Friday, July 30, 2010

Wet and Windy it was!!

The forecast was correct!  The weather actually seemed relatively fine as we arrived at Capel Curig late on a Friday evening for a boys weekend.   The most eventful bit of the journey was realising Phillip had mistakenly (I hope) bought two crates of zero-alcohol Becks beer for the weekend, which were duly left at Telford Services.

Phillip also unpacked his tent to find no pegs so we shared what pegs we had between us, hoping the winds would stay away, though a fairly calm night was followed by a blustery and overcast morning.  The guys wanted to 'do' Snowdon - I did explain that once you'd joined the tourist trek up there they'd realise they would be unlikely to return very often - but Snowdon it was to be.  We were too late for a car-parking space at Pen-y-pass so back-tracked down the road and paid the princely sum of £4 for road-side parking and headed back up towards Pen-y-pass.  It was not a good start as my ankle was immediately hurting, so we stopped at Pen-y-pass to add strapping to my ankle and for Phillip to fit his knee support.  It wasn't looking good as we were overtaken by a woman in stilleto's and her 5 year old daughter!

We headed up the Pyg Track so as to give us the option of Crib Goch.   I was a little wary of taking responsibility even if conditions were ideal -  Carl admits to being scared of heights and Phillip has a dodgy knee - not forgetting my dodgy ankle.  As it was the weather put paid to the option, with wind and rain increasing Crig Goch seemed an unwelcoming proposition.  The trudge up the Pyg path was as unremarkable as the view from the top!



My ankle was holding up well but Phillip's knee was giving him serious grief and he wolfed down more Ibuprufen.  Dropping down the south-ridge we dropped beneath the cloud and the weather brightened a little. The climb up Y Lliwedd was fun, all the more so for seeing Carl's face when he suddenly realised how near he was to the edge of a cliff!!   As we descended to Llyn Lladar we found the shredded remains of a tent, probably abandoned during the 80mph winds of a few nights earlier.  Phillip quickly noticed some tent pegs that were strewn around and which would come in handy later!

That evening the wind and the rain really picked up and Phillip spend the night with the tent on his head and woke up in half an inch of water.   The photo below shows the effect of the wind - he really ought to have guyed out those poles properly!! It's a good job we found the extra pegs else he would likely have been blown to Betws-y-coed!  I'm pleased to report the Laser Comp stood up well to the battering, I felt quite cosy hunkered down inside, though it was a little noisy at times - though I think Carl was safest in my trusty old North Face Tadpole.


The atrocious weather (and geriatric knee problems) put paid to any thoughts of any more mountains on Sunday so we decamped to the Pinnacle Cafe for a well-needed, if not deserved, fry-up.

A quick trip, good fun and I think they enjoyed it - though they haven't spoken to me since.  There was even mention of them being interested in a wild-camp trip, though that was in the pub so may well have been alcohol-fuelled.  Time will tell!

Wednesday, July 28, 2010

RIL to drill two more wells in KG-D6 block

Reliance Industries (RIL) is set to drill two more wells in the KG-D6 block that may boost gas production from the field where output has stagnated since April at about 60 million metric standard cubic meters per day (mmscmd). 

“The government has approved RIL’s proposal to drill two more wells as part of D1 and D3 field-development plan,” an official in the Directorate General of Hydrocarbon (DGH) said. 

The directorate, a technical arm of the oil ministry, is the custodian of the country’s oil and gas assets. 
Experts in the oil ministry said that the two wells (A21 and B16) may help RIL increase gas production from the field and sustain the higher production. 

“RIL has told us that the current (gas) production from the field is unlikely to increase beyond 60 mmscmd in the near future. It is making efforts to achieve the peak production of 80 mmscmd,” an official in the ministry said. 

“We do not wish to comment (on this subject),” RIL spokesman said in an email reply. The company’s current production of around 60 mmscmd comes from 16 wells of D1 and D3 and 5 wells of D26 fields, RIL said in a press statement issued on Tuesday. The D26 field is located next to D1 and D3 field in the same KG-D6 block. 

RIL has been producing crude oil and gas from D26 (also known as MA) field since September 2008. But major gas field, D1 and D3 commenced commercial production on April 2, 2009. 

The company managed to ramp up gas production from KG-D6 to 60 mmscmd in just nine months, but output is stuck at that level. RIL is, however, hopeful of achieving the peak production of 80 mmscmd by 2012, an oil ministry official said. 

