NGS’ NG/LNG SNAPSHOT July 16-31, 2024

NGS’ NG/LNG SNAPSHOT July 16-31, 2024

National News Internatonal News

NATIONAL NEWS

City Gas Distribution & Auto LPG

IGL inaugurates CNG station in Hapur, Uttar Pradesh

In a recent development, Indraprastha Gas Limited (IGL) has inaugurated its compressed natural gas station on Hapur-Kithore road in Hapur, Uttar Pradesh. It is likely to cater to the fuel requirement of around 2,000 to 2,500 vehicles.

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IGL is an Indian natural gas distribution company that supplies natural gas as cooking and vehicular fuel. Established in 1998, the company operates primarily in Delhi-national capital region (NCR) and its neighbouring cities.

https:// cgdindia.net

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GAIL Gas signs agreement for domestic PNG supply in Bondel, Dakshina Kannada GA

GAIL Gas Limited has signed agreement with Banker’s Institute of Rural Development (BIRD) of the National Bank for Agriculture and Rural Development (NABARD) for supply of domestic piped natural gas (PNG) to employee quarters in Bondel in Dakshina Kannada geographic area (GA) of Karnataka.

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Besides, it is planning to provide PNG connections to around 0.35 million households in the GA by 2032. Initially, it will provide connections in Surathkal, Mukka, Mulki, Kulai and Bondel areas. Additionally, it is planning to establish 100 compressed natural gas (CNG) stations in the GA by 2030.

cgdindia.net/gail-gas-signs-agreement-for-domestic-png-supply-in-bondel-dakshina-kannada-ga/#:~:text=GAIL%20Gas%20Limited%20has%20signed,area%20(GA)%20of%20Karnataka.

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Maharashtra to embrace LNG buses, govt sanctions Rs 40 crore

MUMBAI: The state government has sanctioned the Maharashtra State Road Transport Corporation (MSRTC) a substantial sum of Rs 40 crore for the conversion, infrastructure, and maintenance of vehicles to be operated on Liquefied Natural Gas (LNG) as an alternative fuel.

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The bus corporation intends to convert approximately 5,000 diesel buses to LNG-powered vehicles. An MSRTC spokesperson informed TOI on Sunday that the government has issued a Government Resolution (GR), allocating the necessary funds. The spokesperson stated, “The government has provided funds for two LNG buses and for establishing infrastructure at depots for refilling stations and securing the LNG supply. We plan to have the first LNG refuelling outlet at a depot near the Maharashtra-Gujarat border as we are currently obtaining the supply from a Gujarat port. We will progressively set up more outlets for other buses at depots across the state.”

LNG vehicles have 30% lower CO2 emissions and 90% lower PM emissions compared to diesel. The existing diesel vehicles can be retrofitted gradually to utilize LNG, which can provide a driving range of 600-1000 kilometres in a single fill, giving it an advantage over its more well-known equivalent, Compressed Natural Gas (CNG). Furthermore, to cater to the demand from 54 lakh daily commuters of MSRTC, work orders were recently issued for the procurement of 2,475 new diesel buses for the fleet. These buses are anticipated to join the fleet within the next three months, according to sources in MSRTC.

Shrirang Barge, the general secretary of Maharashtra ST Karmachari Congress, asserted, “We cannot be complacent with around 2,500 new diesel buses as there is an urgent need for 2,000 additional buses to accommodate the increasing demand, and the fleet size should exceed 20,000 across Maharashtra.”

https://timesofindia.indiatimes.com/city/mumbai/maharashtra-to-embrace-lng-buses-govt-sanctions-rs-40-crore/articleshow/111909227.cms

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L&T bags ‘significant’ offshore pipeline order from ONGC

The order involves works across India’s west coast offshore fields of the ONGC, the stock filing said. Engineering major Larsen & Toubro’s (L&T) hydrogen energy arm has secured an order worth between Rs 1,000-2,500 crore from ONGC for its eighth phase of the Pipeline Replacement Project off India’s west coast, the $27-billion multinational enterprise said in an exchange filing on July 1.

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The order, won by L&T’s subsidiary L&T Energy Hydrocarbon (LTEH), involves engineering, procurement, construction, installation & commissioning (EPCIC) of 129-km subsea pipelines and associated modification works across India’s west coast offshore fields of the ONGC, the stock filing said.

“This order reflects ONGC’s continued confidence in L&T, and this emanates from our track record of successfully delivering complex offshore projects. This order further demonstrates L&T’s unwavering commitment to India’s energy requirement,” said Subramanian Sarma, whole-time director & president, energy, L&T.

The stock price of L&T was trading 0.83 percent lower at Rs 3,519.05 on NSE at 12:04 pm.

Meanwhile, the multinational conglomerate last week had said it is experiencing a ‘severe’ shortage of skilled labor across various projects, attributed to factors such as extreme weather conditions and disruptions caused by elections, according to managing director SN Subrahmanyan. Additionally, he added that the firm is currently short of around 25,000-30,000 laborers.

https://www.moneycontrol.com/news/business/companies/lt-bags-significant-offshore-pipeline-order-from-ongc-12759460.html

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PNG network expansion planned across eight cities of Rajasthan

Around 2,000 km piped natural gas (PNG) network is likely to be laid across the eight cities of Jaipur, Kota, Alwar, Jodhpur, Udaipur, Bundi, Ajmer and Pali in Rajasthan. About 0.1 million new domestic PNG connections are likely to be provided

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Currently, there are 309,443 domestic, 465 industrial PNG connections and 364 operating compressed natural gas (CNG) stations in the state.

https://cgdindia.net/

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Natural Gas/ Pipelines/ Company News

 

Maharashtra Natural Gas Limited Wins Prestigious Global EHS Best Practices Award at Bangkok, Thailand

Maharashtra Natural Gas Limited (MNGL) has been honored with the prestigious EHS (Environment, Health, and Safety) Best Practices Award at a grand ceremony held at Bangkok on 27th June 2024. This award acknowledges MNGL’s exceptional dedication to putting excellent EHS standards and practices into the natural gas industry.

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Mr. Sanjay Sharma, Director (Commercial) of MNGL & Mr. Sagar Varma Chief General Manager (HSE), MNGL attended the ceremony and accepted the award. Upon accepting the award, Mr. Sanjay Sharma further conveyed his thanks and delight, saying, “This recognition is a testament to the hard work and dedication of our entire team. At MNGL, we prioritize the safety and well-being of our employees, the community, and the environment. This award motivates us to continue our journey towards excellence in EHS practices.’’

The award ceremony, held at Bangkok, was attended by many industry leaders and professionals from around the world to celebrate achievements in environmental stewardship, health, and safety. MNGL’s recognition at this international platform underscores its role as a trailblazer in the natural gas industry and its commitment to sustainable development. As MNGL continues to expand its operations, the company remains steadfast in its mission to uphold the highest EHS standards, ensuring a safer and greener future for all stakeholders.

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About 105 km pipeline laid in Tripura under North-East Natural Gas Pipeline

About 105 km pipeline has been laid in Tripura under the North-East Natural Gas Pipeline Grid. Besides, work on laying the remaining 148 km pipeline in the state is likely to be completed by March 2025.

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The North-East natural gas pipeline grid involves development, operation and maintenance (O&M) of a natural gas pipeline connecting eight states viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. It is being implemented by Indradhanush Gas Grid Limited (IGGL), a joint venture (JV) company of Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC), GAIL (India) Limited, Oil India Limited (OIL) and Numaligarh Refinery Limited (NRL). It entails an investment of Rs 92.65 billion.

https://cgdindia.net/

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HPCL celebrates 50 years of formation with planting around 5.5 lakh trees

Mumbai: Hindustan Petroleum Corporation Limited (HPCL) celebrated its Golden Jubilee today with a grand event that highlighted its commitment to environmental sustainability through the plantation of around 5.5 lakh trees. The event, themed ‘Panchatattvon Ka Maharatna,’ honoured the five great elements—Earth, Fire, Wind, Water, and Ether—that symbolise the foundation and growth of HPCL over the past 50 years.

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Throughout the past year, HPCL’s Strategic Business Units (SBUs) and Departments worked diligently to implement initiatives inspired by these five elements, benefiting HPCL’s stakeholders, including customers, employees, ex-employees, society, and, most importantly, the environment.

A key highlight of these initiatives was the ambitious commitment to plant 5 lakh trees under the element Earth. During the event, Pushp Kumar Joshi, Chairman & Managing Director (C&MD) unveiled the Tree Portal, which showcased the progress and impact of this green journey. The plantation of over 5.4 lakh trees in a year marks a significant step towards achieving Net Zero, as these trees are projected to absorb 10,500 tonnes of carbon dioxide in the coming years.

On the occasion, a special cover by India Post was released, celebrating HPCL’s rich heritage and milestones. The cover was launched by notable dignitaries from India Post, including Dr Ajinkya Kale, Director of Postal Service Mumbai Region, and Dr Sudhir Jakhere, Assistant Postmaster General (BD).

The event also celebrated HP Sampark, HPCL’s employee volunteering platform, which has made a profound difference through 1,035 initiatives, involving 58,000 HP family members, and touching nearly 350,000 lives. Special recognition was given to the teams of Ranchi LPG and Paradeep Terminal for their outstanding efforts in the recent Blood Donation Drive, which resulted in the collection of 1,081 units of blood.

CMD expressed heartfelt gratitude to the dedicated employees, ex-employees, and their families for their unwavering commitment and contributions, which have been instrumental in HPCL achieving this remarkable 50-year milestone.

https://bureaucratsindia.in/news/cpses/hpcl-celebrates-50-years-of-formation-with-planting-around-55-lakh-trees#:~:text=HPCL%20celebrates%2050%20years%20of%20formation%20with%20planting%20around%205.5%20lakh%20trees,-The%20event%2C%20themed&text=Mumbai%3A%20Hindustan%20Petroleum%20Corporation%20Limited,of%20around%205.5%20lakh%20trees.

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Megha Gas signs first gas sales agreement for industrial PNG supply in Chhindwara, Madhya Pradesh

n a notable development, Megha City Gas Distribution Private Limited has signed its first gas sales agreement in Chhindwara district of Tamil Nadu. It has been signed with Sunder Food Products for supply of industrial piped natural gas (PNG).

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Sunder Food Products would utilise PNG as fuel in its manufacturing unit at Boregaon. 

Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised Megha Gas to lay city gas distribution (CGD) infrastructure in 62 districts across 22 geographic areas (GAs) in nine states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Odisha, Maharashtra, Madhya Pradesh, Punjab and Uttar Pradesh.

https://cgdindia.net/about- Megha Gas signs first gas sales agreement for industrial PNG supply in Chhindwara, Madhya Pradesh

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India’s natural gas consumption rises 7% YoY in June amid higher demand

In June, India consumed 5,594 MMSCM (million metric standard cubic metre) of natural gas, which was 7.1 percent higher than the previous year. Meanwhile, India’s gas consumption rose 3.8 percent in the current financial year till June 2024. India’s natural gas consumption climbed by seven percent year-on-year in June amid higher demand of the cold fuel in summer months, compared to only 0.3 percent growth in the previous month.

