NGS’ NG/LNG SNAPSHOT – MARCH 2020, VOLUME 2
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
End of exclusivity period will ensure fair play in gas pipeline business
The chequered history of disputes between the Petroleum and Natural Gas Regulatory Board (PNGRB) and government and private players in the city gas distribution (CGD)
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business may be a thing of past, but Indraprastha Gas Ltd (IGL), Mahanagar Gas Ltd (MGL), Gujarat Gas and, to some extent, the Adanis are facing the regulatory heat again. And, yet again, the issue of ending the exclusivity period for these operators is a reason for unease. The only difference is that this time, both the regulator and the gas companies are better placed to deal with the issue. There are almost a dozen players in the CGD business, such as Sabarmati Gas Ltd, Bhagayanagar Gas Ltd and Avantika Gas, which have licences (within geographical areas) in over 20 states. The exclusivity period varies from three, five and eight years extendable by 10 years, depending on when the rights were given. The PNGRB is now taking careful steps to draft regulations on how to end the exclusivity and the subsequent issues of tariff and sharing of the existing infrastructure. Since the issue has been pending for over a decade for the IGL and Gujarat Gas, they have diversified their areas in other cities. The MGL, however, has been conservative and not ventured much out of the Mumbai region, primarily because of promoter disinterest. GAIL is also in the CGD business under the parent company. Gujarat Gas has already seen its exclusivity end in Morbi. It now has GAIL as a competitor there, but with a large industrial consumer base, the city could offer enough business to both the players. Analysts say once the exclusivity ends, fair competition will begin, only if it is accompanied by deregulation. According to an ICICI Securities report, competition will emerge only if new entrants get natural gas at the same price as incumbents. Gas is supplied under a government-notified formula, which has led to super-normal profits for CGD, but low returns or losses for Oil and Natural Gas Corporation. Gas can now either be supplied in accordance with a new formula, under which the price is higher, or be deregulated for all, says the report. This apart, oil marketing companies (OMCs), which own 56-58 per cent of CNG stations at their sites in Delhi and Mumbai, are likely to emerge as the main competitors, the report adds. “While new geographical areas will take a few years to break even, CNG and supply to industrial and commercial consumers using incumbents’ infrastructure are likely to turn profitable fairly quickly,” the report adds. Opening mature and large markets to competition could, however, create another issue for natural gas planners. The focus of new entrants could shift to those markets where both infrastructure and large customer bases exist. New players could find these markets more lucrative even though they are committed to invest Rs 1.2 trillion and are bound by contractual terms to begin commercial operations in other cities. This could mean that the expansion of natural gas infrastructure to other cities could slow down and future bidding rounds may suffer.
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Megha Gas opens outlet in Andhra Pradesh
Megha Gas, a part of Megha Engineering and Infrastructures Ltd (MEIL), has commenced its CNG outlet at YSR Colony on Kotturu-Tadepalli road near Vijayawada. Megha Gas is selling CNG
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at competitive prices, said G Rajkumar, distribution manager at Megha Gas, which has already begun selling CNG at Agiripalli, Nunna and Kanooru towns in Andhra Pradesh. “The works are in progress for setting up CNG filling machinery at three more towns. We’re looking for ideal places for setting up two more such CNG outlets in AP, ” said Rajkumar. Megha Gas city distribution manager. Megha Gas has entered into an agreement with Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) for distributing CNG at the petrol bunks of the oil marketing companies (OMCs). Megha Gas is selling CNG at HPCL’s petrol stations at Kankipadu, at HPCL outlet in Mylavaram IOC outlet in Gunadala. Mahalakshmi, Rajendra, Phani from Megha Gas, and BPCL dealer Murali took part in the inauguration of Megha Gas CNG outlet.
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Piped gas supply in old Medak soon
Torrent Gas Private Limited has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) for establishing and operating City Gas Distribution (CGD) network,
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including providing Compressed Natural Gas (CNG) and Piped Natural Gas (PNG), in the geographical area of Sangareddy, Medak and Siddipet districts covering 68 mandals spread across an area of 10,821 square kilometres.Finance Minister T. Harish Rao had announced that piped gas supply would start soon.Initially, gas would be supplied to the yet-to-be inaugurated 2,500 double bedroom houses coming up in the outskirts of the district headquarters in addition to two colonies. A pipeline is being laid for about 11 kilometres for this purpose. Gas would be supplied through the cascade filling system till the pipeline laying from Shamirpet to Siddipet covering about 80 kilometres was completed. So far, only about 20 kilometres have been completed.“Torrent has committed more than ₹1,300 crore in the next 10 years for the project and is working to connect more than 3,00,000 households, set up more than 54 CNG stations and connect various industries and commercial establishments across the geographical area. The first two CNG stations; one in Siddipet and another in Vantimamidi, have commenced and another 10 CNG stations in Siddipet, Sangareddy and Medak, are expected to be commissioned by March,” Torrent Gas vice-president D. MadhukarRaosaid.“Torrent Gas is committed to making CNG and PNG widely available at an affordable price to the citizens of Siddipet, Sangareddy and Medak. The widespread availability of natural gas and CNG will reduce pollution. It will also act as a catalyst and provide major boost to the socio-economic development in the region,” said director of Torrent Gas Deepak Dalal, during the inauguration of CNG stations at Siddipet.
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Gas least vulnerable among city gas players to competition
Worries over regulatory risks has seen shares of city gas distribution utilities such as Mahanagar Gas Ltd (MGL) and Indraprastha Gas Ltd (IGL) correction in the recent past. The regulator,
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Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to allow competition for city gas distribution (CGD) in Delhi, Mumbai, Thane and some other geographies, where marketing exclusivity of incumbents has already expired. While IGL shares have fallen by more than 17 per cent, Mahanagar Gas has corrected by 13 per cent. Gujarat Gas Ltd, however, continues trading firm.Analysts say, MGL is most vulnerable and is likely to face more competition compared to its peers, as it has maximum exposure to the city gas distribution business. IGL also has significant exposure, however it is better placed as it has been expanding to newer geographies where its marketing exclusivity will be maintained. Though IGL has corrected more than MGL, it is also due to the steep valuations it had been trading at.Gujarat Gas, on the other hand, is least impacted having significant supplies to industrial sector. Replacement of polluting industrial fuel will further drive volume growth for Gujarat Gas, say analysts at MotilalOswal Financial Services, who have maintained buy ratings. Further, both IGL and Gujarat Gas have also won new geographical areas in bidding for city gas distribution while MGL has not won any new geography. Post the correction, analysts feel the stocks are factoring in concerns despite the companies expected to continue benefitting from strong fundamentals. While spot prices of LNG having more than halved to a decadal low of less than $3 per MMBtu in February 2020, there is an oversupply of gas. The coronavirus outbreak has only aggravated the situation. However, it bodes well for all CGD players, at it spurs demand for the cheaper fuel besides improving their profitability.Manish Gupta, Senior Director, CRISIL Ratings says, “At a Brent crude price of $55 per barrel, the landed cost of furnace oil would be about $12 per MMBtu, while industrial LPG will be about $16 per MMBtu. On the other hand, industrial piped natural gas, apart from being cleaner, is significantly cheaper at $10.5 per MMBtu.”Even compressed natural Gas (CNG) demand is expected to continue growing led by rising demand for cleaner fuels on the back of pollution control measures and BS VI implementation.Overall, it will be benefit GAIL too, as higher gas demand from city gas distributors and increased geographical presence will boost volumes from India’s largest pipeline network company, driving its revenues and profits.In addition to gas players, the benefits will be seen by user industries. As lower gas costs may benefit power producers, the fertiliser plants using gas as feedstock will also benefit. Likewise, the tile producers also stand to gain. While the coronavirus is hurting exports to China, in the long-run the consolidation and shift of market share to organised players also bodes well for the domestic tile industry.
