India renegotiates 20-year Australian LNG deal with Exxon Mobil
Indian Oil Minister, Dharmendra Pradhan, has revealed the renegotiation of the price of liquefied natural gas (LNG) imported from Australia’s Gorgon project, making the fuel commodity more affordable to domestic consumers.
“Indian customers will receive (Gorgon) LNG volumes at an amicable price soon. This is done in a similar way to what we did with LNG from Qatar,” Pradhan said in a tweet.
India’s biggest gas importer, Petronet LNG, signed a 20-year deal with Exxon Mobil Corp to buy 1.5mn tonnes of LNG each year at a price of 14.5% of the Brent oil price, plus freight shipping costs. This equates to about $11-$13 per mn British thermal units, almost double that of domestic Asian LNG prices.
However, Petronet and Exxon Mobil have now reached the agreement on terms of a new deal that will see Petronet take another 1mn tonnes of LNG at 12.5% of the Brent oil price, with the original supply reduced from 14.5% of the Brent price to 13.9%. The new deal will also shift shipping costs on to Exxon.
The move is the latest sign that India is developing itself into a global energy powerhouse, with the aim of gaining more leverage over suppliers in order to secure lower prices for domestic companies. The deal follows a similar one made with Qatar-based Rasgas in 2015, with India having renegotiated with the company to buy LNG at half the price that was previously paid.
The lower price can also be attributed to the decline of the industry, with a prolonged fall in oil prices forcing many suppliers to act accordingly in order to try and retain their market share.
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."