NGS’ NG/LNG SNAPSHOT – FEBRUARY 2020, VOLUME 1

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City Gas Distribution & Auto LPG

Maruti Suzuki presents CNG version of India’s best-selling car

Consistently setting new benchmarks in the industry, Maruti Suzuki India Limited launched the S-CNG variant of India’s favorite car, Alto. The natural gas powered Alto BS6 will offer a mileage of 31.59 km/kg. The automaker continues to pave the way

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for the new BS6 emission norms ahead of timeline with Alto S-CNG as its first BS6 compliant CNG vehicle. The new model is available in both LXi & LXi (O) variants. Maruti Suzuki’s large portfolio of green vehicles is a testimony of its commitment towards environment. We are encouraged with wide acceptance of S-CNG technology by our customers,” said Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India Limited. The launch of Maruti Suzuki’s S-CNG vehicle range is aligned to and complements the Government of India’s vision of reducing oil import and enhancing the share of natural gas in the energy basket of the country from 6.2% now to 15% by 2030. The company offers the widest range of green cars with S-CNG technology. Maruti Suzuki S-CNG vehicles are equipped with dual interdependent ECUs (Electronic Control Units) and intelligent injection system. Vehicles are specially tuned and calibrated to deliver optimum performance and enhanced drivability across all kinds of terrains. Maruti Suzuki Alto was the first vehicle to become BS6 compliant, and the company has already sold over 100,000 BS6 compliant Alto in the country. With timely upgrades, the brand Alto has stayed relevant and continues to be the best-selling car in the country for 15 consecutive years.

https://www.ngvjournal.com/s1-news/c3-vehicles/maruti-suzuki-unveils-cng-version-of-indias-best-selling-car/

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PNGRB seeks to cancel Adani Gas licence over violation of CGD regulations

Petroleum and Natural Gas Regulatory Board of India has sent a notice to Adani Gas for failing to disclose crucial information regarding a scheme of arrangement with Adani Enterprises, sources told CNBC Awaaz’s Yatin Mota.Adani Gas had bid for gas projects

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using networth calculations of Adani Enterprises, said sources, adding that the company’s shareholding changes and restructuring violated city gas distribution regulations.Adani Gas shares slumped as much as 9.6 percent to Rs 156.25 per share on the BSE in the opening trade.Regulator PNGRB is seeking to cancel the company’s licences and levy Rs 400 crore penalty for the violations, according to the sources.Adani Gas has not yet responded to CNBC Awaaz’s query on the report.The regulator is yet to approve Adani Gas’ proposed deal with French oil major Total SA, where the later has agreed to acquire a 37.4 percent stake in Adani Gas for around Rs 5,700 crore. The deal was approved by the Competition Commission of India in November 2019.Adani Gas on January 22 announced a plan to invest up to Rs 9,000 crore in setting up CGD network over the next 10 years. Adani Gas, together with Indian Oil, has won city gas licence for 38 geographical areas spread over 71 districts in 15 states in recent bid rounds.

https://www.cnbctv18.com/energy/pngrb-seeks-to-cancel-adani-gas-license-over-violation-of-cgd-regulations-5122671.htm

 

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BS-VI Maruti Suzuki Alto S-CNG Variant Launched in India at Rs 4.32 Lakh

Maruti Suzuki India Limited has launched the S-CNG variant of the Alto. The company claims that the CNG powered Alto BS6 will offer a mileage of 31.59 km/kg. On the introduction of Alto BS6 S-CNG, Shashank Srivastava, Executive Director (Marketing & Sales),

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Maruti Suzuki India Limited said, “At Maruti Suzuki, we continuously strive to offer products that are technologically advanced and environment-friendly. With the introduction of Alto BS6 S-CNG, we reinforce our efforts towards sustainable green mobility. The Alto BS6 S-CNG is designed to deliver optimum performance, safety, engine durability, convenience, and mileage. Maruti Suzuki’s large portfolio of green vehicles is a testimony of its commitment towards the environment. We are encouraged with the wide acceptance of S-CNG technology by our customers.”The launch of Maruti Suzuki’s S-CNG vehicle range is aligned to and complements the Government of India’s vision of reducing oil import and enhancing the share of natural gas in the energy basket of the country from 6.2% now to 15% by 2030. Maruti Suzuki S-CNG vehicles are equipped with dual interdependent ECUs (Electronic Control Units) and intelligent injection system. Maruti Suzuki Alto was the first vehicle to become BS6 compliant, and the Company has already sold over 100,000 BS6 compliant Alto in the country. With timely upgrades, the brand Alto has stayed relevant and continues to be the best-selling car in the country for 15 consecutive years. Additionally, 38-lakh strong Alto family is a testament to people appreciating the timely upgrades and newness in the brand. Maruti Suzuki recently introduced the new Alto VXi+ with the Smart play Studio which is tailor-made to offer a unique technology-driven experience to the customers.

https://www.news18.com/news/auto/bs-vi-maruti-suzuki-alto-s-cng-variant-launched-in-india-at-rs-4-32-lakh-2475241.html

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7,000 people register for piped natural gas from GAIL Gas Ltd. in Mangaluru

About 7,000 people from 12 wards in Mangaluru city have now registered for supply of piped natural gas from GAIL Gas Ltd. for cooking, according to Vilin Zunke, Deputy General Manager, City Gas Distribution Projects, and officer in-charge of the company.

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The company will initially supply the piped natural gas in those 12 wards spread over 3.5 sq km area. The wards are Derebail South, Derebail West, Derebail South West, Boloor, Mannagudda, Kambla, Kodialbail, Bejai, Kadri South, Bendoor, Court and Dongarakery, he told presspersons here on Friday (Jan 24).GAIL has authorised two direct marketing agencies – Amoeba Events Pvt. Ltd and Yogmaya& Co – in Mangaluru to collect registration on its behalf. The representatives of these two agencies are camping and collecting registrations from the houses and apartments presently from the 12 wards. It will be extended to other wards in phases. People can contact Vasanth from Amoeba Events Pvt. Ltd. on 9952052944 or Sourabh from Yogmaya& Co. on 9968623082. House owners will have to cooperate with registration agencies by furnishing required information and documents, Mr. Zunke said.He said that the company has approached Mangaluru City Corporation seeking permission to lay a 48 km ward-wise MDP pipeline network initially in the 12 wards. These pipelines get natural gas from a 10 km steel pipeline to be laid on the main roads in the city in the first phase. A joint survey with the corporation for laying the 10 km pipeline has been completed.The three payment options will help prospective consumers from various income groups to opt for PNG as the fuel for the kitchen, he said. In the first option it has reduced the connection security deposit from ₹5,000 to ₹4,000. The consumers will have to pay ₹4,000 as refundable connection deposit before the supply begins. The second option limits the payment of connection security deposit to easy equal daily instalments. The option of paying ₹5 per day, a refundable amount, for 1,000 days and no upfront connection security deposit will be taken.In the third option, only ₹1 per day (plus applicable taxes) will be charged as rental along with the invoice and the same will be non-refundable. In all the options, there will be no registration fee but ₹500 refundable payment security deposit against the gas connection will be charged, he said.

https://www.thehindu.com/news/cities/Mangalore/7000-people-register-for-piped-natural-gas-from-gail-gas-ltd-in-mangaluru/article30647791.ece

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Punjab to replace over 15-yr-old 3-wheelers with electric or CNG autos

To control air pollution, Punjab’s Environment and Climate Change Department, under Tandrust Punjab Mission, has decided to ensure replacement of more than 15 years old three-wheelers with electric or CNG autos.Informing this, Tandrust Punjab Mission Director Kahan Singh Pannu said

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that it has been observed that a large number of three wheelers, which are more than 15 years, are operating in the state of Punjab. “But as per Rule 68 C of the Punjab Motor Vehicle Rules-1989, three wheelers auto rickshaws cannot operate beyond 15 years,” he said.He said that Punjab Pollution Control Board (PPCB) has already banned the registration of new diesel or petrol three wheelers in the districts of Amritsar, Jalandhar, Ludhiana, Fatehgarh Sahib, and Mohali since January 2019.“In fact, the case for banning such vehicles in the districts of Patiala and Bathinda is also under PPCB’s consideration and CNG supply stations have recently been setup in these two districts to meet the upcoming demand,” he said.He said that Deputy Commissioners of all major cities have been asked to undertake measures to weed out the old three wheelers and to provide opportunity of having gas or electric based three wheelers to the owners of old three wheelers.Pannu said that to facilitate the transition, under Tandrust Punjab Mission, it has been proposed that a committee consisting of officers from District Police traffic wing, PPCB, Transport Department and Lead Bank officer of the District may be constituted by Deputy Commissioner under the chairmanship of a senior officer of the District Administration.“The residual value of old three wheelers is dismally low as these have outlived their life. However, major gas or electric three wheelers companies have agreed to offer a price ranging from Rs 20,000 to Rs 25,000 for old three wheelers, which shall be scrapped by them in the shredding or furnace units, so that these are permanently put off the roads,” he said.Pannu added that it has been suggested that the owners or drivers of old three wheelers who are desirous of getting new gas or electric three wheelers, should be facilitated to obtain loans at concession rates from commercial banks under the Mudra Scheme or any other scheme of Government or Banks. Even camps of such applicants can be organized.He said that action, as provided under the Motor Vehicle Act, 1988, shall continue to be taken against the vehicles running in violations of the Act.

https://www.dailypioneer.com/2020/state-editions/punjab-to-replace-over-15-yr-old-3-wheelers-with-electric-or-cng-autos.html

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Draft policy to push CNG, PNG in cities

A draft city gas policy for states suggests standardised charges and time-bound permission for setting up CGD (city gas distribution) networks, conversion of public transport fleet to CNG, creation of green corridors for inter-city traffic and fiscal incentives for gas-driven mobility akin to electric vehicles to push natural gas as automotive fuel.

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The policy is part of the Centre’s strategy to ensure a smooth passage in states for the NarendraModi government’s plan to help 400 districts, covering 70% of the population, breathe easy by providing clean-burning CNG (compressed natural gas) and PNG (piped natural gas) services at an estimated investment of Rs 90,000 crore.Oil minister DharmendraPradhan is scheduled to release the draft policy for discussion at a national workshop on CGD (city gas distribution) schemes and conclave to promote gas-driven economy organised to bring states on board.That is why, the sources told TOI, the draft policy is expected to propose standardisation of the road restoration/permission charges and time-bound permissions for laying pipelines and setting up CNG station in accordance with local conditions.The draft is also expected to suggest reduced taxes, waiver of registration and toll charges for gas-driven transport just as in case of electric vehicles. The policy also suggests a review of VAT rates on CNG to bring uniformity across states. It is also expected to exempt VAT and CST exemption to makers of equipment related to CNG/PNG services.Industry players said suggestions for a single-window system for time-bound clearances, priority allotment of land and conversion of public transport fleet will be comparatively easier for states to accept and implement, especially if they are taken up with some cheap financing options. But suggestions on financial incentives will take a lot of persuasion to be accepted as they involve reduction in VAT and forgoing revenue.The push for natural gas has seen the number of households with PNG connections rising to 55 lakh and CNG stations to 1,838, marking a growth of 14-15% in the last five years. Total PNG connections are expected to rise to over 4 crore, while the number of CNG stations are expected to swell to 10,000 by 2024 as more cities get city gas service.

https://timesofindia.indiatimes.com/india/oil-min-drafts-city-gas-policy-for-states-to-push-cng-png-services/articleshow/73529615.cms

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Make in India to get Rs 22,000 crore boost from city gas expansion

The rapid expansion in city gas networks undertaken by the Modi government will open a Rs 22,600 crore ‘Make in India’ market for ancillary equipment needed for piping natural gas to households and refuelling CNG vehicles, say a clutch of government notes

