NGS’ NG/LNG SNAPSHOT – December 2020, VOLUME 2
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
Minister Pradhan celebrates first CNG mobile refueling unit in India
Union Minister of Petroleum and Natural Gas & Steel Shri Dharmendra Pradhan inaugurated Maharashtra Natural Gas Limited’s (MNGL) five new natural gas fueling stations through video conference,
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which takes the company’s CNG stations to 100. The minister also presented the start of civil work at an LNG/CNG station in Pathardi (Maharashtra), CNG supply to buses in Nashik, and CNG distribution through a new mobile refueling unit in Pune, which will be the first of its kind in India. Speaking on the occasion, Shri Pradhan said that India is committed to achieve 15% share of natural gas in the primary energy mix by 2030 for a more sustainable energy use. This will help reduce environmental pollution, fulfil commitment to COP-21 climate change conference. He explained that greater use of natural gas will reduce dependence on fossil fuel and consequently reduce import bill. “Our energy transition roadmap will drive self-reliance and create large-scale employment,” he added. “MNGL has taken pioneering initiative of placing mobile refueling unit for the first time in the country,” commented the minister. Shri Pradhan also mentioned that foundation stone for India’s first 50 LNG stations spread across golden quadrilateral and all major national highways was laid recently. He said that the push on CNG/LNG infrastructure will bring investment in OEM sector, CGD equipment manufacture and transport sector, and will lead to creation of employment.
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Torrent Gas in pact with Tamil Nadu to invest Rs 5,000 cr on city gas distribution infra
Torrent Gas was earlier authorised by Petroleum and Natural Gas Regulatory Board (PNGRB) to provide Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Chennai and Thiruvallur districts in the state.
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Torrent Gas has signed an agreement with the government of Tamil Nadu, committing to invest Rs 5,000 crores for the development of city gas distribution infrastructure in the state. Torrent Gas was earlier authorised by Petroleum and Natural Gas Regulatory Board (PNGRB) to provide Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Chennai and Thiruvallur districts in the state. “This investment of Rs 5,000 Crores by Torrent Gas in development of CGD infrastructure is expected to have a major impact on the socio-economic development of the region by attracting fresh investment in the state which requires availability of natural gas as a prerequisite, improving the competitiveness of existing industries using natural gas and increased savings for families and small businesses using CNG and natural gas. The investment will also provide direct and indirect employment to more than 5,000 people,” Jinal Mehta, director, Torrent Gas, was quoted as saying in a statement. Torrent Gas will be laying pipelines and other requisite infrastructure in Chennai and Thiruvallur districts over an area of 3,569 square kilometers to provide PNG connections to homes, industries and commercial establishments and CNG to vehicles. As part of the first phase of the infrastructure roll-out, the company aims to commission over 30 CNG stations in Chennai and Thiruvallur districts in the last quarter of the current financial year. Torrent Gas has recently commissioned the first CNG station at Nagapattinam in Tamil Nadu and started the work of laying the pipelines.
In an interview to ET in October, Mehta had said that the Ahmedabad-headquartered Torrent Group aims to hit the capital markets with an initial public offering of its gas utilities business, Torrent Gas, by financial year 2023-24.
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Clean fuel must for NCR units: Central Pollution Control Board
Central Pollution Control Board (CPCB) has directed Delhi Pollution Control Committee (DPCC) and state pollution control boards of Uttar Pradesh,
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Rajasthan and Haryana to allow only those new industrial units that use cleaner fuels in Delhi-NCR. The decision has been taken considering the deteriorating air quality. CPCB in its order to chairmen of DPCC, Uttar Pradesh Pollution Control Board, Rajasthan Pollution Control Board and Haryana Pollution Control Board said: “Considering the fact that already directions have been issued to all the existing industries in Delhi-NCR to switch over to cleaner fuels, it has been decided that only those new industrial units will be allowed to set up in Delhi-NCR, which use cleaner fuels, including natural gas (CNG/PNG), liquefied petroleum gas, biogas, propane and butane.” CPCB has asked the pollution control boards and the committee to exercise their powers conferred under Section 18 (1)(b) of Air (Prevention and Control of Pollution) Act, 1981. It has also sought an action taken report within 30 days. A DPCC official said, “Delhi government modified rules in 2018 under which only those industries will be given consent by DPCC that use cleaner fuels. Nearly 65-70 units in Delhi are in the process of converting to cleaner fuels while 20 other units in two industrial units are waiting for cleaner gas supply.” During a meeting of high-level taskforce in December 2018, CPCB had decided that all industries in Delhi-NCR where gas supply was available should switch to PNG. CPCB in July 2019 had asked DPCC and SPCBs of NCR-Delhi to close down all industrial units in Delhi-NCR where PNG supply was available and industry had not shifted to PNG. However, after receiving a number of representations from industry associations expressing concerns on cost viability and time period needed for such conversion, CPCB told state pollution control boards of Rajasthan, Uttar Pradesh and Haryana that while their representations were being examined, coercive action might not be initiated at this stage against the industrial units in NCR, which otherwise were following the prescribed environment norms. In its order, CPCB said that industries located in 24 districts of Delhi, Uttar Pradesh, Haryana and Rajasthan had been discharging environmental pollutants directly or indirectly into the ambient air.
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Government to roll out 50 CNG buses in Jan
In a bid to fight air pollution, the state transport department will roll out 50 CNG buses and 12 new pumps in Patna in January. The routes on which the new buses will ply have not been decided yet.
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At present the Bihar State Road Transport Corporation runs 20 buses converted from diesel to CNG on the Bailey Road, Danapur and Phulwarisharif routes. Transport department secretary Sanjay Kumar Agarwal told TOI on Thursday, “The new CNG buses, which are highly efficient and economical, will help curb air pollution.” He added that low-floor CNG buses like the ones in Delhi were likely to be introduced in Patna. The department has also decided to either convert all the diesel-run autorickshaws into CNG or replace them with new ones. Patna has nearly 5,000 CNG-based autos at present. “With a view to ensuring that CNG is easily available, 12 more pumps are being set up in Patna,” Agarwal said. CNG supply began after the inauguration of the Patna City Gas Distribution network by Prime Minister Narendra Modi in Begusarai on February 17, 2019. According to officials, efforts to run eco-friendly vehicles are being taken to control the city’s pollution levels. Patna is one of the most polluted cities in the world, a major reason for which is vehicular emissions. In 2018, the Bihar State Pollution Control Board had released an action plan that envisaged use of cleaner fuels like CNG.
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GAIL to soon open 3 CNG Outlets in Muzaffarpur, Bihar
Beside Patna, Gaya, and Bhagalpur, Muzaffarpur is one of the most polluted cities in Bihar. Not Just in Bihar only, Muzaffarpur is one of the most polluted cities in the world.
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Due to rising pollution, the city has a growing number of asthma, tuberculosis, and allergies patients. There are numerous reasons for rising pollution in the city, but vehicle emission is the primary one. Seems like that is why the state transport department has decided to operate CNG powered vehicles in the city. From June next year, Muzaffarpur to start operating vehicles with Compressed Natural Gas i.e. CNG. To achieve the same, the state transport department has partnered with the GAIL. It is said, GAIL to soon open 3 CNG outlets at three places in the city. The Principal Secretary of State Transport Department, Sanjay Aggrawal has asked the District Transport Officer to mark locations for opening these outlets. The District Transport officer, on the other hand, has marked three locations where these outlets could be opened. These three locations are, the first one is in Bariya, the second one is in between the Imlichatti to Station Road, and the third one is in between Pakkisarai to Jail Chowk. The city has already banned the registration of new diesel vehicles and once these CNG outlets starts operating in the city, it will be mandatory to run commercial vehicles like cab and taxis with CNG only. In addition of selling the CNG powered vehicles, these CNG outlets will also refill the CNG powered vehicles. Patna has already started operating the CNG powered vehicles and now it’s time for Muzaffarpur and Bhagalpur to do the same.
https://www.muzcorner.in/2020/12/gail-open-3-cng-outlet-muzaffarpur.html
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Confidence Petroleum hits 52-week high on securing MRU for CNG distribution
The company is confident about implementing this concept in various states in India with the association of PSU oil companies and Gas Distribution companies like BPCL,
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GAIL and others. Confidence Petroleum share price touched a 52-week high of Rs 31, rising over 12 percent intraday on December 1 after the company got its first Mobile Refueling Unit (MRU) for distribution of CNG. MNGL, a Joint venture of BPCL, GAIL & Maharashtra Government, the City Gas Distribution Company involved in the distribution of CNG & PNG in Pune city has awarded Confidence Petroleum India Limited, the first MRU (Mobile Refueling Unit) for distribution of CNG in Pune city areas like Hinjewadi, Talegaon etc, company said in the release. The company is confident about implementing this concept in various states in India with the association of PSU oil companies and Gas Distribution companies like BPCL, GAIL and others, company added. At 14:45 hrs, Confidence Petroleum was quoting at Rs 31.15, up Rs 3.45, or 12.45 percent on the BSE.
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PNGRB source says Adani Gas deal to buy 3 city gas permits invalid
Adani Gas Ltd’s deal to acquire Jay Madhok Energy Pvt Ltd’s city gas licences for three geographical areas has been rendered invalid, at least in its current form,
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as the Petroleum and Natural Gas Regulatory Board today cancelled licences for two areas and transferred the permit for one to another company, a senior official with the regulator told Cogencis. On Nov 4, Adani Gas announced the signing of definitive agreements to acquire city gas permits for Kutch (East) in Gujarat and Ludhiana and Jalandhar in Punjab. The deal was announced even as Jay Madhok Energy had been served notices over defaulting on project timelines and alleged irregularities, including submission of doctored bank documents, in getting the licences, and the matter was being heard by the PNGRB. The regulator today ordered cancellation of licences for Kutch (East) and Ludhiana, and transfer of the licence for Jalandhar to Ishar Gas Jalandhar Pvt Ltd, which is also a part of the Jay Madhok group. “As far as the Adani Gas deal is concerned, it cannot go ahead now as two of the three licences have been cancelled and will only be offered in future CGD (city gas distribution) auction rounds. If they (Adani Gas) are interested in those two GAs (geographical areas), they will have to bid in the auction,” said the PNGRB official, who did not wish to be named. For Jalandhar, however, the PNGRB official said that Adani Gas can still acquire the licence from Ishar Gas Jalandhar, which would require the deal to be reworked and filing of fresh applications with the PNGRB. The official added that following today’s order, the regulator will not be considering Adani Gas’s pending application on acquisition of the three city gas licences. While announcing the deal last month, Adani Gas said that the three geographical areas have demand potential of more than 6.5 MMSCMD over a period of 10 years. The addition of these three areas would have resulted in Adani Gas becoming the city gas distributor in 22 geographical areas, apart from 19 areas where its joint venture with Indian Oil Corp Ltd sells compressed natural gas and piped gas. The licences had been cancelled once in 2016 as well, but the appellate tribunal set aside that order in 2017, asking the regulator to follow the established procedure for licence cancellation. In addition to earlier notices, the regulator in March 2019 sent more notices to Jay Madhok Energy for allegedly furnishing doctored financial and bank documents. Apart from cancelling the licenses for Ludhiana and Kutch (East), the PNGRB today also ordered immediate encashment of performance bank guarantees for the two geographical areas. The regulator also ordered “to levy a penalty…equivalent to 50% of PBG (performance bank guarantee) amount and immediate encashment of the performance bank guarantee to that extent…for Jalandhar GA”.
