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GAIL

GAIL spuds first exploratory well in Cambay Basin

New Delhi, March 29, 2016: GAIL has started drilling the first Exploratory Well as Operator in its NELP-IX Block CB-ONN-2010/11 in Cambay Basin. The process, technically called “spudding”, started on March 27, 2016 in the well situated in Dugari village in Tarapur Tehsil of Anand District of Gujarat. GAIL (India) Limited is the lead operator of the block with 25 per cent participating interest in it. Other partners in this block are Bharat Petro Resources Limited, Engineers India Limited, Monnet Ispat Energy Ltd. and Bharat Forge Infrastructure Limited.

Drilling of target depth of 2,500 meters of this well is scheduled to be completed in 40 to 45 days followed by testing for another 10 to 15 days. This will target Cambay Shale and Olpad formations. The consortium will drill eight exploratory wells in the initial Exploration Phase as per minimum work commitment of Production Sharing Contract (PSC). While this phase will continue till March 2017, Acquisition, Processing and Interpretation (API) of 2D and 3D Seismic Data have already been completed.

 

Country is staring at a historic opputunity

 

 

GAIL (India) Limited’s Chairman and Managing Director, Mr. BC Tripathi speaks to Fortune India about the great opportunity ahead in the gas industry. Click the image the read the complete interview test

GAIL

Cabinet approves Pradhan Mantri Ujjwala Yojana – Scheme for Providing Free LPG connections to Women from BPL Households 

New Delhi; March 10, 2016

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved Pradhan Mantri Ujjwala Yojana – Scheme for Providing Free LPG connections to Women from BPL Households. Under the scheme, Rs 8000 crore has been earmarked for providing five crore LPG connections to BPL households. The Scheme provides a financial support of Rs 1600 for each LPG connection to the BPL households. The identification of eligible BPL families will be made in consultation with the State Governments and the Union Territories. This Scheme would be implemented over three years, namely, the FY 2016-17, 2017-18 and 2018-19.

This is the first time in the history of the country that the Ministry of Petroleum and Natural Gas would implement a welfare scheme benefitting crores of women belonging to the poorest households.

In our country, the poor have limited access to cooking gas (LPG). The spread of LPG cylinders has been predominantly in the urban and semi-urban areas with the coverage mostly in middle class and affluent households. But there are serious health hazards associated with cooking based on fossil fuels. According to WHO estimates, about 5 lakh deaths in India alone due to unclean cooking fuels. Most of these premature deaths were due to non-communicable diseases such as heart disease, stroke, chronic obstructive pulmonary disease and lung cancer. Indoor air pollution is also responsible for a significant number of acute respiratory illnesses in young children. According to experts, having an open fire in the kitchen is like burning 400 cigarettes an hour.

Providing LPG connections to BPL households will ensure universal coverage of cooking gas in the country. This measure will empower women and protect their health. It will reduce drudgery and the time spent on cooking. It will also provide employment for rural youth in the supply chain of cooking gas.

In this direction, Finance Minister in Budget speech on 29.2.2016 had announced a budgetary provision of Rs. 2000 crore for 2016-17 to provide deposit free LPG connections to 1.5 crore women belonging to the Below Poverty Line (BPL) families. Further, the Budget announced that the Scheme will be continued for two more years to cover 5 crore households.

GAIL

Policy for the Grant of Extension to the Production Sharing Contracts signed by Government awarding small, medium sized and discovered fields to private Joint Ventures

New Delhi; March 10, 2016

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved a policy for grant of extension to the Production Sharing Contracts for small and medium sized discovered fields. This extension policy deals with 28 fields. Of these 27 fields (small and medium sized fields) were awarded as a result of two rounds of bidding during 1991 to 1993, and one (PY-3) was separately put to bidding as discovered field. For many of these fields the recoverable reserves are not likely to be produced within the remaining duration of contract period of these PSCs. Further, in certain fields where additional recovery of hydrocarbons can be obtained only through capital intensive Enhanced Oil Recovery / Improved Oil Recovery (EOR/IOR) Projects, the payback period would extend beyond the current duration of PSC.

