NGS’ NG/LNG SNAPSHOT July 1-15, 2024

National News Internatonal News

NATIONAL NEWS

City Gas Distribution & Auto LPG

Bye-bye diesel, hello CNG: Conversion complete, ‘green’ boats on Ganga to cut down on pollution

Over 800 diesel boats in Varanasi have been converted to CNG to combat pollution. GAIL funded the project, setting up two CNG stations on the Ghats. Over 800 diesel engine-operated boats have been converted to CNG-powered craft in Varanasi by GAIL (Gas Authority India Ltd) in order to end pollution caused by the diesel engines.

SHOW MORE

The conversions began in February 2021 and were completed in March 2024.

GAIL, Varanasi, chief manager, marketing, Praveen Gautam said, “GAIL funded the entire project as part of its corporate social responsibility.”

He said that the CNG boats will help get rid of air pollution, noise pollution and water pollution because a CNG engine doesn’t emit smoke, vibrates less, makes little noise and there is no chance of diesel leakage. The CNG engines are eco-friendly and economical.

GAIL has set up two CNG fuel stations, at Namo Ghat and Ravidas Ghat, for the convenience of the boatmen, said Gautam. These are floating CNG stations and are now operational on the two main Ghats of Varanasi. The floating stations have been developed by GAIL at a cost of approximately ₹17.5 crore.

According to general manager of Varanasi Smart City Ltd, D Vasudevan, installing a CNG engine in a small boat cost ₹1.5 lakh and in a big boat around ₹2.5 lakh. A free CNG kit has also been installed on the boats.

According to another official, the entire boat conversion cost ₹29 crore.

The CNG-based engine reduces greenhouse gas emissions by 7% to 11% compared to diesel and petrol engines.

Besides, pollution is also reduced due to the absence of gases like sulphur dioxide. When a boat is operated with a diesel engine, toxic fumes are released which is very harmful to the people living nearby whereas this is not the case with CNG.

According to an official, around 900 boats are registered with the Varanasi Nagar Nigam.

https://www.hindustantimes.com/cities/others/byebye-diesel-hello-cng-conversion-complete-green-boats-on-ganga-to-cut-down-on-pollution-101720184427424.html

show less

Bajaj Auto strikes ‘Tiger Zinda Hai’ note as first CNG bike hits the road

Twenty-five years ago, when Bajaj Auto launched India’s first CNG three-wheeler, Managing Director Rajiv Bajaj received a peculiar call from his Delhi team — a group of autorickshaw drivers had shattered the glass facades of a showroom of the company. “I was taken aback,” Bajaj recalled, “I thought the CNG autorickshaw offered a great value proposition.”

SHOW MORE

The drivers, however, were frustrated. “At that time, there was only one CNG fuel pump in Delhi and they had to wait for 10-12 hours in queues to fuel their vehicles, which effectively, negated the savings they made,” Bajaj recollected on Friday — the day when Bajaj Auto unveiled the world’s first CNG motorcycle, the Freedom 125, with three variants, seven colours, and ex-showroom prices ranging from Rs 95,000 to Rs 1.1 lakh.

Now, the CNG landscape has dramatically changed. India now boasts 6,000 CNG fuel stations across 335 cities, and this number continues to grow.
 

Bajaj hailed the Freedom 125 as a “gamechanger”, offering “freedom from petrol imports, harmful emissions, skyrocketing petrol prices, range anxiety, and the struggle to find charging stations.” A visibly emotional Bajaj, launching what could be the company’s 100th product in his 34-year career, said: “I miss my father deeply today.” Perfecting the technology took Bajaj Auto two and a half years. The Freedom 125 allows commuters to switch seamlessly between CNG and petrol at the click of a button, even while riding.

> Freedom 125 costs Rs 95,000-1.1 lakh ex-showroom in Delhi 

> It offers a 330 km range with full petrol and CNG tank

 

This bike, the company said, promises 50 per cent cost savings by reducing fuel expenses compared to petrol motorcycles. The CNG tank provides a range of over 200 km on 2 kg of CNG, while the 2-litre petrol tank offers an additional 130 km, culmi­nating in a total range of 330 km for a full tank, said the two-wheeler major.
 