The government had awarded the KG-D6 block (KG-DWN-98/3) to a consortium of RIL and Niko in 2000, under the first round of auction of New Exploration Licensing Policy (Nelp-I). In 2002, the consortium made the largest gas discovery of the time in the block. RIL holds 90% stake in the asset, while balance 10% is held by Niko.

Source: Economic Times
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Monday, July 26, 2010

ONGC plans to invest $5 bn to develop gas fields to boost output by 60 pc

Oil & Natural Gas Corporation plans to spend $5 billion to develop gas fields to boost output by almost 60% in six years, two people with direct knowledge of the matter said. 

The New Delhi-based explorer sought permission from the oil and gas regulator on July 16 to invest the funds in nine natural gas discoveries off India’s east coast to produce 35 million cubic metres a day by 2016, one person said, declining to be identified before the directorate general of hydrocarbons approves the plan. 

The amount is triple ONGC’s planned spending on its largest oil field and follows the government’s decision in May to double the price at which the explorer sells gas. India is ramping up gas output at the fastest pace in the world, according to BP’s 2010 Statistical Review of World Energy, after companies including Reliance Industries discovered new fields. “ONGC has been discovering new reserves for a while but the concern is being able to convert them to production,” said Rohit Ahuja, a Mumbai-based analyst with Centrum Broking in Mumbai. “The company is looking to address this with the very good discoveries they have in the east coast.” 

The producer of almost 25% of the crude oil used by India is starting new fields at home as output declined at aging areas off the west coast. Reserves added in fields operated by ONGC in the year ended March was the equivalent of 82.98 million metric tonne, the highest in the past 20 years, the explorer said April 26.

Source: Economic Times
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Sunday, July 25, 2010

India plans to launch shale gas auction in august 2011

The identification of the gas producing areas will be done by early next year

Major Indian energy companies like Reliance Industries Ltd (RIL), which have so far been scouting overseas for shale gas resources, may get a chance to bid for domestic shale gas blocks in about a year. The country is looking to launch the first-ever auction of shale gas areas in August 2011.

The identification of the gas producing areas will be done by early next year. This will be followed by carving out suitable blocks. Jitin Prasada, minister of state for petroleum and natural gas, had recently called a meeting of officials in the Directorate General of Hydrocarbons (DGH) and his ministry to discuss the future potential of shale gas. “The DGH has accordingly prepared a roadmap for the shale gas auction,” said a ministry official.
This will be the second unconventional natural gas source in India after coal bed methane. Several basins — Cambay (in Gujarat), Assam-Arakan (in the North-East) and Gondwana (in central India) are known to hold shale gas resources.

In March this year, the ONGC board approved a pilot project for exploration of shale gas in the Damodar Basin at an expenditure of Rs 128 crore.

DGH and the ministry would study worldwide fiscal and contractual regimes before framing a shale gas policy. It is being worked out and is likely to be in place by the end of the current financial year.

The Petroleum and Natural Gas Rules, which govern the oil and gas exploration activity, will be amended prior to the floating of the first round of auction.

MILKING THE ROCKS

# Companies like Reliance Industries Ltd have so far has been scouting overseas for shale gas resources

# The identification of the gas producing areas will be done by early next year. This will be followed by carving out suitable blocks

# Shale will be the second unconventional natural gas source in India after coal-bed methane

# Basins like Cambay (Gujarat), Assam-Arakan (the Northeast) and Gondwana (Central India) are known to hold shale gas resources

# A policy is being worked out and is likely to be in place by the end of this financial year

# The Petroleum and Natural Gas Rules will be amended before floating the first round of shale gas auction


India is also likely to sign a cooperation agreement with the US Geological Survey later this year for knowledge sharing in the area of shale gas. The US has successfully exploited its shale gas reserves, which currently account for 20 per cent of the country’s gas production. An Indian delegation was also expected to visit shale gas sites in the US sometime this year, the ministry official said. Countries like Canada and China are also increasingly exploiting their shale gas reserves.

Hydrocarbon found in the form of shale gas has over the past few years transformed the energy scenario for the world’s biggest energy consumer, the US. Indian energy companies have shown interest in developing this resource. While RIL recently acquired a 40 per cent stake in Atlas Energy’s Marcellus Shale acreage in the US, the Y K Modi-promoted Great Eastern Energy Corporation Ltd is keen to take part in the shale business.

