NGS’ NG/LNG SNAPSHOT – March 2021, VOLUME 2
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
BGL gears up to launch 20 new filling stations within Greater Hyderabad region by March-end
Hyderabad: Giving a push for adoption of eco-friendly vehicles and to cater to the needs of motorists who wish to opt the cleaner fuel, Bhagyanagar Gas Limited (BGL) is all set to come up with more Compressed Natural Gas (CNG)
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filling stations in the city. Buoyed by the success of existing stations, BGL is geared up to launch 20 new CNG stations within Greater Hyderabad region by March-end. The new filling stations in which BGL will be distributing CNG will be located at Bachupally, Financial District, Batasingaram, Gachibowli, Serilingampally, Yousufguda and Moosapet among others. A joint venture of Gas Authority of India Limited and Hindustan Petroleum Corporation Limited, BGL has a total of 80 such stations which are operated by HPCL, IOCL and BPCL and the new ones make the total number of stations to 100. According to officials, initially these oil and gas companies provide land and BGL would set up required infrastructure and distributes the gas. Today, BGL is in a stage of distributing around 1 lakh kg of CNG in the city every day. Officials said that each station supply around 1,000 kg to 1,500 kg of CNG daily. At present, over 50,000 vehicles which run with CNG are plying on the city roads and use the gas from BGL stations. Apart from cars, auto-rickshaws and other commercial vehicles, TSRTC too is operating 130 CNG buses in the city. The cost of CNG per kg is Rs 64, which is Rs 30 cheaper than petrol and Rs 24 less than diesel. These days, auto manufacturers are making bi-fuel vehicles on the request of owners and can be driven on petrol/ diesel as well as CNG.
https://telanganatoday.com/hyderabad-to-get-more-cng-stations
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Sales of CNG, e-vehicles soar as petrol prices catch fire
The CNG vehicle sales in the past three months in Maharashtra jumped up by 375 per cent while sale of electric vehicles has increased by around 30 per cent, which indicates motorists now prefer CNG and
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electric vehicles to those run on petrol. According to the statistics obtained from the state transport department, 610 CNG vehicles were registered in December 2020 in Maharashtra. The number went up to 2,288 in February. Similarly, 1,102 electric vehicles were registered in December 2020, and in February the figure rose to 1,429. The sale of petrol vehicles, on the other hand, has fallen from 2,10,715 in December to 1,49,820 in February, a decline of nearly 29 per cent. The sale of CNG-cum-petrol vehicles has also increased from 6,415 in December 2020 to 7,412 in February. “Though the numbers show a decline in the sale of petrol vehicles last month (February), the reason cannot be attributed directly to the hike in petrol prices. It’s a trend that is seen before the end of the financial year. However, the sharp rise in the sales of CNG and electric vehicles definitely shows that motorists have started preferring the CNG and electric vehicles. The number of peopale opting for CNG and electric vehicles is likely to further increase since petrol prices are rising steadily,” said an official. The overall sale of vehicles had been decreasing over the past two years. Registration of new vehicles fell by 5.52 per cent in 2019 as compared to 2018. In 2020, the registrations came down by 23.68 per cent. However, the sales started rising again in January, and within two months over 33 lakh vehicles were registered in the state.
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Private buses in Kerala yet to make the CNG switch
THRISSUR: Even though the diesel price is shooting up drastically, the private bus owners in the state are yet to explore the possibilities of switching to CNG, despite the cost advantages.
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The high capital cost involved in the conversion of the engines and lack of any incentives from the government are cited as the reasons for the tardy response. The leader of the Thrissur Railway Passengers’ Association P Krishnakumar said the government should give tax incentives to the buses which are converting to CNG, apart from offering subsidies for the equipment for conversion. But the bus operators must be ready to transfer a portion of the operational cost-benefit from CNG conversion to the passengers too. Pillai said IOAGPL has commissioned10 refuelling stations in Ernakulam, and six in Thrissur. “We will be commissioning five more stations in Thrissur, two in Malappuram, three stations in Kozhikode and two in Kannur, before this month end,” he said. Kerala Financial Corporation (KFC) GM Premnath said that KFC is offering loans up to Rs 5 lakh at an interest rate of 10% for conversion of buses into CNG mode. Only five vehicles have availed this loan so far.
