NGS’ NG/LNG SNAPSHOT – Jan-16-31, 2024
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
AG&P Pratham Opens 14th CNG fueling Station in Chittoor
CHITTOOR: One of the leading players in the City Gas Distribution (CGD) space in India, AG&P Pratham today announced the expansion of its Compressed Natural Gas (CNG) network, by increasing its total footprint to 14 CNG stations in Chittoor. Launched as a DBS (Daughter Booster Station) at a prime locality in Palamaneru, Chittoor, this station will further strengthen AG&P Pratham’s commitment towards ensuring uninterrupted supply of CNG to the vehicle owners of 3-wheelers, Cargos, Cars, Mini Commercial Vehicles (MCV), Light Commercial Vehicles (LCV) variants, and buses.
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The 14th CNG station is located inside a Bharat Petroleum Corporation Limited (BPCL) premise and was inaugurated by Mr. Ganga Niranjan Reddy- DTC, Chittoor district and Mr. Madusudhan RTO Inspector – Palamaneru, Chittoor. This strategic location ensures accessibility for residents and travellers, with National Highway 40 linking it to major cities like Chennai, Bangalore, and Hyderabad. AG&P Pratham extends its CNG services beyond Palamaneru, with stations also situated in Tirupati, Tirumala, Srikalahasti, Chittoor, V-Kota, Kuppam, and Madanapalle. The company has a total of 51 stations in Andhra Pradesh.
Mr Chirag K Bhanvadia, Regional Head, AG&P Pratham, expressed that “We have been very focused on expanding our natural gas distribution network across Andhra Pradesh in line with the nation’s crucial goal of green energy consumption. The CNG services offered by AG&P Pratham cater to a wide range of vehicles, including autos, cars, small commercial vehicles, trucks, tractors, and buses. The newly launched CNG station in Palamaneru, Chittoor, provides an eco-friendly fuel alternative for both private and public transportation, aligning with AG&P Pratham’s commitment to fostering a cleaner, more sustainable future. With a focus on environmental responsibility and the promotion of cleaner energy solutions, AG&P Pratham continues to drive innovation in the CGD industry. The collaboration with Bharat Petroleum Corporation Limited strengthens our resolve to make CNG more accessible and contribute to India’s transition towards a greener tomorrow.”
The adoption of CNG powered vehicles helps the vehicle owners in cost savings, with fuel expenses reduced by up to 45%. Furthermore, the vehicles maintain efficient engine health for extended periods, leading to higher mileage and reduced maintenance costs. Moreover, using CNG in vehicles results in lower emissions, reduced carbon content, and cleaner combustion, contributing to a safer and more environmentally friendly option for transportation.
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GAIL Gas Limited ignites awareness with the launch of Piped Natural Gas (PNG) campaign in Mangaluru
Mangaluru, Jan 27, 2024: GAIL Gas Limited (GGL), under the aegis of Petroleum and Natural Gas Regulatory Board (PNGRB), proudly inaugurated the Piped Natural Gas (PNG) campaign on Friday, ushering in a new era of sustainable energy in Mangaluru. The inauguration of the campaign was done by Sai Sankar B General Manager (CGD) Projects & Head GGL Mangaluru, by establishing a camp at GAIL Gas COCO CNG Station Panambur in Mangaluru city. To amplify the impact, a vibrant walkathon (rally) on theme “ Use PNG, Save Nature” was also organized concurrently by GGL Employees and their families from GGL COCO Station to GGL Office in Panambur . Further, A PNG March was organized by GGL employees in Karnataka Housing Board (KHB) Colony Bondel to promote PNG awareness and to sensitize the residents.
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Running from 26th January to 31st March 2024, the PNG campaign is a concerted effort to raise awareness about the benefits of Piped Natural Gas like Economical, Convenient, Safe, Environment friendly and 24×7 Supply etc. to extend its reach to every household in the authorized area. Embracing the theme “PNG Connected, Life Upgraded,” the campaign aims to encourage city residents to adopt PNG as the preferred fuel for their kitchens, contributing to a cleaner and healthier environment.
During the launch event, Sai Sankar B GM GGL Mangaluru passionately urged city residents to embrace PNG, positioning it as the fuel of the 21st century and a key step towards creating a pollution-free city. PNG, known for its convenience, economic viability, safety, and sustainability, is already the preferred choice in households across smart cities in India. Thanks to the expansion facilitated by City Gas distribution(CGD) projects, PNG is now available in areas of Panambur, Baikampady Industrial area and Bondel and soon going to reach in Mangaluru City and Surathkal area. As of now, 15 Industrial units and 14 commercial establishments along with 85 Households in Baikampady Industrial Area are enjoying the benefits of PNG. Furthermore, there are 23 operational CNG stations in Dakshina Kannada including 1 Company owned and Company Operated (COCO) CNG Station in Panambur Mangaluru for Automotive segment.
As the campaign unfolds over the coming weeks, GAIL Gas Limited aims to not only raise awareness but also underscore the importance of PNG as a convenient, economical, safe, and eco-friendly alternative for households in Mangaluru. Join us in the movement towards a cleaner, greener future – where PNG fuels not just kitchens but also upgrades lives.
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Out of four lakh registered households, 80,000 availing PNG supply in Bengaluru through GAIL Gas
Under CGD project, GAIL Gas has been providing Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) to domestic, commercial and industrial customers. GAIL Gas Limited, the City Gas Distribution (CGD) company, has a goal of adding 50,000 domestic connections for PNG supply every year in Bengaluru. However, many problems, especially that of having to reroute their pipelines due to other civic utilities using the same route, have affected the progress of the project. Before the end of this financial year, the company plans to achieve a goal of 35,000 new connections.
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“This year, we could not achieve the 50,000 target mainly because we could not work properly for two to three months due to the State elections,” Hirdesh Kumar, Chief General manager (CGD) & Officer In- Charge Bengaluru, GAIL Gas Limited told The Hindu.
35 more CNG stations
Under CGD project, GAIL Gas has been providing Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) to domestic, commercial and industrial customers.
Since February 2015, after being authorised by Petroleum and Natural Gas Regulatory Board (PNGRB), GAIL Gas has laid around 2,000 kilometres of pipeline in Bengaluru. While 2.5 lakh households have been connected with the pipeline, only 80,000 households have been availing supply of PNG. A total of 4 lakh residents from the city have registered for domestic PNG supply, officials from GAIL Gas said.
“All the prominent builders, Government, PSU/Army /Institutions Quarters and colonies are opting for PNG,” they added. Apart from domestic supply, GAIL Gas is also supplying PNG to around 215 commercial establishments, 178 industrial units and has also set up 102 CNG stations in the city. By March 2024, the company plans to set up 35 more CNG stations.
Limitations in urban localities
Despite citizens becoming more aware of the benefits of natural gas, GAIL Gas continues to face some hurdles, which are unique to urban localities in the city. “Bengaluru has a lot of potential when it comes to natural gas supply, but there are several limitations to lay pipeline. Sometimes we have to reroute already laid pipelines due to Bangalore Electricity Supply Company (Bescom) and Bangalore Metropolitan Rail Corporation Limited (BMRCL) network expansion,” Mr. Kumar said.
Officials also said that the presence of other utilities also makes it difficult to excavate in certain areas as it would not be safe. The huge amount of traffic on roads also results in less excavation space and less work area to lay pipelines. “Sometimes, there will also be delays in obtaining approval from BBMP as it has to pass through various levels,” Mr. Kumar said.
In October last year, the State cabinet gave its nod to implementation of the State policy for the development of CGD network in Karnataka. GAIL Gas expects this move to accelerate the implementation of PNG and CNG projects.
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RMEL inaugurates its first LCNG station in Namakkal, Tamil Nadu
The IRM Energy Limited (IRMEL) inaugurated its first Liquified Compressed Natural Gas (LCNG) station in Namakkal district on Wednesday.
In a release, it said that IRM Energy supplies natural gas to more than 59,000 domestic households and 490 industrial and commercial establishments, besides operating 74 CNG stations in the geographical areas (GA) of Gujarat, Punjab, and
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Tamil Nadu. IRMEL has been awarded authorisation by the Petroleum and Natural Gas Regulatory Board (PNGRB) in March 2022 to develop the city’s gas distribution network in Namakkal and Tiruchi districts. IRM Energy is currently operating seven CNG stations in Namakkal and Tiruchi, GA. Additionally, it has plans to commission a total of 25 CNG stations by March 2024.
On Wednesday, IRMEL established its first LCNG cum mother station and started CNG sales located at Namakkal-Salem Highway in Namakkal. IRMEL has planned to set up 100 CNG stations within the next three years in Namakkal and Tiruchi districts, which will further strengthen the CNG station network and enhance CNG availability for the people of these two districts.
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Natural Gas/ Pipelines/ Company News
Oil India to capture CO2 emissions from Rajasthan natural gas field, store in dry wells
New Delhi: Oil India is working on a plan to capture carbon dioxide emitted from its natural gas field in Rajasthan and store it in some of the nearby dry wells, in what could be one of the first such projects in the country. “As part of our net zero plan for 2040, we have identified a lot of initiatives,” Oil India chairman Ranjit Rath told ET.
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Carbon sequestration is one of those initiatives, which Oil India is well placed to undertake as it has deep knowledge of the subsurface and has access to many not-so-successful wells that could be used to store CO2, he said. The company’s field in Jaisalmer, Rajasthan, produces gas with about a quarter of CO2 content. The company is planning to set up a gas sweetening plan, where CO2 will be stripped, rendering the gas from the field more valuable for customers, Rath said.
The company has done some preliminary studies and will soon engage a consultant to prepare a feasibility report for the carbon sequestration project, which will offer a plan on carbon capture, transportation, storage and monitoring, he said.
Five dry wells have been identified for the project and the consultant will select two of these for a pilot. Some dynamic modelling will be undertaken for the pilot.
Carbon capture, utilisation and storage (CCUS) technologies are still advancing and quite expensive today. Multiple projects involving carbon capture and utilisation or storage are currently underway across the globe but most are on a pilot scale.
In India, ONGC and Indian Oil Corporation tied up years ago for a CCUS project but the heavy cost hasn’t allowed it to advance rapidly. Under the project, the CO2 captured from Indian Oil’s refinery in Gujarat is to be transported to ONGC’s oilfield. ONGC plans to inject CO2 into its ageing Gujarat field to boost output.
Globally, oil companies such as ExxonMobil and Saudi Aramco see carbon capture technologies as a key climate solution, expecting them to reduce emissions without disrupting the usual production-consumption cycle of fossil fuels.
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ONGC makes back-to-back gas discoveries in Mahanadi basin block
New Delhi: Maharatna petroleum PSU, Oil and Natural Gas Corporation (ONGC) has made two significant back-to-back natural gas discoveries in a Mahanadi basin deepwater block in the Bay of Bengal as its calculated game plan of venturing into high-risk deep water exploration starts yielding results.
