Ambassador of Republic of Korea meets the Petroleum Minister Shri Dharmendra Pradhan





Ambassador of Republic of Korea meets the Petroleum Minister Shri Dharmendra Pradhan

A meeting was held between the Minister of State (I/C) for Petroleum & Natural Gas, Shri Dharmendra Pradhan with the Ambassador of Republic of Korea Mr. Joon-gyu Lee today. The meeting was held to apprise the Ambassador of GAIL’s requirement for charter hiring of 9 LNG ships for transporting LNG from USA which is necessary for meeting energy requirements of the country. The delivery of LNG would start from December, 2017.


A Global tender has been floated by GAIL (India) Limited for hiring of 9 LNG Ships in 3 lots of 3 ships. There is a mandatory provision in the tender of building 1 ship in each lot in partnership with Indian shipyards. This is a part of the ‘Make in India” effort. The tender has already been extended twice. The tender needs to be finalized and awarded by May, 2015 to start supplies from December 2017.

4 Korean Shipyards qualify for GAIL’s tender requirements namely: Samsung Heavy Industries; Daewoo Ship Building and Marine Engineering; Hyundai Heavy Industries and STX Offshore & Shipbuilding* (STX). Three Indian shipyards are interested in the project, however there is need for collaboration with Korean shipyards. Korean shipyards have citied government restrictions in technology transfer. One of the restrictions cited is that Technology of LNG ship design and construction has been registered as Korea’s National Core Technology and is handled at the National level and controlled by Korean Government Authority.

It was impressed upon the Ambassador, that GAIL’s tender, is at present globally one of the largest tenders. Also this was a very good opportunity for the Korean shipbuilders to expand their business to India. Korean Government intervention in sorting out the technology transference hindrance would greatly help in collaboration between the Indian and Korean shipyards.

It was impressed that this issue was also raised during Prime Minister Modi’s meeting with President Park Geun-hye in Myanmar on 12th November, 2014 on the margins of EAS and ASEAN Summit.

The ambassador promised to report the matter to his Government to find a solution to the issue at the earliest. Secretary (PNG), Secretary (Shipping), CMD (GAIL), JS(IC), and JS (East Asia) MEA were present during the meeting.
***
Setting up of LNG Terminals


The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that demand of Liquefied Natural Gas (LNG) in the country is price sensitive. Hence demand for LNG in the country will depend on the landed price of Regasified LNG.

Presently, the country is having 79.2 Million Metric Standard Cubic Meter per day (MMSCMD) of Regasification capacity and during the period April to September 2014, 44.55 MMSCMD of RLNG was supplied to consumers in different sectors. As such, the country is having spare regasification capacity which can be utilized depending upon the demand and affordability of consumers in different sectors to absorb imported RLNG.

The price of imported RLNG is market determined and is settled mutually between the buyer and the seller.

LNG terminals are set up by different entities based on their techno-commercial considerations. Presently, there is no proposal with the Ministry to set up LNG terminal in Mathura.

In September, 2013, Petronet LNG Limited (PLL) has commissioned LNG terminal at Kochi in the State of Kerala with a capacity of 5 MMTPA. Further, IOCL has planned to set up LNG import, storage and regasification terminal with a capacity of 5 MMTPA at Kamrajar Port (formerly Ennore Port) in the State of Tamil Nadu. The terminal is planned to be commissioned by end of 2017-18.

Presently Indian Oil does not have any proposal to set up a gas pipeline from Paradip to Vishakhapatnam.
***
Self Reliance in Petroleum Products



The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that after delicensing of refinery sector, the country’s refining capacity has more than tripled over the last fifteen years from 69.99 MMT as of 1.4.1999 to 215.066 MMT as of 1.4.2014.  The domestic consumption of petroleum products was 158.2 MMT during 2013-14.  Thus the present refining capacity is more than the demand of petroleum products in the country and the country is now a net exporter of petroleum products.

            The refining capacity of the country is projected to reach upto 307.366 MMTPA by end of 2016-17 as per the Draft Report of Working Group on Refinery for 12th Plan. Details are given in the Annexure-I.