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According to the notes, prepared for an oil ministry event on Thursday to showcase India’s CGD (city gas distribution) programme, the expansion of CNG and PNG services will also create nearly four lakh direct employment opportunities by 2027. The projections are bound to lift the mood as it come amid slowing economic growth. Only 34 GAs (geographical areas, akin to licence areas across districts in a state) in the country had city gas distribution networks till 2014. Since then, government has given out 174 GAs for building city gas distribution networks. After 136 GAs are given out in the ninth and 10th rounds of auction, city gas distribution networks will cover 70% of the population and 53% of the country’s geographical area spanning 400 districts across 27 states. The programme has an estimated investment potential of Rs 90,000 crore. The number of households with PNG connections will rise to over 4 crore from 55 lakh, while the number of CNG stations will go up from 1,838 to 10,000 by 2024.  Such a scale of network expansion will need huge quantities of pipes, mechanical and smart meters, PNG regulators, compressors and boosters pumps etc, which will open up opportunities for domestic manufacturing. Similarly, the notes say there will be demand for 3.75 lakh skilled, semiskilled and unskilled manpower to run and maintain the networks. According to the government, 31% of this manpower requirement will be for skilled personnel, 56% for semi-skilled and 13% for unskilled workers.

https://timesofindia.indiatimes.com/business/india-business/make-in-india-to-get-rs-22000-crore-boost-from-city-gas-expansion/articleshow/73405390.cms

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Demand for PNG up in Hyderabad

One of the cleanest burning fuels, Piped Natural Gas (PNG), will soon be provided to more number of houses with Bhagyanagar Gas Limited (BGL) planning to expand its pipeline network this year to different parts of the city.BGL has already laid 55 km steel pipeline and

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355 km Medium-density polyethylene (MDPE) pipeline network in the city and has been supplying PNG to 40,000 households in Medchal, Kompally, Qutubullapur, Chintal, Balanagar, Moosapet and Kukatpally from Shamirpet mother station. Buoyed by the response, BGL is now planning to expand its network further by laying 70 km of steel pipeline and 500 km of MDPE this financial year and connect the network of pipeline from Kukatpally to Katedan via Gachibowli, Hafeezpet, Mehdipatnam, Nanalnagar, Attapur and Aramgarh.According to the officials, a separate pipeline is also planned to connect Balanagar with ECIL Crossroads via Bowenpally, Trimulgherry, Sainikpuri and A S Rao Nagar and ensure easy availability of natural gas across many regions in the city. To cater to the demand of gas for domestic and commercial customers in its area of operation, it has developed infrastructure to supply natural gas at Mother Station, Shamirpet. The natural gas is tapped at Shamirpet from GAIL East West pipeline transported by Pipeline Infrastructure Limited in Hyderabad. Rajeev Garg, Managing Director, BGL, said they were committed to providing clean and green fuel to consumers. “Since the supply of PNG is continuous, the domestic consumer is relieved from the task of booking LPG cylinder and waiting for the delivery,” he added.

https://telanganatoday.com/demand-for-png-up-in-hyderabad

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Electric Mobility

Upcoming electric scooters list 2020

Electric vehicles are becoming popular every day as the Indian automotive industry’s two-wheeler segment is much popular and counts much higher sales than any other segments in India. We have witnessed the growth and interest of the people for electric vehicles much last year. So we have brought some of the top upcoming electric scooters list of 2020.  

Versatile Ve Lithium electric scooters

The Hyderabad based Versatile auto components limited is all set to launch India’s most affordable li-ion battery scooters this January ending. The company is offering three range variants such as 45 km range, 55 km range and 90 km range respectively with this electric scooters-VE45 li, VE55 li and VE90 li. These electric scooters prices start from 25,000 rupees. No license, registration required for these electric scooters as they are low-speed models with a maximum speed of 25 km/h. The company is offering a 1.6 to 2 years warranty on these electric scooters.  It will take 4-6 hours of time to charge it fully. Its Load capacity is 150 kg and is best suited for short-distance commuting. It will cost you only 1 – 2 rupees on a full charge on your electricity bill. 

ePluto 7G

Another startup from Hyderabad purge EV is all set to launch its first high-speed electric scooter ePLUTO 7g in the first quarter of 2020. This electric scooter works with a 1.5 kW BLDC motor. The ePluto 7g can run with a top speed of 65 kmph and gives a range of 120 km on a single charge. The lithium-ion batteries are detachable and easy to charge at your comfort. It will charge in 3 hours and its loading capacity is 180 kg. It will cost 4-6 rupees on your electricity bill to charge it fully. The company is offering 3 years of warranty on these electric scooters and are best suited for city commutes.  The price of this electric scooter is between 90 thousand to 1 lakh rupees. 

Black smith b3

Tamil Nadu startup Blacksmith electric is all set to launch India’s fastest electric scooter blacksmith b3 in the first half of 2020. The B3 can run with a top speed of 120 km/h with its powerful 5 kW AC motor. The lithium-ion batteries can give 120 km of range. It charges in 4 hours and its load capacity is 200 kg. This scooter supports battery swapping technology and the company is offering 3 years of warranty on the battery. It costs you 12 rupees to charge its battery to fully. The price of this electric scooter is 1.5 lakh rupees. 

Benling Aura

Delhi based electric scooter startup Benling India is high-speed electric scooter Aura at the end of January. 

The scooter works with a 2.5 kW bldc motor which delivers a top speed of 65 km/h, with a full charge, the scooter can give 140 km of range. It uses a Lithium-ion battery and can charge in 3.5 hours. The scooter supports battery swapping technology and offering 3 years warranty on the battery. The price of this electric scooter is 1 lakh rupees. 

Source: electricvehicles.in

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Gas/ Pipelines/ Company News

Natural gas pipeline could be commissioned by March end

The 438km Kochi-Koottanad-Mangaluru re-gasified liquefied natural gas (RLNG) pipeline that GAIL India Ltd is laying could be commissioned by March this year. Completion of this line will help GAIL India Ltd commence RLNG supply to industries and

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other stakeholders. This comes after GAIL failed to meet the September 2018 deadline due to issues in laying the pipeline across the Chandragiri and Nethravathi rivers. GAIL had awarded the contract to lay the 111-km pipeline in north Kerala and Karnataka at an estimated cost of Rs 160 crore in August 2017. Work on laying the pipeline across the Nethravathi to a length of 410 metres between Innoli and Arkula should be completed by February 15, said Tony Mathew, general manager, GAIL, Kochi. The company adopted cut and cover method to lay the pipeline beneath the riverbeds with help of cofferdams GAIL’s latest attempt in May to complete the crossing was futile, Mathew told TOI on Thursday. We faced a big challenge in crossing the Chandragiri River that is abutted by steep hills on both sides and thickly populated areas. We had to adopt drilling technology from hill to hill as it was difficult to move machinery to the river bank. At the present pace, we should complete the Chandragiri crossing by February-end, Tony Mathew said.   Workers executing the pipeline work at the Nethravati worksite at Innoli-side said the welded pipeline has been laid 6 metres below the riverbed almost up to the middle of the Nethravathi River. “We hope to complete the rest of the work by February 15,” they said. GAIL at the same time has taken up work on RLNG terminal on Arkula-side to pump gas towards Malavoor and further towards the terminal near Mangalore Chemicals and Fertilisers. Kochi city is already deriving benefits of clean fuel, Mathew said. Most autorickshaws and taxis have been converted to use compressed natural gas as alternative fuel. Autorickshaws derive mileage of at least 40 km/kg. City gas distribution in Mangaluru with CNG as auto fuel will take time as the contractor has to lay the distribution pipelines across the city. The pipeline is designed to transport 16 MMSCM of RLNG, he said.

https://timesofindia.indiatimes.com/city/mangaluru/natural-gas-pipeline-could-be-commissioned-by-march-end/articleshowprint/73561950.cms

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GAIL lays Rs 45000cr gas pipeline goal

GAIL (India) Ltd, the country’s largest gas utility, plans to invest over Rs 45,000 crore over the next five years to expand the national gas pipeline grid and city gas distribution network, chairmanAshutoshKarnatak said.The gas pipelines will take

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the fuel to the eastern and northeastern regions as well as to consumers in the south as part of the government’s efforts to raise the share of natural gas in India’s energy basket to 15 per cent by 2030 from 6.2 per cent, he said.GAIL’s push for the creation of infrastructure is in line with the Centre’s plan to create a gas-based economy that is less reliant on polluting fuels to meeting its energy needs.“Before we move to zero-emission technologies (for both automobiles and factories), say by 2040/2050, natural gas is best suited to lower emissions from the current levels,” he said.“Natural gas is a ‘happy fuel’ as it has a fraction of emissions compared with alternative liquid fuels such as diesel in automobiles and coal in power plants,” he added.At present, India consumes around 160 MMSCMD and consumption has to rise to 400 MMSCMD to reach a 15 per cent share in the energy mix, he said, adding that GAIL was playing its part by creating the infrastructure.GAIL now operates 12,160 km of pipeline network and markets two-thirds of all-natural gas sold in the country. It is executing more than 5,500 kilometres of pipeline projects and a similar length is in the planning stage.Besides pipelines, GAIL is expanding city gas distribution networks for retailing of CNG.

https://www.telegraphindia.com/business/gail-lays-rs-45000cr-gas-pipeline-goal/cid/1738788

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GAIL gets board’s approval for raising Rs 1,500 crore in debt

New Delhi: State-owned gas utility GAIL India Ltd on Thursday said its board has approved raising up to Rs 1,500 crore in debt to part-fund its ambitious plan to expand its pipeline capacity over the next few years. The company plans to raise funds through

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domestic bonds in one or more tranches in the next six months. “The Board of Directors in its meeting held today inter alia approved to borrow rupee debt funds up to Rs 1,500 crore including greenshoe option through secured/unsecured, redeemable, taxable non-convertible bond(s) in one or more tranches from time to time on private placement basis,” the company said in a regulatory filing. Greenshoe option allows a company to borrow more than the notified amount if it gets a favourable cost of borrowing. GAIL had in May last year tied up Rs 2,000 crore loan from State Bank of India (SBI) to meet its capital expenditure requirements over the next few years, particularly in the pipeline projects. It plans to add 5,500 km of gas pipeline in phases over the next three years as part of government’s efforts to raise the share of natural gas in India’s energy mix to 15 per cent by 2030 from current 6 per cent. The company presently operates a pipeline network of 10,977 km across the country. GAIL’s major pipeline projects currently under implementation are the 2,655-km JagdishpurHaldia and BokaroDhamra pipeline, 670-km VijaipurAuraiyaPhulpur pipeline, and 879-km Kochi-Koottanad Bengaluru Mangaluru pipeline.

https://www.millenniumpost.in/business/gail-gets-boards-approval-for-raising-rs-1500-crore-in-debt-396014

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Eleven oil and gas fields go under the hammer in fifth round of bidding

Earlier, licenses were awarded to companies who offered a maximum share of oil and gas to the Centre.India’s Directorate General of Hydrocarbons (DGH) on Wednesday (Jan 15) opened the fifth round of bidding for oil and gas blocks, offering 11 areas up for grabs.