The Government share of Profit Petroleum during the extended period of contract shall be 10% higher for both small and medium sized fields, than the share as calculated using the normal PSC provisions in any year during the extended period and hence will vary from year to year based on Investment Multiple (IM) /Post Tax Rate of Return (PTRR). During the extended period of Contract, the royalty and cess shall be payable at prevailing rates (of nomination regime). Royalty and cess will be payable by all the contractors in proportion to their participating interest. This will lead to additional government revenue of Rs. 2890 Crores on account of additional royalty and cess as compared to present concessional regime in these blocks.

Besides these fiscal terms and conditions, the policy brings out detailed guidelines regarding pre-requisites for grant of extension, criterion for evaluation of request, time frame for consideration of request, duration of extension, seat of arbitration etc.

Production Enhancement: 

The policy for PSC extension will lead to production of hydrocarbons beyond the present term of PSC. The reserves which are likely to get monetized during the extended period are of the order of 15.7 MMT of oil and 20.6 MMT of Oil Equivalent of gas. The reserves associated with this field would lead to monetization of reserves worth USD 8.25 Billion (around 53000 Crore). The monetization of these reserves would require an additional investment of USD 3 to 4 Billion.

Employment Generation Potential: 

The extension of these contracts is expected to bring extra investments in the fields and would generate both direct (related to field operations) and indirect employment (related to service industry associated with these fields).

The extension of contracts would also envisage that the present employment levels in these fields are maintained for a longer period of time.

Presently, medium sized fields are employing around 300 personnel for field operations while for small sized fields this would be around 40 to 60 persons.

The investments in these fields may also lead to construction and laying of facilities which would employ several unskilled labourers, over and above the skilled labourers.

Transparency and Minimum Government and Maximum Governance: 

With a view to enable the E&P companies to take investment decisions for exploitation of the remaining reserves this extension policy has been approved so as to grant extensions in a fair and transparent manner.

The policy aims at bringing out clear terms of extension so that the resources can be expeditiously exploited in the interest of energy security of the country and improving the investment climate.

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Hydrocarbon Exploration and Licensing Policy (HELP) 

New Delhi; March 10, 2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the Hydrocarbon Exploration and Licensing Policy (HELP).

Four main facets of this policy are:

  1. uniform license for exploration and production of all forms of hydrocarbon,
  2. an open acreage policy,

iii.           easy to administer revenue sharing model and

  1. marketing and pricing freedom for the crude oil and natural gas produced.

 

The decision will enhance domestic oil & gas production, bring substantial investment in the sector and generate sizable employment. The policy is also aimed at enhancing transparency and reducing administrative discretion.

The uniform licence will enable the contractor to explore conventional as well as unconventional oil and gas resources including CBM, shale gas/oil, tight gas and gas hydrates under a single license.  The concept ofOpen Acreage Policy will enable E&P companies choose the blocks from the designated area.

Present fiscal system of production sharing based on Investment Multiple and cost recovery /production linked payment will be replaced by a easy to administer revenue sharing model. The earlier contracts were based on the concept of profit sharing where profits are shared between Government and the contractor after recovery of cost. Under the profit sharing methodology, it became necessary for the Government to scrutinize cost details of private participants and this led to many delays and disputes. Under the new regime, the Government will not be concerned with the cost incurred and will receive a share of the gross revenue from the sale of oil, gas etc. This is in tune with Government’s policy of “Ease of Doing Business”.

Recognising the higher risks and costs involved in exploration and production from offshore areas, lower royalty rates for such areas have been provided as compared to NELP royalty rates to encourage exploration and production.  A graded system of royalty rates have been introduced, in which royalty rates decreases from shallow water to deepwater and ultra-deep water. At the same time, royalty rate for onland areas have been kept intact so that revenues to the state governments are not affected. On the lines of NELP, cess and import duty will not be applicable on blocks awarded under the new policy.  This policy also provides formarketing freedom for crude oil and natural gas produced from these blocks.  This is in tune with Government’s policy of “Minimum Government –Maximum Governance

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Decision on Marketing including Pricing freedom for the gas to be produced from Discoveries in High Pressure-High Temperature, Deepwater and Ultra Deepwater Areas

New Delhi; March 10, 2016

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approveda proposal to grant marketing including pricing freedom for the gas produced from High Pressure High Temperature, Deepwater and Ultra Deepwater areas. The marketing freedom so granted would be capped by a ceiling price arrived at on the basis of landed price of alternative fuels.

