NGS’ NG/LNG SNAPSHOT – August 2019, VOLUME II
National News Internatonal News
NATIONAL
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City Gas Distribution & Auto LPG Natural Gas / Pipelines / Company News Policy Matters/Gas Pricing/Others
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Adani Gas on Wednesday reported a 44% year-on-year (y-o-y) growth in net profit to `79.31 crore for the April-June quarter of 2019, led by increase in sales volume and improved operating margins.
Electric Mobility
Will EV firms speed up on government charge? || Government’s EV push has oil industry worried || Kerala - Charged up for an e-vehicle revolutionWill EV firms speed up on government charge?
With GST on the sale of electric vehicles (EV) reduced from 12% to 5%, start-ups are having a good reason to cheer. And it’s not just electric mobility start-ups that are to benefit.
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Even those start-ups that work in tandem with EVs have a lot to celebrate. ”The budget incentives, FAME-II, and now the GST rate cut have provided big incentives to the end buyer of electric vehicles, driving up the demand,” says Sameer Aggarwal, founder and CEO of RevFin, a digital lending start-up that gives loans to electric autorickshaws and electric scooters. Besides the GST rate cut, the government has slashed the tax on chargers and charging stations for EVs from 18% to 5%. Moreover, the government has approved Rs 10,000 crore to encourage faster adoption of EVs under the FAME-II scheme and has done away with customs duty on certain EV parts to boost this nascent segment. EV as a market in India is expected to reach $707.4 million by 2025, growing at a compounded annual rate of 34.5%, as per data by Prescient & Strategic Intelligence. Categorised into battery operated electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles, the market is dominated by battery electric vehicles. Start-ups have been buzzing in this segment with electric cars, two-wheelers, bicycles, and autos, and have been attracting marquee investors off late. Recently, Ola’s electric vehicle subsidiary called Ola Electric Mobility raised $250 million from SoftBank and attained the unicorn status. According to Gagan Agrawal, director of Shigan eVoltz, which manufactures three-wheeled electric vehicles, the sector will attract huge investments including at the micro-level when it comes to lithium-ion batteries, electric powered motors, and controllers, etc. “The GST boost could also help reduce illegally operating e-rikshaws in the eastern and northeastern states while reversing the trend of slow adoption of e-rikshaws in the south and western states.” RevFin is looking to finance 3 lakh electric vehicles in the next five years. “With average finance of Rs1 lakh per vehicle, this translates to loans of Rs 3, 000 crore,” says Aggarwal. However, experts feel a lot more needs to be done to actually boost EVs. Gupta feels that incentives are needed for shared mobility start-ups which are focused on the transition and use of electric mobility, rather than just the sale of vehicles. According to Shamik Moitra, managing partner, Maitreyi Capital Advisors, a GST cut won’t impact fleet operators positively unless the countervailing GST input-output is matched between the manufacturer and the service provider. Agrees RevFin’s Aggarwal who feels the GST needs to be rectified as manufacturers procure raw materials at 12% GST. “This increases the cost for manufacturers. There are over 600 EV manufacturers in India, most are small and will not be able to absorb this cost and may scale down.” Moreover, there needs to be a thorough check on whether there exist other encouraging factors on the demand side like if there is an incentive to switch from CNG to electric, adds Moitra. “And about the switching costs, who bears it? There needs to be an integrated mass transport plan which focuses on influencing the microeconomics of hired vehicles.” Says Aggarwal, “Incentives are needed to switch from CNG/diesel vehicles to EVs. And re-conversion of old chassis from CNG to electric at subsidised rates.”
https://www.dnaindia.com/automobile/report-will-ev-firms-speed-up-on-govt-charge-2777782
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Government’s EV push has oil industry worried
The overemphasis on Electric Vehicles (EVs) by the government has the oil and gas industry in India concerned.
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The industry feels that the prevailing situation will lead to investors and bankers having second thoughts on making investments in the oil and gas sector. The players under the aegis of Federation of Indian Petroleum Industry (FIPI), which represents Indian Oil Corporation, Reliance Industries, Nayara Energy, BP, ONGC to name a few, propose to take up the issue with the Ministry for Petroleum and Natural Gas. “Huge investments have already been made by the oil refiners for BS VI stage. The public sector refiners alone are executing projects worth more than ₹30,000 crore to move from BS IV to BS VI fuel quality level,” Direct-General FIPI RK Malhotra told BusinessLine. Malhotra feels that instead of just pushing EVs, the government should promote and incentivise hybrid technology (IC Engine plus battery) that do not require charging stations. “Many factors will come to play when we are looking at a scenario of 100 per cent EV mobility in the future,” he said adding that these include development of efficient power storage system; battery technology and dependence on imported lithium and cobalt; charging infrastructure and mode of electricity generation for EVs. Besides, the economic and environmental benefits of EVs should be weighed vis-a-vis oil and gas industry and the impact on jobs created by this industry, he said. “While the petroleum sector contributes significantly towards the central and state exchequers, alternatives fuels and EVs need incentives,” Malhotra said. The confusing signal coming from the government has left the industry worried. On the one had the government wants the players to increase domestic oil and gas production and on the other it is fixing deadlines for EVs. India’s energy demand is going to more than double by 2040 and this has to come from various sources. EVs may have some role in future, but not immediately. Malhotra said that for heavy duty vehicles like trucks, the EVs option is not viable as trucks are supposed to carry pay load rather than heavy batteries. In fact, LNG as a transport fuel is a better option, he said. “China and Korea are reviewing EV policy vis-à-vis hydrogen fuel cell vehicles,” he said.
https://www.thehindubusinessline.com/todays-paper/tp-news/article28829783.ece[Edited]
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Kerala – Charged up for an e-vehicle revolution
Despite the state’s eagerness to get e-vehicles up and moving, things seem to be moving at a snail’s pace.
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The fundamental reason? Experts cite ‘range anxiety’, which is the worry that the electric vehicle might run out of charge before reaching a charging station and leave the person stranded, as the primary reason for hampering the growth of e-vehicles. The solution? Sufficient charging points and vehicles with extended range. As a first step, the state had set up its first electric vehicle recharging station at the Indian Oil Corporation’s retail outlet at Edappally. As a move to encourage more electric vehicles, IndianOil will charge all vehicles free of cost till September 30. However, with 20 e-rickshaws and a handful of electric vehicles, more charging points are required. To encourage more e-vehicles, Bengaluru-based Altigreen will soon be setting up charging stations in Kochi. The company which is launching Altigreen Electric 3W Autos in Ernakulam, has already identified 50 such outlets across the city. Charging stations will be spread out within a three-km radius. Altigreen autos, however, will also be equipped with an app which will enable them to see the location of such charging stations. “Though the government is putting together its plans for providing a charging infrastructure, Altigreen has also come up with a roadmap to provide for a charging network that will boost the confidence of the initial buyers of Altigreen Electric 3W Autos. Modi 2.0 has made it clear, beyond a shadow of a doubt that it wants to see the rise of electric vehicles by 2023. From the reduction of GST on electric vehicles from 12% to 5%, to the proposal for custom duty exemption on import of specific components including solar batteries and charging infrastructure, the government demands three-wheelers to be electric by 2023. The state is planning to launch two lakh two-wheeler vehicles, 50,000 three-wheeler vehicles, 1,000 good carriers, 3,000 buses and 100 ferry boats that run on electric power by 2022. Kerala has indeed taken the matter rather seriously with the state planning to launch two lakh two-wheeler vehicles, 50,000 three-wheeler vehicles, 1,000 good carriers, 3,000 buses and 100 ferry boats that run on electric power by 2022.
