NGS’ NG/LNG SNAPSHOT – June 16-30, 2022

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NATIONAL NEWS

City Gas Distribution & Auto LPG

Dakshina Kannada to get 100 CNG fuel stations in two years

Dakshina Kannada Deputy Commissioner Dr. K. V. Rajendra said on Monday, June 27, that GAIL India Ltd., through its subsidiary GAIL Gas Ltd., is taking steps to have 100 Compressed Natural Gas (CNG) fuel stations in the district

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within the next two years. Of them three more stations, in addition to the existing 10 stations, will be commissioned soon.

Speaking at a meeting relating to revising CNG fuel prices at his office, the Deputy Commissioner said that his office and the office of Dakshina Kannada Member of Parliament will write to the corporate office concerned requesting it to reduce the CNG fuel rates. Earlier, the CNG fuel consumers drew the attention of the Deputy Commissioner on the high prices of CNG fuel and requested him to take measures to reduce the prices.

The Deputy Commissioner said that a meeting of Deputy General Managers of Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd and Indian Oil Corporation Ltd will be convened to apprise them on the need to create infrastructure facilities at CNG fuel stations managed by them. Member of Parliament will preside over it.

Dr. Rajendra instructed the CNG fuel station dealers to keep the stations opened from 6 a.m. to 10 p.m. as the CNG fuel consumers are increasing. If the dealers failed to adhere to the same, legal action will be taken against such dealers, he cautioned.

https://www.thehindu.com/news/cities/Mangalore/dakshina-kannada-to-get-100-cng-fuel-stations-in-two-years/article65573385.ece

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ONGC seeks minimum $17 price for coal gas from Bokaro block in Jharkhand

Oil and Natural Gas Corporation (ONGC) is seeking a minimum USD 17 price for the gas it plans to produce from coal seams in its Bokaro CBM block in Jharkhand. ONGC invited bids for the sale of 0.20 million standard cubic metres per day of gas it plans to produce from the Bokaro CBM block by the year-end.

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It sought bids on a formula indexed to the prevailing Brent crude oil price. The reserve or floor price of gas will be 14% of the Dated Brent crude oil Price plus USD 1 per million British thermal unit, ONGC said in the tender. Bidders will have to quote a premium they are willing to offer over this reserve price. The floor price will be the government-mandated price for domestic natural gas plus a USD 1 per mmBtu mark-up.

The government-mandated price of domestic gas is currently USD 6.1 per mmBtu. The price sought by ONGC is in line with recent industry trends. In March, Reliance Industries Ltd sold coal-bed methane (CBM) gas from a Madhya Pradesh block for over USD 23 per mmBtu to firms, including GAIL, GSPC and Shell.

ONGC said the gas will be available for sale from December 15. The gas will be offered for a fixed term of 1 year. E-auction will be held on July 20.

https://www.business-standard.com/article/companies/ongc-seeks-minimum-17-price-for-coal-gas-from-bokaro-block-in-jharkhand-122062100618_1.html

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Dombivli, Mumbai: Palava township residents to soon get piped natural gas offline

The work of providing Piped Natural Gas (PNG) to Maharashtra’s first integrated Palava Township which is located in Dombivli and the surrounding area, will start very soon.

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The work is being started by Mahanagar Gas Limited (MGL) and soon, the work of transporting PNG through offline method will start. Dr Shrikant Shinde, the Lok Sabha MP from Kalyan who initiated PNG services in this region, informed that MGL has assured that very soon the offline PNG services will start in Palava Township and surrounding areas.

On Friday, June 18, Mahanagar Gas Ltd. informed that the main gas pipeline is available at Manpada area in Dombivli. It added that the extension of the same pipeline up to Palava township of around 4 km, is initiated and it consist various challenges like limited corridor adjacent to the trees, existing cluster of utilities, parallel road concretization work and railway crossing before Palava Township.

The Mahanagar Gas said that to clear all technical hurdles it will take 2-3 years for the online supply. Therefore, MGL examined on the alternative method of supplying PNG through offline method

The MGL is at concluding stage and planning to initiate pilot project at Lodha Palava Phase-2 shortly, and upon satisfactory completion and mutual agreement on technical and commercial points, they will take up execution in phased manner.

An MGL official said that after conducting technical survey and various permission involved in setting up pressure reduction skids and deployment of cascades for offline method, we have finalized the option of giving PNG through offline method till we establish supply through main line connectivity.

https://timesofindia.indiatimes.com/city/thane/dombivli-palava-township-residents-to-soon-get-piped-natural-gas-offline/articleshow/92298207.cms

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Natural Gas/ Pipelines/ Company News

 

After 5 months, ONGC finally gets a director on HPCL board

After over five months, Oil and Natural Gas Corporation (ONGC) has finally got a director appointed on the board of Hindustan Petroleum Corporation Ltd., a firm it had acquired for Rs. 36,915 crore.

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The Ministry of Petroleum and Natural Gas on June 22, conveyed its consent for the appointment of Sh. Pankaj Kumar, Director (Offshore), ONGC as a director on the board of HPCL, according to regulatory filings by HPCL.

For over five months, ONGC had no representative on the board of HPCL a company in which it owns a 51.11 per cent stake since January 2018.HPCL for over one-and-a-half years between January 2018 and August 2019 did not recognise ONGC as its promoter despite the government selling its entire 51.11 per cent stake in the company to the oil explorer.

It relented only after a rap from market regulator SEBI. ONGC got the right to appoint one director who HPCL called ‘Government Nominee Director (Representative of ONGC)’.

“Sh. Pankaj Kumar has been appointed as Government Director on the Board of the company effective June 22, 2022,” HPCL said in the filing. Officials said ONGC has been nominating one of its directors as the nominee director.

Prior to the latest appointment, its last nominee director was Smt. Alka Mittal, Director (HR) who was appointed to the HPCL board in April 2021.In January this year, Smt. Mittal was given additional charge of chairman and managing director of ONGC after the retirement of the incumbent. And following the past practice of the company that the chairman could only sit on the board of a subsidiary in the capacity as chairman and not as a director, Mittal resigned from the board of HPCL and Kumar was nominated.

In a filing on January 6, 2022, HPCL said: “Smt. Alka Mittal has tendered resignation from the position of the Government Nominee Director (Representative of ONGC) of the company effective January 05, 2022.”Officials said as per rules, Smt. Mittal also sent her resignation from the HPCL board to the Union Ministry of Petroleum and Natural Gas — the parent ministry of ONGC and HPCL.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/after-5-months-ongc-finally-gets-a-director-on-hpcl-board/92480008

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Sh. Sandeep Kumar Gupta selected for CMD, GAIL

Public enterprises selection board (PESB) selected Sh. Sandeep Kumar Gupta for the post of Chairman & Managing Director, GAIL (India) Limited June 28, Tuesday. Currently, Sandeep Kumar Gupta is serving as Director (Finance) in Indian Oil Corporation Ltd.

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PESB in the Selection meeting interviewed nine others apart from him Mr. Rakesh Kumar Jain, Director (Finance), Sh. Rajeev Kumar Singhal, Executive Director, Sh. Ajay Tripathi, Executive Director, Sh. Atul Kumar Tripathi, Executive Director, Sh. Deepak Gupta, Director (Project), from GAIL (India) Limited.

Sh. Manoj Kumar Dubey, Director (Finance), Container Corporation of India Limited (CONCOR), Sh. Suneel Dutt, Executive Director, Airports Authority of India (AAI), Sh. Mahesh Kumar Garg, CTO, Indian Railways Service of Mechanical Engineers, were also interviewed.      

Sh. Gupta in 2019 takes charge as Director (Finance) on IOCL’s Board. Earlier he served as Executive Director (Corporate Finance) in the same company.

https://www.psuconnect.in/news/sandeep-kumar-gupta-selected-for-cmd-gail/33164

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Oil ministry proposes higher age limit, shorter tenure for ONGC chairman

A year after the government headhunter failed to find any suitable candidate for top job at ONGC, the oil ministry has proposed raising of eligibility age as well as a shorter tenure for the new chairman and managing director of India’s top oil and gas producer.