The policy guidelines would be applicable to future discoveries as well as existing discoveries which are yet to commence commercial production as on 1.1.2016. However, in case of existing discoveries which are yet to commence commercial production as on 1.1.2016, if there is pending arbitration or litigation filed by the contractors directly pertaining to gas pricing covering such fields, this policy guideline shall be made applicable only on the conclusion/ withdrawal of such litigation/ arbitration and the attendant legal proceedings. All gas fields currently under production will continue to be governed by the pricing regime which is currently applicable to them.

The ceiling price in US $ per mmbtu (GCV) shall be the, lowest of the (i) Fuel oil import landed price (ii) Weighted average import landed price of substitute fuels (0.3 x price of coal + 0.4 x price of fuel oil + 0.3 x price of naphtha) and (iii) LNG import landed price, whichever is lower.

The landed price-based ceiling will be calculated once in six months and applied prospectively for the next six months. The price data used for calculation of ceiling price in US $ per mmbtu (GCV) shall be the trailing four quarters data with one quarter lag. Director General of Petroleum Planning and Analysis Cell (DG, PPAC) under the Ministry of Petroleum and Natural Gas will notify the periodic revision of gas price ceiling under these guidelines.

Production Enhancement: 

The decision is expected to improve the viability of some of the discoveries already made in such areas and also would lead to monetization of future discoveries as well. The reserves which are expected to get monetized are of the order of 6.75 tcf or 190 BCM or around 35 mmscmd considering a production profile of 15 years. The associated reserves are valued at 28.35 Billion USD (1,80,000 Crore) The country’s present gas production is around 90 mmscmd. Besides, these there are around 10 discoveries which have been notified and whose potential is yet to be established.


 

 

Employment Generation: 

The decision is expected to result into monetization of the 28 discoveries mentioned above which can result into substantial investment by the contractors.

There would be substantial employment generated during the development phase of these discoveries and a part of it would continue during the production.

ONGC has estimated that in the development of discoveries in the block KG-DWN-98/2, there would be deployment of 3850 direct skilled labours. Besides, these there would be around 20,000 persons required during the construction phase. GSPC presently in the block KG-OSN-2001/3 is deploying around 690 personnel in the block.

Transparency and Minimum Government and Maximum Governance:

Government will not interfere in the price fixation for every block covered under the policy.

Provision of ceiling to balance the requirements of consuming sectors

Incentivize upstream investment and not getting into unnecessary details.

What The Fact!!

Industrial usage of Natural gas curbs down the emission of carbon dioxide by 45%!

 

 

COP21 What and Why

What and Why of COP21

Annual Conference of Parties (COP) 21 or the 2015 Paris Climate conference is a collective political response of the world against the growing pollution and climatic changes. The basic agenda of the convention is to create and promote alternate energy solutions and a sustainable future for the coming generations.

This time the convention is being attended by decision makers from over 43 countries, to negotiate on the solution to keep the global warming below 2°C. Event will also have over 80 speakers including members of the ministry and influential business personalities.
Our honorable Prime Minister also spoke on the occasion and discussed about the need of innovation for development of conventional energy. He also spoke about willingness to reduce the emissions by 33 – 35% of 2005 levels. We hope and pledge to work in the same direction to create a cleaner and greener future.

GAIL BLOG

Awareness Campaigning by GAIL to strengthen the Security & Safety of JLPL Pipeline

गेल, समाख्याली द्वारा जेएलपीएल की सुरक्षा एवं संरक्षा को सुदृढ़  करने के लिए जागरूकता अभियान

पाइपलाइन संरक्षा एवं सुरक्षा – एक जागरूक प्रयास

 

गेल, समाख्याली द्वारा समय-समय पर स्थानीय कालेज / स्कूलों के विद्यार्थियों एवं ग्रामीणों के लिए पाइपलाइन सुरक्षा एवं संरक्षा जागरूकता अभियान आयोजित किए जाते रहतें हैं, इसी अभियान को जारी रखते हुए जेएलपीएल किलोमीटर नं. 159 के नजदीक एवं एस.वी.-10 से आई.पी.एस.-समाख्याली के मध्य, ग्राम जूना-कटारिया तालुका भचाऊ जिला कच्छ (गुजरात) में दिनांक 05.11.2015 को जागरूकता कार्यक्रम आयोजित किया गया ।