The refining sector is a delicensed sector.  India is an attractive destination for investment in the oil and gas sector.  Indian Companies constantly endeavour to leverage this advantage for attracting foreign companies to invest in this sector.

Details of the export of petroleum products by oil companies during the last three years and the current year are given in Table 1 and 2 of Annexure-II.
-------------
Annexure referred to in reply to part  (a) and (b) of Lok Sabha Unstarred 
Question No.2471 to be answered on 8th December, 2014.
(Capacity in MMTPA)
S.
No.
Name of the Company

Location of the Refinery
Present Name Plate Capacity
Capacity projected 2016-17

Public Sector

1.
Indian Oil Corporation Limited
Guwahati
  1.00
1.00
2.
Indian Oil Corporation Limited
Barauni
  6.00
6.00
3.
Indian Oil Corporation Limited
Koyali
13.70
18.00
4.
Indian Oil Corporation Limited
Haldia
  7.50
8.00
5.
Indian Oil Corporation Limited
Mathura
  8.00
11.00
6.
Indian Oil Corporation Limited
Digboi
  0.65
0.65
7.
Indian Oil Corporation Limited
Panipat
  15.00
15.00
8.
Indian Oil Corporation Limited
Bongaigaon
2.35
2.35
9.
Indian Oil Corporation Limited
Paradip
-
15.00
10.
Hindustan Petroleum Corporation Limited
Mumbai
  6.50
8.20
11.
Hindustan Petroleum Corporation Limited
Visakhapatnam
  8.50
15.00
12.
Hindustan Petroleum Corporation Limited
Rajasthan
-
9.00
13.
Bharat Petroleum Corporation Limited
Mumbai
  12.00
13.50
14.
Bharat Petroleum Corporation Limited
Kochi
 9.50
15.50
15.
Chennai Petroleum Corporation Limited
Manali
 10.50
11.10
16.
Chennai Petroleum Corporation Limited
Nagapattinam
1.00
1.00
17.
Numaligarh Refinery Limited
Numaligarh
3.00 

8.00
18.
Mangalore Refinery & Petrochemicals Ltd.
Mangalore
15.00
18.00
19.
Tatipaka Refinery(ONGC)
Tatipaka
0.066
0.066


Total

120.066
176.366
Joint Venture
20.
Bharat Petroleum Corporation Limited & Oman Oil Company, a joint venture
 Bina
6.00
9.00
21.
Hindustan Petroleum Corporation Limited & Mittal Investments Ltd., a joint venture
Batinda
9.00
9.00

Total

15.00
18.00


Private Sector
22.
Reliance Industries Ltd.(Domestic)
Mothikhavd, Jamnagar
33.00
33.00
23.
Reliance Petroleum Ltd., SEZ
Jamnagar
27.00
27.00
24.
Essar Oil Limited
Vadinar
20.00
38.00
25.
Nagarjuna Oil Corporation Limited
Cuddalore.
-
15.00

Total

80.00
113.00

Grand Total

215.066
307.366


Annexure-II

Annexure referred to in reply to part  (e) of Lok Sabha Unstarred Question 
No.2471 to be answered on 8th December, 2014.

Table 1: Export of Petroleum products, 2011-12 to 2014-15(P) (Apr-Sep)




(‘000 Metric Tonne)
Products
2011-12
2012-13
2013-14
2014-15 (Apr-Sep)(P)
LPG
174
200
227
116
PETROL
14524
16657
15247
8136
NAPHTHA
10139
8647
8322
3459
AVIATION TURBINE FUEL
4561
4664
5745
2205
KEROSENE
34
23
15
6
DIESEL
20407
22464
26469
11689
LDO
84
9
30
6
LUBES
27
59
20
4
FUEL OIL
7895
5922
6159
2645
BITUMEN
5
87
95
44
OTHERS
2988
4675
5535
2357
TOTAL EXPORT
60837
63408
67864
30663
Source: Oil companies .P: provisional data

