per annum, among the lowest interest rates availed by in 5 yrs solar power developers in India, according to the June 16, 2017. Bihar is eyeing an investment of ` 20,000 company. The World Bank and the International Bank crore in the renewable energy sector in the next five years for Reconstruction and Development (IBRD) approved to generate over 3,000 MW of clean energy. The plan is a line of credit of $625 million to support the part of the new renewable energy policy that aims to tap government’s goal to expand rooftop solar capacity to the potential of new and renewable sources of energy in 40,000 MW. The company said its Azure Roof Power the state. Bihar Renewable Agency platform has over 1,000 MW capacity projects across 18 director R. Lakshmanan said that with Bihar's increasing states. Its customers include commercial real estate population and rapidly growing economy, the state needs companies, a chain of premium hotels, distribution access to clean, cheap and reliable sources of energy. companies in smart cities, warehouses, Delhi Metro Rail Lakshmanan said the new renewable policy target is for Corp (DMRC) and Indian Railways. installed capacity of 2,969 MW solar, 244 MW biomass and 220 MW small hydropower in the next five years so Source: The Economic Times as to meet the growing demand of power in an GUVNL invites bids to procure 1 GW renewable environmentally sustainable manner. The Centre for energy Environment and Energy Development (CEED) chief executive officer Ramapati Kumar said with a well June 16, 2017. Gujarat Urja Vikas Nigam Ltd (GUVNL) defined target, fixed timeline, emphasis on solar rooftops has decided to buy 1,000 MW of renewable power and decentralised renewable energy systems, the through competitive bidding, which will be followed by agriculture sector will be transformed. Most of the an e-auction for the lowest price. The company floated expected ` 20,000 crore investment is likely to flow into two separate tenders for procuring 500 MW each from setting up new manufacturing capacity in the state, for solar and wind power projects. According to the request solar panels and other renewable energy equipments, skill for selection (RFS) document, GUVNL has invited bids developments, and research and development for to procure solar and wind power to fulfil renewable sustainable clean energy, Ramapati said. State's Energy purchase obligations (RPOs) and to meet the future Minister Bijendra Prasad Yadav said it is time for needs of its distribution companies. The RPO mandates organisations to invest in Bihar to accelerate the state's that distribution company buy electricity from renewable development. sources for a defined minimum percentage of the total Source: The Economic Times consumption of its consumers. The last date for submission of bids is July 10, 2017 and a pre-bid meeting KSEB upbeat over normal monsoon forecast for the tenders will be held on June 30. After opening the June 15, 2017. Catchment areas of the hydroelectric technical bids on July 11, the reverse auction will take power projects in Kerala are yet to receive copious place on July 17 and 18 for wind and solar tenders southwest monsoon rains, keeping the storage levels well respectively. The bidders selected by GUVNL based on below normal. With the storage as, 514 million units of this RFS, shall set up wind and solar power projects in power can be generated. Normally, at the end of June, the accordance with provisions of the RFS document and storage used to be enough to generate 795 million units, standard power purchase agreement. the Kerala State Electricity Board (KSEB) said. The Source: The Economic Times current daily demand is at 62 million units and it is met by hydel generation and imports from various sources. the only company manufacturing electric cars in India in Currently, 8 million units are generated daily from the the passenger vehicle segment. The company hydel sources, 27.8 million units come from the Central manufactures only 100 units per month due to low grid and 21.3 million units from purchases. With demand but plans to ramp up production to over 1,000 purchases from power exchange and deviations, the total units in the soon. In the two-wheeler space, Hero Electric, comes to 59.43 million units. The gap of 3.5 million units Ather Energy and Lohia Auto are the few mainstream is filled by wind mills and small hydro-electric projects in players manufacturing electric vehicles. IOC is not the the private sector, the KSEB said. The KSEB is in a only company diversifying its portfolio to enter into the comfortable position and would avoid costly thermal energy storage business. IOC has so far commissioned power from NTPC Kayamkulam and BSES Ernakulalm 167 MW of wind-power projects in Gujarat, Andhra this year. Pradesh and Rajasthan. The company's total installed solar photovoltaic (PV) capacity stands at 20 MW. In Source: The Hindu Business Line addition, the fuel retailer operates 6,170 fuel stations on Rajasthan invites Japanese firms in solar energy solar power with a cumulative capacity of 24 MW. The sector energy storage market for rooftop and off-grid renewable June 15, 2017. Rajasthan Chief Minister Vasundhara Raje energy applications in India is likely to be worth ` 16,500 invited Japanese companies to invest in solar energy crore by 2022, Delhi-based Council for Energy sector in the state. In her meeting with a delegation of Environment and Water (CEEW) said. Japan External Trade Organization, she said solar energy Source: The Economic Times is the power of the future and Rajasthan is the ideal India's renewable energy capacity crosses 57 GW destination for investment in Solar Energy.