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OMCs re-think expansion in natural gas retailing
Country’s oil marketing companies which are betting big on retailing natural gas are going back to the drawing board as India’s gas regulator PNGRB has barred them from setting up compressed
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natural gas dispensing units in their fuel retail outlets. Currently, the oil marketing companies–Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have let out space in their fuel retailing stations for compressed natural gas supplies to city gas distribution companies including Mahanagar Gas Ltd and Indraprastha Gas Ltd. “Now we will have to strategize if there are other retail outlets that we can convert into CNG retailing units. Natural gas retailing is a crucial segment for oil companies and we will have to redraw our strategies,” said the CEO of an oil company which is also into city gas distribution business. Officials from IOCL, country’s largest oil marketing company said the company is closely monitoring the developments and is keen on increasing its presence in the city gas distribution segment. Along with its joint ventures, Indian Oil has presence in 40 geographical areas (GA) out of 228 authorized by PNGRB. Indian Oil targets to achieve its presence in 50 GAs by 2025 and 60 GAs by 2030. From 755 CNG stations at the end of FY 19-20 , IOC plans to add about 300 CNG stations during current FY. PNGRB’s final gazette notification on ‘Access Code for City or Local Natural Gas Distribution Networks Regulations, 2020’ released last week suggests that CNG stations anchored on petrol pumps will not be open to third party hiring. The biggest beneficiaries of this should be Mahanagar Gas Ltd (the firm that retails CNG in Mumbai) and Indraprastha Gas Ltd (Delhi) for whom CNG constitutes about 73 per cent of total volumes (OMC stations comprise 72 per cent and 57 per cent of their total CNG outlets, respectively). Analysts said this could also reduce the bargaining power of the OMCs which had recently sought a steep 90-100% hike in CNG commissions from the CGD companies. OMCs however, said that the rate of commission is being re-worked.
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Electric Mobility & Bio- Methane
Bengaluru to get five waste-to-energy plants to tackle garbage woes
In a bid to solve garbage-related issues in Bengaluru, civic body Bruhat Bengaluru Mahanagara Palike (BBMP) is set to establish five waste-to-energy power plants
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in public-private partnership (PPP) model in and around the city. According to Law and Parliamentary Affairs Minister J C Madhuswamy, the proposed plants include two in Mavallipura and one each in Kannahalli, Doddabidarakallu, and Marenahalli areas which would help in the disposal of around 5,000 tonnes of daily waste generated in Bengaluru. “Waste-to-energy plants will contribute towards scientific disposal of solid waste. These plants are expected to start generating power after two years,” Madhuswamy said. Earlier this month, Chief Minister B S Yediyurappa had laid the foundation stone for the first waste-to-energy power plant being set up in Bidadi, Ramanagara district in a virtual event. “This plant would generate 11.5 MW power using 600 MT processed waste, every day. This plant is being built at a cost of Rs 260 Crore, out of which, Rs 130 crore each is borne by Karnataka Power Corporation Limited and BBMP. The work will be completed in two years and this plant will use 25 per cent of mixed waste,” the CM had said. On the lines of the announcement, Madhuswamy said the 12 MW plant planned in Kanahalli would process 1,000 tonnes of garbage while another 4 MW plant in Doddabidarakallu would process 300 tonnes daily. The private firms that would partner in these projects are Satheram Enterprises and Indium respectively, he added. At the same time, BBMP has proposed to partner with Firmgreen Enterprises and NEG to establish two different plants at Mavallipura to process 1,500 tonnes of solid waste. While the former would process 1,000 tonnes alone to produce compressed natural gas (CNG), the other 8 MW plant is designed to process 500 tonnes of waste. The plant set up by a firm named Nexus Novus would process 600 tonnes of daily waste, Madhuswamy said.
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AP lays out plan to introduce 10 lakh EVs by 2024
All the 11,000-odd buses of the public sector AP State Road Transport Corporation will be converted into EVs by the year 2029. Andhra Pradesh plans to attract
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an investment of Rs 30,000 crore and create 60,000 jobs in the electric vehicles (EVs) manufacturing sector, even as the state government laid out a plan to introduce 10 lakh EVs by 2024. The state said it planned to develop a holistic research and development ecosystem, together with manufacturing units, to propel EV growth in AP. The state government presented its plans on EVs at a high-level (virtual) meeting convened by Niti Aayog on Tuesday (Dec 8). A Centre for Advanced Automotive Research, in collaboration with organisations like ISRO, IISER and IITs, to foster advance research in chemical, mechanical, electrical and electronics engineering will soon be set up to drive the new EV policy.
A Centre for Advancement of Smart Mobility has also been proposed in a 100-acre site (location yet to be identified) with a test track for all new EVs and autonomous vehicles. AP Transport Principal Secretary M T Krishna Babu, Industries Director J V N Subrahmanyam and senior officials represented the state at the meeting attended by Niti Aayog CEO Amitab Kant, Union Ministry of Road Transport and Highways Secretary A Giridhar and other top officials. The state government told Niti Aayog that it planned to phase out fossil fuel-based vehicles in the top four cities (Visakhapatnam, Vijayawada, Tirupati and Guntur) by 2024 and all cities by 2030. Plans were also afoot to install one lakh (EV) charging stations by 2024. The New and Renewable Energy Development Corporation of AP has entered into a memorandum of understanding with NTPC and EESL for development of charging infrastructure across the state, the officials told Niti Aayog. They requested that the Centre extend support in development of charging stations at prominent locations on National Highways. They also sought financial support from the Centre for retrofitting EV kits to two and three-wheelers. The AP government also sought the Centres financial support to set up swapping stations in the state. A top official, who attended the meeting, said all government vehicles in the state would be converted to EV by 2024. The state currently has a fleet of 9,001 battery electric vehicles (two-wheelers), 16,826 CNG and 971 BEV (three-wheelers), 8,208 BEV and 4,535 CNG (four-wheelers) and 313 CNG-run buses.
Source: ET Auto
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Clean energy is critical; important for India to get into cutting-age technology: Amitabh Kant
Niti Aayog CEO Amitabh Kant on Wednesday (Dec 9) said clean energy is critical for India and it is important for the country to get into cutting-age technology.
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Addressing a virtual book launch event organised by the Observer Research Foundation, Kant said India in the long run must become a manufacturer of solar products in India. “Clean energy, powered by clean technology, is critical for India. We need to get into a whole range of clean energy deployments… It is very important for India to get into cutting-age technology,” he said. Noting that clean technologies are becoming darling of investors, Kant said the solar industry should not only look at manufacturing for India but also for the rest of the world. “Indian start-ups and entrepreneurs must get into new areas of growth,” he noted. Kant added that the government has announced production-linked incentive (PLI) for automobile and solar energy sectors to make the country a manufacturing base of auto components and solar photovoltaic cells. The Niti Aayog CEO also noted that power distribution companies (discoms) need to be reformed and the government has also announced that all Union territories’ (UT) discoms will get privatised. “You need efficiency in discoms, you need to ensure theft in the power sector comes to zero level,” he said. Noting that the world would demand low-carbon products, Kant said, “Therefore, we have to move towards low-carbon industrialisation.” He said that in the next 2-3 decades, as the cost of battery falls, even the initial cost of ownership of electric vehicles will be cheaper than the combustion ones. “And, therefore, this huge revolution of electric mobility is inevitable,” he said. Also speaking at the event, ReNew Power Chairman and Managing Director Sumant Sinha said the government has taken steps to protect the renewable energy sector. Sinha, however, noted that the PLI scheme by itself is great, but a long-term roadmap for things like customs duty is required.
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ADB approves USD 2.5 mn technical assistance for advanced biofuel development in India
Multilateral lending agency Asian Development Bank (ADB) on Monday (Dec7) said it has approved a USD 2.5 million (about Rs 18 crore) technical assistance to support advanced biofuel development in India.
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The grant is funded from the Asia Clean Energy Fund, financed by the Government of Japan under the Clean Energy Financing Partnership Facility, and the Republic of Korea’s e-Asia and Knowledge Partnership Fund. In a statement, ADB said the technical assistance (TA) will support development of advanced bioethanol, bio-compressed natural gas, and biodiesel plants to demonstrate the best practices for suitable feedstock, efficient conversion technology, and sustainable biofuel value chain. It will also support incorporating gender main-streaming design in the feedstock value chain to promote the empowerment of rural women in agriculture. Using novel technology, advanced (or second-generation) biofuels could be produced from non-edible sources like agricultural residue, municipal solid waste, and used cooking oil. They can be used as bioethanol, biogas, and biodiesel for energy, transport, manufacturing, and medical purposes. The advanced biofuels can provide simultaneous solutions to address energy security, waste recycling, climate change, and air pollution reduction. “The ADB’s TA will help address these obstacles and prepare for advanced biofuels’ commercial application and large-scale production,” it said. ADB Finance Specialist for South Asia Jongmi Son said ADB supports the government of India’s National Policy on Biofuels established in 2018 to promote advanced biofuel market, which will harness waste, strengthen energy independence, create new industries and jobs, and mitigate global warming. To boost advanced biofuel investments, ADB will collaborate with the Ministry of Petroleum and Natural Gas, the Oil Industry Development Board, and public financial institutions, such as the Indian Renewable Energy Development Agency and the National Bank for Agriculture and Rural Development. ADB will also work with public oil companies, including the Indian Oil Corporation Limited and the Hindustan Petroleum Corporation Limited, it added.
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Nexon EV crosses 2000 units sales, says Tata Motors
After rolling out its 1000th Nexon EV in August this year, the company sold another 1000 units just in 3 months (Sept-Nov 2020). Tata Motors claims to have 74% market share in the electric passenger vehicle segment.
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Tata Motors said its electric SUV Nexon has crossed the 2,000 sales milestone in November 2020. In over 10 months since launch, the sales of Nexon EV reached 2,200 units, indicating the rising demand for EVs in the personal car segment, the company said in a press release. After rolling out its 1,000th Nexon EV in August this year, the company sold another 1,000 units just in 3 months (Sept-Nov 2020). Tata Motors now has 74% market share in the electric passenger vehicle segment, the release said. Shailesh Chandra, president – passenger vehicle business unit, Tata Motors, said, “This is a moment of great pride for us and those working with us in our journey to accelerate the adoption of EVs in India. Tata Nexon EV, since launch, has captured the imagination of the entire nation and has consistently led the way for the electric vehicle segment.” “Offering thrilling performance, connected drive experience with zero emissions and at an attractive pricing, Nexon EV has found widespread acceptance among its customers. This growing demand is on the back of increased awareness, growing charging infrastructure, encouraging government incentives, breaking myths that surrounds EVs, and most importantly the undisputed benefits like lower operating cost. Further, with the continued support from the government in terms of incentives such as benefits on registration and road tax, we hope that EVs will soon become the most desirable and a mainstream choice for the customers in India,” he said. Further, to accelerate the adoption of EVs in India, Tata Motors also introduced a holistic e-mobility ecosystem “Tata uniEVerse” to leverage the strengths and experience of other Tata Group companies to create a viable EV environment. Powered by Tata uniEVerse, consumers will have access to a suite of e-mobility offerings including charging solutions, innovative retail experiences and easy financing options.
