10 Monday, June 10, 2019 Economy & Business central bank to enhance monitoring of shadow banking firms

Reuters western Indian city of Pune. and stoked concerns of a ma- Given the importance of sets after India’s Supreme MUMBAI The comment comes at a laise in the sector. NBFCs for the Indian econo- Court in April struck down its time when there are fears that “The Reserve Bank will my, the governor stressed the earlier guidelines saying it had Reserve Bank of India India may be facing a major continue to monitor the activ- need for a higher level of su- acted beyond its powers. Governor Shaktikanta Das crisis in its shadow banking ity and performance of this pervision of such companies to The new rules “will sustain said the central bank would sector after shares of Indian sector with a focus on major ensure solid credit growth and the improvements in credit closely monitor the health of mortgage lender Dewan Hous- entities and their inter-linkag- asset liability management. culture” and help in making non-banking financial com- ing Finance Corp Ltd (DHFL) es with other sectors,” he said, Das said as part of initia- India’s financial system strong panies (NBFCs) and it would plunged this week after two in a speech that was published tives to enhance supervision and resilient, Das said on Sat- not hesitate to take correc- credit-rating firms cut their on the RBI’s website late on of NBFCs, the central bank is urday. tive measures, if needed, to view of DHFL debt to “default” Saturday. putting in place a system to Das also urged Indian pub- address issues in the shadow levels. The regulator will soon ensure regular interaction with lic sector banks (PSBs) to not banking sector. The looming trouble at issue final guidelines for li- all stakeholders in the shadow depend solely on government “We will not hesitate to take DHFL comes nine months quidity risk management and banking value chain such as capital infusions to solidify any required steps to maintain after a series of downgrades will put in place a compre- auditors, credit-rating agen- their balance sheets. financial stability in the short-, and defaults at another major hensive information technol- cies and banks. “Depending upon individ- medium- and long-term,” Das NBFC, Infrastructure Leas- ogy framework to strengthen The central bank on Friday ual situations, PSBs should ac- said in a speech on Saturday at ing and Financial Services surveillance of NBFCs, the The logo of Reserve Bank of India (RBI) inside its headquarters in issued new guidelines around cess the capital market for mo- a convocation ceremony in the (IL&FS), shook stock markets governor said. Mumbai recently. (REUTERS) the resolution of stressed as- bilisation of capital,” he said. Asian spot Global gas demand to grow LNG prices fall to 3-year low at 1.6% per year until 2024 Domestic demand Reuters Essar Steel awarded three in US, MENA would LONDON of their six-cargo tender for end-September, end- contribute to the Asian spot prices for liq- October and mid-Novem- uefied natural gas (LNG) ber deliveries, two sources growth in demand, fell to a three-year low said. the IEA said in thin trading as market A South China utility players focused on deals was heard in the market Reuters for August, when demand for a late-August and a PARIS is expected to pick up. September cargo. Spot prices for July A four-cargo tender Global gas demand is ex- delivery to Northeast Asia from Indonesia’s Tangguh pected to grow at a rate of are estimated to be $4.25 plant was heard awarded 1.6 percent a year until 2024, per million British thermal at Platts’ JKM plus up to 10 fueled by Chinese consump- units (mmBtu), down from cents per mmBtu, a source tion which will account for $4.50 last week. said. The deliveries, one over a third of the demand That is the lowest since for each half month in Au- growth during the period, the April 2016 when prices gust and September were International Energy Agency slumped to $4.00 per awarded to DGI, Marubeni said on Friday. mmBtu, itself the low- and Shell. China’s push to switch est since Reuters began also launched from coal to gas in power assessing prices in July a huge tender for 240 car- generation and natural gas 2010. The August price is goes spread across a 10- for residential use to improve assessed to be around 20- year delivery period, seek- air quality under its “blue 30 cents higher. ing offers by July 18. skies” initiative