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The firm made the discoveries in the block MN-DWHP-2018/1, which it had won in the third round of auction under the open acreage licensing policy in 2019, two sources with direct knowledge of the development said.
Significantly, the discoveries have been made in an area, which previously was classified as a ‘no-go’ area because of national security interests.
The first discovery, named Uktal, is in 714 metres of water depth and flowed more than 3 lakh cubic metres per day of gas during initial testing, they said, adding the other find is at a water depth of 1,110 metres.
ONGC has notified the discoveries to upstream regulator Directorate General of Hydrocarbons (DGH) and is now doing pool size and commercial viability assessments, they said.
For a nation that imports roughly half of its gas needs, finding new reserves augurs well for its energy security. India is targeting raising the share of natural gas in its energy basket to 15 per cent by 2030 from the current 6.3 per cent and more domestic production will aid that.
Gas is being seen as a transition fuel in India’s journey towards net zero carbon emission by 2070. As the country pivots away from polluting fossil fuels, natural gas with a lower carbon footprint is seen as a bridge fuel.
Natural gas extracted from below ground or sea-surface is used to generate electricity, make fertilisers or turn into CNG to use as fuel in automobiles and piped to household kitchens for cooking purposes. Greater use of natural gas will replace coal in power generation and liquid fuels in industries.
Sources said ONGC was able to fast-track exploration after the government freed almost one lakh square kilometres of area from restrictions for exploring and producing oil and gas.
This area was called a ‘no-go’ area as it was either in the path of missile testing or on a satellite launch route. Restrictions on more than 98 per cent of the ‘no-go’ areas were removed in 2022, allowing for energy companies to send vessels and drillships to find oil and gas.
ONGC acquired 1,432.14 sq km of 3D seismic data in MN-DWHP-2018/1 block (Mahanadi deep-water) and spud well MNDW181H-B-1 in August last year.
The first of its kind under the open acreage licensing policy (OALP) regime, the well has been drilled by the mighty drillship West Polaris.
Sources said these exploration successes in Mahanadi offshore will catalyse opening up new exploration fronts, attracting more investments.
ONGC had last year inked a memorandum of understanding (MoU) with French energy giant TotalEnergies to establish a framework for the exchange of information on deepwater offshore acreage, especially in the Mahanadi and Andaman basins. This was to enable Total to make a decision on participating in ONGC acreage, bringing its superior technical strengths in deepwater exploration and production.
The firm had previously signed heads of agreement with ExxonMobil for deepwater exploration on the country’s east and west coasts. The tie-up with Exxon focuses on the Krishna Godavari and Cauvery basins in the eastern offshore region and the Kutch-Mumbai region in the western offshore area.
The exploration success in the Mahanadi basin will help catalyse the global giants to make an investment decision, sources added.
https://psuwatch.com/newsupdates/ongc-makes-back-to-back-gas-discoveries-in-mahanadi-basin-block
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PNGRB Proposes New 425 KM Natural Gas Pipeline to Boost Energy Security in Southern India
The Petroleum and Natural Gas Regulatory Board (PNGRB) has charted a plan for a new 425-kilometer natural gas pipeline to fulfill the rising energy needs in Kerala and Tamil Nadu. The pipeline, set to originate from the Petronet LNG Limited (PLL) import terminal at Kochi in Kerala, will extend all the way to Thoothukudi, erstwhile known as Tuticorin, in Tamil Nadu, making a strategic pit stop at Kanyakumari.
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Enhancing Natural Gas Infrastructure
PNGRB, the country’s authority for gas pipeline installations, has kick-started the public consultation process for the construction of the Kochi-Tuticorin pipeline. This initiative underscores a significant stride towards boosting the natural gas infrastructure in the region. The enhanced infrastructure is predicted to reinforce energy security and foster the economic development of the southern states of India.
Connecting Major Interconnecting Pipelines
The proposed pipeline will be synchronized with Indian Oil’s Ennore-Tiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Thoothukudi natural gas pipeline at Tuticorin. This strategic connection will enable further transport of gas to pivotal interconnecting pipelines scattered across the country.
Economic and Environmental Impact
The pipeline will facilitate the supply of natural gas – a clean and environmentally friendly energy source – to Southern India. This will not only stimulate economic activities in the region but also provide a cleaner and more efficient energy source for industries, businesses, and households. In essence, the Kochi-Tuticorin pipeline promises to be a catalyst for both economic growth and environmental preservation in the region.
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India working on LNG pipeline from Kochi to Colombo
India is working on setting up a Liquefied Natural Gas (LNG) pipeline from Kochi to Colombo to bring down electricity costs in Sri Lanka, the High Commissioner of India to Sri Lanka Santosh Jha said. Jha expressed these views at a reception hosted at India House on the occasion of the 75th Republic Day of India.Former President Gotabaya Rajapaksa, Former Prime Minister Mahinda Rajapaksa, Prime Minister Dinesh Gunawardena and a number of Ministers were among the guests at the event.
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“Since July 2023, we have started daily flights between Jaffna and Chennai, and launched ferry services between India and Sri Lanka. We are working on building mechanisms to establish the India-Sri Lanka Connectivity Corridor. We are also advancing multiple energy initiatives. These include the power grid connectivity eventually to enable Sri Lanka to export power to India; the multi-product pipeline, which will boost our shared interest in developing Trincomalee as an economic hub; and we are also working to set up a virtual LNG pipeline from Kochi to Colombo to bring down electricity costs in Sri Lanka,” he said.
He noted that India is Sri Lanka’s largest trading partner and in recent years India has also been the largest foreign investor in Sri Lanka.
“India continues to be the largest source of foreign tourists in Sri Lanka. We hope to enhance our economic partnership and enhance Sri Lanka’s export potential through early conclusion of the Economic and Technology Cooperation Agreement, just as the FTA opened new export opportunities for Sri Lanka to India, which now stands at more than 1 billion dollars,” the High Commissioner said.
The Indian diplomat said that India and Sri Lanka are natural partners and are irreplaceable, indispensable, and inseparable as partners.
“Our interests in matters of security or development are intertwined and interlinked. The huge potential our partnership holds and the tangible impact it can have on the lives of the common people drives me to work harder to further deepen and strengthen it. I look forward to your support and cooperation in this regard,” he said.
Tourism Minister Harin Fernando was the Chief Guest at the event. (Colombo Gazette)
https://colombogazette.com/2024/01/27/india-working-on-lng-pipeline-from-kochi-to-colombo/
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Cairn Oil & Gas submits plan to begin production from Gujarat block
Cairn Oil & Gas has submitted a field development plan to produce more than 2000 boe/d day from its Jaya block. The oil and gas exploration and production company had notified gas and condensate discovery of Jaya in its onshore OALP block in the Bharuch district of Gujarat in August 2021.
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Cairn Oil & Gas has submitted a field development plan (FDP) to produce more than 2000 boe/d from its Jaya block in Gujarat, which has the potential to help meet company’s goal of double its production capacity, the Vedanta Ltd subsidiary said on January 11.
This is the first FDP that has been submitted under the Open Acreage Licensing Policy (OALP) regime. The government awarded 144 blocks to various companies under the OALP regime, which provides a single, uniform licence for exploration and production of conventional as well as unconventional hydrocarbon resources.
“We are delighted to have progressed the Jaya discovery to its FDP and are ready to begin production from the Jaya block,” Steve Moore, Deputy CEO, Cairn Oil & Gas, Vedanta Ltd, said in a release.
In August 2021, Cairn Oil & Gas discovered gas and condensate in the Jaya field in its onshore OALP block in the Bharuch district of Gujarat. During the appraisal, the company started test gas evacuations through a truck-mounted Compressed Natural Gas (CNG) kit that provided CNG to nearby gas stations. Cairn has signed a commercial gas sales agreement for gas off-take.
“At Cairn Oil & Gas, driving new exploration is a key pillar as we strive towards our goal of achieving 50% contribution to India’s domestic oil and gas production. This block in Gujarat was one of the initial discoveries for Cairn under India’s Open Acreage Licensing Policy (OALP), and we believe it will contribute to India’s energy requirements,” Moore said.
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PNGRB Calls For Tender To Develop 325 Km Natural Gas Pipeline From Jammu To Srinagar
Petroleum and Natural Gas Regulatory Board (PNGRB), empowered to invite tenders for the installation of gas pipelines nationwide, has initiated the development of the Jammu-Srinagar pipeline by inviting bids. Stretching across 325 kilometres, the pipeline will commence from the endpoint of the Gurdaspur-Jammu natural gas pipeline being implemented by GAIL (India), and end in Srinagar.
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The line will have a minimum capacity of 2 million metric standard cubic metres per day (mmscmd), including common carrier space, and will cater to the natural gas requirement of the picturesque Kashmir valley.
“This significant project aims to introduce the use of gas and contribute to the sustainable development of the Kashmir Valley. It is a significant move to deliver this environmental fuel in a cost-effective manner across the mountaineer region of the Union Territory (UT) of Jammu and Srinagar,” PNGRB said.
The availability of natural gas will stimulate economic activities in the region, providing a cleaner and more efficient energy source for industries, businesses, and households. This, in turn, is expected to contribute to the overall economic development of Jammu and Srinagar.
It may be recalled that the PNGRB in December 2023 had granted approval for initiating the bidding process for the development of natural gas pipeline from Jammu to Srinagar.
The deadline for bid submissions is 13 May. The chosen bidder will be responsible for the installation, construction, and operation of the natural gas pipeline.
It is notable that the bidding round for the award of a license to distribute natural gas in Srinagar valley is currently underway and the bids are expected to be received by mid-January 2024, PNGRB said.
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Asian LNG importers ramp up spot purchases after prices hit 7-mth low
Asian liquefied natural gas importers, including China and India, snapped up liquefied natural gas (LNG) cargoes this week after spot prices of the super-chilled fuel briefly slipped to their lowest levels in seven months, traders said.
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The break in the benchmark Japan-Korea-Marker (JKM) price to under $10 per million British thermal units (mmBtu) on Tuesday – a key psychological threshold level for buyers – drew a flurry of buying from emerging nations as Europe’s demand remains weak this winter despite the lack of Russian gas supply. LNG-AS
Chinese importers secured 5-6 LNG cargoes this week, most of which were bought for under $10/mmBtu, two industry sources said.
A Singapore-based trader said Indian companies including Indian Oil Corp, Bharat Petroleum Corp and Torrent Power had also traded this week, while tenders issued by GAIL and Gujarat State Petroleum Corp will close on Friday.
“The market is busy these days. China is buying a lot, India also,” he said.
“Because of the price drop, people are interested in buying.”
The Electricity Generating Authority of Thailand (EGAT) is also seeking one LNG cargo for delivery in March.