Source: ET Auto
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Rs 12.5 lakh crore investment needed to realise India’s 2030 EV targets: Study
Indian electric vehicle (EV) market could be worth around Rs 14.42 lakh crore if the country were to achieve its 2030 EV ambitions but would need cumulative investment of about
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Rs 12.50 lakh crore for the same, according to a study by CEEW Centre for Energy Finance (CEEW-CEF). According to the study, an initiative of think tank Council on Energy, Environment and Water (CEEW), although at the end of March 2020 the total number of registered EVs in India stood at only half a million, the cumulative EV sales in all vehicle segments could cross over 100 million units by FY30, 200 times its current market size. The study also said realising India’s EV ambition would require an estimated annual battery capacity of 158 GWh by FY30, thereby presenting a massive market opportunity for domestic manufacturers. Citing NITI Aayog‘s target, the CEEW-CEF study said India’s 2030 EV ambition “states that 70% of all commercial cars, 30% of private cars, 40% of buses, and 80% of two-wheeler (2W) and three-wheeler (3W) sales in 2030 would be electric”. “India’s electric vehicle market could be worth nearly USD 206 billion (about Rs 14,42,000 crore) in the coming decade, if India were to achieve its 2030 electric vehicle (EV) ambitions,” it said. Moreover, it said that an estimated cumulative investment of over USD 180 billion (about Rs 12,50,000 crore) will be needed in vehicle production and charging infrastructure until 2030 to meet India’s EV ambition. Commenting on the findings, Senior Analyst at CEEW-CEF Vaibhav Pratap Singh, who is also the lead author of the study, said, “Availability and affordability of capital for OEMs, battery manufacturers, charge point operators, and end consumers would be key to determining the pace, efficiency and cost of India’s transition to electric vehicles.” Consistent policy support would also be critical. The recent announcements by the government to set up EV kiosks across 69,000 petrol stations in the country and permit sales and registration of EVs without batteries can give a boost to the sector, Singh added. As per the study, realising India’s EV ambition would require an estimated annual battery capacity of 158 GWh by FY30. This presents a massive market opportunity for domestic manufacturers. The study recommended capping rental costs for public charging stations and creating a charging infrastructure investment facility to strengthen the business case for charging infrastructure.
Source: ET Auto [Edited]
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Gas/ Pipelines/ Company News
India’s gas use returns to pre-Covid level in smog-killing quest
India’s natural gas demand has rebounded to above pre-pandemic levels amid the country’s drive to boost consumption of the cleanest fossil fuel to rid skies of toxic smog.
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Demand is rising across several sectors, especially city gas, fertilizers and petrochemicals, with long-haul transport poised to start using LNG in trucks, said E.S. Ranganathan, marketing director of GAIL India Ltd., the nation’s biggest gas utility. Consumption in October was above 2019 levels for the first time since June. The rebound comes as Prime Minister Narendra Modi seeks to double gas’s share to 15% of the country’s energy mix by 2030. The country, which the World Bank said in 2016 was home to 14 of the 30 most polluted cities on the planet, will see $60 billion in investment in new pipelines and import facilities to increase use of the fuel. “India’s gas consumption has already surpassed pre-Covid levels,” Ranganathan said in an interview. “All the big industries have actually come back full swing.” The rebound comes after pandemic lockdowns sapped demand, forcing GAIL to cancel one U.S. cargo and postpone another from Gazprom PJSC, which will now arrive this month, he said. Meanwhile, rival Indian gas importers — including Indian Oil Corp. and Gujarat State Petroleum Corp. — have jumped back into the LNG spot market recently, issuing tenders seeking prompt shipments. India has aggressively auctioned out areas for city-gas supplies covering 70% of its population while starting LNG fuel stations on highways and industrial areas to convert diesel-guzzling trucks and mining vehicles. Oil refineries alone will boost consumption to 50 million cubic meters a day by 2025 from about 10 million now, Ranganathan said. Continued growth means that in the year starting April 1, GAIL should be able to consume all of the U.S. LNG it’s contracted to purchase. The company has long-term contracts to buy 5.8 million tons a year, and has had to sell much of that overseas because of a dearth of domestic customers. The company may still swap the cargoes if it saves money on shipping costs, Ranganathan said. The company also plans to build a new sea barrier at its Dabhol import terminal by August 2022, that will allow shipments year-round, as strong waves force it to shut during summer months now.
Source: LNG Global/Bloomberg
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India’s GSPL surrenders licence to build gas link to Jammu-Srinagar
Gujarat State Petronet (GSPL) wants to pull out of a northern India gas pipeline project that would link Punjab state to the hilly areas of Jammu and Srinagar due to high construction costs,
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https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-gspl-surrenders-licence-to-build-gas-link-to-jammu-srinagar/79626344
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RIL-BP set to start gas production from R-Series, invest Rs 400 billion
Reliance Industries (RIL) is ready to start gas production from its second wave of discoveries in its eastern offshore KG-D6 block soon. According to sources,
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the platforms and installations are ready and the final testings are over. “The production can begin anytime soon,” an executive said. RIL and its joint venture partner BP Plc are investing about Rs 400 billion in the second wave of discoveries, which also include Satellite and MJ fields. The gas production from R-Series has been delayed by six months because of COVID-19 pandemic and the related disruptions in the supply chain. The production from Satellite and MJ fields are expected in the next financial year. RIL earlier said that it will commission the project in R-Series in the ongoing third quarter. According to an investor presentation, the wells have been drilled, connected and tested, besides the completion of subsea installations. The balance works on control and riser platforms were under execution at that point of time. The production from RIL’s older fields in Krishna Godavari basin KG-D6 block halted in February. It made 19 gas discoveries in KG-D6. The new investment is projected to help RIL and BP achieve peak output of around 28 MMSCMD by 2023-24. In 2011, BP had bought 30 per cent stake in most of RIL’s oil and gas blocks, including the gigantic eastern offshore KG-D6 fields. BP Plc entered into the business as an equity partner since the assets were facing decline in production quantity. The E&P business of RIL has been in trouble for the last five years. BP has also invested $1 billion in July for 49 per cent stake in RIL’s fuel retailing joint venture.
Source: Business Today/Indian Oil & Gas
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Gail rallies 18% in 3 days after PNGRB simplifies gas pipeline tariff
Shares of Gail (India) jumped 8 per cent to Rs 120 on the BSE on Wednesday (Dec 2) on the back of heavy volumes in an otherwise subdued market.
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Trading volumes on the counter nearly doubled with a combined 61 million equity shares changing hands on the NSE and BSE till the time of writing of this report. In comparison, the S&P BSE Sensex was down 0.21 per cent at 44,563 points at 12:35 pm. The stock was trading at its highest level since February 20, 2020. It touched 52-week high of Rs 133 on January 16, 2020. In the past three trading days, the stock of Gail (India) has rallied 18 per cent after oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for unified gas transmission tariff structure. The tariffs will be applicable based on two zone structure related to distance from source of gas. In the past one month, the stock has surged 42 per cent as against a 12-per cent rise in the S&P BSE Sensex. PNGRB has notified finalised regulations for city gas distribution (CGD) networks regarding common carrier. Key highlights include open access will be implemented in geographical areas (GAs) where marketing exclusivity has ended; capacity in open access shall be at least 20 per cent of capacity of the CGD network and compression capacity or the maximum quantity of gas that has flowed in the CGD network or through compressors even for a period of one day in the past, whichever is higher, CNG or LCNG stations run by dealers and franchises of authorised entities shall not be considered as third party shipper for the purpose of allowing access.
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RIL tops Fortune 500 list of Indian companies, IOC at second spot
Oil-to-telecom conglomerate Reliance Industries Ltd topped the Fortune 500 list of Indian companies, Fortune India announced on Wednesday (Dec 2). Indian Oil Corporation Ltd (IOC),
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the nation’s biggest oil firm, bagged the second spot, followed by Oil and Natural Gas Corporation (ONGC) at the third, it said. The country’s largest lender State Bank of India was in the fourth position, while India’s second-biggest fuel retailer Bharat Petroleum Corporation Ltd (BPCL) took the fifth spot. The list was published by Fortune India, which is part of the Kolkata-based RP Sanjiv Goenka Group. Tata Motors was ranked sixth, followed by gold refiner Rajesh Exports at the seventh spot. India’s largest IT services firm Tata Consultancy Services took the eighth spot, while ICICI Bank was at ninth, and Larsen and Toubro at tenth. In the global rankings released in August, RIL broke into the world’s top 100 companies. IOC had slipped 34 positions to rank 151st globally, while ONGC was ranked 190th, 30 notches lower than its last year’s ranking.
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Exxon Mobil in talks to buy stake in Indian oil, gas fields: Pradhan
Energy supermajor Exxon Mobil Corp is in talks to buy a stake in producing oil and gas fields in India, Oil Minister Dharmendra Pradhan said on Wednesday
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https://energy.economictimes.indiatimes.com/news/oil-and-gas/exxon-mobil-in-talks-to-buy-stake-in-indian-oil-gas-fields-pradhan/79527352[Edited]
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IGX gets PNGRB nod to operate as Gas Exchange for 25 years
The Indian Energy Exchange on Thursday (Dec 4) said its arm, Indian Gas Exchange (IGX), has secured authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB)
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o operate as a Gas Exchange. IGX is India’s first automated delivery-based gas trading platform. IGX has secured the necessary authorization to operate as a Gas Exchange as per the provisions of the PNGRB (Gas Exchange) Regulations, 2020 for a period of 25 years, an Indian Energy Exchange (IEX) statement said. According to the statement, the regulations were notified by the PNGRB on September 28, 2020. IGX had submitted its application for authorization on October 8, 2020. “With his development, IGX has become the first regulated gas exchange in the country. The Exchange will play an instrumental role in transparent discovery of gas prices, accelerate investments in the value chain, aid in capacity utilization of pipelines as well as boost consumer confidence and in turn increasing gas demand in the country,” PNGRB Chairperson D K Sarraf said. Goel added that as a regulated entity, the IGX is poised to further establish and reinforce greater trust and credibility among market participants. The IGX is incorporated as a wholly owned subsidiary of the IEX. The IGX currently offers trade in five contracts namely: Daily, Weekly, Weekday, Fortnightly and Monthly at three physical hubs at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. The IGX has since received encouraging response from all stakeholders and will shortly commence trading with over 500 registered clients and 14 members. Since its launch on June 15, 2020, the platform has cumulatively traded 74,600 MMBTU.
https://energy.economictimes.indiatimes.com/news/oil-and-gas/igx-gets-pngrb-nod-to-operate-as-gas-exchange-for-25-years/79543300
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Union Ministers review the progress of Talcher Fertiliser plant
Bhubaneswar: Union Petroleum Minister Dharmendra Pradhan today reviewed the progress of Talcher Fertiliser Limited (TFL) plant. His Cabinet colleagues,
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Coal Minister Pralhad Joshi and Fertiliser and Chemicals Minister Mansukh Lal Mandviya attended the review meeting. Pradhan said, upon completion, TFL plant will be India’s first coal-gasification-based fertiliser plant with pet coke blending. It will facilitate seamless supply of urea and fertiliser in Odisha and eastern India, he added. The challenges and other issues facing the project were discussed and the Union Ministers directed senior Central Government officials to address the bottlenecks at the earliest. The plant will play a major role in employment generation, they said. Senior officials of Ministries of Coal, Finance, External Affairs, Petroleum, Fertiliser Department and State Bank of India, participated in the meeting, Talcher Fertilizers Ltd is a joint venture between GAIL India Ltd, Coal India Ltd, Rashtriya Chemicals and Fertilizers Ltd and Fertilizer Corporation of India Ltd (FCIL). The coal gasification-based ammonia-urea project, a first-of-its-kind in the country, would have a design capacity of 2,200 tonnes per day of ammonia and 3,850 tonnes per day of urea. Earlier owned by Fertiliser Corporation of India (FCI), the plant stopped production in March 1999. Now, the TFL joint venture is reviving the plant’s operations.
https://ommcomnews.com/odisha-news/union-ministers-review-the-progress-of-talcher-fertiliser-plant
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OMPL likely to get gas supply by December-end
The natural gas supply to OMPL (ONGC Mangalore Petrochemicals Limited) through KochiMangaluru natural gas pipeline will commence by the end of December.