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SNAPSHOT: NATIONAL
Natural Gas / Pipelines / Company News
GAIL appoints Ashutosh Karnatak as interim CMD || GAIL India Q1 net profit rises 15% to Rs 1,288 crore, revenue up 6% || Construction near pipeline: Notice to government || GSPL pipeline plan gets boost from J&K moveGAIL appoints Ashutosh Karnatak as interim CMD
GAIL (India) Limited’s Director (Projects) Ashutosh Karnatak has been appointed as the interim Chairman and Managing Director of the company.
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He has been serving as the Director (Projects) since March 2014. Karnatak is an Electrical Engineering alumni of Harcourt Butler Technical University, Kanpur and a post graduate from IIT, Delhi. He is also a Fellow Doctorate of UPES, Dehradun, a company statement said. He took charge after former GAIL (India) CMD, B C Tripathi was denied a third extension.
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GAIL India Q1 net profit rises 15% to Rs 1,288 crore, revenue up 6%
State-run GAIL India on Friday (August 9) reported 15% quarter-on-quarter (QoQ) growth in its standalone profit after tax (PAT) at Rs 1,288 crore for the first quarter ended June 30, 2019, helped by a better financial performance by gas marketing, gas transmission segments and liquid hydrocarbon segment. “
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The country’s largest state-owned natural gas processing and distribution company had posted a standalone PAT of Rs 1,122 crore during the same quarter last year,” GAIL India said in a filing to the Bombay Stock Exchange. On a yearly basis, GAIL’s PAT rose merely by 2 per cent to Rs 1,259 crore in the corresponding quarter of FY2019. Standalone revenue from operations grew by 5.9 per cent to Rs 18,311 crore in April-June quarter of the current fiscal as against Rs 17,298.59 crore in the year-ago period. The other income increased to Rs 151.18 crore as against Rs 119.61crore in the same quarter last year and Rs 865.88 crore in March quarter. On a consolidated basis, GAIL’s net profit stood at Rs 1,504 crore and revenue was at Rs 18,467 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 34.3 per cent QoQ to Rs 2,357.6 crore, while EBITDA margin rose by 360 basis points to 12.8 per cent. The total expenses of the company increased to Rs 16,482 crore in Q1FY20 versus Rs 15,478 crore in Q1FY19.
GAIL India said that Petroleum and Natural Gas Regulatory Board (PNGRB) has issued various provisional transportation tariff orders in respect to natural gas pipeline tariff. Some of these orders have been contested by the company with Appellate Tribunal for Electricity (APTEL), which were sent back for review to PNGRB. Commenting on Q1 earnings, GAIL Chairman and Managing Director Ashutosh Karnatak said the increase in net profit in June quarter 2019-20 was supported by better financial performance in natural gas marketing and transmission segments which outshone a muted performance in petrochemicals. Boosted by Q1 earnings, shares of GAIL India closed 1.48 per cent higher at Rs 123.70 apiece on the BSE.
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Construction near pipeline: Notice to government
The Gujarat high court on Thursday (August8) issued notice to the state government, the Gas Authority of India Ltd (GAIL) and land developers in response to a PIL seeking removal of construction of a housing society, allegedly built on top of natural gas pipelines in Vadodara.
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A consumer rights activist, P V Moorjani, has filed the PIL for removal of construction of part of a housing society – Earth Somnath – on Gotri-Sevasi road claiming that the builders have put up construction within five metres of the underground pipeline and that part of the construction was on land of a notified water body. Moorjani submitted that after the land owner’s request to convert the land as NA, the district collector had written to GAIL for NOC since a pipeline ran beneath it. In August 2013, GAIL consented to the NOC upon certain conditions. In October 2013, the collector granted NA permission under Section 65 of the Gujarat Land Revenue Code. The petitioner claimed that the civil engineer’s examination report revealed in December 2018 that the construction was carried out within five metres of the pipeline instead of keeping a clear margin of 15 metres. The engineer further pointed out that the land developers had encroached upon government land, which is for a pond and had developed common clubhouse and swimming pool on this particular patch.
By terming the construction illegal, the PIL demanded its removal because the construction allegedly took place in violation of conditions laid down by GAIL for granting NOC. Further hearing on the issue is likely to take place later this month.
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GSPL pipeline plan gets boost from J&K move
Gujarat State Petronet Ltd’s (GSPL) ambitious project of developing a natural gas pipeline project from Mehsana all the way up to Jammu and Kashmir is expected to get a major boost with revocation of special status to J&K under Article 370.
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The project is divided in two phases. Work on first phase connecting Gujarat and Punjab has been on. The second phase, covering Jammu and Kashmir, has been stuck for a long time. “Land acquisition not permitted under Article 370 was a major problem in Jammu and Kashmir,” according to a state government official. Now, land acquisition and infrastructure development will be smoother, he added. Also, the Central government’s plans for industrial development in Jammu and Kashmir will create a market for the clean fuel option. The J&K Gas Pipeline Act, 2014 with provisions of Right of User (RoU) needed amendments that got stuck with the state government for a long time, said another government official. “While some amendments were made last year, there was no provision for acquiring land to build gas terminals for storage purposes,” he added. The Centre’s decision to do away with the special status for Jammu and Kashmir paves way for the project as it will now fall under the Union government’s Petroleum and Minerals Pipeline (P&MP) Act, 1962. Officials say challenges of building pipelines in difficult terrains and its economic viability have to be taken into account before starting construction for second phase. The construction work for first phase to build a 1,670km gas pipeline from Mehsana to Bhatinda will begin in a month’s time, said an industry official. Contracts of about Rs 3,000-3,500 crore for laying pipeline infrastructure have already been awarded to companies like Kalpataru Power Transmission Ltd and Hyderabad-based Megha Engineering and Infrastructure Ltd. The first phase will be commissioned in 2020 following which construction for the second phase will begin. The pipeline project is a part of Prime Minister Narendra Modi’s plan for National Gas Grid. A consortium led by GSPL has formed a special purpose vehicle called GSPL India Gasnet Ltd to implement the project. GSPL has a 52% stake in the SPV, with Indian Oil Corp Ltd holding 26%, and Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp. Ltd having 11% each. In 2011, Petroleum and Natural Gas Regulatory Board (PNGRB) had authorized Gujarat State Petronet Limited (GSPL), a subsidiary of the Gujarat government, to lay Bhatinda-Jammu-Srinagar gas pipeline.
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SNAPSHOT: NATIONAL
Policy Matters/Gas Pricing/Others
Maruti Suzuki bets big on green fuel technologies || Government reforms for natural gas sectorMaruti Suzuki bets big on green fuel technologies
Chairman RC Bhargava said the objective of reducing oil consumption and pollution would be met by CNG vehicles, hybrid cars and the increasing use of biofuels.