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Biotechnology company wins order from HPCL to set up biogas plant in UP
Industrial biotechnology company Praj Industries on Tuesday said it has bagged an order from Hindustan Petroleum Corporation (HPCL) for setting up a compressed biogas (CBG) project at Badaun in Uttar Pradesh.
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The project with a capacity to process 35,000 tonnes of rice straw as feedstock to generate 5,250 tonnes of CBG annually will also generate 23,000 tonnes high-quality solid bio-manure and 3,50,000 tonnes of liquid bio-manure for ferti-irrigation, Praj said in a statement. This project has a potential to save up to 15,000 tonne of CO2 emissions per year and will be completed and commissioned within 12 months. For this project, Praj is offering first-of-its-kind RenGasTM technology developed by it using proprietary microbe to produce CBG from rice straw. https://energy.economictimes.indiatimes.com/news/oil-and-gas/biotechnology-company-wins-orderfrom-hpcl-to-set-up-biogas-plant-in-up/81422734
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Record high fuel prices: Auto LPG 40 per cent cheaper alternative: IAC
IAC said Auto LPG which is one of the cleanest and most economical gaseous fuels can emerge as a prominent alternative choice if supported by the right messaging and policy action.
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Consumers looking for alternative fuels amid rising petrol and diesel prices can go for Auto LPG which is almost 40 per cent cheaper, IAC said on Tuesday. Consumers can easily convert their vehicles to Auto LPG by installing conversion kits and stand to save significant amounts on fuel bills, said Indian Auto-LPG Coalition (IAC) – the apex body representing Auto LPG suppliers in India. IAC sought a reduction in GST of 28 per cent on Auto LPG/CNG conversion kits to make them more affordable to consumers. Auto LPG comes with the additional benefit of being an environmentally friendly fuel with almost 50 per cent lesser PM emissions than CNG and petrol and 80 per cent lower PM emissions than diesel. ” https://energy.economictimes.indiatimes.com/news/oil-and-gas/record-high-fuel-prices-auto-lpg-40- per-cent-cheaper-alternative-iac/81422719
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Kota piped gas network to be expanded
The Rajasthan State Gas Ltd will further expand the gas pipeline network of 161km and provide 8,000 new connections in Kota. Senior officials in RSGL said that seven CNG stations have already been set up
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in the coaching town of the country. Currently, around 15,700 households in Kota have piped natural gas connections and RSGL is trying to cover the whole city with the expansion of the new pipeline network. At a meeting on Wednesday presided by mines and petroleum secretary and chairman of RSGL Ajitabh Sharma, Mohan Singh, managing director of RSGL said that very soon, they will issue 8,000 more connections to households. Recently, RSGL set up seven CNG stations as well. A senior official of RSGL said that three more stations are also in the pipeline. Couple of years ago, RSGL set up two CNG stations having one mother station in Neemrana, Alwar and another at Kukas to cater to the vehicles plying on Jaipur-Delhi highway and also meet the needs of the industry in Neemrana. RSGL is also developing a network of urban gas distribution system in Gwalior and Sheopur in Madhya Pradesh.
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Electric Mobility & Bio- Methane
India needs to be industry-ready for hydrogen fuel cell vehicles: PM Modi
India’s very first hydrogen fuel cell passenger vehicle was tested in October last year by CSIR (Council of Scientific and Industrial Research) and KPIT Technologies. In a statement today,
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Prime Minister Narendra Modi lauded as a huge resolution the ‘Hydrogen Mission’ announced in the Budget 2021, underlining that future fuels and green energy are the way forward for attaining self-sufficiency for India’s energy requirements. Highlighting that India has already tested its first indigenously-developed hydrogen car, Modi added that the automotive industry in the country needs to be ready for hydrogen fuel cell vehicles. India’s very first hydrogen fuel cell passenger vehicle was tested in October last year by CSIR (Council of Scientific and Industrial Research) and KPIT Technologies. Hydrogen fuel cell technology uses chemical reactions between hydrogen and oxygen (from the air) to generate electrical energy, eliminating the use of fossil fuels. The homegrown brand Tata Motors has a number of buses that run on alternative fuel. The company has extensively tested CNG hybrid buses. Tata also signed a contract for the largest ever single order for hybrid electric vehicle technology with the Mumbai Metropolitan Region Development Authority (MMRDA) in 2017.