The JKM price for February delivery dipped to $9.809 per mmBtu on Jan. 9, according to S&P Global Commodity Insights, its lowest level since June 13 when it was assessed at $9.744/mmBtu.
The market has since strengthened to $10.133/mmBtu as of Jan. 11, which analysts and traders said may cool demand again.
“I don’t expect this buying interest to continue for long, particularly for Chinese importers, since most tend to become less active around Chinese New Year holiday, and they will also have reduced demand after that due to shoulder-month season,” said Rystad Energy analyst Masanori Odaka, referring to China’s Lunar New Year holiday in mid-February this year.
“On the other hand, India tends to have heightened gas demand for the second quarter of each year, so there may be opportunistic buying from Indian LNG importers … The remainder of winter will largely determine whether China will continue buying after Chinese New Year.”
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Vedanta Claims First Development Plan under India Open Acreage Licensing
Vedanta Ltd. through subsidiary Cairn Oil & Gas has filed a field development plan (FDP) for one of the first blocks awarded under India’s reformed hydrocarbon licensing policy.
The plan for the Jaya block, onshore Gujarat state’s Bharuch district, targets over 2,000 barrels of oil equivalent (boe) per day on average production.
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It is one of 41 areas awarded to Cairn in the inaugural round of India’s Open Acreage Licensing Policy (OALP). “This will be the first FDP submitted in OALP regime, among 144 blocks awarded under 8 OALP rounds by the Government to various companies”, Cairn said in a recent press release.
Approved 2016, the OALP allows developers to carve out areas of their choice based on resource data at the National Data Repository (NDR), which stores exploration and production research results for Indian sedimentary basins. Companies then submit expressions of interest (EOIs), without having to wait for a bidding round. These EOIs form the basis of biannual OALP bidding rounds.
“At Cairn Oil & Gas, driving new exploration is a key pillar as we strive towards our goal of achieving 50 percent contribution to India’s domestic oil and gas production”, Cairn deputy executive Steve Moore said in the announcement.
The project already has a commercial sales agreement, according to Cairn.
Cairn touted an appraisal process that minimized emissions. “Jaya field during its appraisal phase started test gas evacuations in an innovative manner through truck-mounted Compressed Natural Gas (CNG) kits providing CNG to nearby gas stations”, it said.
“This is the first-of-its-kind facility where sales through a CNG cascade system is [sic] being done by an E&P [exploration and production] operator from an exploration well. It has enabled Cairn to minimize gas flaring in line with its decarbonization vision while allowing appraisal”.
Besides Jaya, whose discovery was confirmed to local authorities August 2021, several nearby prospects that could be tied back to the main block have been detected, Cairn said.
“Through the FDP for Jaya, Cairn has nurtured a new asset in the western region that will support holistic economic and sustainable development”, it said. “New exploration and production will continue to be the benchmarks of Cairn’s operations to drive energy security for India”.
Cairn has in total 310 million boe in proven and probable reserves, of which 204 million boe are net to Cairn, according to a report by the company May 25, 2023.
It has 62 licenses in the South Asian country, “which are estimated to contain over 3 Bboe [billion barrels of oil equivalent] of gross unrisked Prospective Resources”, Cairn said then. “The Company plans to drill up to 20 exploration wells in the next two years targeting approximately 500 MMboe gross unrisked Prospective Resources”.
Cairn was under a Scottish oil and gas exploration company until Vedanta acquired it 2011.
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Policy Matters/ Gas Pricing/ Others
12th CGD bid round: PNGRB receives 20 bids from 8 entities for 6 GAs
PNGRB has received a total of 20 bids from eight entities against six GAs put up on offer under the 12th City Gas Distribution (CGD) bid round
New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) has received a total of 20 bids from eight entities against six Geographical Areas (GAs) put up on offer under the 12th City Gas Distribution (CGD) bid round. PNGRB has received six bids for Meghalaya state, four bids each for Sikkim and Nagaland state, three bids for Manipur, two bids for Arunachal Pradesh state and one bid for the Union Territory of Jammu and Kashmir, said the PNGRB.
PNGRB had invited bids under the 12th CGD Bidding Round on October 13, 2023 for seven GAs, covering five North East states viz, Arunachal Pradesh, Meghalaya, Manipur, Nagaland and Sikkim and UTs of Jammu & Kashmir and Ladakh. The last date for bid submission was January 11. The technical bids were opened on January 15 for all these GAs.
“Investors responded enthusiastically to this round, submitting a total of 20 bids by 8 entities against 6 GAs (Meghalaya State – 6 bids, Sikkim State – 4 bids, Nagaland State – 4 bids, Manipur State – 3 bids, Arunachal Pradesh State – 2 bids, UT of J&K – 1bid). Barring the UT of Ladakh, North East States and UT of J&K has received bids reposing confidence in the future of natural gas,” said the PNGRB.
12th CGD bid round will improve coverage of mainland of India to 100%
In a significant stride towards achieving 100 percent coverage of the country’s area (except islands) for the development of CGD network, PNGRB organised roadshows in New Delhi and Shillong during November-December 2023.
12th CGD bid round: PNGRB receives 20 bids from 8 entities for 6 GAs
“This initiative would help in creating a robust CGD infrastructure and play a significant role in transforming to a gas-based economy. This would bring investment of more than Rs. 35,500 crore and generate employment. PNGRB thanks the entities for their active participation in this CGD bidding round. With the above bidding round, the mainland of India would receive nearly 100 percent coverage of natural gas as a clean cooking, transport and industrial fuel,” said the PNGRB.
https://psuwatch.com/newsupdates/12th-cgd-bid-round-pngrb-receives-20-bids-from-8-entities-for-6-gas
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EXTRA
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LNG Use / LNG Development and Shipping
Mahanagar Gas forms JV with Baidyanath LNG to aid transportation sector
City gas distribution company Mahanagar Gas (MGL), has announced the formation of ‘Mahanagar LNG’, a joint venture (JV) with Baidyanath LNG. This partnership marks the first venture of its kind in India, focusing on developing liquified natural gas (LNG) infrastructure for the transportation sector.
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The JV aims to cater to the rising demand for clean and sustainable energy solutions, particularly in the long-haul and close loop transportation segments, contributing to the decarbonisation of the trucking industry. Foraying into adjacent areas, the JV targets to set up six LNG stations in Maharashtra in the first phase, and expand its footprint pan-India.
The partnership is set to aid long-haul heavy-duty vehicles in transitioning from diesel to LNG, thereby reducing carbon emissions and increasing fuel efficiency, thus redefining the sector. It further allows for combining strengths towards establishing a robust platform to address the growing demand for LNG, and drive innovation, sustainability, and growth in the sector, marking a step forward in India’s pursuit of clean energy.
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Norway’s Crown LNG to Spend $1 Billion on India Regas Terminal Counting on Mounting Demand
(Bloomberg) — Crown LNG will invest more than $1 billion in an Indian liquefied natural gas import terminal that it aims to open in 2028, the Norwegian company’s chief executive officer said. Indian gas demand is strong and likely to keep growing, but it is currently limited by the need for affordable supplies, Swapan Kataria said in an interview in New Delhi. LNG is likely to become cheaper due to increases in global capacity through the end of the decade, he said.
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Prime Minister Narendra Modi has set a goal of raising the share of gas in India’s energy mix to 15% by 2030 from 6%, which has led to a frenzy of investments in infrastructure. Six out of the seven operational LNG import terminals currently running at less than half of their capacity, however, casting doubts on the viability of future projects.
Crown’s planned 7.2 million tons LNG import terminal to be built in Kakinada, in the state of Andhra Pradesh, will be India’s second largest, according to government data.
The firm is set to go public in the US via a merger with publicly traded Catcha Investment Corp., which will help it raise funds for its anchor projects in Kakinada and Grangemouth, in Scotland, Kataria said.
India’s LNG demand will hit 72.9 million tons a year by the end of the decade from an estimated 20.2 million tons last year, according to Bernstein analysts.
https://finance.yahoo.com/news/norway-crown-lng-spend-1-064412204.html
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India’s LNG imports rise
India’s liquefied natural gas (LNG) imports rose in December compared to the same month in 2022, according to the preliminary data from the oil ministry’s Petroleum Planning and Analysis Cell. The country imported about 2.39 billion cubic meters, or about 1.8 million tonnes of LNG, in December, a rise of 12.1 percent compared to the same month in 2022, PPAC said.
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During April-December, India took 23.93 bcm of LNG, or some 17.4 million tonnes, up by 14.2 percent, PPAC said.
India paid $1.1 billion for December LNG imports, the same amount as in the year before, and $9.9 billion in April-December, down from $13.7 billion in the year before, it said.
As per India’s natural gas production, it reached 3.13 bcm in December, up by 6.1 percent compared to the corresponding month of the previous year.
During April-December, gas production rose by 5.2 percent to about 27.2 bcm, PPAC said.
At the moment, India imports LNG via seven facilities with a combined capacity of about 47.7 million tonnes.
India’s Adani and France’s TotalEnergies started supplying natural gas in April 2023 to the grid from their 5 mtpa Dhamra LNG import facility located in Odisha, on India’s east coast.
During April-November, Petronet LNG’s 17.5 mtpa Dahej terminal operated at 94.4 percent capacity, while Shell’s 5 mtpa Hazira terminal operated at 34.6 percent capacity, PPAC said.
The Dhamra LNG terminal operated at 25.4 percent capacity, it said.
https://lngprime.com/asia/indias-lng-imports-rise/102645/
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GAIL Embarks First US LNG Cargo Sails to India, Boosting Energy Security
New Delhi: Gas Authority of India Limited (GAIL India) Urja LNG vessel embarked on its first laden voyage from Cove Point, USA, to the shores of India on January 22, 2024.
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Team GGULL, Cove Point LNG, and Mitsui OSK Lines (MOL) were on the deck of GAIL Urja to flag off the vessel and mark the moment of its first voyage.
On this occasion, the company mentioned, “As we carry the promise of sustainable energy across international waters, GAIL Urja symbolizes the seamless connection between the two continents.”
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India’s GAIL and Vitol Asia sign 1 million mt/year LNG supply contract
India’s state gas company GAIL and commodity trader Vitol Asia have signed a long-term LNG deal for around 1 million mt/year for a period of about 10 years, commencing 2026, they said Jan. 5. Under this deal, Vitol will deliver LNG from its global LNG portfolio to GAIL in India on a pan-India basis, they said in a statement.
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This long-term LNG deal with Vitol will augment GAIL’s large LNG portfolio and contribute to bridging India’s demand and supply gap of natural gas, Sandeep Kumar Gupta, GAIL chairman and managing director, said in the statement.
GAIL’s marketing director Sanjay Kumar said at an event in Singapore that the company was signing the deal as demand for natural gas in India was consolidating and the long-term contract was part of negotiations GAIL had carried out with various LNG suppliers.