 

कार्यक्रम में 03 स्कूलों के लगभग 200 छात्र-छात्राएँ, 20 अध्यापक, ग्राम सरपंच व उप सरपंच सहित लगभग 70-80 ग्रामीण जन और लाकड़िया पुलिस स्टेशन से 04 पुलिसकर्मियों ने उत्साहपूर्वक भाग लिया, जिनको टीम-समाख्याली ने श्री सुशील कुमार, वरिष्ठ प्रबंधक (यांत्रिकी) के मार्गदर्शन में गेल के बारे में, पेट्रोलियम पाइपलाइनों का महत्व, सुरक्षा एवं संरक्षा प्रणाली, आर.ओ.यू. में क्या करें और क्या नहीं करें तथा गेल के टोल फ्री नं. के बारे में बताया ।

 

जुलाई 2015, के अंतिम सप्ताह में कच्छ क्षेत्र में भारी बरसात हुई थी उस समय जूना-कटारिया के श्री सामद भाई ने एस.वी.-10 के सुरक्षा गार्ड को सूचित किया था कि गेल की पाइपलाइन बाम्बूड़ी नदी में किलोमीटर नं. 159 के पास कटाव के कारण दिखाई दे रही है, इस सूचना पर टीम-समाख्याली ने वहाँ जाकर देखा तो सूचना सही पाई गई अत: आज श्री सामद भाई को पुरस्कार स्वरूप रू. 500/- नगद प्रदान किए गए इसके अलावा जिन बच्चों को पाइपलाइन सुरक्षा के बारे में ज्यादा जानकारी थी उनके प्रोत्साहन के लिए भी पुरस्कार श्री सुशील कुमार द्वारा प्रदान किए गए ।

 

कार्यक्रम के दौरान सभी को पाइपलाइन की सुरक्षा तथा संरक्षा के लिए आवश्यक निर्देशों के कलेंडर, एक निवेदन, डायरी और पैन आदि वितरित किए गए । इस प्रकार आवश्यक जानकारी हेतु कार्यक्रम आयोजित किए जाने के लिए स्कूल प्राचार्या तथा ग्रामीणों ने गेल, समाख्याली को धन्यवाद दिया ।

 

 

 

 

Awareness Campaigning by GAIL, Samakhiali to strengthen the Security & Safety of JLPL

Pipeline Safety and Security – A Conscious Effort

GAIL, Samakhiali is organizing the Security, Safety Awareness Campaigns for local college / school student’s and villagers, under which efforts are taken to bring awareness about Pipeline Security and Safety, In continuation with on-going campaign an awareness program was conducted on 05.11.2015 near JLPL KM No. 159 and in between SV-10 & IPS-Samakhiali, at Village Juna-Kataria, Tehsil Bhachau, District Kutch (Gujarat).

 

The program was attended with great enthusiasm by the approx. 200 students and 20 teachers of 03 Schools, Sarpanch, Up-Sarpanch, 70-80 Villagers and 04 Policemen of Lakadia Police Station. Knowledge about GAIL, importance of Petroleum Pipelines, Security and Safety systems, what to do and do not do in ROU and also shared the information’s about GAIL’s Toll Free numbers by Team-Samakhiali under the guidance of Sh. Sushil Kumar, Sr. Manager (Mech).

 

In the last week of July’2015 month, heavy rain occurred in KUTCH area, at that time, Sh. Samad Bhai of Juna Kataria village informed to security guard of SV-10 about the exposure/washout of GAIL’s pipeline near KM. 159 in Bambudi river. As per information , Team Samakhiali visited the location and information was found to be correct. Hence, a token reward of Rs. 500/- given to Sh. Samad Bhai by Sh. Sushil Kumar. In addition, prizes distributed among students having good knowledge of Pipeline security for enhancing their motivation.

 

Before ending the program, Calendars, Ek Nivedan, Diary & Pen having important instructions regarding pipeline safety and security were distributed. Vote of thanks was given by Sh. D.L. Nandurwar, Vice Principal (ITI) to GAIL, Samakhiali for organizing awareness program in Kidianagar Village.