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In June, India consumed 5,594 MMSCM (million metric standard cubic metre) of natural gas, which was 7.1 percent higher than the previous year, showed oil ministry data. Meanwhile, India’s gas consumption rose 3.8 percent in the current financial year till June 2024.

The month of June posted significant higher consumption growth than May and April as gas consumption rose by 0.3 percent and 6.4 percent, respectively. India consumed 5,708 MMSCM of natural gas in May and 5,515 MMSCM in April.

To meet higher demand, LNG (liquefied natural gas) imports in June were 11.3 percent higher at 2648 MMSCM. Domestic gas production also increased by 2.9 percent year-on-year in June

The rise in consumption comes on back of higher gas demand from the power sector in the summer months. With the onset on monsoons in India, gas demand is expected to slow down in the coming months.

Oil imports

India’s oil import bill came in at $11.1 billion in June, while LNG import bill was at $1.1 billion in the month. The net oil and gas import bill was higher at $10.2 billion in June, as compared to net import bill of $9.2 billion in the same month last year. The higher import bill could be linked to elevated crude oil prices in June.

According to oil ministry data, consumption of petroleum products in June recorded a growth of 2.6 percent at 20 million metric tonnes (MMT). The petroleum products’ consumption grew by 3.4 percent between April to June of current financial year at 60.9 MMT led by 11.4 percent growth in aviation turbine fuel (ATF), 7.1 percent in petrol, 1.6 percent in diesel and 5 percent in LPG.

Additionally, blending of ethanol in petrol reached 15.9 percent in June, higher than previous month. The ministry of petroleum and natural gas is spearheading the ethanol blending programme in India with the aim of achieving 20 percent blending by 2025.

https://www.moneycontrol.com/news/business/indias-natural-gas-consumption-rises-7-yoy-in-june-amid-higher-demand-12770715.html

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IGL reports net profit of `401.45 cr for April-June quarter of FY25

New Delhi: Indraprastha Gas Limited (IGL), the largest CNG distribution company of the country, operating City Gas Distribution networks across 30 districts in eleven geographical areas across four states of Delhi, Uttar Pradesh, Haryana and Rajasthan on Wednesday announced its financial results for Q1 of FY25, while continuing the growth momentum.

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As per the unaudited Q1 results announced by the company, the net profit for the quarter ending June 2024 is Rs 401.45 crore as compared to Rs 438.50 crore in corresponding quarter of last fiscal.

However, the net profit has increased sequentially from Rs 379.58 crore in Q4 of FY24 to Rs 401.45 crore in Q1 of FY25.

IGL registered an overall sales volume growth of 5.3 per cent over the corresponding quarter in the last fiscal, with the average daily sale going up from 8.20 mmscmd to 8.64 mmscmd.

Product wise, CNG recorded sales volume growth of 4.6 per cent, while PNG recorded sales volume growth of 7.4 per cent in the quarter as compared to corresponding quarter last year.

Accordingly, the total gross sales value during the quarter has moved to Rs 3,877.12 crore as compared to Rs 3,742.31 crore during the first quarter of FY25, thereby showing a growth of 3.6 per cent.

These are standalone results for IGL only and do not include profits accruing from associate companies.

https://www.millenniumpost.in/business/igl-reports-net-profit-of-40145-cr-for-april-june-quarter-of-fy25-573209#google_vignette

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Petronet, Shell, Adani-Total push back against PNGRB’s attempt to regulate them

Liquefied natural gas (LNG) operators Petronet LNG, Shell and Adani-Total are pushing back against the attempts of the Petroleum and Natural Gas Regulatory Board (PNGRB) to regulate them. The board unveiled the draft regulations for establishing and operating LNG terminals last month. Terminal operators, big gas consumers and others have now offered their views on the draft.

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Terminal operators have questioned several provisions in the draft mainly on the grounds that those are not in sync with the parent legislation, PNGRB Act, which lays out the regulator’s powers.

“PNGRB purports to make the acceptance of an application (for new capacity) and subsequent registration contingent on an entity being able to provide a ‘credible business plan for utilization of capacity in the terminal’ and ‘detailed evacuation plan’. It is Petronet LNG’s view that this criterion finds no basis in the PNGRB Act,” Petronet LNG, the country’s largest LNG terminal operator, said in its comments to the regulator.

The draft said that the regulator’s greenlight for new capacity would hinge on one or more of these criteria such as promoting competition among operators, avoiding infructuous investment, ensuring adequate national gas supply, protecting customer interest and availability of gas evacuation facility from the terminal. The regulator’s concern has been that most terminals are underutilised and, therefore, new capacity addition needs closer scrutin

“PNGRB proposes to ‘approve the completion schedule’ and ‘monitor the progress’ of the LNG terminal and impose a penalty up to 5% of performance bank guarantee for each default on behalf of the entity. This is inconsistent with the PNGRB Act,” Petronet LNG said.

Dhamra LNG, a subsidiary of Adani Total Pvt Ltd, said the “requirement to share commercially sensitive information” such as project cost, regasification tariff and capacity allocation are “not consistent” with the PNGRB Act. “An authorization regime for LNG terminals may indeed negatively impact healthy competition and create monopolistic behaviour by the existing terminals,” Dhamra LNG further said.

Shell opposed the provision of common carrier capacity in LNG terminals, adding that such provisions “would create avoidable disincentives” for foreign investments in the energy sector. “As a precursor to regulations of terminals, it is essential to ensure effective, efficient and non-discriminatory access to pipelines (common or contract carrier natural gas pipeline and city or local natural gas distribution network),” it said,

Big gas consumers like Bharat Petroleum Corp (BPCL), AG&P City Gas and steelmaker AM/NS also opposed the regulator’s move. “Entity should not be asked to approve a detailed feasibility report, plant capacity utilisation, evacuation plan, etc., because (the) entity itself is risking his capital to invest (in the) LNG terminal,” BPCL said.

AG&P said the “regulation of LNG terminal at this stage, with the burden of administrative processes, scrutiny & fees, compliances, etc., may discourage the new entrants from setting up new LNG terminals in the country”.

AM/NS said, “The Act does not confer any power to the board to allow/disallow any capacity expansion of the LNG terminal”.

https://www.msn.com/en-in/news/other/petronet-shell-adani-total-push-back-against-pngrb-s-attempt-to-regulate-them/ar-BB1q1EH6?item=flightsprg-tipsubsc-v1a?s

 

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New reservoir tested at Assam’s Dirok gas field with 6 mscf of gas per day: Hardeep Puri

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, on Friday announced a major milestone achieved at the Dirok Field, located in the ON-94/1 block at Margarita in the Tinsukia district of Assam.

Operated by the Hindustan Oil Exploration Company (HOEC) in partnership with Oil India Limited (OIL) and the Indian Oil Corporation Limited (IOCL), the field has successfully tested a new reservoir, Sand-9, in well Dirok-1, which flowed at an impressive rate of 6 million standard cubic feet of gas per day.

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The ongoing production testing aims to revise and add these volumes to the proven reserves of the Dirok Field.

Hardeep Singh Puri, posted on X, “Inspired by the vision of our Hon’ble PM @narendramodiJi, our Oil & Gas sector is striving hard to discover new finds and monetise existing discoveries. In a significant development, Dirok Field, located in the ON-94/1 block at Margarita in the Tinsukia district of Assam and operated by #HOEC with OIL and IOCL has achieved a milestone. A new reservoir called Sand-9 was tested in well Dirok-1 which flowed 6 million standard cubic feet of gas per day. Further production testing is ongoing, based on which, the volumes will be revised and added to the proven reserves of Dirok Field. @PMOIndia @PetroleumMin @ONGC_ @OilIndiaLimited @IndianOilcl @DghIndia”

The Dirok gas field is located in block AAP-ON-94/1 B in the Tinsukia District of Assam.

The field is a joint venture (JV) operation, with HOEC holding a 26.88 per cent stake, Oil India Limited (OIL) holding 44.09 per cent, and the Indian Oil Corporation Limited (IOCL) holding 29.03 per cent.

This collaborative effort operates under a production-sharing contract initially signed in June 1998. Exploration activities in the Dirok block commenced in November 2000, leading to the discovery of substantial gas reserves.

The Ministry of Petroleum and Natural Gas granted commercial approval for the Dirok discovery, and production from the gas field began in August 2017. The field is estimated to hold 11.88 million metric barrels of oil equivalent, highlighting its significant potential to contribute to India’s energy needs.

The Dirok Field is currently undergoing Phase II development, which includes drilling three new development wells and laying a 35km pipeline extending to Duliajan. This development aims to increase gas production capacity from 35 million standard cubic feet per day (mmscfd) to 55 mmscfd.

Upon completion of these developments, HOEC will have direct access to the North East market, reducing dependency on transportation partners and enhancing the efficiency and reach of gas distribution.

https://economictimes.indiatimes.com/industry/energy/oil-gas/new-reservoir-tested-at-assams-dirok-gas-field-with-6-mscf-of-gas-per-day-hardeep-puri/articleshow/111854768.cms?from=mdr

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Policy Matters/ Gas Pricing/ Others

Govt targets three-fold rise in natural gas consumption to 500 MMSCMD by 2030, boosts ancillary industries: Puri

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New Delhi: Union Minister for pertroleum and natural gas, Hardeep Singh Puri announced the government’s ambitions plan to significantly boost India’s natural gas consumption to 500 million  metric standard cubic meters per day MMSCMD by 2030, up from the current 18.5 MMSCMD. These three-fold increase is part of a comperehensive strategy aimed at enchancing the country’s energy security and fostering the growth of ancillary industries reliant  on natural gas

Speaking at the concluding ceremony for the 12th City Gas Distribution (CGD) bidding organized by the Petroleum and Natural Gas Regulatory Board (PNGRB) Puri underscored the importance of this expansion for achieving 100% coverage of the country’s area under the CGD network. The event saw the distribution of letter of intent to successful bidders, marking a significant step towards realizing the government’s vision.

“The current measures planned by the Government shall not only lead to a three-fold increase in Natural Gas consumption from 185 MMSCMD to 500 MMSCMD by 2030 but also help in promoting ancillary industries dependent on Natural Gas,” Puri said.

The minister highlighted the government’s commitment to investing $67 billion in the natural gas sector over the next six years. This investment aims to provide natural gas to end consumers at stable prices and is supported by policy and regulatory frameworks that promote the use of natural gas across the country.

The 12th CGD Bidding Round was particularly noteworthy for offering 8 Geographical Areas covering six North East States – Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, Mizoram- and the Union Territories of Jammu & Kashmir and Ladakh, encompassing a total of 103 Districts. This round is anticipated to bring an investment of Rs. 41,000 crore, generating considerable employment opportunities and furthering the development of the CGD Network across the nation.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/govt-targets-three-fold-rise-in-natural-gas-consumption-to-500-mmscmd-by-2030-boosts-ancillary-industries-puri/108220840?utm_source=top_news&utm_medium=tagListing

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Govt to roll out new ship building policy soon, aims to put India in top 10 list

New Delhi, July 4 (IANS): The Government will come up with a new Ship Building and Ship Repair Policy soon under the 100-day action plan with the aim of taking India into the ranks of the top 10 countries in the sector by 2030 and the top 5 by 2047, Secretary, Ministry of Ports, Shipping, and Waterways, T.K. Ramachandran, said on Thursday.

