The Asian Development Bank has extended a $275 million loan to China to help its bus operators shift their fleets to cleaner fuel, a move that is seen to reduce the growing air pollution in Chinese

Two major players announce price rise in the range of 10-34% across segments

Gujarat government-owned gas distribution player, GSPC Gas Company and the Adani Group's gas distribution arm, Adani Gas have announced sharp increase in gas prices for the domestic, industrial and CNG consumers. The price hike was attributed to the costly imported LNG and non-supply of cheaper domestic gas to Gujarat by Centre.

GAIL (India) has announced the successful commissioning of the Dabhol LNG terminal located at Ratnagiri in Maharashtra, around 340 km south of Mumbai.

This 5 million tonnes capacity LNG terminal has been set up with an investment of Rs.4,000 crore and will go a long way in meeting the demand of user industries in Maharashtra. Gas from this terminal would be supplied to southern states through a pipeline that would be commissioned by the end of this month, GAIL (India) Chairman and Managing Director B. C. Tripathi told journalists in Mumbai after commissioning the LNG termina

After protracted wrangling, the Comptroller and Auditor General (CAG) will on Wednesday begin the second round of audit of Reliance Industries spending on the flagging eastern offshore KG-D6 gas block. CAG officials are scheduled to reach RIL's Navi Mumbai office on January 9 to begin the scrutiny, sources privy to the development said. The audit was initially scheduled to begin on January 2, but was deferred to January 9.

It had agreed in May to do a second round of audit of spending in KGD6 block for years 2008-09 to 2011-12 but that could not start due to differences over scope with RIL.

State-run Gujarat State Petroleum Corporation (GSPC) announced it has booked 2.25 million tonne per annum (MTPA) natural gas re-gasification capacity offerd by Petronet LNG Ltd (PLL) at its Dahej terminal in Gujarat.

GSPC has contracted the capacity on firm and long-term basis for 20 years. “GSPC will now be able to tie-up Liquefied Natural Gas (LNG) on a long-term basis in the international markets and serve its customers with an assured supply of gas for a longer tenure,” GSPC Managing Director (MD) Tapan Ray said.

Plans to charter floating terminal land-based project to be ready by '16

Petronet LNG Limited is planning to charter a floating LNG (liquefied natural gas) storage and regasification unit (FSRU) to bring LNG to the AP coast early by 2014 while it expects to complete the land-based LNG terminal at Gangavaram port by 2016. The company made this revelation after it concluded the public hearing for developing the land-based terminal on Thursday. “Petronet LNG Limited is fully committed to this project and is working on various options for bringing gas early, to meet the energy deficit, both in the state and in other parts of the country,” the company said while stating that chartering an FSRU was being considered to bring LNG much ahead of the completion of land-based terminal.

Natural gas prices in the economy are expected to rise as a panel led by the Prime Minister’s Economic Advisory Council chairman C Rangarajan has asked for linking domestic prices to an average of international hub prices and the cost of imported LNG.

The report submitted to Prime Minister Manmohan Singh has also suggested scrapping the cost recovery clause in production sharing contracts (PSCs) the government signs with exploration companies in future. Instead it has suggested the share of the contractor should be determined through a competitive bid process. The recommendation is expected to avoid tussles like that of the oil ministry with Reliance Industries Ltd where the difference in cost recovery formula has almost led to arbitration.

The suggestions are now expected to be vetted by the oil ministry

The Rangarajan Committee, looking into the Production Sharing Contracts (PSCs) in the oil and gas sector, has suggested an annual revision based on an average of international gas prices unlike the five-year cap currently in place for gas produced in Reliance Industries’ KG-D6 block. Currently, $4.2 per million british thermal units (mbtu) is the benchmark for domestic price.

Company has proposed a 5-mtpa LNG terminal at Gangavaram in Visakhapatnam district

A public hearing on the establishment of a 5-million tonne per annual (mtpa) liquefied natural gas (LNG) terminal proposed at Gangavaram in Visakhapatnam district by Petronet LNG Limited is being held tomorrow. The Vizag district administration has made arrangements for the same at Gangavaram port after the chief secretary intervened in the matter, officials said here.

However, experts from the oil and gas industry feel that the move by company would not bring much relief in the present high price situation

City gas distribution major Gujarat Gas Company Ltd (GGCL) has decided to focus on domestic suppliers for procurement of LNG after its supply contract with BG gorup subsidiary, BG India Energy Solutions Private Limited (BGIES) expired last month. GGCL used to source re-gasified LNG (RLNG) from BGIES. After British Gas Group sold its stake in GGCL in October, 2012, the company has decided to give preference to domestic suppliers. GGCL has PNG customer base of over 350,000 in three cities of Surat, Ankleshwar and Bharuch. It also has close to 200,000 CNG consumers.