Table-2: COUNTRY-WISE EXPORT OF PETROLEUM PRODUCTS, 2011-12 to 2014-15 (Apr-Sep)(P) IN TMT
S.No.
COUNTRY
2011-12
2012-13
2013-14
2014-15
(Apr-Sep) (P)
1.
2.
3.
4.
5.
6.
1
AFGHANISTAN
0.0
0.1
0.03
0
2
ANGOLA
0.0
0.0
98
0
3
AUSTRALIA
824
159
529
330
4
BAHAMAS
2293
2293
702
102
5
BAHARAIN IS
0
72
37
0
6
BANGLADESH
0
0.2
1
12
7
BELGIUM
176
725
539
2
8
BENIN
361
0
0.0
0
9
BHUTAN
64
84
75
34
10
BRAZIL
3778
3480
3358
1702
11
CANADA
58
58
0
0
12
CHINA P RP
193
836
1569
1101
13
DJIBOUTI



23
14
KOREA DP RP
393
127
98
0
15
EAST AFRICA
0.0
42
0
0
16
ECUADOR
0.0
61
57
0
17
EGYPT A RP
268
501
612
423
18
FINLAND
0.0
0.0
26
0
19
FRANCE
906
1285
1091
343
20
GERMANY
415
145
191
0
21
GEORGIA
0.0
0.0
0.04
0
22
GIBRALTAR
279
0.0
0.0
54
23
GREECE
440
0.0
0.0
0
24
HONG KONG
58
120
105
0
25
INDONESIA
2210
1508
1757
369
26
IRAQ
56
108
35
0
27
ISRAEL
6
60
10
0
1.
2.
3.
4.
5.
6.
28
ITALY
169
194
475
73
29
JAPAN
2199
2066
2805
941
30
JORDAN
216
290
969
263
31
KENYA
931
2180
2591
1387
32
KOREA
1517
1022
1457
632
33
KUWAIT
0.0
0.0
6
0
34
LUXEMBOURG
0.0
4
0.0
0
35
MADAGASCAR
0.0
0.01
0.057
0
36
MALAYSIA
1022
871
1238
1119
37
MALDIVES
0.0
0.3
0.0
0
38
MALTA
926
326
235
0
39
MAURITIUS
1087
1110
1116
490
40
MOZAMBIQUE
97
578
908
693
41
NAMIBIA
0.0
0.0
131
0
42
NEPAL
988
1054
1177
626
43
NETHERLAND
1005
5327
4219
1115
44
NEW CALEDONIA
0.0
0.0
15
0
45
NETHERLANDANTIL
3232
0.0
0.0
0
46
NIGERIA
0.0
37
0.0
0
47
NEW ZEALAND
45
0.0
0.0
0
48
OMAN
365
1395
1273
368
49
PHILIPINES
0.0
0.0
61
86
50
PAKISTAN
0.0
15
6
0
51
QATAR
377
0.01
0.0
0
52
ROMANIA
99
33
0.0
0
53
SAUDI ARABIA
1717
5212
7036
4099
54
SINGAPORE
11678
8802
6485
3175
55
SLOVENIA
0.0
71
14
0
56
SOUTH AFRICA
1768
1709
2503
825
57
SPAIN
0.0
88
3
0
58
SRI LANKA DSR
731
589
705
348
59
SWITZERLAND
8
23
104
0
60
TAIWAN
1876
1747
558
197
61
TANZANIA REP
756
1159
3083
1230
62
TOGO
0.0
0.0
160
242
63
THAILAND
36
0.0
0.0
11
64
TURKEY
2694
2660
2963
1178
65
UGANDA
0.0
22
0.0
0
66
U ARAB EMTS
6326
7839
7305
3916
67
U K
445
262
908
0
68
U S A
1394
1731
3079
2216
69
VIETNAM SOC REP
14
59
44
55
70
YEMEN REPUBLIC
237
609
527
138
71
UNSPECIFIED
4105
2661
2815
669
72
DEEMED EXPORTS (SEZ)



75

GRAND TOTAL
60838
63408
67864
30663
Source: Oil Companies
TMT: Thousand Metric Tonnes
(P): Provisional and RIL-SEZ data estimated for Aug & Sep 2014
*****

Ambassador of Republic of Korea meets the Petroleum Minister Shri Dharmendra Pradhan Ambassador of Republic of Korea meets the Petroleum Minister Shri Dharmendra Pradhan Reviewed by Ajit Kumar on 5:14 PM Rating: 5

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