Source: Business Standard June 14, 2017. India is staying true to its ambitious renewable energy targets by showing a steady growth in IOC set to foray into energy storage business renewable energy installations in India, which as of April June 14, 2017. Indian Oil Corp (IOC) is planning to foray 2017 account for 17.5 percent of the total energy source. into energy storage business. The firm is weighing the The latest data, which is provided by the ministry of new option of launch of an improved version of lead-acid and renewable energy, has been analyzed by Mercom battery for low cost mobility and industrial applications. Capital Group. India's overall installed capacity has IOC’s foray into the energy storage market comes at a reached 329.4 GW, with renewables accounting for time the government is working on an ambitious target 57.472 GW. The figures show a significant rise on the to ramp up renewable energy generation capacity to 175 data released by the ministry in February when the figure GW by 2022 and also completely shift to e-vehicles by stood at around 50 GW. In April 2017, solar reached 3.8 2030. India added 5,526 MW of solar capacity during percent of total installed capacity up from 2.23 percent in 2016-2017, a growth of 85 percent, and 5,400 MW of April 2016. Country's coal-fired fleet remains strong with wind capacity, 63 percent more than the capacity added a 59 percent share in the total energy mix, although previous year. Analysts said IOC’s entry in the energy NTPC has showed itself to be the principle supporter of storage market may invoke interest from the booming the government's green energy agenda. India has set a renewable energy sector which is in need of indigenous target of reaching 170 GW of renewable energy capacity battery solutions but demand from the auto industry may by 2022, out of which 100 GW is to come from solar. still take time to catch up. Currently, Mahindra Electric is Source: The Economic Times INTERNATIONAL: OIL