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The ministry has proposed that any candidate to be eligible for consideration should not be more than 60 years of age on the date of occurrence of vacancy, according to the ministry’s office memorandum sent to the Department of Personnel and Training (DoPT) on June 17. The vacancy arose after Shashi Shanker superannuated on March 31, 2021.

Presently, the minimum age prescribed for being eligible for the top job is 45 years. Besides, internal candidates need to have two years of residual service as on the date of vacancy and three years for external candidates.

What the ministry has proposed now is that any eligible candidate who is not more than 60 years of age at the time of occurrence of vacancy which was April 1, 2021, should be considered eligible. This would essentially mean that the current acting chairman, Alka Mittal, who otherwise would retire in August-end and was ineligible, would come under the zone of consideration.

The ministry has also proposed appointment for a period of three years from the date of joining instead of the present five-year term, according to the letter.

The selection will be done through a three-member search-cum-selection committee headed by PESB chairman and composed of oil secretary and former Indian Oil chairman B Ashok (outside expert). The panel was formed on February 4, 2022 but the terms of reference are being framed only now.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/oil-ministry-proposes-higher-age-limit-shorter-tenure-for-ongc-chairman/92325160

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AG&P Pratham win the India 2022 ‘Energy Company of the Year’

One of the largest private energy players in India, AG&P City Gas, operating under the brand name AG&P Pratham, has been adjudged as the ‘2022 Energy Company of the Year’ in the non-renewable category.

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The Economic Times Energy Leadership Awards acknowledges outstanding companies and individuals that exemplify leadership and operational excellence in the entire spectrum of the energy sector.

The jury panel lead by Sh. Anil Razdan, former Secretary, Ministry of Power and Additional Secretary, MoPNG, included Sh. D K Sarraf, former Chairperson, PNGRB & CMD, ONGC, Sh. B Ashok, former Chairman, Indian Oil, Sh. Ashish Khanna, President, Renewables, Tata Power, Sh. Prachur Sah, Dy CEO, Cairn Oil & Gas, Sh. V R Sharma, MD, Jindal Steel & Power, Sh. Partha S Bhattacharyya, former Chairman, Coal India Ltd, Sh. K.S. Popli, former CMD, IREDA, Sh. Tim Buckley, Director, Climate Energy Finance and Sh.. Pranav R Mehta, Director, Global Solar Council, Chairman, NSEFI.

AG&P Pratham is developing CGD networks across 12 concessions covering 28 districts across 8% of India and ~80 mn people in the states of Rajasthan, Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. In its twelve concessions, AG&P Pratham is responsible for developing and operating Compressed Natural Gas (CNG) stations for vehicles, piped natural gas to homes, and the distribution of Liquid Natural Gas (LNG) to industrial and commercial customers.

Recently, on June 8th, 2022, AG&P Group was also adjudged the 2022 APAC Company of the Year (LNG category) at the Energy Council’s ‘Annual Awards of Excellence’ in Singapore.

https://www.ptinews.com/pressrelease/55623_press-subAG-P-Pratham-wins-the-India-2022–Energy-Company-of-the-Year–at–The-Economic-Times-Energy-Leadership-Awards-

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The Fuel Delivery partners with Mahanagar Gas for doorstep delivery of CNG in Mumbai

Mumbai-based, new-age Energy Distribution startup, The Fuel Delivery (TFD) signed an LoI with Mahanagar Gas Limited (MGL) to deliver CNG Composite Dispensing Unit (CDU) in Mumbai.

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The CNG CDU will provide hassle-free doorstep delivery of CNG. TFD has received approval from MGL to operate two CDUs in Mumbai, to begin with. The service will start in the next three months from Sion and Mahape in Mumbai and will gradually be extended to the other parts of the city.

This is the first time in the country that a startup is going to launch a Mobile CNG station. With the doorstep, CNG delivery customers will be able to refuel their vehicles without having to spend hours in the queues of the CNG stations. MGL’s CDU has followed due processes and completed trial runs after receiving initial clearance from Petroleum and Explosives Safety Organisation (PESO).

Increasing diesel and petrol prices make CNG an attractive alternative therefore the city is seeing a 10% increase in CNG vehicles every year. Mumbai is consuming 43 lakh kg/year through 5 lakhs plus vehicles. The city has only 223 stations, and TFD will provide ease to the consumers through the service.

The Fuel Delivery, an IoT-based start-up, is delivering diesel across industries like real estate, hospitality, retail, logistics and warehousing, agriculture etc. Currently, The Fuel Delivery caters to more than 500 B2B customers across segments. The start-up has raised a seed funding of around USD 1 million and it further aims for Series A Funding. Mobile CNG Station or CDU will service all Auto Rickshaws, Cabs, Private Vehicles, Commercial Vehicles, School Buses and all other vehicles that use CNG. It will save a lot of their time. This service will also be available 24 x 7. With this TFD will expand its services in the B2C segment, a company release said.

https://auto.economictimes.indiatimes.com/news/oil-and-lubes/the-fuel-delivery-partners-with-mahanagar-gas-for-doorstep-delivery-of-cng-in-mumbai/92209564

 

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GAIL could benefit from fall in US natural gas prices

Natural gas prices in the US reported a sharp drop owing to a fire incident in a US-based Freeport LNG (liquefied natural gas) terminal. This has increased gas availability in the US, which led to a 16.5% drop in the US gas prices.

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Freeport LNG exports 57 million standard cubic metres of gas per day, and nearly 10% of this goes to Europe. Thus due to more gas availability in the US, the prices have dropped, but lower gas availability in Europe has led to a surge in European gas prices. The company expects to restore partial operations in the next 90 days and full operations, not until late 2022.

GAIL buysLNG at contracted prices from the international market and sells it at contracted and/or spot prices in both the domestic and international markets.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.

Nearly 50% of imported LNG volumes are from the U.S. and the prices of the same are linked to Henry Hub – the benchmark gas price in the U.S. As per the contracts, LNG is bought at 115% of Henry Hub price plus a fixed liquefaction charge of $3 per million British thermal units (mmBtu).

Thus a fall in benchmark price will reduce the gas sourcing cost of GAIL.

https://www.timesnownews.com/business-economy/companies/gail-could-benefit-from-fall-in-us-natural-gas-prices-article-92219922

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Policy Matters/ Gas Pricing/ Others

From Oct 1, only approved fuels in Delhi-NCR

The Commission for Air Quality Management in NCR and Adjoining Areas (CAQM) has directed Delhi government and state governments of the National Capital Region districts to adopt standard permitted fuels.

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Use of such fuels will come into force on October 1 for areas where piped natural gas is available and from January 1, 2023, for the remaining areas.

CAQM feels that given its common airshed, NCR requires a unified list of approved fuels for the entire region if pollution is to be combated. The approved fuels for NCR are petrol and diesel (BS VI with 10 ppm sulphur) as vehicular fuel, hydrogen/methane for vehicular and industrial use, natural gas, liquefied petroleum gas (LPG)/propane/butane, electricity, aviation turbine fuel and biofuels.

CAQM said refuse-derived fuel will be used in power plants, cement plants, waste-to-energy plants, while firewood and biomass briquettes will be permitted for religious purposes. Wood and bamboo charcoal will be permitted for tandoors and grills in hotels and restaurants (with an emission channelising system) and in open eateries or dhabas. Wood charcoal has been approved for clothes ironing.

Shifting industries to PNG and cleaner fuels is a priority for CAQM. CAQM said a specific requirement of any other fuel by any category of industries owing to technical, technological or process requirements would be considered by the air panel on merits.

However, the commission said a specific category of industries outside Delhi would be permitted the use of low-sulphur fuel oil for metal smelting, melting, refining and heating furnaces. On June 8, CAQM announced that the use of coal as fuel in industrial, domestic and miscellaneous applications would be prohibited across NCR from January 1 next year. The commission reiterated on Friday, June 24, that the ban would not be enforced in thermal power plants that use low-sulphur coal.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/from-oct-1-only-approved-fuels-in-delhi-ncr/92446607

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Government issues new ad for chief of oil regulator PNGRB, vacant since Dec 2020

The government has for a second time in as many years re-advertised the post of chairman of oil and gas regulator PNGRB, which has been lying vacant since December 2020.