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“If the tremendous demand stemming from the needs of the Indian shipping market are adequately targeted by Indian shipyards, it may result in an opportunity to the extent of over $237 billion (Rs 20 lakh crore) by 2047,” according to an official statement.

Ramachandran chaired a workshop on Thursday that was attended by more than 100 participants from 50 organisations including various government ministries, departments, shipping operators, and public sector as well as private shipyards.

Strategies for revitalising the shipbuilding and repair ecosystem within India and aligning it with India’s ambitious Maritime India Vision 2030 (MIV 2030) and Amrit Kaal Vision 204 were discussed at the meeting. MIV 2030 has set a bold target to elevate India’s global ranking in shipbuilding and ship repair from over 20th place to the top 10 and an ambitious goal has been set for the top 5 position, as outlined in the Amrit Kaal Vision 2047.

“The inputs and insights that have been received from the distinguished voices of the Industry were noted and the Ministry hopes to address the various issues that were raised, incorporate them into their 100 days agenda, and suitably help develop and nurture the ecosystem to achieve the ambitious targets,” according to an official statement issued after the workshop.

“Through this interactive workshop, MoPSW aims to present specific policies based on stakeholder inputs and invite further valuable contributions to drive demand and capacity growth in these sectors,” Ramachandran said.

The idea of the event was to bring the demand generators and the suppliers/builders onto a collaborative common platform to formulate ideas to ensure that the large demand from the Indian shipping industry becomes an opportunity for the shipbuilding industry.

In the event, the stakeholders deliberated upon the limitations of Indian shipyards, the incentives needed, both on the supply and demand sides, and the assistance that could be provided by the MoPSW to facilitate the same.

“Notable advancements made in the development of indigenous low-emission or zero-emission ships/vessels by Indian shipbuilding companies showcase our potential to lead the world in safe sustainable and green shipbuilding,” the official statement said.

MoPSW is working on an integrated approach to bringing together shipbuilding stakeholders through the development of Maritime Clusters, it added.

https://in.investing.com/news/hdfc-bank-shares-in-red-on-soft-q1-business-update-but-brokerages-maintains-bullish-stance-4292739

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Over 350 centres issuing PUC certificates in Delhi to stay shut after rate hike talks fail

The new rates for PUC certificates for petrol, CNG or LPG (including bio-fuel) two- and three-wheelers are fixed at Rs 80. For petrol, CNG, or LPG (including bio-fuel) four-wheelers and above, it is Rs 110.

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Around 360 centres issuing pollution-under-control (PUC) certificates at petrol pumps are set to remain shut indefinitely across the national capital after negotiations between the Delhi Petrol Dealers Association (DPDA) and the Delhi transport department over increasing the rates for testing vehicles broke down. The DPDA claimed the revision was made without taking stakeholder interests into account.

On Thursday, the Delhi government increased PUC certificate charges for petrol, CNG and diesel vehicles, officials had said, adding that the new rates will be effective as soon as they are notified. The rates were last revised in 2011.

The new rates for PUC certificates for petrol, CNG or LPG (including bio-fuel) two- and three-wheelers are fixed at Rs 80. For petrol, CNG, or LPG (including bio-fuel) four-wheelers and above, it is Rs 110.For diesel-propelled vehicles, the new rate has been set at Rs 140. In 2011, the rates were revised to Rs 60, Rs 80 and Rs 100, respectively.

“This revision is necessary to ensure that pollution checking stations can continue to operate efficiently and provide quality services to the public. We remain committed to maintaining Delhi’s air quality and ensuring that all vehicles meet the required pollution standards,” Transport Minister Kailash Gahlot had said. In a statement issued Sunday, the DPDA said the last time the government revised the rates was in 2011, after a gap of six years, the amount was increased by 70%. However, the current hike, after almost 13 years, is only 35%.

In a letter sent to the Transport Department last February, the DPDA had detailed how much PUC centres cost to run. With monthly expenditures on workers’ salaries, printing costs, machinery and computer repairs, electricity and a monthly fee to oil companies to run the PUC centres in the pumps, the dealers rack up a running cost of Rs 70,357 a month, they said.

The letter also detailed how reducing the frequency of pollution testing from quarterly to annually has drastically affected the running of PUC centres.

It also highlighted the rising rate of inflation in the last 13 years along with the increase in the number of PUC centres across Delhi affecting business.

The DPDA then suggested a hike of 65%, with two-wheelers being charged Rs 160, four-wheelers Rs 220 and diesel-run vehicles Rs 300.

The DPDA statement said: “The Hon’ble Minister of Transport, Govt. of NCT of Delhi, in a meeting with Delhi Petrol Dealers Association had called our demands legitimate. The Delhi government proposed a 75% hike based on the inflation index with simple interest calculation… while we were trying to convince our dealers to agree on the 75% hike… we were informed by the media of a hike of Rs 20, Rs 30 & Rs 40… we have also come to know that there is no basis or justification for the calculation, and the figure is arrived at arbitrarily (sic).”

“Minimum wages have increased thrice since 2011 and costs of the machines have also increased in these 13 years. It is obvious that the rates of the testing should also go up,” said DPDA spokesperson Atul Peshawaria, adding, “We are not doing this to make money. Most petrol pumps started this as a social initiative but this should not come at our cost. It should not drain us of our money.” The government did not respond when contacted for comment.

https://indianexpress.com/article/cities/delhi/pollution-certificates-delhi-shut-hike-talks-fail-9454340/

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LNG Use / LNG Development and Shipping

Cost escalation of Mozambique LNG project likely around $3.5-4 billion: BPCL

State-run Bharat Petroleum Corporation (BPCL) said on Saturday that it expects cost escalation of $3.5-4 billion in the Total Energies-led liquefied natural gas (LNG) project in Cabo Delgado province in Mozambique.. BPCL subsidiary Bharat PetroResources (BRPL) through its Netherlands-based step-down subsidiary BPRL Ventures Mozambique holds a 10 per cent Participating Interest (PI) in the LNG project. BRPL along with ONGC Videsh (OVL) and Oil India (OIL) hold a total of 30 per cent stake in the project.

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BPCL management said that the project is still under force majeure. “We are expecting maybe in another one quarter some good things can happen. The existing vendor’s contract charge is being placed. Project financing discussions are happening with the lenders. Maybe, we have to wait for one more quarter to see when force majeure is gone,” the management added.

On cost escalation, the company said, “Project cost is $15.5 billion. It may be around $19 billion. Maybe, that means around $3.5-4 billion increase in project cost. So we are expecting around 19.5-20 billion project cost will happen.”

On the loss of ₹490 crore in BRPL, the management said that as on date, there are no cash generating blocks. “The ₹490 crore major expenditure this year is as Mozambique project is in force majeure. So, the borrowing cost we cannot capitalise. So, we have to take it in P&L. So that is the reason there is a loss of around ₹490 crore in BPRL and there will be equity infusion once the project re-starts,” the company said.

The project is in force majeure since 2021 due to security issues. The Area 1 block is located in the deep-water Rovuma Basin offshore Mozambique and is one of the largest gas discoveries in offshore East Africa with an estimated recoverable resources of around 65 trillion cubic feet (TCF). BPCL’s total investment commitment in BRPL is around ₹39,358 crore as of June 2024. Majority is through borrowings. It has also invested an equity of around ₹10,700 crore.

Under Project Aspire, BPCL plans to invest ₹32,000 crore to enhance upstream production with the focus mainly on projects in Mozambique and Brazil. The investments in these two countries will depend on developments on the ground.

Refinery expansion

Asked about BPCL’s plans for setting up a refinery in Andhra Pradesh, the company said that keeping in view India’s rising petroleum products consumption, it is important to develop additional capacities to meet the demand. “Today we are marketing our products at around 52.5 million tonnes (mt) of estimated sales in FY25. Every year we are purchasing from private refineries around 5-5.2 mt of products. Of this, around 2 mt is from Numaligarh Refinery as a 15-year marketing right and around 3-3.2 mt from other standalone refineries.

“So we are short in terms of products compared to our refining capacity. There is a gap of around 5.5 mt. Even if we say an annual growth of 3-4 per cent, this will lead to a bigger amount. That’s why we are exploring new refining capacity. We are exploring the east coast or other places. We have not yet concluded the location, configuration. We are still studying. Once configuration studies are over, we can communicate the calx size, location, refining capacity,” the management said.

BPCL said that it has spent ₹2,600 crore as capex in Q1 of the current fiscal year. “For FY25, BPCL has a capex of around ₹16,400 crore. Out of which the major investment is in refinery and petrochemicals at around ₹4,300 crore. At the exploration side, we are planning to have an equity infusion of around ₹2,250 crore. Marketing, mainly for pipeline expansion and infrastructure creation at marketing location, the total capex will be around ₹7,100 crore. CGD capex is around ₹2,000 crore,” it added.

https://www.thehindubusinessline.com/companies/cost-escalation-of-mozambique-lng-project-likely-around-35-4-billion-bpcl/article68426290.ece#:~:text=The%20management%20said%20that%20the%20project%20is%20still%20under%20force%20majeure&text=State%2Drun%20Bharat%20Petroleum%20Corporation,Cabo%20Delgado%20province%20in%20Mozambique

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Great Nicobar port to get LNG power plant, international airport

The new airport is expected to be set up by the Airports Authority of India (AAI), while NTPC will set up the LNG power plant, a senior official aware of the plan told ET.

Great Nicobar port to get LNG power plant, international airport

New Delhi: The proposed ₹41,000-crore Great Nicobar Island International Container Transshipment Terminal will be supported by a 450-megawatt liquefied natural gas (LNG)-based power plant and a greenfield international airport, officials said.

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The new airport is expected to be set up by the Airports Authority of India (AAI), while NTPC will set up the LNG power plant, a senior official aware of the plan told ET. “The idea is to ensure holistic development of Great Nicobar Island in the Andaman and Nicobar Islands. This comprises development of an international container transhipment port, a greenfield airport, a power plant, and a township,” the official said.

Great Nicobar port to get LNG power plant, international airport

These issues figured in discussions at a recent inter-ministerial meeting. “The project will soon be taken for appraisal by the Public Investment Board (PIB),” a second official said.

This approval precedes a nod of the union cabinet for large infrastructure projects. The proposed power plant is crucial since the Great Nicobar island gets most of its electricity from diesel generators. LNG handling facilities will be developed at the transshipment terminal.

An international airport in Great Nicobar is also needed to improve access to the islands where the port will come up, said the official cited first. This project is proposed to be developed in four phases, with a capacity of 4 million twenty feet equivalent units (MTEU) being added at each stage. One TEU is a popularly adopted benchmark for measuring container handling capacity at ports and it roughly equals a standard size container.

The maximum capacity of the Great Nicobar project is expected to reach 16 MTEUs by 2059.