Alaska field hits 40 yrs of production independent oil refineries, also known as teapots, and some state-run companies. That latest quotas take the June 20, 2017. The BP-operated in total issued this year to 91.73 million tonnes, compared Alaska has reached 40 years of production, generating with 87.6 million tonnes in 2016. The second batch will more than 12.5 billion barrels of oil in the process. The be valid until year-end. Volumes for the 19 independent field continues to support more than 16,000 Alaska jobs oil plants that make up two thirds of the total issues for and supplies 55 percent of all Alaska oil output, BP 2017 dropped by 12.36 million tonnes, or nearly 17 revealed. The original estimated recovery for Prudhoe percent, from last 2016. Bay was 9.6 billion barrels. However, an additional 3 billion barrels so far have been unlocked through Source: Reuters innovations in oilfield technology. While production has Mexico auctions two-thirds of blocks in shallow fallen from historic peaks due to natural decline, Prudhoe water oil tender Bay remains the third-largest oil field in the US by proved reserves, behind the Eagle Ford Shale and Spraberry June 19, 2017. Mexico auctioned two-thirds of the fields in Texas. shallow water oil and gas blocks up for grabs in the latest round of its energy market opening, surpassing the Source: Rigzone cautious estimates officials made. Italy's Eni, Colombia's Italy's Eni signs deal with Iran on oil and gas field Ecopetrol and Capricorn Energy, a unit of Edinburgh- studies based Cairn Energy, were among the companies at the forefront of the bidding for 15 blocks in the southern June 20, 2017. Italian oil major Eni signed an agreement . Ten of the 15 blocks were taken up in with Iran for feasibility studies to develop an oil field and the auction. The potential output from the blocks a gas field, signaling a possible return to Iran's upstream auctioned could total 170,000 barrels per day of crude sector. Eni had signed a Memorandum of Understanding equivalent, and investments could eventually reach $8.2 with the National Iranian Oil Company for studies on the billion, Energy Minister Pedro Joaquin Coldwell said. Kish gas field and the third phase of the Darkhovin oil Mexico hopes opening the energy sector will help reverse field in southern Iran. Eni has six months to present the years of declining crude output. Total crude production results of its studies. in Mexico has fallen to 2.01 million barrels per day from Source: Reuters a peak of 3.38 million in 2004. China's 2017 crude oil quotas exceed last year's, Source: Reuters teapots take a cut Oil market fundamentals heading in right direction: June 19, 2017. China issued a second batch of crude oil Saudi Energy Minister import quotas under the so-called "non-state trade" that June 19, 2017. Saudi Energy Minister Khalid al-Falih said is higher than for all of the allowances in 2016, but the oil market is heading in the right direction but still allotments to independent refineries were lower than a needs time to rebalance. Oil prices dipped, weighed down year earlier. The lower grants to the independents dealt by a continuing expansion in US (United States) drilling the new group of crude oil buyers another blow because that has helped to maintain high global supplies despite they were already barred from exporting refined fuel, an OPEC (Organization of the Petroleum Exporting squeezing margins in an oversupplied domestic fuel Countries) -led initiative to tighten the market by cutting market. The commerce ministry approved 22.92 million production. The is down around 14 percent tonnes to 32 companies, against 29 recipients in the first since late May, when producers led by the OPEC issue for 2017. The 32 companies included mostly extended their pledge to cut output by 1.8 million barrels 30 percent of Russian production, one of the world's per day (bpd) by an extra nine months. Falih said there largest, by 2050. owns 28 blocks in the Arctic was a relatively big draw of around 50 million barrels offshore area with combined estimated resources of 34 from floating storage and a drop in industrialised nations' billion tonnes of oil equivalent. There is only one onshore storage of 65 million barrels compared to July offshore platform in the Russian Arctic, Prirazlomnoye, last year. Compliance in April and May with the OPEC- operated by , which plans to produce 2.6 led output deal was above 100 percent, he said. Falih also million tonnes (52,000 barrels per day) this year. Analysts said he expects Libya's production to return to normal said oil production in the region - apart from levels. OPEC members Libya and Nigeria were exempted Prirazlomnoye - is years away and may start only in the from the supply cuts because unrest had curbed their mid-2020s Rosneft has been working in the Laptev Sea output. since 2014. It values the hydrocarbon resources of the sea at around 9.5 billion tonnes of oil equivalent. Source: Reuters Source: Reuters Qatar won't cut gas to UAE: CEO UAE Energy Minister sees no need for extraordinary June 18, 2017. Qatar will not cut off gas to the United OPEC talks Arab Emirates (UAE) despite a diplomatic dispute and a "force majeure" clause in its contract, the Qatar June 17, 2017. The United Arab Emirates (UAE) Energy Petroleum chief executive officer (CEO) Saad al-Kaabi Minister Suhail bin Mohammed al-Mazrouei said he saw said. CEO said that although