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India’s largest car maker Maruti Suzuki India’s (MSIL) chairman RC Bhargava told the firm’s shareholders that the company is committed to reducing oil consumption and achieving cleaner environmental standards, towards which it is betting big on green technologies, including CNG and hybrid cars. In MSIL’s annual report for FY19, Bhargava said in that all these technologies should be encouraged in order to cut oil imports and reduce air pollution. “We had started in this direction many years ago with the introduction of factory-fitted CNG vehicles. The production of such cars increased by 40% in 2018-19 and this year is targeted to increase by near 50%,” he said. The government, he noted, has also announced a large programme to increase CNG outlets and this should result in the steady increase in CNG vehicle sales. And while he said MSIL is working on electric vehicles with the support of Toyota, “the challenges for electric vehicles in India, arising mainly from battery technology, and infrastructure limitations are likely to result in electric vehicle acceptance by customers being slow in the short term,” he added. Meanwhile, the objective of reducing oil consumption and pollution would be met by CNG vehicles, hybrid cars and the increasing use of biofuels, Bhargava said. Since India is a fast-growing market for cars unlike most parts of the world, there was a need for using all these technologies, he concluded. Other company officials also took a similar tone. MSIL managing director and chief executive officer Kenichi Ayukawa said that oil imports were a major challenge for India and that it needs to pursue technologies to minimise the use of oil in automobiles. CNG vehicles and hybrid electric vehicles can help reduce oil consumption significantly as compared to internal combustion engine-powered vehicles, Ayukawa said. “In this context, the business partnership between Suzuki Motor Corporation and Toyota Motor Corporation will help the company gain access to the technologies which are important to keep the company future ready,” Ayukawa concluded.
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Government reforms for natural gas sector
The government is planning to introduce a wave of reforms in the natural gas sector, aimed at l ocal discovery of prices and development of a national gas market.
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The oil ministry has prepared a Cabinet note that proposes snapping the power sector’s priority access to cheap local gas, setting up a gas trading platform to encourage market discovery of prices, and hive off GAIL’s transportation unit to enhance third party access to its pipelines. At present, India produces just half of the gas it consumes, a government set formula determines rates for most local gas, and the absence of market price deters producers from investing in the country. By allowing marketing freedom to gas from new discoveries, the government has tried to address much of the investors’ concerns in recent years but officials think developing a free market was essential to sustained investment in the sector. Which is why the government wants to build a gas trading platform that can facilitate market discovery of prices. A gas exchange will enhance trade transparency, boost consumer confidence, and increase market opportunities for suppliers, officials said. “But an exchange can work only if we have enough domestic gas to trade. Most of the gas is already allocated to priority consumers. We need to free up some gas,” an official said. Official guidelines bind producers to supply their output to certain consumers, mostly at rates based on a government-set formula. The oil ministry has, therefore, proposed to knock off the power sector, the biggest consumer of local gas, from the so-called priority list. It has proposed limiting the allocation to city gas (CNG vehicles and households) and the fertiliser sector, an official said. The power sector consumes about 31% of the local gas while the fertiliser and city gas sectors consume 24% and 22%, respectively. The proposal is likely to meet a fierce opposition by the power ministry and generators. India has 25,000 MW of gas-based plants in a total generation capacity of 356,000 MW.
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SNAPSHOT: NATIONAL
LNG Development and Shipping
• IOC, GAIL pact to buy stake in Adani's LNG project expires || Gail India issues tender to sell and buy two cargoes of LNG Indian Petronet LNG’s Apr-Jun regasification volumes rises on Dahej terminal expansion
Indian Petronet LNG’s April-June regasification volumes inched 1.4% higher year on year as it was able to utilize the expanded capacity at its flagship Dahej terminal for a few days during the quarter.
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The terminal’s imported volumes rose to 217 trillion Btu (6.1 billion cubic meters) in the first quarter of the current fiscal year ending March 2020. It operated at 112% capacity during the period. The Dahej terminal has a nameplate capacity of 17.5 MMTPA, up from 15 MMTPA, with the expanded capacity coming into operation from June 26 onwards. The higher regasification volume was achieved due to better efficiency in operations as well as the utilization of the expanded nameplate capacity for six days. In addition to the Dahej terminal in the west coast, Petronet LNG operates a 5 million mt/year LNG terminal at Kochi in Kerala. The terminal at Kochi continued to operate below its capacity in the absence of a developed pipeline network in South India. Overall, Petronet processed 226 trillion Btu at both the terminals in April-June, up 2.7% year on year, the company said. India’s dependence on LNG imports is set to rise, as domestic production is expected to grow at a compound annual growth rate of 8.89% over the next five years, while demand is expected to increase by 11.07% over the same period, according to S&P Global Platts Analytics.
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Lower spot LNG may push India’s top gas importer to renegotiate deals
India’s top gas importer Petronet LNG will consider renogiating its long-term supply deals to secure lower LNG prices if spot prices remain weak for two to three years, its managing director said on Thursday (August 5).
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An inexorable decline in spot market prices for LNG is driving some buyers in Japan and China to request delays in term cargoes, while others are looking to lift lower volumes under their term contracts from LNG sellers. “There is no doubt. We have to be sensitive to the international market. If spot prices continue to be low for 2-3 years then you don’t have much of a choice, and there would be a case to look at renegotiation,” Prabhat Singh told Reuters. Petronet has a deal to buy 7.5 MMT of LNG annually from Qatar’s Rasgas and 1.44 MMT from Exxon’s Gorgon project in Australia. The Indian company is buying gas under these deals at $8.25-$9.50 per MMBtu, he said, while spot LNG LNG-AS prices are around $4/MMBtu. Petronet previously renegotiated pricing of the Australian deal in 2017 and with Rasgas in 2015. Singh also said there was a gradual shift to pricing long-term gas purchase deals off spot price indices rather than crude oil prices. India wants to raise the share of gas in its energy mix to 15% in next few years from 6.5% currently.
Source: LNG Global
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Demand for cut in gas rates as global LNG prices fall
A collapse in global liquefied natural gas (LNG) prices is fuelling demand at home for reworking the government-set price ceiling for gas from difficult terrains to cut high domestic rates in line with global prices, a move that could cap gains for producers such as ONGC and Reliance Industries while boosting affordability for consumers.
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The price ceiling for gas from difficult fields today stands at $9.32 per MMBtu while the domestic formula price, which applies to most locally-produced gas, is $3.69 per MMBtu. By comparison, the spot rates of LNG delivered to Indian shores are in the range of $3.5-$4 per MMBtu. Local rates, published every six months, factor in data for the trailing four quarters with one quarter lag. The next revision, due in October, will likely bring down ceiling but executives at key gas buying firms fear the fall could be small and delayed as the calculation is based on price data for a longer period. They want the government to shorten the period for calculation of ceiling to reflect the current global slump. Producers are free to market their gas from difficult terrains such as deep sea and high pressure high temperature areas but prices can’t cross the ceiling prescribed by the government—an incentive, introduced three years ago, that prompted RIL-BP and ONGC to pledge billions of dollars of investments in their deep sea fields. But global prices have since collapsed. GAIL, Indian Oil, Bharat Petroleum and GSPC are some of the major buyers of domestic and imported gas in India. So far, ONGC is the only beneficiary of higher rates for gas from difficult terrains. And the two buyers of its gas, GAIL and GSPC, are paying about $8 per MMBtu currently for its gas, according to sources, much higher than the spot LNG rates. ONGC has more supplies lined up for next year while Reliance too plans to produce gas from its deep sea fields early next year, for which bids are likely to be invited later this year. Vedanta also enjoys pricing freedom for its gas even though its Barmer field is not a difficult field. It is currently engaged in pricing negotiations with GAIL. Local producers often cite expensive long-term LNG deal with Qatar to seek a higher price. “Domestic producers want their gas to be benchmarked to Qatar deal and not spot rates, which is unfair. They must realise that the global gas market has totally changed and the LNG market is oversupplied and would remain so for years,” said an executive. Indian buyer pays Qatar $9 per MMBtu under the long term deal that was renegotiated in 2015 and yet looks expensive today. Price ceiling has risen 40% since April-September 2016, when it was introduced, while the domestic formula price is up 20%.
