Major power producers in the private and public sector, including Tata Power, NTPC, Torrent Power and Mahagenco, have opposed the proposal floated by the Association of Power Producers (APP) to pool domestic gas with RLNG (regasified liquefied natural gas). They have opposed the move on the ground that this would lead to higher tariffs.

In its submission to the Central Electricity Authority (CEA) on the gas pooling issue, Tata Power said that its Trombay power station was allocated 1.5 million metric standard cubic metres per day (mmscmd) when ONGC flaring first started.

India's state-run upstream oil firms will bear nearly 40 percent of the 1.38 trillion rupee ($25 billion) cost of retail fuel subsidies for the 2011/12 year, a government source said on Monday.

Oil and Natural Gas Corp (ONGC), Oil India Ltd and GAIL (India) sell refined products and crude oil to state fuel retailers at a discount. Government also provides a cash subsidy to cover some of their losses.

State-run upstream firms will give a total discount of about 550 billion rupees to Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, the source said.

In response to demands from companies engaged in extracting coal bed methane (CBM) for a single operator who would work the CBM blocks, an inter-ministerial panel has asked the petroleum secretary GC Chaturvedi to prepare a note on best practices for the sector in areas where oil and gas finds overlap.

The Petroleum Ministry has sought cash subsidy of Rs.49,872 crore from the Finance Ministry to compensate state-owned oil companies for selling fuel at government-controlled rates in the January-March quarter.

Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together lost Rs.1.48 lakh crore on selling diesel, domestic LPG and kerosene at rates lower than cost in 2011-12, an Oil Ministry official said here.

The Oil Ministry has refused permission to public sector oil companies for acquiring Asian Development Bank's stake in Petronet LNG Ltd (PLL) so as to keep the nation's largest liquefied natural gas importer a private company. The ADB on August 23 last year offered to sell its 5.2 per cent stake in PLL, in which GAIL, Indian Oil (IOC), Bharat Petroleum (BPCL) and Oil and Natural Gas Corp (ONGC) hold 12.5 per cent stake each and have a first right of refusal.

An inter-ministerial panel has been set up to find a solution to the dispute between the Ministries of Coal and Petroleum on simultaneous extraction of gas and coal.

The panel, headed by Member Planning Commission, Mr B. K. Chaturvedi, is expected to meet on May 16. Official sources said that the Petroleum Ministry wanted coal mine methane (CMM) extraction to be done on the lines of coal bed methane (CBM).
Extraction process

New Delhi In an attempt to de-risk its exploration business, state-owned Oil and Natural Gas Corp (ONGC) plans to foray into gas retailing business through a new subsidiary -- ONGC Gas Ltd.

ONGC would use the new subsidiary for its foray into city gas distribution business and sale of imported liquefied natural gas (LNG), company officials said here. The new unit may be aimed at making amends to the company letting go lucrative opportunities to enter gas business.

June may turn out to be the luckiest month for government oil marketing companies for the third year in a row. Like the last two years, this June is also expected to see a round of price hikes in controlled fuel products. Price hikes of controlled petroleum products such as diesel, cooking gas and kerosene have been happening annually in the month of June, irrespective of the companies’ losses. A price increase of petrol is also likely.

In order to keep the nation's largest liquefied natural gas importer a private firm.

The Oil Ministry has rejected public sector oil companies' plan to acquire Asian Development Bank's stake in Petronet LNG so as to keep the nation's largest liquefied natural gas (LNG) importer a private firm. The ADB had on August 23 last year offered to sell its 5.2% stake in Petronet, in which GAIL, IndianOil (IOC), Bharat Petroleum (BPCL) and Oil and Natural Gas Corp (ONGC) hold 12.5% stake each and have a first right of refusal

India has escaped a standoff — a repeat of the South China Sea squabble — with neighbouring Bangladesh following a ruling by International Tribunal for Law of the Sea (ITLOS) that India’s natural gas assets in Myanmar were outside Dhaka’s maritime limits. Clarifying the ITLOS ruling on water boundary between Myanmar and Bangladesh, the Research & Analysis Wing (RAW) has informed that blocks A1 and A3 would “remain within Myanmar side”. The blocks collectively hold about 6 trillion cubic feet of discovered gas and state-run Indian firms hold 25.5 per cent equity in each.