there was a "force majeure" no need for an extraordinary meeting of the Organization clause in the agreement on the Dolphin gas pipeline, of the Petroleum Exporting Countries (OPEC) ahead of which links Qatar's giant North Field with the UAE, regular talks in November. OPEC holds its next regular Qatar would not stop supplies for other reasons. The meeting in Vienna on November 30. OPEC and non- Dolphin gas pipeline links Qatar with the UAE and members led by Russia decided on May 25 to extend cuts Oman and pumps around 2 billion cubic feet of gas per in oil output by nine months to March 2018 as they battle day to the UAE. a global glut of crude. Mazrouei also said he expected demand for oil to pick up in the third quarter of the year. Source: Reuters Source: Reuters Russia's Rosneft finds first oilfield offshore eastern Arctic Exxon, partners set $4.4 bn for mega oil project in Guyana June 18, 2017. Russia's largest oil producer Rosneft said it had found its first oilfield in the Laptev Sea in the June 16, 2017. Exxon Mobil Corp said it and partners eastern Arctic, making a breakthrough in the search for would spend $4.4 billion to develop part of the Liza hydrocarbons in the harsh and far-flung region despite oilfield off the coast of Guyana, approving a megaproject Western sanctions. Rosneft and its partners plan to invest at a time when the oil industry has grown obsessed with 480 billion roubles (6.57 billion pounds) in developing lower-cost shale. Exxon's decision shows that oil Russia's offshore energy industry in the next five years, companies remain interested in large projects, especially part of a drive to boost output from new areas. The offshore, even in an era of belt-tightening after two years company has sought tie-ups with several global oil players of low crude prices. The Guyana announcement from to develop Russia's offshore regions. But a deal to work Exxon and partners Hess Corp and CNOOC was the in the Kara Sea in the western Arctic with U.S. company fifth deepwater project to gain approvals this year. BP Plc Exxon Mobil was suspended in 2014 after the imposition and Reliance Industries Ltd (RIL) said they would spend of Western sanctions against Moscow. The Arctic $6 billion to develop natural gas reserves off the Indian offshore area is expected to account for between 20 and coast. Exxon, which spent nearly $7 billion to more than double its holdings in the Permian shale formation in the National Bureau of Statistics showed. The figure is the United States, said the Guyana project was approved due lowest since the bureau began publishing records in 2011. in part to its low cost of production. Phase One of the The drop in China's crude oil output has slowed as major Liza development project should tap about 450 million oil producers raised spending to boost production as oil barrels of oil and pump about 120,000 barrels per day prices have stabilized in a range between $48 to $55 per when it comes online in 2020, Exxon said. barrel. Analysts are forecasting flat or positive production growth for calendar 2017. PetroChina, the owner of Source: Reuters China's largest oilfield Daqing, said in December that it Uganda to finalise oil exploration deal with would slash capital spending on the field this year by 20 Nigerian firm percent from a year earlier. June 14, 2017. Uganda is set to sign two oil production Source: Reuters sharing agreements (PSAs) with a Nigerian firm, enabling Brazil's cuts gasoline and diesel prices the company to begin exploration work, the government said. The firm, Oranto Petroleum International, was June 14, 2017. Brazil's state-controlled oil company among a number of companies that bid in the country's Petroleo Brasileiro SA (Petrobras) reduced its average first competitive oil exploration licensing round last year, prices at refineries by 2.3 percent for gasoline and 5.8 with two other Nigerian firms and Australia's Armour percent for diesel, the company said. The gasoline prices Energy also getting through to final negotiations for the for consumers may drop up to 0.9 percent and diesel award of the PSAs. The ministry of energy and mineral prices, up to 3.5 percent, the company said. development said the deal with Oranto covers the Ngassa Source: Reuters Shallow Play and Ngassa Deep Play exploration blocks located near the southern part of Lake Albert. Uganda INTERNATIONAL: GAS discovered oil in 2006 in the Albertine rift basin along its border with the Democratic Republic of Congo. Gross Shell Nigeria considering investment in gas project crude reserves are estimated by government geologists at in 6.5 billion barrels of which between 1.4 to 1.7 billion June 20, 2017. Shell is considering whether to invest in a barrels are considered recoverable. Production is gas project in Nigeria's southern Niger Delta energy hub. expected to start in 2020. The first batch of licences that Shell Petroleum Development Company of Nigeria Uganda awarded in the early 2000s were given on a first- (SPDC) said the project under consideration would have come, first-served basis. But after the discovery of a capacity of 300 million cubic feet and would be located commercially recoverable reserves the country enacted in the city of Asa. new laws to manage the sector and under those laws Source: Reuters exploration licences must be granted on a competitive basis. in exclusive talks to buy LNG terminal stake Source: Reuters from Edison