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India’s Rs 50,000 crore city gas investment plan gains viability on low LNG prices
The viability of India’s Rs 50,000 crore capital expenditure plan for city gas distribution (CGD) over the next four years has improved with the price of liquefied natural gas (LNG) expected to be subdued
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during the period.LNG accounts for nearly half of CGD consumption volume and a lower price augurs well for both volumes and operating margins of distributors, and project returns. Spot prices of LNG have more than halved on-year to a decadal low of less than $3 per MMBtu in February 2020 because of oversupply and the Coronavirus outbreak.This has sharply improved the competitiveness of piped natural gas (PNG) compared with furnace oil, liquefied petroleum gas (LPG) and gasoline, prices of which are typically linked to crude oil.“At a Brent crude price of $55 per barrel, the landed cost of furnace oil would be about $12 per MMBtu, while Industrial LPG will be about $16 per MMBtu. On the other hand, industrial piped natural gas, apart from being cleaner, is significantly cheaper at $10.5 per MMBtu,” said Manish Gupta, Senior Director, CRISIL Ratings.Global LNG prices are seen softer over the medium-term because supply is on course to exceed demand growth, with liquefaction capacity of about 180 MMT – equal to 40% of current world capacity – set to be commissioned over the next 4-5 years. Domestically, regasification capacity, too, is expected to witness robust growth, outpacing LNG demand.The domestic administered price mechanism-based gas, which accounts for the balance half of CGD volume, is also expected to benefit from low international benchmark natural gas prices. Typically, CGD companies pass on lower inputs costs to their compressed natural gas (CNG) and retail customers, and in return, they get a volume fillip owing to better price competitiveness.The subdued outlook for LNG prices improves the viability of Rs 50,000 crore of CGD capex relating to the ninth and tenth rounds of auctions by the Petroleum and Natural Gas Regulatory Board (PNGRB). It also improves the prospects for 44 new geographical areas set to be awarded in the upcoming 11th round of auctions
Source: LNG Global
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IGL may set up gas meter manufacturing unit to cut reliance on imports from China
As city gas distribution network in India expands rapidly, Indraprastha Gas Ltd plans to set up a factory to manufacture gas meters used to bill households and industries for the consumption of the environment-friendly fuel,
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as it looks to cut reliance on imports from China for the same.IGL will invest about Rs 100 crore for setting up a unit in the national capital region to manufacture 1 million meters annually, its Managing Director E S Ranganathan said here.The plan is part of the Modi government’s push towards raising the share of environment-friendly fuel in India’s energy basket to 15% by 2030 from the current 6.2%.As part of this, the city gas distribution (CGD) network for retailing CNG to automobiles and piped natural gas (PNG) for household kitchens and industries is targeted to expand to more than 400 districts spread over 27 states and Union Territories covering approximately 70% of India’s population and 53% of its geographical area.”Currently, gas meters are mostly imported from China and we felt there is a need for a domestic manufacturing unit to cut reliance on imports and boost ‘Make in India’,” Ranganathan said.IGL, which retails CNG and PNG in the national capital region, is in talks to finalise a partner for the metering unit. “We are in the advanced stage of talks,” he said without elaborating.The company will invest Rs 50 crore in plant and machinery and the remaining in land and building.Ranganathan said city gas demand is likely to grow 10 per cent in the near future and IGL is planning an investment of Rs 1,100 crore next fiscal, mostly in setting up of CNG dispensing stations and laying piped gas lines to households and industries.The company will have 559 CNG stations by the end of the month and it plans to add another 60 in the next fiscal (April to March), he said adding IGL gave 2.8-3 lakh PNG connections in the current financial year and the same pace will be maintained in the next.
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In Kochi, CNG buses losing charm with private bus operators
The private bus operators who were planning to convert their diesel buses to CNG powered vehicles are now not keen to go ahead with their plans.
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The reason? Diesel price has decreased, making the option of converting to CNG less attractive, as price gap between the two fuels has come down below Rs 10. “CNG looks attractive when diesel prices are high. Bus operators will be willing to change to CNG only if there is a difference of at least Rs 15 as it will be profitable for them. Otherwise, they will not be keen to convert,” said TJ Raju, president of Kochi Metropolitan Transport Cooperative Society Ltd (KMTC), adding that the government should take efforts to combat falling CNG prices. While private bus operators are willing to convert BS2 buses to CNG, they are not interested in converting BS3 vehicles, Raju added. “That means, buses up to 2010 models can be converted,” he said. He expressed the opinion that CNG buses will begin services in the city by March 31. The first bus, which was converted to CNG in New Delhi and brought to Kochi, is currently being used as a demo bus. Though all relevant documents of the bus have been submitted for approval, Raju said that he is yet to receive it. The plan was to introduce at least 400 such buses in the city. It costs Rs 3-3.5 lakh for converting a bus running on diesel to a CNG-fuelled bus. A Delhi-based private company has also expressed interest in opening a unit in Kalamassery for converting diesel buses to CNG operated buses. The representative of the firm said that they have submitted applications before RTO for setting up the workshop. “Apart from the private buses, there are school buses and buses operated by various institutions. There will be a good clientele in Kochi,” said a representative of the firm. Meanwhile, transport secretary KR Jyothilal said that there are conversion kits approved by Automotive Research Association of India (ARAI). The International Centre for Automotive Technology (ICAT) also certifies CNG conversion. “There are approved kits and authorised workshops. After conversion, the vehicle owners will have to get the entry changed in RC book as CNG from diesel. There are no other hindrances,” he said. However, on a question whether the price benefits of CNG will be passed on to the commuters, the bus operators said that it would not be possible. The commuters will have to pay the same rates applicable to diesel buses. Meanwhile, the Ernakulam Auto Rickshaw Drivers Co-operative Society said that the main obstacle they face is the lack of charging facilities for e-autorickshaws. Around 200 e-autos are expected to arrive in the city during March-April. “The local body and other transport agencies should take the initiative to provide sufficient charging points,” said MB Syamanthabhadran, representative of the society. The auto drivers said that they have to pay a rent of Rs 350 for using these vehicles. They charge commuters a minimum fare of Rs 40 and if passengers are willing to share the fare, each one of them will have to shell out Rs 10 for travelling 2km distance.
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Gas/ Pipelines/ Company News
GAIL’s new gas transportation arm may get IOC pipeline asset
Government has proposed to create a larger and stronger gas transportation utility joining the entire pipeline infrastructure of GAIL and some of the infrastructure set up by other central and state PSUs –
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Indian Oil Corporation (IOC) and Assam Gas Company.The oil ministry has moved a cabinet note for unbundling marketing and transportation operations of gas in the country, a move that would end up splitting GAIL, which owns most of nation’s natural gas transportation network. While the gas transportation operation of GAIL under this split would come under the PSUs 100 per cent subsidiary, sources said that government is now looking to strengthen the new unit by adding pipeline infrastructure created by other PSUs such as IOC, Assam Gas and some bit by ONGC. The official said while integrating pipeline operations of other PSUs with the new GAIL subsidiary, care would taken that only that infrastructure that supports transportation of gas to far flung areas and areas connected to user industries are integrated. Other pipeline infrastructure, critical to operations of PSUs and meant to be used as their feeder would not be touched. Thus a petroleum product pipeline of PSU such as IOC may not to merged with GAIL.
Also, GAIL will have to pay the book value for the existing natural gas pipelines that it integrates with its own infrastructure. At the going rate of around Rs 4crores for a kilometre of pipeline, GAIL may end up spending about Rs 2000 crore for taking up 500 km long pipelines. However, actual acquisition would be worked out later subject commercial deals between companies.Government splitting GAIL as it is required for a uniform and competitive gas market. The PSU currently has the monopoly both in terms of marketing and transportation of gas. This creates conflict of interest and affects discovery of competitive gas pricing.Also, a gas hub is being conceptualised and this would be effective only if all players have equal access to import terminals as well as pipelines. A well-functioning gas hub can ultimately end price control in the country where domestic gas prices are decided every six months on a government-set formula.
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Last date for oil and gas blocks bidding postponed to April 16
The government has pushed back the last date of bidding for the 11 oil and gas blocks offered in the 5th bid round by a month to April 16, the DGH said on Monday.
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The 5th bid round under Open Acreage Licensing Policy (OALP) opened in January and was to close on March 18. “Bid closing date for the India OALP Bid Round – V is now 16 April 2020,” the Directorate General of Hydrocarbons (DGH) said in a tweet. It did not give reasons for the postponement.So far, the government has awarded 94 blocks in the last two and a half years. These 94 blocks cover an exploratory area of about 1,36,800 square kilometers over 16 Indian Sedimentary Basins. In the latest bid round, about 19,800 sq km of area is on offer for bidding, according to the DGH. The last bid round saw just eight bids coming in for seven blocks on offer. State-owned Oil and Natural Gas Corporation (ONGC) walked away with all the seven oil and gas blocks on offer. Also Read – India’s manufacturing activity eases marginally in Feb: PMI OALP-IV was the first round on revamped terms approved in February 2019. Unlike previous rounds where blocks were awarded to companies offering a maximum share of oil and gas to the government, blocks in little or unexplored Category-II and III basins are now awarded to companies, offering to do maximum exploration programme. The 11 blocks under OALP Round-V are spread across 8 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). At the time of the launch of OALP-V, the DGH had stated that the round is expected to “generate immediate exploration work commitment of around $400-450 million”. “An area of 1,36,800sq km has already been awarded under OALP Bid Round I, II, III and IV. These OALP Bid Round-V Blocks would add further 19,800 sq km. Overall Exploration Acreage of India would then increase to 2,36,600 sq km,” it had said at that time. Under OALP, companies are allowed to carve out areas they want to explore oil and gas in. Companies can put in an expression of interest for any area throughout the year but such interests are accumulated thrice in a year. The areas sought are then put on auction. The fifth cycle of submitting EoIs closed on November 30, 2019, and was followed by the sixth cycle that began on December 1, 2019, and will last till March 31, 2020. It would be followed by the 7th cycle from April 1, 2020, till July 31, 2020. Of the 94 blocks awarded in the first four rounds of OALP, Vedanta has won the maximum at 51. Oil India Ltd has got 21 blocks and ONGC another 17. All 11 blocks in OALP-V are based on Expressions of Interest received during EoI Window-V from May 16, 2019, to November 30, 2019, according to the DGH.
https://www.millenniumpost.in/business/rupee-plunges-52-paise-403762?infinitescroll=1
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ONGC has begun work on mega east coast project in Krishna Godavari block
Oil and Natural Gas Corporation Ltd (ONGC) has tested the first deep-water well at its largest block in the Krishna Godavari basin, said Rajesh Kakkar, director (offshore) of the state-run company.