Consumers save around Rs 15,000 annually on fuel bills, effectively recovering the cost difference between the CNG bike and its petrol counterpart, said Bajaj Auto, which is in discussions with oil marketing companies to expand the CNG station network and include dedicated two-wheeler segments for consumer convenience. 
 

The Freedom 125 features the “longest seat” in its category — “26 per cent longer” than conventional 125 cc motorcycles. Environmentally, the company claimed, the new motorcycle reduces CO2 emissions by 26.7 per cent compared to petrol, alongside an 85 per cent reduction in non-methane hydrocarbons and a 43 per cent reduction in nitrogen oxides.
 

Bajaj advocated for reducing the tax rate on cleaner fuel vehicles from the current 28 per cent to around 12 per cent, noting that EVs in India are taxed at 5 per cent.
 

Union Minister of Road Transport and Highways Nitin Gadkari expressed his “mission” to reduce air pollution and fossil fuel imports (India imports Rs 20 trillion worth of fossil fuels). He highlighted ongoing projects for making CNG from rice straw (bio-CNG), with 60 projects operational and 400 more in the pipeline. He suggested Bajaj Auto consider a bike running on 100 per cent bioethanol, noting that the company already offers flex-fuel options for ethanol and petrol-powered bikes in its Pulsar and Dominar ranges.
 

Bajaj Auto is looking to capture a significant share of the entry-level bike segment with the Freedom 125. Approximately 900,000 motorcycles are sold in India each month, with 100 cc and 125 cc bikes accounting for nearly 650,000 units. 

Despite previous attempts, Bajaj Auto has struggled to penetrate this segment. “We sell around 150,000-175,000 bikes in this segment now every month. In the 125 cc segment, we have a 25-26 per cent share,” Bajaj said.

In CNG three-wheelers, the company dominates with an 88 per cent market share and expects to replicate this success in motorcycles. Over 60 per cent of all three-wheeler sales are CNG variants (about 70 per cent of Bajaj Auto’s three-wheeler sales are CNG variants).

In cities with strong CNG networks, 30 per cent of car sales are now CNG. “If among entry-level motorcycles CNG penetration touches 30 per cent, we are looking at close to 200,000 units a month,” Bajaj said.

Reflecting on the 1990s when scooters dominated the market, he recalled how rising fuel prices led to a shift towards motorcycles. The introduction of the four-stroke Hero Honda motorcycle, offering double the mileage of scooters, transformed the market. “We are offering the same proposition now,” Bajaj said, suggesting this could be among “milestone moments” for the two-wheeler industry.

Bajaj Auto will initially produce 10,000 units of the Freedom 125 monthly, retailing initially in Gujarat and Maharashtra, with plans to scale up to 40,000 units by the financial year’s end. Executive Director Rakesh Sharma mentioned that the automaker is also considering more models with flexi-CNG-petrol technology if this product succeeds.

The company has identified six export markets for the bike, but initial focus remains on India. “Then we will look at exporting to Egypt, Tanzania, Bangladesh, Indonesia, Columbia, and Peru,” Sharma said.

Recalling the late 1990s when Hero Honda overtook Bajaj Auto as the two-wheeler leader, Bajaj shared a dealer conference anecdote. Dealers congratulated then Hero Honda’s Chairman Brijmohan Lall Munjal, who, fond of Bajaj, remarked they must now be careful as “the tiger is wounded.”

“Thirty years later, my message is ‘Tiger Zinda Hai’”, a candid Bajaj told reporters.

https://www.business-standard.com/industry/auto/bajaj-auto-launches-world-s-first-cng-powered-bike-freedom-125-at-rs-95k-124070500831_1.html

show less

Oil, gas exploration offers $100 bn opportunity: Hardeep Singh Puri

Exploration and production (E&P) activities in India’s oil and gas sector offer investment opportunities worth $100 billion by 2030, and the government is in favour of minimizing regulatory delays, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Thursday.

SHOW MORE

Addressing an interaction between oil and gas stakeholders, organized by the Directorate General of Hydrocarbons (DGH), Puri announced a new joint working group comprising representatives from private E&P operators, national oil companies, and the government aimed at improving ease of doing business in the segment. The group will submit their recommendations on the need for policy revision within the next eight weeks.