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Indian Oil may monetise Hydrogen units to raise Rs 10,000 crore
Country’s largest public sector refiner Indian Oil Corporation (IOC) plans to hive off hydrogen producing units and sulphur recovery facilities at its refineries to a separate entity and then sell stakes in
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it to the private sector to raise close to Rs 10,000 crore. The plan is in line with government’s asset monetisation programme where it wants PSUs to identify non-core assets that could be sold to raise resources for next wave of investments. Government sources said that IOC is one of the largest hydrogen producers in the country and some of these assets could be allowed to be shared with the private sector that is also looking at getting into hydrogen production realising its vast uses. IOC, however, wants to retain its pipping operations and has proposes direct monetising of hydrogen units instead. Oil Industry sources said that the PSUs proposal is being examined and a decision would be taken soon.
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Gas/ Pipelines/ Company News
GAIL India Issues Tender To Buy And Sell LNG For April-May
GAIL (India) has issued a tender seeking to buy two liquefied natural gas (LNG) cargoes for delivery into India and offering two cargoes for loading from the United States,
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two industry sources said. It is seeking one cargo for delivery into Dabhol LNG terminal over April 13 to 15 and another for Hazira LNG terminal over May 1 to 2, the sources said. GAIL is also offering two cargoes for loading from Cove Point LNG over April 20 to 22 and May 10 to 12. The tender closed on March 2, the sources said. The Indian importer has 20-year deals to buy 5.8 million tonnes a year of U.S. LNG, split between Dominion Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana.
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Shell’s Indian arm set to begin retail sales of LNG
The India unit of Royal Dutch Shell is planning to start retail sales of liquefied natural gas (LNG) in the country, a top company executive said. Last June, the Petroleum and Natural Gas Regulatory Board (PNGRB)
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opened up LNG retailing to all eligible entities, aiming to promote LNG as an alternative fuel for heavy vehicles, and reduce India’s dependence on imported oil. “We have an aspiration to build a number of retail sites which will be able to dispense LNG,” Ajay Shah, vice-president, Shell Energy Asia said in an interview. Shell already retails petrol and diesel in India. According to Shell’s LNG Outlook 2021, Asia is expected to drive nearly 75% of demand for LNG by 2040 as domestic gas production declines and LNG substitutes higher-emission energy sources, tackling air quality concerns and meeting emissions targets. Natural gas emits 45-55% less greenhouse gas and less than one-tenth of the air pollutants than coal when used to generate electricity.
https://www.energyinfrapost.com/shells-indian-arm-set-to-begin-retail-sales-of-lng/
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IOC, GAIL & HPCL may Raise 17k Cr. from Pipeline Stake Sale in FY22
The government expects Indian Oil, GAIL and Hindustan Petroleum to raise 17,000 crore by selling stakes in their pipelines in the next financial year, according to people familiar with the matter.
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Indian Oil is expected to raise 8,000 crore while GAIL and HPCL are targeted to generate 4,500 crore each, as per the pipeline monetisation plan drawn up by the government. HPCL’s LPG pipeline in Karnataka and GAIL’s two gas pipelines crossing Gujarat, Maharashtra and Karnataka have been identified for monetisation but Indian Oil is yet to select its pipeline for the purpose, according to people aware of the matter. Monetised via InvIT Route. The government’s aim is to free up resources so that new projects can be easily funded, generating increased investment activity at a time the pandemic has slowed the economy.
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Foresight Group eyeing Shipping Corporation of India for its LNG business
The group, in a consortium with Belgium’s Exmar NV and Dubai-based GMS, is a preliminary bidder for the national carrier as govt looks to privatise SCI by selling 63.75% stake In a bid to help strengthen
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the country’s gas infrastructure, London-based shipping firm Foresight Group is eyeing Shipping Corporation of India (SCI), to make it a leading liquefied natural gas (LNG) carrier in the world. The company has 20 tanker and 13 product vessels with one gas carrier in its fleet as per March 31, 2020 annual report. “We want to transition SCI from a conventional shipping company to specifically energy tonnage. India energy demand is expected to grow double digit and we are located between India and Dubai (which is between energy producer and consumer region) so we would like to map this trajectory and bridge this logistics, where SCI comes handy as the right platform,” Manjari Mehrotra Seth, director at RK Mehrotra Holdings Limited. Though the enthusiasm for the national carrier divestment seems to be building, it is crucial to note that the company operates in a tax environment that is relatively unfriendly when compared to global market due to an asymmetric Goods & Services Tax (GST) policy that inadvertently favours foreign shipping companies.