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Natural Gas / Transnational Pipelines / Others LNG as a Marine Fuel / Shipping Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
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SNAPSHOT: INTERNATIONAL
Global LNG Development
Asian LNG prices edge higher as buyers return || Asia LNG spot cargoes trade below $4 on abundant global supply || Indonesia’s Donggi Senoro LNG may cut spot sales as prices plungeAsian LNG prices edge higher as buyers return
Asian spot prices for liquefied natural gas (LNG) edged up this week amid increased market activity driven by hot weather in parts of Japan, South Korea and China, with several buyers looking for cargoes.
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Spot prices for delivery in northeast Asia in September are estimated at $4.20 per MMBtu, up 10 cents from last week. Prices for October are estimated at around $4.75/MMBtu. After some deals were done below $4.00/MMBtu last week for the first time in the past three to four years, this week’s deals were concluded largely slightly above $4.00/MMBtu, trade sources said. China’s Guangzhou Gas has bought a cargo for August delivery from Glencore for over $4.00/MMBtu and India’s Reliance Industries bought a September cargo above $4/MMBtu. Japan’s Tohoku Electric Power was seeking a cargo for delivery from late August to early September. In the Atlantic, Colombia’s Calamari import project was seeking a small cargo for late August-early September delivery. Some winter demand started to appear, with Turkey’s Botas closing a tender for four winter delivery cargoes. Pakistan issued a tender for the supply of 10 LNG cargoes between the start of October and the end of December closing on Sept. 5. In northeast Asia, winter demand is expected to emerge later, however. “Weather forecasts for northeast Asia now suggest that much of the rest of August will be hotter than normal,” Energy Aspects said in its Global LNG Panorama report this week. .Some support to spot prices came from a jump in European prices late last week, an LNG trader said, adding that a deal was done at around $4.40-4.50/MMBtu on the price jump. The rise in European prices was driven by short covering, however, with prices levelling off this week as European market is facing a full storage situation next month. LNG supply offers remained ample, keeping the global LNG market significantly oversupplied. In the Atlantic basin, Angola LNG offered a late August-early September delivery cargo, while GAIL (India) offered three cargoes from its U.S. offtake for loading over October, November and December. In Asia Pacific, projects in Papua New Guinea, Indonesia, Brunei and Australia were among those that issued sell tenders.
Australia is expected to maintain strong exports, a market source said. A Chevron executive told investors last week its Australian facilities’ output was better than expected. “Reliability is coming up, we have extra production over and above what we had planned and so all that production is going to be exposed to spot prices,” he said.
https://www.hellenicshippingnews.com/asian-lng-prices-edge-higher-as-buyers-return/
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Asia LNG spot cargoes trade below $4 on abundant global supply
Cargoes of liquefied natural gas are trading in Asia below $4 per MMBtu for the first time in several years, as new supply floods the global pool and as demand from North Asia remains weak, industry sources said.
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The last time a cargo traded below $4 was likely about three to four years ago, two of the six industry sources said on Thursday (August 1). Indian Oil Corp bought a cargo for delivery in the second half of August from commodity trader Trafigura at $3.69 per MMBtu through a tender, the sources said. Separately, China National Offshore Oil Corp (CNOOC) bought a cargo for delivery in early September from Vitol at $3.90 per MMBtu, the sources added. Companies do not typically comment on their trade deals. Spot LNG prices in Asia were at $10 per MMBtu at the same time last year, after reaching a four-year high in June 2018, Eikon data showed. They have been steadily dropping after a mild winter reduced demand last year and by new supply this year. The Japan-Korea-Marker, a benchmark price assessed by S&P Global Platts that is fast gaining traction among traders, fell to a record low of $3.65 per MMBtu on May 26, 2009, a Platts spokesman said. Platts started the assessment in January of that year. “The market’s pretty weak at the moment and the Indian cargo is probably a record low (price),” said one of the sources, a Singapore-based LNG trader. “Prices are weak in Europe and in the United States as well.” European spot LNG prices have been trading at a discount to the benchmark Dutch month-ahead gas price at levels below $3.40 per MMBtu this week. “We are in an oversupplied LNG market, and demand growth from Asia has not been able to keep up with global supply growth,” said Edmund Siau, an LNG analyst with FGE. “The next price support level would come from turning down of U.S. LNG supply, however winter prices would need to fall significantly for this to happen.” IOC also bought a cargo for September delivery at $4.20 per MMBtu from Vitol, while PetroChina bought a cargo for September delivery from Vitol at $4.05 per MMBtu during the S&P Global Platts trading period on Wednesday, the sources added. While the prices could quickly turn around for the winter amid colder temperatures, high gas inventories in Europe could weigh on prices, Siau said. “More supply is set to arrive on the market with new U.S. LNG trains which are starting and ramping up. We see production from Cameron, Freeport, Corpus Christi, and Elba Island all ramping up through year end,” he added.
Source: Reuters/LNG Global
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Indonesia’s Donggi Senoro LNG may cut spot sales as prices plunge
Indonesia’s Donggi Senoro LNG is considering a cut in its spot market sales for the rest of this year due to low prices, reversing a previous decision to boost sales outside its contracted volumes, a senior official said.
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The LNG exporter’s move comes as spot LNG prices have fallen to a multi-year low on the back of new projects in Australia and the US. The S&P Global Platts JKM for September cargoes was assessed at $4.175/MMBtu on Friday (August2), down from $10.10/MMBtu a year earlier. Donggi Senoro originally planned to produce 43 cargoes in 2019, of which 32 were dedicated for long-term buyers and the remaining 11 cargoes were planned for the spot market, operations director Kurniawan Rahardjo said on the sidelines of the Gas Indonesia conference in Jakarta last week. The company has sold 6 out of the 11 uncommitted LNG cargoes on the spot market so far, but it may hold back from further spot sales if LNG prices remains low, Rahardjo said. “We call it as a volume adjustment. We are pessimistic, looking at the LNG price that has not increased,” he said. Donggi Senoro has a nameplate LNG production capacity of 2 MMTPA. This equates to around 36 LNG cargoes per year, according to its website. It has long-term delivery commitments to three buyers–Japanese utilities Chubu Electric and Kyushu Electric, and state-owned Korea Gas Corp. If the long-term buyers do not take the cargo, then the cargo is available for the spot market. “More significant downside risks to the forecast are emerging, particularly if temperatures continue to register below normal for Northeast Asia, which would ultimately push volumes back into an LNG saturated Europe,” according to the Platts Analytics latest July report. Donggi Senoro was the first Indonesian LNG project developed as a downstream business allowing for the separate development of upstream and downstream operations. Rahardjo said under its upstream contract, Donggi Senoro has the right to cut its gas intake from producers by as much as 10% of the gas volume if needed. Donggi Senoro mainly receives gas supply from the jointly owned project of Pertamina Hulu Energi and Medco E&P, with a volume of 250 million cu ft/d from the Senoro Toili gas block and 85 million cu ft/d Pertamina EP’s Matindok block, SP Global Platts reported previously. Donggi Senoro LNG is owned by Pertamina’s subsidiary Pertamina Hulu Energi (29%), PT Medco LNG Indonesia (11.1%) and Sulawesi LNG Development Ltd (59.9%).
