Energy Business News

Greener cars can wait, India laps up BS-IV models on festive offers
With only five months to go for new emission norms to kick in, automakers have started the drive to launch BS-VI petrol vehicles. However, BS-VI variants seem to move slower with customers preferring BS-IV variant products in the current festival season. Auto companies have been doling out a number of offers to reduce their BS-IV inventories with some offering discounts up to Rs 1 lakh on certain products in their portfolio. With only five months to go for new emission norms to kick in, automakers have started the drive to launch BS-VI petrol vehicles. However, BS-VI variants seem to move slower with customers preferring BS-IV variant products in the current festival season. Auto companies have been doling out a number of offers to reduce their BS-IV inventories with some offering discounts up to Rs 1 lakh on certain products in their portfolio. Deep discounts have boosted sentiments to some extent, during the first ten days of the festive season leading up to Dussehera. Sources say Maruti SuzukiNSE 0.46 % saw an uptake in wholesale and retail sales of their BS-IV products by 5-7% in these 10 days helping clear stocks. “Sales of BS-VI are not booming but at the same time we do not have much unsold BS-IV inventory. We planned our BS-VI product launches ahead of the deadline,” said RC Bhargava, chairman of Maruti Suzuki.   Early adoption of BS-IV compliant petrol vehicles in the mass segment has somewhat worked for Maruti Suzuki and it has sold over 2 lakh units of BS-VI emission compliant vehicles in six months of launching its first such car in April this year. Hyundai Motor has been another early adopter of BS-VI cars and the Korean company does not think these models are currently selling faster than BS-IV. “I see buyers still buying BS-IV because of the offers and discounts it offers and only a handful of customers opting for BS-VI despite the price difference,” said Vikas Jain, national sales head at Hyundai Motor India. Several dealers ET spoke to feel manufacturers should have both BS-IV and BS-VI models on sale. “Only then will customers see value in the products. At this point, a buyer will go ahead and buy a BS-VI variant only if he is environmentally conscious,” says Nikunj Sanghi, chairman of Automotive Skills Development Council. Dealers also said the BS-IV vehicles will continue to command a high resale value for some time as service costs of a BS-VI vehicle are an imponderable for now. This is the reason several used car dealers are willing to carry a sizeable inventory. “There will be an increase in demand of BS-IV vehicles in the usedcar market. Dealers will get a higher margin, says Shubh Bansal, co-founder of pre-owned car dealer Truebil.   Source: er-cars-can-wait-india-laps-up-bs-iv-models-on-festive-offers/articleshow/71697666.cms  
Bulgaria Has Met 74% of its National Energy Savings Target by 2020
As a result of the implementation of energy saving measures in all sectors of the economy, as well as the contribution of all debtors, 6,167 GWh of energy were saved in Bulgaria for the period 2014-2018. In doing so, the country has met 74.1% of its national energy savings target by 2020. This is recorded in the annual implementation report for 2018 of the National Energy Efficiency Action Plan 2014-2020, approved by the Council of Ministers. The report contains basic statistical information, analyzes on the state and trends of energy efficiency at national level in 2017 - the last year for which official statistics are available. The various sectors of the economy are examined, reflecting changes in the main indicators - gross value added, energy consumption and energy intensity. The annual report analyzes the implementation of individual energy savings targets for building owners and industrial systems, as well as the implementation of energy efficiency measures by energy traders.   Source:
Revolta to set up Egypt’s first EV manufacturing, maintenance facility
Revolta Egypt, a developer of electric vehicle (EV) charging stations and related projects, is planning to launch the first EV manufacturing factory and maintenance centre in the country. Revolta has tied up with Ukrainian firm Eco Factory to set up the factory by end of 2019, Ezz El Din Ibrahim, board member and Head of Business Development at Revolta Egypt, told Zawya. Eco Factory is an engineering company that specialises in manufacturing commercial vehicles as well as storage devices and control systems for EVs. “The factory will be launched by the end of 2019 in a facility that covers more than 10,000 sq m on 6th of October [a city in Giza]. It will manufacture all the charging station accessories needed for EVs,” Ibrahim said. REVOLTA’S SOLAR PLANT Revolta is also looking for funding for a solar plant to power its solutions for the country’s transportation sector. “Revolta plans to install a 5 MW solar plant in Egypt’s Ain Sokhna, in cooperation with a Chinese company,” Ibrahim said. “The company seeks to get the EGP 100 million funding from EFG Hermes, the European Bank for Reconstruction and Development and other international financial institutions that are interested in green energy projects.” “To date, we have established 25 charging points in Shell-authorized retailers and distribution centers, and we plan to reach 50 charging points by 2019-end,” Ibrahim added..     Source:
Oil rises on hopes of easing U.S.-China trade tension
Oil prices rose on Monday after the United States and China both suggested they could ease up in a trade war that has undermined the outlook for the global economy and crude demand. Brent was up 56 cents, or 0.9%, at $59.90 a barrel by 0950 GMT, while U.S. oil was up 66 cents, or 1.2%, at $54.83 a barrel. U.S. President Donald Trump said on Monday he believed China was seeking a trade deal after he said Beijing contacted U.S. officials overnight to say it wanted a return to talks. Chinese Foreign Ministry spokesman Geng Shuang said he had not heard about a phone call between the two sides. China’s top negotiator, Vice Premier Liu He, had earlier said Beijing was willing to solve the impasse through “calm” negotiations and opposed an escalation. Concerns for the global economy have increased as trade tensions between Beijing and Washington mounted in recent days. China’s Commerce Ministry said last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft. In retaliation, Trump said he was ordering U.S. companies to look at ways to close operations in China and make products in the United States. SEB analyst Bjarne Schieldrop said the oil market was worried about “the secondary global growth effects of an upwards spiraling trade war between China and the U.S.” “The second concern for the oil market is that ... China is now ready to wrestle with the US in the global space of oil”. Investors were also left guessing about whether interest rates in the United States might be cut soon. U.S. Federal Reserve chair Jerome Powell told a symposium the U.S. economy was in a “favorable place” and the Federal Reserve would “act as appropriate” to keep the economic expansion on track. But concerns about a possible recession were exacerbated by data showing U.S. manufacturing industries registered their first month of contraction in almost a decade. The Brent/WTI spread was at minus $5.26, after widening 60 cents to settle at minus $5.17 on Friday. The spread blew out after China included U.S. oil in its tariff moves. U.S. energy companies cut the most oil rigs in about four months last week, with the rig count falling to the lowest since January 2018, as producers cut spending on new drilling and completions.     Source:
Egypt to Drill Two New Gas Wells in North Damietta
The Ministry of Petroleum and Mineral Resources is preparing to drill two new wells in the Mediterranean fields of Atoll and Katameya in the North Damietta offshore concession in the East Nile Delta, with about $289 million in investments, Egypt Oil & Gas reports. The plan is to begin production from the two new wells by next year, which will help raise the production of the Atoll field by around 100 million standard cubic feet per day (mscf/d), and start production in the Katameya field at a rate of 60 mscf/d. Atoll’s fourth well is set to be completed by Q1 2020, as shown by the financial results of the Pharaonic Petroleum Company (PhPC) for 2018/19, which were presented by the company’s head, Hassan Abady to the Ministry of Petroleum, according to a ministry statement. Currently, Atoll is producing nearly 300 mscf/d of natural gas and 9,000 barrels per day (b/d) of condensates from three wells. Meanwhile, the Katameya field will come online, producing its first gas, in Q2 2020. It is worth noting that PhPC is a joint venture (JV) between BP and the Egyptian Natural Gas Holding Company (EGAS). During fiscal year (FY) 2018/19, PhPC has registered a daily production rate of 525 mscf/d of gas and 10,000 b/d of condensates from in the Mediterranean Sea fields, as per by the company’s records. The results reflect successful production increasing strategies while cutting production costs and reducing the natural decline in production rates to its minimum level. PhPC has also shown an outstanding record in health, safety, and environment (HSE) standards by completing a combined 18 million hours of work across the Mediterranean gas fields and production facilities. Egypt plans to increase natural gas output by 11.8% by the end of 2019, supported by the production of Mediterranean fields led by Zohr, in order to raise the level of imports, thus strengthening its position as a center for natural gas trade and a regional energy hub.     Source: