Royal Dutch Shell keen to lease Mangaluru's strategic oil storage

coastaldigest.com news network
September 4, 2015

New Delhi, Sep 4: Royal Dutch Shell is in talks to lease India's new strategic oil caverns at Mangaluru on the country's southwest coast, two sources said, giving it increased storage in a market where oil demand is increasing.

A decision on the Mangaluru site, which has total capacity of around 11 million barrels of oil, depends on Shell winning relief from local sales tax, the sources said, while commissioning has been pushed back by two months to December.

India, the world’s No.4 crude consumer and one of the few major economies which is still seeing strong demand growth, is building up strategic petroleum reserves (SPR) facilities at three locations in the country’s south that will hold a total 36.87 million barrels of oil, enough to cover almost two weeks of its needs.

Under the proposal, Shell would use the Mangaluru site for commercial storage, but in the event of an emergency would have to make supplies available to state-run refiners and keep the site filled at specified levels.

Shell would likely store oil grades used by a nearby 3,00,000 barrels per day (bpd) refinery owned by the state’s Mangalore Refineries and Petrochemical (MRPL), the sources with direct knowledge of the matter said.

“It will be like a commercial storage for Shell, but in case of emergency the supplies will have to be made available to MRPL or any other (state-run) refiner,” said one of the sources.

No decision had been made as to the origin of the oil to fill the facility, but it would most likely come from Africa where producers are looking for new buyers in the wake of the US shale oil boom.

MRPL currentlly buys an average two million barrel of sweet African grades every month from spot markets.

The government expected to resolve the local tax issue, if a leasing deal was reached, the sources said.

Shell and Indian Strategic Petroleum Reserves (ISPRL), which is building the cavern, declined to comment.

ISPRL chief executive Rajan K Pillai said the start-up of Mangaluru’s SPR, as well as sites at Padur further to the south, would be pushed back to December because of a delay in pipeline connections between the port and the storage sites. Mangaluru needed about three kilometre (1.9 miles) of pipelines, Pillai said. Padur, which has four divisions of about 4.6 million barrels each, lacked some 34 kilometre (21 miles) of pipeline.

India, the world’s No.4 oil consumer, relies heavily on fuel imports, producing less than a third of its overall demand.

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News Network
May 14,2024

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Mangaluru, May 14: The Met department has sounded a yellow alert in 13 districts of Karnataka including the three coastal districts of Udupi, Dakshina Kannada and Uttara Kannada for next four days. 

The other districts are Belagavi, Dharwad, Haveri, Chikkamagalur, Chitradurga, Hassan, Kodagu, Mandya, Ramanagara, Shivamogga. These districts are expected to received 6-11 cm of rain, the department said.

On Monday Dakshina Kannada and Udupi experienced a monsoon-like atmosphere. Rain, accompanied by thunder and lightning, began in most parts on Sunday evening. In Udupi, rain showered in the early hours of Monday. While Kundapur and Udupi received moderate rains, Karkala experienced a heavy downpour.

The showers lowered the daytime temperature in both districts. Light rain fell in Mangaluru and its outskirts early Monday morning. Mangaluru city recorded a maximum temperature of 33.4°C and a minimum of 23.2°C on Monday. This is expected to decrease by two to four degrees in the next four days, according to the weather department. 

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News Network
May 17,2024

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Bengaluru: The India Meteorological Department (IMD) on Friday forecast heavy rainfall and thunderstorms in a few districts of Karnataka and said Bengaluru is likely to witness light to moderate rain and thunderstorms, with temperatures ranging from 30 degree Celsius to 22 degree Celsius in the next 24 hours.

Shivamogga, Chikkamagaluru, Kodagu, Hassan, Mysuru, Mandya, Chamrajanagara, Udupi and Dakshina Kannada districts are likely to experience heavy to very heavy rainfalls between May 17 and 21, said C S Patil, Director of Meteorological Centre, India Meteorological Department, Bengaluru.

According to India Meteorological Department, some places in Kodagu, Hassan, Mysuru, Mandya and Tumukuru districts will also witness, gusty winds (40-50 kmph) on May 18.

Moderate rain and thundershowers are also likely in Chikkaballapura, Chitradurga, Davangere, Kolar, Ramanagara and Vijayanagara districts.

IMD also predicts light to moderate rain very likely at some places over Bagalkote, Belagavi, Bidar, Dharwad, Gadag, Haveri, Kalaburgi, Koppal, Raichur and Yadgir districts.

On May 16, Channagiri in Davanagere district received the highest rainfall of 6 cm. 

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News Network
May 10,2024

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A day after National Commission for Women said no woman from Hassan approached the national body to file complaints against Karnataka MP Prajwal Revanna, a new FIR accusing BJP leader Devaraje Gowda of abusing and assaulting a woman has come to light.

The FIR against Gowda was filed by a woman at the Holenarasipura town police station on April 1, after her husband had filed a complaint against the BJP leader on March 30. 

The purported victim's husband has alleged in his plaint that Gowda barged into their home, and threatened the couple while the BJP leader also abused the woman.

Gowda, notably, flagged Prajwal Revanna's case to the saffron party.

Reacting to the allegations levelled against him, the BJP politico posted a video on Facebook where he details how he met the woman and her husband in his office. He also claims that the allegations against him are a plot and false.

It must be noted here that a Special Investigation Team is currently probing the sexual assault cases against Prajwal Revanna who along with his driver Karthik is no longer in the country. A Blue Corner notice is also in place to apprehend the son of H D Revanna who himself is placed under judicial custody till May 14.

In a major twist to the entire case— the woman in the FIR alleged that Devaraje Gowda who apprised BJP of the sex videos involving Prajwal Revanna— has been harassing her for the past 10 months under the guise of helping her sell a property.

The woman also said that she came in contact with Gowda during the process involving the property that she wanted to sell. However, on the pretext of guiding her, the woman alleged that the whistleblower BJP leader physically assaulted and harassed her while Gowda also threatened the couple.

The woman has now sought police protection for herself and family. Further levelling allegations against Gowda in her plaint, she said that the politico had taken her to an isolated place where he assaulted her and threatened to kill the couple.

Former chief minister of Karnataka and Prajwal Revanna's uncle H D Kumaraswamy recently demanded a CBI probe in the Prajwal Revanna matter. However, Home Minister G Parameshwara turned down the demand for the investigation to be handed over to CBI.

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