will play a The lackluster market In the Atlantic Basin, major role in driving de- this week reflects a fall in the Marvel Crane LNG mand, the IEA said. the broader energy com- tanker picked up a com- China’s gas demand plex over fears of a global missioning cargo from growth is seen at an average economic slowdown and Sempra Energy’s Cameron rate of 8 percent, down from the threat of a full-blown LNG, the latest liquefac- the two-digit growth rate in trade war between the tion facility in the U.S. to recent years as its economic United States, a top LNG begin operations. growth slows, but would still exporter, and second larg- The tanker is now account for around 40 percent est buyer China. heading to North West of the global demand increase Brent crude oil prices, Europe, according to ship- in the coming years, said Kei- against which many Asian ping research group Kpler. suke Sadamori, IEA Director The US is expected to continue its lead in supply growth with annual gas output seen exceeding 1 trillion cubic meters by 2024. (afp) LNG purchases are priced, A trading source said the for Energy Markets & Security. have fallen almost 15% in cargo had been offered at The Asia-Pacific region pected to be a strong source of demand in building and power Australia and Russia would the past three weeks, dip- a 10 cent discount to the will remain the largest source growth, accounting for almost generation, he said. account for around 90 percent ping to below $60 a bar- NBP British month-ahead of gas consumption growth in half of the global increase, re- The United States is ex- of the increase in LNG exports rel on Tuesday for the first price. the medium term with an aver- placing power generation as pected to continue its lead in during the period. time since mid-January. Latin American buy- age rate of 4 percent per year, the main growth driver. supply growth with annual In Europe, the supply gap The market remained ing continued, with Ar- and will account for around 60 In 2018, global gas de- China top output seen exceeding 1 tril- will widen to reach 336 bcm well supplied with Austral- gentina’s IEASA seeking percent of the total consump- mand saw its strongest growth lion cubic meters (tcm) by by 2024, increasing by al- ia’s Ichthys plant offering six cargoes for August into tion increase until 2024. since 2010 at an estimated LNG importer 2024. most 50 bcm per year as do- two LNG cargoes for June. Escobar and Mexico’s CFE Domestic demand in the rate of 4.6 percent, driven by In the LNG market, trade is In the liquefied natural gas mestic production continues Indian buyers, a bright seeking one cargo into United States, the Middle East the United States and China, expected to reach 546 bcm by market (LNG), trade is expect- its slide with the phasing out spot in Asian demand, con- Manzanillo in July. and North Africa, would con- both accounting for 70 percent ed to reach 546 bcm by 2024 of the Groningen field in the tinued to enter the market Platts got its first trans- tribute to the growth in de- of total demand growth. 2024 from 432 bcm in 2018. from 432 bcm in 2018. China Netherlands, and North Sea with Reliance Industries parent bid into Europe mand, the IEA said in its an- “Demand growth in the China will become the largest will become the largest LNG depletion. heard seeking three car- with Trafigura bidding for a nual gas market report. US was the largest, increas- LNG importer by 2024 at 109 importer by 2024 at 109 bcm, IEA said the use of LNG for goes for delivery in July, cargo for delivery into Bar- Gas demand in Europe will ing by 80 billion cubic meters bcm, ahead of Japan ahead of Japan. maritime transport was still a September and October, celona at the end of July for benefit from the shutdown of (bcm) or over 10 percent. The The IEA report said the niche market concentrated in according to sources. $3.30 per mmBtu. The bid coal and nuclear power plants, switch from coal to gas mainly United States was expected to Europe with around 155 LNG- Another source said came on Thursday when but gains would be limited by in power generation for the US The weather also had a ma- surpass and Australia fuelled vessels in operation Reliance bought a cargo Platts assessed the south- the expansion of renewables or in residential and industry jor impact on US gas demand to become the world’s largest as of early 2019, but the fleet for Aug. 10-15 at $4.45- ern