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ONGC acquires 5% stake in Indian Gas Exchange
Oil and Natural Gas Corporation Limited (ONGC) has signed a Share Purchase and Shareholders Agreement (SPSHA) with the Indian Gas Exchange (IGX) and the Indian Energy Exchange (IEX) on 10 March 2021
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to acquire 5 per cent equity in IGX. The SPSHA was signed in the presence of Secretary, Ministry of Petroleum & Natural Gas Tarun Kapoor and ONGC CMD Shashi Shanker at Shastri Bhawan, New Delhi. On this occasion, ONGC CMD said that ONGC is aligned to the government’s vision of increasing the share of gas in the energy mix to 15% by 2030. “We believe that the gas markets are key to facilitating the efficient and competitive gas trade in India. ONGC is pleased to be part of the Indian Gas Exchange and we look forward to develop the gas markets in the country through joint and synchronised efforts in the coming years.” IGX started operations on 15 June 2020 as a gas trading platform and has been operating as the Gas Exchange since December 2020. The Exchange operates under the regulatory framework of the Petroleum and Natural Gas Regulatory Board (PNGRB). Apart from ONGC, GAIL, Torrent Gas Private Limited, Adani Total Gas Limited have already acquired 5% equity each.
https://www.thestatesman.com/business/ongc-acquires-5-stake-indian-gas-exchange-1502956782.html
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BPCL to sell Numaligarh Refinery stake for Rs 9,876 cr.
In keeping with the Assam Peace Accord, the government had decided to keep Numaligarh Refinery Ltd (NRL) in the public sector. As part of this, BPCL was to sell its entire 61.65 per cent stake to state-owned firms.
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Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Monday said it will exit Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore. The sale of Numaligarh Refinery Ltd clears the way for privatisation of India’s second-largest fuel retailer. In keeping with the Assam Peace Accord, the government had decided to keep Numaligarh Refinery Ltd (NRL) in the public sector. As part of this, BPCL was to sell its entire 61.65 per cent stake to state-owned firms. BPCL holds a 63.68 per cent stake in Bharat Oman Refineries Ltd (BORL), which built and operates a 7.8 million tonne oil refinery at Bina. It will buy 36.62 per cent of the equity share capital from OQ S.A.0.C. (formerly known as Oman Oil Company S.A.0.C.) for Rs 2,399.26 crore. BORL was incorporated in February 1994 to build a refinery at Bina. The unit initially could turn 6 million tonnes of crude oil annually into fuel, which was subsequently raised to 7.8 million tonnes.
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Policy Matters/ Gas Pricing/Others
Fuel prices may fall by April, says petroleum minister Dharmendra Pradhan
Fuel prices have been on fire this month with oil companies raising petrol and diesel prices 16 times so far. Union minister for petroleum, natural gas and steel Dharmendra Pradhan said
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that he has asked his counterparts in petroleum producing countries to increase their oil production so that Indian consumers get relief from soaring fuel prices. “In April last year, major oil-producing countries decided to cut production as there was a sharp fall in demand due to the Covid-19 pandemic. These countries are producing less fuel to make more profit. While less fuel is still being produced, the demand for fuel has reached the point as it was before pre-Covid situation. Therefore, petrol and diesel prices have increased in the country,” Pradhan told reporters during an interaction in Varanasi on Saturday evening. He said that as the largest oil buyer, India is creating pressure on oil-producing countries like Russia, Qatar and Kuwait among others to increase production. When production will increase, the cost of per barrel buying will come down and subsequently retail fuel price will also fall. He also said that his ministry is working to ensure cooking gas connection in every house, in all eastern UP districts from Gorakhpur to Sonbhadra.
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Civil aviation min working on demand to bring jet fuel under GST
The civil aviation ministry is working on the airline industry’s demand to bring Aviation Turbine Fuel (ATF) under the ambit of GST and has taken up the matter with the finance ministry,
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a senior official said on Friday. Addressing a virtual event on global aviation and air cargo sector, civil aviation secretary Pradeep Singh Kharola also said the ministry has taken specific steps for optimum utilisation of the country’s vast airspace which would help international airlines overflying India as well as domestic carriers in saving costs. ATF or jet fuel cost, which account for for 45-55 per cent of an airline’s operating expenses, in India is among the highest in the world and the industry has long been demanding that it should be brought under the Goods and Services Tax (GST) regime.