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The last bidding round under which seven blocks were put up on offer saw only eight bids coming in, with state-run oil explorer ONGC bagging all seven on land blocks offered under the Open Acreage Licensing Policy (OALP). So far, the government has awarded 94 blocks under the Hydrocarbon Exploration & Licensing Policy (HELP) regime in just two-and-a-half years.“In continuation of its aggressive acceleration of exploration and production activities and adhering to prescribed timelines, the government has now launched the Bid Round-V for International Competitive Bidding. In this bid, 11 blocks with an area of around 19,800 sq km are on offer for bidding to the investor community,” the DGH said. Bidding for this round will close on March 18.The 11 blocks under OALP Round-V are spread across eight Sedimentary Basins and include eight on land blocks (six in Category-I Basin and one each in Category II and III Basins), two Shallow Water blocks (one each in Category-I and II Basins) and one Ultra Deep Water block (Category I Basin).The OALP round-four was the first round of bidding conducted under tweaked norms, where blocks in little or unexplored Category-II and III basins are awarded to firms offering to do maximum exploration programme. Earlier, licenses were awarded to companies who offered a maximum share of oil and gas to the Centre.“(OALP-V) comes with attractive and liberal terms like no oil cess, reduced royalty rates, marketing and pricing freedom, round the year bidding, freedom to investors for carving out blocks of their interest, a single licence to cover both conventional and unconventional hydrocarbon resources, exploration permission during the entire contract period, and an easy, transparent and swift bidding and awarding process,” the DGH said.

https://www.newindianexpress.com/business/2020/jan/16/eleven-oil-and-gas-fields-go-under-the-hammer-in-fifth-round-of-bidding-2090143.html

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Fertilizer plants at Ramagundam, Talcher to commence production soon: Gowda

The Union Minister for Chemicals and Fertilizers, Shri D.V. SadanandaGowda launched the “APNA UREA – SonaUgle” brand of Hindustan Urvarak&Rasayan Limited (HURL) at a function here today. On occasion, he also unveiled the Company’s logo.With the objective of

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making the country self-reliant in Urea, the Government approved in 2016 the revival of three sick Urea plants located at Gorakhpur, Sindri, and Barauni. The task of the revival of these three Units has been undertaken by HURL. “The Prime Minister has directed for the revival of five major sick/shutdown fertilizer plants, three of which have been undertaken by HURL. The other two plants at Ramagundam and Talcher will also commence production soon,” said ShriGowda. “We are importing 70-80 LMT fertilizer every year. After the commissioning of these five units, the total production of Urea will increase by 63.5 Lakh Metric TonnePer Annum (LMTPA),” he added.Lauding HURL for setting in place the delivery system and supply chain ahead of schedule, the Minister encouraged the Company’s Board to continue the momentum and hoped the commissioning of the three plants will also be advanced.Speaking on the occasion, the Secretary, Department of Fertilizers, ShriChhabilendraRoul stressed the balanced use of fertilizers including organic ingredients and micro-nutrients.The HURL is being looked like a major emerging player in the Urea market due to the revival of the three closed units in 2021 having a total installed production capacity of 38.1 LMT of Neem Coated Urea per annum. The Company will establish and operate state-of-the-art environment-friendly and energy-efficient Natural Gas based new Fertilizer Complexes with the annual installed capacity of 1.27 MMTPA neem coated Urea at each of the three locations which are expected to be commissioned in February 2021 (Gorakhpur, UP) and May 2021 (Barauni and Sindri). The feedstock to the plants i.e. Natural Gas will be supplied by GAIL under the Pooled Price Mechanism.,The other two Urea Units being revived are Ramagundam unit by M/s. Ramagundam Fertilizers & Chemicals Limited (RFCL), a Joint Venture of National Fertilizers Limited (NFL), EIL & FCIL, and Talcher unit by M/s. Talcher Fertilizers Limited (TFL), a Joint Venture of Rashtriya Chemicals & Fertilizers Limited (RCF), CIL, GAIL & FCIL.India’s average urea import is to the tune 63.12 LMT while the average total production of urea in the country is around 241 LMT and the total consumption (Sales) is 305.48 LMT approximately. The gap is fulfilled through imports.

https://www.devdiscourse.com/article/headlines/835403-fertilizer-plants-at-ramagundam-talcher-to-commence-production-soon-gowda

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Policy Matters/ Gas Pricing/Others

Govt. moves to green 2 lakh telco towers

The oil ministry is pitching for converting diesel generators (DGs) used by telecom towers to run on natural gas to cut the economy’s carbon footprint by reducing diesel consumption and expanding the clean-burning fuel’s share in India’s primary energy basket.

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An oil ministry dossier for states on opportunities in gas-driven economy says the country can reduce diesel consumption by 326 million litres of diesel a year if the 182,000 of the 520,000-plus towers – where conversion is possible –switch to gas. To give a perspective, the quantity of diesel saved is equivalent to roughly four days’ consumption in Delhi, the country’s largest automobile market. This means if all the identified towers are converted, it will save four days’ emission in Delhi. The conversion push builds on the government’s drive to make natural gas available across 53% of the country’s area by adding 18,000 km of pipelines in the next few years and launch city gas service in 400 districts covering 70% of the population. Tower operators are required to provide uninterrupted services 24×7, making diesel-guzzling DGs a necessity in the absence of continuous grid supply, especially in the hinterland. Nearly 80 of these DGs are of 25 KVA capacity, 15% of 125 KVA, while the rest include battery storage and solar. The dossier suggests guidelines from environment and forests ministry to ban or replace DG sets to gas generators as the fuel becomes available in more areas. It also suggests including gas generator manufacturing in ‘White’ category for easier environmental clearance. https://timesofindia.indiatimes.com/business/india-business/govt-pitches-for-gas-powered-telco-towers-to-cut-diesel-use/articleshow/73641198.cms

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Uniform tax rate: Centre wants states to cap VAT on CNG at under 5%

The Centre wants the states to limit the value-added tax (VAT) rates on compressed natural gas and liquefied natural gas (CNG/LNG) at under 5%. The Centre has also pitched for lowering of road taxes for vehicles running on CNG/LNG by states to make these on par

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with the rates charged on electric vehicles (EVs). These proposals are part of the draft policy for city gas distribution (CGD) prepared by the Ministry of Petroleum and Natural Gas (MoPNG) which, the government expects will become a template for every state to come up with their own CGD policies. Different states charge different VAT on CNG. For example, while Delhi completely exempts VAT on CNG, the same in Uttar Pradesh, Maharashtra and Gujarat is as high as 12.5%, 13.5% and 15%, respectively. It remains to be seen if the states agree to reduce the VAT on CNG as suggested by the MoPNG, and forego the income they earn from this source.According to experts, having a uniform tax rate for CNG will address the long-standing demand of including gas under the ambit of the GST. “Rationalising the VAT rates and bringing them to a uniform level will help take up this much delayed reform,” Deepak Mahurkar, partner, PwC, told FE.According to the draft policy reviewed by FE, states are expected to form a committee under the chairmanship of their respective chief secretaries which will meet at least once in three months to assess the development of the CGD network in the states. The committee is expected to coordinate with various local and civic bodies to streamline the process of procuring various clearances and standardise levies and charges. The Centre has suggested that state-level committees should also put a policy thrust to promote CNG and LNG as the preferred fuel in public transportation.The main challenge the expansion of the CGD network faces is obtaining licences and work permits from a plethora of civic agencies including the land owning agency, the municipal corporation, district magistrate and the fire department.The draft policy proposes states to create a single-window clearance mechanism for getting all the clearances.

https://www.financialexpress.com/economy/uniform-tax-rate-centre-wants-states-to-cap-vat-on-cng-at-under-5/1835706/

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Domestic gas price should be market-linked to spur output

It is also essential to encourage investments in what is essentially a high-risk business. The recent criticism by the International Energy Agency of India’s natural gas pricing policy is not without merit. It reaffirms what the country’s energy

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policy-makers have known for long that linking domestic prices to very low global reference prices has reduced incentives for domestic producers to raise supplies. India’s domestic gas output declined 7% between 2013-14 and 2018-19, while its gas import dependency increased from 34% to 47% in this period. The metrics have worsened in 2019-20 with import dependency now over 50%. While geological challenges have played a part in the output decline, a large portion of the blame lies at the door of the arbitrary formula-linked pricing mechanism that governs much of the natural gas being produced in the country. This formula is used to fix the price of the fuel every six months. The domestic gas price is the weighted average price of four global benchmarks (the US-based Henry Hub, Canada-based Alberta gas, the UK-based NBP, and Russian gas) in the prior year, kicks in with a quarter’s lag, and applies for six months. Oddly, the formula does not take into account the price of gas actually imported into India. Typically, Asian gas imports are costlier than many international benchmarks. So, the price of domestic gas is lower than that of gas imports into India.

https://www.thehindubusinessline.com/opinion/editorial/domestic-gas-price-should-be-market-linked-to-spur-output/article30618097.ece#

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Need R&D in gas-based fuels: Anil Kakodkar

The centre is promoting technogy for converting  garbage and plastic waste into energy, said a senior oicial in the petroleum ministry “CNG vehicles are required in public transport and towards this end, CNG needs to be produced on a large scale.

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In order to reduce the ill-eects of vehicular pollution, the government has laid thrust on research and development on pollution-reducing technologies, ” M MKutty, Secretary to the Ministry of Petroleum and Natural Gas, said at a global meet on ‘Refining and Petrochemicals Technology’ here on Sunday. Anil Kakodkar, Chairperson, Scientific Advisory Committee, said the country’s economy was greatly dependent on gas-based fuels and called for research and development in the field. “There is no point of taking up R&D in the coal-based fuel industry. Environmentally-friendly fuel is the need of the hour, ” he added. He continued: “Japan banned the use of coal after the Fukushima disaster. This is the opportune time to turn the focus on the production of biomass and organic fuel. The use of biomass should be promoted in rural areas. The developments in West Asia are worrisome and the government should take measures for ensuring energy security.”

https://www.deccanherald.com/city/need-rd-in-gas-based-fuels-anil-kakodkar-796247.html

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T.N. opposes amendment exempting hydrocarbon project from consultations

Strongly opposing the recent amendment to the Environment Impact Assessment Notification, 2006, exempting the hydrocarbon project proposed in the Cauvery delta region from public consultations, Chief Minister Edappadi K. Palaniswami wrote to

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Prime Minister NarendraModi on Monday urging maintenance of status quo ante and asking for the decision to be revoked.In his letter to Mr. Modi, Mr. Palaniswami referred to the notification issued by the Union Ministry for Environment, Forest and Climate Change on January 16, which had amended the earlier notification of 2006 mandating prior environmental clearance for certain projects, of which offshore and onshore oil and gas exploration, development and production projects were categorised under ‘Category A’.Recalling his earlier communication with Mr. Modi over opposition in Tamil Nadu to the hydrocarbon project, Mr. Palaniswami said projects involving exploration and extraction of hydrocarbons have always faced strong resistance from farmers/activists and other stakeholders in Tamil Nadu. “Since most of these projects are situated in the Cauvery delta districts, which is ecologically a fragile zone, but a very fertile region and the rice bowl of the State, the opposition to these projects has been emotive and intense,” he wrote.As it was quite “essential to take the people and all stakeholders along while implementing these projects, so that their cooperation and involvement is ensured”, the CM contended that the present notification went against this spirit. He also pointed out that no draft notification had been circulated as mandated and hence no opportunity was given to stakeholders and to the State government to offer views before the notification was issued.Considering these facts, Mr. Palaniswami requested that status quo ante be maintained for the Cauvery delta region.On January 16, the Centre issued an amendment to the provisions of the Environmental Impact Assessment Notification, 2006, for exploration drilling in respect of on-shore and off-shore oil and gas, vide notification stating that “All projects in respect of off-shore and on-shore oil and gas development and production except exploration are categorised under category A” and “All project in respect of off-shore and on-shore oil and gas exploration are categorized as ‘B2’ projects”.Another letter making the same demand was sent to Union Minister for Environment, Forest and Climate Change PrakashJavadekar.

https://www.thehindu.com/news/national/tamil-nadu/tn-opposes-amendment-exempting-hydrocarbon-project-from-consultations/article30610865.ece

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LNG Development and Shipping

LNG imports increase 7% as demand grows

The import of liquefied natural gas (LNG) increased 6.8% year-on-year in the nine months to December 2019 as local output declined and demand expandedLNG import expanded to 23.58 billion cubic meters in April-December 2019

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when gross production shrank 3.2% and total consumption climbed 3.9%. The share of LNG in total domestic consumption expanded to 51.6% during this period from 47.9% in the year-ago period. In December, the rise in LNG import was much sharper at 22.8% as local production fell 7.9% and consumption expanded 5.9%. Acollapse in the global LNG market, resulting in spot prices for Indian buyers falling below $4 per MMBtu, has also led to an increase in gas imports. Many buyers, locked in long-term contracts where prices are linked to crude oil, are unable to benefit though. India has been seeking to renegotiate long-term LNG purchase contract with its biggest gas supplier, Qatar, to bring down prices so that the fuel becomes more affordable for Indian consumers. Qatar has rejected the demand but Indian officials feel the doors are not yet fully shut.

