RIL signs shipping deal with MITSUI O.S.K. LINES
Reliance Industries has signed shipping agreements with one of the world’s largest and reputed shipping companies MITSUI O.S.K. LINES, LTD (MOL) for transporting Liquefied Ethane from North America to India.
MOL will supervise the construction of six Very Large Ethane Carriers (VLECs), ordered by Reliance. MOL will also operate and manage the vessels after they are built and delivered.
Reliance, with this strategic tie-up with MOL, has achieved a key milestone for the successful implementation of Ethane import project to feed crackers in India.
Global refining industry face several challenges: Prashant Ruia at 24th AGM of Essar Group
Essar Group Chairman Prashant Ruia has give 24th AGM speech. He spoke about the industry scenario and company’s performance
Global refining industry continues to face several challenges in terms of weak demand, new capacity addition, and dominating role of government in both exporting and importing countries. Over the next seven years, we expect about 5.7 million barrels of net refinery capacity to be added. While Asia and Middle East will account for about three fourths of fresh capacity addition, the region is expected to be balanced in terms of capacity growth and demand.
Indian refining capacity, at 217 million tons per annum, is fairly balanced compared to actual demand after adjusting for fuel and loss, higher capacity utilisation and Special Economic Zone (SEZ) refinery. At 4-5% per annum expected growth rate, our surplus capacity will get absorbed in about next three to five years. Future expansion, unless they are brownfield, are going to be extremely challenging given the issues relating to land acquisition. Your Company is well-poised to meet this incremental demand and our strategy of investing in large-scale, low-cost refinery assets with long lifespans continues to be sound.
Government has taken several encouraging policy decisions which has put a renewed optimism in the sector. We have seen government deregulate diesel prices and hiked gas prices, which will benefit the country in the long run in terms of fiscal discipline and energy security.
Operational and Financial Performance
Coming to your company’s performance, I am very happy to share that we closed Financial Year 2013-14 surpassing the Rs 1 lakh crore revenue mark. We continue to be amongst India’s top 10 companies by revenue, which we achieved in five short years in beginning our commercial operations. Record throughput of 20.23 million metric tons aided your company to report the highest ever gross revenues of Rs 1,07,190 crore for Financial Year 2013-14, which is an improvement of 11% over Financial Year 2012-13.
Your company has continued to achieve excellent premium over benchmark margins, as envisaged at the time of implementing the Expansion and Optimisation Projects. For the full year, your company’s Constant Price Gross Refinery Margins (CP GRM) premium over the IEA margins stood at US$ 8.82per barrel, compared to US$6.80 per barrel in Financial Year 2012-13. Your company’s full year CP GRM for Financial Year 2013- 14 was US$ 7.98 per barrel.
BPCL plans to raise Rs 4,000 crore in Kochi
According to the report, BPCL is planning to raise Rs 4,000 crore for the expansion of its Kochi refinery to fund its petrochemicals venture. Report said, SBI has received the mandate to raise funds for BPCL's petrochemical plan. The company is planning to diversify into downstream petrochemicals with an investment of Rs 4,588 crore by using propylene. Report said, the company will invest around Rs 14,225 crore in its expansion at the Kochi refinery and Rs 5,000 crore for setting up a petrochemical joint venture.
GAIL to pay royalty on RIL gas price: Reports
According to reports, GAIL India Ltd has been asked to pay royalty on the $ 1.41 per unit it is collecting on natural gas produced from Reliance Industries' eastern offshore KG-D6 fields.
Earlier on October 17, the government had said that RIL will continue to get the old rate of $ 4.2 for the main D1&D3 gas field in KG-D6 block. Report stated that RIL and its partners BP plc of UK and Canada's Niko Resources would pay royalty on $ 4.2 per million British thermal unit as is being done presently. Oil Ministry said the royalty at the rate of 5% would be paid on each of the two components of the gas price separately, says report.
RIL, partners abandon east coast oil and gas block: Reports
Reliance Industries Ltd and its partners relinquished an oil and gas block off India's east coast due to access restrictions, Hardy Oil and Gas reportedly said.
Report stated that Reliance has a 60% stake in the D-3 block in the Krishna Godavari basin off India's east coast, while BP Plc has a 30 per cent stake and Hardy owns the remaining 10%.
Expansion of 5 kg LPG cylinder scheme in Delhi
Minister of Petroleum and Natural Gas launched the sale of 5 kg cylinders under Free Trade LPG scheme at 100 additional locations across the Delhi to cater to the LPG requirement for all sections of the society including economically weaker families, students, migrant labour etc. Speaking on the occasion Minister said that LPG is cleaner fuel and helps in creating a better and smokeless cooking environment.
LPG is easier to use and helps in faster cooking resulting in saving of time. Minister further stated that there are people such as migrant labourer, students, IT professional who do not have proof of Address, since they acquire a residence on temporary basis. Such people can buy a 5 kg LPG Cylinder at market price from various locations, including Retail Outlets of OMCs and designated shops located all across Delhi. The present cost of a non-subsidized 5 kg LPG connection including the cost equipment is Rs. 1887/- .
The refill price for 5 kg cylinder under this scheme currently is Rs. 351/- and same shall vary on monthly basis. Under this scheme, the customer is free to take the refill as per his/her convenience from any of the authorized outlet on “Cash & Carry” basis.He also said that people can also take a regular 5 Kg LPG Cylinder connection at subsidized rate by registering themselves with Oil Marketing Companies. The weaker sections of the society, who may find the connection cost of 14.2 Kg cylinder high would benefit with this low cost 5 kg cylinder connection. A 5 kg New Connection, with security of cylinder and Regulator along with other mandatory charges and cost of LPG, costs Rs. 905/- as against a New 14.2 Kg Connection which would cost Rs 2297/-.
Moody's places Petrobras Argentina's Baa2/Aaa.ar guaranteed notes on review for downgrade
Moody's Latin America Agente de Calificación de Riesgo has placed the Baa2/Aaa.ar ratings on Petrobras Argentina S.A.'s (Petrobras Argentina) USD300 million in guaranteed Series S notes (CUSIP 71646JAB5) on review for possible downgrade. The rating action reflects Moody's Investors Service's rating action of placing Petrobras S.A.'s (Petrobras) Baa2 global foreign currency and local currency debt ratings on review for possible downgrade on December 23, 2014.
On December 23, 2014, Moody's Investors Service placed Petrobras S.A.'s Baa2 global foreign currency and local currency debt ratings on review for possible downgrade. The rating action reflected concern about potential liquidity pressures that could arise if the company does not meet requirements under its bond indenture for the delivery of financial statements and holders choose to take actions that could lead to acceleration.