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According to sources, the work on laying the pipeline is in progress. About 100-metre pipeline work is pending for OMPL connectivity. The GAIL (India) Ltd has stabilised the supply of natural gas to MCF for urea production. The MCF was using naphtha as feedstock for urea production. Now, with the completion of the regasified liquified natural gas pipeline, the plant has started using natural gas as its feedstock. The natural gas had arrived at Mangaluru from Kochi on November 22. The laying of the 444-km-long natural gas pipeline was launched in 2009 at an estimated cost of Rs 2,915 crore. However, the work was delayed due to various reasons like land acquisition and was finally commissioned in 2014. The delay in the project resulted in an escalation of the project’s cost to the tune of Rs 5,750 crore. The work was given to the LNG terminal of Petronet LNG in Kochi six years ago. Gail (India) Ltd was entrusted with the responsibility of laying the pipeline from Kochi to Mangaluru.
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Policy Matters/ Gas Pricing/Others
ICE marks launch of West India Marker LNG (Platts) Futures Contract
Intercontinental Exchange (ICE) Marks a New Milestone in the Liberalization of Natural Gas Markets With the Launch of West India Marker LNG (Platts) Futures Contracts.
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Source: Indian Oil & Gas/S&P Global Platts
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Now, RIL, other producers don’t need govt nod for gas pricing
Reliance Industries (RIL) and other producers of natural gas will no longer need the government approval for the gas price if it is arrived at using the new guidelines for the discovery of market price, an official order said.
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Pradhan stresses on need to develop synergies between natural gas producing, consuming nations
Union Minister of Petroleum and Natural Gas, Dharmendra Pradhan on Thursday (Dec 3) said we need to develop greater synergies between natural gas producing
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and consuming nations to seize the opportunities presented by the COVID-19 pandemic. “We need to develop greater synergies between natural gas producing and consuming nations to seize the opportunities presented by the COVID-19 pandemic,” said Pradhan at the 7th IEF-IGU Ministerial Gas Forum. “Gujarat has set an example with a 25 per cent share of natural gas in the primary energy mix vis-a-vis 6.3 per cent at the national level. We are adapting the Gujarat model in several states across the country,” he added. The Union Minister yesterday tweeted, he shared his views on finding new market principles and mechanisms, including delinking LNG markets from oil markets, addressing rigidities in LNG marketing structures for expanding the global demand for LNG. “Also, stressed about developing greater synergies between natural gas producing and consuming nations to seize the opportunities presented by the Covid-19 pandemic and also promote greater use of natural gas for a decarbonised and sustainable world,” he added. (ANI)
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India to see $66 billion investment in gas infrastructure
India will see a massive $66 billion investment in the building of gas infrastructure as the government pushes for greater use of the cleaner fuel with a view to cutting down
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carbon emissions, oil minister Dharmendra Pradhan said on Wednesday (Dec 3). The government is targeting raising the share of natural gas in its energy basket to 15% by 2030 from the current 6.3%. This will entail gas consumption rising manifolds from current 160-170 MMSCMD. To cater to this, liquefied natural gas (LNG) import capacity is being raised, new pipelines laid to transport the fuel, and city gas infrastructure expanded to take the fuel to users, he said at KPMG India’s annual energy conclave ENRich 2020 here. “An estimated investment of $66 billion is lined up in developing gas infrastructure, which includes pipelines, city gas distribution, and LNG regasification terminals,” he said adding 14,700-km gas pipelines are being added to the existing network of 16,800-km to form a national gas grid. He, however, did not give breakup or timelines of the investment. Elaborating on India’s energy strategy going forward, he said apart from achieving the renewable energy target of 450 gigawatts (GW) by 2030, India will focus on developing in an integrated manner a gas-based economy, cleaner use of fossil fuels, greater reliance on domestic fuels to drive biofuels and moving into emerging fuels, like hydrogen. LNG import terminals and capacity additions are planned on both east and west coast. Also, the city gas network of retailing CNG to automobiles and piped natural gas to households and kitchens has been extended to 407 districts. Besides CNG, the government is also promoting the use of LNG as fuel on long-haul trucks and buses. “Recently, we have laid the foundation stone for the first 50 LNG fueling stations across the golden quadrilateral and major National Highways. Our goal is to set up 1000 LNG stations within 3 years which is likely to add about 20-25 MMSCMD of new gas demand by 2035,” he said. Besides, the National Biofuel Policy (NBP) is targeting blending of 20 per cent ethanol in petrol and 5 per cent of bio-diesel by 2030. “There is also an increased push to adopt hydrogen fuel mix. Last month, we launched the Hydrogen enriched- Compressed Natural Gas (HCNG) plant and dispensing station in Delhi and also rolled out the first set of buses with HCNG,” he said. The global GDP is projected to double by 2040 but the associated global energy demand is estimated to increase only by 30%, he said adding the situation of developed and developing countries however are not similar. “As economic development catches up, energy needs of countries, like India will be higher and must be adequately met while being responsive to environmental and climate concerns,” he said. India uses only 6 per cent of the world’s primary energy and the per capita consumption of energy is still one-third of the global average. “This, however, is rapidly changing. India’s developmental state triggers the rapid expansion of energy consumption and a need for robust energy security.” India is the third-largest energy consumer after the US and China. Its energy demand increased to 882 million tonnes of oil equivalent (Mtoe) in 2017. According to BP Energy outlook 2020, India’s energy demand would grow at about 3 per cent per annum till 2040. “Our estimated per capita energy consumption would be half of the world average by 2040.” India has committed to reducing the emissions intensity of its GDP by 33-35 per cent from 2005 levels. Similarly, under the ambitious Strategic Energy Partnership, India and the US energy trade is growing exponentially over the past few years.
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BPCL receives three preliminary bids, says Oil Minister Dharmendra Pradhan
The government has received three preliminary bids for buying of controlling stake in India’s second-largest fuel retailer Bharat Petroleum Corporation Ltd (BPCL),
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Oil Minister Dharmendra Pradhan said on Wednesday (Dec 2). Mining-to-oil conglomerate Vedanta had on November 18 confirmed putting in an expression of interest (EoI) for buying the government’s 52.98% stake in BPCL. The other two bidders are said to be global funds, one of them being Apollo Global Management. The transaction will move to the second stage after scrutiny by TA,” he had said. Pradhan said the government is looking to privatise some of the state-owned companies to bring in professionalism and competition. A special purpose vehicle floated by the BSE-listed Vedanta Ltd and its London-based parent Vedanta Resources submitted an EoI before the close of the deadline on November 16. BPCL is India’s second-largest oil marketing company with a standalone domestic sales volume of over 43.10 MMT and a market share of 22% during FY20. It is India’s sixth-largest company by turnover. Its petrol pumps sell more fuel than the industry average — BPCL pumps sell 124 kilolitres per month as compared to the industry average of 116, according to the company website. The firm also has an upstream presence with 26 assets in nine countries such as Russia, Brazil, Mozambique, the UAE, Indonesia, Australia, East Timor, Israel and India. It is also making a foray into city gas distribution and has licences for 37 geographical areas (GAs).
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Diesel, electricity demand slumps
India’s diesel and power consumption, considered a bellwether for economic activity, contracted sharply in November as festive season demand fizzled out, indicating that the economic recovery
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remains fragile as renewed curbs in several states hit by a second wave of infections restricted movement of people and goods. Monthly sales data of public sector fuel retailers, who dominate 90 per cent of the market, showed diesel consumption falling 7 per cent from a year ago in November. On monthly basis, however, diesel grew 8 per cent from October, when consumption had shot past the pre-pandemic level for the first time in eight months. Power demand dropped 4.7 per cent to 98.37 BU (billion units) in same month from 93.94 BU in year-ago period. The drop in diesel and power demand follows data last week showing the economy shrinking 7.5 per cent in the third quarter after slumping nearly 24 per cent in the previous three months. Reduced fuel consumption is also telling on refinery operations. Latest data on core industries last week showed refinery output declining 17 per cent from a year ago in October and 16.4 per cent in the April-October period.
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LNG Development and Shipping
Asia needs flexible LNG deals not linked to oil prices- India oil minister
Asia needs flexible liquefied natural gas (LNG) contracts with no links to oil prices to reflect changes to the market as demand recovers from the impact of the coronavirus pandemic,
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India’s oil minister Dharmendra Pradhan said on Thursday (Dec 3). Pradhan said gas buyers and sellers need to adjust to changing market dynamics after lower spot gas prices in last two years have encouraged buyers to favour short-term and spot deals instead of long-term oil-linked deals. “The LNG price determination for Asian consumers is still oil-linked, and this requires an urgent revision,” Pradhan said at an International Energy Forum event. India, the world’s fourth largest liquefied natural gas importer, is aiming to raise the share of gas in its energy mix to 15% by 2030 from the current 6.3% and is investing $60 billion by 2024 to strengthen infrastructure. The country’s top importer Petronet LNG is renegotiating pricing of gas bought under long-term deals with Qatar, after a spot price slump made oil-linked long-term deals unattractive. “There is greater recognition to immediately address the rigidities in its marketing structures in LNG sector,” the minister said referring to clauses like destination restriction. He said refined fuels and gas demand in India has recovered to pre-Covid levels and he hoped the country will remain a key global energy demand center. India is doubling its natural gas grid to 34,500 kilometers and increasing annual gas import capacity to 61 million tonnes by 2022 from the current 42 million tonnes, he said.
Source: LNG Global/Reuters
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H-Energy to commission Maharashtra LNG terminal in March
H-Energy will deploy Hoegh LNG Holding’s floating storage and regasification unit (FSRU) for 10 years
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India’s H-Energy will commission its Jaigarh liquefied natural gas terminal (LNG) at Jaigarh port in Western Maharashatra state in March 2021, the company said in a statement on Wednesday (Dec 2). H-Energy will deploy Hoegh LNG Holding‘s floating storage and regassification unit (FSRU) for 10 years. The FSRU, built in 2017, has storage capacity of 170,000 cubic meters and has a peak regasification capacity of about 6 MMTPA, the statement said. The FSRU will deliver regasified LNG to the 56 km Jaigarh-Dabhol pipeline connecting to the National Gas grid. The FSRU is also capable of reloading LNG onto other LNG vessel’s for providing bunkering services
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Natural Gas / Transnational Pipelines/ Others
EU weighs up sanctions against Turkey in east Mediterranean gas dispute
European Union foreign ministers evaluated grounds on Monday for sanctions against Turkey over a Mediterranean gas dispute before the bloc’s leaders decide at a summit
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on Dec. 10-11 whether to make good on their threat to impose punitive measures. Turkish President Tayyip Erdogan said his country would not “bow down to threats and blackmail” but repeated his call for negotiations over the conflicting claims to continental shelves and rights to potential energy resources. Tensions flared in August when Turkey – a NATO ally and candidate for EU membership – sent a survey vessel to map out energy drilling prospects in waters also claimed by Greece. Germany, current holder of the EU’s six-month presidency, holds the key to whether sanctions go ahead. It had hoped to mediate between Athens and Ankara, but was angered when Turkey resumed its gas exploration off Cyprus in October after a pause. “There have been too many provocations, and tensions between Turkey, Cyprus and Greece have prevented any direct talks,” German Foreign Minister Heiko Maas told reporters in Brussels. “For this reason, we will talk about what consequences we should draw – also with a view to the EU summit this week.” EU leaders told Turkey in October to stop exploring in the disputed eastern Mediterranean waters or face consequences. France and the European Parliament, which formally called for sanctions on Nov. 26, say it is time to punish Turkey, which is seen in Brussels as fuelling the dispute for domestic political reasons.
DIALOGUE
Greece has said it will not begin formal talks with Turkey over maritime claims while Turkish vessels remain in the contested waters. “Turkey must demonstrate, in practice, that it supports the idea of this dialogue,” Greek Foreign Minister Nikos Dendias said on Twitter late on Sunday. “However, this choice on Turkey’s part must have continuity.” The Turkish vessel, Oruc Reis, returned to port again last week, helping to calm tensions, but European Council President Charles Michel warned Turkey not to play “cat and mouse” by returning exploration ships to port just before EU summits, only to redeploy them after they had finished. EU officials say broader issues of disagreement – over Libya, Syria, Russia and Turkey’s own drift towards authoritarianism – have hardened European positions towards Ankara.