China's May oil output lowest on record June 20, 2017. Italian gas group Snam is in exclusive talks with EDF's Italian unit Edison to buy a stake in a June 14, 2017. China's crude oil production fell to its liquefied natural gas (LNG) terminal in northern Italy as lowest on record in May, even as refineries in the world's part of plans to develop its LNG business. Snam is top buyer of crude churned out product at their fastest looking to buy Edison's 7.3 percent stake in Terminale pace in nearly two years, data showed. Crude output fell LNG Adriatico and the gas pipeline that connects it to 3.7 percent in May from a year earlier to 16.26 million Italy's gas transmission backbone. Adriatic LNG, which tonnes, or 3.83 million barrels per day, data from the has a capacity of 8 billion cubic metres per year, is 70.7 percent owned by ExxonMobil and 22 percent by Qatar 30%, which was incorporated in 2007. The LNG is likely Petroleum. Exxon and Qatar have a pre-emption right on to be delivered to the Dragon LNG Terminal located in Edison's stake. Snam, which makes most of its money the UK or the Netherlands-based Gate LNG Terminal. from gas transmission, is looking to play a leading role in In March, Qatargas entered into an agreement to boost integrating Europe's grids and making Italy a European the volume of its currently supplied LNG to PGNiG to gas hub. two million tonnes per annum. The agreement is slated Source: Reuters to come into effect on 1 January 2018 and will expire in June 2034. Private producer aims to ship Baltic's first Russian LNG before Gazprom Source: Energy Business Review