Currently, an estimated 10 per cent of India’s 3.36-million-sqkm-wide sedimentary basin is under exploration. Puri said the government plans to increase this to 16 per cent by end-2024. “While this is in progress, it is not enough. The focus of our exploratory endeavours must pivot towards discovering ‘Yet to Find’ resources,” Puri stressed.

The 10th round of bidding for oil and gas assets under the Centre’s Open Acreage Licensing Policy (OALP) is expected to commence next month, while winning bids for OALP IX will also be concurrently announced, officials had told Business Standard last week. Through the first eight bid rounds, a total of 144 blocks, covering approximately 2.44 lakh sqkm, have been awarded.

However, this is far below the government’s target of India’s exploration acreage of 1 million sqkm by 2030. It has already reduced the ‘No-Go’ areas in India’s Exclusive Economic Zone by almost 99 per cent.

Meanwhile, the Discovered Small Field (DSF) policy has garnered investments of approximately $2 billion and brought in 29 new players since its inception in 2015. “The recent Special DSF Bid Round presents fresh opportunities in Mumbai Offshore and West Bengal,” Puri said.

The minister said the DGH will issue a work order within the next one month to upgrade the National Data Repository (NDR) to a cloud-based NDR, which will enable instant dissemination of seismic, well and production data. The DGH has also been directed to approve all annual work programme budgets prior to the financial year, to enable contractors to execute their activities in a time-bound manner.

It will also complete the process of integration of its various online portals by the end of the year, he added.

Meanwhile, Indian oil marketing companies (OMCs) are currently in preliminary talks with Russia for possible long-term deals to source oil and gas, senior petroleum ministry officials said. While the details will be negotiated later, the issue may have been raised during Prime Minister Narendra Modi’s recent bilateral meeting with Russian President Vladimir Putin.

“These discussions continue to happen. We need stable and predictable relationships. However, often a company signs an agreement only to find that the spot market is offering the (same) grade of crude at a lower price,” a top official said.

Russian crude made up 40 per cent of India’s crude imports in May.

https://www.business-standard.com/industry/news/100-bn-opportunity-in-exploration-production-by-2030-hardeep-singh-puri-124071100985_1.html

show less

GO TOP

Natural Gas/ Pipelines/ Company News

 

Maharashtra Natural Gas Limited Wins Prestigious Global EHS Best Practices Award at Bangkok, Thailand

Maharashtra Natural Gas Limited (MNGL) has been honored with the prestigious EHS (Environment, Health, and Safety) Best Practices Award at a grand ceremony held at Bangkok on 27th June 2024. This award acknowledges MNGL’s exceptional dedication to putting excellent EHS standards and practices into the natural gas industry.

SHOW MORE

Mr. Sanjay Sharma, Director (Commercial) of MNGL & Mr. Sagar Varma Chief General Manager (HSE), MNGL attended the ceremony and accepted the award. Upon accepting the award, Mr. Sanjay Sharma further conveyed his thanks and delight, saying, “This recognition is a testament to the hard work and dedication of our entire team. At MNGL, we prioritize the safety and well-being of our employees, the community, and the environment. This award motivates us to continue our journey towards excellence in EHS practices.’’

The award ceremony, held at Bangkok, was attended by many industry leaders and professionals from around the world to celebrate achievements in environmental stewardship, health, and safety. MNGL’s recognition at this international platform underscores its role as a trailblazer in the natural gas industry and its commitment to sustainable development. As MNGL continues to expand its operations, the company remains steadfast in its mission to uphold the highest EHS standards, ensuring a safer and greener future for all stakeholders.

show less

NE gas grid work in Tripura to be completed in March next year: Official

Of the total 253 km pipeline target in the state, around 105 km has been covered so far while the “remaining portion of the project, which is under various stages- land acquisition, pipeline welding and laying of the pipeline – will be completed by March 2025”, she said.