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The KG-DWN-98/2 block in the Bay of Bengal is one of ONGC’s biggest projects, with plans to invest up to $5 billion during the life of the asset that is expected to play a strategic role in India’s energy transition.India’s emerging green economy is reordering the country’s energy mix to meet its global climate change commitments. These sources include a combination of solar, wind, ultra super critical coal fuelled projects, gas based plants and nuclear power projects.“Liquid fuel, gas will be the mainstay beyond 2040 because of mobility and many such issues,” Kakkar said.India, the world’s fourth-largest importer of LNG, is expanding its portfolio with domestic companies having inked long-term LNG contracts totaling 22 MMTPA. India consumes around 145 MMSCMD of gas.According to analysts, the epidemic has also brought good tidings for the city gas distribution (CGD) sector.“The viability of ₹50,000 crore capital expenditure planned in the city gas distribution space over the next four years has improved with the price of LNG expected to be subdued during the period. LNG accounts for nearly half of CGD consumption volume and a lower price augurs well for both volumes and operating margins of distributors, and consequently, project returns,” Crisil wrote in a report on Wednesday (Mar 5).“Spot prices of LNG have more than halved on-year to a decadal low of less than $3 per mmBtu in February 2020 because of oversupply and more recently, the Coronavirus outbreak. That has sharply improved the competitiveness of piped natural gas (PNG) compared with furnace oil, liquefied petroleum gas (LPG) and gasoline, prices of which are typically linked to crude oil,” the report added.
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Policy Matters/ Gas Pricing/Others
Gas price cuts on the way
The prices are expected to fall to about $2.5 per MMBtu for a period of six month from $3.23. The slump in global gas prices is likely to result in the domestic natural gas price dropping more than 20%
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from April 1, which is expected to boost demand and increase consumption, including of city gas.The price of gas from difficult fields is also likely to be cut to $5.50 per MMBtu from $8.43 per MMBtu.Analysts said data indicated the gas price at US benchmark Henry Hub has fallen below $2 per MMBtu, the lowest since 2016.In Europe, the benchmark contract for the Dutch gas hub dropped below $3 per MMBtu to its lowest in more than a decade.Natural gas prices are set every six months — in April 1 and October — based on average rates in gas-surplus nations such as the US, Russia and Canada.he rate is calculated by taking a weighted average price at Henry Hub of the US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia, with a lag of one quarter.The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG) and should translate into a reduction in retail prices. It would also mean lower feedstock cost for power generation and the manufacturing of fertilisers.However, this could impact the revenue of state-owned PSUs such as ONGC and Oil India, which produce 83 per cent of the domestic gas. Other producers such as Reliance Industries, Vedanta and Hindustan Oil Exploration Company would also see their revenue go down.ONGC’s revenue and earnings from the gas business will fall around Rs 3,000 crore because of the price cut, according to some estimates.The government is keen to push the green fuel through the expansion of gas pipelines. It also plans to unbundle state-owned GAIL India’s pipeline business into a separate entity to increase competition.The government had recently approved viability gap funding for a gas grid in the northeast which will be implemented by a consortium comprising GAIL and other state-owned firms.
https://www.telegraphindia.com/business/gas-price-cuts-on-way/cid/1752156
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IEX launches trading platform Indian Gas Exchange; norms yet to be framed
India’s leading power trading platform Indian Energy Exchange (IEX) launched its natural gas trading platform last week.Called the Indian Gas Exchange (IGX),
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it is now looking for trader members and gas buyers. This even as the Petroleum and Natural Gas Regulatory Board (PNGRB) is yet to come out with guidelines for gas trading.IGX would offer spot and forward contracts at Dahej, Hazira and Kakinada. While Petronet LNG Ltd (PLL) operates an LNG terminal at Dahej, Shell operates another one at Hazira. Kakinada is the landfall point for natural gas being produced from the Krishna Godavari basin.IGX will be offering a spot contract for the day ahead market, which means gas will be physically delivered the next day. The forward contract is for daily, weekly, monthly and fortnightly markets.Currently, LNG is not regulated both in terms of supply contracts and pricing while domestic gas prices are notified by the government. Supply contracts for gas produced by government-owned companies are dictated by government norms.Senior executives said this was planned keeping in mind the growth potential of the gas market. “Gas market in India is poised for a break outgrowth of 2.5 times, from 166 to 380 MMSCMD by 2030. With conducive policies, the share of natural gas in India’s energy basket could double to 15 per cent,” said a company executive.While the current government has been vocal about having a gas trading hub for the past three years, regulations are yet to be framed.PNGRB is yet to take a call on IEX’s plans. A PNGRB official indicated that they were in the process of coming up with regulations on the gas hub and gas trading guidelines will take shape only later.GAIL and Oil and Natural Gas Corporation (ONGC) were expected to take equity in the planned gas exchange, which would have helped create a natural gas trading hub.A GAIL official said the company was not against the IEX move so far. “It is a free world. But one has to see the legal validity of such an institution as the regulations by PNGRB are yet not out,” said a GAIL official.The government needs to take a call on whether gas produced out of domestic fields allotted on nomination basis and currently given on priority to notified sectors will be traded.In a presentation to investors, IGX said an exchange would help in increasing volumes and infrastructure utilization of terminals and pipelines.”Even small industries can use the exchange to procure gas at competitive prices. This will also help in revival of gas-based power plants. Exchange can provide gas at competitive rates for grid balancing purpose in upcoming high renewable energy scenario,” said the presentation. Peak power from gas and hydro is needed to balance the power grid with a rising share of intermittent renewable.IGX is also looking at the fertiliser industry and city gas distributors as buyers on their platform.
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IEX launches trading platform Indian Gas Exchange; norms yet to be framed
India’s leading power trading platform Indian Energy Exchange (IEX) launched its natural gas trading platform last week.Called the Indian Gas Exchange (IGX), it is now looking for trader members and gas buyers.
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This even as the Petroleum and Natural Gas Regulatory Board (PNGRB) is yet to come out with guidelines for gas trading.IGX would offer spot and forward contracts at Dahej, Hazira and Kakinada. While Petronet LNG Ltd (PLL) operates an LNG terminal at Dahej, Shell operates another one at Hazira. Kakinada is the landfall point for natural gas being produced from the Krishna Godavari basin.IGX will be offering a spot contract for the day ahead market, which means gas will be physically delivered the next day. The forward contract is for daily, weekly, monthly and fortnightly markets.Currently, LNG is not regulated both in terms of supply contracts and pricing while domestic gas prices are notified by the government. Supply contracts for gas produced by government-owned companies are dictated by government norms.Senior executives said this was planned keeping in mind the growth potential of the gas market. “Gas market in India is poised for a break outgrowth of 2.5 times, from 166 to 380 MMSCMD by 2030. With conducive policies, the share of natural gas in India’s energy basket could double to 15 per cent,” said a company executive.While the current government has been vocal about having a gas trading hub for the past three years, regulations are yet to be framed.PNGRB is yet to take a call on IEX’s plans. A PNGRB official indicated that they were in the process of coming up with regulations on the gas hub and gas trading guidelines will take shape only later.GAIL and Oil and Natural Gas Corporation (ONGC) were expected to take equity in the planned gas exchange, which would have helped create a natural gas trading hub.A GAIL official said the company was not against the IEX move so far. “It is a free world. But one has to see the legal validity of such an institution as the regulations by PNGRB are yet not out,” said a GAIL official.The government needs to take a call on whether gas produced out of domestic fields allotted on nomination basis and currently given on priority to notified sectors will be traded.In a presentation to investors, IGX said an exchange would help in increasing volumes and infrastructure utilization of terminals and pipelines.”Even small industries can use the exchange to procure gas at competitive prices. This will also help in revival of gas-based power plants. Exchange can provide gas at competitive rates for grid balancing purpose in upcoming high renewable energy scenario,” said the presentation. Peak power from gas and hydro is needed to balance the power grid with a rising share of intermittent renewable.IGX is also looking at the fertiliser industry and city gas distributors as buyers on their platform.
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Analyst Corner: Gail India – Recent correction offers opportunity to ‘buy’
Our interaction with Gail management provided comfort on progress on East India gas grid, placement of high-priced contracted LNG volumes and plausible regulatory overhaul of gas pipeline tariffs.
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Near-term clarity on AGR liability, which is untenable in Gail’s opinion, will be crucial for the stock. Sustained lower crude prices may pose downside risk to estimates; however, inexpensive valuations reflect all concerns. Recent sharp correction offers opportunity to ‘buy’.Our visit to a few construction sites around Durgapur region, organized by Gail, suggests that the physical progress of Jagdishpur-Haldia pipeline remains on track to complete in phases by December 2020. The section connecting Matix fertilizer plant will be commissioned in a month. Gail management indicated that work on Bokaro-Dhamra and Barauni-Guwahati sections is also progressing well and is expected to complete by December 2020 and 2021, respectively, which will mark the full commissioning of PradhanMantriUrja Ganga project.The work on Northeast network under Indradhanush Gas Grid, a JV between Gail, IoCL, ONGC and NRL, is expected to start soon post-recent government approval of 60% viability gap funding. Gail management allayed recurring concerns on placement of high-priced contracted LNG volumes amid lower spot LNG prices. The company has already placed 90%+ of long-term LNG volumes for CY2020 and 70%+ for CY2021 through adequately priced or hedged contracts.Further, the company has tied up medium-term contracts to supply ~2 mtpa of LNG volumes to four fertilizer plants, which are somewhat indifferent to LNG pricing as it is a pass-through under urea subsidy scheme – Matix fertilizer plant will get connected in a month and can off-take up to 2.5 mcm/d (1.5 mcm/d contracted) of LNG volumes and three urea plants in Barauni, Gorakhpur and Sindri are expected to commission over the next 12-15 months along East India gas grid and will off-take 6-7 mcm/d of LNG volumes under medium-term contracts.