June 20, 2017. LNG Gorskaya, a privately-owned Tunisia gas field protesters reach deal, production Russian liquefied natural gas (LNG) producer, has to restart launched a €340 million ($379 million) project to become June 16, 2017. Protesters blockading oil and gas fields in the first LNG exporter from Russia's European coast. southern Tunisia have reached an agreement with the Russia expects to send LNG to Europe by the end of government to end a sit-in and allow production to 2017 from its distant Arctic peninsula of Yamal but a restart immediately, the government and protesters said. plant on its Baltic coast could establish the country as a Protests over jobs in southern Tataouine and Kebili more immediate supplier of LNG in a region already provinces hit oil and gas production in a region where dependent on piped Russian gas. The company will build French company and Austrian producer OMV a floating LNG plant off the port of Gorskaya, not far operate. The deal calls for jobs in oil companies and from Saint Petersburg, which will be fed by a 12 km development projects. Protesters were pressing demands pipeline from Gazprom. The company had agreed to for jobs and a share of the country's energy wealth and build floating bunkering stations and storage facilities at forced the closure of two oil and gas pumping stations in the Baltic ports that will be able to supply LNG-fueled Kamour in Tatatouine and in Kebili. vessels with mostly Russian LNG by 2020. The company Source: Reuters said it had the acquired the necessary gas export permits from Gazprom. The project means LNG Gorskaya could JX Nippon starts gas production offshore Malaysia deliver the Baltic's first large-scale, locally produced June 15, 2017. JX Nippon Oil & Gas Exploration Russian LNG three years ahead of Gazprom's Baltic (Malaysia) Ltd revealed that it has commenced LNG project, a much delayed plan the state-owned gas commercial gas production from the Layang field, giant now expects to be running by 2023. offshore Sarawak in Malaysia. The initial production of Source: Reuters natural gas and condensate from Layang, which is situated in the JX Nippon operated Block SK10, is Qatargas, Shell sign LNG supply deal estimated at around 12,000 barrels of oil equivalent per June 20, 2017. Qatargas has agreed to supply up to 1.1 day. Natural gas produced from Layang field, together million tonnes of liquefied natural gas (LNG) per annum with natural gas from the Helang gas field, will be to Royal Dutch Shell for five years. A new sale and supplied through subsea pipelines to the MLNG Tiga purchase agreement (SPA) signed by the parties will come Sdn. Bhd. liquefaction plant in Bintulu, Sarawak, which is into effect from January 2019. LNG will be supplied from partly owned by JXTG Nippon Oil & Energy Qatar Liquefied Gas Company 4 (Qatargas 4) which is a Corporation. The natural gas will be sold as LNG after joint venture (JV) of Qatar Petroleum and Shell. In the liquefaction to its customers, including buyers in Japan. JV, Qatar Petroleum holds 70% stake while Shell holds Source: Rigzone INTERNATIONAL: COAL

Rio Tinto recommends Yancoal coal offer over supplies to avoid another crunch in supply that triggered Glencore a historic rally in prices last year. Data showed miners in May produced coal at their fastest pace in years ahead of June 20, 2017. Rio Tinto selected Yancoal to buy its Coal peak summer demand. Prompt coal prices for cargoes & Allied division in Australia for $2.45 billion, surprising from Australia's Newcastle export terminal, Asia's commodities trading giant Glencore, which had put in a benchmark, have shot up 18 percent since mid-May to higher bid. Glencore offered $2.55 billion cash this $84 per tonne. Total daily consumption from six of the month for Rio's coal mines in the Hunter Valley region largest coal power plants rose to 622,400 tonnes per day of New South Wales, beating a previous offer from by June 16, up from 592,000 tonnes a month ago, Yancoal, which is based in Australia and owned by according to China Sublime Information Group. China's Yanzhou Coal Mining Company. Glencore has long sought Rio's high-quality thermal coal assets in the Source: Reuters Hunter Valley. Despite environmental concerns about Nippon Steel gives up coking coal pricing role as the carbon-intensive fossil fuel, Glencore expects influence wanes continued demand, especially in Asia, as coal can still be June 16, 2017. Nippon Steel & Sumitomo Metal, Japan's the cheapest form of baseload power. Rio Tinto said top steelmaker, has given up its decades-old role in setting Yancoal had agreed to accelerate payments it had said it global coking coal prices because the rise of Chinese and would defer when it made its original offer in January. Indian rivals has weakened its influence over the market. Yancoal will also pay a royalty linked to coal prices. Nippon Steel stepped down as top negotiator on the Glencore said it had received clearance from Japan, coking coal benchmark, also because wild swings in the which would be the destination for much of the coal spot market played havoc with its profits, with gaps involved. between the benchmark and spot prices making it less Source: Reuters responsive to the market than rivals using index-linked pricing. Japan bought 61.5 million tonnes of coking coal China's coal futures forward curve turns bullish as in 2008, more than double India's 26.5 million and nearly mercury rises 20 times China's 3.2 million. Last year, though, Japan June 16, 2017. China's thermal coal futures rallied to a imported 53.4 million tonnes against India's 46.7 million record high, lifting September futures to a premium over tonnes and China's 35.7 million, according to Clarksons October, as a prolonged hot spell spurred power demand Research. Nippon Steel and other Japanese steelmakers and low water levels dented hopes of higher hydro output. have long resisted the idea of more flexible pricing for The buying lifted futures for delivery in September to a coking coal, preferring the stable supply and steady prices premium of 6 yuan ($0.88) per tonne over October, in a of quarterly term contracts. Using the new pricing structure known as a backwardation, when prompt prices formula - which sets prices based the spot price indexes are higher than those for later months, that reflects provided by S&P Global Platts, Argus Media and The tightening supplies. At the start of the month, the spread Steel Index - coking coal for the April-June quarter will had been in a 4 yuan contango. The new curve suggests a likely be set at around $190-195 a tonne, Nippon Steel brighter outlook for prices of the fuel most used to said. generate power in China even as Beijing has tried to boost Source: Reuters China allows coal mines to increase capacity amid materialize, as forecast, since the commissioning of about price rally 700 MW of new resources could be delayed, FERC said. In Texas, FERC forecast that reserve margins in the June 16, 2017. China will allow some coal mines to Electric Reliability Council of Texas, which operates the increase capacity, the National Development and Reform power grid for about 75 percent of the state, would Commission (NDRC) said, as Beijing ramps up efforts to continue to be tight when compared to other regions, boost supply for summer. Both open pit and even though the operator expects to have adequate underground mines will be able to apply to increase generating capacity to meet peak demand. production capacity as long as they haven't reported Source: Reuters major accidents, are efficient mines and follow strict safety measures, the NDRC said. Producers in regions Australia faces potential summer power crunch, that have complex geological conditions, are vulnerable market operator warns to firedamp accidents or have been required by the June 14, 2017. Eastern Australia's power grid will be government to cut capacity will not be eligible to apply. stretched again if fierce heatwaves hit over the next two NDRC's latest move came as China's coal futures prices summers, despite recent government steps to beef up rose to a record high as warm weather leading into the supply, the Australian Energy Market Operator (AEMO) summer season raised investors' expectations for said. The latest outlook from the AEMO comes three increased demand. China's coal production rose 12 months after it warned that Australia's most populous percent in May from a year ago, notching the fastest states face a gas shortfall from the end of 2018 that could growth pace in years, data showed. The NDRC said spark power or gas cuts to homes and businesses. The producers granted quota increases would need to shut AEMO said power supply should be adequate in normal down some old inefficient coal mines in exchange. summer weather, assuming 140 MW of energy storage Source: Reuters backed by the South Australian and Victorian state INTERNATIONAL: POWER governments is in place, there are no planned generator outages and three gas-fired generators return to service as Southern California power supply at risk this promised. The market will need more coal-fired power in summer: FERC the state of New South Wales, more renewable power June 15, 2017. Natural gas constraints in Southern and higher output from gas-fired generators to replace a California could pose a risk to the region's power supply 1,600 MW plant shut by France's Engie SA in this summer, while New England and Texas could face neighbouring Victoria in March. The grid would be most tight electricity supplies, the United States (US) Federal vulnerable in extreme heat on weekday afternoons and Energy Regulatory Commission (FERC) said. The evenings when people switch on air conditioners, with anticipated reserve margin in ISO New England, the the risk rising if the wind drops and the sun is down or regional power grid operator, is forecast at 14.9 percent, other generation is disrupted at the same time, the slightly below the target of 15.1 percent. The operator AEMO said. could be forced to import additional power from neighbouring regions in case peak summer conditions Source: Reuters INTERNATIONAL: NON-FOSSIL FUELS/ CLIMATE CHANGE TRENDS

