Page 12 - AsianOil Week 34

AsianOil
NEWS IN BRIEF
AsianOil
SOUTH ASIA
PSU OMCs constrained to
stop fuel supply to Air India
at six airports
PSU Oil Marketing Companies (OMCs - IOC, BPC and HPC) have been constrained to suspend supply of jet fuel to Air India
and Alliance Air ights at six airports from
the evening of 22nd August 2019 due to mounting outstanding dues from the airline and their rami cations for their working capital requirements.
e joint decision to stop fuel supply to Air India from six airports, i.e., Kochi, Mohali, Pune, Ranchi, Patna and Visakhapatnam, was taken by the OMCs in the wake of long overdue payments to the tune of Rs. 5,000 crore. is includes the interest accrued on the outstanding dues.
Vide letter dated 14th August 2019, the Air India management was intimated by the PSU OMCs regarding their decision to stop fuel supplies at the aforementioned airports w.e.f. 22nd August 2019. Air India upli s about 250 kilolitres (kl) of ATF at the above six airports on a daily basis.
e three PSUs had served similar
notices on Air India earlier but withdrew them subsequently and continued with
ATF supplies on the assurance of Air India management that the outstanding dues will be cleared at the earliest. However, despite repeated follow-up and reminders for payment by the OMCs, no major reduction in the outstandings materialised from the airline till date. at too a er the ATF prices have climbed down from a high of Rs. 76,378 per kilolitre (kl) in November 2018 to Rs. 63,295 per kl currently.
As per the commercial terms agreed upon, Air India enjoys a credit period of 90 days. However, the credit period has since crossed the
limit and has been at about 230 days for the past nearly two years. Despite this, the OMCs have been supportive of Air India throughout this period.
Considering the huge outstandings from Air India and their rami cations for their working capital requirements, the three OMCs have been constrained to take the decision of stoppage of fuel supply at six airports. However, Air India ights operating from the six airports, where ATF supplies have been suspended, have been tanking up from other airports.
IOC, August 23, 2019
SOUTHEAST ASIA
Malaysia wants deeper
energy co-operation with
Vietnam
Malaysian Prime Minister Tun Dr Mahathir Mohamad has said state-owned Petronas could deepen its co-operation with PetroVietnam.
“Malaysia’s Petronas is already active in Vietnam but there is room for more co-operation between PetroVietnam and Petronas,” he said on August 27 during a three-day o cial visit to Vietnam.
Petronas signed a binding heads of agreement (HoA) with PetroVietnam in March for the sale of additional gas from Malaysia’s Block PM3 CAA to Ca Mau Province.
Petronas Gas’ Q2 profit shrinks
Petronas Gas’ second quarter net pro t shrank to MYR502.9mn from MYR509.3mn posted in the same period of 2018. Revenue expanded to MYR1.38bn from MYR1.36bn.
e company said its facilities continued to enjoy a more than 99% performance reliability.
It said revenue was higher on the back of better performance from utilities and gas processing, but was o set by lower revenue from gas transportation and LNG regasi cation in Pengerang under the Incentive-based Regulation (IBR). It added: “While the tari s are expected to a ect the group’s transportation and regasi cation business segment revenues in 2019, both segments are anticipated to continue contributing positively to the group’s earnings.”
GAIL starts up Ranchi gas supplies
Marking another signi cant milestone in the spread of the Pradhan Mantri Urja Ganga
in Jharkhand, Hon’ble Chief Minister Shri Raghubar Das, Hon’ble Union Minister of Tribal A airs Shri Arjun Munda and Hon’ble Minister for Petroleum & Natural Gas and Steel Shri Dharmendra Pradhan today launched supply
of Compressed Natural Gas (CNG), domestic Piped Natural Gas (PNG) and CNG-run vehicles in Ranchi.
GAIL (India) Limited is implementing the prestigious Pradhan Mantri Urja Ganga and also the City Gas Distribution (CGD) projects in Ranchi and Jamshedpur. GAIL Chairman & Managing Director Dr Ashutosh Karnatak and Director (Finance) Shri A K Tiwari were present on the occasion.
e Hon’ble Ministers inaugurated CNG stations in Madhuvan Vihar and Khukari on August 23, 2019 at Ranchi. ey also launched supply of Piped Natural Gas (PNG) to Domestic consumers in Shayamali Colony and CNG-run vehicles in the city.
Over the coming year, 11 CNG stations will be commissioned in Ranchi by GAIL to supply CNG to over 75000 vehicles.
Initially, natural gas will reach Ranchi in special containers called “cascades” which
will be transported by road from Patna, Bihar. Later, Natural Gas will be supplied through
the Jagdishpur – Haldia & Bokaro – Dhamra Natural Gas Pipeline (JHBDPL), popularly known as the Pradhan Mantri Urja Ganga. e pipeline is presently under construction and likely to be completed by 2020.
GAIL (INDIA), August 23, 2019
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Week 34 28•August•2019