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India opens ‘energy office’ in Moscow as Delhi-Moscow increase focus in sector
India has opened an ‘energy office’ in Moscow’s well-known landmark Federation Tower that will have presence of five top Indian energy PSUs.
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The five main Indian energy PSUs who will be present are–ONGC VIDESH Limited, Indian Oil Corp, GAIL (India), Oil India Limited, and Engineers India. Energy will be the main area of cooperation between India and Russia during Russian President Putin’s India visit later this year. Russian President will be visiting India later this year for the annual India Russia summit and for the BRICS summit as India is the chair of the grouping. Sorokin explained, “We hope it will be a new step and open the flow of investments in the country which is already in tens of billions of dollars” and will help us “drive new projects in the energy space…we hope to continue to work together”.
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Bolstering India-Myanmar energy partnership – a step towards developing Act East Policy
The Government of India revealed its proposal to invest $6 billion to build a petroleum refinery project in Myanmar’s Thanlyn region near Yangon. It is aimed at strengthening India’s ties
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with Myanmar, propel their cooperation in the energy sector and diplomatically counter Myanmar’s dependence on infrastructure development from China. Till now, Indian Oil Corporation Limited (IOC) has exhibited its interest in the development of this infrastructure building project. The GOI had initiated several projects in Myanmar, which is a geostrategic country for India, but those projects lag behind their scheduled completion date whereas China’s growing footprints in Myanmar have led to its dominant position with regard to investments in energy and infrastructure sector. China has been augmenting its investments through major projects like the Letpataung Copper Mine and the Sino-Myanmar Oil and Gas Pipeline, which allows China faster import of oil. China has also invested heavily in LNG plants of total 580 megawatts capacity and has significant presence in Sittwe where oil and gas pipeline terminal with a 12 million tons of crude and 700 Km pipeline link is now fully operational. https://energy.economictimes.indiatimes.com/news/oil-and-gas/bolstering-india-myanmarenergy-partnership-a-step-towards-developing-act-east-policy/81388126
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LNG Development and Shipping
LPG to be transported through Inland Waterways! IWAI signs MoU with world’s largest gas carrier company, MOL
The world’s largest gas carrier firm, MOL Group will invest for the construction as well as operation of dedicated LPG barges under the Modi government’s ‘Make-in-India’ initiative.
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For transportation of Liquified Natural Gas (LPG) through barges on National Waterways-1 and National Waterways-2, an MoU has been signed between Inland Waterways Authority of India (IWAI) and MOL (Asia Oceania) Pte. Ltd. According to the Ministry of Ports, Shipping and Waterways, IWAI will offer support for handling of LPG cargo on IWAI and multimodal terminals at Sahibganj, Haldia as well as Varanasi as per notified provisions and rates on MOL’s request, facilitating with adequate fairway, and providing information on Lease Available Depth (LAD) on monthly/fortnightly basis. The world’s largest gas carrier firm, MOL Group will invest for the construction as well as operation of dedicated LPG barges under the Modi government’s ‘Make-in-India’ initiative. At present, 60 per cent of the LPG is transported to the various locations through road with a cost of Rs 5 to 6 per metric tonne per km, which the oil firms are interested in reducing. Sometimes, there are also issues of strikes by transporters, road blockages which lead to delay in transportation. Transporting LPG through inland waterways will help minimize the carbon footprints, lowering the cost of overall logistics, which stands around 13 per cent to 14 per cent of GDP in India, compared to global average of 8 per cent and contributing to social schemes of the government like “UJJAWLA” for LPG supply.
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India’s first LNG dispenser launched
Indian multinational and one of the largest manufacturers of cryogenic technology equipment and solutions, INOXCVA, has announced that it has designed, developed and manufactured India’s first ever
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LNG dispenser, the GoLNG. The development of the LNG dispenser is in line with the national government’s encouraging and progressive policy to promote LNG as fuel for long distance, heavy trucking and passenger heavy transportation in India. Moreover, INOXCVA has developed an end-to-end integrated solution for Indian markets, with locally certified fuel tanks, filling stations and LNG dispensers. With the government’s plan of setting up more than 1,000 LNG stations across the country, LNG as a transport fuel would not only reduce the air and noise pollution levels, but also have a greater commercial advantage in comparison to the prices of diesel & petrol. To enhance the availability, INOXCVA has developed on board LNG fuel tanks for heavy duty buses and trucks. The initiative would also significantly bring down the vehicle maintenance cost as compared to diesel vehicles.
