Category — Oil & Gas

Canada and India move closer to Trade Agreement

Ed Fast, Canada’s Minister of International Trade and Minister for the Asia-Pacific Gateway,  highlighted the launch of the fifth round of negotiations toward a Canada-India trade agreement. “Our government remains firmly focused on what matters to Canadians: jobs, growth and long-term prosperity. Deepening Canada’s trading relationships with high-growth markets like India is key to these efforts,” said Fast.

A Canada-India joint study concluded that a trade agreement between the two countries could boost Canada’s economy by at least $6 billion. That translates to almost 40,000 new jobs or a $500 boost to the average Canadian family’s annual income. A trade agreement with India would eliminate or reduce tariffs on Canadian goods, liberalize trade in services, and directly benefit Canadian workers and businesses in sectors such as agriculture, resource-related and chemical products, transport equipment, machinery and equipment, and services.

August 17, 2012   No Comments

India promises electrical power access to every household by 2017

“Every household in the country will have electricity by 2017”, Indian Prime Minister Manmohan Singh promised in his Independence Day speech this week. During the last five year over 100,000 villages have received electrical supply.

Singh’s statement came days after over half of India was left without any electric power twice in a row due to grid failures.

India’s per capita energy consumption is among the lowest in the world, and it is largely because many rural Indians don’t have access to electrical energy at all; in many urban areas, daily power outages are a matter of course. Most businesses and many homes have backup power via diesel generators, battery backups or both.

What this means:

Political pressure to deliver a robust energy infrastrucutre will continue to drive investment in all forms of energy production, distribution, and green consumption. This continues to be a growing opportunity area for foreign and local players of all kinds.

August 17, 2012   No Comments

Fracking in India? The country will begin shale oil exploration auctions soon

India will launch its first-ever bid round for exploration of shale oil and gas by December 2013, Oil Minister S Jaipal Reddy.

“We are pursuing the development of shale gas in the country. We have undertaken the mapping of shale gas resources and are working to put in place a regulatory regime for licensing round in shale gas, by December 2013,” he said. Six basins,  Cambay, Assam-Arakan, Gondawana, KG onshore, Cauvery onshore and Indo Gangetic basins, have been identified that may have shale gas potential.

Shale gas —- gas trapped in sedimentary rocks below the earth’s surface —- is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs.

These unconventional deposits have raised estimates for US gas reserves from 30 years to 100 years at current usage rates. Shale gas deposits were not considered worth tapping before Houston billionaire George P Mitchell pioneered new extraction  “Fracking” techniques. In fact India’s Reliance Industries has invested almost a billion dollars in Marcellus shale reserves across the American East.

April 23, 2012   No Comments

US is second largest acquirer in India

According to global deal tracking firm Dealogic, India’s inbound M&A volume has surged to $23.4 billion, about equal to the record level of 2007.

American companies were involved in 17 per cent of the inbound mergers in India making the US the second most active conuntry. The United Kingdom was the top acquirer into India with deals worth $15 billion; BP’s $9 billion big for Reliance Industries’ oil and gas blocks was the largest piece. Other countries that were active were Germany (6 per cent), Japan (4 per cent), Denmark (3 per cent).

July 30, 2011   No Comments

India’s Coal Company to form JV with Peabody of St. Louis

Coal India Limited is getting ready to invest $100 million in return for 15 percent of a a joint venture in Australia. The 85 percent owner of the JV will be the world’s largest private sector coal company, Peabody headquartered in St Louis, Missouri, not far from where I attended business school.

The object of desire is the Wilkie Creek coal mine, in Queensland, Australia, which has an estimated coal reserve of 400 million tonnes. It is located in the Surat Basin of southeast Queensland and produces 2.35 million tonnes of low-sulphur, low-nitrogen thermal coal annually.

Coal India, which had its initial public offering in 2010, touched a 52-week high, with the share shooting up 2.37% in early trade. By the end of day, the stock had jumped 3.25%, in a market that was otherwise subdued. The rally helped Coal India surpass another state-run Indian energy giant, ONGC (Oil & Natural Gas Corporation), in terms of market capitalization.

What this means:

India’s burgeoning energy demands are sending companies, government owned and private, in the search for resources worldwide. Note that Indian companies made investments in shale gas and coal mines in the Eastern USA last year.

May 21, 2011   No Comments