European LNG price at and lower demand for heating, sector for China was respon- in 2018 with a colder-than- LNG exporter by the end of the of LNG-powered vessels was $4.55 per mmBtu. India’s $3.556 per mmBtu. it said. sible for nearly half of the in- average winter and hotter- forecast period, at 113 bcm in growing fast, and would dou- The industrial sector is ex- crease,” Sadamori said. than-average summer driving 2024, and the United States, ble by 2024. SalamAir receives second A320neo aircraft OMV to pay Gazprom $1 bn for stake in Siberian gas field Tribune news network travel options in the region. benefits including 20 percent “We are also expecting an- fuel burn reduction per seat Reuters projects and have agreed to other A320neo aircraft deliv- and 14 percent lower cash op- VIENNA “explore options for the joint Omani airline SalamAir has ery in June. This aircraft which erating costs per seat. development of small-scale received a new Airbus A32n- offers unbelievable efficiency With nearly 50 percent re- OMV recently agreed to pay LNG infrastructure projects,” eo aircraft, the second of this will help us achieve our goal duction in noise footprint, its 905 million euros ($1 billion) OMV said. model in the airline’s fleet. of offering even more destina- quieter engine enhances trave- to Russia’s Gazprom for a stake “We have been receiving re- With their wider aisles, tions to our guests, our aim be- lers’ comfort. in a Siberian gas field, as part of liable gas supplies from Russia wider seats, more stowage ing to reach 60 destinations.” SalamAir said four more the Austrian firm’s strategy to for more than 50 years, now we space and unbeatable fuel ef- A320neos are set to be deliv- boost its gas business. are extending our cooperation ficiency, the new A320neo is ered later this year, bringing OMV Chief Executive Rain- to LNG,” said Seele. “This will custom-built for SalamAir and SalamAir network oper- the total number of A320neos er Seele is banking on a sharp contribute to the diversification can comfortably accommodate ates to 20 destinations in the airline’s fleet to six. rise in demand for natural gas as of sources of supply and help 180 guestsm, the airline said in including , , SalamAir network oper- a low-emission alternative to oil us safeguard security of supply a statement on Sunday. Suhar, , Doha, ates to 20 destinations includ- in power generation and heavy in Europe.” OMV has a stake The newest addition, which , , , ing Muscat, Salalah, Suhar, transport including trucks. at the LNG terminal in Rotter- will join the airline’s existing , , Dubai, Doha, Jeddah, Karachi, OMV’s planned purchase of dam, but that has not been a key Airbus A320neo, are part of Multan, Sialkot, Shiraz, Kath- 24.98 percent of the Achimov focus for the company so far. SalamAir’s extensive expan- , , mandu, Khartoum, , Al- IV and V phase developments at Production at the Achimov sion strategy. Dhaka, Alexandria, , exandria, Riyadh, , and the Urengoy gas field is also part blocks is forecast to start next SalamAir CEO Mohamed Kuwait, and Abu-Dhabi, in addition, to the in OMV’s strategy to focus pro- year. In 2026, the fields are ex- Ahmed said, “We are thrilled recently launched destinations duction in low-cost countries. pected to generate more than to be one of the first airlines , and Trabzon. The Austrian firm also said 80,000 barrels of oil equiva- in the region to take receipt The new A320neos will Additional passenger Gazprom would supply it with lent per day (boe/d). of the much sought-after sport SalamAir’s easily rec- services to compliment the 1.2 billion cubic meters of liq- OMV’s other Russian gas A320neo aircraft. This new ognisable logo along with its customer experience on the uefied natural gas (LNG) in asset, a stake in the Yuzhno aircraft means we are opening green and blue colours repre- home-grown airline include 2020. Russkoye field, currently deliv- the skies for more guests and senting the Sultanate’s land- options for extra luggage, and The companies plan to ers around 100,000 boe/d, but The A320neo has a host of benefits including 20% fuel burn reduction meeting the growing demand scape and the sea. seat and meal selection, the work together on conventional that is expected to decrease in per seat and 14% lower cash operating costs per seat. for convenient, pocket-friendly The A320neo has a host of statement said. and small-scale LNG cargo coming years.