Wind, solar energy have not harmed US power grid S sedans and Model X sport utility vehicles more expensive than in the United States (US). China has June 20, 2017. With the Trump administration expected identified new-energy vehicles as a strategic emerging to publish an analysis that could undermine the United industry and aims to boost annual sales of plug-in hybrids States (US) wind and solar industries, two renewable and fully electric cars 10-fold in the next decade. energy lobbying groups released their own study saying Government support helped China surpass the US in new energy sources pose no threat to the country's power 2015 to become the world’s biggest market for the non- grid. Wind and solar advocates have said the government emission autos. Tesla, which made roughly 80,000 cars in study's outcome appeared to be pre-determined to favor 2016 and aims to boost it by about 7-fold to 500,000 fossil fuel industries. The new report, commissioned by annually by 2018. The automaker also plans to finalize the American Wind Energy Association and Advanced locations of up to three battery Gigafactories this year. Energy Economy, said cheap natural gas is behind most of the decline in the numbers of US coal-fired power Source: Bloomberg plants in recent years, not government subsidies that have Carbon capture needed in climate change fight: IEA bolstered the growth of wind and solar power. It also said there is no evidence to show that wind and solar energy June 19, 2017. Carbon capture and storage is gradually are threatening the reliability of the electric grid. The gaining government attention after being overtaken by groups commissioned the report shortly after Energy investment in wind and solar energy, with the Secretary Rick Perry in April ordered a 60-day study of International Energy Agency (IEA) saying the technology the reliability of the grid and said Obama-era policies will be crucial to limiting global warming. The IEA offering incentives for the deployment of renewable estimates carbon capture and storage (CCS) will be energy had come at the expense of energy sources like needed to cut 14 percent of the emissions that have to be coal and nuclear. abated by 2060 to limit the global rise in temperature to less than 2 degrees Celsius (3.6 degrees Fahrenheit). By Source: Reuters one estimate, $80 billion has been invested in renewable Tesla close to agreement on first production plant energy compared with $20 billion in CCS, Australia's in China ambassador for the environment, Patrick Suckling, said. Efforts to expand carbon capture and storage include a June 20, 2017. Tesla Inc is close to an agreement to Japanese project to bury carbon dioxide below the seabed produce vehicles in China for the first time, giving the off Hokkaido island and construction of China's first electric-car maker better access to the world’s largest auto large-scale carbon capture, utilisation and storage (CCUS) market. The agreement with the city of Shanghai would project at a coal-to-chemicals plant run by Yanchang allow Tesla to build facilities in its Lingang development Petroleum in Xian. zone and could come as soon. Details are being finalized and the timing of the announcement could change. Tesla Source: Reuters would need to set up a joint venture with at least one local US Supreme Court hands Chevron victory in partner under existing rules and it is not immediately clear Ecuador pollution case who that would be. Setting up local production is key for Chief Executive Officer Elon Musk to continue growing June 19, 2017. The United States (US) Supreme Court in China, where Tesla’s revenue tripled to more than $1 handed a victory to Chevron Corp by preventing billion last year. Assembling vehicles locally would allow Ecuadorean villagers and their American lawyer from the company to avoid a 25 percent tax that renders Model trying to collect on an $8.65 billion pollution judgment issued against the oil company by a court in Ecuador. The journal Nature, wireless charging would address a major justices turned away an appeal by New York-based lawyer drawback of plug-in electric cars -- their limited driving Steven Donziger, who has spent more than two decades range. A charge-as-you-drive system would overcome trying to hold Chevron responsible for pollution in the these limitations. Professor Shanhui Fan said that a coil Ecuadorean rain forest, of lower court rulings blocking in the bottom of the vehicle could receive electricity from enforcement in the US of the 2011 judgment. While not a series of coils connected to an electric current disputing that pollution occurred, San Ramon, California- embedded in the road. Mid-range wireless power transfer based Chevron has said it is not liable and that Donziger is based on magnetic resonance coupling. The team and his associates orchestrated the writing of a key transmitted electricity wirelessly to a moving light environmental report and bribed the presiding judge in emitting diode (LED) light bulb but the demonstration Ecuador. only involved a one milliwatt charge, far less than what electric cars require. The scientists are now working on Source: Reuters greatly increasing the amount of electricity that can be Sterling and Wilson bags solar project in Abu Dhabi transferred, and tweaking the system to extend the transfer distance and improve efficiency. June 19, 2017. Sterling and Wilson said it has bagged turnkey engineering procurement and construction along Source: Business Standard with operation and maintenance contract for the world's South Korea retires oldest nuclear reactor on its 40th largest single location solar photovoltaic (PV) plant in birthday Sweihan, Emirates of Abu Dhabi. According to the company, with construction already underway, the June 16, 2017. South Korea's oldest nuclear reactor, the prodigious plant, which is spread over a desert area of 7.8 40-year-old Kori No. 1, will halt operations, becoming sq km, is scheduled to be fully integrated with the grid in the country's first nuclear plant to close permanently a record timeline of just 23 months. The project was amid plans for a shift towards natural gas and renewables. awarded at the lowest ever recorded bid in the history of South Korea is the world's fifth-biggest consumer of PV solar. The plant is jointly developed by Marubeni, a nuclear energy, and one of few countries to export its Japanese integrated trading and investment giant, along technology, having won an order to build reactors in the with Jinko, a global leader in the solar industry, and Abu United Arab Emirates. But a scandal over forged Dhabi Water and Electricity Authority. The consortium certificates for spare parts in 2012 and the 2011 has successfully bid a tariff of $2.42 cents per