The port is pitched as a regional hub for Bangladesh, Myanmar, and India’s eastern coast. It also aims to reduce dependency on neighbouring transhipment hubs, significantly lowering container logistics costs.

https://economictimes.indiatimes.com/news/india/great-nicobar-port-to-get-lng-power-plant-international-airport/articleshow/111816790.cms?from=mdr

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Electric Mobility/ Hydrogen/Bio-Methane

IOC equips Indian Navy with green hydrogen fuel cell bus

New Delhi: In a significant milestone towards promoting sustainable, eco-friendly transportation solutions, IndianOil has handed over a state-of-the-art green hydrogen fuel cell bus to the Indian Navy. This landmark event was marked by the signing of a Memorandum of Understanding (MoU) between IndianOil and the Indian Navy to pioneer the deployment of hydrogen fuel cell technology for heavy-duty e-mobility.

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In the presence of Admiral Dinesh K Tripathi, Chief of Naval Staff, S M Vaidya, Chairman, IndianOil and senior officials of IndianOil and Indian Navy, the MoU was exchanged between

Vice Admiral Deepak Kapoor, Controller of Logistics, Indian Navy and Dr Kannan Chandrasekaran, Executive Director, IndianOil at the Nau Sena Bhawan, New Delhi.

It is pertinent to mention here that IndianOil is currently operating 15 fuel cell buses in Delhi-NCR and Gujarat, accumulating a total mileage of 300,000 kilometres, where each bus is expected to run at least 20000 kms.

This initiative aims to promote hydrogen and fuel cell technology for heavy-duty e-mobility, positioning the Indian Navy as a pioneer in evaluating this technology in collaboration with IndianOil, the premier energy company of India.

https://www.millenniumpost.in/business/ioc-equips-indian-navy-with-green-hydrogen-fuel-cell-bus-572771#google_vignette

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Dented corn ethanol, a pathway for India’s decarbonization: Dr J P Gupta

Dr Gupta said that the dented corn ethanol embodies “Food, Feed, and Fuel,” and added that the beauty of the same is that no other source provides the dual use.

Highlighting the importance of bio ethanol derived from dented corn, J P Gupta, chair, Environment Committee, PHD Chamber of Commerce and Industry on Friday said it represents a technologically mature and economically competitive pathway for India’s de-carbonization and sustainable development.

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Dr Gupta said that the dented corn ethanol embodies “Food, Feed, and Fuel,” and added that the beauty of the same is that no other source provides the dual use.

He further said that it will not only provide a good source of energy, but will also help change the financial condition of the farmer, as more demand will increase more income Gupta in his address at the 4th International Climate Summit organised in New Delhi by the PHD chambers of commerce and industry, further pointing out the use of corn ethanol mentioned that it has the potential of replacing 100 per cent use of gasoline in the flexi engines, can be used as aviation turbine fuel, and also be a replacement for LPG etc.

Dr Gupta further said that the dented corn is particularly advantageous for ethanol

production due to its high starch content of 70-75 per cent, compared to the 20-30 per cent in normal corn, and because of this, as a result it produces greater ethanol yield, which is 2.8 gallons per bushel versus 1 gallon per bushel from normal corn, he claimed.

One more advantage of dented corn is that the same is the most produced crop globally, he added.

Dr Gupta also said that it makes for a good raw in the production of special chemicals and thermoplastics, also providing an answer to climate change, with its contribution in up to 80 per cent reduction in greenhouse gas emissions, as compared to the fossil fuels, Dr Gupta claimed.

He said that the PHD chambers has been in the forefront for charting the pathway for the decarbonization of India through green hydrogen, and has hosted three international climate summits and authoring three knowledge books on green hydrogen.

https://www.thestatesman.com/cities/dented-corn-ethanol-a-pathway-for-indias-decarbonization-dr-j-p-gupta-1503322346.html

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AM Green plans $1 billion foray into biofuels

New Delhi: AM Green is planning to invest $1 billion for its 2G or second-generation biofuels foray by setting up two bio-ethanol plants, marking a new venture for the renewable energy company.

The company also plans to acquire 50% stake in Assam Bio Refinery Pvt. Ltd from Finnish companies Fortum Oyj and Chempolis Oy, two people aware of the development said. Oil India Ltd subsidiary Numaligarh Refinery Ltd (NRL) holds 50% in Assam Bio Refinery, while Fortum and Chempolis hold around 40% and 10% respectively. Alongside, AM Green also plans to acquire the Ouli, Finland-headquartered Chempolis Oy—a biotechnology firm—in which Fortum a Finnish state-run power utility, holds a stake.

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AM Green, set up by Mahesh Kolli and Anil Kumar Chalamalasetty who founded the Greenko Group, has already signed the exclusivity agreements for the above-mentioned transactions, the people cited above said on the condition of anonymity.

“The exclusivity agreements for acquiring Fortum Oyj and Chempolis Oy’s stake in Assam Bio Refinery Pvt. Ltd, and also Chempolis Oy has been inked by AM Green. AM Green plans to expand in this space and in addition to Assam Bio Refinery, set up two more such plants in the country,” one of the two people cited above said.

Bio ethanol from bamboo

AM Green plans to manufacture so-called second-generation or 2G biofuels, produced from non-food biomass such as plant materials and animal waste. First-generation biofuels are produced from sugar, starch, corn, wheat and broken rice, and 3G biofuel comes from micro-organisms such as bacteria and algae. The Assam JV will use 300,000 tons of bamboo every year to produce 50,000 tons of bioethanol, 19,000 tons of organic compound furfural, 11,000 tons of acetic acid, and 144 gigawatt hours of green energy.Chempolis is also the licensor of the 2G biofuel technology for the world’s first such plant producing cellulosic ethanol and bio-based chemicals from bamboo. Investors in Chempolis include Finnish investment and asset management group Taaleri Plc.

AM Green President Mahesh Kolli and Fortum India president Sanjay Aggarwal declined comment.

A Fortum Oyj spokesperson in an emailed response said, “As a stock listed company, we do not comment any market rumours or speculations.”

Broadening presence

“In August 2023, Fortum announced that it would assess strategic options, including potential divestments, of its Circular Solutions businesses. The businesses comprise the operating, maintaining and developing of Fortum’s recycling and waste assets, the battery recycling business as well as turbine and generator services and biobased solutions. Chempolis is part of the biobased solutions,” the Fortum Oyj spokesperson said in the email. “As there are various businesses within, the scope there might be different outcomes for different businesses. There is no certainty whether the assessment will result in any transactions and Fortum will inform the market, if and when appropriate.”

An NRL spokesperson in an emailed response said, “please note that we have no views to share on the development.”

Queries emailed to the spokespersons of AM Green, Chempolis Oy, and Taaleri Plc on Thursday evening remained unanswered till press time.

AM Green plans to be present across green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels and downstream high-value chemicals, in the backdrop of significant interest in India’s green energy transition play.

Gentari Sdn Bhd, a unit of Malaysia’s state-run oil and gas company Petronas that has been actively eyeing green energy opportunities in India, plans to invest $1.5 billion for a 30% stake in AM Green Ammonia Holdings, a unit of AM Green that will produce 5 million tonnes per annum (mtpa) of green ammonia, equivalent to about 1 mtpa of green hydrogen. AM Green has also inked a term sheet with the world’s largest trader and distributor of ammonia Yara Clean Ammonia for supplies from its green ammonia plant in Kakinada in Andhra Pradesh.

Ambitious road map

India has an ambitious biofuel roadmap under its national biofuel policy with an official target to achieve 20% ethanol blending in petrol by 2025-26. The initial deadline to achieve 20% blending was 2030, with the target of petrol supplies with 10% ethanol blending achieved in June last year. There is a growing traction for biofuels, with the global ethanol market valued at $99.06 billion in 2022 and predicted to grow at a CAGR of 5.1% to reach $162.12 billion by 2032.

Last week, Fortum said it plans to sell its recycling and waste business to Summa Equity through its portfolio company NG Group in a euro 800 million deal. “The divestment of the recycling and waste business is part of Fortum’s strategic review of its Circular Solutions businesses. The strategic review was initiated in August 2023. Fortum’s strategic focus is on delivering clean energy and driving decarbonisation of industries in the Nordics. Fortum’s core operations are located in the Nordics and consist of CO2-free power generation, electricity sales, and district heating and cooling. The Circular Solutions businesses are not in the core of the strategy,” Fortum said on 18 July.

https://www.livemint.com/companies/news/am-green-plans-1-billion-biofuels-foray-to-buy-50-stake-in-assam-bio-refinery-from-fortum-oyj-and-chempolis-oy-11721544316035.html

 

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

Iran: Owji provides more details on Iran-Russia gas pipeline

Javad Owji noted that the construction operation of the pipeline carrying natural gas from Russia to Iran was an important development and unprecedented in Iran’s history..Currently, 23 gas processing plants produce 850 million cubic meters of sweet gas per day and in addition to that, the gas transfer project will provide the possibility for gas imports from Russia considerably, he underlined. He further noted that Russia with the sea bed gas pipeline construction technology has accepted to pay the cost of implementation of the project.  

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“Implementation of this pipeline will ensure sustainable domestic gas delivery on the one hand and will increase the gas export capacity and continuity of it on the other hand”, the minister said.

According to him, the value of the gas trade will be 10 to 12 billion dollars annually.   

He pointed out that this 30-year contract could be marked as the culmination of Martyr Ebrahim Raiesi’s energy diplomacy approach that in addition to removing domestic natural gas imbalance will turn Iran into a natural gas hub in the region with great impacts on economic and political relations and trade.  

The Iranian National Gas Company (NIGC) and the Russian company Gazprom signed a memorandum of understanding (MoU) in late June for gas transfer from Russia to Iran.

Owji said that Iran and Russia sit atop 60 percent of the world’s gas reserves, so signing this MoU is a great achievement with an impact on evolving energy equilibrium in the region. He further said that Iran with its widespread national gas pipeline network and the related infrastructures is fully prepared to take the gas.

The principal framework for gas transfer from Russia to Iran has been on the agenda since a long ago and the late president Ebrahim Raeisi insisted on being finalized, the minister of petroleum said adding there is a readiness for changing the MoU into a contract in a short time that will be a turning point for both countries. 

https://en.mehrnews.com/news/218086/Owji-provides-more-details-on-Iran-Russia-gas-pipeline

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Turkey: Turkey to Send Ship to Search for Oil and Gas Off Somalia Coast

Turkey will send an exploration vessel off the coast of Somalia later this year to search for oil and gas as part of a hydrocarbon cooperation deal between two countries, Turkish energy ministry said on Thursday.

“We will send our Oruc Reis vessel at the end of September, or early October to Somalia. It will conduct a significant seismic study there, which can last for months,” Turkish Energy Minister Alparslan Bayraktar said.

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Two of the three blocks, were some 50 kilometres off the Somalia coast, Bayraktar also said, adding that the third one was some 100 km away.

“We think that Somalia has significant oil and natural gas resources offshore. We signed an offshore deal for three blocks. Turkey will have exclusive rights for search and production when we find oil in these areas,” Bayraktar said.

In March, Turkey signed an offshore oil and natural gas cooperation deal with Somalia, the Turkish Energy Ministry said, further strengthening bilateral ties after agreeing a defence deal last month.

https://www.marinelink.com/news/turkey-send-ship-search-oil-gas-off-515301

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Canada: FortisBC cited for ‘minor’ non-compliance issues on Woodfibre LNG pipeline

EAO inspections found concerns regarding the storage of hazardous materials and installing and maintaining erosion and sediment controls. FortisBC has been cited for two issues related to its Eagle Mountain-Woodfibre Gas Pipeline Project. The pipeline, currently under construction, is associated with the liquefied natural gas (LNG) export facility being built on the shores of Howe Sound by Woodfibre LNG.