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The oil ministry this week issued an advertisement inviting applications for the post of chairman of the Petroleum and Natural Gas Regulatory Board (PNGRB).

It sought applications by July 21 from those who fulfill the qualifications and are not more than 62 years of age, according to the advertisement. The post of chairman of PNGRB has been lying vacant since December 4, 2020, when Sh. Dinesh K Sarraf completed his three-year term.

A search-cum-selection committee headed by Sh. V K Saraswat, Member (S&T), Niti Aayog in June 2021 picked former power secretary Sanjeev Nandan Sahai for the job. But that appointment was not confirmed by the government and so the post was re-advertised in November 2021.

The panel, which also comprises secretaries to the ministries of oil and commerce, secretary legal affairs and economic affairs secretary in February this year, picked former oil secretary Sh. Tarun Kapoor for the job. But during the time the selection was sent to the Appointments Committee of the Cabinet for approval, the 1987-batch Indian Administrative Service (IAS) officer from the Himachal Pradesh cadre was in May appointed as an advisor to Prime Minister Narendra Modi. And so the post had to be advertised again. An oil ministry official said the ministry was placing top priority on making the appointment at the earliest.

Last time, as many as 13 candidates, including former chairmen of ONGC and a former director of IOC, had applied for the top job at PNGRB. Out of these, the ministry shortlisted seven candidates and Kapoor was picked by the search-cum-selection committee after interviews.

Former Oil and Natural Gas Corporation (ONGC) chairmen Sh. Subhash Kumar and Sh. Shashi Shanker as well as Sh. G K Satish, who superannuated as director for planning and business development from Indian Oil Corporation (IOC), had applied for the top job.

https://www.business-standard.com/article/companies/govt-issues-new-ad-for-chief-of-oil-regulator-pngrb-vacant-since-dec-2020-122062400589_1.html

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GAIL will enter the LNG distributed production business to supply fuel to users

GAIL (India) Ltd, the country’s biggest gas transportation and marketing firm, on Wednesday said it intends to go into distributed Liquefied Natural Gas (LNG) production to take the fuel to users.

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GAIL will liquefy or turn natural gas into liquid at sub-zero temperature and transport it in trucks to users. GAIL has placed an order for two small-scale liquefaction skids capable of producing LNG on a pilot basis. Liquefaction will be achieved through proprietary technology-based mobile liquefaction skids.

In a first-of-its-kind endeavour in the country, GAIL plans to enter into distributed LNG production with the vision to cater to the demand from off-grid locations and the transport sector, it said in a statement. Further, the firm is also under discussion for manufacturing liquefaction skids in India.

The project is envisaged to provide a thrust to the Government of India’s focused initiatives to increase the share of natural gas in the primary energy basket.

https://www.bollyinside.com/news/gail-will-enter-the-lng-distributed-production-business-to-supply-fuel-to-users

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Higher prices of natural gas take the steam out of gas utility stocks

A sharp rise in the price of natural gas has impacted the margins of downstream players. The domestic price of natural gas was reset in April to $6.1 per metric million British thermal units (mmBtu), from $2.9 per mmBtu in the earlier six-month period.

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There is a price ceiling of $9.92 per mmBtu for deepwater and ultra-deepwater gas – a hike from $6.13. The next reset will be in October.

For distributors, this influences margins. It may affect demand. Transporters are likely to continue using gas since the price equation is favourable in comparison to diesel and petrol. That demand will not be affected by price.

The key market risks include lower-than-expected gas sales volume amid demand slowdown and a delay in the development of new gas sources, as well as sustained margin pressures due to persistently high prices. If there is a sharp decline in crude oil prices and lower refining margins by April/September, petrol and diesel may also become competitive versus gas for transport.

https://www.business-standard.com/article/companies/higher-prices-of-natural-gas-take-the-heat-out-of-gas-utility-stocks-122061600440_1.html

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LNG Use / LNG Development and Shipping

India’s LNG imports down 4% in May 2022

India’s LNG imports in May came in at 2.53bn m3 (about 1.86mn metric tons), down 3.5% year/year, the country’s oil and gas ministry’s Petroleum Planning and Analysis Cell (PPAC) website showed on June 25. The imports were up 2.42% month/month, however.

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The cumulative imports during the April-May period or the first two months of the Indian fiscal year (FY2023) were 4.95bn m3, down 9.6% yr/yr. 

The LNG imports last month cost $1.2bn, up from $800mn in the same month last year. The import cost in April-May was $2.2bn, up from $1.5bn in the same period last year, PPAC said.

https://www.naturalgasworld.com/indias-lng-imports-down-4-in-may-99171

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Petrobangla mulls taking RLNG from Indian Oil’s Haldia terminal

Bangladesh Oil, Gas and Mineral Corporation Petrobangla plans on importing regasified liquefied natural gas (RLNG) from the Haldia terminal of the Indian Oil Corporation.

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The state-owned petroleum corporation is looking to reach a long-term contract with the neighbouring country’s state-owned oil and gas producer with a view to minimising the increasing crisis of gas at home. The move is also to lessen forex pressure for importing LNG from the spot market.

Discussions are ongoing between officials concerned from both countries to take the matter forward, the source added. At present, Petrobangla has two long-term contracts to import LNG – one with Qatar Ras Laffan Liquefied Natural Gas Company Limited to import 1.8 million tonnes to 2.5 million tonnes, and another with Oman Trading International to import 1 million tonnes to 1.5million tonnes annually.

In fiscal 2020-21, Petrobangla imported 2.46 million tonnes of LNG from Qatar and 1.29 million tonnes from Oman. Imported LNG caters to around 21% to 23% of the country’s total daily gas consumption of 3,000 million cubic feet (mmcf). The country, however, still faces a shortage of 600-700mmcf gas daily to meet the demand of different consumer groups.

The corporation was thinking of importing LNG from India as an immediate solution to the current gas crisis. But, key issues relating to the import – price, supply quantity, and the required pipeline – were yet to be discussed, he added.

https://www.tbsnews.net/bangladesh/energy/petrobangla-mulls-taking-rlng-indian-oils-haldia-terminal-440742

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Electric Mobility/ Hydrogen/ Bio- Methane

Kia India inaugurates training centre with focus on electric vehicles in Kolkata

South Korean automaker Kia India on Thursday, June 23, inaugurated a training centre in Kolkata for imparting soft skill and technical training with a special focus on electric vehicles (EV) to its dealership workforce across eastern and northeast regions.

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Kia India is already operating three such facilities, each covering a 25,000 square feet footprint across Bangalore, Mumbai, and Faridabad, which it claims to have imparted more than 56,000 person-days training to upskill almost 10,000 dealer personnel. Spread across 10,000 square feet of space, the latest centre, along with keeping customer convenience at the core of the company’s service operation, also reinforces Kia India’s emphasis on imparting world-class training to the dealership workforce, the carmaker said in a statement. The facility is equipped to handle soft skill and technical training, as well as with a role-playing area, body and paint, and EV repair training.

Realising the increased importance of digitising operations, the new training centre is fully digitised and can broadcast virtual training across dealerships, it added. Aligning with the new era of mobility and the shift to electric vehicles, the new facility is fully capable of training dealer staff to handle EV queries, enabling them to provide a hassle-free ownership experience to the company’s discerning customers.

Besides, these training centres are optimised to conduct virtual training across the network, training about 2,500 dealer staff virtually during the peak pandemic, it said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/kia-india-inaugurates-training-centre-with-focus-on-electric-vehicles-in-kolkata/92413875

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

Peru plans to close the year with 70,000 vehicles converted to CNG

The Ministry of Energy and Mines (Minem) reported that more than 36,000 light gasoline and LPG vehicles have accessed the use of natural gas to date, through the NGV Savings Program,

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which finances the conversion of their engines to natural gas with resources of the Energy Social Inclusion Fund (FISE). Lima is the region that leads the conversions, with more than 25,000 vehicles converted to CNG.

The 2022 Annual Promotions Program committed a budget of S/ 66 million (U$S 18 million), with the aim of closing this year with 70,000 vehicles converted to natural gas across the country.