GAIL had been in talks with suppliers from the Middle East and the US in 2023 before the deal with Vitol, which was made on a DES basis at a price linked to crude oil, according to market sources. S&P Global Commodity Insights had reported on an imminent deal of 1 million mt/year at the end of 2023.
GAIL currently has two long-term agreements to buy a combined 5.8 million mt of LNG from the US on an FOB basis and a 2.5 million mt supply contract with Germany’s state-owned Securing Energy for Europe GmbH on a DES basis. GAIL’s long-term US contracts are linked to Henry Hub while its contract with SEFE is linked to crude oil prices.
Before GAIL, Indian Oil Corp. signed binding heads of agreement deals with Abu Dhabi National Oil Co. LNG and TotalEnergies.
IOC’s deal with ADNOC LNG is for 14 years for 1.2 million mt/year, and with TotalEnergies for 10 years for 800,000 mt/year. The deals are linked to oil prices on a DES basis.
Petronet LNG Ltd., partly owned by GAIL, is still in negotiations with QatarEnergy to extend its long-term agreement beyond 2028 after it expires. Petronet currently receives 8.5 million mt/year from Qatar’s RasGas.
On Dec. 27, Petronet LNG submitted an exchange filing saying it had executed binding transaction documents, including a lease deed and port service agreement with Gopalpur Ports for setting up a floating storage and regasification unit-based LNG terminal with a capacity of 4 million mt/year in the first phase of the project.
The deal has a provision for converting to a 5 million mt/year land-based terminal at Gopalpur Port in the eastern state of Odisha.
GAIL, which owns and operates a network of over 16,000 km of natural gas pipelines across India, is working on multiple pipeline projects. The company has a 70% market share in gas transmission and a 50% share of gas trading share in India, and it also has a large city gas distribution business.
Vitol has a global LNG portfolio with long-term LNG supply from North America, Africa, the Middle East and Asia, a fleet of LNG vessels and it delivered around 14 million mt/year of LNG in 2022, the statement said.
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Electric Mobility/ Hydrogen/Bio-Methane
100 new biogas plants soon to be established in UP: Hardeep Puri
Lucknow, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday said that 100 new biogas plants will soon be established in Uttar Pradesh. Speaking to reporters in Lucknow before going to the inauguration of the Compressed Bio Gas Plant in Budaun, Puri said that in the last seven years, under the leadership of Chief Minister Yogi Adityanath, the state has shed the label ‘BIMARU’ (sick) state and has done excellent work in every sector.
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“Today a new compressed biogas plant is going to be inaugurated in Budaun and the foundation stone of new compressed biogas plants will also be laid in eight other districts of the state,” he said.
Puri said that the process of land selection for setting up 37 plants is complete.
According to a statement by the UP government, Puri said that the Budaun plant, developed on 50 acres with an investment of about Rs 135 crore, will produce about 14 tonne of compressed biogas every day, and will be instrumental in stubble management.
Earlier, Adityanath called biogas the best option to realise Prime Minister Narendra Modi’s vision of ‘Waste to Wealth’.
Biogas is not only a solution to the problem of smog in NCR (National Capital Region) but also a means to increase the income of farmers, he said.
According to Union Petroleum Secretary Pankaj Jain, under the biofuel policy of UP, there is a provision of a grant of up to Rs 20 crore for the establishment of bioenergy plants.
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India Energy Week to focus on green hydrogen, biogas
The second edition of India Energy Week, scheduled to take place in Goa from February 6-9 is expected to host Energy ministers from 17 different countries, over 35,000 attendees, and more than 900 exhibitors.
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The second edition of India Energy Week, scheduled to take place in Goa from February 6-9 is expected to host Energy ministers from 17 different countries, over 35,000 attendees, and more than 900 exhibitors. Six countries including Canada, Germany Netherlands, Russia, UK, and USA are also expected to put their pavilions.
Addressing the media, Union Minister Hardeep Singh Puri said, “I am pleased to share that this time we will have dedicated 6 country pavilions namely Canada, Germany Netherlands, Russia, UK, and USA.”
The escalating tensions over the Red Sea and its rising impact on trade of different countries is also likely to be discussed, the minister said. He also emphasized on the event’s significance as a platform for growth and development in the energy sector.
“India today on the energy front presents the picture of confidence of positive growth of solutions in many areas. India Energy Week (IEW) represents a golden opportunity to showcase these developments on the energy front and provide the platform for further development and growth in the energy sector,” the minister said.
The conference will also see a special ‘Make in India’ pavilion with more than 300 exhibitors showcasing innovative solutions by Indian MSMEs in the energy sector. The second edition will witness a 30% increase in exhibitors and a 25% expansion in exhibition space. “This scale-up has resulted in a 46% increase in revenue from the exhibition,” Puri said.
Puri also said that there has been about a significant rise in private sponsorship, with an 81% increase in revenue from private firms and a 44% increase in the number of private sponsors. This has resulted in three times the private sponsorship revenue compared to the previous year’s edition.
The conference will likely focus on energy transition practices and include emphasised discussions on promotion and usage of alternate fuels such as green hydrogen and biogas. There will also be a session dedicated on new technical categories like shipping, logistic & supply chain, manufacturing & industrialization, future mobility, and mining & minerals.
In line with India’s G20 priorities, various side events are planned, including discussions on Global South Cooperation, Carbon Capture and Utilisation, PM’s roundtable with Oil & Gas CEOs, and India-US investment roundtables.
“The country’s GDP is over 4 trillion, and by the end of fiscal year 2025, we should be a 5 trillion economy. The growing economy consumes more energy, and that energy is also witnessing a shift towards sustainable energy,” Puri concluded, highlighting the future trajectory of India’s energy sector.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
UK: Shell to develop Victory natural gas field offshore UK
(WO) – Shell U.K. Limited has taken a final investment decision (FID) on the Victory natural gas field in the UK North Sea, approximately 47 km northwest of the Shetland Islands. Once onstream, the field will help to maintain domestically produced natural gas for Britain’s homes, businesses and power generation.
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The Greater Laggan Area (Source: TotalEnergies)
The development will feature a single subsea well which will be tied back to existing infrastructure of the Greater Laggan Area system, using a new 16 km pipeline.
“The UK North Sea is a critical national resource, providing a steady supply of the fuels people rely on today and strengthening the country’s energy security and resilience,” said Shell UK Upstream Senior Vice President, Simon Roddy. “Continued investment is required to sustain domestic production, which is declining faster than the UK’s demand for oil and gas.”
According to the regulator, the North Sea Transition Authority, only 38% of the UK’s 2022 natural gas consumption was domestically produced – the rest was imported.
It is anticipated the Victory field will come online in the middle of the decade and at its peak, produce enough gas to heat almost 900,000 homes per year. This is around 150 MMcfgd (approximately 25,000 boed). Most of the field’s recoverable gas is expected to be extracted by the end of the decade.
Victory’s natural gas will be processed onshore at the Shetland Gas Plant before being piped to the UK mainland to enter the National Grid at St Fergus, where Shell UK is also helping develop the Acorn Carbon Capture and Storage project.
Because Victory will tie back to existing infrastructure, its operational emissions will be lower than for many current UK North Sea natural gas fields.
Shell UK completed the acquisition of a 100% interest in Corallian Energy Ltd in November 2022. The acquisition exclusively comprised the P2596 Victory license to develop natural gas West of Shetland.
Victory is part of Shell UK’s aim to be a major investor in the UK energy system, sitting alongside low-carbon and renewable projects, such as CCS.
https://worldoil.com/news/2024/1/17/shell-to-develop-victory-natural-gas-field-offshore-uk/
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Bangladesh: As local gas runs out, $1.4b pipeline planned to boost imported LNG supply
As Bangladesh is set to import more liquified natural gas (LNG) in the future amid depleting local gas production, the government has planned to build a new gas pipeline for $1.4 billion to channel the additional imports to the hungry national grid.
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The proposed 295km Maheshkhali/Matarbari-Bakhrabad pipeline will be built by 2029 and will supply an additional 1,800mmscfd (million standard cubic feet per day) LNG to feed gas-based power plants, fertiliser plants, and industrial and commercial units, according to the Gas Transmission Company Limited (GTCL).
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The preliminary project proposal for the new pipeline has already been sent to the Planning Commission for approval in principle, said top officials of the GTCL. Loan proposals will be sent to various development partners after the approval.
According to the proposal, the implementation work will start this year and the target is to complete the project by 2029.
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Gas crunch likely to linger for 2 more months on LNG supply disruption
The move for the new pipeline comes at a time when the country’s gas reserve is set to completely deplete by 2033 if no new major discoveries of gas fields are made. By then the demand will be well over 6,000mmscfd.
At present, total gas production in Bangladesh, including imported LNG, is around 3,000-3,100mmscfd, while the demand stands at around 3,700mmscfd, according to the GTCL.
The local gas production is around 2,160mmscfd. Another 850-900mmscfd of imported LNG is being supplied to the national gas grid through Maheshkhali-Anwara, Anwara-Fouzdarhat, and Chattogram-Feni-Bakhrabad pipelines.
Petrobangla Chairman Zanendra Nath Sarker told The Business Standard that the proposed pipeline will directly deliver imported LNG from the proposed land-based LNG terminal to Dhaka.
“A review of how much to import by 2030 is underway. This review will be finalised in the next 15 days to one month. Then the import plan, price will be officially informed,” he said.
The chairman further said the new pipeline is to be built mainly to supply gas to the additional distance from Chattogram’s Anwara. “The existing pipelines are not sufficient to supply LNG to Bakhrabad.”
Energy Secretary Md Nurul Alam told TBS that Matarbari will have 1,000mmscfd land-based LNG terminal in future and contract negotiations are underway for other terminals as well. The new pipelines are being planned considering 5 to 7 year’s demand and imports.
Engr Abu Sayed Mahmud, general manager of GTCL, told the Business Standard that the feasibility study of the project is yet to be completed.
“The actual cost of the project will be known once the study work is completed within the next one year. ” he added.
GTCL’s rationale for new pipeline
Bangladesh has long been facing a gas supply crisis. To address the issue, Bangladesh from 2018-2019 Bangladesh started importing LNG.
Two Floating Storage and Regasification Units (FSRU), each with 500mmscfd capacity, were installed by Excelerate Energy (2018) and Summit (2019) at Maheshkhali. These units used to supply 850-900mmscfd of LNG to the national gas grid.
However, only 400mmscfd gas is being supplied from Maheshkhali as Excelerate’s unit is undergoing renovation.
According to the GTCL, a study found that around 1,500mmscfd LNG can be supplied to the national gas grid using existing infrastructure at full capacity by April 2024.
Furthermore, Summit plans to install a third FSRU with a capacity of 600mmscfd at Maheshkhali, and Excelerate Energy aims to increase its existing capacity by 100mmscfd.
Consequently, a total of 1,700mmscfd of gas is projected to be supplied from Maheshkhali to the national gas grid by 2026.