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It involves installing a 47-kilometre natural gas pipeline between the Coquitlam watershed and the Woodfibre Liquified Natural Gas facility southwest of Squamish.

The provincial Environmental Assessment Office (EAO) issued a notice of non-compliance on June 28, related to inspections done by its office on June 18 and 19.

Public notice of this was published on the office’s website on July 9.

The EAO inspected the pipeline right-of-way in Coquitlam, project components at the Woodfibre LNG site, and at the BC Rail site.

The first notice of non-compliance issued to FortisBC related to a requirement for secondary containments for hazardous substances, such as engine oil, at FortisBC’s yard at the BC Rail site.

“The officer observed a shipping containe[r] beside the maintenance shop being used to store drums and pails of engine and gear oils. The shipping container did not have any form of secondary containment for these materials,” reads the inspection report.

The report also notes that a concrete containment area wall wasn’t built high enough at the same site.

Regarding secondary containment, FortisBC says that this requirement is an “additional measure over and above the primary containment of such materials, as a precaution to effectively eliminate the possibility of any leakage.”

A secondary containment is now in place for the substances identified, a spokesperson for FortisBC said in an email to The Squamish Chief.

“In addition to work underway to raise the height of an existing secondary containment.”

The second notice of non-compliance was related to erosion and sediment control measures requiring maintenance on the Coquitlam pipeline part of the Squamish project.

The inspection report notes that this relates to the clearing of land for the pipeline work where there is a nearby watercourse.

“This maintenance has been completed and the erosion and sediment controls are currently functioning as intended,” the spokesperson for FortisBC said.

Tracey Saxby, co-founder and executive director of environmental advocacy group My Sea to Sky, which has fought the Woodfibre LNG project for more than a decade, sent a letter to the District of Squamish sharing the non-compliance reports.

She also copied The Squamish Chief on that correspondence.

“As council is considering the temporary use permits for FortisBC’s proposed construction yard and workcamp, we felt it was important to highlight these non-compliance issues,” she said.

 “FortisBC continues to demonstrate that it’s a bad actor.”

Asked what was being done to prevent further issues, the FortisBC spokesperson said the company takes any issue of non-compliance seriously. 

“We document any instances of non-compliance and review corrective actions to help prevent repeat issues,” the spokesperson said.

“More broadly, we regularly take steps to review our work sites and ensure compliance, including internal reviews and inspections on an ongoing basis, and we will continue to take prompt corrective action in the event of future issues should they arise.”

The spokesperson said that the company has a “robust compliance documentation and verification process” for the Eagle Mountain-Woodfibre Gas Pipeline Project, including a dedicated compliance team.

“We believe in maintaining compliance with environmental regulations and project environmental mitigation plans at all times and in promptly taking corrective action upon issues if or when identified, as demonstrated in this instance.”

’Proactively’ inspected

The EAO says compliance and enforcement officers will continue to monitor the sites “to make sure all requirements are being met.”

In an emailed statement, a spokesperson for the EAO said that during construction, the pipeline is currently “proactively inspected” by compliance and enforcement officers in a continuous cycle every one to two months.

“The frequency of inspection depends on which phase of construction the project is in as well as the potential for impact and other factors such as seasonal changes like freshet,” the spokesperson said, adding that the EAO’s compliance and enforcement officers are responsible for inspecting major projects throughout B.C.

The spokesperson said that “minor non-compliances are common,” and most projects work quickly to correct them once they are discovered by the project’s own compliance staff or by EAO compliance and enforcement officers.  

“Major incidents are not common, and EAO compliance and enforcement officers have several enforcement tools available to bring projects back into compliance.”

Inspection reports are publicly posted to the Environmental Assessment Office’s Project Information Centre (EPIC).

https://www.squamishchief.com/local-news/fortisbc-cited-for-minor-non-compliance-issues-on-woodfibre-lng-pipeline-9246172

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Nigeria: High Petrol, Transport Costs: NNPC Intervenes, Rolls Out 12 New CNG Stations

The Nigerian National Petroleum Company Ltd (NNPC), in partnership with NIPCO, has commissioned 12 Compressed Natural Gas (CNG) stations in Abuja and Lagos in a move to alleviate the burden of high transportation costs on Nigerians following the removal of fuel subsidy by President Bola Tinubu.

Under the Presidential CNG initiative, NNPC & NIPCO Gas entered into a strategic partnership for expansion of CNG Stations across Nigeria. Under this partnership, 35 CNG Recall that Tinubu on May 29, last year announced the removal of subsidy on petrol, a development that made the price rise from N197 per litre to N617 per litre, thus significantly increasing the cost of fuel and raising the cost of transportation.

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Stations are to be constructed across Nigeria, with stations strategically located to offer CNG to a wide range of vehicles including: tricycles, cars, buses and Heavy Transport Vehicles.

The newly built CNG stations which had six in Lagos and six in Abuja were commissioned by the minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.

Speaking during the simultaneous commissioning of 12 CNG stations in Abuja and Lagos, group chief executive officer of NNPC Limited Mele Kyari declared that the drive to bring CNG closer to Nigerians has since commenced and is irreversible.

Kyari, said in addition to the massive deployment of CNG stations nationwide, the NNPC Ltd and its partners would also build three Liquefied Natural Gas (LNG) stations in Ajaokuta.

“There is simply no way to turn back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress, we will cover the gap in order to ensure that the volatility we see with Premium Motor Spirit (petrol) does not apply to gas,” Kyari stated.

The GCEO commended President Bola Ahmed Tinubu for providing the needed support to drive domestic gas utilisation aimed at delivering cleaner and cheaper sources of energy to Nigerians.

While assuring that the NNPC Ltd will continue to deliver more strategic gas projects for the benefit of Nigerians in line with the Presidential CNG Initiative of bringing prosperity to all Nigerians, Kyari reaffirmed the determination of the NNPC to guarantee the nation’s energy security.

Also speaking at the occasion, the managing director, NNPC Retail Limited, Huub Stokman revealed that in the next one year, NNPC Retail would have launched over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites.

“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria and with continued investments, it will become a significant part of our energy mix,” Stokman added.

In his remarks, the minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo said the commissioning of the stations will not only provide economic benefits by creating jobs and stimulating local economies, it will also contribute significantly to Nigeria’s national goals of reducing emissions and combating climate change.

On his part, the chairman of the NNPC Board of Directors, Pius Akinyelure said increased CNG adoption will foster economic benefits by reducing fuel costs for consumers and businesses alike.

Following the removal of fuel subsidy and the declaration of the Presidential Compressed Natural Gas (CNG) initiatives, NNPC Limited has taken the lead in the deployment of Auto-CNG Stations across Nigeria.

Already, NNPC Gas Marketing Limited, a subsidiary of NNPC Limited, in partnership with NIPCO Gas Limited has developed an Auto-CNG rollout plan for construction of thirty-five (35) CNG stations across the various geographical zones of Nigeria.

These CNG stations feature advanced reciprocating and hydraulic booster compressors, ensuring a dispensing pressure of 200 bar for CNG vehicles.

The CNG is supplied to stations in Abuja and Lagos via virtual transportation from Mother Stations in Ajaokuta, Kogi state, and lbafo, Ogun state. The Abuja station will soon connect to the AKK Pipeline, becoming a Mother CNG station. The stations’ power needs are met by gas-driven generators, reducing carbon emissions.

The CNG station on Airport Road, Abuja, includes a 5-bay CNG Vehicle Conversion Workshop, capable of converting 5 to 6 vehicles daily.

Together, the Abuja and Lagos stations have a combined dispensing capacity of over six million standard cubic feet (MMSCF) of CNG per day, serving approximately 15,000 vehicles daily. This ensures continuous, reliable, affordable and safe CNG supplies to motorists across various regions.

https://leadership.ng/high-petrol-transport-costs-nnpc-intervenes-rolls-out-12-new-cng-stations/

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US: US player fires up first LNG offshore Mexico

New Fortress Energy’s Fast LNG commences production, adding $2 billion to infrastructure portfolio. US energy infrastructure company New Fortress Energy (NFE) has achieved first liquefied natural gas production from its delayed initial Fast LNG project, located offshore Altamira, Mexico.

“First LNG represents a transformative moment for our company and the industry as a whole, reaffirming our position as a fully integrated leader in the global LNG market,” said NFE chief executive Wes Edens.

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Fast LNG pairs modular liquefaction technology with jack-up rigs or similar offshore infrastructure, enabling a faster deployment schedule than traditional liquefaction facilities, the company claimed.

With a production capacity of 1.4 million tonnes per annum, Fast LNG completes the vertical integration of NFE’s LNG portfolio and will play a pivotal role in supplying low-cost, clean LNG to the company’s downstream terminal customers, it said.

This addition of Fast LNG brings more than $2 billion of infrastructure to NFE’s asset base, significantly enhancing its operational capabilities, financial flexibility and credit profile, the company added.

https://www.upstreamonline.com/lng/us-player-fires-up-first-lng-offshore-mexico/2-1-1680750

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Natural Gas / LNG Utilization

Kazakhstan : Condor to Supply LNG to Replace Diesel in Kazakhstan’s Train System

Condor Energies Inc., set to build the first liquefied natural gas (LNG) production plant in Kazakhstan, has signed an agreement to supply LNG to replace diesel as fuel for the national railway in the Central Asian country.

The “LNG Framework Agreement”, the Canada-based company’s first in Kazakhstan, is an extension of a deal between national rail operator Kazakhstan Temir Zholy National Co. JSC (KTZ) and United States-based Wabtec Corp. The earlier agreement concerns the retrofitting of KTZ’s mainline locomotive fleet to enable the engines to run on LNG.

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“The Agreement introduces Condor into this locomotive fleet modernization strategy as the supplier and distributor of the LNG”, Condor said in a statement. The Condor agreement was also signed by KTZ and Wabtec.

“The Agreement also provides a detailed framework whereby the three parties coordinate efforts to ensure that Condor’s LNG production volumes coincide with the delivery of new and converted LNG-powered rail locomotives from Wabtec”.

Under the agreement, Condor will also supply LNG for KTZ and the government’s project to expand the Transcaspian International Transport Route (TITR).

“The TITR, with its ever-increasing importance as the shortest and faster route to transport freight between Asia and Europe, is expected to further enhance LNG demand”, Condor president and chief executive Don Streu said in the company statement.

Condor highlighted, “Displacing diesel with LNG as the fuel in locomotives is expected to reduce costs and increase the speed of railing freight across Kazakhstan by increasing operating ranges, reducing transit times, and lowering fuel and maintenance costs”.

Condor will source the LNG from its future projects in Kazakhstan, where it plans to produce 600,000 metric tons annually. That capacity is enough to displace 670,000 metric tons of diesel and curb carbon dioxide (CO2) emissions by over 250,000 metric tons annually, according to the company.

Condor earlier said it had finalized the site location and completed the front-end engineering design for its first modular LNG facility in the country, which would be the first gas liquefaction facility in Kazakhstan.