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Noble, Delek mull over new LNG terminal
Noble Energy and Delek Drilling, the operators of the Leviathan offshore gas field in Israel, may add a floating LNG export terminal to their project if it proved commercially viable, S&P Global Platts reports, quoting the Israeli company.
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“Liquefying the natural gas from Leviathan will enable us to transport it worldwide, thus reaching new export markets, mainly in Europe and in Asia,” Delek Drilling’s chief executive Yossi Abu. If the partners decide to go ahead with a floating LNG facility, this would add to growing LNG export capacity that has already pressured international prices by creating excess supply, and has made it harder for some industry players to find the funding they need to build their LNG terminals. Yet the Leviathan facility would not be among the largest ones, it seems. For now, Noble Energy and Delek are considering an annual capacity of between 2.4 and 5 million tons of LNG. To fund the project, the two would rely on a long-term charter contract with an LNG shipping company—Golar LNG or Exmr—and the company will undertake the funding, construction, and operation of the floating facility. A recent report by RBC warned that the global glut in natural gas, including LNG, will remain until the middle of the next century as the United States continues to increase production and large-scale LNG projects in other parts of the world begin commercial production. China is expected to become the world’s top LNG importer within the next five years, just as the U.S. becomes the largest exporter by 2024, with annual exports of over 100 billion cubic meters in that year. That, however, would only work out with stronger LNG prices and an end to the trade war that has stumped some LNG ambitions because of the lack of long-term import commitments, notably from Chinese importers.
https://oilprice.com/Latest-Energy-News/World-News/Noble-Delek-Mull-Over-New-LNG-Terminal.html#
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U.S.-China trade dispute would crimp expansion of U.S. LNG supply capacity: analyst
The on-going U.S.-China trade dispute would crimp the expansion of U.S. liquefied natural gas (LNG) supply capacity, a senior analyst with the consulting firm Wood Mackenzie has said.
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The trade dispute is a barrier to the signing of more long-term deals between China and the United States on the LNG supply, said Alex Munton, principal analyst for Americas LNG research at Wood Mackenzie during a recent webinar of the consulting company. China now has little exposure to the U.S. market, with only one long-term LNG purchase agreement signed so far, according to Munton. “The longer the dispute rumbles on, the more downside there is with respect to U.S.-China LNG trade,” he said. Since the trade war began, U.S. LNG export to China has essentially grounded to a halt pending a resolution of trade negotiation, Munton said. “In the events of a resolution, it’s all upside.” The potential for both LNG demand growth from China and that for LNG supply growth from the United States is huge, said the analyst. China and the United States are expected to become the world’s largest LNG importer and exporter respectively by 2024, according to the latest forecasts by the International Energy Agency.
https://www.xinhuanet.com/english/2019-08/05/c_138284522.htm
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SNAPSHOT: INTERNATIONAL
Natural Gas / LNG Utilization
Italy, first country in Europe in infrastructure for heavy LNG trucks || Spain: more than 85% of Murcia public transport fleet runs on CNG || U.S. Senate approves $1 billion plan for alternative fuels infrastructureItaly, first country in Europe in infrastructure for heavy LNG trucks
In recent months, Italy has overtaken Spain for the number of service stations for trucks that use LNG, becoming the leading operator in the sector in Europe.
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The ConferenzaGNL notes this on the basis of the data published by REF-E in the abstract of the interim report 2019 “SSLNG Watch”. The stations for trucks in Italy are now 53, of which 15 opened since the beginning of the year. Another nine facilities are equipped with a cryogenic tank but only deliver L-CNG for cars. Meanwhile, Gasnam reviews 44 sites in Spain, all for truck refueling. According to NGVA Europe, Italy and Spain are followed by France with 31 stations, Holland with 24, Great Britain with 13, and Belgium with 10. Germany is still behind, with only six refueling points but entered the sector only two years ago. Worldwide, China is in first place with around 1,300 LNG stations and 80,000 trucks, followed by Europe with 218 (NGVA census updated with the most recent openings in Italy and Spain) and over 5,000 trucks, of which almost 2,000 are registered in Italy; in third place is the United States, with 144 sites registered by NGV America. REF-E points out the start of the authorization procedure for the supply of tankers at the OLT floating regasification terminal of Livorno. As also reported in the conclusions of the International Conference by ConferenzaGNL held on May, Italy’s European record is put at risk by the indispensability of the “Ventimiglia corridor”, covered by almost 100% of the trucks that supply LNG from the regasification plants in Marseille and Barcelona. The report also announces the operation by August 2020 of the Higas LNG coastal depot in Santa Giusta (Oristano, Sardinia), the start of the methanization of the Island, the conclusion of the tender for LNG loading arms for the Porto Torres depot project, also in Sardinia, and the selection of the subjects interested in the Augusta deposit project. The summary of the intermediate report of the SSLNG Watch also deals with the issue of the regulation of small-scale LNG services, in particular as regards the tariff system of isolated networks fed with vaporized liquid methane, a topic of particular interest for the methanization of Sardinia.
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Spain: more than 85% of Murcia public transport fleet runs on CNG
The mayor of Murcia José Ballesta, together with the Councilor for Youth and Sustainable Mobility Rebeca Pérez, presented the new vehicles that will be added to the municipal public transport fleet:
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two buses and two minibuses that run on natural gas and that will improve the service quality, adding more seating capacity and reducing pollution and the emission of particles up to 99%. The urban transport service of Murcia, which began with 24 buses, currently has a fleet of 36 vehicles. Of this fleet, 31 of them already run on CNG: 18 minibuses with 18 seats plus 1 PMR, 2 minibuses with 31 seats plus 1 PMR, and 11 buses with 74 seats plus 1 PMR. The recent incorporation is part of Murcia Metropolitan Mobility Plan, the city council’s new transport model, which will favor sustainable mobility with new clean means of transport and will allow to reorder and implement the lines that provide the service between Murcia and districts. “Successful cities in the future will be those that achieve an intelligent balance in the different components of the following urban trilogy: economic competitiveness, social cohesion and environmental sustainability,” said Balleta. With a total investment of 800,000 euros, financed entirely by the concessionaire, the four new vehicles total 212 seats. “In 2016 we already increased the fleet with two new vehicles, now we do it with four more and, in the next two years, we will add another six new buses to the fleet,” the official concluded.
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U.S. Senate approves $1 billion plan for alternative fuels infrastructure
U.S. Senator John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works (EPW), announced the approval of the S. 2302, the America’s Transportation Infrastructure Act (ATIA), a broad bipartisan infrastructure bill that includes funding for natural gas stations.
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The legislation creates a $1 billion grant program to build infrastructure for alternative fuel vehicles in highway corridors where it does not currently exist, so that drivers of these vehicles do not experience “range anxiety” that their car could leave them stranded. Drivers of electric, hydrogen, and natural gas powered cars will now have access to these power and fuel stations. “Our climate is changing, and we recognize that. We also recognize the need to reduce carbon emissions from our transportation infrastructure. Dedicated funding and new incentives in our legislation will help states reduce their total transportation emissions. For example, states can get funding to help mitigate traffic congestion in urban areas. They also can choose to develop plans to reduce transportation related emissions and compete for additional funds if they meet or exceed them,” said Barrasso. U.S. Senators John Barrasso (R-WY), Tom Carper (D-DE), Shelley Moore Capito (R-WV), and Ben Cardin (D-MD) introduced America’s Transportation Infrastructure Act of 2019. The bill is the largest highway legislation in history.