By 2031-32, this supply is expected to reach 3,700mmscfd, with plans for the installation of a land-based LNG terminal in Matarbari. Additionally, there is an anticipation of potential gas discoveries in the Bay of Bengal.
Taking all these factors into consideration, the construction of the Matarbari-Bakhrabad pipeline is deemed crucial to accommodate this increased gas supply, according to the proposal.
Energy expert Professor M Tamim said to meet domestic demand, there is no alternative to import more LNG. And to import, it will need pipelines for distribution. “However, there is a risk of waste if the pipeline is built before the land-based terminal in Matarbari.”
He said that despite knowing that we do not have enough gas, the government has installed pipelines to supply gas to Rangpur, Rajshahi and Khulna.
“Now the government is not able to earn money for the cost of laying the pipeline as it is not able to collect revenue from it by supplying gas,” he added.
He further said it is important to make a land base station first. After spending $1.4 billion dollars on the pipeline, if it is seen that the landbase station in Matarbari is no longer being built, then the pipeline would be a waste.
Hunt for local supply
Nasrul Hamid, state minister for energy, said on 10 December, that Petrobangla has initiated 46 drillings and is gearing up for an additional 100 for gas exploration. The goal is to extract 500-600mmscfd gas within the next two years.
“By 2027, our gas consumption is projected to reach 6,000mmscfd. We aim to achieve self-sufficiency in gas production by that time,” the state minister added.
Bangladesh’s annual gas demand stands at approximately one trillion cubic feet.
As per the Bangladesh Economic Survey 2023, the country’s total gas reserves amount to 40.23 trillion cubic feet, with proven and probable recoverable reserves at 28.62 trillion cubic feet.
The cumulative gas production from 1960 to 2022 reached about 19.94 trillion cubic feet, leaving remaining recoverable reserves at 8.68 trillion cubic feet as of January 2023.
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SINGAPORE: Sinopec says more deep tight-gas reserve certified in Sichuan Basin
SINGAPORE, Jan 17 (Reuters) – China’s Sinopec Corp said on Wednesday that the Chinese government had recently certified 133 billion cubic meters of proven geological reserves of natural gas in its operation in southwest Sichuan basin.
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The new reserve, certified by the Ministry of Natural Resources, marks the birth of yet another sizeable tight gas field as the state oil and gas giant steps up drilling deep and hard-to-extract reservoirs, the company said in a statement.
Sinopec has drilled 21 new exploration wells at the Hexingchang field that straddles the Deyang and Mianyang cities of Sichuan province, 4,500 meters to 5,500 meters below the surface, Sinopec said.
Each of these wells have yielded an average of 155,000 cubic meters of daily output, it added.
Tight gas refers to natural gas found in reservoir rocks with low permeability, most often sandstone.
Dominant state energy producers have in recent years stepped up development of geologically challenging oil and gas reservoirs, including those holding shale gas, shale oil and coalbed methane.
(Reporting by Chen Aizhu, Editing by Louise Heavens)
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Natural Gas / LNG Utilization
HEAD
Vietnam: Tokyo Gas and partners to work on LNG-to-power project in Vietnam
Japanese companies Tokyo Gas and Kyuden, along with Vietnam’s Truong Tan Vietnam Group, have established the Thai Binh LNG Power joint venture (TBLP) to work on an LNG-to-power project in Thai Binh Province, Vietnam.
The venture will develop, construct and operate a floating LNG import terminal and a natural gas-fired power plant in Tay Binh Province, procure LNG and sell electricity to Vietnam Electricity Corporation, Tokyo Gas revealed, noting that, moreover, TBLP will conduct a business feasibility evaluation of the LNG-to-power project.
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In the business feasibility evaluation, Tokyo Gas said the venture will conduct verification based on economic rationality and technical feasibility, select an EPC operator and formulate an LNG procurement plan, with the aim of starting commercial operations by 2029.
“We will continue to leverage the experience and know-how we have accumulated to date to contribute to the development and low-carbonization and decarbonization of Asian countries through the expansion of LNG infrastructure business, including this project, and to support Tokyo Gas Group’s management vision ‘Compass 2030’,” Tokyo Gas stated.
To note, this is Tokyo Gas Group’s second LNG-to-power project in Vietnam, following the onshore LNG import terminal and natural gas-fired power plant project in Quang Ninh Province.
As for the company’s other LNG activities, at the beginning of January 2024, it was announced that there are plans for an agreement with Japan’s Inpex Corporation in relation to the acquisition of the participating interests (1.575%) held by Tokyo Gas in the Ichthys LNG project, through Tokyo Gas Australian project subsidiaries.
The Ichthys LNG is led by Inpex as the project operator, alongside major partner TotalEnergies and the Australian subsidiaries of CPC Corporation Taiwan, Tokyo Gas, Osaka Gas, Kansai Electric Power, Jera and Toho Gas. At its peak production, Ichthys LNG is capable of producing up to 8.9 million tons per annum (mtpa) of LNG and 1.65 mtpa of liquefied petroleum gas (LPG).
https://www.offshore-energy.biz/tokyo-gas-partners-to-work-on-lng-to-power-project-in-vietnam/
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Global LNG Development
Canada: Trafigura seals long-term LNG deal with Canada’s largest natural gas producer
Commodities trading group Trafigura has inked a long-term LNG agreement with Canada’s largest natural gas producer Tourmaline, marking the first time the two parties have signed such an agreement. Tourmaline said it increased its exposure to JKM by entering into a netback agreement with Trafigura based on 62,500 mmbtu/d (~0.5 mpta) of LNG for a seven-year term starting in January 2027, with an option for extension up to December 2039.
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In addition, the company stated it expanded its international exposure to include a physical netback agreement with Trafigura Canada Limited which will receive Dutch TTF index pricing. Starting in March 2024, Tourmaline will deliver 50,000 mmbtu/d of natural gas at AB-NIT and receive a Dutch TTF index price (less associated deductions) until December 2026.
Mike Rose, President and CEO of Tourmaline commented: “We are excited about our recent transaction with Trafigura and the opportunity to expand our exposure to international LNG markets.”
Richard Holtum, Global Head of Gas, Power and Renewables for Trafigura added: “We’re delighted to build on our relationship with Tourmaline at a time when Canadian gas producers are starting to play a pivotal role in global LNG markets. Today’s agreements support our commitment to these markets and to the growth of our long-term portfolios, while demonstrating our ability to provide innovative, tailor-made solutions and ensuring security of supply for our customers worldwide.”
Last year, Trafigura entered into two revolving credit facilities for a total combined amount of $400 million, with insurance from the Export-Import Bank of the United States (US EXIM), to supply European customers with LNG.
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US: Texas LNG Inks tolling agreement with EQT
EQT Corporation has entered into a heads of agreement (HOA) with Texas LNG Brownsville LLC for natural gas liquefaction services from its facility in Brownsville, Texas.
The HOA is expected to be finalized into a definitive 15-year tolling agreement for 0.5 million tons per annum (mtpa) of liquefied natural gas (LNG) from the first train of Texas LNG, the two companies said in separate news releases. The final terms remain subject to negotiation of a definitive agreement between the parties.
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Glenfarne Energy Transition, LLC, a developer, owner, and operator of energy transition infrastructure, is the majority owner and managing member of Texas LNG and expects a final investment decision on the project in 2024. Commercial operations are projected to begin in late 2027 or 2028, Texas LNG said.
“This HOA with Texas LNG highlights continued momentum behind EQT’s differentiated LNG strategy, which is focused on achieving the best combination of upside exposure and downside risk mitigation”, EQT President and CEO Toby Rice said. “Our tolling capacity gives us direct connectivity to end users of natural gas globally, allowing for end-market structuring flexibility and superior downside protection.”
“EQT’s low-cost structure, peer-leading core inventory depth and environmental attributes uniquely position us to compete and win in the global energy arena and we believe the international market will increasingly covet our molecules as a long-duration secure supply source that can drive meaningful emissions reductions via coal displacement”, Rice added.
“We are proud to welcome EQT as a customer and partner for Texas LNG, with our industry-leading low-emissions facility liquefying US natural gas for global markets”, Glenfarne CEO and Founder Brendan Duval said. “This is an important milestone for Texas LNG, with additional agreements to be announced in the near-term as we progress towards a Final Investment Decision”.
In December 2023, Texas LNG selected ABB to collaborate on core automation and electrical equipment for the Brownsville LNG export terminal. As part of the memorandum of understanding signed by the two companies, Texas LNG and ABB have agreed on a framework for ABB to invest in the project, Texas LNG said in an earlier news release.
Texas LNG in November 2023 selected Baker Hughes to supply gas compression technology equipment, including electric motor drives, to the facility. As part of the partnership between the two companies, Baker Hughes also has a framework agreement to make a strategic pre-final investment decision (FID) investment in the project’s late-stage development, Texas LNG said.
Glenfarne has announced more than half a billion dollars’ worth of equipment selections for Texas LNG to date, according to the release.
Glenfarne Energy Transition, LLC is a subsidiary of Glenfarne Group, LLC, a privately held energy and infrastructure development and management firm based in New York City and Houston, Texas.
EQT has been actively seeking LNG supply deals in the past months. In September 2023, Commonwealth LNG entered into a heads of agreement (HOA) with EQT Corp. for one mtpa of LNG under a 15-year tolling agreement, and associated gas supply to Commonwealth LNG’s facility in Cameron, Louisiana.
Commonwealth expects a final investment decision for the project in the first quarter of 2024, with first cargo deliveries expected in 2027. Commonwealth said that an accelerated construction schedule would allow the project to be built in three years “using a modular approach with major components being fabricated offsite”. The company added that the terms anticipated under the HOA would begin at the start of the facility’s commercial operation.
https://www.rigzone.com/news/texas_lng_inks_tolling_agreement_with_eqt-15-jan-2024-175374-article/
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Mexico: ExxonMobil, Mexico Pacific to bring Permian gas to global markets with third LNG deal
Mexico Pacific has signed a third long-term Sales and Purchase Agreement (“SPA”) with ExxonMobil LNG Asia Pacific (“EMLAP”) for an additional 1.2 MMtpa of liquefied natural gas (“LNG”) from Train 3 of Mexico Pacific’s Saguaro Energia project located on the west coast of Mexico.
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The volume originates from the option under the separate LNG SPAs executed in January 2023, covering volumes from Trains 1 and 2. Under the Train 3 LNG SPA, EMLAP will purchase LNG on a free-on-board basis over a 20-year term. There is also an option for another 1 MTPA from Train 4.
“We are pleased to announce this additional long-term SPA with ExxonMobil, extending our much-valued partnership into Train 3”, said Ivan Van der Walt, CEO Mexico Pacific. “While we remain focused on initially taking FID on Trains 1 and 2, this latest LNG SPA with ExxonMobil concludes the LNG sales required for a subsequent Train 3 FID expected this year. With key contracting and permits in place across the terminal and pipeline, we are well positioned to sanction the project, connecting Permian basin gas with the world’s largest LNG markets in Asia to provide reliable and cost-effective LNG to support the energy transition.”