“Detailed engineering will commence shortly”, it said announcing the LNG framework agreement. “The Company’s LNG facilities will utilize leading-edge technology developed by the United States Department of Energy and commercialized by Condor’s LNG partner in the United States”.

Expected to start service 2026, Condor’s first LNG production facility in Kazakhstan would be able to produce 120,000 metric tons annually, enough to replace 450,000 liters of diesel per day, it said in the recent announcement. Early this year Condor received a natural gas allotment from the Kazakhstani government for the project. The facility is planned to be built near the city of Aktobe.

“The feed gas will be liquefied to produce up to 350 Tonnes per day (210,000 gallons per day) of LNG, which can fuel approximately 125 rail locomotives or 215 large mine haul trucks (150 Tonne haul capacity)”, it said in a press release January 22. “The CO2 emission reductions associated with using this LNG volume to displace diesel fuel equates to removing over 31,000 cars from service annually”.

Besides railway, Condor LNG is eyeing mine haul trucks, buses and heavy equipment as niches for its LNG in Kazakhstan.

Condor’s LNG plants in the country will use modular components instead of building directly on-site. “Building a multimillion tonne per year ‘conventional’ LNG facility would be cost, time and financially unattractive due to the country’s vast size and lack of an established market”, it says on its website.

“Instead, Condor will construct lower cost ‘modular’ LNG facilities which have a significantly smaller footprint to ‘localize’ LNG production and distribution. Modular facilities are more efficient and cost effective to service numerous industries spread over a large geographic region and can also be built much faster, taking only 12 to 18 months from design to first production”.

https://www.rigzone.com/news/condor_to_supply_lng_to_replace_diesel_in_kazakhstans_train_system-22-jul-2024-177471-article/

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Mexico : First LNG at New Fortress Energy asset

New Fortress Energy has achieved first liquefied natural gas (LNG) for its initial Fast LNG asset offshore Altamira, Mexico. The FLNG establishes itself as the fastest large-scale LNG project ever developed, the company said in a news release.

NFE said its proprietary Fast LNG design pairs the latest advancements in modular liquefaction technology with jack up rigs or similar offshore infrastructure to enable a faster deployment schedule than traditional liquefaction facilities. The company said Fast LNG harnesses existing FLNG (floating liquefied natural gas) technology and combines it with a modular approach, allowing for scalability, affordability, and speed of natural gas liquefaction.

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With a production capacity of 1.4 MTPA, or approximately 70 TBtus, the FLNG completes the vertical integration of NFE’s LNG portfolio and will play a pivotal role in supplying low-cost, clean LNG to the Company’s downstream terminal customers.

“First LNG represents a transformative moment for our Company and the industry as a whole, and reaffirms our position as a fully integrated leader in the global LNG market,” said Wes Edens, Chairman and CEO of New Fortress Energy.

Chart Industries said its Integrated Pre-Cooled Single Mixed Refrigerant (IPSMR) process technology helped deliver the first LNG at the asset.

“We are proud to support NFE and the industry with our modular liquefaction technology and all mission critical equipment, including brazed aluminum heat exchangers, cold boxes and air coolers,” stated Jill Evanko, Chart’s CEO and President. “We congratulate NFE for this success of First LNG, and we look forward to further supporting the industry with our modular, adaptable, resilient and cost-effective technology and products.”

https://www.compressortech2.com/news/first-lng-at-new-fortress-energy-asset/8038322.article

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US: Woodside Energy to take control of U.S. Driftwood LNG project on $900 million Tellurian acquisition

(Bloomberg) – Woodside Energy Group Ltd. has agreed to buy U.S. liquefied natural gas (LNG) export project developer Tellurian Inc. for about $900 million in a bet on rapid growth in global demand for the fuel.. Australia’s biggest oil and gas producer will pay about $1 a share in cash to take full control of Tellurian, including the proposed U.S. Gulf Coast Driftwood LNG project, it said Monday. Woodside’s shares fell 2.1% in Sydney, their biggest one-day drop since May 1, after the news was announced. Tellurian shares rose over 65% Monday morning in New York.

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Woodside has been one of the most vocal energy companies in arguing that more natural gas will be needed to complement the expansion of intermittent renewable energy sources.

It has been on the hunt for potential U.S. LNG investments to help expand its supply portfolio, and Driftwood is just one of the handful that haven’t been affected by President Joe Biden’s pause on approvals in January.

“The acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse,” Woodside Chief Executive Officer Meg O’Neill said. “A complementary U.S. position would allow us to better serve customers globally and capture further marketing optimization opportunities across both the Atlantic and Pacific Basins.”

Woodside is targeting a final investment decision for the first phase of the Driftwood project from the first quarter of 2025. If all four phases are completed, the Louisiana facility would be able to export 27.6 million tons a year — almost triple Woodside’s current capacity and nearly 6% of the global total at the end of last year.

Tellurian has been struggling to bring the facility to fruition since its 2016 founding by LNG industry pioneer Charif Souki, who left in December amid his own personal bankruptcy proceedings. Martin Houston — another industry veteran who co-founded Tellurian and is its current chairman — has vowed to slash costs, and there had been earlier discussions to sell the business.

“Woodside stepping into Driftwood provides a high degree of certainty around the project,” Houston said in an interview.

Driftwood has differed from other U.S. LNG projects by inking long-term contracts linked to Asian and European spot prices. That exposed importers to the volatile spot market and ultimately cost Tellurian several potential deals, including with a major Indian customer, Shell Plc and Vitol SA.

Woodside “can better take forward the project than Tellurian can,” said Saul Kavonic, an energy analyst at Sydney-based MST Marquee. The Australian company “can remedy marketing relationships, funding, and operator capability deficits. This is the kind of deal Woodside should be doing — where Woodside can enter cheaply and add value.”

U.S. private equity gas driller Aethon Energy has a non-binding agreement to buy LNG from the Driftwood project, after earlier this year acquiring Tellurian’s upstream gas assets. President Gordon Huddleston said in an interview that the firm looks forward to working with Woodside.

Woodside has been exploring opportunities to boost exports. Earlier this year, it ended talks with smaller rival Santos Ltd. that would have made it one the biggest LNG producers in the Asia-Pacific region. The company expects to bring potential partners into the Driftwood project, and aims to sell about 50%, it said in a presentation.

O’Neill said on an analyst call that the company has already received interest to work together on U.S. LNG. The transaction is expected to be completed in the fourth quarter.

https://worldoil.com/news/2024/7/22/woodside-energy-to-take-control-of-u-s-driftwood-lng-project-on-900-million-tellurian-acquisition/

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Global LNG Development

Abu Dhabi : Shell to invest in Ruwais LNG project in Abu Dhabi

Shell Overseas Holdings Limited, a subsidiary of Shell plc (Shell), has signed an agreement to invest in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais liquefied natural gas (LNG) project in Abu Dhabi through a 10% participating interest.

“This investment decision builds on our long-standing partnership with ADNOC,” said Shell’s Chief Executive Officer Wael Sawan. “In line with our strategy to create more value with less emissions, we are investing in additional LNG capacity and further growing our world-leading LNG portfolio, with energy-efficient and carbon-competitive projects.”

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The Ruwais LNG project will consist of two 4.8 million metric tonnes per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa. Shell, through its subsidiary Shell International Trading Middle East Limited FZE, has also signed an agreement to offtake 1 mmtpa of LNG produced by the project. The Ruwais LNG facility is set to have an electric-powered liquefaction system and will utilise access to a renewable power supply. This design supports lower operational emissions compared to traditional gas-powered LNG facilities.

ADNOC will hold a majority 60% share in the project and serve as the lead developer and operator of the facility, while Shell, BP, Mitsui and TotalEnergies will each hold 10%.

ADNOC has awarded an engineering, procurement and construction (EPC) contract to a Technip-led joint venture and will soon start construction in Al Ruwais Industrial City, Abu Dhabi. LNG deliveries are expected to start in 2028.

The Ruwais LNG project is located some 240 kilometres west of Abu Dhabi, United Arab Emirates.

Shell has a proud history of more than 80 years in the United Arab Emirates. Shell’s current activities with ADNOC include a 15% interest in ADNOC Gas Processing (AGP) with associated technical and manpower support services.

The capital investment related to Shell’s 10% participating interest in the Ruwais LNG project will be absorbed within Shell’s cash capital expenditure guidance, which remains unchanged. The deal is in excess of the internal rate of return (IRR) hurdle rate for Shell’s Integrated Gas business, delivering on its 25-30% growth ambition in liquefaction volumes, relative to 2022, as outlined during the 2023 Capital Markets Day.

Global demand for LNG is estimated to rise by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China, South Asian and South-east Asian countries. These countries are expected to use more LNG to support their economic growth, according to Shell’s LNG Outlook 2024.

Shell believes LNG will play a critical role in the energy transition, replacing coal in heavy industry. It also has a continued role in displacing coal in power generation, helping to reduce local air pollution and carbon emissions. LNG helps to provide the flexibility the power system needs, at a time when renewable generation is growing rapidly.

https://worldstagenews.com/shell-to-invest-in-ruwais-lng-project-in-abu-dhabi/

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Canada : New Marine Atlantic ferry Ala’suinu will soon set sail for Atlantic Canada

Marine Atlantic has taken possession of its newest vessel, which will soon begin its journey from a shipyard in China all the way to the waters of Atlantic Canada. (Marine Atlantic). Marine Atlantic has a new ferry in the water, and it will soon begin its journey from a shipyard in China and sail into Atlantic Canada in April. The Ala’suinu, which means “traveller” in Mi’kmaw, is expected to begin taking passengers between Cape Breton and eastern Newfoundland on the Argentia route beginning in June. It will operate on the Port aux Basques and North Sydney route during the fall, winter and spring.

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At 203 metres long, the new ferry has 146 passenger cabins, more than any other Marine Atlantic vessel.

The standout feature is the vessel’s energy-efficiency, said Marine Atlantic spokesperson Darrell Mercer.

The ferry uses “dual-fuel” technology, he said. It runs on regular engines and batteries, which work in tandem to reduce the amount of fuel burned.

It’s also equipped with liquefied natural gas technology. Liquefied natural gas is a cleaner burning fuel than regular marine diesel, said Mercer, but it isn’t readily available in Atlantic Canada and shipping it wouldn’t be carbon-efficient.

Mercer said the company expects the technology to improve in the coming years and hopes the ferry will be able to use LNG in the near future.

The ferry is also designed with a “silent class,” to reduce underwater noise.

“The technologies have improved so significantly over the past number of years that that’s incorporated into this vessel, which will be positive for marine life in the Cabot Strait,” Mercer said.

A long journey ahead

The vessel is owned by Stena North Sea Limited, a Swedish company that built the ferry in China.

Marine Atlantic is leasing it for five years, after which it will determine whether it wants to purchase the ferry.

The new Marine Atlantic ferry is named Ala’suinu, which means ‘traveller’ in Mi’kmaw. (Marine Atlantic)

In about a week, it will set sail to North America. The Ala’suinu has to travel across the Indian Ocean, around the southern tip of Africa and then to Newfoundland.

Marine Atlantic evaluated the possibility of travelling through the Suez Canal, but due to safety concerns with recent attacks on ships in the Red Sea, the company opted for a longer route, Mercer said.