Companies worldwide are increasingly looking at investing in shale gas, which they consider a lucrative business.

Source: Business Standard
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Wednesday, July 21, 2010

ONGC: Expressed Interest to Buy BP Stake in Vietnam Gas Block

Oil & Natural Gas Corp. has expressed its interest to Vietnam Oil and Gas Group, or PetroVietnam, to buy BP PLC's stake in a gas block in Vietnam, the chairman of India's state-run oil and gas explorer said Thursday.

"Yesterday we have indicated our willingness to PetroVietnam to buy BP's stake. Let us see now," R.S. Sharma told Dow Jones Newswires.

BP holds a 35% stake in the block and is also the operator. ONGC owns 45%, while PetroVietnam has the remaining 20%.

BP announced Tuesday that it has agreed to sell assets in the U.S., Canada and Egypt to U.S. oil company Apache Corp. for $7 billion. BP also said it plans to sell gas fields and a pipeline in Vietnam, as well as exploration licenses in Pakistan to help pay for damages related to the Gulf of Mexico oil spill.

Source : online.wsj.com
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Monday, July 19, 2010

Oil ministry seeks Rs 13,500 cr for OMCs

Finance ministry contests figure.

The ministry of petroleum and natural gas has sought Rs 13,500-crore subsidy from the government to compensate the revenue loss incurred by the three oil marketing companies during the first quarter of this financial year. The ministry of finance, though, is not likely to grant the amount in the forthcoming first supplementary to the budget.

A senior finance ministry official said parliamentary approval would be sought only for Rs 14,000 crore subsidy that was due for payment to Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation Ltd for 2009-10.

“There will not be any provision for the current year in the supplementary, which will be presented in the monsoon session of Parliament, starting July 26. Subsidy for the current year would be given only after the sharing mechanism is decided. The two ministries have held several rounds of meetings but a final view will be taken by an empowered group of ministers,” said the official.

The Budget 2010-11 had provided only Rs 3,108 crore for petroleum subsidy for the current year but the ministry of finance would now need to make a provision of Rs 14,000 crore which the three companies have already accounted as accruals in their accounts for 2009-10.

The government has asked upstream oil and gas producing companies – ONGC, GAIL India and Oil India Ltd – to shell out Rs 6,500 crore as part of a subsidy-sharing mechanism for the April-June quarter. It will partially make up the revenue loss incurred by the marketing companies for selling auto and cooking fuels below international rates.

The underrecoveries have been calculated assuming an average crude oil price of $75 a barrel for the whole year. Speaking to Business Standard, petroleum secretary S Sundareshan said, “Underrecoveries came to Rs 20,000 crore, of which Rs 6,500 crore comes from the upstream companies. We have written to the ministry of finance to contribute the rest. Discussions will be held to arrive at the final figures.”

On what was the basis of the calculation of underrecoveries, the secretary said they were calculated on the trade parity formula devised by the Rangarajan committee.

Source: Business Standard
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Gas EGoM likely to okay supply for Lanco, GMR, Sravanthi power units

When the empowered group of ministers (EGoM) meets for gas allocation on July 27, it is likely to commit supply for power plants coming up in 2011-12.

Among those likely to get allocation are Lanco Infratech, GMR and the South India-based Sravanthi group. It would be a tough call for the EGoM, though, since the government has received requests totalling over 350 million standard cubic metres a day (mscmd).

Lanco is likely to get an allocation for the 742 Mw third phase of its Kondapalli power plant, near Vijayawada. The Gurgaon-based company has two operational gas-based power plants, at Kondapalli and at Karuppur in Tamil Nadu. Currently, it has units of 368 Mw and 366 Mw at at Kondapalli. The Karuppur unit is a small one, with 120 Mw capacity.
Officials said GMR was also seeking natural gas for 768 Mw capacity, while Sravanthi plans to set up a 228 Mw plant.

The Anil Ambani group has sought 28 mscmd for four gas-based power projects, including Dadri in Uttar Pradesh, Shahapur in Maharashtra's Raigarh district, Jambusar in Gujarat’s Bharuch and Samalkot in Andhra Pradesh.