“Bringing additional North American LNG to global markets advances energy security and helps to lower emissions in many countries with high energy demand,” said Peter Clarke, ExxonMobil’s Head of Global LNG and Senior Vice President. “Long term contracts play an essential role in underpinning the investments that will be required to advance the energy transition. We look forward to working with Mexico Pacific to continue growing our portfolio and deliver Permian natural gas to global markets.”
Mexico Pacific’s anchor project, the 15 MMtpa Saguaro Energia LNG Facility, is the most advanced LNG development project on the West Coast of North America. The Saguaro Energia LNG Facility achieves significant cost and logistical advantages resulting in the lowest landed price of North American LNG into Asia by leveraging low-cost natural gas sourced from the nearby Permian basin, and a significantly shorter shipping route avoiding Panama Canal transit risk for Asian markets.
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Indonesia: Indonesia expects LNG output to rise over 17% to 250 cargoes in 2024
Indonesia aims to produce about 250 cargoes of LNG this year compared with 213 cargoes in 2023 on the back of additional production from the BP-led Tangguh Train 3 expansion, Kurnia Chairi, Deputy of Finance and Monetization at upstream regulator SKK Migas said Jan. 12 at an industry event.
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The Tangguh Train 3 project has an LNG production capacity of 3.8 million mt/year and it has raised the Tangguh LNG terminal’s total LNG production capacity to 11.4 million mt/year since it started operations in October 2023.
“With the addition of approximately 40 cargoes from Tangguh Train 3, we expect around 250 cargoes in this year (2024),” Chairi said.
Out of its total LNG production in 2024, Indonesia expects around 167-170 LNG cargoes to be allocated for exports, accounting for around two-thirds of the total, while the remainder will be allocated for domestic use, according to SKK Migas.
Chairi said that the export allocations for 2024 are higher than around 139.5 LNG cargoes allocated for export in 2023.
He said Indonesia was able to sell 35 to 36 LNG cargoes in the spot market in 2023, including volumes from not only Tangguh Train 3 but also from Bontang LNG, which helped state firms commercialize LNG and supported oil and gas revenue in 2023.
SKK Migas has previously stated that Indonesia expects the share of its LNG production allocated for exports to nearly double from current levels to 65% as its domestic economy and energy demand continues to grow.
Indonesia, one of the main hydrocarbon producers and LNG exporters in Southeast Asia, has been facing depleting gas fields and falling upstream investment, resulting in a steady long-term decline in oil and gas production. The upcoming presidential elections are also putting pressure on the government to prioritize domestic energy supplies.
Gas projects
Indonesia also expects to get additional LNG supplies by 2025-2029 from some gas projects that have been categorized as national strategic projects, the head of SKK Migas Dwi Soetjipto said at the same event.
There are four gas projects, including the $3.37 billion Genting Oil project in Asap Kido Merah, in the West Papua province, which is expected to produce 330 MMcf/day by the fourth quarter of 2025 and the $19.8 billion Inpex-led Abadi Masela project, which is expected to come onstream in 2029.
There is also Chevron’s Indonesia Deepwater Development and the Geng North project in offshore Kalimantan. Soetjipto said Geng North is expected to be on stream by 2028.
Italy’s Enihad announced a major gas discovery at Geng North in October 2023 in North Ganal PSC, about 85 km off the coast of East Kalimantan in Indonesia. It said preliminary estimates indicated 5 trillion cubic feet of gas in place with up to 400 million barrels of condensate.
Other key Indonesian projects include BP Tangguh’s UCC project in Papua, expected to produce 476 MMcf/day of gas and which has a CCS capacity of 1.8 Gigatons. “The FID will be carried out in Q2 2024 and the investment required based on the development plan is $3.84 billion,” Soetjipto said.
SKK Migas expects Abadi Masela and Tangguh will be able to feed gas into the Bontang LNG plants.
BP is the operator in the Tangguh project with 40.22% interest through its subsidiary BP Berau. The other partners are MI Berau B.V. (16.30%), CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum Ltd and KG Wiriagar Petroleum Ltd (10.00%), and Indonesia Natural Gas Resources Muturi Inc. (7.35%).
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US: Texas LNG receives regulatory approval for final investment decision
(WO) – Texas LNG, a 4 MMtpa liquefied natural gas (“LNG”) export terminal to be constructed in the Port of Brownsville, Texas, and a subsidiary of Glenfarne Energy Transition, LLC received its Section 10 and Section 404 permits from the U.S. Army Corps of Engineers (“USACE”) and Texas state-level approval from the Railroad Commission of Texas under The Coastal Zone Management Act of 1972, completing the project’s permitting efforts required for a final investment decision.
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This news follows Texas LNG’s recent announcement that it signed a Heads of Agreement with EQT Corporation for natural gas liquefaction services for 0.5 MMtpa of LNG. Texas LNG is in advanced stages of negotiations for the remaining volumes from the project expected to conclude in the near-term, including finalizing previously executed, but unannounced, HOA’s and Memorandums of Understanding.
Glenfarne recently announced partnerships with Bakes Hughes and ABB to help develop the terminal, representing more than half a billion dollars’ worth of equipment selections for Texas LNG to date. Texas LNG expects to close its project financing in 2024 with construction commencing shortly thereafter. The first LNG exports from Texas LNG are expected to be shipped in 2028.
Texas LNG was designed to be one of the lowest-emitting export terminals on the planet, providing reliable, responsibly sourced U.S. LNG that can help fuel the global energy transition to renewables and reinforce energy security.
Brendan Duval, CEO and Founder of Glenfarne Energy Transition, said, “With these permits in hand and contracts signed, Glenfarne anticipates concluding commercialization of Texas LNG in the first half of 2024. Texas LNG has both its Federal Energy Regulatory Commission permit and Department of Energy non-Free Trade Agreement permit in hand, and we believe that makes the project among the most attractive options for contracting U.S. LNG.”
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LNG as a Marine Fuel/Shipping
Qatar: QatarEnergy and Nakilat lead the charge in eco-friendly, high-capacity LNG transportation
Qatar’s state-owned Liquified Natural Gas (LNG) giant QatarEnergy has signed a shipbuilding deal with China’s Hudong-Zhonghua for the construction of eight Q-Max LNG carriers as part of its shipbuilding program. These new vessels will have a capacity of 271,000 cubic metres and are scheduled to be delivered in 2028 and 2029.
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Earlier this week, Nakilat, another Qatari company, announced that they have placed orders with Hyundai Samho Heavy Industries (HSHI) of South Korea for the construction of six gas vessels (two cutting-edge LNG carriers with a cargo capacity of 174,000 cubic metres each and four modern Very Large LPG/ Ammonia Gas carriers, with a substantial cargo capacity of 88,000 cubic metres.) These vessels are set to be delivered between 2026 and 2027, according to the statement from the Qatar-based, LNG giant.
Nakilat’s Chief Executive Officer, Eng. Abdullah Al Sulaiti, said, “Our investment in these advanced vessels reflects our ongoing commitment to delivering exceptional service and environmental stewardship. We strive to meet the increasing demand for safe, reliable, and eco-friendly transportation of gas, contributing to a more sustainable future.”
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Cape of Good Hope becomes new Route for LNG carriers
LNG shipping firms, including Flex LNG, are rerouting carriers away from the Red Sea due to threats from Houthi rebel attacks, with alternatives like the Cape of Good Hope being used. Despite these disruptions, the LNG market remains stable with prices returning to normal levels after a recent spike, showing the flexibility of current market dynamics.
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The broader perspective reveals a shift in global energy transportation, predicting that LNG will become more trafficked than oil in the next five years.
LNG Carrier
There are currently no tankers carrying liquefied natural gas (LNG) left in the Red Sea as shipping firms avoid the region in fear of Houthi rebel attacks.
According to an X post this morning by Oeystein Kalleklev, chief executive of LNG shipping firm Flex LNG, carriers are now being re-routed through Cape of Good Hope or deviated to other destinations.
The below picture was captured by shipping investor Ed Finley-Richardson on Twitter using shipping tracking platform Sea by Clarksons.
Other LNG carriers are represented in green.
This comes after the UK and US led a coalition of forces launching attacks on Yemen’s Houthi positions, in response to an escalation. The Houthi movement claims it is targeting ships linked to Israel, because of its military action in Gaza.
Commodities analyst for Reuters, Clyde Russell, noted yesterday that the volume of LNG affected is relatively small, and “current market dynamics are flexible enough to compensate without putting significant upward pressure on spot prices.”
LNG prices were down 2.2 per cent this morning as they return to stability following a month-long spike – 17 per cent above current levels – due to weather-induced high demand.
Prior to the escalation of Houthi attacks in the areas, insights firm GlobalData last year found that LNG is set to become a higher-trafficked fossil fuel than oil within the next five years.
https://oilprice.com/Energy/Natural-Gas/Cape-of-Good-Hope-Becomes-New-Route-for-LNG-Carriers.html
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Spain: MSC Euribia Makes Maiden Call in Cadiz, Bunkers LNG
The port of Cadiz welcomed the MSC Euribia for the first time, where it became the first cruise ship to be bunkered with liquefied natural gas (LNG) at the Spanish port, according to a press release.
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The maritime tradition of a plaque exchange to commemorate a ship’s first call took place onboard between Euribia’s Captain Pietro Sinisi and the President of the Port Authority of the Bay of Cadiz, Teófila Martínez.
The MSC Euribia was fuelled with LNG ahead of its 13-night voyage to Hamburg with visits to Lanzarote, Las Palmas de Gran Canaria, Santa Cruz de Tenerife, Casablanca, Funchal, Lisbon and Southampton.
The MSC Euribia, which began operations in June 2023, is the line’s second ship powered by LNG and one of the most energy-efficient vessels in the industry.
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Finland: Glander and Rohe Solutions complete first LNG bunkering op at Port of Kokkola
Glander International Bunkering collaborated with LNG supplier Rohe Solutions Oy to supply LNG bunker fuel by truck to oil/chemical tanker “SAANA” on 16 December. Global bunker trading firm Glander International Bunkering on Tuesday (16 January) said it collaborated with LNG supplier Rohe Solutions Oy to supply LNG bunker fuel by truck to oil/chemical tanker SAANA on 16 December.
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The supply took place at the port of Kokkola in Finland, a historic first for the port. Amid harsh winter conditions, the Valencia team at Glander International Bunkering coordinated with the port authorities, the LNG supplier and the vessel crew.
Sales Manager Alvaro Sierra Navarro, of the Valencia office, said: “This LNG delivery marks a milestone for our company, as we facilitate another first within the industry – this time, the first LNG supply in Kokkola.”