BCCL – Non Copyright

Industry executives say a big jump in LNG demand can come once stranded gas-based power plants start operating. The government has been planning to pool tariff from gas-based plants and renewable facilities to make the blended tariff affordable, and revive gas-based generators. Falling local gas production is increasing India’s dependence on imports. A jump in local output is expected from the middle of this year when gas fields, operated by Reliance Industries and BP, will begin production. During April-December, ONGC’s gas output fell 2.7% from a year earlier but Oil India’s rose 0.8%. Private players’ production fell 7.6%.In December, ONGC’s output declined 9% due to lower gas production from Vasistha/S1wells due to sand incursion, protests in Assam and lower offtake by some consumers. Oil India’s output declined 2.87% mainly due to lower offtake by consumers. Private players’ production shrank 4.7% due to lower off take by some consumers and weaker performance in some fields.

https://economictimes.indiatimes.com/industry/energy/oil-gas/lng-imports-increase-7-as-demand-grows/articleshow/73719113.cms

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2,000 fueling stations on Delhi-Mumbai Expressway, priority to LNG: Nitin Gadkari

“LNG is the fuel for the future and the cost economics compared with diesel works to a saving of at least 50-60 per cent,” Gadkari said while speaking at the Conference on Future Fuels for Transportation organised by FICCI. Government plans to soon

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allot land for 2,000 fueling stations on the Delhi-Mumbai expressway highway, with priority given to Liquefied Natural Gas (LNG) stations, Nitin Gadkari, Minister of Road Transport and Highways said at an event here. “LNG is the fuel for the future and the cost economics compared with diesel works to a saving of at least 50-60 per cent,” Gadkari said while speaking at the Conference on Future Fuels for Transportation organised by FICCI. Petronet LNG, India’s largest natural gas importer is in talks with state-owned city gas distribution players like Indraprastha Gas Limited (IGL) and Gujarat State Petroleum Corporation (GSPC) to jointly set-up liquefied natural gas (LNG) pumps in six locations, initially, on the Delhi-Mumbai Expressway, Prabhat Singh, chief executive officer (CEO) had earlier told ETEnergyWorld. Also, government-owned gas utility GAIL (India) is planning to build 90 LNG stations across the golden quadrilateral, ET reported earlier this month. Gadkari while speaking at the event said that the country can produce bio aviation fuel in tribal and rural areas and reduce the import burden of the country.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/2000-fueling-stations-on-delhi-mumbai-expressway-priority-to-lng-nitin-gadkari/73741114

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India wants to delink Qatar gas supply deals from crude; Qatar says no

India wants Qatar to delink the price of its imported gas from that of oil under long-term deals, India’s oil minister said on Monday (Jan 27), to make supplies cheaper for price-sensitive customers after a sharp fall in spot prices of the cleaner

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fuel.Liquefied natural gas (LNG) sourced from the spot market LNG-AS costs about half of that under the long-term deals.India in 1999 signed a long-term LNG deal with Qatar for supplies from 2004, with volumes gradually rising to 7.5 MMTPA.The price of gas under the long-duration deal was linked to the price of crude, as oil markets were well developed compared with that of gas.The deal was, however, renegotiated in 2015 leading to about a 50% cut in prices for India, which agreed to buy an extra 1 MMTPA of the super-cooled gas from Qatar.“The current formula of benchmarking gas prices with crude oil is not correct,” the minister, DharmendraPradhan, said after meeting industry officials including Qatar’s energy minister, SaadSherida al-Kaabi, and Indian state-owned oil company officials.“India believes that there should be independent pricing formula for gas … We have to find a formula between the current practices and other international prices,” Pradhan told reporters.Kaabi said Qatar would not renegotiate pricing under the existing contracts and was ready to supply more gas to meet India’s growing demand for gas.“We are not renegotiating contracts, we stick with contracts – both sides – and we look for additional new contacts and volumes to comply with requirements from India,” Kaabi told reporters.Prime Minister NarendraModi has said India needed to increase the share of natural gas in its energy mix to 15% by 2030 from 6.5% now.Indian officials at the meeting said the negotiations had only started and could go on for some time.“There is a plenty of gas supplies in the market and India is a big market, where demand for gas will continue to rise,” said one gas firm official.“Our negotiations continued for about a year before they agreed on changing the formula in 2015.”This official said India wanted prices to be brought down to about $5 per MMBtu compared with about $8-$8.5 per unit currently sourced under the long-term Qatari deals.India is a leading buyer of Qatari LNG. Supplies from Qatar under the long-term deals account for about 40% of overall Indian gas imports.Pradhan said the government and Indian state-owned companies had put forward their views to the visiting Qatar delegation highlighting “availability, accessibility and affordability” of natural gas.Kaabi, who is also the chief executive of Qatar Petroleum, was accompanied by the chief executive of Qatar Gas, Sheikh Khalid bin Khalifa Al Thani.Qatar is the world’s largest supplier of liquefied natural gas (LNG) and wants to boost its production of LNG to 126 MMTPA by 2027. 

Source: LNG Global

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GAIL ferries imported LNG in trucks over 1,700 km to fuel demand in east

LNG is environment-friendly natural gas turned into liquid at minus 160-degree Celsius for ease of transportation in ships and truck. In a first, state-owned gas utility GAIL India Ltd is ferrying imported LNG in trucks from Gujarat coast to Bhubaneshwar in Odisha

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as part of a government push for a gas-based economy to reduce emission and carbon footprint.With gas pipelines yet to reach most parts of eastern India, GAIL has hired specialised cryogenic bullet trucks to transport imported liquefied natural gas from Dahej in Gujarat to Bhubaneshwar, where it is used as CNG to fuel automobiles and piped gas as cooking fuel in kitchens, company Chairman and Managing Director AshutoshKarnatak said.LNG is environment-friendly natural gas turned into liquid at minus 160-degree Celsius for ease of transportation in ships and trucks.”We started transporting LNG through trucks from Dahej to Bhubaneshwar and have broken-even on the business,” he told PTI here.It takes about a week for the LNG truck to move from west coast to the east and on reaching Bhubaneshwar LNG is regasified or converted back into its gaseous state at an LNG Satellite Station, which was set up at a cost of Rs 10 crore. Following regasification, gas is moved in cascades to CNG dispensing stations and piped natural gas fuelling points.Gas so supplied is cheaper than alternate fuels such as diesel. LNG can also be used as a fuel directly in trucks and buses but there are only a handful of vehicles currently operating in the country using such fuel.”Gas is a happy fuel. It not just cuts vehicular emissions (caused by use of liquid fuels such as diesel) but also is an environment-friendly replacement for coal,” he said.Karnatak said in absence of a national gas pipeline grid, transporting LNG through trucks has become a viable option.”There has been demand from city gas operators in places such as Bhopal and its neighboring Mandideep, Indore, and Mangalore, where there are no pipelines to take gas, for supplying the fuel in LNG trucks,” he said.The government is planning a network of LNG fuelling stations along the 6,000-km golden quadrilateral highways connecting the four metros, he added.GAIL is putting together a plan and persuading city gas distributors, gas suppliers, financiers, fleet owners, and truck manufacturers to help build an ecosystem for LNG-fuelled vehicles in the country.”As many as 24 locations have been identified to set up LNG fuelling stations,” he said, adding trucks and buses can ply up to 800/1,000 km on a full-tank of LNG.A shift to LNG-powered trucks from diesel will cut pollution and turn Indian highways quieter.

https://www.business-standard.com/article/pti-stories/gail-ferries-lng-in-trucks-over-1-700-km-to-fuel-gas-demand-in-east-120012100706_1.html

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LNG pumps being planned along golden quadrilateral

India is planning a network of liquefied natural gas (LNG) fuelling stations along its 6,000-kmlong golden quadrilateral highways, a move that could encourage thousands of truckers to switch to the cleaner fuel from polluting diesel.

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State-run GAIL is putting together a plan and persuading all possible participants – city gas distributors, gas suppliers, financiers, fleet owners and truck manufacturers – to get them on board and help build an effective ecosystem for LNG-fuelled vehicles in the country, according to people familiar with the development.A shift to LNG-powered trucks from diesel will cut pollution and turn Indian highways quieter while boosting gas import.About 350 LNG fuelling stations, at a cost of ₹3,000–3,500 crore, will be needed to cover the full length of the golden quadrilateral, as per the initial plan. Regulations permit only those with city gas distribution licences to set up LNG stations, and therefore, various licence holders will build fuelling stations in specific stretches of the expressway that fall in their respective licence areas.About a fifth of the golden quadrilateral’s length falls in areas for which GAIL and its joint venture units have licences. GAIL is planning to build about 90 LNG stations, according to people familiar with the matter. Indian Oil, which has obtained several licences in recent years, too, plans to build LNG stations in its areas. Email queries sent to GAIL and Indian Oil remained unanswered till as of press time.GAIL is also in talks with ExxonMobil and Mitsui, which can potentially partner as LNG suppliers as well as financiers for the initial lot of LNG trucks planned to hit Indian roads, according to people familiar with the matter. The plan is to get at least 10,000 LNG trucks, most of which would be initially imported, they said.An email query to Mitsui remained unanswered as of press time Sunday.At present, Indian cities have about 3.5 million vehicles using CNG, but barely any that use LNG, which is natural gas super cooled to -162 degree centigrade. Because of its lower energy density and slow refuelling time, CNG is seen as suitable for city transport, but not for long-haul drives. LNG contains 2.5 times more energy per unit volume compared with CNG and can fill fast, becoming appropriate for long-distance travel.

https://economictimes.indiatimes.com/industry/energy/oil-gas/lng-pumps-being-planned-along-golden-quadrilateral/articleshow/73394731.cms

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Natural gas consumption set for big leap in Koch area

Consumption of natural gas in the State is set for a big leap and is expected to reach around 60 lakh cubic metres a day after the 444-km Kochi-Mangaluru pipeline is commissioned by March 2020.All works related to the commissioning of

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the pipeline was complete and works related to river crossings in Kozhikode (Kuttiyadi), Kasaragod (Chandragiri) and Mangaluru (Netravati) remained, said GAIL India General Manager Tony Mathew here.Natural gas consumption in Kochi city touched an all-time high when daily consumption reached 38.3 lakh cubic metres in the second week of January, he said. Industries account for bulk of the gas use. Bharat Petroleum Corporation uses 28 lakh cubic metres; FACT nine lakh cubic metres and other industrial units account for 1.3 lakh cubic metres of consumption.Consumption of natural gas by vehicles and households alone is 34,600 cubic metres. The volume is set to go up in the near future as the automobile sector is increasingly switching to natural gas.The industry sector makes substantial savings when it switches from LPG to natural gas. Switching over to natural gas can help a taxi driver save substantially in fuel cost every month as the cost per kilometre of petrol vehicles is between ₹5.5 and ₹6 compared to the ₹2-per-km for CNG.Work on the 94-km pipeline to Walayar from Koottanad is in progress. Eighty per cent of the work has been completed and the pipeline can be commissioned by June 30. The pipeline will help the city gas distribution in Palakkad as well as supply of fuel to industrial units in Palakkad and Coimbatore.

https://www.thehindu.com/news/cities/Kochi/natural-gas-consumption-set-for-big-leap/article30603048.ece

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INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

Net natural gas exports to almost double by 2021 – USA

U.S. natural gas exports are expected to exceed natural gas imports by an average of 7.3 BCF per day in 2020 and 8.9 BCF per day in 2021, according to the U.S. Energy Information Administration (EIA). The rise in U.S. net exports can be attributed to increases in

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liquefied natural gas (LNG) exports and pipeline exports to Mexico.Net natural gas exports more than doubled in 2019, from 2018, and they are expected to nearly double again by 2021, from 2019. The United States trades natural gas by pipeline with Canada and Mexico and as LNG with dozens of countries. The United States historically has imported more natural gas than it exports by pipeline from Canada. But, the United States has been a net exporter of natural gas by pipeline to Mexico. The United States has been a net exporter of LNG since 2016 and delivers LNG to more than 30 countries. Demand growth for U.S. natural gas exports exceeded consumption growth for natural gas in the U.S. electric power sector in 2019. Natural gas deliveries to U.S. LNG export facilities and by pipeline to Mexico comprised 12% of dry natural gas production in 2019. These deliveries are expected to account for a larger production share through 2021 as new LNG facilities start operating and new pipelines to Mexico begin transporting U.S. natural gas. Net U.S. natural gas imports from Canada have declined steadily in the past four years as new supplies from Appalachia into the Midwestern states have displaced some pipeline imports from Canada. U.S. pipeline exports to Canada have risen since 2018 when two new pipelines started operating. The United States is expected to remain a net natural gas importer from Canada through 2050.U.S. pipeline exports to Mexico rose by 0.5 BCF per day to an average of 5.1 BCF per day between January and October 2019, from the 2018 average, according to the EIA. The rise came after cross-border pipeline capacity was expanded. Several new pipelines in Mexico that were set to start operating in 2019 were delayed and should be completed in 2020.USA’s LNG exports increased in 2019 by 2 BCF per day to an average of 5 BCF per day, from 2018, according to the EIA. The rise can be attributed to several new LNG facilities that started operating. LNG exports are projected to rise to 6.5 BCF per day in 2020 and 7.7 BCF per day in 2021 as the facilities increase production.