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Iveco gets approval to produce and sell natural gas vehicles in Argentina
Within the framework of the 50 years of uninterrupted manufacturing, IVECO Argentina announced to be the first company in the country to receive the government’s authorization to commercialize natural gas vehicles.
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The company currently offers the Natural Power range in the Argentine market with the Daily (van and chassis) vehicles and the CNG Stralis of European origin. “It should be noted that we were not only the pioneers in the Natural Power range, the CNG commercial vehicles of the country, but also after much work we are now registered and authorized to sale of alternative energy vehicles, which will allow us to continue betting on the Argentine market. This great milestone was achieved thanks to the joint work of the entire IVECO Argentina team,” said Francisco Spasaro, Marketing Manager of IVECO Argentina. The new vehicles on the market have been designed and manufactured to run exclusively on natural gas, obtaining the same performance and durability compared to a diesel vehicle. IVECO has a great interest in reducing the carbon footprint in the environment. “We paved the way for Argentina to move towards a more sustainable and environmentally friendly transport,” added Spasaro. For its part, the Union of Mechanics and Related Automotive Transport (Smata), Córdoba delegation, reached an agreement with Iveco for the production of the natural gas trucks in order to keep about 200 jobs until December 2020. In August they will produce the first two prototypes.
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Italy: 26 new NGV stations will open throughout the country in 2020
Snam and IP have agreed to construct an initial 26 new natural gas refueling stations, which will open across IP’s distribution network in Italy in 2020.
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These openings comprise the first phase of the 2018 framework agreement between IP and Snam to build up to 200 new NGV stations in Italy. The initiative is part of the companies’ commitment to promoting sustainable mobility. Snam and IP have jointly identified the fueling stations with IP branded fuel, at which they will install CNG dispensers for cars. Two of these stations (in Veneto and in Emilia-Romagna) will also supply LNG for heavy vehicles. Of the 26 new facilities, six will be built in Lazio, six in Lombardy, five in Tuscany, two in Emilia-Romagna, two in Veneto, one in Abruzzo, one in Calabria, one in the Marche, one in Piedmont, one in Puglia and one in Umbria, mostly along highways. This initiative is a significant growth opportunity for IP, consistent with the company’s vision to innovate and provide a multi-energy offer, from diesel to petrol, natural gas and ultrafast electricity. The new facilities add to the 46 existing natural gas stations on the IP network, demonstrating a concrete contribution to the construction of the infrastructure supporting the country’s transition to sustainable mobility. The investment in new LNG stations in particular represents an important step for the network’s ability to support heavy transportation powered by natural gas. The agreement with IP is part of Snam’s commitment to boosting the growth of the Italian distribution network of CNG and LNG, through direct investments and agreements with other operators. Italy is the European leader NGV mobility with 1 million natural gas vehicles and around 1,350 service stations. This number is set to increase as a result of Snam’s investments. Snam4Mobility, a 100% subsidiary of Snam, has currently delivered six stations and contracted over 70 under a plan that provides for an overall construction of around 300 new CNG and LNG stations in the coming years.
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Colombia: Cali transit system’s first CNG buses start operations this month
The recovery of public space, the adaptation of green areas, the planting of thousands of species for tree compensation and the scrapping of more than 4,000 vehicles of the former public passenger transport, are some of the actions that,
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during the 10 years of operation of MIO (the integrated massive transportation system of the city of Cali), have contributed to the environmental sustainability of the Valle del Cauca’s capital. In addition, 266 new environmentally-friendly buses will be added to MIO, helping to improve the city’s air. MIO’s plan is to have the necessary vehicles to provide the best service in the city, a fleet that is projected on 1,322 buses. With the structuring of the rescue plan of the system, the goal is to reach that goal, increasing by 676 buses the current fleet in operation: 210 recovered and 466 new vehicles. The objective is that many of these new buses are zero or near-zero emissions. To meet this goal, the first 21 CNG buses, plus 26 electric vehicles, have already arrived in the city, through the operator Blanco y Negro Masivo. Moreover, thanks to the rescue plan, the Unimetro company will introduce into the system another 110 new electric buses in the last quarter of this year. “We are making a great effort to add more buses into the system. Have full confidence that with natural gas and electric buses we will not only have a good service, but the environment will improve a lot and we will take care of the air of Cali that is one of the cleanest in the country,” said the mayor of Cali, Maurice Armitage Cadavid.
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Pakistan – OGRA bans use of CNG in public service vehicles
The Oil and Gas Regulatory Authority (OGRA) has imposed a ban on the use of CNG in PSV’s (public service vehicles) keeping in view the safety of public life and property. All stakeholders are expected to comply with the decision in its letter and spirit.
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The school vans which are private vehicles are not allowed using CNG as fuel and cylinders installed therein to ensure safety of innocent children in pursuance of Sindh Government notification as well as Honourable Sindh High Court Order dated 19-6-2019 in Constitutional petition No. C.P. Nos.D-7529/2018, 280&597/2019 wherein the Honourable court has directed that the District implementation committees shall perform their responsibilities diligently in accordance with the terms of reference mentioned in the notification to avoid any untoward incident / accidents. It is pertinent to mention that LPG cylinders are completely banned in transport vehicles. Any vehicle found with LPG cylinders shall also be dealt accordingly by the law enforcement agencies.
https://dailytimes.com.pk/443636/ogra-bans-use-of-cng-in-public-service-vehicles/
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Argentina: Agrale’s new CNG bus hits the streets of Buenos Aires
The Brazilian-Argentine manufacturer Agrale carried out the first test of its MT17.0 CNG bus, with Todobus body, in the streets of Buenos Aires.
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It is a vehicle identical to those currently circulating in the capital city with the only difference that it uses compressed natural gas as fuel. The vehicle serves Line 50 and is operated by the company Nudo S.A. The model was developed and produced by Agrale at its industrial plant on National Route 5, located between Luján and Mercedes (province of Buenos Aires), as part of the projects led by the company to introduce more environmentally friendly technologies into its urban buses. In that sense, Agrale decided to join the Clean Technology Bus Pilot Test implemented by the Secretary of Transportation of the City of Buenos Aires. This CNG bus, which complies with all safety standards established by both the Secretary of Production and National Gas Regulatory Authority (Enargas), offers a quieter ride than buses driven by diesel engines and a lower level of pollutant emissions than those currently required in Argentina. In addition, it has automatic transmission, air suspension, kneeling at stops, wheelchair ramp and space for people with disabilities. The beginning of gas exploitation in Vaca Muerta has been a game changer in the possibility of self-sufficiency of this resource, and vehicles such as the one developed by Agrale, locally manufactured, are called to be fundamental players of urban passenger transport in the short term.
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Argentina: 45 new CNG refueling sites open so far this year
The decrease in gasoline consumption due to its high price has boosted the development of CNG refueling stations in Argentina.