“Decarbonisation requires collaboration on multiple fronts, shown in this case by the synergy among our in-house green fuels advisors and our relationship with the Rohe team.”
To meet the recent global demand for green fuel bunkering, Glander International Bunkering assembled a team of New Fuels Advisors from around the world to provide solutions as a green fuel bunker partner.
New Fuels Advisor Mustafa El Zein in Valencia, who was among those involved in this recent operation, said: “We stand ready to serve the growing LNG bunker requirements, for different vessel types especially as decarbonization gains momentum.”
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Bermuda: SFL’s 3rd LNG-powered car carrier delivered
Bermuda-based ship-owning and chartering company Ship Finance International Limited (SFL) has taken delivery of 7,000 CEU Odin Highway, its latest LNG dual-fuel car carrier. The vessel, part of a two-ship order, has been contracted by Japanese shipping major K-Line under a 10-year time charter agreement.
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Odin Highway, boasting a capacity of 7,000 Car Equivalent Units (CEU), is equipped with dual-fuel technology, allowing for a transition between liquefied natural gas (LNG) and conventional fuel, thus enhancing operational flexibility and aligning with global efforts to reduce carbon emissions in the maritime industry.
The ship’s dual-fuel propulsion system has an endurance of up to 15,000 nautical miles.
With this in mind, the company expects that the vessel will meet EEDI 3 requirements introduced by the International Maritime Organisation (IMO).
The second vessel in the series, Thor Highway, is scheduled for delivery in the second quarter of 2024. The vessel is also set for a ten-year charter with K Line upon delivery. Both ships are being built by Guangzhou Shipbuilding International, a subsidiary of China State Shipbuilding Corporation.
The ships have a total length of 200 meters, a width of 38 meters, a design draft of 8.6 meters, and a design speed of 19 knots. It has 13 decks and can carry about 7,000 cars. Two of the decks can be loaded with hydrogen fuel cell vehicles.
The completion of the Odin Highway delivery comes amid an increasing industry focus on adopting cleaner technologies to meet evolving environmental standards. SFL has seven car carriers in its fleet, including four LNG-powered units.
The LNG-fuelled 7,000 CEU Wolfsburg and Emden car carriers were delivered in 2023 and have been chartered out to Volkswagen for ten years.
All four units were ordered back in 2021. SFL said at the time that aggregate construction cost would be approximately $155 million, and the charter period would be ten years from the delivery of the vessels, adding more than $200 million to SFL’s contracted charter backlog.
https://www.offshore-energy.biz/sfls-3rd-lng-powered-car-carrier-delivered/
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Greece: TEN receives two LNG-powered tankers
Tsakos Energy Navigation (TEN, Ltd) has announced the sale of the 2005-built suezmax tanker Eurochampion 2004, and the concurrent delivery of two LNG-powered aframax tankers, the Chios DF and the Ithaki DF, the last remaining vessels in a series of four high-spec eco-designed tankers built against long-term employment to a major oil concern.
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The Eurochampion 2004, which was debt free, will contribute approximately US$40 million to the company’s cash balances with management in continuous discussions for further such sales in the near future.
“The sale and delivery of these three vessels constitute another milestone for TEN as it highlights the company’s commitment to fleet renewal by combining profitable vessel divestments with deliveries of high-end ‘green’ vessels on long-term contracts,” said George Saroglou, President & COO of TEN. “The Eurochampion 2004 has served the company well over the years and we wish her new owners ‘calm seas’ in her journeys. With the all LNG-powered vessels now delivered, management will continue to explore growth opportunities on both the newbuilding and second-hand front while maintaining its interest in strategic sales to ensure a seamless fleet transition going forward.”
https://www.lngindustry.com/small-scale-lng/25012024/ten-receives-two-lng-powered-tankers/
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US: Seaside LNG announces milestone first delivery
Seaside LNG has announced its first delivery to the Carnival Jubilee, an LNG propelled cruise ship stationed in Galveston, Texas. After entering into a term bunkering agreement with Carnival Corp. & plc, the delivery took place on 30 December 2023, after months of careful coordination with all parties involved, including the Port of Galveston. This operation marked the first in port ship-to-ship LNG bunkering delivery not only in Galveston, but also along the entire US Gulf Coast.
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Seaside’s barge, the Clean Jacksonville, was moved from Jacksonville, Florida, to operate out of Galveston and serve the Texas Gulf Coast. The Clean Jacksonville has safely completed more than 350 bunkering operations to date.
In related news, the Clean Everglades, the newest member of the Seaside LNG fleet, made its first delivery week commencing 15 February 2024. The delivery was made to Isla Bella at the TOTE Maritime’s terminal near Jacksonville, Florida. The operation was a regularly scheduled delivery per TOTE’s long-term service contract with Seaside’s maritime transportation company, Polaris New Energy. Seaside took delivery of the Clean Everglades, an articulated tug barge that holds 5500 m3 of LNG, in October 2023. In addition, TOTE Services acts as Seaside’s operating partner for both the Clean Jacksonville and Clean Everglades.
“The Seaside LNG team is excited to start 2024 off strong with these two deliveries. We appreciate the trust our customers put in us to arrange these important fuelling operations. We also recognise TOTE Services for their contributions as a reliable operating partner,” noted Tim Casey, CEO of Seaside LNG. “As the demand for LNG as a cleaner maritime fuel continues to grow, our team and barge fleet are ready to deliver.”
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Singapore: Bunker sales of biofuels more than tripled in 2023
Singapore has made significant progress in the supply of alternative fuels as bunker sales of biofuel blends increased to 520,000 tonnes in 2023, which more than tripled from 140,000 tonnes in 2022. This was revealed at the Singapore Maritime Foundation (SMF) New Year Conversations event held last week. During the event, Chee Hong Tat, Acting Minister for Transport, announced a record year in 2023 for Maritime Singapore.
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As informed, biofuel blends of up to B30 are commercially available, while trials of up to B100 are ongoing. Worth noting is that the first marine biofuel trial involving an ocean-going vessel in Singapore was carried out in April 2021.
MPA also informed that liquefied natural gas bunker sales amounted to 110,000 tonnes in 2023, up from 16,000 tonnes in 2022.
In July 2023, the Maritime and Port Authority of Singapore (MPA) conducted the world’s first ship-to-containership methanol bunkering operation, where about 300 tonnes of green methanol was supplied for the first time in the Port of Singapore.
What is more, the global maritime bunkering hub welcomed the delivery of its first methanol bunkering vessel last month.
In addition, new fully electric 200-pax passenger ferries and supply vessels were deployed in 2023, operating within port waters to support the local maritime ecosystem.
MPA recently called for an Expression of Interest (EOI) for the supply of methanol as a marine bunker fuel in the port. The EOI seeks to gather proposals for end-to-end methanol bunkering solutions, scheduled to be implemented in Singapore in 2025.
The port authority is also developing new standards supporting vessel electrification, cybersecurity, and the use of new bunker fuels such as methanol and ammonia. In 2022, MPA and the Energy Market Authority jointly issued an EOI for ammonia power generation and bunkering which attracted 26 proposals. The second selection phase is ongoing.
51.82 million tonnes of bunker sales were registered in 2023, surpassing the previous record of 50.64 million tonnes in 2017. This is said to reflect Singapore’s support to the global shipping community as a bunkering hub. Of this, 1.2% are alternative fuels and this is expected to continue with good growth prospects in the coming year, according to MPA.
To boost the efficiency and transparency of bunkering delivery documentation and workflow in the Port of Singapore, MPA implemented the Digital Bunkering initiative in November 2023. To date, four solution providers have been approved by MPA, and three bunker suppliers and barge operators have commenced digital bunkering operations. More companies are expected to join in the coming year. MPA will continue its efforts to gather feedback and drive early adoption. When fully implemented, digital bunkering is expected to save up to 40,000 man-hours annually.
A year by the numbers
The annual vessel arrival tonnage in the Port of Singapore crossed three billion GT for the first time, increasing by 9.4% over 2022 and setting a high of 3.09 billion GT in 20231. This reflects growth in all segments of the port ecosystem, including container ships, dry bulk carriers, liquid bulk and chemical tankers, ferries and specialized vessels, amidst a global trade slowdown.
Singapore’s container throughput in 2023 grew by 4.6% reaching a new high of 39.01 million TEUs, compared to the previous record of 37.57 million TEUs in 2021. Eight berths from the new Tuas Port Phase 1 are operational and 70% of reclamation works in Phase 2 have been completed.
A total of 591.70 million tonnes of cargo was handled in 2023, up from 578.22 million tonnes in 2022. The average monthly frequency of regional ferry trips has recovered to about 70% of pre-COVID levels.
As explained, the strong 2023 performance is largely attributed to the recovery in regional trade and the robust tripartite cooperation among the unions, industry and government to consistently enhance the efficiency, reliability and safety in the Port of Singapore.
In 2023, Singapore retained its lead as the world’s top maritime center in the Xinhua-Baltic International Shipping Centre Development Index for the 10th consecutive year.
The Singapore Registry of Ships (SRS) continues to rank amongst the largest ship registries globally. The total tonnage of ships under the Singapore flag in 2023 reached 99.56 million GT, an increase of 4% from 95.47 million GT in 2022.
In 2023, 22 Singapore-flagged ships from ten companies received Green Ship Certificates under the Green Ship Programme. More such vessels are expected to use Singapore as a flag of choice in the coming years.
“MPA is closely monitoring the current geopolitical situation around the world and its impact on key shipping routes and global supply chains. Should the supply chain disruptions be protracted, and ships’ schedules increasingly impacted, the Port of Singapore stands ready to assist ships to “catch up” on their schedules and to support shippers in their cargo connections,” the port authority concluded.
https://www.offshore-energy.biz/singapore-bunker-sales-of-biofuels-more-than-tripled-in-2023/
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Bangladesh: Runner to build nationwide charging network for electric vehicles
Runner Group, one of the biggest marketeer and assembler of automobiles in Bangladesh, will develop a nationwide charging network as part of its plan to locally launch electric vehicle (EV) of China-based world’s biggest EV maker BYD.
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Today, CG Runner Bangladesh Limited, a sister concern of Runner Group, signed a memorandum of understanding (MoU) to build the network with local infrastructure developer Genex Infrastructure Limited, at Runner’s headquarters at Tejgaon in the city.
CG Runner is scheduled to launch BYD SEAL within March this year, which will be the first model of electric vehicle of the Chinese carmaker to hit the roads in Bangladesh.
Genex Infrastructure plans to develop and install 10 charging stations around Dhaka city and several national highways by March 2024 and build a sustainable charging network nationwide by installing more charging stations throughout the year.
At present, there are four charging stations across the country.
As per today’s MoU, the customers of CG Runner will get priority in the charging process for uninterrupted and convenient charging experiences for their electric vehicles.