https://talkbusiness.net/2020/01/net-natural-gas-exports-to-almost-double-by-2021/

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Israel starts exporting natural gas to Egypt under landmark deal

Israel began exporting natural gas to Egypt on Wednesday (Jan 15) under one of the most important deals to have been signed by the neighbors since they made peace four decades ago.A private firm in Egypt, Dolphinus Holdings, will purchase 85 BCM of gas, worth an estimated $19.5 billion,

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from Israel’s Leviathan and Tamar offshore fields over 15 years.Israeli Energy Minister Yuval Steinitz said the deal was “just the start” of cooperation with Egypt.Yossi Abu, CEO of Israel’s Delek Drilling, one of the partners in Leviathan and Tamar, said the arrangement “marks a new era in the Middle East energy sector”.Israel will initially export 200 million cubic feet of gas per day to Egypt, two Egyptian industry sources said. Gas from Leviathon will be supplied to Dolphinus at a rate of 2.1 BCM per year, rising to 4.7 BCM per year by the second half of 2022, according to Delek.The gas is being supplied via a subsea pipeline connecting Israel and Egypt’s Sinai peninsula, which Steinitz said had sufficient capacity for current volumes, though the option of building a second pipeline was being considered if demand from Egypt grew. Exports of Tamar gas to Dolphinus are expected to start later this year.Israeli officials have called the export of gas to Egypt the most significant deal to emerge since the countries signed a historic peace treaty in 1979.“The fact that the three countries, Israel, Egypt and Jordan are now collaborating together and are already connected with a regional gas transmission system … this is significant and it will contribute to peace and security in the Middle East,” Steinitz told Reuters in an interview in Cairo.Jordan received its first supplies of Israeli gas at the start of the month.Egypt, which has boosted its own gas production in recent years, is hoping the Israeli gas deal will help it become a regional energy hub, with some of the gas expected to be re-exported to Europe through LNG plants.Israeli gas was not being sent to Egypt’s Idku LNG plant yet, but that could happen “in a few months”, Steinitz said.He also said Israel was talking to Egypt and India about exporting surplus gas to Asia via the Suez canal, and that Egypt could in the future join Israel, Cyprus and Greece in the recently signed EastMed gas pipeline project.Steinitz brushed off concerns over a maritime deal struck between Turkey and Libya’s internationally recognised government in November, which is seen by Greece and Cyprus as a hydrocarbons resource grab.“Nobody can block the Mediterranean and nobody can own the Mediterranean … I don’t think this is a serious obstacle,” he said.

Egypt is currently exporting one billion cubic feet of gas to Europe every month via 10 shipments, the country’s petroleum minister said in remarks published on Wednesday (Jan 15).Tarek El Molla also told El Watan newspaper that Egypt wanted to boost gas shipments to Europe to 20 a month after restarting the Damietta LNG plant.

Source: LNG Global [Edited]

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Nigeria rich in gas, lowest in usage –FG

Nigeria has the lowest penetration of liquefied petroleum gas, popularly called cooking gas, despite being rich in gas resources, the Federal Government has said. The Minister of State for Petroleum Resources, Timipre Sylva, who said this during a television interview,

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also stated that the Federal Government was working towards the production of Compressed Natural Gas as an alternative fuel to Premium Motor Spirit this year. A video clip of the interview was made available to our correspondent in Abuja by the Federal Ministry of Petroleum Resources. Sylva said, “The gas sector will definitely grow. Nigeria is described as a gas territory with oil in it. Unfortunately, we have not taken advantage of our gas resources. “All the gas we have found in Nigeria was found while looking for oil, not looking for gas. We are going to have some targeted exploration for gas.” He added, “We also want the people of Nigeria to have an alternative to PMS. We want to see how gas can be converted to CNG. “And also we are trying to improve the LPG penetration. Unfortunately, Nigeria has the lowest LPG penetration in the world. We are very rich in gas. This year we are going to focus on this area.” Sylva stated that although the Petroleum Industry Bill had made several trips to the National Assembly without translating into law, 2020 would mark its last trip to the lawmakers. The minister expressed optimism that the PIB would be passed this year based on the cordial relationship between the legislature and the executive. The minister also disclosed that the rehabilitation of the Port Harcourt refinery would begin in the first quarter of 2020. He said that the construction of the Ajaokuta, Kaduna and Kano gas pipeline project would begin this year.

https://punchng.com/nigeria-rich-in-gas-lowest-in-usage-fg

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Global LNG Development

IHS Markit: LNG investment skyrocketing, U.S. set to take global lead by 2023

The liquefied natural gas (LNG) industry, which promises to revolutionize power generation worldwide, is expanding by historic leaps and bounds in the U.S. and beyond, according to a new report by IHS Markit.Last year was a record shattering year for the LNG industry,

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as final investment decisions for liquefaction projects topped 70 million tons per year (MMtpa). This is 40 percent higher than the previous all-time high reached in 2005.The U.S., Russia and Mozambique each set historic levels for final investment decisions on LNG projects in 2019, according to the report.  “The ongoing pace of new investment is especially noteworthy considering a market context of weak global prices,” said Michael Stoppard, chief strategist, global gas at IHS Markit. “Not only did LNG grow at an unprecedented rate in 2019, but the industry also laid the foundations for continued strong growth into the middle of the decade.”Numerous companies are already building or planning to build LNG export terminals on the U.S. coasts as gas production reaches 94 BCF per day and perhaps more.IHS Markit forecast that global LNG capacity is expected to total 437 MMTPA this year, a nearly 60% increase over only five years earlier.The U.S. is gaining faster but only became a net energy exporter in the last year. Australia is No. 1, surpassing Qatar as top LNG exporter for 2019.IHS Markit predicts that Australia will hold on to that top spot for maybe three years when the U.S. ascends to the front of the LNG production pack.On the import side, Europe, China and Japan lead the way. China is the world’s largest LNG importer of recent note, with some 7.3 MMT taken in December, while Japan is the biggest annual importer at 77.5 MMTPA for all of 2019, according to the report.U.S. companies are working out LNG deals with countries in the Caribbean, South America, Asia and Europe, according to recent Power Engineering stories.During POWERGEN International 2019 in New Orleans two months ago, Energy Capital Vietnam CEO David Lewis talked about the potential for U.S. LNG export worldwide and particularly in Asia (see above).“These are very exciting times,” Lewis said. “The shale revolution and all of that fracking (hydraulic fracturing) have led a global transformation in the energy landscape.”The IHS Markit report, “2019: A Year of Records for LNG” can be found on the ihsmarkit.com site.

https://www.power-eng.com/2020/01/22/ihs-markit-lng-investment-skyrocketing-u-s-set-to-take-global-lead-by-2023/#gref

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Asian LNG spot prices drop to multi-year lows below $4/MMBtu

Asian liquefied natural gas (LNG) spot prices dropped to multi-year lows on Tuesday with at least one cargo being sold into Northeast Asia below the psychological barrier of $4 per MMBtu.Gas prices are tumbling globally as new projects sanctioned

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when prices were higher ramp up output just as economic growth slows. A milder than usual winter in North Asia is also curbing demand.Low spot prices will particularly hit companies which purchase LNG through long-term contracts, selling on to end-users at market prices, traders said. The contracts are typically priced relative to oil prices, with many currently estimated at more then double the spot price.Brunei LNG export plant sold a cargo for March 30-31 delivery at about $3.90 to $3.95 per MMBtu, which traders say is the lowest in years and the lowest ever for this time of the year.The buyer is likely Shell, four industry sources said, though this could not immediately be confirmed.Brunei LNG also sold a cargo for March 12-15 delivery at around $4.40 per MMBtu, one of the sources said.The cargoes were sold on a delivered ex-ship (DES) basis into the Japan, Korea, Taiwan, China region, the sources said.The LNG market is opaque, with companies typically unwilling to comment publicly on cargo prices.One LNG producer estimated that the last time spot cargoes were sold below $4 per MMBtu into Northeast Asia was in 2016, though that was during a period of non-peak demand and not in winter.“I don’t think it’s a good sign to see prices so low and we’re just in January,” he added.In Singapore, the Japan-Korea-Marker (JKM) price, assessed by S&P Global Platts — a unit of S&P Global Inc — fell to a more than three-year low of $4.046 per MMBtu on Tuesday, Ciaran Roe, Platts’ global director of LNG pricing, told Reuters.The JKM price, which is becoming a benchmark for spot cargoes in Asia, is at its lowest since April 19, 2016, when it was at $4 per MMBtu, Roe said.A mild winter and new commercial production in the United States are likely pressuring prices, he said, adding that sustained low gas prices could spur a switch from coal to gas use in Asian countries such as Japan.

Source: LNG Global

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Global LNG-Prompt Asian prices hit 4-month low, drop below $5/MMBtu

Asian spot prices for liquefied natural gas (LNG) for the current month fell below $5 per MMBtu, to their lowest in four months, as buyers remained on the sidelines ahead of the Lunar New Year holidays.Several cargoes were also

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offered in the spot market by various suppliers which helped absorb plant issues in Malaysia.The average LNG price for March delivery into northeast Asia LNG-AS is estimated to be about $4.60 per MMBtu, down 15 cents from the previous week, and the lowest since September last year, several industry sources said.Prices for cargoes delivered in February are estimated to be $5.25 per mmBtu, down five cents, they added.Exports from Malaysia’s Bintulu plant operated by Petronas may have been affected following a fire on the Sabah-Sarawak Gas gas pipeline in East Malaysia, industry sources said.Petronas has bought a cargo in the spot market, they said, though details were not immediately available. Exports from Malaysia are also set to dip slightly this week compared with last week, shiptracking data from RefinitivEikon showed.The signing of an initial deal between China and the United States this week also provided some positive sentiments for LNG though traders and analysts do not expect a big surge in Chinese imports over the next two years.“The trade deal may encourage more swapping of U.S. cargoes, but until the tariffs are in place, I don’t think there will be a big increase,” a Singapore-based trader said.There was also more demand from India as lower spot prices prompted some opportunistic buying and as cold weather in some parts of India prompted more demand for gas, traders said.Indian Oil Corp sought six cargoes for delivery during April-December, following a flurry of Indian tenders for spot cargo requirements last week.A South Korean buyer also bought a cargo for about $4.70 per MMBtu, an industry source said, adding that the cargo is to be delivered in March.Still, supply was firm with several “sell” tenders this week.Australia’s Ichthys LNG plant offered a cargo for loading by mid-January, while Brunei LNG offered two cargoes for March-loading, an industry source said.Nigeria LNG sold a cargo for loading in late-January, though details could not be immediately confirmed.Exxon Mobil Corp’s Papua New Guinea export plant offered a cargo for loading in mid-February, while Abu Dhabi National Oil Co (ADNOC) offered a cargo for loading at its Das Island plant in February, industry sources said. 