 

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Climate Change Awareness Week 25th October- 1st November 2015

GAIL Banner-3

 

Future of our planet is in danger and it’s time we step up to act together and combat climate change. This Climate Change Awareness Week (25th -1st November) help #GAILCombatClimateChanges

Share with us your personal & GAIL (India) Limited’s efforts in this quest for saving earth. You can share case studies of initiatives taken by you to combat climate change. Also tell us how GAIL is combating climate changes through its initiatives in areas of energy, society awareness, waste management and tree plantation etc

Conversation leads to ideas & action so share your story with us herein the comments section below and be a part of the larger solution.

* Check out Sustainability Report 2014-15 for reference and knowing more.

 

 

GAIL_Sustainability Report

GAIL releases fifth Sustainability Report

Becomes first PSU to avail Content Index certified by GRI, Amsterdam
“Fostering Responsible Growth” theme of the report

New Delhi, 14th October, 2015: GAIL (India) Limited has released the Company’s Sustainability Report for the year 2014-15, becoming the first Public Sector Undertaking of the country to avail Content Index certified by Global Reporting Initiative (GRI), Amsterdam.
The report, on the theme ‘Fostering Responsible Growth’, was released here yesterday by Shri B C Tripathi, Chairman and Managing Director, in the presence of Shri M. Ravindran, Director (HR), Dr Ashutosh Karnatak, Director (Projects), Shri Subir Purkayastha, Director (Finance), Shri Ashutosh Jindal, Director, Smt. Anuradha Sharma Chagti, Director and other senior officials of the company.
The report, the fifth released by GAIL, marks the transition from GRI G3.1 to GRI G4 guidelines and is in line with GRI G4 Guidelines ‘in-accordance’ option core.
Speaking on the occasion, Shri Tripathi said “We believe in growth that is sustainable and inclusive while remaining deeply committed to ensuring the trust of our stakeholders.” He also noted that GAIL has been acknowledged among CDP India Leaders 2014 Climate Disclosure Leadership Index (CDLI) and is the only company in Utilities category among the top 22 India leaders.
GAIL has developed ‘Sustainability Aspirations 2020’, which are self-driven targets focused towards the reduction of Green House Gas (GHG) emissions, water consumption and specific energy intensity.
This year’s Sustainability Report is a materiality centric report and contains dedicated sections for each of the stakeholders. These material issues have been identified after a thorough materiality assessment and stakeholder engagement exercise which was conducted at 10 locations of GAIL amongst different stakeholder groups.
All Sustainability Reports of GAIL have been assured by external third party. Continuing the practice, this year’s Sustainability Report has been assured by DNVGL. This is a Type 2 Moderate level assured report based on AA1000AS (2008) standard. Assurance process includes data verification at different sites of GAIL that will continue to help GAIL improve its processes and data management mechanisms.
GAIL’s Corporate Sustainability Reports are available on the Company’s website (www. gailonline.com). The report for 2014-15 was web hosted on the day GAIL AGM was held.
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Inauguration of first phase construction of Jagdishpur – Haldia gas pipeline phase 1 by PM Shri Narendra Modi

Inclusive development is the mantra that resonates through the country today. With the new vision of gas-based economy of central government, Eastern India is all set to get a lion’s share in the country’s growth story – As today, 25th July 2015 Prime-Minister Sri Narendra Modi inaugurates the first phase construction of the Jagdishpur Haldia pipeline

Under the leadership of Modiji, rice bowl of India will now experience a new approach towards development. Bihar now gets connected to the natural gas pipeline network of India. Urja Ganga, the Jagdishpur – Haldia gas pipeline is going to be a change maker. This 2050KM long energy highway will bring the goodness of environmental friendly source of energy to Bihar.

Government of India has resolved to invest over Rs.2400 Crore in Bihar alone for Urja Ganga. The pipeline would pass through 10 districts and benefit over 40% of the population of the state. This gas network will support major industries in the area specially the fertilizer sector. Barauni fertilizer plant will be revived to its full glory. More fertilizer plants are being planned assuring a new green revolution. This would benefit every section of society. Along with supporting industries, the piped gas will also touch each citizen in more than one way. The piped cooking gas would reach your kitchen, compressed gas will propel the vehicles and produce power needed for industrial and domestic needs.

Painting hope through the hearts of people, the Urja Ganga shall flow through pipelines. Bringing smiles and happiness to your doorsteps is the reality we see in near future.