“We are pleased to collaborate with Genex Infrastructure Limited to build nationwide charging stations,” Runner Group Chairman Hafizur Rahman Khan said at today’s event.
Genex Infrastructure Managing Director Mohammed Tanzidul Alam also spoke.
Till now, around 70 EVs of global automotive brands such as Tesla and Porsche have been registered with the Bangladesh Road Transport Authority since September 2022, when EV registration was first introduced.
Bangladesh has recently formed new EV policies, including the Charging Station Installation Policy, to promote adoption of such vehicles in the country.
In the Electric Motor Vehicle Registration and Operation Guideline 2023, the government targeted ensuring 30 percent of vehicles in the country are electric by 2030.
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China: World’s biggest EV maker BYD takes delivery of first car carrier
BYD, a China-based electric vehicle (EV) manufacturer that overtook Tesla as the world’s biggest EV seller in 2023, has taken delivery of its first car carrier which is dual-fueled. The maiden voyage ceremony for BYD Explorer No.1, the 7,000 CEU LNG dual-fuel pure car, truck carrier (PCTC), was held on January 15 at the Port of Shenzhen.
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Built by CIMC Raffles, a subsidiary of China International Marine Containers (CIMC), the newbuild is the first car carrier built at a Chinese yard that will transport domestically produced cars.
“The BYD Explorer No.1 is the first ships belonging to CIMC Raffles’ 7,000 CEU car carrier series. In the future, we will continue to strengthen technological innovation and work closely with partners to reduce carbon emissions and make greater contributions to the green development of the global shipping industry,” Li Minggao, Vice President of CIMC Raffles, commented.
BYD Explorer No.1 was delivered last week at the shipbuilder’s Longkou base in Shandong before sailing to Yantai RoRo terminal to be loaded with new electric vehicles.
Carrying 5,449 new vehicles on board, the PCTC has embarked on its maiden voyage to Europe, heading to the ports of Vlissingen in the Netherlands and Bremerhaven in Germany.
The ship was built for the US-based shipping company Zodiac Maritime and leased to BYD as the first unit in the car maker’s ocean-going fleet.
BYD Explorer No. 1 features a length of 199.9 meters, a width of 38 meters, a design draft of 8.6 meters and a speed of 19 knots.
The giant vessel has 13 decks and looks like a “floating three-dimensional garage”, according to CIMC Raffles.
It is equipped with two sets of C-type LNG storage tanks and uses liquefied natural gas as the main fuel for the main engine and generators, significantly reducing emissions of nitrogen oxides and sulfur oxides. The C-type LNG fuel tanks were custom built by CIMC Pacific Offshore Engineering, a subsidiary of CIMC Enric.
In addition, the car carrier is equipped with low-resistance methylsilane antifouling paint technology that can reduce fuel consumption and carbon emissions by up to 5%.
This energy-saving, environmentally friendly, and efficient car carrier is classed by the classification society DNV.
The energy-efficiency design of the entire ship enables carbon dioxide emissions to meet the International Maritime Organization (IMO) 2025 Phase III requirements ahead of schedule — a 30% reduction in the carbon intensity of new ships.
A new era for China’s auto export industry has begun
The delivery of BYD Explorer No.1 has marked the beginning of the era of China’s own transport of domestically built cars.
The ship will accelerate BYD’s car deliveries and help the company expand to overseas markets.
The country’s government recently announced its strategic plan to promote the high-end, intelligent and green development of the manufacturing industry.
In 2023, China surpassed Japan and became the world’s largest automobile exporter. The increase in vehicle trade and the increasing share of pure electric/hybrid vehicles is expected to further drive the demand for car carriers.
It is worth noting that Chinese shipyards have won most of the world’s new orders for car carriers. In the first half of 2023 alone, Chinese shipbuilding companies took orders for 43 car carriers, accounting for 97.7% of the global market share at the same stage, according to Clarkson Research statistics.
https://www.offshore-energy.biz/worlds-biggest-ev-maker-byd-takes-delivery-of-first-car-carrier/
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Finland : Construction begins at Europe’s largest turquoise hydrogen facility
Finnish developer Hycamite has this week started construction of a demonstration facility that will produce 2,000 tonnes a year of “turquoise” hydrogen made from methane pyrolysis. This process heats natural gas in the absence of air, inside a pyrolysis oven, which results in the formation of hydrogen and solid carbon, rather than CO2. The resulting powder form of solid carbon, known as carbon black, is a key ingredient in many products, including tyres and dark plastics, and can be sold as another revenue stream, although prices in Europe currently sit below $2/kg.
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Hycamite expects to produce 6,000 tonnes of solid carbon a year from its turquoise hydrogen plant, although it has not disclosed whether it has customers for either product.
The demonstration facility the biggest turquoise hydrogen project in Europe is sited in the coastal town of Kokkola, central Finland, at an industrial park that claims to be the largest inorganic chemicals cluster in northern Europe.
Hycamite calculates that if using Norwegian liquefied natural gas (LNG) shipped to Kokkola’s gas terminal, the project would reduce emissions compared to grey hydrogen production by up to 18,000 tonnes of CO2 a year, with potential for carbon removals if biogas is used instead.
The developer also argues that its methane pyrolysis technology uses only 13% of the energy requirements of an electrolyser.
The Kokkola project is estimated to have cost €28m ($30m). Finland’s state-owned Climate Fund contributed a €10m capital loan for the facility in February 2023, as well as investing in Hycamite’s €25m fundraise in July last year, while government agency Business Finland has awarded €2.4m for R&D and pilot support.
The Climate Fund’s capital loan also included a sustainability-linked incentive, which would reward Hycamite for “achieving emissions reductions above the anticipated baseline” of around 200,000 tonnes of CO2 over ten years.
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Exploring ‘Future Fuels’ – Methanol’s superstorage solution
Technical inquiries to SRC Group ramped up after it received Approval in Principle (AIP) for a concept which ‘reinvented methanol fuel storage’ on board ships. Delivering the answers has seen technical talk converting into project discussions
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‘Green’ methanol has the ability to one day run vessels almost emission-free, and commercial shipping increasingly investigates. Derived today principally from natural gas, methanol is nonetheless available, relatively easy to handle and predictable. Lower carbon today, and potentially zero carbon tomorrow, methanol offers an alternative to HFO, and a pathway towards decarbonization targets.
A chief challenge to incorporating methanol as a maritime fuel traditionally has been its space inefficiency, as ton-for-ton, it takes 2.4 times more methanol to generate the equivalent energy as HFO.
Conventionally, tanks storing low flashpoint fuels on board ship feature cofferdams of at least 600mm across to separate internal and external walls. Included as a safety precaution, the gap also restricts capacity.
Imaginative design can help find unused spaces for extra storage on board a newbuild ship, but opportunities are more limited on existing vessels. Where retrofitting a dual fuel engine to run on methanol is feasible, the fuel storage issue may restrict a ship to short voyages or demand more frequent bunkering – both of which impact on ROI.
In October 2023 Lloyd’s Register granted Approval in Principle (AiP) for SRC Group’s ‘Methanol Superstorage,’ a retrofitted tank storage solution that increases volume by 85%, according to SRC, but can be installed with only a minimal impact on the general arrangement.
Closing the Gap
Methanol Superstorage solution dispenses with the cofferdam altogether and instead installs tank walls formed by sandwich panel system (SPS) technology, consisting of a continuous polymer core that has been injected between two steel surfaces.
Approved for permanent repairs by all major IACS class societies, SPS technology has been used in maritime and offshore applications for over two decades – including for corrosion repairs in ship structures. Class approvals secured have involved laboratory testing of the polymer core material for chemical resistance – including for methanol. Engineering, Procurement, Construction and Installation (EPCI) service provider SRC has experience of complex refits across over 5,000 projects worldwide, including extensive experience of the patent protected SPS technology process.
For the Methanol Superstorage fuel tank, a 25mm thick steel-polymer-steel barrier provides protection against fire or leakage that is equivalent to a conventional tank, according to SRC. The injected polymer also creates oxygen-free conditions behind the steel plates to prevent corrosion.
The SPS sandwich panel system can be used in lieu of cofferdams on all tank boundaries including those facing to shell plating.
“We always knew how significant Methanol Superstorage would be, because existing ships need to play a full role in energy transition if GHG emission targets are going to be met and storage capacity is a key challenge,” said Hannes Lilp, CEO, SRC Group. “We are already in detailed discussions with a well-known ferry operator, while we’ve been approached by cargo ship operators, offshore support vessel owners, tug companies, shipyards in Europe and Asia, and by the marine engine suppliers. One area that has surprised us has been the high level of interest from the super yacht sector.”
Less surprising has been the flow of inquiries from cruise ship owners, many of which have already been studying the feasibility of retrofitting ships for methanol as a marine fuel.
“These are new and confidential discussions, but what I can say is that live projects are under review to accommodate consideration of Methanol Superstorage, while one project that looked dead is being revived,” said Lilp. The in-flow of technical questions from all corners of the maritime industry has been “almost overwhelming.”
The Path to Classification
Securing AiP provides a technology developer with a statement from Class confirming that there are no major obstacles to future certification or classification. Discussions covering approvals from other classification societies are ongoing, said Lilp, although he acknowledges that journey from AiP to full class approval is substantive. In an area where the regulations underlying fuel storage are evolving, additional scrutiny can be expected.
“Due to the regulatory status of low flash point fuels all methanol fuelled ships need to go through a Risk Based Certification process that includes full risk assessment for the whole methanol fuel system from bunkering station to the engines,” said Alex Vainokivi, Innovation Manager, SRC Group. “AiP is part of the risk assessment. Any final approval for a methanol fuelled ship comes from the Flag State Administration.”
Nevertheless, key SPS technology characteristics are not in dispute. “For example, under fire testing, and when the core thickness for SPS structure is more than 25mm it has satisfied the fire safety objectives and the functional requirements of SOLAS A-60 regulations without the need to install thermal insulation,” says Vainokivi.
“We will establish whether inerting and venting are needed on a case-by-case basis – and the same for fire and leakage detection – but the requirements relating to cofferdams can be dispensed with. From that perspective, the solution provides equivalent ‘triple barrier protection’ to prescriptive requirements for cofferdams adjacent to all space categories – including accommodation.”
As of September 2023, methanol had been specified for 216 newbuilds, according to figures from DNV, and Clarksons estimates that 1,200 ships could be powered by methanol by 2030.
Lilp says the most frequently asked question SRC has been fielding concerns whether Methanol Superstorage is as appropriate for newbuildings as it is for retrofits. “The answer is an emphatic yes: fuel storage tanks can be constructed using the SPS sandwich panel system in lieu of cofferdams on both new build and refit projects. We seek to open more direct channels of communication for questions from major shipbuilders and designers worldwide.”
https://www.maritimeprofessional.com/news/exploring-future-fuels-methanol-superstorage-390741
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