Source: LNG Global

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Egypt to reduce LNG cargoes for sale as gas prices plummet

The country will target a price of $5 per MMBtu for long-term gas sales deals and the government is already in talks with international partners to achieve this, Egypt’s oil minister Tarek el-Molla said in an interview on the sidelines of the

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World Economic Forum’s 50th annual meeting in Davos. The plan is for the deals to last for about one year to 18 months, after which time they’ll be renewed.El-Molla said “it’s a win-win situation” which will allow Egypt to increase its gas production to above 7.5 billion cubic feet a day this year, up from 7 BCF in 2019.Last year, after canceling some tenders, Egypt offered about 80 spot LNG cargoes for sale. In 2020, this will fall further “because they’re not giving us the value that we want.” The country will focus on negotiating long-term gas sales contracts instead. “We canceled several LNG tenders last year because the prices that we received don’t even match the cost of production,” El-Molla said. “This year will be even more challenging if we continue seeing the drop in prices.”Egypt exports about 1 BCF of gas a day, which it wants to double this year after the Damietta LNG plant restarts, which El-Molla said he expects to happen “in the coming few weeks” with initial output of about 500 MMCF a day, eventually reaching 700 MMCF a day.Egypt currently receives about 200 MMCF a day of gas from Israel, which will gradually increase to about 550 MMCF a day, El-Molla added.Royal Dutch Shell Plc signed seven contracts Monday (Jan 20) to explore for oil and natural gas in Egypt as the North African country completed at least $452 million in deals in a push to expand energy output. Aside from Shell, investors include BP Plc, Houston-based Apache Corp. and Malaysia’s state-run Petroliam NasionalBerhad, known as Petronas.

Source: LNG Global/Bloomberg

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Chinese demand for U.S. LNG unlikely to surge as long as tariffs remain

Chinese purchases of U.S. LNG are unlikely to surge, despite an agreement for China to buy more U.S. energy supplies, because tariffs on gas from the United States remain in place, analysts and traders said.Under a Phase 1 trade deal between

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the world’s two largest economies signed this week, China has committed to buying an additional $52.4 billion worth of U.S. energy supplies, including LNG, over the next two years.But a 25% tariff imposed by China on U.S. LNG, which has pushed the price of U.S. gas above the spot market and restricted purchases, remains for now while Washington and Beijing negotiate a Phase 2 trade deal.“For China to massively increase imports of … LNG from the U.S. while tariffs remain in place is going to be challenging,” said Gavin Thompson, Wood Mackenzie’s Asia Pacific vice chair.China’s demand for LNG over and above existing contracts is expected to be about 15 to 25 MMTPA over the next two years, according to analysts.

If China covered all of this demand with U.S. LNG despite the tariffs, that would increase Beijing’s purchases of U.S. energy by about $11 billion to $12 billion, or only 20% of the two-year target in the Phase 1 deal, analysts said.“We expect the Chinese government to remove, reduce, or approve tariff exemption before incremental LNG imports from the U.S. can be meaningful,” said Jenny Yang, director of IHS Markit’s greater China Gas, Power, and Energy Future division.If China were to buy far more U.S. LNG, importers would have to absorb the cost of the tariffs or pass it on to consumers, which could make Chinese state oil companies reluctant to commit to large-scale purchases, Wood Mackenzie’s Thompson said.Even if tariffs were removed, U.S. LNG would still be about $1.50 to $2.50 per MMBtu more expensive than gas available in Asia, analysts and traders said, referring to Asian spot prices which are at seasonal lows. The deal will, however, provide a boost to U.S. LNG projects under development and boost growth in overall Chinese demand, analysts said.

For now, several Chinese traders told Reuters they would be taking a wait-and-see approach instead of rushing into deals.“I personally don’t think the U.S. will lower or significantly remove additional tariffs which means China may not cancel tariffs for U.S. LNG,” a senior LNG executive at a Chinese company said. “I don’t think anyone is in a position to have a deal quickly.”

Source: LNG Global

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Cambodia imports liquefied natural gas from China

Cambodian Natural Gas Co Ltd and Chinese firm CNOOC Gas & Power Group Co Ltd teamed up in importing LNG to distribute within Cambodia’s market for the first time, an English-language daily newspaper reported on Thursday

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(Jan 16).A local company’s officer said the cooperation is to import the LNG to supply demand in the local market, as the company focuses on hotels and restaurants in the first-step plan.PhengSrosChoronei, administration officer at Cambodian Natural Gas, said the LNG containers were shipped in from China and arrived at Cambodia’s Sihanoukville Autonomous Port on Tuesday (Jan 14).”The demand of LNG consumption in Cambodia will increase as we see the ongoing demand of using the LNG in other countries going high,” Choronei was quoted as saying by the Khmer Times.The company plans to expand to 25 provincial cities. Currently it focuses on the capital Phnom Penh and Preah Sihanouk province.According to the Chinese embassy in Cambodia, CNOOC Gas & Power Group Co Ltd partnered with Cambodian Natural Gas Group to achieve China’s export of natural gas to Cambodia for the first time.The embassy wrote on its Facebook page on Tuesday stating that the close relationship of the two countries has opened up new investment between them.”Under the leadership of the leaders of the two countries, the China-Cambodia joint construction of the ‘Belt and Road’ has continued to go deeper and further,” the embassy said.”Both companies worked together to make the first use of LNG in Cambodia and supplied some of the Cambodian energy market and it will open a new chapter in the application of clean energy in Cambodia,” the embassy wrote.CNOOC Gas & Power Group Co Ltd is an enterprise in China with its main office in Beijing. It operates in the natural gas distribution industry.

https://www.china.org.cn/business/2020-01/17/content_75622711.htm

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Osaka Gas looks to Europe to sell spare LNG cargoes

Osaka Gas has offered two liquefied natural gas (LNG) cargoes from the newly-commissioned Freeport LNG project in the United States for delivery into Europe, industry sources said.Mild weather in Japan and a weaker Chinese economy

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have helped to drag the global LNG market to multi-year lows and forced Asian sellers to seek alternative markets.Osaka Gas has offered the cargoes for delivery into Europe between July 5 and 13 and Nov 9 and 17, said three of the sources, who asked not to be named because they are not authorized to speak to the press.An Osaka Gas spokesman declined to comment on the tender, but confirmed the company’s first cargo from Freeport, which loaded in December, did not go to Japan. He declined to give further details.The Freeport project shipped its first LNG cargo for Train 1 from its liquefaction facility located on Quintana Island in Freeport, Texas, in September, last year.Osaka Gas and JERA Co, a joint venture between Tokyo Electric Power Co and Chubu Electric Power Co, are expected to each lift half of Freeport LNG Train one’s total contracted capacity of about 4.64 MMTPA. Freeport has liquefaction tolling agreements with Osaka Gas and JERA from Train one for approximately 20 years. Under the deal, both companies will secure LNG without destination restrictions, increasing selling and pricing options.With a mild winter reducing Japan’s appetite for LNG, Europe is the most likely destination for these cargoes, given cheaper freight rates than to Asia, a Japan-based trader said.Weaker-than-expected demand from North Asia and a flood of supply from the United States have already pushed Asian spot prices below $5 per MMBtu, the lowest in more than a decade for the time of year.Freeport is expected to load 11 cargoes in January, up from 7 in December, ship-tracking data from RefinitivEikon showed.Freeport said on Jan 17 it had started commercial operations for the second liquefaction train with the commencement of gas deliveries from BP under a 20-year tolling agreement.

https://japantoday.com/category/business/Osaka-Gas-looks-to-Europe-to-sell-spare-LNG-cargoes

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A familiar face at the helm of new LNG project – AlaskaCan LNG

Byng Giraud, formerly with Woodfibre LNG, is in the news again as president of a proposed liquefied natural gas project by AlaskaCAN LNG.The new company has proposed constructing a $12-billion liquefied natural gas export terminal in

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Alaskan waters near Prince Rupert.It would ship gas from northern B.C. to Asia.“We like the Alaska side, partially because it makes the pipeline shorter — saves about 60 kilometers. And Alaska has a fairly clear and robust permitting process,” Giraud told He said that the plant could be operational in 2027 or 2028, shipping LNG to Asia.Giraud was with Woodibre for six and a half years.He was the first person hired in Canada to represent the project as country manager and vice-president of corporate affairs.Once the company got its environmental assessment certificates and grew in scale, the titles were shuffled and he became vice president of business development.He joined Woodfibre in 2013 and left in July of 2019.David Keane is the current president of Woodfibre LNG.Currently, remediation of the site located about seven kilometres southwest of Squamish on Howe Sound is continuing, according to Rebecca Scott, director of communications for Woodfibre LNG.Most recently the former women’s housing building — from when the former pulp mill and small community existed on the site — was demolished, Scott said.To date, $12 million has been spent on remediation of the property, according to Scott.A final investment decision on the project has yet to be announced.

https://www.squamishchief.com/news/local-news/a-familiar-face-at-the-helm-of-new-lng-project-1.24060972

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Cheniere Energy 1000th LNG cargo milestone

Cheniere announced yesterday it has produced and exported its 1000th cargo of LNG. The 1000th cargo was exported within a four-year time period after startup. Cheniere stated this is an industry record making the company the fastest producer in

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the world to reach this milestone. Cheniere has produced the 1,000 cargoes from both the Sabine Pass Liquefaction Project and the Corpus Christi Liquefaction Project. Cheniere’s 1000th cargo departed on the vessel Hoegh Galleon on January 26, 2020 from Cheniere’s Corpus Christi Liquefaction Project. Cheniere also celebrated the 100th cargo produced at the CCL Project, which departed on the vessel Yari LNG on January 13, 2020.“Reaching 1,000 cargoes of LNG faster than any producer in history is a testament to the performance of our people and the culture of our company. Our focus on reliability and safety through the entire LNG production process enabled us to reach this milestone, while fulfilling our commitments to our foundation customers,” said Jack Fusco, Cheniere’s President and CEO. The Sabine Pass Liquefaction Project consists of six natural gas liquefaction trains, five of which are fully operational, and one is under construction. The Corpus Christi Liquefaction Project located in south Texas, consists of three trains, two of which are fully operational and one is under construction and expected to be operational in 2021. Adjacent to the CCL Project, Cheniere is developing and commercializing its Stage 3 expansion, which recently received federal regulatory authorization.

Source: LNG Global

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Natural Gas / LNG Utilization

Hermes adds 48 CNG trucks, now runs one of UK’s largest NGV fleets

Cartwright Fleet Services (CFS) is delivering a second significant order of natural gas vehicles to Hermes UK, continuing to support the parcel carrier’s aim of further reducing its carbon footprint. The addition of 48 new Iveco tractors, running on biomethane,

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means that Hermes is now running one of the largest fleets of CNG vehicles in the UK. Arriving in time for the seasonal peak, they will replace diesel units on trunk routes. The order comes following a successful trial of 30 CNG tractors that CFS supplied to Hermes last year as part of a larger order for 244 specialist delivery vans and 70 tractors on contract hire with ongoing maintenance for five years. During the trial Hermes made significant savings on the running costs of the CNG vehicles when compared with a more conventional diesel equivalent. Its carbon footprint was reduced and tailgate emissions, including NOx which have been reduced by 200,000 kpa. “We are proud to support Hermes in making its trunking fleet more environmentally friendly by supplying tractors powered by alternative fuels that significantly reduce fleet emissions,” said Lawrence Todd, Director of CFS. “The fact that Hermes has come back to Cartwright Fleet Services to source extra CNG vehicles is testament to the quality of our service. We are delighted to be working with a forward-looking company such as Hermes.” Hermes Parcelnet’s National Fleet Manager Mervyn McIntyre also commented: “We are proud to have Cartwrights as one of our fleet suppliers and look forward to working with them in the years ahead.” CFS is part of the Cartwright Group, the renowned commercial vehicle body and trailer manufacturer. Based at Cartwright’s headquarters in Altrincham, CFS can supply a wide range of vehicles, from 3.5 ton vans to 44 ton tractors through its IVECO and ISUZU dealerships.

https://www.ngvjournal.com/s1-news/c3-vehicles/hermes-adds-48-cng-trucks-now-runs-one-of-the-largest-ngv-fleets-in-the-uk/

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Mexican trucking company expands fleet with Kenworth CNG vehicles

Transportes GYM Monclova, a leading steel carrier and supplier, is starting 2020 with an expanded truck fleet, as it recently acquired five new T880 2020 vehicles powered by natural gas, through KenworthdelBajío and with the support of