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No green nod for gas, oil digs in Tamil Nadu since 2015: Centre
The Union government on Friday (Mar6) said environmental clearances were granted to 18 oil and gas exploration projects in the country between 2015 and 2019, but none in Tamil Nadu.
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This includes 14 new projects sanctioned in Assam, Andhra Pradesh, Mizoram, Maharashtra, Gujarat and Madhya Pradesh, according to Union minister for environment, forests and climate change PrakashJavadekar.He was responding to DMK MP A Ganeshamurthi, who sought to know the on-shore and off-shore oil and gas exploration projects permitted across the country. On the member’s query on whether the government exempted drilling, including the activity in the Cauvery delta, from the requirement of environmental clearance and environment impact assessment, Javadekar said in the normal scheme of things, any project proponent would have to apply to the State Environmental Impact Assessment Authority (SEIAA) and the authority would take a final call on the matter.“The final decision as to whether to allow any project in any particular region would continue to vest with the state government. Further, such projects are also required to obtain consent under Air and Water Acts from the state pollution control boards,” Javadekar said. In the midst of protests in various parts of Tamil Nadu, the environment ministry in January recategorized the on-shore and off-shore oil and gas exploration projects or activities from category A to category B2. All projects in respect of on-shore and off-shore oil and gas exploration have been brought under B2 and would not require environment impact assessment and public consultation.The minister said the recategorization has been done on the ground that exploratory drilling was a temporary activity and would be completed in three to four months without having any permanent establishment or set up at the exploratory site. https://energy.economictimes.indiatimes.com/news/oil-and-gas/no-green-nod-for-gas-oil-digs-in-tamil-nadu-since-2015-centre/74521275
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LNG Development and Shipping
Rising US LNG supply will make natural gas affordable in India: FERC
Rising US LNG supply and the efficiency of its producers and transporters will make natural gas affordable for India, the chief of US energy regulator has said. “Law of supply
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and demand, more US gas contributing to the global supply, I am optimistic will bring down the cost of gas globally. The efficiency of the US industry when it comes to production, transportation, I am hopeful that the cost of gas will come down to where it will be affordable for India,” said Neil Chatterjee, chairman of the Federal Energy Regulatory Commission, who is on a visit to India, meeting his counterparts and other energy officials. The shale revolution of the past decade has resulted in massive cheap supplies of natural gas in the US, reshaped the global industry and made the US world’s top producer and a key exporter of the fuel. India has some contracts for US LNG but high transportation costs make it expensive for Indian customers. India c half of the gas it uses. The imports are expected to rise as the government aims to expand the share of natural gas mix to 15% by 2030 from the current 6%. The US is increasing its foothold in the LNG export space, and a recent fall in the LNG rates to record lows has not interest in setting up new LNG export facilities in the US, Chatterjee said. “All the signals I see from domestic partic international allies, people continue to be bullish about the prospects for US LNG,” he said. A wider adoption of natural gas in the electricity sector is becoming a big support for increased deployment of renew Chatterjee said.
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Natural Gas / Transnational Pipelines/ Others
EU accepts Transgaz offers to ease natural gas exports from Romania
The European Commission said on Friday it had accepted the commitments of Romanian gas pipeline operator Transgaz to boost natural gas exports particularly to Hungary and Bulgaria.
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The European Commission, which oversees competition policy in the 27 member European Union, opened a probe in June 2017 into concerns Transgaz may be hindering gas exports by underinvesting in infrastructure or through tariffs.Transgaz had however committed to make available capacity at interconnection points.”This will promote the free flow of gas at competitive prices in South Eastern Europe and is a further step towards a single European energy market,” the EU antitrust chief MargretheVestager said in a statement.Romania is the third largest natural gas producer in the bloc, behind the Netherlands and Britain. (Reporting by Marine Strauss @StraussMarine; editing by Philip Blenkinsop)
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OMV, Gazprom delay Siberian gas asset deal
Austrian oil and gas group OMV said on Friday (Mar 6) it had agreed with Gazprom that they would give each other more time for negotiations before sealing the planned purchase of Siberian gas assets.
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The Austrian group had agreed in summer to pay 905 million euros ($1 billion) for 24.98% of Gazprom’s Achimov IV and V phase development at the Urengoy gas fields. The closing of the deal was initially planned for end-2019.The two companies now aim to sign the final transaction documents by June 2022, OMV said in a statement.”In these negotiations, material developments and changed circumstances until signing thereof… are to be taken into account by the parties in good faith, in particular in relation to the economic effective date and the purchase price,” the statement said. The negotiations were “non-exclusive”.That could give both companies the chance to renegotiate the price and OMV more time before it has to pay and before it starts operating the fields. ($1 = 0.8829 euros) (Reporting by Kirsti Knolle Editing by Michelle Martin)
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IHS CERAWeek global energy conference canceled due to coronavirus threat
The deepening global crisis over the coronavirus outbreak caused the organizers of the annual IHS CERAWeek energy conference in Houston to cancel the event Sunday (March 1).
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With concern mounting in recent days about the spread of the deadly respiratory illness that was first observed in China in late December, IHS Markit said it had no choice but to cancel. Due to travel restrictions, delegates from China had already been not expected to attend.The first-ever cancellation of the conference — which since 1983 has brought together a veritable who’s who of the energy world from OPEC oil ministers to government leaders to the chief executives of major natural gas, LNG, petrochemicals and power companies — could spur another hit to oil futures when Asian markets open Monday.”The World Health Organization raised the threat level on Friday, the US government canceled a summit meeting scheduled in Las Vegas, an increasing number of companies are instituting travel bans and restrictions, border health checks are becoming more restrictive and there is growing concern about large conferences with people coming from different parts of the world,” IHS Markit said in a statement. “Our number one concern is the health and safety of delegates and speakers, our partners, our colleagues and vendors. We have spent the last several weeks focused on this question, established a medical partnership with Houston Methodist Hospital, have been in continuing dialogue with experts on infectious disease, and established an extensive protocol. But the spread of COVID-19 is moving quickly around the world.”Bob McNally, president of Rapidan Energy Group, said the cancellation is symbolically important but minor compared with the possible cancellation of the OPEC+ meeting in Vienna, still set for Thursday and Friday (Mar 6 & 7).”Were that meeting and the expected large incremental cut to be canceled, [the hit] to prices would be much greater at least until OPEC+ announced a cut in the absence of a formal meeting. But for now OPEC+ seems to be going on,” he said.Crude oil futures settled at 14-month lows Friday as the continued global spread of coronavirus fed fears of flattening demand and raised the specter of economic downturn. ICE April Brent settled $1.66 lower at $50.52/b. NYMEX April WTI was $2.33 lower at $44.76/b.After five straight declining sessions, front-month Brent and WTI were down about 14% and 16%, respectively.S&P Global Platts Analytics has adjusted its 2020 global oil demand growth outlook down to 860,000 b/d, marking the weakest forecast since 2011.
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CNPC’s daily natural gas sales rebound to 500 mln cubic metres
The coronavirus outbreak, which has killed 2,943 and infected more than 80,000 in mainland China, has severely disrupted travel and production at factories.
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China National Petroleum Corp (CNPC) said that daily natural gas sales has rebounded to 500 million cubic metres from 460 million cubic metres on Feb.14 as demand improves.The coronavirus outbreak, which has killed 2,943 and infected more than 80,000 in mainland China, has severely disrupted travel and production at factories.The oil giant said it has also cut oil throughput by 20% in February amid the virus outbreak in order to reduce increasing inventory pressure, the company said in a statement on Tuesday (Feb25).CNPC did not reveal the timeframe of the crude run cuts nor its current refining utilisation level.
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Bulgaria agrees deal to cut price of Russian gas imports by 40%
Bulgaria has agreed a 40% cut in the price of natural gas it imports under its long-term import contract with Russia, its dominant gas supplier, Prime Minister BoykoBorissov said
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Tuesday (Mar 3).Bulgaria, which relies on Russian imports for more than 80% of its natural gas needs, is the last of eight eastern European countries to agree on a price cut after Brussels sealed an anti-trust agreement with Russia’s gas giant Gazprom in 2018. But Borissov argued it has been the biggest.“This morning Gazprom sent us the signed contract, which has the biggest price cut from all the countries that renegotiated their contracts. We have a 40% decrease,” Prime Minister BoykoBorissov told reporters.Under the deal with Brussels, Gazprom agreed to allow its customers to ask for lower prices when these diverge from benchmarks such as those in Western European gas markets.The new price will be valid from August and was achieved after Gazprom agreed to link a significant part of the price to the ones on European gas hubs.Bulgaria imports 2.9 billion cubic meters of gas from Russia per year under a long-term contract valid through 2022.The negotiations have been long and difficult and were helped by the European Commission, said Nikolai Pavlov, the head of state-owned gas company Bulgargaz.The price cut was agreed after Sofia imported 0.5 billion cubic meters of liquefied natural gas (LNG), including from the U.S. for the first time last year.Sofia has stepped up building a gas link with neighboring Greece, through which it plans to import mainly Azeri gas, and agreed to buy a 20% stake in a new LNG terminal in northern Greece.The substantial price cut also reflected Bulgaria’s willingness to speed up the construction of the extension of the TurkStream natural gas pipeline project, which transmits Russian natural gas to Turkey and Europe under the Black Sea, through its territory, industry officials said.
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Natural Gas price prediction – Prices move higher and continue to search for a bottom
Natural gas prices moved higher on Friday( Mar 13)and settled up nearly 10% for the week. This comes despite a smaller than expected draw in natural gas inventories and
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warmer than normal weather that is scheduled to cover most of the northeast. Inventories are 11% lower than the 5-year average for this time of year, but prices are nearly 29% below the 5-year average price for this time of year. US LNG exports declined week of week which reflects slowing export demand. Natural gas prices moved higher on Friday, bouncing from support near the 10-day moving average at 1.82. Resistance is seen near the March highs at $2 per MMBtu. Momentum is flat to neutral. The fast stochastic has whipsawed making consecutive buy and sell signals which point to consolidation. Medium-term momentum is neutral as the MACD histogram is printing in the black with a flattening trajectory which points to consolidation. US liquefied natural gas exports decrease week over week. Fourteen LNG vessels with a combined LNG-carrying capacity of 51 Bcf departed the United States between March 5 and March 11, 2020, according to shipping data compiled by the EIA. One vessel was loading at the Cameron terminal on Wednesday.
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Global LNG Development
Global LNG-Asian spot prices edge higher as supply tightens
Prices of Asian spot liquefied natural gas (LNG) edged up this week as supply for cargoes to be delivered in April tightened, but traders expected prices to remain low for a while as demand continued to be weak
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amid the coronavirus outbreak.The average LNG price for April delivery into northeast Asia LNG-AS is estimated at about $3.20 per MMBtu, 20 cents higher from the previous week, but still near record low prices, several traders said.Prices for cargoes delivered in May are estimated to be at the same level as April, they added.“Supply for April has more or less dried up as U.S. cargoes are unable to make it to Asia,” a Singapore-based trader said.Low spot prices was also attracting buying interest from South Korean and Indian firms, traders added.Still, market sentiment was bearish after PetroChina declared force majeure on natural gas imports including on piped gas and LNG, sources said this week.PetroChina meets 40% of its total gas needs through imports and about 70% of imports are through piped gas from central Asia, Myanmar and Russia, while the rest are through LNG, one of the sources said.“The supply cuts will fall on suppliers proportionately but LNG suppliers will have a lesser impact versus those on piped gas,” said one of the sources with direct knowledge of the situation.It was not immediately clear what volumes PetroChina had declared force majeure on or the time period the notice covers.“China has been hit with a double whammy of industrial slowdown and also the end of the heating season, so this is going to bring the demand down for gas sharply,” a trading source said.Still, the low spot price attracted buying interest from South Korea and India, as well as a buyer in China.China’s Guangzhou Gas is seeking two cargoes for delivery over second-half of April and first half of May, while India’s GSPC was seeking six cargoes for delivery over March to November through two separate tenders, sources said.South Korea’s POSCO bought a cargo at about $3.20 per MMBtu, industry sources said. Meanwhile, price agency S&P Global Platts said on Thursday it had facilitated a first trade for the Japan-Korea-Marker (JKM) derivatives in its pricing process also known as market-on-close (MOC).Commodities trader Trafigura bid for 5 lots of April JKM at $3.45 per MMBtu to which trader Vitol eventually sold, Ciaran Roe, head of LNG pricing at S&P Global Platts, told Reuters.
Source: LNG Global
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PetroChina suspends some gas contracts as coronavirus hits demand: sources
PetroChina has suspended some natural gas imports, including on LNG shipments and on gas imported via pipelines, as a seasonal plunge in demand adds to the impact on consumption from the coronavirus outbreak.
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The company issued the force majeure notice to suppliers of piped gas and also to at least one LNG supplier, though details of the force majeure notice could not immediately be confirmed.PetroChina, China’s top gas producer and piped gas supplier, did not immediately respond to requests for comment.A spokesman for state firm KazTransGas which handles gas exports had no immediate comment while Gazprom could not immediately be reached for comment.A spokesman for Uzbekistan state energy firm Uzbekneftegaz had no immediate comment. Turkmenistan’s gas exporter Turkmenneftegaz could not immediately be reached for comment.A Turkmen government source said he was not aware of the force majeure. “If this is the case, we hope this measure will be short-term and will not affect long-term, strategic and mutually beneficial Turkmen-Chinese partnership in the gas sector”.China is one of the world’s top gas and LNG importers, so any cancellation of purchase is expected to have a big impact on prices, traders said.PetroChina meets 40% of its total gas needs through imports and about 70% of imports are through piped gas from central Asia, Myanmar and Russia while the rest are through LNG, one of the sources said.“The supply cuts will fall on suppliers proportionately but LNG suppliers will have a lesser impact versus those on piped gas,” said one of the sources with direct knowledge of the situation.It was not immediately clear what volumes PetroChina had declared force majeure on or the time period the notice covers.But one major LNG supplier to the Chinese company told Reuters that PetroChina had requested some cargoes be deferred to the third quarter instead.For piped gas, PetroChina will likely ask for a cut in daily nominations, the first source said.PetroChina has long-term LNG import contracts with QatarGas, Gorgon LNG in Australia, U.S. firm Cheniere Energy, Papua New Guinea LNG plant as well as an equity stake in Russia’s Yamal project in the Arctic where it lifts cargoes from.China’s Sinopec also supplies PetroChina during the colder months from mid-November to mid-March under a state-mandated “inter-connected” supply scheme.The source said senior PetroChina officials recently spoke on phone with Qatari energy officials explaining the demand situation, during which Qatar had pledged to cooperate as much as possible.“PetroChina has done its best over the past month to mitigate the virus impact, including diverting cargoes to India and Singapore, and tried not to issue such a notice,” the source said.“But unlike CNOOC (which sent a notice earlier) which may see demand slowing recovering, PetroChina is grappling with a sharp seasonal demand fall from mid-March (for piped gas) when the heating season ends.”
Source: LNG Global
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Train2 of Cameron LNG begins commercial operations
Sempra LNG announced today the second train at Cameron LNG has started commercial operations under Cameron LNG’s tolling agreements. Cameron LNG is located in Hackberry, Louisiana.
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Train 3 for the project is currently on track to start initial LNG production in the second quarter of 2020. Plans call for commercial operations for Train 3 to begin in the third quarter of 2020. The first liquefaction train at Cameron LNG began commercial operations in August 2019.”We are excited that our first liquefaction project is nearing completion and we couldn’t be more pleased that Cameron LNG is already contributing to position the U.S. as one of the top LNG-producing countries in the world,” said Lisa Glatch, chief operating officer of Sempra LNG and board chair for Cameron LNG. “We are looking forward to achieving commercial operations of the third and final train of Phase 1 while maintaining the same remarkable safety record the project has achieved thus far.”Phase 1 of the Cameron LNG export project includes the first three liquefaction trains that will have an export capacity of approximately 12 MMTPA of LNG. Cameron LNG is jointly owned by affiliates of Sempra LNG, Total, Mitsui & Co., Ltd., and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK). Sempra Energy indirectly owns 50.2% of Cameron LNG.
Sempra Energy is also developing four other LNG export projects in North America, including Cameron LNG Phase 2, which could include up to two additional liquefaction trains and up to two additional LNG storage tanks; Port Arthur LNG in Texas; and Energía Costa Azul LNG Phase 1 and Phase 2 in Mexico.
Source: LNG Global
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Sinking gas threatens to halt LNG plants from U.S. to Malaysia
Liquefied natural gas projects are on the cusp of having to halt output as mild winter weather and the coronavirus cut into demand for the fuel.Prices for the super-cooled fuel are near a record low
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as an inventory glut built up during what’s usually a season of peak demand. That, according to analysts and industry researchers, threatens to make LNG producing plants unprofitable from the U.S. to Malaysia.“We see the U.S. projects struggling,” said Carlos Torres Diaz, senior vice-president and head of gas and power markets at Rystad Energy, said in an interview in London. “We see coal-bed methane projects in eastern Australia struggling.”The warmest winter on record in the Northern Hemisphere has left storage tanks full at a time they’re usually nearly empty. While demand slumped, capacity to make the fuel is set to extend the record build-out of the last decade, growing 28 MMT this year, according to Rystad, a Norwegian research company.Spot Asian LNG dropped to record low levels of below $3 per MMBtu earlier this month. That stabilized as consumers including India started to buy.If prices continue to be below $3 per MMBtu, there is a risk of production output declines at plants including Freeport and Cameron in the U.S. and Santos Ltd.’s GLNG in Australia, according to his research. At $2, many more would be threatened.Cuts by exporters in Middle East, Russia, and Africa are unlikely because they also produce liquids such as oil condensate or oil as a byproduct, which improves economics and reduces break-even costs, Torres Diaz said.Producers and traders are closely watching who will blink first and cut output. Vitol Group chief executive officer Russell Hardy said at the IP Week conference in London that levels are now close to where it doesn’t make sense to bring U.S. exports to the market.Two cargoes from Cheniere Energy Inc.’s plants in Louisiana and Texas for April have already been canceled, though they may be sold back to the market, chief executive officer Jack Fusco said last week.Malaysia’s Petroliam Nasional Bhd is considering to lower output from its Bintulu LNG export facility in Malaysia, according to people with knowledge of the matter.Some producers, such as Egypt, may get saved by selling the gas into their domestic markets instead, said Steve Hill, an executive vice president at Royal Dutch Shell plc, said recently. Curbs are a “credible scenario” for a number of producers this summer, he said.Indonesia may also have to continue export reductions already seen last year, said Sarah Behbehani, senior vice president of LNG at Jera Global Markets in Singapore.As the coronavirus is causing havoc in markets from oil to stocks, Rystad Energy slashed its global price outlook for LNG this year by about a third for Asia and Europe. China will probably consume only 62 MMT this year, compared with an earlier forecast of 67 MMT and the impact will also be felt in 2021.Traders should think twice at dumping more cargoes in Europe as storage levels will be at a record throughout this year and remain above average for the next heating season, according to Rystad.There are no incentives to withdraw gas from storage sites due to mild weather and cheap LNG, Torres Diaz said. Lower European demand for injections this summer will offset the boost in power generation demand from lower gas prices.“While there is still some potential for coal-to-gas switching in Europe, there is less demand for injections, so gas demand in Europe in 2020 should be flat year on year,” he said.