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China launches 1,100-km section of China-Russia East gas pipeline
Operations have started on the middle portion of the China-Russia East natural gas pipeline, allowing natural gas from the Power of Siberia system in Russia to be transmitted to the smog-prone
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Beijing-Tianjin-Hebei region in northern China. The 1,110-kilometre pipeline aims to help improve air quality in the region, where about a quarter of China’s steelmaking capacity is located, by adding 27 million cubic metres gas supply per day, China Oil & Gas Piping Network Corp (PipeChina) said in a statement on Thursday (Dec3), adding that the pipeline will also promote economic development alongside the rust-belt areas. This portion starts at Changling city in Jilin and ends at Yongqing city in Hebei. The pipeline also connects the existing gas pipelines in northeastern and northern China, as well as the gas storage projects in Dalian, Tangshan and Liaohe.
The northern part of the China-Russia East gas pipeline started operations in December 2019 and has transmitted nearly 4 BCM natural gas, according to PipeChina. China had started construction on the southern portion of the China-Russia East pipeline in July, extending the route to Shanghai in eastern China. Volumes of Russian gas transported via the pipeline could reach 38 BCM per annum once the line is completed by 2025.
Source: LNG Global/Reuters
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U.S. shale firms amp up natural gas output as futures signal more gains
Higher natural gas futures prices for 2021 and a continued glut of crude oil are prodding U.S. shale firms to boost gas drilling and production. Shale producers are increasing spending on natural gas,
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a change from the past, amid forecasts for a 45% jump in gas prices next year compared to a 15% gain for Brent prices. The shift is a reminder to the Organization of the Petroleum Exporting Countries meeting this week how shale moves quickly in response to price. The OPEC group is considering whether to ease oil output curbs from Jan. 1. The largest U.S. shale oil producer, EOG Resources, this month said next year it will start selling gas from 15 new wells from a newly discovered field holding 21 trillion cubic feet of gas. Continental Resources recently shifted drilling rigs to gas from oil in Oklahoma. Apache Corp this month said it plans to complete three Texas wells after lifting its third-quarter U.S. gas production by 15% over the second quarter and 6% over the same period last year. “Demand has remained pretty robust. Supply has been starved for capital,” said Christopher Kalnin, chief executive of Denver-based Banpu Kalnin Ventures, which last month closed a deal to acquire Devon Energy natural gas assets. Banpu Kalnin has hedged about 65% of its gas production for next year. The number of U.S. rigs drilling for natural gas, an indicator of future output, has climbed 13% to 77 since July. About a quarter of all active U.S. rigs are drilling for gas, up from 16% last year, according to services firm Baker Hughes. In the Haynesville gas field that spans Louisiana and Texas, the number of working rigs is up 25% since July. Rigs also are up 8% in the Marcellus, the top U.S. gas field. Gas prices could jump 45% to an average $2.94 per MMBtu in 2021, from $2.03 this year, analysts predict. That would be the highest annual average since 2018. Summer 2021 prices could hit $3.50 per MMBtu, according to Bank of America, from $2.84 per MMBtu on Friday (Nov27). Helping drive the improved outlook is expanding U.S. liquefied natural gas (LNG) shipments. This month, LNG exports rose above pre-COVID-19 levels and could average 8.4 billion cubic feet per day in 2021, a 31% increase from 2020, according to the latest U.S. Energy Information Administration forecast. Producers have doubled their natural gas hedges since March, locking in prices for future output. They have hedged 53% of next year’s gas volumes compared with 43% of their oil, according to finance services firm Raymond James. Natural gas “has not been hit as hard as crude,” by the COVID-19 pandemic, said Bernadette Johnson, a vice president at data provider Enverus. “For those that have some diversity in their assets, it can help them weather the storm.” EOG’s gas wells at its new field are as profitable as its best oil wells. Future drilling there after 2021 will be “based on market conditions,” said Executive Vice President Ken Boedeker. Gas prices are benefiting in part from oil drilling cutbacks that reduced associated gas, or gas produced as a byproduct of oil output. The decline in associated gas has led to the current gas-price rally, said Eugene Kim, analyst at consultancy Wood Mackenzie. The price rally has boosted shares of natural gas-focused shale producers. Range Resources is up about 65% this year, EQT by 48% and Southwestern Energy Co has climbed more than third. In contrast, the SPDR S&P Oil & Gas Exploration & Production ETF is down 39% through Friday.
Source: LNG Global
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TAP pipeline explores feasibility of blending hydrogen
Developers of the Trans Adriatic Pipeline (TAP) have started feasibility studies on blending hydrogen with the natural gas the pipeline will bring in from Azerbaijan, the TAP head said.
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“The company has kicked off a technical study and we hope to be in a position to make a first assessment by the end of June next year,” TAP managing director Luca Schieppati told Reuters on Wednesday (Dec 9). TAP is the final leg of a $40 billion project named the Southern Gas Corridor, which will carry 10 billion cubic metres of gas per year from the giant Shah Deniz field into Europe. The pipeline, already commercially operative, is set to start pumping its first gas into Italy at the end of this year. Schieppati said any commitment on hydrogen blending could come in tandem with a decision, expected in July 2021, on the possible doubling of the infrastructure’s gas capacity. Hydrogen is seen as an energy source that could partly replace natural gas in future, helping to cut emissions provided it is produced using renewable power and is therefore carbon-free. TAP shareholders include BP, Azerbaijan’s SOCAR, Snam , Fluxys, Enagas and Axpo. Many gas grid companies around the world are committing to a wider use of hydrogen as a way to extend the long-term life of their infrastructure because of increasing requirements to move away from fossil fuel, such as gas. Snam, Europe’s biggest gas pipeline operator, has been experimenting with a 10% mix of hydrogen in part of its gas network and has said 70% of its grid is “hydrogen ready”. Earlier this year it reached a deal with SOCAR to study the possible use of renewable gases for delivery through the Southern Gas Corridor.
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Global LNG Development
Bombshell report pours cold water on global LNG outlook
When the European Union tied its pandemic relief plan to renewable energy generation and emissions reduction targets, analysts sounded an alarm for LNG as the production of the superchilled fuel
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involves a certain amount of greenhouse gas emissions. Now, Wood Mackenzie is warning that global energy transition goals could threaten more than two-thirds of the world’s supply of liquefied natural gas, leaving trillions of cubic meters of gas in resources stranded. This forecast is a stark departure from pretty much all gas demand projections, including from energy industry majors such as BP, which invariably see this demand growing as gas replaces oil as a less polluting fossil fuel, especially in developing economies. LNG is a form of natural gas that many believe is set for particularly strong demand growth because of its supply flexibility: while natural gas needs pipeline infrastructure, limiting options, LNG can be bought from anywhere in the world and delivered to a port with a regasification terminal. But if governments decide to double down on their climate change targets and start aiming for the more ambitious 2-degree scenario under the Paris Agreement, LNG growth will suffer. The so-called 2-degree scenario refers to efforts aimed at curbing the rise in average global temperatures to 2 degrees Celsius. A more realistic scenario is limiting this rise to 1.5 degrees Celsius. According to the U.N. Framework Convention on Climate Change’s Conference of the Parties (COP21), the 2-degree scenario was economically feasible and cost-effective in 2015. Since then, however, doubts have arisen as this scenario would require cutting the world’s emissions by as much as 70 percent by 2050. It is still quite doubtful if the 2-degree scenario could play out with some even warning we are hopelessly failing even with the 1.5-degree scenario. And yet, with some governments—notably in Europe—tying up pandemic recovery to boosting renewable energy, the 2-degree scenario might have a chance, even if it is a belated one. “In a 2-degree world, only about 145 billion cubic metres per annum (bcma) of additional LNG supply is needed in 2040 compared to 450 bcma in our base case outlook,” said Wood Mac principal analyst Kateryna Filippenko. “And if we consider imminent FID for Qatar North Field East expansion, the space for new projects shrinks to 104 bcma, down 77% from our base case.”
A decline of 77 percent for projected LNG demand is quite a downward revision that will only add to the woes of an industry that has seen a supply boom, which led to a glut and a price depression that made some projects economically unviable. If indeed renewable energy ambitions take the upper hand in the coming couple of decades, the projected flourishing of the LNG industry as the world moves away from oil might never materialize. According to the Wood Mac analysis, Qatar and Russia will be best positioned to respond to the moderate demand growth, which, by the way, the analysts see beginning to decline after 2035. Low-cost U.S. natural gas could make some Gulf Coast projects competitive, too, the analysis notes. This, however, would depend on the continued fracking boom, which is not as likely as it was just a year ago. Also, the European Union’s concern about emissions from fracking might compromise U.S. LNG’s competitiveness on that market. “LNG developers will have a difficult decision to make,” says another Wood Mac analyst, Evgeniya Mezentseva. “On the one hand, there will be windows of opportunities for investment decisions. But on the other hand, the long-term value of these investments might be at risk by the prospects of a shrinking market space combined with competitive pressure from lower-cost producers.” This counters all the upbeat scenarios developed so far by industry and governments, but it is worth noting the above are predictions for a world firmly on a 2-degree path. This, as already mentioned, is far from a certain path, even with the recent boom in solar, wind, and crucially, energy storage, not to mention the hype surrounding green hydrogen, which has yet to become competitive with hydrogen produced from natural gas. The forecast detailed by Wood Mackenzie’s analysts is nothing short of a doomsday scenario for the natural gas industry. Luckily for this industry, the chances of that scenario unfolding are not particularly great, not for lack of ambition but rather for lack of the necessary technological advances that would enable the complete or near-complete replacement of fossil fuels in electricity generation by renewable sources. The latest major battery storage news is a case in point: Tesla and Neoen’s new 300-MW project in Australia, worth $84 million, will have the capacity to power half a million households for an hour. We need a lot more storage than that before we can rely exclusively on solar and wind as our principal sources of electricity, which would be a must in a 2-degree world.
https://oilprice.com/Energy/Natural-Gas/Bombshell-Report-Pours-Cold-Water-On-Global-LNG-Outlook.html
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NRDC Report determines LNG exports are a climate disaster – USA
The export of U.S. liquefied natural gas poses an unacceptable risk to the climate, according to a landmark analysis that looks at the life-cycle emissions of producing, processing, shipping
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and burning the gas. Today’s report – Sailing to Nowhere: Liquefied Natural Gas is Not an Effective Climate Strategy – finds that just producing, transporting and liquefying this gas will generate up to 213 million metric tons of new greenhouse gas emissions just in the U.S. by 2030, equal to the annual emissions of up to 45 million cars. And that doesn’t even include the emissions that will be released when that gas is eventually consumed and burned overseas. As the recent decision by France to reject U.S. LNG imports demonstrates, these staggering emissions are inconsistent with the recent decisions by China, Japan, South Korea and the European Union to set firm deadlines to become carbon neutral. With the incoming Biden administration making bold commitments to decarbonize, it’s imperative that it recognize the peril of LNG, as well. “When we looked at the full scope of venting, shipping, cooling and burning LNG, it became clear that this industry is incompatible with the actions we need to address climate change, both in the U.S. and around the globe,” said Amanda Levin, a policy analyst at NRDC (Natural Resources Defense Council) and co-author of the report. “Given the urgent threats we face, we cannot lock-in this polluting infrastructure,” said Christina Swanson, director of the Science Center at NRDC and another co-author. “Instead of pursuing these white elephant projects, we should be investing in clean-energy technologies, technologies that are genuine climate solutions.” Sailing to Nowhere includes a detailed analysis of the full life-cycle emissions of LNG. The industry has focused attention on the smokestack emissions, where burning gas emits about half the carbon dioxide of coal. But each step in the production, transport, and liquefaction of gas for export results in greenhouse gas emissions, as well. Leaks and venting of methane, a much more potent greenhouse gas than carbon dioxide, during the production and transport of gas can constitute up to 14 percent of LNG’s lifecycle emissions. Liquefaction, tanker transport across the ocean, and regasification can amount to another 21 percent of total life-cycle emissions for LNG, the report found. Taken together that means nearly half of the emissions for LNG over a 100-year timeline – 44%, according to this new analysis – come from production, processing and transport. Once those emissions are factored in, LNG shows itself to be a climate disaster. With LNG exports forecast to increase a staggering 70% from 2019 to 2021, that means LNG-related emissions alone could reverse the 1% annual decline in total U.S. emissions seen over the past decade. “Federal and state regulators must take this analysis of the full, life-cycle emissions into account when they are deciding how and whether to approve new LNG projects,” Swanson said.
https://www.nrdc.org/media/2020/201207
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GLOBAL LNG-Asian prices rise to over two-year high driven by heating demand
Asian spot prices for LNG rose this week (Dec 6-12) to the highest since Sept. 2018 due to high demand for heating, a supply crunch and increasing freight rates, trade sources said.