New features

The Ala’suinu is slightly longer than the Highlanders and Blue Puttees vessels, which are each 199 metres long.

The 146 cabins include 31 pet-friendly cabins and 40 passenger pods, which are smaller and less expensive private rooms. The ship also has accessible seating areas, similar to other Marine Atlantic ferries.

Mercer said the new vessel has many Indigenous themes throughout, including Indigenous artwork, restaurant names and menu selections.

He said the company chose the name Ala’suinu through consultations with its employees and Indigenous stakeholder groups.

“That was really important to us from a truth and reconciliation perspective,” he said.

“It recognized the traditional travel between Cape Breton and Newfoundland of Mi’kmaw people as they visited relatives in years past.”

https://ca.news.yahoo.com/marine-atlantic-ferry-alasuinu-soon-190454414.html

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Kazakhstan: Candor Energies signs first LNG agreement with Kazakhstan 

Candor’s facility in Aktobe, Kazakhstan, will produce 120,000 tonnes (t) of liquefied natural gas (LNG) annually, an energy-equivalent volume of 450,000 litres of diesel per day. Condor Energies has signed its first LNG framework agreement to develop Kazakhstan’s rail locomotives, aiming to fuel the country’s “energy transition requirements and growth plans”.  

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Kazakhstan Temir Zholy National Company (KTZ), the national railway operator of Kazakhstan, and Wabtec, a US-based locomotive manufacturer with existing facilities in the central Asian nation, signed the agreement on Wednesday.  

According to Canada-based energy transition company Condor, KTZ and Wabtec signed a memorandum of understanding in 2022 that included modernisation work for converting the mainline fleet into NextFuel LNG-powered locomotives, which can be powered by both diesel and LNG.  

The most recent agreement provides a detailed framework for coordinating efforts by the three parties “to ensure that Condor’s LNG production volumes coincide with the delivery of new and converted LNG-powered rail locomotives from Wabtec”, Condor said in a statement. 

Condor’s first facility will be built near Aktobe, Kazakhstan, and will manufacture 120,000t of LNG every year, equivalent to the energy volume of 450,000 litres of diesel per day.  

The first phase of the initial facility is set to start LNG production in mid-2026, and a consistent feedgas source has already been guaranteed. The company is also exploring alternative funding options for the project. 

https://www.offshore-technology.com/news/candor-energies-signs-first-lng-agreement-with-kazakhstan/

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Mexico: New Fortress Energy’s Fast LNG becomes fastest large-scale LNG project ever developed following first gas

(WO) – New Fortress Energy Inc. has achieved First LNG for its initial Fast LNG asset located offshore Altamira, Mexico (“FLNG”). With this significant milestone, FLNG establishes itself as the fastest large-scale LNG project ever developed. NFE’s proprietary Fast LNG design is the first of its kind, pairing the latest advancements in modular liquefaction technology with jack up rigs or similar offshore infrastructure to enable a faster deployment schedule than traditional liquefaction facilities.

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With a production capacity of 1.4 MTPA, or approximately 70 TBtus, FLNG completes the vertical integration of NFE’s LNG portfolio and will play a pivotal role in supplying low-cost, clean LNG to the Company’s downstream terminal customers.

“First LNG represents a transformative moment for our Company and the industry as a whole, and reaffirms our position as a fully integrated leader in the global LNG market,” said Wes Edens, Chairman and CEO of New Fortress Energy.

“We are immensely proud of the dedication and hard work by our team, who have completed more than 9 million work hours, to bring this large-scale project to life at a record pace. In doing so, our downstream customers now benefit from additional access to clean and reliable LNG, enabling sustained growth well into the future,” said Chris Guinta, Chief Financial Officer of New Fortress Energy.

FLNG adds more than $2 billion of infrastructure to NFE’s asset base, greatly improving NFE’s operational capabilities, financial flexibility, and credit profile.

https://www.worldoil.com/news/2024/7/22/new-fortress-energy-s-fast-lng-becomes-fastest-large-scale-lng-project-ever-developed-following-first-gas/

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GO TOP

LNG as a Marine Fuel/Shipping

UK: Peninsula facilitates LNG bunkering for ‘K’ LINE’s new dual-fuel car carrier

Peninsula has announced the LNG refueling of the car carrier, Thor Highway, using its LNG bunker vessel, Levante LNG. This operation was conducted for their customer, ‘K’ LINE, in Gibraltar. The Thor Highway, managed by ‘K’ LINE, is a newly-constructed car carrier that runs on LNG dual-fuel and was delivered this year. This vessel represents ‘K’ LINE’s ongoing dedication to reducing carbon emissions in shipping. The deal was facilitated by Peninsula’s Tokyo office, leveraging their strong local relationship with ‘K’ LINE.

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The bunkering operation was performed by Levante LNG, demonstrating Peninsula’s advanced and growing portfolio of low-carbon fuel options. The successful operation also underscores Gibraltar and its Port Authority’s goal of establishing their port as a major LNG bunkering hub in the Mediterranean.

The LNG-powered vessel order book is looking very healthy over the coming years. This further validates our decision to develop LNG bunkering solutions in the early stages of the marine fuel transition.

..Peninsula’s Head of Sustainability and Alternative Fuels, Nacho de Miguel, said.

Due to the ever-growing experience in supplies undertaken by our alternative fuels, physical, and reselling desks, we are constantly increasing our ability to better service our customers. ‘K’ LINE’s trust in Peninsula for supplying the Thor Highway is a testament to our growing presence in the LNG space and our ability to service customers from across the globe.

…Nacho de Miguel added.

To remind, Peninsula obtained an LNG bunkering operator license from the Government of Gibraltar and the Gibraltar Port Authority and deployed Levante LNG to operate in the Strait of Gibraltar and Western Mediterranean ports in October 2023.
 
Furthermore, in December 2023, Peninsula completed the supply of Liquefied Natural Gas (LNG) as a marine fuel to Singapore-based, Eastern Pacific Shipping Pte. Ltd.’s (EPS), vessel.

https://safety4sea.com/peninsula-facilitates-lng-bunkering-for-k-lines-new-dual-fuel-car-carrier/

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Netherland: LNG bunker tanker “Coralius” reaches 100th bunkering milestone

‘100 ship-to-ship bunkerings is a great milestone for Gasum as well as for our customers,’ says Vice President. Gasum’s liquefied natural gas (LNG) bunker vessel Coralius has made its 100th bunkering on Thursday (21 February) in her 18th month of operations. Coralius is operating on behalf of Gasum (former Skangas) and the vessel mainly operates in the North Sea and the Skagerrak area. 

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“100 ship-to-ship bunkerings is a great milestone for Gasum as well as for our customers,” says Kimmo Rahkamo, Vice President, natural gas and LNG, Gasum.

“With Coralius, we have been able to perform bunkering to different types of vessels, which is quite unique and demands us to be prepared for all types of vessels.

“The bunkering operations are swift and safe, and we have received great feedback from our customers. Coralius has definitely increased Gasum’s flexibility as an LNG supplier.”

In 2019, Coralius will perform more bunkering operations than in 2018.

Gasum foresees an increase in the average amount of delivered stem, as it will perform bunkerings on shuttle tankers and other bigger vessels. 

Coralius has also increased its efficiency due to LNG bunkering operations becoming faster – they are now nearly as quick as normal oil bunkerings, which has also increased customer satisfaction.

Coralius was built by the Royal Bodewes in the Netherlands and is the first European built LNG bunker and distribution vessel. It is equipped with state-of-the-art LNG transfer equipment for bunkering and has a cargo capacity of 5,800 m3.

https://www.manifoldtimes.com/news/lng-bunker-tanker-coralius-reaches-100th-bunkering-milestone/

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China: World’s first river-sea LNG bunkering vessel delivered ahead of schedule

The world’s first river-sea liquefied natural gas (LNG) bunkering vessel was delivered in Shanghai on Friday, two months ahead of its schedule, according to China State Shipbuilding Corp (CSSC), the world’s largest shipbuilding company.

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With a length of 130 meters and a width of 23.6 meters, the ship has a capacity of 14,000 cubic meters. Named as Huaihe Nengyuan Qihang, it is independently researched, developed, designed, and constructed by Shanghai-based Hudong-Zhonghua Shipbuilding (Group) Co Ltd, a subsidiary of CSSC.

The vessel, which can navigate both in oceans and the Yangtze River, is tailor-made for serving one-stop LNG bunkering and transportation.

The ship has a localization rate of above 85 percent, the highest among domestic LNG storage and transportation facilities. By collaborating with dozens of domestic enterprises, Hudong-Zhonghua successfully researched and manufactured a series of innovative equipment for the ship, including reliquefaction unit, natural gas compressor, dual-fuel generator sets, and electric propulsion system.

Thanks to its enhanced intelligent manufacturing and improved localization rate, Hudong-Zhonghua managed to deliver the vessel ahead of schedule by shortening the construction period within 16 months.

 

Being the nation’s major waterway between east and west China, more than 3 billion tons of cargo were transported via the Yangtze River, accounting for more than 60 percent of the nation’s river transportation capacity.

 

https://www.chinadaily.com.cn/a/202407/22/WS669e43d5a31095c51c50f4bd.html

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US: Venture Global Launches State-of-the-Art LNG Vessel

ARLINGTON, Va.— Venture Global has launched the first of nine new liquid natural gas vessels, celebrating the event with a ceremony at the Samsung Heavy Industries shipyard in Geoji-si, South Korea. The Venture Gator is outfitted with best-in-class environmental and efficiency technology and will be primarily fueled by Venture Global’s liquefied natural gas.

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All nine vessels are expected to be fully built within the next 24 months, and once launched, will transport LNG from the United States to “multiple global partners,” the company said in a press release.

The launch of the Venture Gator comes almost exactly six months after President Joe Biden paused approvals for new liquified gas projects, and two months after the administration assured the nation’s European allies that the decision would not impact any current LNG exports.

LNG from the U.S. has become a staple for industries across Europe ever since the European Union began reducing its intake of Russian natural gas due to its invasion and ongoing war in Ukraine.

U.S. exports to the EU have been on the increase since the Russian invasion began in February 2022, and now make up about 50% of the LNG supplied to the bloc’s 27 member countries.

According to the U.S. Energy Information Administration, the country currently exports about 14 billion cubic feet of LNG per day.

The Venture Gator will begin deliveries to Europe and Asia this fall.

“Venture Global is proud to have launched our first ship, the Venture Gator at SHI in Korea,” said Mike Sabel, CEO of Venture Global, in a written statement.

“President Biden has committed to increasing LNG supply into Europe and we are pleased to be in a position to continue to support these efforts with a fast-growing shipping fleet, wholly owned, operated and controlled by Venture Global,” Sabel continued.

“With these ships, we will increase the security of natural gas supply, through low-cost LNG delivered directly to allies across the world,” he added.

The 174,000 cubic meter Venture Gator features a new hull design; onboard reliquification (for liquefying gas which has “boiled-off” in transit); air-lubrication systems (ejecting air bubbles from the hull to reduce friction through the water); an auxiliary shaft generator (reducing the number of auxiliary generators running at sea) and exhaust gas recirculation systems (to reduce methane), the combined amenities intended to make the vessel among the cleanest on the ocean today.