https://www.jwnenergy.com/article/2020/3/sinking-gas-threatens-halt-lng-plants-us-malaysia/
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Plan to raise LNG output progressing well: Qatar minister
HE the Minister of State for Energy Affairs Saad bin Sherida al- Kaabi confirmed on Sunday that the pace of work in implementing the project to increase Qatar’s production of liquefied gas
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from 77 MMTPA to 126 MMTPA by 2027 is going well, denying media reports that there has been a delay in the project for several months.Regarding the effects of the Coronavirus 2019 (COVID-19) on LNG shipments for Qatar Petroleum customers and its subsidiaries, the minister clarified, in statements on the sidelines of the General Assembly of Industries Qatar Company, that the coronavirus is a global issue and what happens in the delivery of gas shipments globally occurs with Qatar Petroleum as well.HE al-Kaabi also stressed that Qatar Petroleum cooperates with its customers in a manner that provides them with their needs and provides them with support in all forms, which is something that Qatar always does.HE al-Kaabi, also the President and CEO of Qatar Petroleum, had said new studies have revealed that the North Field’s productive layers extended well into Qatari land in RasLaffan, paving the way for a new LNG production project in the north of Qatar.He had announced that the confirmed gas reserves of the North Field exceed 1,760tn cu ft, in addition to more than 70bn barrels of condensates, and massive quantities of LPG, ethane, and helium.
https://www.gulf-times.com/story/657328/Plan-to-raise-LNG-output-progressing-well-minister
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Cryopeak LNG completes largest truck delivery in North America to mine in British Columbia
Cryopeak is an LNG distributor in Canada and the US and provides fuel for power generation, industrial heat, and pipeline supply.Cryopeak LNG Solutions,
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a small-scale liquefied natural gas supplier, said it completed the largest ever North American delivery of LNG by truck and trailer to a mine in the Canadian province of British Columbia.The shipment of LNG to the Silvertip Mine, owned by Coeur Silvertip Holdings, totalled about 18,000 gallons and was carried in Cryopeak’s “Super B-Train” truck.Mining companies in BC and elsewhere in Canada are turning to LNG as a source of gas-fired power to replace diesel fuel.The province of British Columbia has lagged in developing high volume LNG export plants but is a North American leader in truck-supplied LNG to remote areas and in LNG-powered-ferry services around Vancouver.The Silvertip mine is located in BC, just below the Yukon border. Yukon is the smallest and westernmost of Canada’s three territories and was the base for the 19th-century Klondike gold rush.Cryopeak said its Super B-Train is designed to have up to 70 percent greater load capacity than standard trailers operating in Canada, improving LNG’s competitiveness as a fuel source for remote mining location and communities.Calum McClure, Chief Executive of Cryopeak, said lowering LNG costs through maximising transportation payload is an important initiative for Cryopeak and its customers.The company uses its ISO 9001 certified tank and has emergency response plans approved by Transport Canada.Cryopeak was founded in 2012 and is a portfolio company of BP Energy Partners.
Source: LNG Journal
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Pakistan to get LNG from Qatar on low price
Pakistan will get Liquefied Natural Gas (LNG) from Qatar at low price in next few days which will likely be fixed around six dollars per MMBtu.
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It is because former prime ministerShahidKhaqanAbbasi had inked written agreement with Qatar and according to it Qatar will be legally bound to provide LNG to Pakistan on par with 13 percent price of crude oil internationally. Now the price of crude oil has decreased from 49 dollars to 35 dollars per barrel across the world due to mutual oil price competition between Saudi Arabia and Russia.
https://www.thenews.com.pk/print/627560-pakistan-to-get-lng-from-qatar-on-low-price
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Natural Gas / LNG Utilization
U.S. industry asks EPA to issue more incentives for natural gas trucks
Natural Gas Vehicles for America (NGVAmerica), the Coalition for Renewable Natural Gas, the American Public Gas Association, and the California Natural Gas Vehicle Coalition submitted joint comments to the
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U.S. Environmental Protection Agency (EPA), urging it to consider developing strong incentives for medium and heavy duty natural gas vehicles as part of the agency’s Cleaner Truck Initiative. EPA unveiled its initial plans for the program in an Advance Notice of Proposed Rulemaking published in January. That notice did not include regulatory text but requested input on future emission standards and incentives for cleaner trucks.“Our joint comments supported EPA’s effort to promote the development and deployment of lower emission motor vehicles. In many places in the U.S., medium and heavy duty trucks and buses are the most significant contributors to ozone pollution and smog. We urged EPA to recognize the potential benefits of deploying cleaner natural gas trucks and buses as part of its effort and highlighted that fact nearly all current generation natural gas engines already meet much lower NOx standards. In this regulatory undertaking, the primary focus is on lowering the standard for NOx while also addressing real-world emissions and certification test cycles,” the coalitions said.“Given that natural gas vehicles are available today that meets these standards and are likely to have a significant emission advantage for many years to come, we urged EPA to include strong regulatory incentives in its program to reward manufactures that are selling lower emitting engines today. We also highlighted a number of federal grant programs such as the Diesel Emission Reduction Program Act and the Congestion Mitigation and Air Quality Improvement Program (CMAQ) that could be modified to provide enhanced incentives for low-NOx trucks and buses. In addition, we also encouraged the Administration to work with the Congress to consider support for extending the alternative fuel tax credit for natural gas and fixing the harmful excise tax on new trucks that penalizes cleaner trucks. These are just a few of the suggested changes we recommended,” they added.
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Spanish businessmen and officials support transition to NGV mobility
CEIM (ConfederaciónEmpresarial de Madrid-CEOE), NEDGIA (Naturgy gas distributor) and the Madrid Chamber of Commerce organized the conference “Natural gas mobility.
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The sustainable alternative for business,” was attended by more than a hundred professionals. The meeting served to address the need to move towards natural gas/biomethane and review the offer of vehicles, refueling infrastructure and available aids, in addition to listening to the experiences of various companies that are already betting on sustainable NGV mobility.During the inauguration, the president of CEIM Miguel Garrido stressed the importance of coordination between public administrations and the sectors involved when planning initiatives that affect business activity. “It is essential to conduct studies and reports of previous economic impact and competitiveness,” he said.For his part, the delegate of Environment and Mobility of the Madrid City Council BorjaCarabante highlighted: “Cities have the great challenge of achieving sustainable mobility and making it compatible with the environment, mobility needs and economic development. With the Madrid 360 Environmental Sustainability Strategy, we will combine these variables to achieve compliance with the European directive on air quality.”The Minister of Economy, Employment and Competitiveness of the Community of Madrid Manuel Giménez pointed out the importance of supporting efficient technologies for sustainability, such as natural gas. “For sustainable mobility there are no shortcuts, no technology can be privileged, nor can the most efficient, which is natural gas, be relegated,” he said.
The head of National Accounts of Great Consumption of NEDGIA Miguel Martín was in charge of moderating a round table in which the advantages of this alternative mobility were exposed, such as its contribution to the improvement of air quality, the reduction of noise pollution and a cost per kilometer lower than traditional fuels. This session included speakers from the Iberian association Gasnam, the European Consortium ECO-GATE and Gas&GO.
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Pricing, infrastructure imbalance worsening Nigeria’s CNG investments deficit –NIPCO
Inappropriate pricing, infrastructure shortages and absence of a regulatory agency are partly responsible for investment deficit in Nigeria’s Compressed Natural Gas (CNG) industry.Managing Director, NIPCO Gas limited, Sanjay Teotia,
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who declared this during a media tour of some of NIPCO’s facilities in parts of Benin City, the Edo State capital, noted that the development of CNG, which is also being used to fuel vehicles for profitability and environmental friendliness is also being hampered by lack of accessibility to land.A statement by the Assistant General Manager, NIPCO Plc, Mr. LawalTaofeek, quoted Teotia as expressing regret that with the enormous gas reserves in the country, the potentials in the sector have not being fully utilised to the benefit of the people.Nigeria, Teotia said, would continue to miss the gains of the deposit of such gas reserves if the challenges are not resolved. “He however lauded the Federal Government’s National Gas Expansion Programme Committee, which was recently inaugurated by the Minister of State for Petroleum Resources, Chief Timpre Silva, and chaired by Mohammed Ibrahim to steer the gas sector for optimal performance is a welcome development.”The setting up of the committee, the Nipco Gas Ltd MD said, was very apt and a clear indication of the genuine resolve of the present administration’s resolve to tackle challenges that bedevil the sector and to pave the way for better utilisation of the nation’s massive gas resources in the overall interest of stakeholders.According to him, the company, which got its license to operate in 2007, has seven gas stations in Benin alone, with other stations in Lagos and Delta States, adding that NIPCO has laid 51km gas pipeline in Benin to distribute CNG to the seven stations in the city.
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Liverpool now operates UK’s largest eco-friendly refuse truck fleet
The UK’s biggest eco-friendly fleet of refuse vehicles is about to hit the streets of Liverpool. Powered by biomethane, the 20 strong fleet will help to radically cut Liverpool City Council’s CO2 footprint.