In addition to Lima, this program is carried out in the regions of Callao, Junín, Ica, Cusco, Piura, La Libertad, Áncash and Lambayeque, and it is planned to be extended to other regions of the country to the extent that they have CNG stations, as is the case of Cajamarca, Arequipa and Tumbes, which are the closest to having these filling stations.

The conversion is carried out in mechanical workshops that are authorized by the Ministry of Transport and Communications (MTC), and the converted vehicles are inspected by a certifying entity that verifies that the process has been carried out in accordance with current regulations, ensuring that the state-funded conversions are of good quality and safe.

For beneficiaries, the return period is up to 3 years. In the case of users from the provinces, the program contemplates the allocation of a discount voucher of S/ 1,000 (U$S265), applicable on the final price of the conversion, which helps reduce the value of the installment and makes the monthly payment of this credit viable through the CNG refueling at the service stations.

https://www.ngvjournal.com/s1-news/c1-markets/peru-plans-to-close-the-year-with-70000-vehicles-converted-to-cng/

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Mountain valley pipeline seeks construction extension in Appalachian basin, USA

The joint venture leading construction of the long-delayed Mountain Valley Pipeline (MVP) in the Appalachian basin has asked federal regulators for a four-year extension to the project’s construction deadline, but still expects to place the 2bn ft3/day pipeline in service next year.

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In a June 24 filing to the Federal Energy Regulatory Commission (FERC), MVP asked for a second extension to the deadline, to October 13, 2026. Earlier this year, in two separate rulings, the US Court of Appeals for the 4thCircuit vacated certain US Forest Service and Bureau of Land Management approvals covering a portion of the pipeline through the Jefferson National Forest and quashed a 2020 biological opinion from the US Fish and Wildlife Service.

New applications for the relevant approvals are currently wending their way through the review and approval process, MVP said in its FERC filing, which asked that the commission issue a ruling on the extension request by August 8 so that reviewing agencies and stakeholders reviewing the new applications have the benefit of FERC’s central federal authorisation.

The MVP joint venture, led by US midstream developer Equitrans and including partners NextEra Energy, Consolidated Edison, Canada’s AltaGas and RGC Resources, originally filed for the project in 2017, at which time it expected the $3.5bn pipeline, extending about 300 miles across Virginia and West Virginia, could be completed and in service by 2018.

In May, Equitrans said it intended to push ahead with the now $6.6bn project, and suggested the pipeline, now about 94% complete, could be in service in the second half of 2023.

https://www.naturalgasworld.com/mountain-valley-pipeline-seeks-construction-extension-99231

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$13bn Trans-Saharan gas pipeline to boost Nigeria’s gas exports

Nigeria is set to boost its gas development initiative through exports to Europe after reaching a new milestone in further opening the domestic and regional gas market via the construction of the multi-billion Trans-Saharan Gas Pipeline (TSGP) alongside Algeria and Niger.

 

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The oil ministers of the three countries Mr. Mahamane Sani Mahamadou, Minister of Petroleum for the Republic of Niger, Mr. Mohamed Arkab, Minister of Energy and Mines, Algeria, and Mr Timipre Sylva, Minister of State for Petroleum Resources of Nigeria as well as the Director Generals of national oil companies (NOCs) of the three African countries met to discuss the implementation of the TSGP on June 20, 2022, in Abuja.

During the meeting, which follows the signing of the Niamey Declaration during the 3rd Forum of the Economic Community of West African States in February 2022, parties established a task force and roadmap for the development of the TSGP.

It was disclosed that the TSGP project will mark a new era of improved regional cooperation in Africa, enhancing gas monetization and exports while scaling up exports to Europe via Algeria. Not only will the $13 billion project drive socioeconomic growth by unlocking massive investments across the energy sector, but it will also help create jobs in various industries including energy, petrochemicals and manufacturing whilst optimizing energy production and positioning Africa as a global energy hub.

A steering committee made up of the three Ministers and Director Generals of the NOCs, established during the two-day meeting, will be responsible for updating the feasibility study for TSGP and will meet at the end of July 2022 in Algiers to discuss how to progress with the TSGP project.

With energy poverty increasing across the African continent due to limited investments in energy projects, delays in exploration, production and infrastructure rollout, the COVID-19 pandemic, and global energy transition-related policies, the TSGP project will bring in a new era of energy reliability for Africa. With the 4,128 km pipeline running from Warri in Nigeria to Hassi R’Mel in Algeria via Niger, the pipeline will not only create a direct connection between Nigeria and Algeria’s gas fields to European markets but will bring significant benefits to Nigeria.

The pipeline will enable up to 30 billion cubic meters of natural gas to be traded yearly enhancing regional and international energy trade. With gas emerging as the energy of the future, the TSGP project will play a critical role in positioning Nigeria, alongside Algeria and Niger, at the forefront of the energy transition.

https://businesspost.ng/economy/13bn-trans-saharan-gas-pipeline-to-boost-nigerias-gas-exports/

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Argentina advances project to turn diesel locomotives to natural gas

Through Ferrocarriles Argentinos Sociedad del Estado (F.A.S.E.), the Ministry of Transportation signed a collaboration agreement with the U.S. company Optifuel Systems LLC.

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The objective of the agreement is to develop a project to put into operation 1,600 / 2,000 / 2,400 HP locomotives, 100% powered by natural gas with low emissions, in line with the country’s decarbonization goals.

In this sense, the project contemplates the development of a pilot test in which the National Center for Railway Development and Innovation (CENADIF) will work in coordination with the U.S. firm in the adaptation of diesel locomotives to natural gas.

In this way, once the pilot test is passed, the project will continue with the subsequent test in locomotives in both passenger and cargo services and the possibility of incorporating railway material, the provision of the necessary spare parts for maintenance and the repair of units, technology transfer and local participation in the production of components.

In addition, the agreement determines that the project will be carried out in stages, taking into account the availability of locomotives, contemplating the eventual provision of more units, integration, assembly and testing, and the development of refueling stations.

https://www.ngvjournal.com/s1-news/c1-markets/argentina-advances-project-to-switch-diesel-locomotives-to-natural-gas/

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Morocco plans to build pipeline for Nigerian natural gas

The pipeline in Morocco is planned to be constructed in six phases. Morocco is planning to build nearly 1,672km of pipeline for natural gas from Nigeria, as part of the wider Nigeria-Morocco Gas Pipeline Project (NMGP).

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Estimated to cost $25bn, the NMGP project will be built to link Nigeria with Morocco, crossing 11 west African countries and extending to Europe. The NMGP will have the capacity to transport approximately 5,400 billion cubic metres of gas annually to Morocco.

The news agency quoted Morocco National Office for Hydrocarbons and Minerals official Eman Mansouri as saying to Morocco’s Hespress newspaper that the NMGP will also supply gas to Spain and other European countries.

Earlier this month, reports emerged stating that the Nigerian government had given approval to its state-run oil company NNPC to proceed with the signing of a deal with the Economic Community of West African States (ECOWAS) for the construction of the Nigeria-Morocco gas pipeline.

Earlier this year, the NMGP project received funding from the Organization of Petroleum Exporting Countries (OPEC). The funding will be used for the Front-End Engineering Design (FEED) of the project’s second phase.

https://www.offshore-technology.com/news/morocco-pipeline-nigerian-gas/

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Spain: Sener wins Gate LNG expansion contract

Spanish engineering and technology group Sener has won a contract to increase the natural gas sendout capacity of the Gate LNG terminal in Rotterdam. Sener has been once again contracted by Gate terminal BV.

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It won the first contract to provide the engineering, procurement and construction management (EPCM) services back in 2020. Sener is also one of the companies responsible for its turnkey constructio of the Gate terminal in 2011.

In this new contract, the company will participate in the extra send-out (ESO) project. The project consists of increasing the plant’s natural gas send-out capacity with an additional 1.5 billions of cubic meters per year (bcma), bringing the total nameplate capacity from 12 bcma to 13.5 bcma.