INOXCVA has also developed equipment for a mobile LNG fueling station to cater to the requirements for mining industry and remote areas.
https://www.ngvjournal.com/s1-news/c5-products/indias-first-lng-dispenser-was-presented/
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Asia’s LNG demand upends global gas pricing models
Asia’s emergence as global natural gas trading superpower will increasingly dictate market rates in Europe for a once-localized commodity that was simply linked to the price of oil. The change was highlighted this winter,
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when freezing temperatures in the northern hemisphere meant liquefied natural gas tankers went to Asia, the biggest consumer of the fuel and where sellers could get record-high rates. That pushed up market levels in Europe and, conversely, is now acting as a price brake as winter ends and LNG supplies return to the region. This past winter’s LNG price volatility may be a taste of things to come. The super-chilled fuel is becoming such a global commodity as trade mechanisms evolve, that it’s now dictating natural gas prices, according to Christoph Merkel, managing director of the Merkel Energy consultancy in Germany. “LNG prices have become the gas market prices,” he said. “There are still some hub prices, but LNG is now the market’s driver.”
https://www.worldoil.com/news/2021/3/12/asia-s-lng-demand-upends-global-gas-pricing-models
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Natural Gas / Transnational Pipelines/ Others
HUS oil, gas rig count leaps 30 to 491 on week, as oil prices climb further: Enverus
The US oil and gas rig count leaped 30 in the week ending March 3 to 491, rig data provider Enverus said, reaching the highest total since late-April 2020, as WTI oil prices climbed near the mid-$60s/b amid buoyant
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outlooks at major energy conferences. Oil-directed rigs accounted for the vast majority of the week’s gain, rising 27 to 366, while rigs chasing natural gas grew three to 125. The Permian Basin, sited in West Texas and Southeast New Mexico, was the clear focus area for growth, with a weekly increase of 12 for a total 222. Rig totals in the Permian are now at the most since late April 2020. At the annual CERAWeek by IHS Markit energy conference this week, enthusiasm for the future of upstream oil and gas in the next two decades was evident, despite what many believe will be a steadily growing use of renewable and alternative energy sources by mid-century; a move even oil and gas producers have begun to embrace.
Global LNG Development
LNG deal: favourable or not
ISLAMABAD: Two major industries around the world – arms and energy – have continued to dominate for a long time and have driven
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diplomatic and strategic relations between different countries. Energy diplomacy leads to interdependence on each other. Energy trade is not only confined to commercial business but it also provides opportunities for countries to expand their footprint in foreign markets. Traditionally, the oil lobby has been powerful around the world for decades. However with changing energy dynamics, a liquefied natural gas (LNG) lobby is emerging rapidly as several countries are increasingly using LNG as a tool to capture markets as well as develop diplomatic and strategic relations. For decades, Saudi Arabia remained an ally of Pakistan and had been supplying a major share of oil. However, it faced a big setback during the tenure of Pakistan Muslim Nawaz (PML-N) government in 2015 when Pakistan signed a 15-year LNG supply deal with Qatar.
Is it really a cheaper deal? Gas prices are linked with crude oil in the global market. During Covid-19 lockdowns, oil prices crashed, with which LNG prices also came down. LNG went down to as low as $2 per million British thermal units (mmbtu). However, with the easing of lockdowns following supply of Covid-19 vaccines around the world, the LNG prices rose over the past couple of months, touching $30 per mmbtu. Now, they have started falling again. Earlier, the PML-N government inked the LNG supply agreement with Qatar and commodity trader Gunvor at 13.37% of Brent crude. The deal came in for a lot of criticism for being what many called “expensive”. Separately, Pakistan LNG Limited (PLL) has floated tenders for short and long-term LNG supply and awarded contracts at around 12% of Brent crude. For spot purchases, PLL has given contracts in the range of 6-17% of Brent price.
https://tribune.com.pk/story/2286817/lng-deal-favourable-or-not
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Pakistan hopes to save $3 billion in new gas deal with Qatar
ISLAMABAD – Pakistan’s landmark, new deal with Qatar for liquefied natural gas at lower rates will save Islamabad a total of about $3 billion over the next 10 years, an adviser to the country’s prime minister said Monday.