The group that had fought a bitter battle with Mukesh Ambani-owned Reliance Industries Ltd for gas for its Dadri power project seems to have diluted the demand for this one. “Since Dadri power plant is under litigation in the Supreme Court over land acquisition, the request for Dadri is subject to case being resolved,” said an executive close to the development.

A senior official said the Ministry of Petroleum and Natural Gas would be briefing the EGoM on the production profile of the Reliance IndustriesD6 field. Following the scheduling of the meeting, the ministry had asked the directorate general of hydrocarbons to send a fresh estimate of D6 production, currently around 60 mscmd of gas. This was to be raised to 80 mscmd and remain at that level for eight years. The government has already made firm allocations for about 62 mscmd and a fall-back (temporary) allocation for another 30 mscmd.

Since the production equals the firm allocations, the new allocations might be made from the fall-back quantities. The meeting of the group would be the first one after the Supreme Court upheld the union government’s sovereign right over natural gas and made the Ambani brothers renegotiate a gas deal in compliance with the government policy.

Source: Business Standard
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Reliance Industries in talks to buy stake in Quicksilver

Energy major Reliance Industries is in talks with Texas-based Quicksilver Resources , including for a possible buyout of the US firm that develops shale gas and coal-bed methane, a newspaper reported on Monday. 

The talks also include buying a part stake or partnering Quicksilver for one of its major projects called the Horn River Basin assets in British Columbia, the newspaper said, citing unidentified sources familiar with the development. 

Quicksilver, which is estimated to have sales of $900 million this year, currently has two large shale basins with proven reserves of around 2.4 trillion cubic feet, the paper said. 

Source: Economic Times
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Friday, July 16, 2010

IOC to acquire oilfields in Africa in $1-bn push

Indian Oil Corp, the country’s second-biggest refiner, plans to acquire oilfields in Africa as part of a $1 billion overseas investment plan, its chairman said.

“Africa is top of our list to buy assets because it is near India and has good quality crude,” Brij Mohan Bansal said in an interview at his office in New Delhi today. “We are planning retail outlets in Indonesia.”

State-run Indian Oil’s renewed plans to expand overseas came after the government freed gasoline prices from its control last month and said it will eventually allow refiners to set diesel rates, helping to increase cash flow. The refiner has set aside $1 billion for acquisitions overseas, Bansal reiterated.

“Africa offers many grades of crude and gives refiners security of supplies to have fields there,” said Vinay Nair, a Mumbai-based analyst with Khandwala Securities Ltd. “They will, however, still need financial support from the government to help make profits.”

The refiner delayed crude-processing and pipeline projects overseas, including Nigeria and Turkey, because of reduced cash flow after selling fuels below cost, Bansal said in July last year. Indian Oil and Turkish builder Calik Holding had planned to spend $4.9 billion to build a 300,000 barrel-a-day refinery in Ceyhan on the Mediterranean coast.

The companies, with Eni SpA, Europe’s fourth-largest oil company, had also planned to spend $2 billion on a pipeline from Samsun on Turkey’s Black Sea coast to Ceyhan to transport as much as 1.5 million tonnes of Central Asian crude oil a day.

Delay in plans 
The shares have increased 23 per cent in Mumbai trading this year, compared with the three per cent gain in the benchmark Sensitive Index of the Bombay Stock Exchange. The stock declined 3.8 per cent to Rs 374.45 today.

Indian Oil, which owns stakes in ventures in Africa and West Asia, had plans to invest in refinery and pipeline projects in Nigeria, former company spokesman M Kali Krishna said in October 2006.

Source: Business Standard
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Wet and Windy!

Looks like its going to be a rather wet and blustery weekend in Snowdonia, with 84 mph winds reported last night.  I'm taking a couple of mountain newbies up for the weekend - hope I don't put them off for life.  I guess Crib Goch will be off the agenda!

Tuesday, July 13, 2010

New JetBoil....M'mmm

Just noticed on Outdoor Magic the new Jetboil Sol stoves due for 2011.  While I get the concept I never quite subscribed to the Jetboil philosophy and have thus stuck to my trusty MSR Titan kettle and Optimus Crux Lite combo.  The Jetboil seemed to be too big, (top) heavy and in-flexible, though I guess it does exactly what it was intended for, i.e. boil water quickly, efficiently and conveniently.  

With Primus bringing out a similar stove Jetboil have had to respond and their new 2011 version may just make me re-think.  With a significant weight reduction from current 425g to 300g, or 260g for the titanium cup version the weight argument doesn't hold much, well,...weight.   In the main I use my stove only for boiling water (bar the occassional fried bacon if I'm on a camp-site but then I'd tend to use my MSR Whisperlite stove with a frying pan). With a boil time of 2 mins for 0.5 litre of water and a claimed 12 litre boil per 100g canister it's definitely quick and efficient.  And the clincher, of course, is the new orange and grey colour scheme!!


No prices announced yet but there's also a smaller (0.8l) and cheaper version called the Jetboil Zip at 333g.  Spring 2011 seems so far away......!

PS. I've realised that researching gadgets is far more enjoyable than looking for pants.  I'd been searching for some decent wicking underwear  - a particularly inspiring subject - when I was distracted by the Jetboil article.

Monday, July 12, 2010

Diesel subsidy may be set at Rs 1.49/litre

Diesel price decontrol may only be partial, unlike in the case of free pricing of petrol, as the government may continue to provide a fixed subsidy of Rs 1.49 per litre irrespective of the rise or fall in its market-linked retail price. 

The government freed up prices of petrol and diesel on June 25, but capped the increase in the case of diesel to Rs 2 per litre against a required hike of Rs 3.49 a litre. 

There is no clarity within the government about the balance Rs 1.49-a-litre hike needed to lift diesel to market rates. 

“What this means is that on diesel we will give a (virtually) fixed per-litre subsidy of Rs 1.49,” a finance ministry note circulated to top decisionmakers in the country said. 

Irrespective of variations in the pump price of diesel, the note says, consumers will continue to get the Rs 1.49-a-litre subsidy cushion. 

In its June 25 decision, an empowered group of ministers headed by finance minister Pranab Mukherjee fully deregulated petrol and diesel prices. While the price of petrol immediately rose to what it would cost in a free market — by Rs 3.5 a litre in Delhi — in the case of diesel the EGoM pegged the increase at Rs 2 a litre, Rs 1.49 per litre short of what the free market price would have been. 

While the assumption was that diesel prices would gradually rise to a free-market price, the government does not seem to be so clear. 

“There is no clarity who will bear this burden (shortfall of Rs 1.49 a litre),” a senior executive of a public sector oil marketing company said. 

The note pointed at the ambiguity in the EGoM decision. 

“I stressed this (fixed subsidy on diesel) at the EGoM and there was some discussion on it. But in various statements coming out subsequently this got muffled. So observers are not clear if diesel has been decontrolled or not,” a senior official said in the note. 

The oil ministry seems to think the EGoM freed pricing of both petrol and diesel. “The EGoM has deregulated both petrol and diesel prices on June 25 and it has not proposed any fixed subsidy on it,” an official in the ministry said. 

But he could not say why the government restricted retail price increase in diesel to only Rs 2 a litre while the then market price would have required an increase of Rs 3.49 a litre. 

The government’s statement issued on June 25 did say that “the pricing of petrol and diesel both at the refinery gate and the retail level will be market-determined”. 

But it was vague on moving towards a market-determined diesel price. “... in respect of diesel, the initial increase in retail selling price of diesel will be Rs 2 per litre ... Further increases will be made by the public sector oil marketing companies in consultation with the ministry of petroleum & natural gas,” it had said.

Source: Economic Times
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Thursday, July 8, 2010

Shale: A home remedy for India’s gas problem

Taking a cue from the US, India is seriously looking at the unconventional shale gas, which, if successful, could mean a substantial improvement in the country’s energy outlook within the next few years. 

The government is gearing up with policy guidelines for shale gas exploitation and auction shale gas blocks within the next two years, even as various E&P players are moving ahead with their pilot projects. ONGC has tied up with Schlumberger for a pilot project in Damodar valley at a capital cost of Rs 128 crore. Similarly, Oil India has initiated a project in Assam, while Reliance Industries is active in Cambay basin. 

However, the project timelines are not short. ONGC, which has been researching shale gas in India since 2006, is expected to spend the next two years gathering geological data in its Damodar valley field, followed by drilling and resource estimation by 2013. In 2014 the company will be able to assess the feasibility and consider production from this pilot project. 