For this purpose, Senerr will carry out the engineering services, as well as the procurement and construction management (EPCM) of the send-out capacity expansion works. These consist of the installation of a vaporizer and a high-pressure LNG pump together with all its associated facilities, such as equipment foundations, interconnection of piping and racks, power supply and process control. In addition, a new seawater pump will also be supplied.

As part of the EPCM services, Sener will develop the detailed engineering, together with the procurement management of all supplies, on behalf of the Gate terminal, and will be in charge of the construction supervision.

This new contract is in addition to the one from 2020, as well as procurement and construction management (EPCM) of the turn around, completed in 2021.

https://www.offshore-energy.biz/sener-wins-gate-lng-expansion-contract/

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Japan’s JGC wins Indonesia gas plant EPC contract

Japan’s JGC Holdings Corp has been awarded an engineering, procurement, and construction (EPC) contract by London-listed Jadestone Energy for a gas processing plant and an associated pipeline in Indonesia, the company said on June 20.

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The processing plant, with a capacity of 25mn ft3/day, and a 17 km sales gas pipeline will be built in Jambi, South Sumatra, around 600 km northwest of Jakarta. The project calls for the construction of facilities to purify natural gas from Jadestone’s Akatara gas field, along with a pipeline to transport the sales gas. The gas will be used as fuel at gas-fired power plants.

Jadestone late last year reached an agreement to sell gas from the Akatara gas field to local utility Pelayanan Listrik Nasional Batam, which has committed to take 20.5bn Btu/day of gas starting in the first quarter of 2024.

The company aims to take a final investment decision on Akatara in the first half of 2022 and bring the field on stream in the first half of 2024. Akatara was previously developed as an oil asset but is assessed to hold 63.74bn ft3 in 2C gas resources.

https://www.naturalgasworld.com/japans-jgc-wins-indonesia-gas-plant-epc-contract-99042

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Australia: APA signs 30-year deal for hunter gas-power project

APA will construct, own and operate the Hunter power project’s gas pipeline connection to the Sydney -Newcastle pipeline, along with a 70 terajoule gas storage facility.

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Australian energy infrastructure business APA Group and Snowy Hydro have signed a 30-year gas transport, storage and development agreement for the Hunter gas-fired power project in New South Wales, APA said on June 20.

APA will construct, own and operate the Hunter power project’s gas pipeline connection to the Sydney -Newcastle pipeline, known as the Kurri Kurri Lateral, along with a 70 terajoule gas storage facility. The pipeline is expected to be ready by 2023.

The development is subject to APA obtaining certain third-party approvals for the development and operation of its facilities and various development matters being agreed with Snowy Hydro. Snowy Hydro may extend the agreement for a further 10 years, APA said.

APA’s total construction costs for the project are currently estimated to be around A$264mn ($184mn). Final capital expenditure will be subject to detailed engineering design, which is expected to be completed by late 2022.

APA said it has worked closely with Snowy Hydro to ensure that the Kurri Kurri Lateral will be hydrogen-blend ready, as well as committing to procuring electric drive compressors to minimise the emissions intensity of operations.

https://www.naturalgasworld.com/apa-signs-30-year-deal-for-hunter-gas-power-project-99068

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Freeport LNG gives update on plant blast

Freeport LNG Development L.P. has revealed that the completion of all necessary repairs and a return to full plant operations at the Freeport LNG liquefaction plant on Quintana Island, Texas, is not expected until late 2022.

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The company noted that, given the relatively contained area of the facility physically impacted by the incident, a resumption of partial operations is targeted to be achieved in approximately 90 days, once the safety and security of doing so can be assured and all regulatory clearances are obtained.

The company outlined that the incident which occurred at the plant on June 8 resulted in the release of LNG, leading to the formation and ignition of a natural gas vapor cloud and subsequent fire at the facility. Freeport LNG confirmed that there were no injuries as a result of the incident and highlighted that incident did not pose a threat to the surrounding community at any time.

The company went on to note that there was no release of any other chemicals or substances from the plant during the event and said water used to suppress the subsequent fire was captured on site and will be tested and confirmed free of any harmful contaminants before being released or removed for proper disposal. Freeport LNG also highlighted that its investigation into the cause of the incident, and what steps are necessary to safely resume liquefaction operations, is underway.

On June 8, a statement posted on Freeport LNG’s official Facebook page announced that an incident had occurred at the Freeport LNG facility on Quintana Island at about 11.40 am.

https://www.rigzone.com/news/freeport_lng_gives_update_on_plant_blast-15-jun-2022-169343-article/

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Natural gas fell after Freeport LNG terminal not to return to operations

Natural Gas yesterday, June 15, settled down by -14.62% at 573.6 after Freeport LNG said it doesn’t expect the terminal to return to entire plant operations until late 2022, with partial operations resuming perhaps in three months.

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The recent explosion at one of the biggest US liquefied natural gas export terminals sparked worries that some domestic supplies will be stuck onshore despite soaring international demand. Freeport receives about 2 billion cubic feet of gas per day or roughly 16% of US LNG export capacity. Data provider Refinitiv said average gas output in the U.S. Lower 48 states slid to 94.9 billion cubic feet per day (bcfd) so far in June from 95.1 bcfd in May.

https://in.investing.com/analysis/natural-gas-fell-after-freeport-lng-said-terminal-not-to-return-to-operations–in-200525197

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Natural Gas / LNG Utilization

In Colombia, natural gas consumption has been exceeding production

In 2020, when drought resulted in decreased hydroelectric power, Colombia imported 14.2 billion cubic feet (Bcf) of natural gas, which helped the country meet natural gas demand for electricity, according to our recently updated Colombia Country Analysis Brief.

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More than 65% of electricity generation in Colombia came from hydroelectricity in 2020, compared with more than 80% of Colombia’s annual energy generation in prior years. Because hydropower is the main source of electricity generation in Colombia, droughts can significantly affect the country’s electricity generation mix.

Most of the natural gas consumed in Colombia is produced there and used for electricity generation. However, more recently, imports have been filling the gap between domestic natural gas production and domestic demand. In 2020, 399 Bcf of dry natural gas was produced in Colombia, and 413 Bcf was consumed domestically.

Concerns about the reliability of electricity supply prompted the Colombian government to approve the country’s first liquefied natural gas (LNG) import terminal, Sociedad Portuaria El Cayao (SPEC), in November 2014. The facility came online in November 2016. The government has since proposed the Pacific Regasification LNG terminal as the country’s second LNG import facility.

The utility EPM is currently developing a new hydroelectric dam project, Ituango. The first of eight 300-megawatt generating units is under construction and is scheduled to start operation in the second half of 2022. The entire project will have a capacity of 2.4 gigawatts by its scheduled completion date in 2025. If realized, the Ituango project would be the largest hydropower plant in Colombia in terms of generating capacity. In 2020, Colombia had a total of 17 gigawatts of installed electricity generation capacity.

https://www.hellenicshippingnews.com/in-colombia-natural-gas-consumption-has-been-exceeding-production/

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Venture global inks LNG offtake deals for Louisiana projects

Venture Global LNG has signed 20-year sales and purchase agreements with German electric utility EnBW to deliver 1.5 metric tons/year of LNG from two Louisiana export projects, starting from 2026, it said June 21.

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The two sales and purchase agreements mark the first time a German customer has entered a long-term binding LNG deal with Venture Global.

From 2026, EnBW will purchase LNG from the initial phase of Venture Global’s 20mn mt/yr Plaquemines LNG export project, which received its final investment decision in May.  Following the deal, Plaquemines LNG has locked in demand for around 16.75 mt/yr of its capacity.

EnBW will also take liquefied natural gas from Venture Global’s proposed Calcasieu Pass 2 (CP2) LNG project, adjacent to the Calcasieu Pass terminal.

EnBW will evenly divide its gas supply quota from Venture Global, purchasing 750,000 mt/yr from each facilities for the duration of its contract. It becomes the latest European gas supplier to pick up Venture Global’s offer, joining Poland’s PGNiG, Spain’s Repsol, Portugal’s GALP, Italy’s Edison and BP and Shell in the UK.

https://www.naturalgasworld.com/venture-global-inks-lng-offtake-deals-for-1.5mn-mt/yr-in-total-99056

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Japanese LNG imports up 16% in May 2022

Japanese LNG imports in May were 5.76mn metric tons, up 16.3% year/year, according to the provisional data published by the country’s finance ministry on June 16. The imports were up 3.4% month/month.