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The agreement, signed last Friday, will save the state $317 million annually due to the reduced price of the gas compared to the 2015 agreement between the two countries, according to Nadeem Babar, Prime Minister Imran Khan’s adviser on petroleum. Under the agreement, which comes into effect in January 2022, Pakistan will import liquefied natural gas – or LNG – from Qatar at a reduced price of about 31%, compared to the previous agreement signed in 2015 for 15 years. At the time, Islamabad’s agreeing to pay a higher price had drawn criticism from experts. Khan’s government has said it was trying its best to overcome an energy shortfall through different measures.
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China to import more LNG from Russia
Russia’s second largest gas producer Novatek has signed a long-term liquefied natural gas sales and purchase agreement for volumes from its grassroots Arctic 2 project with Shenergy of China.
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The SPA calls for the cumulative supply of more than 3 million tonnes of LNG over a 15-year term, which will be delivered to terminal in China on a delivered ex-ship (DES) ship basis. “Our LNG commercial strategy is to diversify our client base and target end consumers in the fast-growing Asian Pacific region and the LNG volumes produced from our Arctic LNG 2 project are core to our long-term objective of delivering affordable, secure and sustainable natural gas for many decades,” said Novatek chairman, Leonid Mikhelson. “The Chinese market is one of the key regions in our LNG marketing strategy and we plan to further increase our supplies of liquefied natural gas to this country.”
Petronas at the time said this 12-year contract, scheduled to start next year, came on the back of it being a major LNG supplier to Shenergy’s subsidiary Shanghai LNG since 2006.(Copyright)
https://www.upstreamonline.com/lng/china-to-import-more-lng-from-russia/2-1-971417
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Natural Gas / LNG Utilization
Thai corporate giants in the race for LNG shipper license
BANGKOK (The Nation/ANN): At least three major companies — PTT Plc, Siam Cement Group and EGCO Group — as well as some smaller energy companies have filed for liquid natural gas (LNG) shipper licence,
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a news source at the Energy Regulatory Commission (ERC) revealed on Monday (March 8). “However, the ERC will not issue an LNG shipper licence at the moment, as it is waiting for the Energy Policy and Planning office to finalise policies related to the natural gas business, which is expected to be finished around the end of March, ” the source added. Meanwhile, Wuttikorn Stithit, PTT’s senior executive vice president of the gas business unit, said that PTT had filed for its second LNG shipper license after it had received the first one for importing LNG to fuel domestic power plants. “The second license will be used to import and sell LNG for general markets, including both domestic and overseas customers, ” he said.
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LNG as a Marine Fuel/Shipping
CERAWEEK: Cheniere eyes start of LNG output from ninth train by end of 2021
Cheniere Energy hopes to be producing LNG from its ninth and, for now, final liquefaction train by the end of this year, as construction remains ahead of schedule, CEO Jack Fusco said March 1.
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The biggest US LNG exporter is betting on a lift to its commercial efforts from the rebound in global markets following a challenging 2020, demand from major Asian consumers and plans to make its carbon footprint more transparent. China’s natural gas demand is expected to set a new record in 2021 as its economy emerges from the pandemic faster than most countries and it remains on track to meet its long-term environmental protection targets, according to data from S&P Global Platts Analytics and state-owned Sinopec’s research arm. China’s average annual increase in natural gas demand is expected to exceed 20 Bcm in the 14th Five-Year Plan (2021-2025) and reach 430 Bcm in 2025. That would be slower than the average annual growth of 11.1% seen during the 13th Five Year Plan. Some market observers believe buyers in energy-thirsty Asian markets might not show the same level of hesitation over supply chain emissions as their European counterparts. Instead, these customers may place greater priority on security of large quantities of LNG with a focus on price and reliability. Fusco said that ultimately the company hopes “to make everyone comfortable, at least with Cheniere’s LNG.”