SHOW MORE

Agartala: Work under the Rs 9,265-crore North East Gas Grid (NEGG) project is expected to be completed in Tripura by March next year, an official said on Friday. Under the NEGG project as part of a plan to synchronise gas supply in the region, 253 km of gas pipeline will be laid across seven districts in the northeastern state.

“The North East Gas Grid (NEGG) project in seven districts of Tripura is being undertaken by a joint venture entity- Indradhanus Gas Grid Ltd (IGGL) having stakes of five companies- GAIL, IOCL, OIL, NRL (Numaligarh Refinery Ltd) and ONGC,” state Industries and Commerce Department’s Director Vishwasree B told PTI.

Of the total 253 km pipeline target in the state, around 105 km has been covered so far while the “remaining portion of the project, which is under various stages- land acquisition, pipeline welding and laying of the pipeline – will be completed by March 2025”, she said.

“Payments for compensation for land acquisition have been delayed a bit because of non-availability of authenticated documents of the owners. However, the district magistrates (DMs) have resolved the issue and the payments are under process,” she said.

Vishwasree stated that once the NEGG is functional, the gas supply will be easier with consistent pressure which is required for industry use or power generation plants.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/ne-gas-grid-work-in-tripura-to-be-completed-in-march-next-year-official/111687034#:~:text=Agartala%3A%20Work%20under%20the%20Rs,an%20official%20said%20on%20Friday.

show less

GAIL says Urja Ganga gas pipeline completion delayed to March 2025

The 3,306-kilometre Jagdishpur-Haldia-Bokaro-Dhamra pipeline was originally targeted for completion by June 2024. But due to “delay in right of use (RoU) availability”, the completion schedule has been revised “from June 2024 to March 2025”, GAIL said in a stock exchange filing.

SHOW MORE

The construction of the Rs 12,940-crore ‘Urja Ganga’ gas pipeline, India’s most ambitious project taking environment-friendly fuel to eastern parts of the country, has been delayed by nine months and will now be completed by March 2025, state-owned GAIL (India) Ltd said. The 3,306-kilometre Jagdishpur-Haldia-Bokaro-Dhamra pipeline was originally targeted for completion by June 2024. But due to “delay in right of use (RoU) availability”, the completion schedule has been revised “from June 2024 to March 2025”, GAIL said in a stock exchange filing.

The bulk of the pipeline has already been constructed, and gas has started to flow in most cities along the route.

Traditionally, natural gas was available for use as fuel to generate electricity, make fertiliser or turn into CNG and cooking gas only in the western and northern parts of the country, as pipelines taking the fuel from source to users were limited to these parts.

In October 2016, work on laying a pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal, Bokaro in Jharkhand and Dhamra in Odisha began.

The line was extended to Guwahati in Assam from Barauni in Bihar, a length of 726 km, to take the fuel to hereto-unconnected states in the eastern region.

The Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL), popularly called the Pradhan Mantri Urja Ganga pipeline, is to supply gas to the eastern states of Bihar, Jharkhand, Odisha and West Bengal.
Next

GAIL, the firm executing the pipeline, said its board of directors in a meeting on June 28 approved the revision of the completion schedule.

The completion schedule for the 240-km Dhamra-Haldia pipeline has also been revised from June 2024 to March 2025, it added.
The company on May 10, 2019, stated that it has completed awards of all major contracts worth Rs 10,500 crore for pipeline supply and laying of the integrated 3400-km Jagdishpur-Haldia and Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) and Barauni-Guwahati Pipeline (BGPL) pipeline.

The government provided 40 per cent viability gap funding amounting to Rs 5,176 crore for execution of JHBDPL. For the Barauni-Guwahati pipeline, a 60 per cent viability gap funding, amounting to Rs 5,559 crore, has been provided by the government.

The Pradhan Mantri Urja Ganga pipeline will connect all the geographical areas (more than 90) spread over Uttar Pradesh, Bihar, Orissa, West Bengal and further to the northeastern region of India.

When the project is fully completed, the northeastern/eastern part of India will become an integral part of the gas-based economy with the twin benefits of the cheapest gas transportation through Urja Ganga and gas pricing reforms.

Under the unified tariff regulations recently notified by sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB), transportation tariff has been cut by about 50 per cent to Rs 99.90 per million British thermal units for the eastern parts, helping make the clean fuel more affordable.