While state-owned players are trying to source shale gas technologies from foreign players, Reliance Industries has chosen to learn the trade by working on live projects. RIL has agreed to invest over $3.1 billion in two separate deals over the next four years to garner 3,08,000 acres of shale in the US. 

Shale is a common rock found across the world and the petroleum explorers are well aware of hydrocarbon deposits trapped in it for a long time. But its exploitation was considered impossible due to the solid nature of shale that prevented hydrocarbons to flow up. With development of newer drilling techniques in the past few years, it has become possible to tap this energy reserve. 

The US is today witnessing excessive availability of natural gas, which is depressing its imports, increasing its inventories and pressurising prices. 

A number of Indian sedimentary basins, including the hydrocarbon bearing ones — Cambay, Assam and Damodar — are bestowed with thick sequences of shale. Though not all shales are good candidates for shale gas exploration, substantial potential for gas from shale is expected from these basins. 

ONGC informed that parameters like productive shale volumes, gas content, thermal maturity, type and amount of organic matter, lithology & extent, mineralogy and saturation, need to be assessed before shale formation can be considered promising. 

While learning the technology to exploit these shale gas reserves is a key hurdle, lack of transporting and storage infrastructure for natural gas and policy framework are other impediments. The entire shale gas exploitation process also carries a number of environmental risks which need to be addressed for sustainable growth. 

Although it is too early, India’s ability to successfully exploit shale gas could go a long way in supporting its future growth. A home-grown remedy to domestic energy needs could indeed be the key in sustaining economic growth and strengthen India’s position in global economics.

Source: Economic Times
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Sunday, July 4, 2010

Snowdon Horseshoe...almost!

A hastily packed few bags chucked in the boot of the car saw me leave London at 5pm on a Friday evening.   I feared the worst - either a terrible journey or I've forgotten something crucial like my sleeping bag.  Surprisingly the motorways were clear and I arrived at Dolgam campsite in Capel Curig at 9.15pm, just as it was getting dark and it had started to rain.  I'd decided I wanted to get some height and the Snowdon Horsehoe seemed a good bet.  I hadn't been up Snowdon for a few years - the summer crowds put me off but I was tempted by Crib Goch.   I was also interested in gauging my (poor) fitness levels, having been reading up on Alpine Courses and Mont Blanc.

I awoke to a sunny, but rather blustery morning, which immediately gave me concern about my first traverse of Crib Goch, the guide-book words about avoiding when windy sitting in the back of my mind.  Parking near the Pen-y-Gwyrd hotel I hot-footed up to the Pen-y-Pass hostel and immediately made for the Pyg Track which would give me the option of heading up the east face of Crib Goch, or continuing along the Pyg track.  At Bwylch y Moch it was decision time but it was still rather blustery and I expected it would be worsen with altitude, as evidenced by the speed of the clouds whizzing overhead. Frustratingly I decided that today wouldn't be the best time to test my nerves on the knife-edge, so I reluctantly continued up the Pyg Track.

Llyn Lladar and Y Lliwedd from Bwylch y Moch

The route was full of the usual summer mix of families, large groups and fancy-dress parties.  As I reached the zig-zags it started to rain a little and the temperature dropped,  so I donned my new Rab Cirrus wind-shirt which seemed to shrug off the few spots of rain.  Snowdon's summit was as packed as ever so I elected to huddle behind a wall by the new visitors centre, sheltering from the wind to have lunch.

Looking back to Crib Goch

I had never traversed over Y Lliwedd and its imposing cliffs looked even more impressive viewed from Snowdons peak, though the view back along Crib Goch left me with some regret.  I left the summit by the south ridge for about 100m before dropping south-east where the Watkin Path route joins.  Losing height height I kept near the cliff edge to make the most of the rock-hopping opportunities on offer before scrambling up to reach the West Peak of Y Lliwedd, quickly followed by the East Peak.

East peak of Y Lliwedd

Llyn Llydaw from Lliwedd Bach

From here it case a case of picking my way down towards Lliwedd Bach and following the feint path back down towards LLyn Lydaw.  On the descent my ankle was pretty painful - I strained my ankle ligaments 4 weeks ago and the descent had eventually taken it's toll.  I'd been chatting to a couple of climbers who'd also come up from London the evening before and one of them kindly lent me his walking pole (thanks Hajaz) which eased the load as we descended to meet the Miners Track and trudged back to Pen y Pass.  A cool beer back in Capel Curig also seemed to help ease the pain!