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The conversions of dispensers to this type of fuel increased in July by 30% over the same month last year – being this the highest figure since September 2015, according to a report by the Secretariat of Energy of the Government of Argentina. Argentina has deployed 45 new CNG refueling sites throughout 2019, according to the same report. Today, Argentina has 1,838 CNG stations, says the Secretariat of Energy. Most CNG dispensers are installed at multi-energy stations, and not at dedicated CNG sites. It is expected that the number of CNG stations will keep growing in the short-term, considering the efforts being made by the Government of Argentina to promote its use and also due to the good exploitation prospects in the field of Vaca Muerta. “Expectations in the short term are placed in developing a network of public buses powered by CNG, and not only promoting the commercially benefits of local gas. It is also important to internalize that this fuel is environmentally friendlier than other liquid fossils,” states a document recently issued by ENARGAS (Gas Regulatory Authority). ENARGAS itself has created an interactive map which allows driver to locate CNG refueling stations throughout the country to make it easier to refuel at these facilities, reported Petrol Plaza.
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SNAPSHOT: INTERNATIONAL
LNG as a Marine Fuel / Shipping
Idling LNG tankers hint at appeal of floating storage || Government of Argentina approves regulation for LNG bunkering || LNG bunkering simulator a proactive move || Awilco of Norway refinances LNG FleetLNG tankers hint at appeal of floating storage
Liquefied natural gas tankers are taking longer-than-usual journeys to deliver cargoes and spending more time idling at sea in a sign some traders are starting to use vessels for storage.
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There may be other reasons for keeping the cargoes on the water, including logistical or weather issues, such as a monsoon in India. But with spot prices near their lowest since April 2016, sellers may be betting that they will rise as the northern hemisphere heating season approaches. “It is saying one thing for sure: people are not too worried about shipping length,” said Jean-Christian Heintz, head of LNG broking at SCB Brokers SA in Nyon, Switzerland. “Whether they are waiting for a logistical or trading or pricing issue they do not worry about the time they spend at sea, meaning that there is no hurry in going back and loading the next cargo.” The use of floating storage this long before the heating season is unusual because of the costs of keeping natural gas in its liquid form and indicates how trading in LNG, the fastest-expanding fossil fuel commodity, is becoming more like the bigger crude oil market. It is also partly thanks to the shale boom that transformed the US into the third-largest exporter, increased spot trading, linked prices increasingly to gas hubs rather than oil and spurred a global drive for more flexible contracts. LNG tanker owners GasLog Ltd and Flex LNG have said that they are seeing increased inquiries from traders to use ships as floating storage. That will likely intensify in September and beyond to hold fuel before the heating season officially begins in October. “Does it make sense to float from the end of August to the end of September?” Heintz said. “We haven’t seen that happen too often. That would be also interesting to see if we see cargoes floating for more than one month.”Cheniere Energy Inc, the biggest US LNG exporter, said last week it sees a premium in winter prices encouraging floating storage, especially considering the premium of longer-term prices to short-term ones, known as a contango. Lower spot shipping rates also encourage the longer use of vessels. “The market does as a whole look at the contango in the forward curve and assess if there is a floating storage possibility,” Jonathan Westby, co-managing director of Centrica Plc’s energy marketing and trading unit, said last month in an interview. “If you look at the shape of the curve now for that period of time in the autumn, there is the possibility of people taking floating storage.”
https://www.gulf-times.com/story/638988/Idling-LNG-tankers-hint-at-appeal-of-floating-stor
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Government of Argentina approves regulation for LNG bunkering
The Secretariat of Energy approved the necessary standards for the bunkering of LNG to ships operating in Argentina and have this fuel as a propulsion option.
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Resolution 438/2019, published in the Official Gazette, adopts the international ISO standards regarding the operations of transfer and supply of LNG to ships from trucks, mainly, and is taken after efforts initiated by the General Administration of Ports (AGP) in 2014. Buquebús owns the Francisco ship, capable of operating with both LNG (supplied through Galileo’s technology) and diesel. The ferry operates regularly in Dársena Norte, jurisdiction of the Port of Buenos Aires. When it entered service there was no specific guideline regulating the supply of LNG from a truck to a ship. Therefore, the AGP provisionally granted “the first authorization to bunker LNG from a truck to the ship.” Then, the provisional authorization was issued to the authority that ensures the safety of navigation and ports, Argentine Naval Prefecture, which extended similar approval “on specific days and times, and provided there were favorable hydrometeorological conditions.” This management began a long process to find the necessary rules to regulate the truck-ship LNG bunkering, between the AGP and the Prefecture, and with the former Ministry of Energy and the National Gas Regulatory Authority (Enargas). While successive extensions were extended to Buquebús so that it could continue operating the Francisco ship, the work table agreed on the feasibility of incorporating ISO 18683 standards (guidelines for supply systems and facilities for LNG as marine fuel) and ISO 20519 (specification for the supply of ships powered by LNG), and the Secretariat of Energy adopted them in the framework of resolution 438/2019. In this way, rigorous risk analysis should be carried out every two years (or when there are changes in normal operations) to monitor compliance with international standards. “LNG bunkering operations must have an annual safety inspection, carried out by a Classification Society with recognized expertise in gas and oil facilities, a member of the IACS [International Association of Classification Societies] and accredited in the Argentine Accreditation Organization, and carry out emergency drills with a semiannual periodicity,” concludes the resolution.
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LNG bunkering simulator a proactive move
The global release of the world’s first Wärtsilä Liquefied Natural Gas (LNG) bunkering simulator was held here Thursday, a proactive move by the private sector in anticipation of new international regulations to make the shipping industry green.
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To be operated by Sabah grown maritime consultancy and port engineering service provider, Kasi Group, the simulator is expected to contribute to the industry’s movement toward becoming more sustainable and safe to the environment. Having the simulator on home soil fits well with the country image as the world’s third largest LNG exporter, and LNG is declared to have a much better emissions performance than conventional fuels and solutions. .Wärtsilä is Finnish company and is one of the world’s leading maritime equipment suppliers. It can supply everything from the top of the ship down to the bottom. Ship pollution rules under the International Maritime Organisation (IMO), which is an agency of the United Nations formed to promote maritime safety, are contained in the International Convention on the Prevention of Pollution from Ships (Marpol). Marpol sets limits on NOx and SOx emissions from ship exhausts, and prohibits deliberate emissions of ozone depleting substances from ships of 400 gross tonnage and above engaged in voyages to ports or offshore terminals under the jurisdiction of states that have ratified the Convention. Compared to existing heavy marine fuel oils, LNG can, depending on the technology used, emit 90 per cent fewer NOx emissions. It is also said that LNG’s greenhouse gas (GHG) performance represents a major step forward when compared with traditional marine fuels.
https://www.dailyexpress.com.my/news/138761/lng-bunkering-simulator-a-proactive-move/[Edited]
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Awilco refinances LNG Fleet
Norwegian liquefied natural gas (LNG) transportation company Awilco agreed and signed a term sheet for the financing of its two liquefied natural gas carriers with an Asia-based company.