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The average LNG price for January delivery into northeast Asia LNG-AS was estimated at around $11.10 per MMBtu, up $3.00 from the previous week, the sources said. Prices for February delivery were estimated at around $10.50 per MMBtu. Temperatures in Beijing, Tokyo and Seoul are expected to be lower than average over the next two weeks, weather data from Refinitiv Eikon showed, increasing gas demand for heating. The rise in imports in China, as the economy recovers, and the lack of shipping availability is also helping to push prices up, the sources said.
“LNG imports by China hit a one-year high in November and are set to increase further, raising demand” a London-based trader said. PetroChina and China National Offshore Oil Corp (CNOOC) said on Friday they will invite global bids for LNG in Shanghai. A recent tender by Pakistan LNG to buy six spot cargoes for January only garnered interest for half of the requirements, showing how tight the supply situation is, sources said.
Production issues in Australia and Malaysia, two of the top four largest exporters, and delays in the Panama Canal, through which U.S. ships part of its liquefied gas, are adding to tighter supply. Prices are expected to stabilize in the second half of January with record volumes coming from the U.S, where natural gas prices are below $3, making exports profitable, traders said. LNG prices in Asia have increased by more than a five-fold since June, when lower demand due to the coronavirus pandemic drove them below $2.00/MMBtu.
Source: LNG Global/Reuters
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Asian spot LNG prices jump on supply issues, shipping rates
Asian spot liquefied natural gas (LNG) prices jumped on Tuesday (Dec 8), with a cargo trading 11 percent higher than another deal on Friday, as supply of the super-chilled fuel has been disrupted in some parts
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and as shipping rates have gone up, traders said. Gunvor Singapore on Tuesday sold a cargo for Jan. 25 to 29 delivery into North Asia to BP Singapore at $8.90 per MMBtu, according to data from S&P Global Platts. The trade took place during Platts’ trading period known as market-on-close (MOC). This is a jump of 90 cents per MMBtu, or about 11%, from a similar trade that occurred on Friday (Dec 4). There were also two other bids by Vitol Singapore, one of them for a mid-January delivered cargo at a price of $8.95 per MMBtu, which were remaining at the end of the trading period. “Demand is quite strong and along with some supply issues and no shipping availability are all factors pushing prices higher,” a Singapore-based trader said, adding that demand from China, in particular has been strong. China imported nearly 6.4 MMT of LNG in November, highest monthly volumes since December, 2019, Refinitiv Eikon data showed, with this month’s volumes expected to surpass November’s, according to the trader. Supply issues in Australia and Qatar are also boosting spot prices, though these are expected to be temporary, traders said. For instance, Chevron Corp temporarily shut a unit that separates natural gas and associated liquids at its Wheatstone offshore processing platform after finding an issue during routine maintenance. With spot prices in Asia rising, traders are diverting cargoes from Europe to the region, while congestion in the Panama Canal also caused shipping rates to rise, the traders said. “The expensive shipping is making it difficult to bring cargoes from the Atlantic,” a Singapore-based trader said.
https://www.brecorder.com/news/40038707/asian-spot-lng-prices-jump-on-supply-issues-shipping-rates
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LNG share in Turkey’s natural gas imports reaches 43% in H1 this year
Turkey’s liquefied natural gas (LNG) share of total gas imports increased from 27% in the first half of 2019 to 43% for the same period this year, an official from Turkey’s Petroleum Pipeline Company (BOTAŞ) said.
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Yunus Emre Icik, deputy head of the Natural Gas Supply and Export Department of BOTAŞ, speaking at the World LNG Virtual Summit and Awards, confirmed a total daily send-out capacity of more than 120 million cubic meters (bcm) from Turkey’s two land-based liquefied natural gas (LNG) terminals and its two floating storage and regasification units (FSRU). He explained that from this infrastructure, Turkey has been able to benefit from low LNG prices to supply almost half of its peak daily natural gas demand. Out of the increased share of LNG imports in Turkey, the most dramatic rise was seen when LNG prices dropped to very low levels in May. “Turkey’s LNG share increased three times compared to the previous year (in May). For the first six-month average, Turkey’s LNG import share out of total gas imports increased from 27% to 43%,” he noted. Turkey supports its energy supply security through its LNG and FSRU terminal infrastructure and meets nearly 45-50 bcm of its annual consumption. Turkey’s Marmara Ereğlisi LNG Terminal in the northwest has a capacity of 5.9 MMT while the Aliağa Egegaz LNG Terminal in the western Izmir province has an annual capacity of 4.4 MMT. Turkey’s first FSRU was launched in Aliağa district in December 2016. In early February 2018, a second FSRU with 20 MMCM of send-out capacity per day was launched in the country’s southernmost Hatay province. The country plans to expand its LNG storage capacity by adding a third FSRU in Saros Bay, north of the Gallipoli Peninsula in northwestern Turkey by 2021.
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Eni strikes deals to reopen Egypt’s Damietta LNG plant
Italian energy group Eni has struck deals with Spanish gas firm Naturgy and Egyptian partners to resolve disputes over a shuttered gas plant it part owns in northern Egypt. Eni said in a statement on Tuesday (Dec1)
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that the new agreements would pave the way for the liquefied natural gas (LNG) plant in the port city of Damietta to restart operations by the first quarter of next year. An earlier deal hammered out between Eni, Naturgy and the Egyptian government over the plant fell through in April when a series of conditions were not met. The new deal, which still needs the green light from European Union authorities as well as other conditions to be met, will allow Eni to increase its LNG portfolio and strengthen its gas foothold in the Eastern Mediterranean. Naturgy said in a separate statement that it will receive a series of cash payments totalling around $600 million under the deal, which when completed will result in its departure from Egypt and the end of its joint venture with Eni. Eni, one of the biggest foreign oil and gas producers in Africa, discovered Egypt’s biggest-ever gas field Zohr in 2015 and has other assets in the Mediterranean. Like other majors, Eni is looking to decarbonise and sees LNG and gas as important resources in that transition. The Damietta plant was 80 per cent owned by Union Fenosa Gas (UFG), a joint venture between Eni and Naturgy, with the rest split evenly between the Egyptian Natural Gas Holding Company (EGAS) and Egyptian General Petroleum Corporation (EGPC). Under Tuesday’s agreement, the plant will be 50 per cent owned by Eni, 40 per cent by EGAS and 10 per cent by EGPC. Eni also said it would take over UFG’s marketing of natural gas in Spain, bolstering its presence in the European market. Naturgy has been renegotiating supply contracts after a gas price slump caused by lower demand and oversupply.
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Japan’s Inpex signs gas sales agreement with Indonesia gas utility
A unit of Japan‘s Inpex Corp has made an agreement to sell natural gas from its Masela gas project to Indonesia’s gas utility company, Indonesia’s upstream oil and gas regulator said on Thursday (Dec 3).
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A memorandum of understanding was signed between Inpex Masela Ltd and PT Perusahaan Gas Negara, but a spokeswoman for regulator SKK Migas said the size of the sale was still being discussed. Indonesia approved last year Inpex’s revised development plan for the $20 billion Masela project, which is among the biggest gas ventures in the Southeast Asian country. It is expected to produce around 9.5 MMT of liquefied natural gas per year and supply 150 million cubic feet of natural gas daily through pipelines. In February, Inpex signed an memorandum of understanding for gas supply with Indonesia’s state electric company PT Perusahaan Listrik Negara and fertilizer maker PT Pupuk Indonesia.
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Russia’s LNG exports down 70% m/m in Oct – customs
Liquefied natural gas export volumes from Russia declined by 70% in October from September to 2 million cubic metres, according to customs data published on Thursday (Dec 10).
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There was also sharply down from 9.4 million cubic metres in October 2019. There are two major LNG producing plants in Russia: Yamal LNG, led by Novatek, and Sakhalin 2, led by Gazprom . There was no explanation for the exports decline and no breakdown of the data. The customs data also showed that sales of LNG fell by 85% in October from September to $67.2 million. According to the statistics, volumes of Russian LNG exports rose in January-October by 1.8% year-on-year to 57.1 million cubic metres. They generated sales of almost $6 billion for the period, down 15%, amid weaker prices.
Source: LNG Global
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Platts says first LNG futures contract trades against its West India Marker
Pricing agency S&P Global Platts said on Thursday (Dec10) that its West India Marker price assessment has been used as a settlement price for the first futures contract trade reported for LNG sold into the Indian market.
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The financially settled derivatives contract was traded between commodity trader Glencore and France’s Total in a trade arranged by brokerage Tullett Prebon, Platts said in a statement to media. The West India Marker price assessment, which was launched in 2010, is used by Platts to price spot cargoes delivered into ports in India and the Middle East though it is not widely used as a benchmark. Asian LNG buyers typically hedge their LNG cargoes using Brent crude oil futures or gas futures traded in the United States and Europe. Platts’ Japan-Korea-Marker (JKM) derivatives has more recently been gaining traction. The deal brokered by Tullet was dollar-denominated and was executed as a spread against the futures contract that financially settles against the Platts JKM assessment, Platts added. “This deal is a significant step towards the emergence of a new regional derivatives market for LNG delivered into the India and Middle East region,” said Vera Blei, Platts’ head of oil and LNG market pricing. “In spite of its size, this major trading region does not have a dedicated derivatives market reflecting its own supply and demand dynamics, meaning physical market participants wishing to hedge can be exposed to significant basis risk.
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Natural Gas / LNG Utilization
Turkish capital city Ankara acquires over 250 CNG buses with EBRD loan
Residents of the Turkish capital Ankara will enjoy cleaner air thanks to a €57.1 million loan by the European Bank for Reconstruction and Development (EBRD) extended to the city’s public transport company
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EGO (state-owned company affiliated to Ankara Metropolitan Municipality) to replace polluting diesel buses with 254 natural gas vehicles and install a CNG station. “The new buses will significantly reduce air pollution in the city, an ever growing problem. The project also recognizes the realities of our time – the COVID-19 pandemic – as this increase in operational capacity is essential to ensure safe social distancing on buses, which in turn will deter a shift back to cars. This in itself will have a huge and positive impact on the city,” commented Nandita Parshad, Managing Director of the Sustainable Infrastructure Group at the EBRD. “I would like to commend the municipality for promoting a green fleet renewal solution. We believe this transaction will be the first of many others to come in Ankara and we look forward to strengthening our relationship with the city. We also hope that our cooperation will attract other lenders to the city’s future investments,” added Arvid Tuerkner, EBRD’s Managing Director for Turkey. The agreement confirmed Ankara as the 44th member of EBRD Green Cities, the bank’s flagship urban sustainability program. On joining this initiative, cities undertake a trigger project with EBRD finance, as well as crafting their own Green City Action Plan (GCAP) setting out further actions. Ankara will be the second city in Turkey joining EBRD Green Cities following Izmir and will be a showcase for others. Ankara Metropolitan Municipality, with a population of 5.7 million, is the second largest city in Turkey after Istanbul and the country’s political and economic hub. Its population is growing at about two per cent a year, putting pressure on urban transport. Recognizing the impact of poor air quality and the global effects of carbon emissions, the city is developing a greener future by investing in its public transport system and working on a comprehensive strategy to improve its environmental performance.