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Japan’s shipments last month cost 601.4bn yen ($4.5bn), up 154.7% yr/yr. China last yearovertook Japan as the world’s largest LNG importer. In 2021, Chinese LNG imports were 78.93mn mt, up 18.3% yr/yr.

https://www.naturalgasworld.com/japanese-lng-imports-up-16-in-may-98940

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Global LNG Development

Germany: Ottawa, Berlin in talks over LNG terminal for exports to Europe

Germany is in talks with Canada over options to export liquefied natural gas (LNG) to Europe via a terminal on Canada’s east coast, a German government official told Reuters on Tuesday, June 28.

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German Chancellor Olaf Scholz discussed the issue with Canadian Prime Minister Justin Trudeau on the sidelines of the summit held by The Group of Seven economic powers (G7) leaders this week, two other sources told Reuters.

Berlin has been rushing to phase out Russian energy imports after Moscow’s invasion of Ukraine and is looking for alternative supply routes and sources of energy. It has backed the construction of two LNG terminals and has rented four floating storage and regasification units (FSRUs) as a stop-gap measure.

In May, Canadian Natural Resources Minister Jonathan Wilkinson said the Canadian government was in discussions with the companies behind two proposed east coast LNG export facilities to see how it could speed up the projects and help boost supply to Europe.

Canada, the world’s sixth-largest natural gas producer, does not have any east coast LNG facilities and only one under construction on its west coast. The second source said that Canadians were eager to develop new fields given high shale gas prices and recognised Germany’s reputation as being environmentally friendly.

Germany consumes around 100 billion cubic meters (bcm) of natural gas annually with around 55% of that coming from Russia and smaller volumes piped from Netherlands and Norway. Spanish oil major Repsol’s regasification plant on Canada’s east coast, through which it imports into the United States, could potentially have a liquefaction capacity installed to export directly into Northwest Europe.

https://q107.com/news/8953367/ottawa-berlin-lng-europe-exports/

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France’s EDF seeks up to 12 LNG cargoes per year for 2023 onwards

France’s power firm Electricite de France SA is seeking up to 12 cargoes a year of liquefied natural gas (LNG) for delivery as of 2023 and beyond and has mandated Italian energy group Edison to arrange the tenders, Edison said on Friday, June 24.

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The cargoes are sought on a delivered ex-ship (DES) basis at Dunkirk LNG terminal and are linked to the French gas hub (PEG). Submitting offers for cargoes delivered between 2023-2025 will end by close of business on July 4, 2022. For 2026 and beyond, the deadline is September 12, 2022.

https://uk.finance.yahoo.com/news/frances-edf-seeks-12-lng-155049281.html

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USA: Cheniere and Chevron sign long-term LNG SPAs

Cheniere Energy has announced that two of its subsidiaries, Sabine Pass Liquefaction, LLC (SPL), and Cheniere Marketing, LLC, have each entered into long-term LNG Sales and Purchase Agreements (SPA) with Chevron U.S.A. Inc.

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(Chevron), a wholly-owned subsidiary of Chevron Corporation. At plateau, Chevron will purchase a combined 2.0 million tpy of LNG from Cheniere subsidiaries, subject to certain conditions described below.

Under the first SPA, Chevron has agreed to purchase approximately 1.0 million tpy of LNG from SPL on an FOB basis. Deliveries under the SPA will begin in 2026, reach the full 1.0 million tpy during 2027, and continue until mid-2042. Under the second SPA, Chevron has agreed to purchase approximately 1.0 million tpy of LNG from Cheniere Marketing on an FOB basis, with deliveries beginning in 2027 and continuing for approximately 15 years. The Cheniere Marketing SPA is subject to Cheniere making a positive Final Investment Decision (FID) to construct additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage III Project. The purchase price for LNG under the SPAs is indexed to the Henry Hub price, plus a fixed liquefaction fee.

Additionally, Cheniere’s subsidiary, Sabine Pass LNG (SPLNG), and Chevron have agreed to terms for the early termination of their LNG Terminal Use Agreement (the TUA) in return for a lump sum payment to be made by Chevron to SPLNG during calendar year 2022. Termination of the TUA is subject to the consent of certain leaders to Cheniere Energy Partners, L.P., expected during 3Q22.

https://www.lngindustry.com/liquid-natural-gas/24062022/cheniere-and-chevron-sign-long-term-lng-spas/

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Sempra Infrastructure and INEOS Energy trading sign heads of agreement for LNG supply

Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), and INEOS Energy Trading Ltd., a subsidiary of INEOS, a global chemical products manufacturer, today announced they have entered into a heads of agreement (HOA)

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for the long-term supply of liquefied natural gas (LNG) from Sempra Infrastructure’s Gulf Coast LNG portfolio of projects under development in North America.

The HOA provides the framework for the negotiation and finalization of a definitive 20-year LNG sale and purchase agreement for approximately 1.4 million tonnes per annum (Mtpa) of LNG delivered free-on-board from the proposed Port Arthur LNG project or Cameron LNG Phase 2 project.

Sempra Infrastructure is working to expand its Gulf Coast LNG asset base through the simultaneous development of the Port Arthur LNG project in Jefferson County, Texas, and the proposed expansion of the Cameron LNG facility in Hackberry, Louisiana. INEOS joins the company’s growing portfolio of global energy and manufacturing companies that have recently executed HOAs for potential long-term offtake from these projects.

The Port Arthur LNG Phase 1 project has received all major permits and is anticipated to include up to two natural gas liquefaction trains capable of producing, under optimal conditions, approximately 13.5 Mtpa of LNG. In addition, the proposed Cameron LNG Phase 2 project, expected to include a single LNG train with a maximum production capacity of 6.75 Mtpa of LNG, continues to reach a number of important commercial and permitting milestones, including the launch of a competitive Front-End Engineering Design (FEED) process.

The referenced HOAs are preliminary non-binding arrangements, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects remain subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a final investment decision.

https://www.euro-petrole.com/sempra-infrastructure-and-ineos-energy-trading-sign-heads-of-agreement-for-lng-supply-n-i-24080

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Qatar: QatarEnergy, ConocoPhillips tie up for LNG expansion project

QatarEnergy on Monday, June 20, signed a deal with ConocoPhillips COP.N for the Gulf state’s North Field East expansion, the world’s largest liquefied natural gas (LNG) project, following agreements with TotalEnergies TOTF.PA and Eni ENI.MI

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Qatar is partnering with international companies in the first and largest phase of the nearly $30 billion expansion that will boost Qatar’s position as the world’s top LNG exporter. The companies will form a joint venture that will take a 12.5% stake in North Field East and ConocoPhillips will have a 25% stake in that joint venture. The arrangement is similar to that announced with Eni and implies a 3.12% stake in the overall North Field East project for ConocoPhillips.

QatarEnergy CEO Saad al-Kaabi said the partnerships with international companies would be for a period of 27 years. In all, the North Field Expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027. The fifth and sixth trains are part of a second phase, North Field South. The North Field is part of the world’s biggest gas field that Qatar shares with Iran, which calls its share South Pars.

https://www.hellenicshippingnews.com/qatarenergy-conocophillips-tie-up-for-lng-expansion-project/

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Germany’s Scholz hopes for Baltic Sea LNG terminal within months

Germany’s chancellor Olaf Scholz believes the country will have additional LNG volumes within months, following the launch of a new floating terminal at the Baltic Sea port of Lubmin.

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Berlin plans to invest up to $3.2bn on building four floating LNG import terminals over the next decade, allowing it to rapidly downscale its use of Russian gas imports. Last year, Germany was dependent on Russia for around 55% of its overall gas requirement.

Germany’s federal administration unveiled a strategy late March to become “largely independent” of Russian gas imports before mid-2024.  LNG imports have also been proposed in the ports of Brunsbuettel (8bn m3/yr), Wilhelmshaven (9.8bn m3/yr) and Stade (12bn m3/yr.)