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Qatar Petroleum signs agreements for new LNG carrier designs
Qatar Petroleum (QP) has signed a multi-party agreement with Singapore-based LNT Marine, the American Bureau of Shipping (ABS) and Shanghai Waigaoqiao Shipbuilding (SWS)
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to collaborate on the development of new medium and large liquefied natural gas (LNG) carrier designs. The agreement paves the way for the establishment of a joint industry project (JIP) that targets the development of new LNG carrier designs, utilising the LNT A-Box LNG cargo containment system, QP said in a statement. LNG cargo containment systems are highly specialised and have experienced few improvements over the past decades. LNT Marine is a technology provider and innovator within the LNG sector, developing gas carriers and cryogenic insulation systems for marine applications.
https://www.offshore-technology.com/comment/qatar-petroleum-lng-carrier-designs/
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Energy firms bet on hydrogen boom, but payday far away
So far, commercial-scale production has been from natural gas or coal and it is a niche market used mainly in oil refining and heavy industry. The European Union, Britain, Japan and South Korea,
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as well as leading oil and gas companies, such as Royal Dutch Shell , BP and Total, have set out plans to invest heavily in hydrogen. In the Canadian province of Quebec, where hydropower is abundant, green hydrogen is going to be a reality, Canadian Natural Resources Minister Seamus O’Regan said. Canada last year unveiled a hydrogen strategy that could be worth $40 billion. But converting natural gas storage, pipelines, furnaces and boilers to hydrogen will be a costly and long process. “Hydrogen will not be the solution to each and everything… it’s not the silver bullet that solves all problems,” Siemens Energy CEO Christian Bruch told the conference. “I don’t see really a large-scale commercial viability any time before 2025 or even the end of the decade,” Bruch added. “There is still some way to go to prove we have resilient and reliable systems.” One challenge is the cost of producing green hydrogen, which cannot compete with natural gas or with hydrogen produced from natural gas. Known as grey hydrogen, hydrogen produced from natural gas or coal in a process that emits high levels of carbon dioxide, is the most common form of the fuel produced today and costs around $1 per kilogram. “It will scale up, and it will take a long time before it is a business that is large enough to start making a real difference on sort of planetary scale,” he said.
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United States: Lincoln completes project to use biogas as vehicle fuel
Mayor of Lincoln Leirion Gaylor Baird announced the successful completion of a project to use the biogas from a city wastewater facility to produce vehicle fuel. The Lincoln Transportation and Utilities Department (LTU)
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began the biogas sustainability initiative at the Theresa Street Water Resource Recovery Facility in 2017. “This sustainability initiative is a major accomplishment for the city as our team continues to upgrade our infrastructure in ways that also protect our environment and quality of life,” said Baird. “With this project completed, we are now actively creating vehicle fuel that is currently being sold on the national market. This upgrade is estimated to generate $2.6 million every year, recouping our costs in just 3.3 years. The revenue will help to fund operations and further system improvements.” The digestion of solids in the wastewater that goes to the facility produces methane, a powerful greenhouse gas. Instead of flaring this gas, the city has used the biogas to generate electricity for the treatment plant since 1991. When the generators reached the end of their useful lives a few years ago, Lincoln Wastewater System decided to upgrade the technology to make even better use of that biogas. The new process treats, cleans, and transforms the renewable natural gas into quality vehicle fuel. “LTU anticipates this project will produce 100 billion Btu of renewable natural gas annually, the equivalent of about 875,000 gallons of gasoline,” said LTU Assistant Director Donna Garden. “Natural gas vehicles can operate on the type of non-fossil fuel we are producing, reducing greenhouse gas emissions by up to 75% compared to gasoline or diesel vehicles.”
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Total and Clean Energy form JV for carbon-negative renewable gas production/fueling infrastructure
Clean Energy Fuels Corp. and its largest shareholder, Total SE, announced a 50/50 joint venture to develop carbon-negative renewable natural gas production facilities in the United States, as well as
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credit support to build additional downstream fueling infrastructure. The initial firm commitment is $100 million and can increase to $400 million as development opportunities progress. Since Clean Energy and Total will be providing the equity portion of the investments, the actual amount of capital invested in biomethane projects may be higher than $400 million depending on the amount of leverage that is deployed. In addition, Total will be providing credit support for Clean Energy development in the value chain, including $45 million for contracted fueling infrastructure. The companies have already partnered to expand the use of biomethane in the heavy-duty vehicle market with the Zero Now program, which allows fleets to purchase natural gas trucks for the same price as diesel trucks.
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