Bhai Zakir
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Japan-India teams up to buy cheap Oil & Gas
NEW DELHI: State-run gas utility Gail and Japan's Chubu Electric Power Co are coming together for jointly buying liquid gas with a view to leveraging their combined purchasing capacity to beat down prices.
"We are discussing with them (an agreement) and shortly we will be able to sign a MoU (for looking into joint purchase). It will be for all-round cooperation," GAIL chairman B C Tripathi said on Wednesday.
The company posted a 31% jump in the December quarter profit, which rose to Rs 1,679 crore from Rs 1,285 crore in the year-ago period.
The deal with Chubu would be the first step by two of the world's biggest liquid gas-consuming countries to form an Asian buyers' club against premium charged by suppliers. The agreement would be for cooperation in natural gas sector -- from liquid gas sourcing to shipping and supply.
Japan is the world's biggest importer of liquid gas in ships and India ranks fifth. The two countries buy fuel separately.
This brings hugely competing demand into the market and allows suppliers to jack up the price.
India, Japan and other Asian countries consume 70% of the world's liquid gas. The two sides held discussion on forging a common front at the December Asia Gas Partnership Summit organized by GAIL. Tripathi has been pursuing the initiative since the two governments agreed to examine the prospect.
The two nations feel liquid gas sold to Asian countries is priced more than what is charged from consumers in Europe and the US
and had in October 2012 agreed to examine ways to mitigate increasing import costs in Asia as well as to maintain stable supplies to the region.
Tripathi said GAIL has tied up 6 million tonne a year of liquid gas from the US beginning 2017-2018 and the company is planning to sell the entire volume to the domestic market. The company is looking to trade 1 million tonne a year of the liquid gas from US through its Singapore office.
It has signed a 20-year terminal service agreement with Richmond, Virginia-based Dominion to lift 2.3 million tonne of liquid ags from the Cove Point project. GAIL also has a contract with Cheniere Energy to import 3.5 million tonne a year of the fuel from the Sabine Pass terminal in Louisiana.
Gail, Japan’s Chubu form gas buyers’ club - The Times of India
India, Japan to jointly buy LNG - Economic Times
NEW DELHI, Jan. 27 (UPI) -- India's Oil and Natural Gas Corp. Ltd. said Monday a memorandum of understanding was signed with Japan's Mitsui & Co. for gas work in India and elsewhere.
"The memorandum of understanding provides for cooperation in exploration and production for conventional and unconventional petroleum and natural gas opportunities in India and in third countries," the Indian company stated.
The state-owned ONGC said the deal was signed Friday by senior officials from the two companies.
India and Japan are two of the leading natural gas consumers in the world, with the latter seeking more natural gas to offset the loss of nuclear energy from the 2011 meltdown at the Fukushima Daiichi nuclear power plant.
In early January, the ONGC said it expected to produce as much as 353 million cubic feet of natural gas from offshore reserves by 2018.
http://dalje.com/en-world/indian-japanese-companies-to-explore--oil-and-gas-prospects/497423
NEW DELHI: State-run gas utility Gail and Japan's Chubu Electric Power Co are coming together for jointly buying liquid gas with a view to leveraging their combined purchasing capacity to beat down prices.
"We are discussing with them (an agreement) and shortly we will be able to sign a MoU (for looking into joint purchase). It will be for all-round cooperation," GAIL chairman B C Tripathi said on Wednesday.
The company posted a 31% jump in the December quarter profit, which rose to Rs 1,679 crore from Rs 1,285 crore in the year-ago period.
The deal with Chubu would be the first step by two of the world's biggest liquid gas-consuming countries to form an Asian buyers' club against premium charged by suppliers.
The agreement would be for cooperation in natural gas sector -- from liquid gas sourcing to shipping and supply. Japan is the world's biggest importer of liquid gas in ships and India ranks fifth. The two countries buy fuel separately.
This brings hugely competing demand into the market and allows suppliers to jack up the price.
India, Japan and other Asian countries consume 70% of the world's liquid gas. The two sides held discussion on forging a common front at the December Asia Gas Partnership Summit organized by GAIL. Tripathi has been pursuing the initiative since the two governments agreed to examine the prospect.
The two nations feel liquid gas sold to Asian countries is priced more than what is charged from consumers in Europe and the US
and had in October 2012 agreed to examine ways to mitigate increasing import costs in Asia as well as to maintain stable supplies to the region. Tripathi said GAIL has tied up 6 million tonne a year of liquid gas from the US beginning 2017-2018 and the company is planning to sell the entire volume to the domestic market. The company is looking to trade 1 million tonne a year of the liquid gas from US through its Singapore office.
It has signed a 20-year terminal service agreement with Richmond, Virginia-based Dominion to lift 2.3 million tonne of liquid ags from the Cove Point project. GAIL also has a contract with Cheniere Energy to import 3.5 million tonne a year of the fuel from the Sabine Pass terminal in Louisiana.
Gail, Japan’s Chubu form gas buyers’ club - The Times of India
India, Japan to jointly buy LNG - Economic Times
NEW DELHI, Jan. 27 (UPI) -- India's Oil and Natural Gas Corp. Ltd. said Monday a memorandum of understanding was signed with Japan's Mitsui & Co. for gas work in India and elsewhere.
"The memorandum of understanding provides for cooperation in exploration and production for conventional and unconventional petroleum and natural gas opportunities in India and in third countries," the Indian company stated.
The state-owned ONGC said the deal was signed Friday by senior officials from the two companies.
India and Japan are two of the leading natural gas consumers in the world, with the latter seeking more natural gas to offset the loss of nuclear energy from the 2011 meltdown at the Fukushima Daiichi nuclear power plant.
In early January, the ONGC said it expected to produce as much as 353 million cubic feet of natural gas from offshore reserves by 2018.
http://dalje.com/en-world/indian-japanese-companies-to-explore--oil-and-gas-prospects/497423