Speaking in Berlin following energy-led political talks, Scholz stated that our goal is to get as much as possible there by the turn of the year, or a little bit later, so we can get gas quickly from wherever.

https://www.naturalgasworld.com/berlin-expects-baltic-sea-lng-project-launch-within-months-press-99058

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Iraq oil giant just shipped its first LNG cargo

Iraq has entered the market for liquefied natural gas, with its first shipment ever taking place this week. In a statement, the Iraqi Oil Ministry said that the first shipment of semi-refrigerated LNG was an achievement and quoted the managing director of Basra Gas Company, Malcolm Mayes, as saying it was a “historic moment”.

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The international LNG market has heated up in the past few months as Europe, a major importer of gas, seeks to reduce and eventually eliminate its reliance on Russian pipeline gas.

LNG has emerged as the most convenient replacement, and the United States as the biggest supplier so far. Europe has become the top destination for U.S. liquefied natural gas, but the recent explosion at Freeport LNG has compromised the security of future volumes.

Looking for diversification, the European Union also recently sealed a deal with Israel for LNG that will be produced in Israel and liquefied in Egypt before getting shipped to Europe.

Meanwhile, in more good news for LNG importers, Italy’s Eni has introduced the first feed gas into its Mozambique LNG facility, the Coral South floating LNG plant. First liquefied gas from the plant is scheduled for the second half of the year.

https://oilprice.com/Energy/Natural-Gas/This-Oil-Giant-Just-Shipped-Its-First-LNG-Cargo.html

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Coral South sends first gas to FLNG offshore Mozambique

Italy’s Eni on June 18 said that Coral Sul FLNG has received the first gas from the Coral South project offshore Mozambique. Eni is the upstream operator of Area 4 on behalf of its partners ExxonMobil, CNPC, GALP, Kogas and ENH.

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The FLNG arrived at the final operating site offshore Mozambique in early January 2022; mooring and connection to six underwater production wells were finalised in March and May 2022, respectively.

The Coral South project achieved a final investment decision in 2017; FLNG fabrication and construction activities started in September 2018 and were completed in 38 months as planned, with an FLNG sail away, from South Korea to Mozambique, in November 2021.

The Coral Sul FLNG has a gas liquefaction capacity of 3.4mn metric tons/year and will put in production 450bn m3 of gas from the Coral reservoir, located in the offshore Rovuma basin. Coral-Sul FLNG is the first floating LNG facility ever deployed in the deep waters of the African continent.

https://www.naturalgasworld.com/coral-south-sends-first-gas-to-flng-offshore-mozambique-98980

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EU, Egypt, Israel agree to export Israeli LNG to Europe

Egypt, Israel and the European Union signed a gas deal Wednesday, June 22 in which Egypt will export Israeli liquified natural gas to Europe via two Egyptian LNG plants. The memorandum of understanding was inked at the East Mediterranean Gas Forum in Cairo, expanding upon gas cooperation among the three partners.

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Representatives of participants at the gas forum applauded announcement of the deal. Egypt is the only country in the gas forum to have plants that can produce liquified natural gas. Egyptian political sociologist Said Sadek told VOA that the announcement of the deal formalized cooperation among the EU, Egypt and Israel that has been going on for several months.

Egyptian President Abdel Fattah el-Sissi told a joint press conference with European Commission President Ursula von der Leyen that the agreement signed in Cairo was part of what he called “increasing cooperation between Egypt and the EU in numerous fields,” amid a difficult global political and economic period.

Sissi also thanked Egypt’s political partners, including the EU, for helping to “mitigate the effects of increasing food prices and the current crisis that is affecting many developing countries.” Von der Leyen said during the press conference that the EU would contribute financially and technologically to help Egypt with food production.

https://www.voanews.com/a/eu-egypt-israel-agree-to-export-israeli-liquified-natural-gas-to-europe/6618920.html

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South Korea’s KOGAS signs MoU with France’s TotalEnergies to enhance LNG trading

South Korea’s state run Korea Gas Corp (KOGAS) signed on Wednesday, June 15, a memorandum of understanding (MoU) with France’s TotalEnergies to enhance liquefied natural gas (LNG) trading and optimization as it seeks to boost the Asian country’s energy security.

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The agreement will create a formal framework for long-term cooperation to discuss and explore the development of a joint business relationship the two company’s resources and strengthen their business capabilities, KOGAS said in a statement sent to Reuters. The two companies, directly and through their affiliates Kogas International (KI) and TotalEnergies Gas and Power Asia (TEGPA), have a strong track record of cooperation in LNG procurement for the Korean market and in optimising Kogas volumes out of Sabine Pass in the United States. South Korea’s consumption of LNG is expected to remain robust as the country, which relies heavily on gas for power generation, seeks to move away from coal and nuclear power.

https://uk.finance.yahoo.com/news/south-koreas-kogas-signs-mou-142301316.html

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GO TOP

LNG as a Marine Fuel/Shipping

Shell and CMA CGM Sign LNG fuel supply agreement in Singapore

Shell and CMA CGM have signed a multi-year agreement on the supply of LNG fuel for CMA CGM ships in the Port of Singapore.

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The LNG bunkering will be performed by FueLNG, a joint venture between a unit of Shell in Singapore and Keppel Offshore & Marine (Keppel O&M), utilizing Singapore’s first LNG bunkering vessel, FueLNG Bellina, beginning in the second half of 2023. A second 18,000 cbm capacity LNG bunker vessel is planned to come into service in 2023. Ship-to-ship bunkering allows for simultaneous operation (SIMOPS) while in port.

CMA CGM, which started investing in LNG fuel since 2017, is in the process of constructing the biggest fleet of dual-fuel LNG containerships in shipping. The company recently ordered 10 additional LNG-powered ships, bringing its orderbook to 69 vessels, the majority of which are planned for LNG operation (CMA CGM also ordered six methanol-fueled ships, it’s first).

Shell said this latest supply agreement corresponds to CMA CGM’s 13,000 TEU ships.

Additionaly, the two companies have also signed a Memorandum of Understanding (MoU) to advancemen of low-carbon marine fuels, such as liquid biofuels, bio/e-methane (to LNG), bio/e-methanol, for new and existing vessels; technology related to LNG and hydrogen blending, methane slip abatement, and fuel cells; voluntary and mandated trading of carbon credits; and joint advocacy for net zero-emissions policies.

https://gcaptain.com/shell-and-cma-cgm-sign-lng-fuel-supply-agreement-in-singapore/

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SunRui signs LNG FGSS supply contract with DSIC for six newbuildings

On 15th June 2022, SunRui Marine Environment Engineering Co., Ltd. (SunRui) held the contract signing ceremony of six marine LNG fuel gas supply system (FGSS) with Dalian Shipbuilding Industry Corporation (DSIC).

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The FGSS shall be delivered by SunRui to DSIC in 2023, for six newbuilding 16000TEU LNG powered container vessels. The vessels were ordered by one of the world’s largest container companies and designed to be equipped with the largest WinGD low-speed dual-fuel engines. The CMA CGM Group Orders 22 New Vessels

SunRui, as a subsidiary and research institute of China State Shipbuilding Corporation (CSSC), has realized the plight of marine industry and started own research and development from 2017. After rounds of evaluations during FGSS selection of the newbuilding 16000TEU container project, SunRui Gaslink FGSS has won the trust and recognition from both DSIC and owner with its reliable performance.

Moreover, SunRui has built its own land-based FGSS testing facility in Yantai/China, for combination of research, simulation and actual operation.

https://www.transportandlogisticsme.com/smart-sea-freight/sunrui-signs-lng-fgss-supply-contract-with-dsic-for-six-newbuildings

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South Korea: KSOE scores order for LNG carrier duo

South Korean shipbuilding giant Korea Shipbuilding & Offshore Engineering (KSOE) has received an order for the construction of two liquefied natural gas (LNG) carriers

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The order, valued at KRW 617.3 billion (about $477 million), has been placed by an undisclosed Oceanian shipowner. The construction work will be performed by KSOE’s affiliate Hyundai Samho Heavy Industries (HSHI). The newbuilds are slated for delivery by April 2026, KSOE said in a stock exchange filling.