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Producing 80% fewer CO2 emissions and 90% less NOx than the previous diesel vehicles, each new truck will cover more than 150,000 miles a year. The vehicles each have a Mercedes-Benz Econic chassis with Faun ZoellerVariopress body, a load capacity of up to 10.5 tons and a rear steering axle to easily maneuver narrow streets.The new CNG vehicles are part of a drive to improve the collection and recycling of household waste across the city to help reach a target of recycling more than 55% of waste. Liverpool Streetscene Services Ltd (LSSL), a subsidiary of Liverpool City Council, has invested £3.4 million in the new trucks, which will help reduce fuel costs by 35% compared to like-for-like diesel vehicles. A CNG station has also been installed at LSSL’s refuse collection depot.“This investment in a new fleet of refuse vehicles is a great statement of intent in our goal to make Liverpool a cleaner and greener city. The council inherited a tired and run down fleet which was inefficient, unreliable and costly. Having a brand new refuse fleet that is bigger, more efficient and safer gives our collection teams the right tools to ensure residents receive a more reliable service,” said Mayor of Liverpool Joe Anderson.“Liverpool City Council, and LSSL are a valued client to us. We have enjoyed an excellent relationship with the team at Liverpool over a number of years, and to have been able to assist in the integration of CNG into the fleet has been a valuable experience. It is great to work with such forward thinking Local Authorities, and we are already in discussions with options for the future. Collectively we are now in a position to advise our clients who are looking at alternative fuels to diesel,” commented Faun Zoeller Commercial Director, Stewart Gregory.
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Almost 500 natural gas buses already operational in Bogotá transit system
As of March 2, 130 new bi-articulated buses began serving TransMilenio to improve the capacity of the service and to continue fulfilling the goal of protecting the environment.
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The Scania vehicles, with CNG engines and Euro VI particulate matter emission standard, are part of the renewal of phase I and II, a process that will allow a 95% reduction in emissions of particulate matter in comparison to the old fleet.With this delivery, Bogotá already has 481 buses with Euro VI CNG technology, which also represents a 65% advance in the introduction of the 741 scheduled natural gas buses. On the other hand, with this recent entry a total of 1,075 new buses were already incorporated into TransMilenio, of the 1,441 vehicles (964 bi-articulated and 477 articulated) that will renew the fleet with low emission technology.In addition, the new 130 bi-articulated buses can carry 250 passengers per trip, unlike the articulated ones that carry 160 passengers, so their arrival represents a 41% increase in the capacity of the system.These buses will be part of Patio Américas, and therefore, Somos K (transport operator) starts from now on the process of scrapping of the 171 old buses that completed their cycle after 16 years of service.Once the arrival of the 1,441 new buses is completed, the TransMilenio system will go from providing 1.8% of particulate matter from the city’s mobile sources to 0.4%.
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Natural gas vehicle registrations increase 124% in Spain
February closed with 758 new registrations of CNG and LNG vehicles, which represents an increase of 124% compared to the same period in 2019. Registrations have increased in
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all segments, both in light (such as passenger cars and vans) and heavy vehicles (such as trucks and buses). 528 new CNG cars have been registered, 142% more than in February 2019, 146 CNG vans (+121%), 60 CNG and LNG trucks (+40%) and 24 CNG buses (+118%). Registrations in Spain increase along the same lines as in all Europe, where there were more than 87,000 new natural gas vehicles registered in 2019, according to data from NGVA Europe. The increase in registrations is accompanied by the growth of the refueling infrastructure. So far this year, four new filling station have been opened in Spain, for a total of 80 CNG and 50 LNG facilities. To analyze this extremely positive scenario for natural gas and sustainable transport in the region, and evaluate the latest in alternative fuel technologies for clean mobility, AltFuels Iberia 2020 will be held on 28-30 October at IFEMA Trade Fair Center in Madrid. For more information about this Business Fair and Sustainable Energy Congress for road and marine transport, please contact info@altfuelsiberia.com.
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LNG as a Marine Fuel/Shipping
Balearia begins the conversion to natural gas of the Sicilia ferry
Baleària began the retrofitting of its Sicilia ferry so that it can navigate on LNG. The conversion will be ready in June it is expected to become the company’s sixth LNG-powered ship
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after the Bahama Mama, which will finalize its conversion at the end of March and will begin operating on the Barcelona-Ibiza route. In addition, both vessels will be the first in the fleet to feature sensors for real-time measurement of consumption and emissions.During the conversion works of the Sicilia, which are carried out in the Portuguese West Sea shipyard (in Viana do Castelo), the ship’s engines and engine room will be adapted for natural gas propulsion, and a natural gas storage tank will be installed. This LNG storage tank has a capacity for 425 cubic meters, allowing a range of about 1,100 miles. The installation will be done in an inner deck, so that part of several decks must be cut in order to place the tank and then close them again.The use of LNG is a strategic commitment of Baleària, which responds to criteria of social responsibility and economic profitability. It should be remembered that Baleària will invest a total of about 380 million euros in this natural gas powered fleet, and that part of the conversion is co-financed through the CEF funds of the European Union.Due to its environmental and economic benefits, LNG has experienced great growth as a marine fuel in the Iberian Peninsula. To analyze this extremely positive scenario for natural gas both in road and maritime transport, and evaluate the latest in alternative fuel technologies and sustainable mobility, AltFuels Iberia 2020 will be held on 28-30 October at IFEMA Trade Fair Center in Madrid. For more information, please contact info@altfuelsiberia.com.
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Tatarstan& Gazprom will build first LNG-fueled passenger ship in Russia
The keel-laying ceremony for Chaika LNG, the first passenger ship in Russia to be powered by LNG, was held at the shipyard of Zelenodolsk Plant named after A.M. Gorky in Zelenodolsk,
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Republic of Tatarstan. The leisure and sightseeing boat is intended for passenger voyages, including via tourist routes. The vessel, which can accommodate at least 170 people, is expected to be launched as early as this year.The event was attended by a Gazprom delegation headed by VyacheslavMikhalenko, Member of the Management Committee; RustamMinnikhanov, President of the Republic of Tatarstan; and YuryKostin, Director of the Department of State Policy for Maritime and River Transport at the Ministry of Transport of the Russian Federation, among other authorities.The use of LNG in river and maritime transport is a new segment of the natural gas powered mobility market. Today, LNG is the most promising fuel for waterborne transport and the most affordable alternative to bunker fuel oil and diesel fuel.
Moreover, the Republic of Tatarstan offers a unique location from a logistics standpoint, and it has robust transport potential in terms of cutting-edge industrial technologies. It is planned that the region will produce LNG-powered tourist ships and Gazprom will be responsible for refueling said ships.Mikhalenko and Minnikhanov also held a meeting in Zelenodolsk on the development of the natural gas refueling network in the Republic of Tatarstan. It was noted that the number of refueling units in the region has doubled to 20 since 2016, including the CNG station built in Almetyevsk in late 2019. The amount of natural gas consumed as a vehicle fuel is growing in Tatarstan: in 2019, consumer sales of gas went up by 39% from 2018 and by 70% from 2017.This year, Gazprom plans to build two new CNG stations in Zainsk and Nurlat, as well as to renovate and upgrade a CNG station in Buinsk. The company is considering the possibility of constructing a number of other refueling units in Tatarstan. Meanwhile, efforts are underway to set up infrastructure for LNG production and refueling of road and waterborne transport.
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GTT takes over smart shipping firm Marorka
Gaztransport and Technigaz (GTT), the French technology firm for designs of systems for the maritime transportation and storage of liquefied natural gas, has acquired
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Marorka, a smart-shipping company based in Iceland with services sought by the LNG industry.GTT said it bought Marorka from its owners and management team for an undisclosed sum.“The company designs maritime energy monitoring and optimization systems for vessels, allowing them to reduce their environmental footprint,” said Paris-based GTT.“The company’s systems have been installed on more than 600 vessels,” it added.GTT noted that the shipping industry had started its environmental transition in January 2020, when a new International Maritime Organization regulation entered into force, imposing significant reductions in sulphur-oxide emissions.The IMO has furthermore announced a long-term “low-carbon” strategy, including ambitious decarbonisation targets.“In addition to using LNG as a marine fuel, achieving those objectives will necessarily require smart software technologies and operational data analysis,” explained GTT.GTT said that Marorka has had more than 17 years of experience and developed a recognized technical platform and value-added applications.
GTT said Marorka was a good technical, commercial and geographical complement to Ascenz, GTT’s subsidiary based in Singapore, and represented a new milestone in the Group’s digital strategy.