The company is also constructing or developing an additional 60 million tons per annum of production capacity in Louisiana to fuel future shipments.

https://www.thewellnews.com/energy/venture-global-launches-state-of-the-art-lng-vessel/

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

US: US-based Protonas to establish plant near Chennai for low-cost PEM hydrogen fuel cell solutions

Potonas, a startup specialising in low-cost PEM hydrogen fuel cell solutions, intends to set up a manufacturing unit near Chennai. The company recently raised an undisclosed amount of seed funding from a group of venture funds led by Transition VC.

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The company, which is headquartered in Tennessee, US, has a subsidiary in Chennai. It aims to deploy its solutions to provide cost-efficient backup power applications in the North American markets and to power fuel cell engines for 3-wheeler transportation and 4-wheeler delivery applications in India and other Asian markets.

With this fresh infusion of capital, Protonas is set to establish initial manufacturing operations in Chennai and build prototype systems. The startup has not disclosed the investment in the plant’s establishment.

Hydrogen fuel cells convert chemical energy from hydrogen to electricity with pure water and useful heat as by-products.

The startup was founded by David DeVries, a fuel cell industry veteran since 1996. Having guided the early-stage development of the world’s first commercially successful cathode air-cooled fuel cells, sold by ReliOn and Altergy Systems in the United States, DeVries has held executive roles across various geographies, including China, California, and Singapore.

Speaking to businessline, DeVries said that he was confident that by the time the company began manufacturing, a green hydrogen ecosystem would have developed in India. “We think hydrogen fuel cells, sometimes even in combination with batteries are a great solution to help out with moving away from high pollution vehicles in the cities. So this is this is a long-term thing. It will take quite a while to get implemented,” he said.

Asked if Protonas wasn’t a little ahead of its time, DeVries said, “These things take time. When we want to do is not wait for the hydrogen to be ready and we want to do fuel cells to work on the development in India and the cost structures, all the manufacturing in India now, so that when the time comes when the hydrogen is ready, we’re also ready with the solution on the consumption side.”

DeVries believed “the hybrid solution is actually the best combination.” Asked if hybrid vehicles wouldn’t cost more, he said that when there is a hybrid “you don’t need the battery to be large, heavy and expensive.” The battery could be used for acceleration, and the fuel cell could be used for range. “They really work well together, they are not mutually exclusive,” he said.

Transition VC is India’s first Energy Transition-focused VC fund, which was launched by investors Raiyaan Shingati and Mohammed Shoeb Ali.Commenting on the investment, Raiyaan Shingati, Co-founder & Managing Partner of Transition VC, said in a press release that “Hydrogen fuel cells have been a reality for a while, but what we are really excited about is making cost efficient hydrogen fuel cells a reality for multiple sectors including mobility, energy storage & industrial applications by investing in Protonas.”

https://www.thehindubusinessline.com/companies/us-based-fuel-cell-start-up-protonas-to-set-up-plant-near-chennai/article68416687.ece#:~:text=Potonas%2C%20a%20startup%20specialising%20in,funds%20led%20by%20Transition%20VC.

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Indigenous-led hydrogen project in B.C. seeks to supply transportation sector with decarbonization solutions

An Indigenous-led hydrogen project is seeking to supply the heavy-duty transportation sector, gearing up to play a role in decarbonization in British Columbia. Salish Elements is aiming to become a small-scale producer of “green hydrogen” in the Lillooet area in southwest B.C. Green hydrogen would be produced through a process known as water electrolysis, in which hydrogen is captured as fuel after being split from oxygen.

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The company’s office is based at the Tsleil-Waututh Nation’s territory in North Vancouver, but the production site would be located in the Lillooet area on the territory of the Xaxli’p First Nation, formerly known as the Fountain Band.

“We have to create opportunity to think of our future generations,” Salish Elements chairman Rueben George said in an interview. “This is something in industry that I’m really happy to be a part of, to move forward and to make a brighter future.”

Mr. George co-founded Salish Elements with Omar Kassem, an engineer who is the company’s chief executive officer.

They say they will think globally and act locally. Dozens of governments around the world have backed hydrogen over the past four years, promoting its increased use in transportation and heating as crucial for the planet to achieve the goal of net-zero emissions of greenhouse gases by 2050.

The co-founders of Salish Elements have a vision of the company helping to refuel heavy-duty vehicles that run on hydrogen fuel cells and emit only water as exhaust and some heat.

Their focus is on studying and planning the $110-million production facility that would supply 3,500 tonnes a year of hydrogen, with the goal to start operations in the spring of 2026.

“We’re ambitious. We want to make it happen, mostly for domestic consumption,” Mr. Kassem said. “We want to drive the local ecosystem for hydrogen in B.C.”

Mr. George, a Tsleil-Waututh member, is optimistic about growth in the province’s fledgling hydrogen industry and wants to offer decarbonization solutions to lessen the dependence on fossil fuels.

He is also manager of the Tsleil-Waututh’s Sacred Trust Initiative, which was created in 2012 to fight the Trans Mountain oil pipeline expansion, or TMX. In May, a tanker headed to China from B.C. after becoming the first vessel to load heavy oil from TMX.

Mr. George said that while oil tankers have been loading since May from Trans Mountain’s Westridge Marine Terminal in Burnaby, B.C., he is still concerned about the risk of an oil spill. However, he has now turned his attention as a climate activist to trying to make a difference with green hydrogen.

The heavy-duty trucking industry remains largely dependent on diesel and it will likely take many years before vehicles with hydrogen fuel cells become a significant factor, industry experts say.

Still, supporters of Salish Elements are optimistic that the gradual trend toward decarbonization on B.C. highways is under way.

Xaxli’p Chief Darrell Bob said collaboration with the company will balance economic benefits and environmental protection at Xaxli’p, which is one of 11 communities that form the St’at’imc Nation. “I think it’s an amazing opportunity for the future, changing the carbon footprint on Mother Earth. With climate change, we need to have climate action,” he said.

Salish Elements wants to start construction on the production facility in the spring of 2025, subject to making a final investment decision by the end of 2024. The company also has long-term plans to open B.C. hydrogen refuelling stations in Abbotsford, Cache Creek, Prince George and Prince Rupert.

“This is a vision that’s led by Indigenous peoples about the way water can be used and turned into clean energy to provide benefit for people and communities,” said Josie Osborne, B.C.’s Minister of Energy, Mines and Low Carbon Innovation.

She added that there are exciting initiatives and research into hydrogen in the province at the University of British Columbia and Simon Fraser University.

Salish Elements is one of more than 50 hydrogen-related proposals in B.C., ranging from production to refuelling stations.

Vancouver-based HTEC, for example, is planning to expand its B.C. network of hydrogen refuelling stations beyond its existing five outlets.

Comparisons with battery-powered electric vehicles are inevitable. Ballard Power Systems Inc., the B.C.-based maker of hydrogen fuel cells that was founded in 1979, argues that fuel cells have major efficiency advantages over batteries for long-distance trucking and buses. But supporters of electric vehicles counter that there are already more than 5,000 recharging stations in B.C. alone for EVs.

The B.C. government created the Clean Energy and Major Projects Office last year to support various proponents with innovative technology, including those advocating for hydrogen.

Besides Salish Elements, small-scale proposals include Quantum Technology Corp.’s plans for green hydrogen in Campbell River on Vancouver Island.

Industry proponents of green hydrogen say there is only a modest amount of emissions during production, compared with higher levels in blue hydrogen, which is derived from natural gas and requires carbon dioxide to be captured and stored.

While Alberta is keen on developing blue hydrogen, climate activists warn against fossil fuel companies promoting natural gas as a feedstock to produce hydrogen.

On the production side in B.C., proposals include large-scale ventures such as Australia’s Fortescue Ltd. hoping to build its Coyote facility for green hydrogen near Prince George, and a separate pitch from the McLeod Lake Indian Band, which is striving to produce both green and blue hydrogen.

Fortescue Ltd. and the McLeod Lake Indian Band could produce green hydrogen for domestic consumption and for shipping to Asia, using ammonia as the energy carrier for hydrogen exports.

Salish Elements will not be producing ammonia and would require only 25 megawatts of power capacity from BC Hydro. By contrast, Fortescue’s Coyote project expects that it will need 900 megawatts for the electrolysis process for hydrogen and another 100 megawatts for ammonia synthesis.

To put that in perspective, the $16-billion Site C hydroelectric dam in northeastern B.C. will add 1,100 megawatts of capacity when fully completed in 2025.

Construction at Trigon Pacific Terminals Ltd.’s export facility, named Berth 2 Beyond Carbon, is now 50-per-cent completed at the Port of Prince Rupert. The $163-million export plant is scheduled to open in 2027, with ammonia among the commodities to be shipped to Asia. The federal government is contributing $75-million toward construction.

But critics are leery of large-scale proposals on Canada’s West Coast and East Coast to produce green hydrogen and ammonia. They say it is highly energy-inefficient to convert hydrogen into ammonia for export.

Julia Levin, associate director of national climate at advocacy group Environmental Defence, is sounding the alarm about what she sees as hydrogen hype. She said electrification and energy efficiency are superior solutions in most instances instead of using hydrogen.

Ms. Levin is a critic of blue hydrogen derived from natural gas, and she is also concerned about large-scale green hydrogen projects because they would need enormous amounts of renewable energy such as hydroelectricity or wind power.

Environmental Defence warns that hydrogen proponents face challenges such as the expensive costs of production. “Financial and regulatory support should only be provided to hydrogen produced with additional renewable energy, for strategic and hard-to-decarbonize sectors where direct electrification isn’t an option,” the group said in a briefing note to policy makers.

https://www.theglobeandmail.com/business/article-salish-elements-hydrogen-bc-transportation/

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US: Hydrogen vessel start cruising the San Francisco Bay

By Alimat Aliyeva The world’s first commercial passenger ship powered by hydrogen will begin cruising the San Francisco Bay on July 19. Its launch is part of a plan to phase out diesel ships and reduce carbon emissions contributing to global warming, Azernews reports.

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The MV Sea Change vessel with a length of 21 meters will be able to carry up to 75 passengers between Pier 41 and the ferry terminal in the center of San Francisco. As part of the pilot program, travel will be free for the first six months. Sea Change is capable of traveling about 300 nautical miles (about 550 km) and operating for 16 hours without refueling. Fuel cells produce electricity by combining oxygen and hydrogen in an electrochemical reaction, the byproduct of which is water. This could help to “green up” the shipping industry, which produces almost 3 percent of the world’s greenhouse gas emissions. At the same time, the International Maritime Organization announced plans to reduce greenhouse gas emissions from commercial shipping by half by the middle of the century.

The authors of the project also hope that hydrogen fuel cells will be able to propel container ships in the future.

Earlier, the US government allocated $ 8 billion for the development of pure hydrogen. However, environmental groups point to the risks of pollution and climate impacts associated with hydrogen. Currently, most hydrogen is produced using natural gas, which does not contribute to reducing carbon dioxide emissions. However, proponents of hydrogen energy believe that in the long term, hydrogen production will become more environmentally friendly through the use of wind and solar energy.

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