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UK supermarket chain adds over 200 Volvo LNG trucks before Christmas
Asda is taking delivery of 202 Volvo FH LNG tractor units in the run-up to Christmas peak trading, in what is believed to be the single largest order ever placed in the UK for heavy trucks running on renewable fuels.
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The supermarket has ambitions to transition its core fleet of 1,000 tractor units from diesel to natural gas by 2024, after in-house trials showed running on biomethane reduced CO2 emissions by more than 80%. The delivery also sees Volvo’s share of Asda’s fleet more than double in size to one third. Supplied by Andrew Low, National Key Account Manager at Volvo Trucks UK & Ireland, the order comprises 29 4x2s for operation with single-deck trailers, and 173 6x2s which will pull double-decks. All trucks benefit from sleeper cabs and a comprehensive specification fine-tuned for safety, sustainability and efficiency. The bulk of the new trucks will remain in service until January 2026 – 12 months longer than Asda’s typical replacement cycle for diesel vehicles. “The higher capital price for gas trucks means it makes sense to run them longer. But having put the Volvos through their paces for two years, we have absolute faith in their ability to go the distance – even in our 24/7 operation, where trucks rarely stop,” added Clifton. The longest run covered by Asda’s 4x2s is a return trip of 380 miles, which is comfortably achieved with a quarter tank of biomethane remaining. At 44-tons, the 6x2s with double-deck trailers are covering up to 350 miles between refills, which fits Asda’s route network perfectly. Refueling is provided by Air Liquide and Gasrec, via a mix of on-site and open-access facilities. The FH LNGs each feature Volvo’s unique approach to gas engine technology, using small amounts of diesel to initiate ignition of the air-fuel mixture. This enables the Volvo G13C engine to deliver the same 460 HP and 2,300 Nm of torque as its diesel-only counterpart, with matching driveability, reliability and service intervals. Plus, Volvo’s gas powertrain provides engine braking just like a regular diesel – and without requiring a separate retarder which adds weight and complexity.
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Europe’s first carbon neutral LNG fueling station opens in Germany
PAO NOVATEK announced that its wholly owned subsidiary, Novatek Green Energy, has launched its first carbon neutral LNG station in Rostock, Germany. Carbon neutral offsets from a carefully selected portfolio of emission reduction projects,
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including wind generation projects in developing countries, will be used to compensate for the LNG’s carbon footprint sold to end-customers. The certification of emission reduction projects will be performed in accordance with the authoritative international standard Verified Carbon Standard (VCS). As part of its long-term strategy, NOVATEK plans to build a network of LNG fueling stations in Europe to provide heavy duty transport with clean fuel at key transport connecting points between Germany and Poland. Currently, the company operates a network of six LNG stations in the European market as well as 19 regasification facilities. “NOVATEK is actively developing a network of LNG stations both in Russia and Europe as natural gas is an environmentally friendly, clean burning energy fuel source,” said Lev Feodosyev, NOVATEK’s First Deputy Chairman of the Management Board. “Our flagship Yamal LNG project is already one of the most environmentally friendly LNG plants in the world. We recently published our environmental and climate change targets for the period up to 2030, which are aimed at making our contribution to solving the issues of global climate change. The launch of a carbon neutral LNG station in the port city of Rostock is another step in our efforts to reduce our carbon footprint and facilitate the energy transition to a low-carbon future.” Carbon neutral means that Novatek Green Energy compensated for the amount of greenhouse gas emissions from the following scopes: upstream transport of LNG from the supply source at LNG terminals in Europe to the fueling station, fueling station operations and the final consumption of LNG by end-customers.
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New site joins what will be Spain’s largest natural gas station network
Cepsa and Redexis opened their second natural gas refueling station in Zaragoza. This opening is within the strategic agreement announced in 2019, by
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which both companies committed to creating the largest network of natural gas stations in Spain. Redexis made an investment of close to one million euros to carry out the construction of this facility, which supplies both CNG for light vehicles and LNG for heavy transport. For both, the duration of the refueling is between 3 and 6 minutes. The facility is located in Mercazaragoza, the largest agri-food logistics platform in Aragon. It is a strategic location for the transport of goods through which between 5,000 and 8,000 heavy vehicles circulate daily. Likewise, Zaragoza is a logistics hub that connects the main cities of Spain (Madrid, Barcelona, Bilbao and Valencia), and is an important connection point for routes to France by road. During the first months of 2021, both companies plan to start up another four natural gas stations in some of the main national transport corridors; specifically, they will be located at Cepsa’s service stations in the provinces of Madrid (A-4), Cáceres (A-5), Cuenca (A-3), and Jaén (A-4). “We continue to advance in the development of the largest gas mobility network in Spain with the start-up of natural gas stations in strategic enclaves for mobility in our country. The diversification of our offer of energy solutions for light and heavy transport is part of our contribution to the energy transition,” said Santiago Ruiz, director of Cepsa’s Service Station Network. Likewise, Javier Migoya, Redexis B2B director, commented: “From Redexis and together with Cepsa, we continue to bet on the creation of the largest natural gas station network in Spain, building and developing the necessary infrastructures to promote alternative fuels that drive a more sustainable, economic and environmentally friendly mobility in our country.”
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Canadian freight organizations join forces to switch from diesel to CN
Thirteen commercial transportation organizations in British Columbia (BC) continued to progress on their business and climate action goals this year despite the hurdles presented by the COVID-19 pandemic.
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These companies have adopted a combined 144 vehicles fueled by FortisBC’s natural gas in 2020. “BC’s commercial transportation sector accounts for around 40% of the province’s total greenhouse gas emissions each year, so it’s a significant area of opportunity for us to reduce emissions quickly,” said Sarah Smith, director of NGT, regional LNG and Renewable Gases with FortisBC. “I’m so proud to see these organizations, many of them staple names in their respective industries, taking significant climate action amidst this pandemic.” The majority of these new natural gas vehicles are now fueled by CNG, which reduces greenhouse gas (GHG) emissions by up to 25% compared to diesel fuel. In total, these organizations are expected to reduce more than 2,000 tons of CO2 equivalent in emissions annually, about the same as removing just over 430 gasoline vehicles off BC roads each year. These adoptions also come with financial benefits, as these organizations are expected to save up to 45% in fuel costs each year. In addition, FortisBC provides incentives to reduce the initial financial commitments associated with adopting NGVs – in 2020 alone FortisBC provided almost $2.3 million dollars in vehicle capital incentives to customers. “There are over 900 natural gas vehicles on BC roads today, and natural gas, from compressed and liquefied to renewable gas, can make meaningful emission reductions immediately,” added Smith. “But clearly the value extends deeper than that. Adopting these vehicles is also easier on your wallets and we’ll provide incentives to help the transition.” Advancing natural gas for medium and heavy duty vehicles, from truck fleets to buses, is a key avenue towards FortisBC’s 30BY30 target, an ambitious goal to reduce its customers’ GHG emissions by 30% by 2030.
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Italy: Snam plans net zero emissions by 2040, strong bet on NGV mobility
Snam CEO Marco Alverà has presented the 2020-2024 plan with approx. € 7.4 billion in investments (compared to the € 6.5 billion of the 2019-2023 plan), approved by the Board of Directors chaired by Nicola Bedin.
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Snam is committed to achieving carbon neutrality by 2040, in line with the 1.5° C containment target set by the Paris Agreement, thus further consolidating its ESG (Environmental, Social and Governance) leadership.
“The 2020-2024 plan opens a new phase in the history of Snam, which in the climate challenge is ideally positioned to play an important role in the energy transition, with a long-term vision consistent with its purpose and European objectives. Snam will be one of the first energy companies to reach carbon neutrality in 2040 and provide a wide contribution to the decarbonization of the system through the development of green gases and, in particular, hydrogen,” said Alverá. The enabling of the infrastructure to transport increasing quantities of renewable gas and the new activities in the energy transition will also make it possible to contribute to the general reduction of emissions in the territories in which Snam operates: in 2024, the company will allow the system to avoid emissions of over 600,000 tons of CO₂ equivalent, also thanks to the production of biomethane, energy efficiency initiatives and sustainable CNG and LNG mobility projects. For the period 2020-2024, Snam’s investments in energy transition activities will amount to approximately € 720 million, almost doubled compared to the previous plan, with an annual contribution to EBITDA of € 150 million from 2024. Regarding sustainable mobility, Snam4Mobility provides integrated services for “smart green” CNG, LNG and biomethane transportation, building distribution infrastructure and supplying components for distributors (compressors, dispensers) of which, through Cubogas, it is among market leaders. At the end of the plan, the company expects the construction of 142 new refueling stations and the expansion of the offer for heavy vehicles also thanks to the activation of a new small-scale liquefaction plant and the adaptation of the Panigaglia LNG terminal for truck-loading services for transport. In addition, over the course of the plan, Snam4Mobility plans to launch the first five hydrogen stations. Approximately € 150 million of investments are planned to 2024.
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Gas load management: CNG stations to remain closed in Sindh for 24 hours
Authorities in Sindh announced a 24-hour closure of compressed natural gas (CNG) stations in the province part of the gas load management plan. All CNG stations in the province will remain shut from 8am
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Friday till 8am Saturday, marking the third instance of CNG stations being closed in the province during the current week. However, Sui Gas officials clarified that stations selling RLNG will remain open and RLNG supply will not be impacted by the current gas load management measures. Domestic consumers from various areas of Karachi also reported a decrease in gas pressure. Areas include Korangi, SITE, North Karachi, Orangi Town, Liaqatabad, Lyari and others. Reports of a gas shutdown have been received from areas of Urdu Bazaar, Sher Shah, New Karachi Dua Chowk and Chakiwara market. Gas supply was also affected in the localities of Banaras Chowk, Quaidabad, Gulshan Buner, Landhi 89, Landhi 4, Gulistan Johar Block 19 and various localities in Korangi. Earlier, Sindh Information Minister Syed Nasir Hussain Shah alleged that the Centre has been deliberately depriving Sindh of gas. In a statement, the provincial minister accused the federal government of violating Article 158 of the Constitution, which, he said, stated that a province had the first right to use a resource it produced. When the province’s needs are met, then the resource may be supplied elsewhere, he added. The minister lamented that Sindh was facing a gas shortage despite generating 68 per cent of Pakistan’s gas.