So not quite the full Snowdon Horseshoe - similar in length but not profile and Crib Goch will have to wait for another day (soon).  But as I'm trying to get hill-fit it was good to get in some miles and metres on a beautiful day.

PS. It was the first outing for my Rab Cirrus windshirt - it's laughably thin, windproof and shrugged off mild rain without problen.  I kept it on whilst working hard up-hill and it seemed to breathe well.  The only slight niggle was that the Pertex Quantam fabric is so thin that in high winds a slight excess of material on the arms would catch the wind and flap with a wild slapping noise...and one of the chaps I met asked if it was a base-jumpers top - he was expecting I was going to launch myself from the cliffs!

Friday, July 2, 2010

RIL, Essar to hit the highway to fuel oil profits

With the government deregulating prices of petrol and planning to do the same in case of diesel, private fuel retailers like Reliance Industries (RIL) and Essar plan to aggressively expand their presence along India's national highways, giving public sector oil marketing companies (OMCs) a run for their money .

OMCs have traditionally controlled this high-volume business segment of the retail market. Intense compe tition from private players could put pressure on OMCs' retailing margins. "After price deregulation, there would be significant investments by private players in petroleum retailing, but they are likely to focus on highways," says Ajay Arora, an energy expert with global consultancy firm Ernst & Young.

Now that both refinery and retail prices of petrol have been deregulated, RIL and Essar can sell the fuel at any price of their choice.

This will put pressure on OMCs to keep their prices competitive, making the current practice of fortnightly price revisions irrelevant.

Competitive pricing is going to be the name of the game.

Both RIL and Essar have relatively larger and technologically more advanced refineries capable of processing a higher share of tough, heavy and sour crude oil which is cheaper. They also have the flexibility to produce more petrol and diesel out of the same barrel of crude oil. As a result, their refining cost is lower than that of PSUs like IOC, BPCL and HPCL, which have relatively older and smaller refineries.

However, refining facilities of private players are concentrated in a particular area unlike public sector players who have facilities across the country . For example, both RIL and Essar have their refineries in Jamnagar. This translates into higher transportation and distribution costs. "We are well-positioned to face competition from private players. Our overhead cost may be higher, but our distribution cost would be lower," IOC chairman BM Bansal told FE. Besides, OMCs have also acted fast in improving customer services at retail outlets.

Private players will have to further reduce their refining costs to offset the impact of higher distribution costs. Setting up new refineries to achieve geographical spread is not an option due to high capital costs. Continued from Page 1 Private players have been swapping products with O M C s t o s ave t r a n s portation costs. But it is difficult to say how long this understanding would hold once competition for market share intensifies.

The global slowdown of the last two years led to some demand contraction for petrol and diesel in North America and west Europe, both of which were favourite destinations for Indian petro-product exports.

However, the Indian market still remains lucrative, given the strong demand for auto fuels in the country.

So, it makes sense f o r p r iv a t e p l ay e r s , wh i ch h ave b e e n e x porting a sizeable quantum of their production, to expand their footprint in the domestic market.

Source: Financial Express
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Thursday, July 1, 2010

Government approves $5.25 per mmBtu for ONGC gas

The government has approved a higher price of gas for ONGC’s C-Series fields in Mumbai offshore taking a step forward in its policy to bring all gas prices closer to market-determined rates. 

The C-Series gas priced has been fixed at $ 5.25 per million British thermal unit (mmscmd), which almost a dollar higher than the price at which Reliance Industries sells gas from the its fields in Krishna Godavari basin. 

Reliance gets $ 4.215 per mmBtu for the gas it produces from KG-D6 fields. The price for ONGC is a tad lower than $ 5.5 per mmBtu which it had sought earlier, said a oil and gas ministry official. 

The government had recently increased the price of gas sold at controlled price (administered price mechanism or APM gas ) by state owned upstream oil companies to $ 4.2 per mmBtu bringing it at par with KG D-6 gas. 

Natural gas produced from C-Series fields is sold to Gail which further markets it to end users. ONGC began production from C-Series fields last month and is currently producing between 0.8 to 1.2 million standard cubic meters per day from the wells drilled so far. 

The peak output from the field is expected to be 2.8 mmscmd after all the 15 wells are drilled after monsoon season. 

Source: Economic Times
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