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IOC to import LNG due to drop in domestic gas output  

IOC to import LNG as domestic output falls

(Courtesy: The Hindu Business Line, New Delhi, August 30, 2011)

IndianOil (IOC) wants to import gas to meet its requirements.

The drop in domestic gas output and growing dependence on LNG has led to the company taking this decision, the Director, Planning & Business Development, Mr A M K Sinha said.

IOC needs 20-22 million standard cubic metres per day of gas for all its refineries. Of this, IOC was getting 1.6 mscmd from the Reliance Industries-operated D6 block. But, the fall in D6 output had compelled the Government to divert the gas allocated to refiners to core sectors such as fertiliser and power to meet their requirements.

Currently, IOC is getting imported gas from Petronet LNG. This is part of its share as a promoter of Petronet. But, the company is now looking at sourcing gas by itself. Subsequently, it plans to sell surplus gas, if any, to other consumers.

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IndianOil launched new multi-functional Domestic LPG Pressure regulators  

IOC’s new gas regulators make kitchens safer

The Hindu Business Line, New Delhi, August , 2011

To make your kitchen safer and more convenient, the oil marketing companies (OMCs) have introduced special regulators for LPG cylinders. The multi-functional regulator with additional safety features like level indicator, child lock, excess flow check valve and built-in leak detector has been launched as a pilot this year.Most of the instances of bursting of LPG cylinders have been reported because of improper handling, customer negligence, leakages from the rubber tube, usage of non-standard equipment and exposure to intense heat.

IndianOil launched these regulators in Delhi on Friday. The company had recently launched these regulators in Pune.

The new multi-functional Domestic Pressure Regulator has been developed and tested by an International Certifying agency, TUV, the company said. It is available in two models – with analog display and electronic display. Existing LPG customers can have these installed by paying the differential amount of security of their conventional regulator and the new multi-functional regulator. The applicable security deposit for the new regulator with new connection is Rs 600 and Rs 400, respectively, for electronic and analog.

The 100 per cent excess flow shut-off feature is designed to completely shut off flow of LPG in case of tube failure.

According to IOC, the child lock feature will restrict the knob movement towards ON position. There is also a mechanism to help check leakages in the tube. The regulator has an analog display and an alarm system that will help to determine the quantity of LPG in a cylinder. The three levels shown through the LED display are categorized into GAS, LOW and REFILL. The GAS level indicates that there is plenty of gas in the cylinder, LOW level indicates early warning of low gas in cylinder and REFILL indicates 10-15 per cent gas left in the cylinder which indicates that it is time to book for the refill.

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Towards dedieselizesd economy  

Kicking the diesel habit

(Courtesy: Mint, New Delhi, August 23, 2011)

Early this month, the Indian Railways signed a memorandum of understanding with IndianOil to explore the possibility of replacing diesel and instead using liquefied natural gas (LNG) in its workshops and locomotives in a phased manner.

This is a significant move in the right direction for an economy trying to “dedieselize” itself. India imports close to 80% of the crude oil, from which diesel is derived, that it requires. Sure, LNG is also an imported fuel, but broadly speaking in “calorie” terms, it is cheaper than crude oil. No doubt that gap has been narrowing over the years, but the economic rationale to switch is unmistakable.

In India, this rationale is mildly blunted since diesel is sold at subsidized rates. Besides, the penetration of LNG has been dismal thus far, with only two companies operating LNG-receiving terminals. However, this trend is changing. As many as

four terminals are in the works on the eastcoast—IOC is one of the aspirants. To strike a deal with the railways is a good move as it seals up an “anchor” customer: The rail monopoly is the single largest consumer of diesel, accounting for around 6% of total consumption in the country. If the railways can embrace LNG outside the precincts of the workshops, as a locomotive fuel that will significantly reduce the subsidy burden borne by the government and public sector oil companies. The total subsidy burden on mass consumption petroleum products, including diesel, liquefied petroleum gas and kerosene, is as high as 1.5% of the gross domestic product, with diesel accounting for a major portion of this. This is all the more relevant given the dim prospects of the government raising the price of diesel over the remaining three years of its term.

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Recent Petrol and diesel prices in India, USA, Italy, the UK , Germany ,Pakistan , Sri Lanka , Bangladesh and Nepal  

Petrol in India costlier than in US; diesel cheaper

The Hindu Business Line, New Delhi, 25th August, 2011

Diesel consumers in India pay lower prices than their American counterparts. But, petrol due to the high tax component is priced higher in India than in the US. Petrol in India is sold at Rs 20.88 a litre higher than in the US, while diesel is cheaper by Rs 4.55 a litre.The Minister of State for Petroleum and Natural Gas, Mr. R.P.N. Singh, informed Rajya Sabha, that retail selling prices of PDS kerosene and domestic LPG in India are the lowest compared with the neighbouring countries.

The retail selling price of diesel is comparable with prices in neighbouring countries and much lower than the prices in European countries. For petrol too the prices in India are much lower than prices in several European countries, he added. In India petrol is retailed at Rs 63.70 a litre (Delhi), while in the US it is sold at Rs 42.82 a litre. However, in Italy, the UK and Germany it is priced at Rs 96.79 a litre, Rs 96.39 a litre, and Rs 95.99 a litre respectively.

Without taxes, petrol would cost Rs 23.37 a litre in Delhi. In Pakistan petrol is sold at Rs 41.81 a litre and Sri Lanka Rs 50.30 a litre.Diesel is sold at Rs 41.29 per litre (Delhi) and without taxes; it would cost Rs 24.90 a litre. In the US, diesel costs Rs 45.84 a litre, while in the UK it is Rs 82.93 a litre and Rs 74 per litre in Italy.

In Pakistan diesel is priced at Rs 46.70 a litre and Sri Lanka Rs 34.37 a litre.PDS kerosene price of Rs 14.83 a litre in Delhi and domestic LPG Rs 399 per cylinder are the lowest in the region.In order to insulate the common man from the impact of rising oil prices in the international markets and the domestic inflationary conditions, the retail selling prices of diesel, PDS kerosene and domestic LPG are being modulated by the Government, the Minister said. Prices in Pakistan, Sri Lanka, Bangladesh and Nepal are as per IndianOil. Price of Petrol and Diesel in the US, France, Germany, the UK and Italy are as per the IEA report: ‘End use petroleum product prices and average crude oil import costs' for July 2011.

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India’s exports of petro products may surpass South Korea  

India to be Asia's top exporter of petro products

(Courtesy: DNA, Mumbai, August 27, 2011)

A nation perennially lacking in oil and gas assets is set to become the top petro products exporter in Asia overtaking South Korea, thanks to rapidly rising refining capacity.

Petro products are obtained after distillation of crude oil and include petrol, diesel, kerosene, LPG, furnace oil, aviation turbine fuel and naphtha. As on June 2011, India’s exports of refined products stood at 0.95 million barrels per day, while South Korea was at around 1.1 million barrels.

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five million tonnes per annum liquefied natural gas (LNG) terminal on east coast  

IOC plans second LNG terminal on east coast

(Courtesy: Financial Chronicle, New Delhi, August 29, 2011)

IndianOil (IOC) mulls setting up its second five million tonnes per annum liquefied natural gas (LNG) terminal on east coast. The public sector refiner is in talks with global LNG suppliers such as Gazprom, RasGas and ExxonMobil to secure natural gas supplies for its two terminals.

“We are actively working for setting up an LNG terminal on east coast,” IOC’s director for planning and business development, AMK Sinha, said in an interview. The company is carrying out initial studies, but yet to finalise a location for the terminal, Sinha said. According to the plan, IOC may start work on the terminal by 2013.

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