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The refinancing for the two 2013-built 156,000-cbm TFDEs WilForce and WilPride, has been structured as a sale/leaseback similar to the current financing of the vessels, said a press note from the pure play LNG transportation provider, owning and operating LNG vessels intended for international trade. Awilco LNG says it expects the new financing to close during the fourth quarter of this year, subject to final credit approval, documentation and customary closing conditions. Recently, Awilco has secured a charter contract for its 156,000 cbm TFDE membrane LNG vessel WilPride. The charter deal came in days after the company informed that WilPride’s sister vessel, the WilForce was struck by another vessel off Singapore. Wilforce charter was cancelled after the collision.
https://www.maritimeprofessional.com/news/awilco-refinances-fleet-349100
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SNAPSHOT: INTERNATIONAL
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Biomethane market surpasses 100-project pinnacle in North America || Three bio-CNG plants to treat 300 tonnes of bio-waste in Chennai || Largest WWTP in the Netherlands will produce biomethane for vehiclesBiomethane market surpasses 100-project pinnacle in North America
The Coalition for Renewable Natural Gas (RNG Coalition) announced that the North American renewable natural gas industry has reached the 100 facility benchmark this summer.
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With the addition of three recent operational facilities, the 101 biomethane production sites across the continent equate to nearly 150% growth over the past five years from the 41 projects built between 1982 and 2014. “Increased biomethane development and deployment leads to greater adoption of the renewables we use to drive, and heat and power our homes and businesses,” said Johannes Escudero, RNG Coalition co-founder and CEO. “We join our members and all users of RNG in celebrating this milestone, which is a great achievement for sustainability and for decarbonizing our gas and power systems.” The RNG Coalition was founded eight years ago when there were 31 operating renewable natural gas projects in North America. Having reached 50 sites in 2015, the organization set the goal to double the number of production facilities in North America within 10 years. The industry has hit the target in half that time by eclipsing 100 sites this summer. Three DTE Biomass Energy facilities in Wisconsin that convert cow waste from area dairies into renewable energy are among the new biomethane production sites this year. “We are very excited to be involved in dairy biogas, because we’re helping family-owned dairy farms to reduce harmful greenhouse gas emissions and offset use of vehicle fossil fuels,” said Kevin Dobson, VP of Business Development for DTE Biomass Energy. According to the RNG Coalition’s database of renewable natural gas production sites, there are more than 50 additional facilities currently under construction or in development. “100 projects is a milestone worth celebrating, not just for the industry, but as a symbol of hope for our planet,” added David Cox, RNG Coalition co-founder and Operations Director.
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Three bio-CNG plants to treat 300 tonnes of bio-waste in Chennai
Greater Chennai Corporation will bring down the quantum of organic and food waste entering its landfills by 300 tonnes by next month by setting up three bio-CNG plants
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that will bottle compressed natural gas produced from bio waste. Corporation commissioner G Prakash said his office would call for tenders next week. The plants will be set up in private-public partnership where the private company will be in charge of manufacturing and maintenance of the facility. They will be set up at Pallikaranai, Sholinganallur and the abandoned asphalt complex in Anna Nagar at ₹9.3 crore. Addressing the state assembly last month, rural and municipal administration minister S P Velumani had announced setting up of one such plant. The civic body has now decided to make it three. Corporation deputy commissioner (health) Madhusudhan Reddy said similar plants were set up at Mahindra World City. “There is another at Tirupati. The plants will be expandable to handle up to 100 tonnes in future,” he said.The civic body processes 384 tonnes of wet waste under various projects including 33 bio-mechanisation plants. Though raw biogas cannot be used as fuel, its compressed and purified form finds use as automotive fuel.At Mahindra World City, the bio-CNG plant converts eight tonnes of food and kitchen waste into 1000 cubic metres of raw biogas. This raw bio gas is enriched to yield 400 kg of purified CNG grade fuel every day (which is equivalent to a 200kW power plant). Four tonnes of organic fertilizer is produced as a byproduct each day.Bio-CNG can replace CNG as an automotive fuel (for CNG buses and tractors) and LPG for cooking purposes, as well as to power street lights. According to a report by Citizen Consumer and Civic Action Group’s Jeya Kumar R and Vamsi Sankar Kapilavai there are 17 operational bio-CNG plants in nine states, Maharashtra having the largest number. The combined capacity of all these plants is 46,178 kg per day.For dry waste, the corporation has planned incinerators at Manali, Mandhavaram and Thiruvotriyur. Out of the 5,500 tonnes generated every day, 55% is wet waste. About 450 tonnes to 500 tonnes wet waste is processed through composting and 250 tonnes of dry waste is sold every day. The city corporation is also planning to convertup to15%of wetwaste generated by bulk waste generators into compost.Satyarupa Shekhar, of Civic Action Group said the corporation should set up decentralised units close to Amma canteens, anganwadis and on roofs of restaurant where kitchens exist. “It can also be set up at the existing bio-methanisation plants where the readily generated bio-gas can be compressed and used as bio-CNG. It will reduce cost to transport food waste and bring down carbon emissions,” she said.
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Largest WWTP in the Netherlands will produce biomethane for vehicles
Bright Biomethane has delivered the biogas upgrading system with membrane separation technology to the largest waste water treatment plant (WWTP) of the Netherlands: WWTP Harnaschpolder of the Delfland Water Authority. The produced renewable gas will be supplied to the transport sector.
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Construction is progressing extremely well and the first renewable gas is expected to be supplied to the grid this month. Operational management and maintenance of the Harnaschpolder waste water treatment plant in Den Hoorn is carried out by Delfluent Services B.V. on behalf of Delfland Water Authority. At this WWTP, approximately 6.5 million Nm3 (cubic meters) of biogas per year is produced from sludge digestion. The biogas produced consists of around 60% methane, and is not immediately suitable for gas grid injection. Bright Biomethane’s biogas upgrading system ensures that the biogas is upgraded to biomethane, consisting of 89% methane. Around 4.5 million Nm3 of renewable low-calorific gas (L-gas) with natural gas quality will be injected annually in the gas network of network manager Westland Infra, and supplied to the transport sector, accounting for around 30 million km of road transport per year. In the future, the biogas upgrading installation can easily be made suitable for the production of high-calorific gas (H-gas). The Delfland Water Authority is one of the 21 water authorities in the Netherlands, and wants to create a working environment that is as sustainable and circular as possible. Delfland has the ambition to be energy neutral by 2025. In addition, the water board also wants to supply green energy to third parties. The production of renewable gas is therefore another important step in this energy transition. Bright Biomethane already realized a renewable gas installation for Delfland before: at WWTP De Groote Lucht in Vlaardingen. This way, Bright’s biomethane systems make an important contribution to the sustainability of the transport sector and the energy transition in the Netherlands.
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China speeds up development of H2 refueling network for Beijing 2022
Beijing’s Yanqing District is accelerating the construction of two hydrogen fueling stations and a supporting hydrogen plant in time for the Alpine Skiing World Cup in 2020 and the 2022 Beijing Winter Olympic Games.
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The hydrogen-powered vehicles produce zero carbon emissions, and are becoming increasingly significant in global energy transformation as they help reduce global warming. The public transport line of hydrogen energy will be opened in Yanqing District, located around 75km northwest of downtown Beijing. Green, zero-carbon, environmentally-friendly hydrogen fuel cell vehicles will transport athletes, workers and spectators between venues. Beijing issued a document at the end of 2017 noting that they would promote the implementation of hydrogen production and hydrogenation core technology in the relevant areas of the 2022 Olympic and Paralympic Winter Games. Moreover, earlier this year, Yanqing District and China Power International Development Limited jointly planned and constructed the Yanqing Hydrogen Industry Park, and carried out equipment research and development, production, technology application and training around the green hydrogen industry to speed up the industrialization of hydrogen energy, reported news agency Xinhua
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