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PacLease Mexicana.Kenworth del Bajío, a Kenworth Mexicana dealer (member of the BACE Group), delivered the new trucks, equipped with Cummins ISX12N engines with the latest CNG technology, to Transportes GYM Monclova in early January.This operation was carried out through the support of PacLease Mexicana, Kenworth’s lessor, specialized in offering customers a solution to expand their business and fleets without decapitalizing.Transportes GYM Monclova and Kenworth play an important role as mutual collaborators. “With these new vehicles, the carrier relies on increasing the efficiency and profitability of its operations, as well as offering more comfortable management for its drivers,” said Alfredo Martos, Chairman of the Board of the BACE Group.This is an extremely positive moment for natural gas and the transition to a Mexican greener road transport.

https://www.ngvjournal.com/s1-news/c3-vehicles/mexican-trucking-company-expands-fleet-with-kenworth-cng-vehicles/

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Côte d’Ivoire: Scania will supply 50 natural gas buses to Abidjan

Scania has signed an agreement with the Ivorian Ministry of Transport and SOTRA, the Abidjan Transport Company, to deliver 450 buses. The new fleet includes 400 low-entry 13-meter buses and 50 18-meter articulated buses, bodybuilt by Marcopolo;

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the latter will be fueled by CNG. This agreement is part of a major initiative to upgrade SOTRA’s fleet and improve public transport in Abidjan.“With this agreement, Scania further strengthens its position in West Africa as a provider of sustainable solutions for urban mobility,” said Anna Carmo e Silva, Head of Buses and Coaches at Scania. “Over the past few years, Scania has successfully participated in improving urban mobility in Ghana and Nigeria. Based on that experience, we now look forward to a long-term partnership in providing better public transport services also in Abidjan.”The new buses will partly be deployed along the Boulevard Latrille Bus Rapid Transit system, which will form part of a future BRT system in Abidjan. It is estimated that the population of Greater Abidjan will increase to 7.7 million by 2030. By expanding public transport services through BRT, the aim is that two-thirds of the residents in 2030 will have access to the city center within an hour.The agreement also includes upgrading bus depots and vocational training of drivers and service technicians. Scania, in collaboration with AgenceNationaled’Appui au Développement Rural (ANADER), has initiated a feasibility study funded by Swedfund, the Swedish Development Finance Institution, to assess the opportunities for producing local biofuels from agricultural waste from cocoa, rubber and banana cultivation.A group of Swedish and French companies and institutions are presently engaged in sustainable public transport initiatives in Abidjan. Team Sweden with the Ministry of Foreign Affairs, Business Sweden, Swedfund, the Swedish Export Credit Agency, EKN, and the Swedish Export Credit Corporation, SEK, have supported with capacity building and financing.

https://www.ngvjournal.com/s1-news/c3-vehicles/cote-divoire-scania-will-supply-50-natural-gas-buses-to-abidjan/

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Portuguese freight company chooses Scania for its transition to NGVs

Transportes Central Pombalense, which has more than 54 years dedicated to the transport of goods both nationally and internationally, operates trucks prepared for all types of cargo. Currently its fleet consists of about 300 Scania vehicles, three of which are powered by LNG.

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The latter feature engines with a power of 410 hp and 2,000 Nm from 1,100 to 1,400 rpm, figures comparable to those of diesel engines of the same size.“Our decision to bet on LNG vehicles was aimed at reducing CO2 emissions and the environmental footprint, since we have to worry about this issue worldwide. One of the main advantages of acquiring an LNG vehicle is also the economic issue, the cost of the kilometer compared to a diesel vehicle,” said Renato Neves, managing partner of T.C. PombalensePedro António, traffic manager at T.C. Pombalense, also commented: “Currently, we use these vehicles for transportation nationwide from Trás-os-Montes to the Algarve. The route is planned day by day and service by service taking into account the need for natural gas supply.”“At this time, with about 300 Scania vehicles, our relationship with the brand is no longer supplier and customer; it’s something more. There is a reliability, trust in Scania. We believe it is a good product, hence we continue betting on the brand,” added Renato Neves.

https://www.ngvjournal.com/s1-news/c3-vehicles/portuguese-transport-company-chooses-scania-for-its-transition-to-ngvs/

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Cummins Westport’s full natural gas engine range certified as near zero

Cummins Westport Inc. (CWI) has received certifications from both the U.S. Environmental Protection Agency (EPA) and Air Resources Board (ARB) in California for its B6.7N natural gas engine. Like the Cummins Westport ISX12N and L9N engines,

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the B6.7N meets California ARB optional Low NOx standard of 0.02 g/bhp-hr, a 90% reduction from engines operating at the current EPA NOx limit of 0.2 g/bhp-hr. The B6.7N also meets 2021 EPA greenhouse gas emission (GHG) requirements.“We are proud to continue our legacy of emissions-leading products,” said Gordon Exel, President, Cummins Westport Inc. “The B6.7N is an excellent choice for medium-duty customers looking to reduce GHG emissions and lower their overall environmental footprint without sacrificing performance.”The B6.7N natural gas engine is available with ratings from 200 to 240 hp and up to 560 lb-ft. of peak torque. It is designed for truck, school bus, and shuttle bus. Like Cummins Westport’s L9N and ISX12N engines, the B6.7N features on-board diagnostics, an enhanced, maintenance-free three-way catalyst, a closed crankcase ventilation system, and an engine control module recently redesigned for improved durability.“All of the institutional knowledge we developed with the 9-liter and 12-liter engines went into the B6.7N,” said Tom Hodek, Cummins Westport Sales and VPI Program Director. “We’re now able to deliver a full suite of ‘Near Zero’ emissions options for the on-highway market, and we feel these products give the industry an economically viable way to reduce emissions while maintaining performance and low cost of operation.”All CWI engines offer customers the choice of using CNG”, LNG, or biomethane as a fuel. Combining Cummins Westport’s ultra-low emission engines with biomethane provides additional and significant GHG reductions.

https://www.ngvjournal.com/s1-news/c5-products/cummins-westports-full-natural-gas-engine-portfolio-now-certified-as-near-zero/

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Fiat and Redexis join forces to encourage NGV mobility in Spain

Fiat Professional and Redexis signed an agreement to develop sustainable transport through the widespread adoption of natural gas. Through this collaboration, Fiat will promote NGVs at its dealerships with the aim of extending its purchase and use.

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In addition, it will share with Redexis information on the demand for this type of vehicles and on the agreements to promote the installation of refueling stations with public access, in those areas close to the points of sale of the vehicles and that are considered of special relevance. Within the framework of this alliance, Redexis will develop the stations needed to meet this demand.“Our goal is to continue building and developing the necessary infrastructure to promote more sustainable, economical and environmentally friendly alternative fuels in our country. That is why we expect to have more than 100 natural gas stations nationwide in the next two years,” added Fernando Bergasa, president of Redexis.On the other hand, Redexis also signed an agreement with the Zoilo Ríos service station group to encourage the adoption of NGVs in Zaragoza. The objective is the construction, commissioning and maintenance of a refueling facility by Redexis at the “El Cisne” service station that Zoilo Ríos has in Zaragoza, which will allow the regular supply of both LNG and CNG, for long-distance goods trucks and passenger cars, vans and trucks.Redexis plans to make an investment close to one million euros to carry out the construction of this station, which is expected to start operations in the second half of 2020. The facility will have a 60 m3 LNG tank, a capacity of gasification and compression of 800 Nm3/h and two gas dispensers, one of LNG and another of CNG, with four simultaneous refueling positions, capable of supplying all types of vehicles, with refueling times between three minutes for passenger cars and eight minutes for heavy vehicles.According to Gasnam’s registration data in Spain, and taking into account the current growth rate, the potential of vehicles powered by natural gas in the country could exceed one million cars before 2030.

https://www.ngvjournal.com/s1-news/c4-stations/fiat-and-redexis-join-forces-to-encourage-ngv-mobility-in-spain/[Edited]

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HAM Group expands its portfolio of products and services

HAM Group, a leading CNG/LNG Spanish services company, has acquired the Basque company FNX Liquid Natural Gas S.L., which focuses on the design, manufacturing and installation of Small-Scale Natural Gas Liquefaction plants,

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also including equipment for processing/treatment of natural gas from wells and other sources.Unlike most other LNG equipment suppliers, FNX has its own manufacturing facilities located in the north of Spain, a region renowned for its technological and industrial background, where FNX designs, builds and tests its equipment. Your engineering team is housed in the manufacturing facilities and provides field services –installation, commissioning and technical support- related to its product lines in order to meet our customers’ needs.Over the last four decades, the core executive and engineering teams of FNX have been working together through numerous technological industries. Such extensive experience in the design, manufacturing, installation and operation of equipment for different fields such as renewable energy, aerospace, oil&gas, power generation and many others has allowed his team to apply its know-how to FNX’s unique LNG equipment.With the incorporation of FNX Liquid Natural Gas S.L. to HAM Group, our expansion plan in South America is reinforced, where we are already present through our subsidiaries HAM Peru and HAM Chile. On the other hand, we will be able to offer our customers, through liquefaction, a solution to store and transport liquefied natural gas. The liquefaction allows to reduce in more than 600 times the volume of natural gas, facilitating its storage and transport in cryogenic tanks.Currently, HAM is a leader in the integral service of LNG and CNG, both in industries and in mobile-vehicular, maritime, etc. environments, betting on R&D and facilitating more efficient and sustainable improvements in facilities, natural gas supply and services of bunkering in the naval sector. We have become a reference for all those companies in the sector that are committed to liquefied natural gas and compressed natural gas as an alternative to fossil fuels.

https://www.ngvjournal.com/s1-news/c1-markets/ham-group-expands-its-portfolio-of-products-and-services/

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GO TOP

LNG as a Marine Fuel/Shipping

Some LNG-powered ships are leaking powerful greenhouse gas

One of the shipping industry’s great hopes for improving its environmental performance — engines powered by liquefied natural gas — won’t offer the benefits that many vessel owners are hoping for.Some types of LNG-powered ships leak so much methane —

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a contributor to global heating — that the environmental damage they cause over a 20-year period is far more acute than equivalent vessels run on conventional fuels.That’s the conclusion of a nonprofit that analyzed the emissions from different types of vessels that use the fuel.The criticism is a brickbat for LNG, a fuel that’s long been viewed as means of helping industries to cut carbon emissions and hit climate goals. The two-decade timeline matters because the most ambitious global climate target is to reach net zero emissions by 2050 in order to keep a temperature increase below 1.5 degrees Celsius compared to pre-industrial times.“Switching ships to LNG is worse than doing nothing,” said Kendra Ulrich, senior shipping campaigner at Stand.earth. “This should serve as an alarming wake-up call for the International Maritime Organization” the UN agency that oversees the industry’s emissions.The study was carried out by the International Council on Clean Transportation and referenced in documents submitted to the IMO by the Clean Shipping Coalition, Pacific Environment, Greenpeace International and the WWF.In the longer run, the LNG-powered ships in question can become less damaging relative to carriers running on conventional fuels because the leaked methane degrades over time.Burning LNG produces about 25% less carbon dioxide per unit of energy than today’s typical oil-based marine fuels. It also emits very low quantities of sulfur and nitrogen oxides, both of which have negative implications for human health. The methane leak ultimately makes its greenhouse gas impact worse for the planet than today’s oil-based propellants in most cases, at least in the short term, the ICCT report says.LNG mainly consists of methane, which traps 86 times more heat than the same amount of carbon dioxide over a 20-year period. While only a sliver of today’s merchant fleet runs on LNG, it’s becoming increasingly popular among newbuild vessels and often on the agenda when shippers discuss future fuels in the context of industry climate change targets.While the report doesn’t apply to all LNG-powered ships, it shows that the most popular type of vessels running on LNG today have a particularly high level of methane slippage. The carriers in question are those that have low-pressure injection engines.