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Nigeria launches ambitious plan to convert car fleet to gas
Nigeria will offer free conversion to enable some cars to run on gas, and its Central Bank will make some 250 billion naira ($656.69 million) available for infrastructure in a bid to expand gas use and cut reliance on imported fuel,
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the government said on Tuesday (Dec1). Africa‘s largest oil exporter is aiming to have 1 million gas-powered cars by 2021, and to convert of 40 per cent of its fleet within 10 years. The plan, launched by President Muhammadu Buhari, is part of the oil- and gas-rich nation’s effort to free itself of costly gasoline subsidies while avoiding public anger over higher pump prices. Nigeria removed gasoline pump price controls earlier this year, but is still setting prices ex-depot, which has made it difficult for private companies to import fuel. NNPC’s oil refineries were completely shut down earlier this year in advance of hoped-for overhauls, leaving the nation entirely dependent on imported fuel. NNPC head Mele Kyari said that select NNPC stations across Nigeria will offer free conversion of “some cars” to enable them to run on liquefied petroleum gas (LPG) or compressed natural gas (CNG). There are currently 80 locations in the country capable of fuelling the vehicles. Nigeria has the world’s ninth-largest gas reserves, and vehicles that run on gas are generally cleaner and better for the environment. But gas must be cool or pressurised for distribution, and the infrastructure for transporting, processing and distributing it would cost billions of dollars. ($1 = 380.7000 naira) (Reporting By Libby George Editing by Chizu Nomiyama).
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Spanish bus & coach manufacturer expands green offering with NGVs
As a result of its effort to offer innovative and sustainable solutions to the different future mobility needs, the Irizar Group is incorporating CNG and LNG into its range of technologies.
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The new vehicles have a range of up to 500 km in the CNG version and twice as long in the LNG technology. Accordingly, Irizar is widening its range of efficient and sustainable products and technological solutions in operational terms and is becoming the brand that includes all the technologies currently on the market: from integrated and conventional coaches with Euro 6D diesel to natural gas or biogas buses and 100% electric vehicles, for urban and interurban services. The range of NGVs includes the Irizar i4 and Irizar i3le models from 12 to 15 meters in CNG version, and Irizar i4, Irizar i6 and Irizar i6S from 12 to 15 meters in the LNG version, all on Scania chassis. The first vehicle equipped with this technology is the Irizar i4 class II model, a versatile and ideal coach for metropolitan, commuter, school transport or business coach. This is an Irizar i4 version H, 12.920m long vehicle. Its unmistakable attributes of versatility are complemented the range of current propulsion technologies available in integral or conventional vehicles on chassis. With a total weight of about 750 kg, it incorporates 4 longitudinal type IV CNG cylindrical tanks, with a total volume of 1,260 dm3 and an approximate gas capacity of 240 kg. However, depending on the needs of the operator, it can be fitted with an additional tank to increase range. It is also fitted with a filling panel with two gas outlets and a pressure gauge. The integration of the storage tanks preserves the aesthetics and aerodynamics of the vehicle and means it can perform the same type of service as a similar diesel vehicle with optimum road holding and maximum safety. The vehicles are equipped with the same air conditioning system as diesel vehicles. The height of the interior ceiling, the interior luggage racks and the luggage compartment capacity are the same as the diesel version. The driver has a gas control screen to comply with all safety protocols. This is used to detect leaks and monitor the start-up of the water additive aerosol fire extinguishing system. These vehicles comply with Regulation R66.02 even with 700 kg of extra weight on the roof and with the thermal safety and mechanical safety protocols, in accordance with Regulation 110.
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HAM expands natural gas refueling network in Netherlands and Belgium
HAM Group continues to expand its network of LNG service stations in Europe, thanks to the agreement reached with the Dutch company PitPoint,
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which will allow the HAM Card users to refuel at two new stations in Belgium and the Netherlands. The first of these stations is located in Rekkem, Belgium, close to the French border and close to the E17/A14 motorway, between Kortrijk and Lille, which makes it a favorable location for transport throughout the Benelux. Regarding the Netherlands site, it is the Zwolle station, which is next to the N758 and 10 minutes from the A28, motorway that crosses the Dutch provinces of Utrecht, Gelderland, Overijssel, Drenthe and Groningen. The LNG stations of PitPoint. LNG are unmanned and accessible 24/7. Step-by-step refueling instructions are available in 11 different languages and can be selected via the top button of the pump display. In addition, the stations in Zwolle (the Netherlands) and Rekkem (Belgium) have extra cold LNG (for a better range) available, especially for Volvo trucks. PitPoint will soon open new LNG and CNG stations in Germany, which will be added to the network of service stations that Grupo HAM makes available to all its customers. Currently, HAM Group has a refueling infrastructure made up of 76 LNG and/or CNG stations, of which 30 are in Spain, 16 in Italy, nine in Belgium, 14 in the Netherlands and seven in France, all located in strategic points for road transport.
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LNG as a Marine Fuel/Shipping
Gasum expands bunkering services: First operation in Emden completed by Coralius
Gasum, a Finnish company, continues to expand its bunkering services towards continental Europe by completing its first bunkering operation in Emden, Germany. The bunkering was successfully
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performed on November 22 to SIEM Confucius by Gasum’s liquefied natural gas (LNG) bunker vessel Coralius. By expanding to new waters, Gasum further strengthens its bunkering services for maritime companies. Emden port, located in the northwest Germany, is one of the most significant car shipping ports in Europe and the latest area of expansion for Gasum’s bunkering operations. On November 22, Gasum’s Coralius supplied LNG to SIEM Car Carrier’s vessel, SIEM Confucius. This large car carrier operates trans-Atlantic and her regular route includes USA, Mexico and back to Emden port every 50 days. Already in the end of June, Coralius proved her availability in the ARA area (Amsterdam-Rotterdam-Antwerp), bunkering in the port of Rotterdam. Her main operating area being in Skagerrak, Coralius has lately expanded her services further west and continental Europe thus making LNG more available for companies operating also outside the Nordic and Baltic seas. “We are very proud to serve a new shipping customer and satisfied as we were able to provide SIEM Confucius with LNG in Emden port. As one of the most important roll-on/roll-off ports in Europe, Emden serves as an important milestone in extending our services to maritime companies operating in the region. It’s evident that the more popular LNG becomes in maritime transport, we too must become even more flexible and bring our services to wherever they are needed,” says Gasum’s Jacob Granqvist, Sales Director for Maritime. The use of LNG contributes significantly to the decarbonization of the shipping industry. It reduces greenhouse gas emissions by at least 20% as well as improves local air quality. In addition, it meets all current and forthcoming regulations set out by the International Maritime Organization and EU regulations.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Mixed Renewable Gas Unit: Galician project will now investigate creation of green hydrogen and synthetic gas
The research projectMixed Renewable Gas Unit, funded by the Galician Innovation Agency (GAIN) and developed by Naturgy, EnergyLab and Edar Bens, continues its R&D&I work after receiving additional funding for
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its consolidation and for the launch of new lines of development. In this new phase, the work carried out so far in the Mixed Unit of biogas and biomethane Research will be completed, which has achieved remarkable results such as the start-up of a membrane-based purification plant and of the first biological methanization plant in Spain. The biomethane generated in these pilot projects is already being used as an alternative fuel in Edar Bens’ fleet of vans and in a converted urban bus.
The new stage of the project, which will last until 2023 and has a budget of more than 2 million euros, is also going to bet on the research of other renewable gases such as green hydrogen and bio-syngas, which will allow evaluate its impact on current infrastructures and final consumers.
“The Mixed Unit is a clear commitment from Edar Bens, Naturgy and EnergyLab to the use of energy resources that are more respectful of the environment, thus laying the foundations for the energy transition, and with a firm vocation to respond to the concerns associated with current problems such as climate change and environmental deterioration,” said the mayor of the A Coruña City Council and president of Edar Bens SA, Inés Rey.
Within the project, five new lines of research will be developed:
- Improved biogas production through co-digestion and nutrient recovery.
- Generation of green hydrogen: thanks to the energy use of the purified water flow, which will be turbined, hydrogen will be generated through the electrolysis of water.
- Biohydrogen production: through dark fermentation, which is a biological process (initial stages of anaerobic digestion) with which hydrogen is generated from the degradation of organic matter.
- Gasification of sewage sludge to obtain bio-syngas (synthetic biogas).
- Study of the impact of the use of different renewable gases and their mixtures, from the point of view of injection into the gas network and their use in stationary and mobile applications (vehicles).
With this, the Unit seeks once again to align itself with the different European policies aimed at achieving economic growth under three fundamental premises: smart growth (through the development of knowledge and innovation); sustainable growth (based on a greener, more efficient in resource management and more competitive economy) and inclusive growth (aimed at reinforcing employment and social and territorial cohesion).
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L.A. County now recycles food waste to produce biomethane for vehicles
As part of its mission to convert waste into resources, the Los Angeles County Sanitation Districts (Sanitation Districts) recently started up a biogas purification system to recycle food waste (from grocery stores
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and restaurants) into renewable vehicle fuel. The Sanitation Districts are a regional public agency that serves the wastewater and solid waste management needs of 78 cities and unincorporated areas in Los Angeles County.
“We’ve been converting food waste into electricity for over six years. With this new biogas purification system, we now also produce renewable natural gas that is used to fuel vehicles like cars, buses and trucks. We know that many cities are grappling with how to meet state requirements for recycling food waste and are pleased to offer a complete and cost-effective solution,” said Robert C. Ferrante, Chief Engineer and General Manager for the Sanitation Districts. The Sanitation Districts’ food waste recycling program has several parts. Waste haulers collect food waste that has been placed in separate bins by their customers. The loads of food waste are delivered to the Sanitation Districts’ Puente Hills Materials Recovery Facility in Whittier. At this plant, the food waste is loaded into specialized equipment that removes contaminants like plastic bags and forks and blends the food waste into a slurry. The Sanitation Districts then transport the slurry to their wastewater treatment plant in Carson. Waste haulers who have their own processing equipment also deliver slurry to the Carson plant. The slurry is added to the plant’s digesters, which are large, sealed tanks where microorganisms convert food waste and wastewater solids into biogas. The biogas is used in two ways. Some is sent to the Sanitation Districts’ power plant located at the Carson facility where the biogas is converted to electricity that runs the treatment plant. The remaining biogas is sent to the new purification system to make fuel grade renewable natural gas. The purification system is capable of producing the renewable natural gas equivalent of 2,000 gallons of gasoline per day. This biomethane is dispensed at the Sanitation Districts’ nearby fueling station that is open to the public.
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Scania, Naturgy and Calvera partner to launch Zaragoza’s first biogas bus
In a commitment to sustainable mobility, the Zaragoza Area Transport Consortium presented the first Scania biomethane-powered bus, which will be operated by the transport company Grupo Aragón
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Tours for the Consortium’s line 210 that runs between Zaragoza and Villamayor de Gállego. Naturgy will be the company in charge of supplying biomethane through Grupo Industrial Calvera’s virtual gas pipeline, which will be transported to the point of refueling. The pilot project is based on the production, transport and vehicle use of renewable gas and contributes to achieving the Sustainable Development Goals established in terms of decarbonization, circular economy, diversification and energy independence. Biomethane comes from a Naturgy production plant in Vila Sana (Lleida) and is obtained from the purification of biogas produced by anaerobic digestion of pig slurry generated in the annexed farm. This circumstance allows a great environmental benefit by taking advantage of the waste to produce the energy that moves the bus. With this project, Calvera starts up the first virtual biomethane gas pipeline in Spain, which integrates 10 gas storage modules on a specifically developed trailer. In addition to storing the fuel at high pressure (250 bar) and transporting it from the generation plant to the point of consumption, Calvera’s NG TRUCK allows dispensing it to the Scania vehicle that is going to use it under the required conditions. This system also enables the future possibility of scaling or expanding the consumption flow, as well as allowing a distributed use of biomethane, carrying out the substitution of fossil fuels in several fleets or points of refueling. The Scania bus can be propelled indistinctly by CNG or biomethane, it offers 340CV and an automatic gearbox that is a market leader with more than 1,000 units circulating in Spain. The vehicle has an aluminum body with numerous security and accessibility systems and can be configured as a Midibus, whose reduced and efficient size allows it to move through the center of a large city or with large and accessible platforms of 12m, 15m and 18m capable of operate within cities, on commuter consortium lines, or even on long-distance lines with up to 800km of range.
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