kilowatt Fukushima meltdown in neighbouring Japan have hour, marking the lowest cost ever for solar power. The undermined public support for nuclear power, while the plant, once commissioned, would save around 7 million new left-leaning government aims to speed up plans to tonnes of carbon emissions every year, a number that move away from both coal and nuclear. Another 11 of would be a national landmark. South Korea's 25 reactors are set to shut down by 2030 as they reach the end of their operating lives, although Source: The Times of India some may push to have their operating licenses renewed. Stanford scientists develop wireless charger for cell With the country still setting its long-term energy plans, phones, electric cars it is unclear how many will be replaced by new reactors. Since Kori No.1 began operations on June 19, 1977, the June 18, 2017. Scientists at Stanford University in the 587 MW reactor has generated enough electricity to meet United States (US) have developed a device that can the entire country's current demand for around 100 days, wirelessly charge a moving object at close range. The technology could one day be used to charge electric cars according to data from the Nuclear Safety and Security Commission. The energy ministry estimated it will take at on the highway, or medical implants and cellphones as least 15 years to fully dismantle Kori No. 1, at a cost of you walk nearby. According to the study, published in the about 644 billion won ($571 million). Some experts hope that shutting the reactor may help South Korea catch up accounting for almost three quarters of that, a report by to the United States, Japan and Germany in Bloomberg New Energy Finance (BNEF) said. By 2040, decommissioning plants. The global decommissioning global emissions are expected to be 4 percent below market is expected to grow to about $980 billion by 2050, 2016's levels, but an additional $5.3 trillion investment in according to a report by the Korea Atomic Energy renewable power would be needed by 2040 to keep rising Research Institute. global temperatures below 2 degrees Celsius (3.6 degrees Source: Reuters Fahrenheit). Under the 2015 Paris deal, more than 190 countries pledged to curb greenhouse gas emissions to Bulgaria accused of illegal aid to fossil fuel power keep planet-warming well below 2 degrees to stave off providers the worst effects of climate change. The report said the June 15, 2017. Bulgaria has given €1.3 billion ($1.5 billion) costs of renewable power were expected to continue to in illegal aid to coal-fired and other power plants, fall, with the cost of solar tipped to fall by 66 percent by according to a complaint filed with the European 2040. Commission by London-based ClientEarth lawyer Sam Source: Reuters Bright. European Union (EU) state aid rules are designed Nevada reinstates key solar energy policy to support a shift towards a lower carbon economy, though they allow some support for fossil fuel if it is June 15, 2017. Nevada Governor Brian Sandoval signed needed to prevent blackouts or if it cuts emissions by a bill to reinstate a key rooftop solar policy and bring improving efficiency. Bright said the activist lawyers had national residential installers Tesla Inc's solar division and spent more than a year investigating Bulgaria's practice of Sunrun Inc back to the state after an 18-month absence. requiring public power provider NEK and distribution State legislators passed the bill, which requires utilities to companies to buy all the electricity produced by plants purchase excess power generated from rooftop solar classified as "high-efficiency co-generation" that produce panels at near the full retail rate. heat as well as power. These operators are paid a surcharge, which comes from a levy on consumer bills. Source: Reuters ClientEarth, whose campaigning successes include Trump administration to suspend rule on natural exposing Britain's breach of EU air quality legislation, gas waste said its research found the aid flouted EU rules and the plants did not qualify for such help. In that complaint, June 14, 2017. The Trump administration will suspend ClientEarth alleges four power plants, which will receive compliance dates on a rule limiting methane emissions permits to pollute worth €197 million between January from oil and gas companies working on public lands as 2013 and December 2020, had not met all the criteria to soon as, according to an Interior Department document. qualify. The move is part of an effort by President Donald Trump, a Republican, to roll back the environmental regulations Source: Reuters of former President Barack Obama, a Democrat. The Global power sector emissions to peak in 2026 Environmental Protection Agency said it would propose a two-year stay on another Obama methane rule requiring June 15, 2017. Global emissions of greenhouse gases companies to detect and capture leaking emissions. from the power sector are expected to peak in 2026, but Compliance dates on the rule on methane on public lands, will still be some way above levels needed to limit which the Obama administration issued in November temperature rises in line with the Paris climate agreement, 2016, will be suspended until a federal court in Wyoming research showed. Overall, $10.2 trillion will be invested in new global power generation between 2017 and 2040, considers litigation on the regulation, the document said. with renewable power sources such as wind and solar Source: Reuters DATA INSIGHT Scenario of Solar Power Capacity vis-a-vis Total Renewables Generating

Capacity

Year Solar Power Capacity Addition Solar Power Cumulative Capacity

(MW)

Upto 2010 -- 11

2010-11 25 36

2011-12 994 1030

2012-13 656 1686

2013-14 946 2632

2014-15 1112 3744

2015-16 3019 6763

2016-17 (As on October 2016) 1965 8728

Trends in Solar and Total Renewable Generating Capacity MW

60000 Renewable Capacity Solar Capacity

50,745 50000 42,849

40000 35,777 31,702 30000 27,542 24,503

20000 18,455 15,521

9,235 10000 6,763 3,744 1,686 2,632 11 36 1,030 0 Upto 2010 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 (As on 31.01.2017)

Source: Compiled from Central Electricity Authority & Press Information Bureau FACT FILE

The international crude oil price of Indian Basket as computed/published by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.85 per barrel (bbl) on 22.06.2017. This was lower than the price of US$ 44.45 per bbl on previous publishing day of 21.06.2017. In rupee terms, the price of Indian Basket decreased to ` 2828.16 per bbl on 22.06.2017 as compared to ` 2871.41 per bbl on 21.06.2017. Rupee closed stronger at ` 64.50 per US$ on 22.06.2017 as compared to ` 64.60 per US$ on 21.06.2017. (PIB)

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