Source: LNG Global

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New LNG bunkering simulator seeks to optimize training levels

Wärtsilä is launching its new LNG Bunkering & Supply System simulator to promote greater safety onboard LNG-powered vessels by improving the level of training for operators of LNG systems. The design is based on the well proven

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WärtsiläLNGPac and Gas Valve Unit (GVU) technologies, and includes all auxiliary systems used in connection with the fuel supply. It is also in accordance with the STCW requirements for training seafarers onboard gas fueled ships to standards demanded by the IGF Code – the international code of safety.The scope of simulation includes all operations related to the use of LNG fuel, from bunkering to gas fuel supply and engine operations, as well as troubleshooting. It provides realistic representation of the user interface for remote and local operating posts, as well as animated 3D visualization to facilitate situational awareness training. A ready prepared set of scenarios for tutorials and assessments is available as an additional option.“As the move towards LNG fuel gathers pace in the marine industry, it is essential that crews are thoroughly and expertly trained on handling the related systems. This new simulator is designed to raise training levels on LNG bunkering and supply systems, and will therefore also raise onboard safety levels,” said Sergey Tarasov, Solutions Manager, Wärtsilä Voyage Solutions.The Wärtsilä LNG Bunkering & Fuel Supply System simulator is available as a one-off purchase or on an annual subscription basis, and is part of the successful TechSim 5000 product line. The LNGPac simulator enables a number of different configurations tailored to the customer’s needs. Installations have been carried out at maritime academies and consulting facilities in Italy, Malaysia and Finland. The simulator can also be utilized for in-house training by ship owners and ship management companies.The official launch will take place at the Global LNG Bunkering Summit 2020 conference, being held in Amsterdam from January 28 to 30.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/new-lng-bunkering-system-simulator-seeks-to-improve-training-levels/

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MSC Cruises goes greener, orders third and fourth LNG-powered ships

MSC Cruises and Chantiers de l’Atlantique further extended their long-term partnership by making a number of strategic announcements, focused on the development and utilization of next-generation environmental technologies,

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at a ceremony held at the Matignon Palace, the French Prime Minister’s official residence. First, the two companies announced the signing of firm contracts for the construction of MSC Cruises’ third and fourth LNG-powered MSC World Class ships, to be delivered in 2025 and 2027.The first of the initial two ships in the class is currently under construction at the Chantiers de l’Atlantique shipyard in Saint-Nazaire and is due to enter service in 2022. With 205,000 GT, she will become the biggest vessel operated by a European cruise line as well as the first LNG-powered cruise ship built in France. These contracts represent a capital investment by MSC Cruises exceeding EUR 2 billion and are expected to generate 14 million additional working hours.MSC Cruises and Chantiers de l’Atlantique also extended their partnership over the next decade with two additional projects. First, the companies signed a memorandum of understanding (MoU) for the development of yet a new prototype class of LNG-powered cruise ships to operate under the MSC Cruises brand. A second MoU sees MSC Cruises partnering with Chantiers de l’Atlantique in the development of yet another innovative prototype ship class concept with which they will explore opportunities that wind power and other advanced technologies could bring to passenger shipping.“The three agreements extend our investment plan up to 2030. They stem from an exceptional partnership, with Chantiers de l’Atlantique, which has already delivered 15 highly-innovative cruise ships over the past two decades. They also confirm this industry’s commitment to environmental sustainability, in this case helping the French national industry further position itself as a world leader in the development of next-generation technologies and other solutions,” said PierfrancescoVago, Executive Chairman, MSC Cruises.Laurent Castaing, General Manager, Chantiers de l’Atlantique, also commented: “We are both committed to shaping the cruise of tomorrow and to developing ship concepts which go far beyond current environmental standards. Our companies have already been working together for 20 years and these new projects allow us to look enthusiastically to the future.”

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/msc-cruises-bets-on-green-fleet-orders-third-and-fourth-lng-powered-ships/[Edited]

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LNG plant to fuel ships and trucks under construction in Antwerp

Cryostar and KC LNG (LNG division of MAKEEN Energy) have been awarded a contract for building an LNG ship bunkering and truck fueling facility in Europe’s no. 1 breakbulk port of Antwerp. The project promotors of the facility are Fluxys, G&V,

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Titan LNG and Rolande, some of the strongest names in the European LNG industry.Cryostar and KC LNG are set to commission the LNG facility in the first quarter of 2020. It will allow Fluxys, G&V, Titan LNG and Rolande to substantially widen the LNG fueling options at quay 526/528 in the port of Antwerp, where currently truck-to-ship bunkering is offered.LNG-powered inland waterway ships will be able to dock at quay 526/528 for bunkering from a fixed storage unit, while LNG trucks will be able to refuel at the facility as well. Furthermore, mid 2020 the FlexFueler002 LNG bunkering barge will become operational in the greater Antwerp port area enabling safe and efficient ship-to-ship LNG bunkering on a larger scale.“We are proud to be part of delivering this solution with some of the leading LNG players in Europe. We think that this project is yet another testament to the rapid development of the LNG market. Easily accessible and affordable LNG is in high demand, and we want to be at the forefront with more solutions that accommodate this demand,” said Frej Olsen, Head of Group LNG MAKEEN Energy.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/lng-facility-to-fuel-ships-and-trucks-under-construction-in-the-port-of-antwerp/

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LNG bunkering increases in the Port of Rotterdam

2019 was a relatively safe year for shipping in the port of Rotterdam. Over the past year, the number of sea-going vessels arriving was about the same as in 2018: 29,491 compared to 29,476 last year. The number of accidents also remained virtually

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the same: 113 compared to 112, which involved mainly ‘parking damage’. As there was one very serious accident, the NSI (Nautical Safety Index) – a reflection of nautical safety – was slightly below the norm (6.56 instead of 7). This was due to a collision between a RHIB and a sloop, which resulted in one fatality. Three of the four serious accidents and ten per cent of all accidents involved passenger shipping.Harbour Master René de Vries gave his clear opinion of the prominent role passenger shipping plays in the number of incidents: “This is far too much for such a small group of waterway users. We have increased our supervision considerably, but it continues to be an extremely vulnerable group. We have, therefore, started discussions with the Ministry regarding additional measures. Something needs to happen”, stated Harbour Master De Vries today – Thursday 16 January – at his office in the World Port Center during the presentation of the nautical figures, in which he reflected on the past year and looked ahead to 2020.

For the first time and led by the ports of Rotterdam and Amsterdam, eleven sea ports have developed the same Port By-Laws. The port authorities are also cooperating in other areas. For instance, they are already using the same port management and information system: HaMIS.The harbour master is also making preparations for the opportunities that digitisation offers the port. For instance, drones are already used during incidents, in cooperation with the Safety Region Rotterdam. New tests were also conducted using a floating lab to research what is required to enable autonomous shipping in the port.The Port Authority is working closely with other ports including the Port of Antwerp to introduce a bunker permit for bunker fuel suppliers, starting 1 January 2021. A similar permit is already in place for LNG. The intention is for this permit to designate, for the first time, which substances are not permitted in bunkers. It is anticipated that the permit will considerably improve both transparency in the bunker market as well as bunker quantity and quality. More information will be published in mid-2020.

https://www.hellenicshippingnews.com/lng-bunkering-increases-in-the-port-of-rotterdam/

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First ship-to-ship LNG bunkering operation in the Port of Rostock, Germany

In only the second ship-to-ship LNG bunkering operation to take place in Germany, the world’s largest LNG bunker vessel ‘Kairos’, operated by Nauticor, has supplied DEME’s next generation offshore installation vessel ‘Orion’.

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For the Port of Rostock, this ship-to-ship LNG bunkering operation is a premiere.‘Orion’ is currently at the Liebherr construction yard in the Port of Rostock, where it is being outfitted with a 5,000-ton crane. DEME leads the industry with the adoption of LNG, with the new offshore installation vessel being the fifth dual fuel addition to the fleet, following three trailing suction hopper dredgers (‘Minerva’, ‘Scheldt River’ and ‘Bonny River’) and a cable laying vessel (‘Living Stone’).The ship-to-ship bunkering of LNG is another milestone in the construction of this game-changing vessel, which features a unique combination of exceptionally high transport and load capacity, impressive lifting heights and green technology. With its multi-year fleet investment program DEME aims to make continuous improvements in terms of productivity and environmental performance.Jan Schubert, Senior Manager Sales & Business Development at Nauticor also commented: “After conducting the first ship-to-ship LNG transfer in Germany in Brunsbüttel for DEME’s ‘Scheldt River,’ we are happy to also extend our cooperation for the latest vessel joining the DEME fleet. The successful cooperation between the crew on board of ‘Orion’, the Nauticor team and the port authorities in Rostock, showed again how important it is to involve experienced partners from the beginning. Securing the availability of LNG in another important port in Northwest Europe reduces the hurdles for companies to decide in favor of alternative fuels. This operation strengthens the LNG cluster in Rostock significantly and is an essential extension of the services offered by the port. The continuous development from the LNG bunkering operations by truck during the last years towards the first ship-to-ship bunkering operation shows the strong operational performance of our team. Environmentally friendly fuels, such as LNG, and a shipping industry driven by sustainability will shape our port in the long-run,” added Jens A. Scharner, Managing Director of ROSTOCK PORT GmbH.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/first-ship-to-ship-lng-bunkering-operation-performed-in-the-port-of-rostock/ [Edited]

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

Wholesaler ASKO rolls out Norway’s first hydrogen-fueled Scania trucks

One of the technology solutions that Scania has explored with its customer ASKO is fuel cell trucks powered by hydrogen. This venture now goes into the next phase with four trucks being put into real operation in a pilot that is one of the first of its kind.

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The pilot will be the basis for further learning and development for both companies. ASKO and Scania also celebrated the start of operations of the wholesaler’s hydrogen station in Trondheim.“Scania continues to work with cutting edge technology that supports the shift to fossil free transport. An important part of this is done together with some of our most progressive partners, such as ASKO, in customer-near development”, said Karin Rådström, Head of Sales and Marketing at Scania.“Hydrogen is an interesting option for long haulage electrified transport, and early tests show that the technology also works well in colder climate. We will continue to monitor the performance of these trucks closely. I also want to commend ASKO for taking early and bold steps to ensure a supply of hydrogen sourced from renewable sources and infrastructure for fueling. The company is a player who really take action to catalyze a shift toward sustainable transport,” added Rådström.As always, Scania’s work is based on a modular approach. In the four trucks deployed in ASKO’s operations, the internal combustion engine in the powertrain is replaced by an electric machine, powered by electricity from fuel cells fed with hydrogen.

https://www.ngvjournal.com/s1-news/c7-lng-h2-blends/wholesaler-asko-rolls-out-norways-first-hydrogen-powered-scania-trucks/

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Lidl rolls out Italian retail sector’s first biomethane-powered vehicles

Five new biomethane-fueled trucks in the Lidl fleet, a German global discount supermarket chain, were unveiled, a result of the company’s collaboration with IVECO, LC3 Trasporti and Edison. This is a first in the Italian Retail and Mass Distribution Sector,

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which again highlights the partners’ unwavering commitment. The new fleet will be used to restock points of sale in Northern Italy.Unveiled during a press conference at Lidl’s logistics center in Somaglia, the new IVECO Stralis NP 460 HP CNG will be powered by biomethane, a renewable and sustainable fuel both in terms of the levels of CO2 emitted by the vehicle and of life cycle emissions, which are significantly lower compared to other types of fuel. “IVECO has realized that the path to sustainable transport requires alternative traction systems and has met the increasingly pressing demands in this area with natural gas powered vehicles (gaseous and liquefied), which, are today the only concrete and immediately available alternative in order to provide sustainable transport. The true alternative that is already a reality today is biomethane, which enables the almost total abatement of CO2 emissions, creating a virtuous circle of economical and eco-friendly self-sufficiency; in fact, it is a shining example of circular economy. “The use of renewable energy sources and the decarbonization of transport are some of Edison’s core objectives, in line with European targets on sustainability. Today we are extremely proud to announce another step forward in the mass distribution model, thanks to the responsible and joint commitment of all operators in the chain. Edison now supplies methane to more than 200 refueling stations across Italy, is a member of GSE for biomethane, and is currently the main operator qualified to collect and distribute this fuel. Furthermore, Edison is involved in creating the first logistics chain that integrates LNG for further development of sustainable mobility in heavy- duty and maritime transport. Thanks to these developments, Edison’s contribution to distributing sustainable mobility is based on a full range of services that include electrical, methane and biomethane, LNG and soon bio-LNG mobility,” added DavideMacor, Edison Business Market Director.

https://www.ngvjournal.com/s1-news/c3-vehicles/lidl-rolls-out-italian-retail-sectors-first-biomethane-powered-vehicles/[Edited]

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