This April, the South Korean major also secured orders from undisclosed European shipping firms to build two LNG carriers of identical size under different contracts. The ships will also be constructed by KSOE’s unit HSHI. KSOE’s orderbook currently stands at 111 ships worth $13.54 billion, according to Yonhap News Agency. With the new orders placed, the firm achieved 77.6 percent of its yearly order target of $17.44 billion. To remind, in April, HSHI also inked a contract with Liberia-based and Middle Eastern shipping companies to build two LNG-powered pure car and truck carriers (PCTCs) and six containerships.

The six 7,900 TEU boxships and the two 7,500 CEU PCTC are slated for delivery in the first half of 2025.

https://www.offshore-energy.biz/ksoe-scores-order-for-lng-carrier-duo/

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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane

Eni and Toyota put into operation first hydrogen station in Venice

Eni has opened the new San Giuliano Enistation in Mestre, Venice, in the presence of Venice Mayor Luigi Brugnaro, Eni Energy Evolution Chief Operating Officer Giuseppe Ricci and Toyota Motor Italia CEO Luigi Ksawery Luca. This is the first public-access service station that allows to refuel hydrogen in an urban area in Italy.

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The system is equipped with two dispensing points with a capacity of over 100 kg/day, which can refuel vehicles in about 5 minutes and buses too. The station, which was fitted with innovative safety and fire-fighting equipment, also supplies traditional fuels and electrical recharging services.

Following the agreement signed in 2019 between the Municipality & Metropolitan City of Venice, Eni and Toyota, the car manufacturer will put a minimum of 10 Toyota Mirai on the road. Three were already delivered to Mayor Brugnaro and will be used by the Municipality of Venice. Three other vehicles will become part of the fleet dedicated to the KINTO car-sharing service in the city of Venice. The remainder will be delivered in the coming months.

https://www.ngvjournal.com/s1-news/c4-stations/eni-and-toyota-put-into-operation-first-hydrogen-filling-station-in-venice/

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Tokyo Gas begins synthetic methane trial using green hydrogen

Tokyo Gas Co Ltd., Japan’s top city gas supplier, said it has begun a pilot programme of methanation, a technology to help decarbonise city gas, and plans to use green hydrogen sourced from renewable energy for the trial by next March.

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Methanation converts hydrogen and carbon dioxide (CO2) into synthetic methane, an alternative for the main component in natural gas. It is considered a way of using CO2 as a raw material that could help the company achieve carbon neutrality in 2050. Methane can be used in many ways, including as a fuel to generate heat and electricity in power plants or at home, and as a raw material for the chemical industry.

For the first-phase trial aimed at producing 12.5 normal cubic metres per hour (Nm3/h) synthetic methane, Tokyo Gas has installed Hitachi Zosen’s 7004.T methanation device at its research centre in Yokohama, near Tokyo, and begun producing the fuel from hydrogen and CO2 procured from outside.

It plans to install a water electrolysis device from Britain’s ITM Power ITM.L and use renewable-based hydrogen to produce synthetic methane by March, Hisataka Yakabe, Tokyo Gas’s executive officer, said during a media tour of the facilities. It will also use CO2 emitted and captured from nearby factories or its customers.

Tokyo Gas is aiming to replace about 1% of city gas volume with synthetic methane by 2030. It will scale up the trial in late 2020s to produce 400 Nm3/h, followed by an overseas demonstration in 2030 to make 20,000 Nm3/h.

Tokyo Gas is also trying to build global supply chains of synthetic methane, conducting feasibility studies in Malaysia with Sumitomo Corp 8053.T and Petronas, and in North America and Australia with Mitsubishi Corp.

https://www.hellenicshippingnews.com/tokyo-gas-begins-synthetic-methane-trial-using-green-hydrogen/

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Bill Gates-Led fund backs sartup with cheaper way to move hydrogen

A hydrogen molecule is tiny. So tiny, in fact, that trying to store and transport it via existing tanks and pipes can end up causing cracks in steel. If hydrogen is to become a clean fuel of the future, urgent technological solutions are needed to keep it in place and move it at will.

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Enter H2SITE, a Spanish startup, that promises to do just that. Its secured 12.5 million euros ($13.23 million) in investments from Bill Gates-led Breakthrough Energy Ventures, French utility Engie SA and Norwegian oil giant Equinor ASA.

While there are existing methods to store and transport hydrogen, they can be prohibitively expensive, especially compared to moving around its carbonaceous cousin natural gas. H2SITE says that transporting hydrogen could cost as much as three times the cost of hydrogen production. The startup offers to provide that service at a fraction of a cost, if its technology can scale.

There are two modes in which H2SITE’s technology works. First is to use existing natural-gas pipelines to move hydrogen from where it’s produced to where it is consumed. These pipes can carry about 30% hydrogen when mixed with natural gas. The idea is that diluted hydrogen will be less corrosive on existing steel infrastructure. Freshly produced hydrogen is injected into a pipeline containing natural gas, close to where hydrogen is made, and then recovered using H2SITE’s filter where it needs to be consumed.

H2SITE’s second mode of operation causes it to become a cracker for ammonia or methanol. All that needs to be done, according to Andrés Galnares, H2SITE’s chief executive officer, is to increase the number of palladium membranes and tweak the temperature and pressure at which the reactor is run.

https://www.advisorperspectives.com/articles/2022/06/28/bill-gates-led-fund-backs-startup-with-cheaper-way-to-move-hydrogen?topic=smart-beta

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Hydrogen-based green mobility plan under deployment in western France

HRS, European designer and manufacturer of hydrogen refueling stations, has received a new order from SYDEV, the Vendée regional energy board, to deliver and install a green hydrogen refueling station in

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Sables-d’Olonne, in western France, a region that is a pioneer in the area of transport decarbonization. The SYDEV is rolling out a bold green mobility program aimed at developing a local ecosystem for the production and distribution of 100% green hydrogen that will ultimately cover the whole region.

The first multi-energy station under this program (green power, green hydrogen and bio-CNG) was successfully commissioned in La Roche-sur-Yon during the second half of 2021. HRS supplied and installed the hydrogen refueling station as part of a project coordinated by ENGIE Solutions.

The SYDEV has renewed its confidence in the ENGIE Solutions and HRS consortium for the development and technical operation of the new filling station that will be commissioned in early 2023 in Sables-d’Olonne. The station will be opened initially for company fleets, then later for the public.

The station’s modular design will allow it to meet the growing demand for hydrogen fuel and cover expected future requirements up until 2031. Other stations as yet unallocated will be installed at a later date under the same regional project coordinated by SYDEV.

https://www.ngvjournal.com/s1-news/c4-stations/hydrogen-based-green-mobility-program-under-development-in-western-france/

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Sweden: Volvo Trucks trials new zero-emission hydrogen fuel cell vehicle

To decarbonize transport, Volvo Trucks already offers battery electric trucks and trucks that run on renewable fuels, such as biomethane. In the second half of this decade, a third CO2-neutral option will be added to its product portfolio –

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fuel cell trucks powered by hydrogen. Volvo has started to test vehicles with this technology. Customer pilots will start in a few years from now and commercialization is planned for the latter part of this decade.

The hydrogen fuel cell trucks, which only emit water vapor and produce their own electricity onboard, will have an operational range comparable to many diesel trucks – up to 1,000 km – and a refueling time of less than 15 minutes. The total weight can be around 65 tons or even higher, and the two fuel cells have the capacity to generate 300 kW of electricity onboard.

The fuel cells will be supplied by cellcentric – the joint venture between the Volvo Group and Daimler Truck AG. Cellcentric will build one of Europe’s largest series production facilities for fuel-cells, specially developed for heavy vehicles.

Fuel cell technology is still in an early phase of development and there are many benefits with the new technology, but also some challenges ahead. One of them is large-scale supply of green hydrogen (produced by using renewable energy sources, such as wind, water and sun). Another is the fact that refueling infrastructure for heavy vehicles is yet to be developed.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/volvo-trucks-trials-new-zero-emission-hydrogen-fuel-cell-vehicle/

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