Source: LNG Journal
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Korean Shipbuilders confident of landing mega order for LNG carriers from Qatar
Korean and Chinese shipbuilders are competing for a mega order from Qatar for 80 units of LNG tankers worth more than 18 trillion won. Yet Korean shipbuilders are confident
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they can win the order as they are technologically superior to their Chinese rivals in the LNG tanker sector.Three Korean shipbuilders — Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering — and Hudong-Zhounghua Shipbuilding of China, have submitted proposals to Qatar Gas, a subsidiary of Qatar National Petroleum Co. Japan’s Kawasaki Heavy Industries withdrew from the race.Industry watchers expect Qatar Gas to place an order for LNG carriers between the second quarter of this year and the end of this year. The order volume is expected to reach 80 units, with 40 confirmed units and 40 optional units. The total order value is estimated at US$15 billion. The vessels will be delivered between 2023 and 2027 in accordance with Qatar’s LNG project schedule. Qatar is the world’s No. 1 LNG producer. It has not made major new investments in LNG since 2004. However, as strengthened environmental standards around the world, including China and Europe, sparked off a spike in demand for LNG, the company has begun to expand production facilities and is preparing to order LNG carriers.Domestic and foreign shipbuilding experts expect that the three Korean shipbuilders will compete among themselves for the mega deal. This is because the Korean shipbuilders’ technological excellence is globally recognized. They won more than 90 percent of LNG carrier orders in 2019. They also landed the entire order for 53 LNG carriers from Qatar in 2004.The Korean shipbuilders are also expected to benefit from the fact that the only foreign competitor, Hudong-Zhounghua Shipbuilding, built a ship that had a big problem in stability. An LNG carrier built by the Chinese shipbuilder in 2018 was retired in 19 months after launch due to a major engine failure. “In 2018 and 2019, Korean shipbuilders hogged 97 percent of LNG carrier orders, and Chinese shipbuilders took only 3 percent,” said researcher Bae Se-jin of Hyundai Motor Securities. “Considering that two out of three orders received by Chinese shipbuilders came from Chinese clients, Korean shipbuilders are highly likely to continue dominating the LNG tanker market.”Korean shipbuilders’ LNG carrier technology is rated the world’s best. In particular, the Korean shipbuilders are unrivaled in terms of full re-liquefaction system (FRS) technology, which re-liquidates natural gas evaporating from a cargo hold during the operation of the LNG carrier and puts it back to the cargo hold.”While the average price of a bulk ship is US$25 million, that of an LNG tanker is US$200 million per ship,” said an official of the shipbuilding industry. “Winning LNG tanker orders will give a much-needed boost to the Korean shipbuilding industry.”
Source: LNG Global
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Indiana’s largest biogas plant opens, will supply LNG to Midwest fleets
Kinetrex Energy, EDL and South Side Landfill celebrated the completion of the Indy High BTU plant at the Indianapolis South Side Landfill. The plant, which will be fully operational March 20,
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will convert landfill methane gas into approximately 8 million gallons of pipeline-quality renewable natural gas each year, and in the process, reduce greenhouse gas air emissions in Central Indiana, develop a local renewable resource and lower fuel costs. Indy High BTU is the largest biomethane plant in Indiana. “This is an exciting day for our city,” said Indianapolis Mayor Joe Hogsett. “We are pleased to see Kinetrex Energy, a homegrown-Indianapolis company, spearheading the effort to provide cleaner, renewable fuel for transportation across the Midwest.”With construction now complete, Indy High BTU will begin supplying Kinetrex Energy with renewable natural gas, which Kinetrex will turn into LNG and sell to Midwest transportation fleets. Kinetrex recently announced a six-year agreement with UPS to supply the global shipping company with up to 52.5 million gallons of LNG for its Class 8, LNG-powered fleets in Chicago, Toledo, Columbus, St. Louis and Indianapolis.“South Side Landfill has been proactively capturing gas at the landfill for commercial use for more than 30 years, and this is the latest step in reducing emissions to make our city safer and healthier for our residents,” commented South Side Landfill President Mike Balkema. “We are excited to harness the full potential of renewable natural gas to help decarbonize the transportation industry,” added EDL Head of North American Operations, Central Region, Jim Grant.
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New biomethane production project under development in Canada
Xebec Adsorption Inc. and Bähler Biogas Inc. have signed an agreement to develop an integrated facility to process various organic wastes for the production of biomethane and biofertilizer.
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The plant, located in Québec, Canada, is expected to be commissioned in early 2021.This facility will process over 45,000 metric tons of organic waste per year through an anaerobic digestion process. This process will produce biogas that is upgraded into renewable natural gas by a turnkey biogas upgrading equipment package supplied by Xebec. The facility will contribute to the circular economy in Québec, producing over 150,000 gigajoule (GJ) of biomethane. The project will sell its biomethane under a 20-year off-take agreement at a fixed rate per GJ.
The project’s capital expenditures of approximately $28.0 million will be financed through a combination of equity from its development partners, non-recourse debt and a potential grant from Québec’s PTMOBC program (Programme de Traitement des MatièresOrganiques par Biométhanisation et Compostage), for which an application has been filed with the Québec Government.“We are proud to team up with a strategic partner like Xebec to build this state-of-the-art industrial facility and lead the market for a true total life cycle solution for waste valorization,” said Claude-Bernard Levesque, CEO, BählerBiogaz Inc.“It is great to finally see our first BOO (Build, Own, Operate) project move forward. It showcases how local partners can come together to create a community-based sustainable waste solution for a true circular economy. Renewable natural gas presents a unique opportunity to both divert organic waste from landfills and produce a valuable source of clean energy to displace fossil natural gas and create a biofertilizer for farmers,” commented Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
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LNG-fueled truck fleet will transport liquid helium in Russia next year
Alexey Miller, Chairman of the Gazprom Management Committee, and Sergey Chemezov, Director General of the state-owned Rostec Corporation, recently met to review the
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potential areas of cooperation between both companies, including the transportation of liquid helium with LNG-powered trucks, from the Amur Gas Processing Plant (GPP) for the purpose of exporting it via the Logistics Center in the Primorye Territory.Gazprom GazenergosetGeliy, Gazprom GazomotornoyeToplivo, and KAMAZ (part of Rostec) signed a cooperation agreement in the presence of Miller and Chemezov. According to the document, Gazprom GazenergosetGeliy (the company authorized to implement the Helium Tank Logistics Center investment project) will purchase vehicles powered by natural gas to transport liquid helium.Batch production of these trucks will be carried out at the facilities of KAMAZ. The infrastructure for producing LNG and refueling the trucks will be set up by Gazprom GazomotornoyeToplivo.As a follow-up to the Agreement, Gazprom GazenergosetGeliy and KAMAZ signed an action plan (roadmap). The first 18 LNG-powered trucks that will transport helium in special thermally-insulated containers are expected to be delivered in 2021.
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Hydrogen-CNG buses likely to hit Delhi roads from next month
Starting next month, buses running on Hydrogen-enriched CNG (HCNG) are likely to hit the capital’s roads. A four-tonne per day compact reformer-based HCNG production plant has come up at DTC’s
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Rajghat-1 bus depot and is likely to start operations from next month. HCNG, which is a cleaner fuel compared to CNG, will be used to run 50 Cluster scheme buses as part of a pilot project for six months. The Supreme Court had last year suggested looking at hydrogen-run vehicles as a solution for NCR’s poor air quality and while the technology will take some time to appear in the capital, HCNG could be a step in that direction. “The plant is ready and is awaiting approval from the Petroleum Explosive Safety Organisation, which comes under the Union ministry of commerce, and approves all gas stations and filling stations,” an official associated with the project said. “The buses that will be run on HCNG would just require some tuning and no major retrofitting,” he added. In July, Indian Oil Corporation Limited — which has developed the technology to create HCNG — and Indraprastha Gas Limited had laid the foundation stone the plant. According to IOCL, the use of compact reforming process is 30% more cost effective as compared to the physical blending of Hydrogen with CNG. It was, in fact, a directive of the apex court in July 2018 that led to IOCL and IGL collaborating to put up this first semicommercial plant as a pilot project for conducting the study on the use of HCNG fuel in 50 BS-IV compliant CNG-run buses in Delhi. Mixing hydrogen with CNG physically is a difficult proposition and that is why IOCL came up with the compact reforming process, which reforms CNG with no need for mixing. For the pilot project, 50 buses of the Anthony Road Transport Ltd (a cluster scheme concessionaire) will be fed with HCNG and their efficiency and emissions would be recorded for six months run and then submitted to the Supreme Court. Four tonne of HCNG would be produced at the plant every day and the excess fuel generated would be used to run a generator, which would produce electricity
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World’s first hydrogen-fueled train successfully tested in Netherlands
Alstom has performed 10 days of tests of the Coradia iLint hydrogen fuel cell train on the 65 kilometers of line between Groningen and Leeuwarden in the north of the Netherlands.
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The tests follow 18 successful months of passenger service on the Buxtehude–Bremervörde–Bremerhaven–Cuxhaven line in Germany, where total of 41 Coradia iLint have already been ordered. The latest tests make the Netherlands the second country in Europe where the train has proven itself a unique emissions-free solution for non-electrified lines. Last October, Alstom and the Province of Groningen, local operator Arriva, the Dutch railway infrastructure manager ProRail and the energy company Engie signed a pilot project agreement to test the world’s first passenger train powered by hydrogen fuel cells in the Netherlands. DEKRA, an independent testing inspection and certification company, has been appointed test leader. This series of tests is being performed at night at up to 140 km/h without passengers. For the purpose of the tests, a mobile filling station has been erected by Engie for refueling the Coradia iLint with completely green hydrogen. The Coradia iLint is the world’s first regional passenger train to enter service equipped with fuel cells to convert hydrogen and oxygen into electricity, thus eliminating pollutant emissions related to propulsion. The completely train is quiet, and its only emission is water. Purpose-built for use on non-electrified lines, it provides clean, sustainable traction with no sacrifice in performance. It has a range of approximately 1,000 kilometers – the same as equivalent-size diesel multiple units. The train is developed and produced by the Alstom teams in Salzgitter, Germany and Tarbes, France. The Dutch railway network has approximatively 1,000 kilometers of non-electrified line on which around 100 diesel trains currently operate daily.
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