The pipeline has already started feeding seven city gas distribution (CGD) projects in Varanasi, Patna, Ranchi, Jamshedpur, Kolkata, Bhubaneswar, and Cuttack. The pipeline also connects the refineries, located at Barauni, Haldia, and Paradip.

The JHBDPL has a transmission capacity of 16 million cubic metres of natural gas a day.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-says-urja-ganga-gas-pipeline-completion-delayed-to-march-2025/111391118#:~:text=The%20construction%20of%20the%20Rs,GAIL%20(India)%20Ltd%20said.

show less

L&T bags ‘significant’ offshore pipeline order from ONGC

The order involves works across India’s west coast offshore fields of the ONGC, the stock filing said.

Engineering major Larsen & Toubro’s (L&T) hydrogen energy arm has secured an order worth between Rs 1,000-2,500 crore from ONGC for its eighth phase of the Pipeline Replacement Project off India’s west coast, the $27-billion multinational enterprise said in an exchange filing on July 1.

SHOW MORE

The order, won by L&T’s subsidiary L&T Energy Hydrocarbon (LTEH), involves engineering, procurement, construction, installation & commissioning (EPCIC) of 129-km subsea pipelines and associated modification works across India’s west coast offshore fields of the ONGC, the stock filing said.

“This order reflects ONGC’s continued confidence in L&T, and this emanates from our track record of successfully delivering complex offshore projects. This order further demonstrates L&T’s unwavering commitment to India’s energy requirement,” said Subramanian Sarma, whole-time director & president, energy, L&T.

The stock price of L&T was trading 0.83 percent lower at Rs 3,519.05 on NSE at 12:04 pm.

Meanwhile, the multinational conglomerate last week had said it is experiencing a ‘severe’ shortage of skilled labor across various projects, attributed to factors such as extreme weather conditions and disruptions caused by elections, according to managing director SN Subrahmanyan. Additionally, he added that the firm is currently short of around 25,000-30,000 laborers.

https://www.moneycontrol.com/news/business/companies/lt-bags-significant-offshore-pipeline-order-from-ongc-12759460.html

show less

NexGen Energia to invest Rs 15K cr to open 5,000 green diesel, CBG pumps

Green energy solutions company NexGen Energia plans a Rs 15,000 crore investment to open 5,000 green diesel and compressed biogas (CBG) pumps in the country over the next 10 years.

SHOW MORE

The Noida-based company recently inaugurated its first CBG pump in Mau district in Uttar Pradesh, marking its entry to execute engineering, procurement, and construction (EPC) services in the clean energy sector.

“The company’s commitment to clean energy goes far beyond this single pump. Plans are afoot to open a total of 5,000 green diesel and CBG pumps across the country in multiple phases over the next 10 years, with each pump costing around Rs 3 crore. In this manner, we are set to invest Rs 15,000 crore in the green energy sector,” NexGen Energia Chairman Piyush Dwivedi told PTI.

“Furthermore, this initiative will create approximately 5,000 new entrepreneurs and provide direct and indirect employment to over 10 lakh people. Our goal is to make India self-reliant in the green energy sector, thereby reducing fuel imports by about 30 per cent,” Dwivedi said.

He said the company’s vision goes beyond merely providing clean fuel as it is actively working to build a robust infrastructure to facilitate a sustainable future for transportation in India.

“This significant expansion is expected to attract a substantial investment into the Indian economy, which will spur significant economic growth,” the chairman added.

Earlier in April, Nexgen Energia’s e-mobility arm NGE launched its affordable fleet of two-wheeler electric vehicles (EVs), with prices starting at Rs 36,999.

The company had said it aims to cross sales of more than Rs 500 crore this financial year and set up more than 500 dealers and distributors while generating around 50,000 direct and indirect employment opportunities in the EV sector.

There are plans to introduce electric trucks and buses, which will further strengthen the company’s commitment to sustainable mobility solutions, it added.

https://www.business-standard.com/companies/news/nexgen-energia-to-invest-rs-15k-cr-to-open-5-000-green-diesel-cbg-pumps-124070700190_1.html

show less

ONGC to invest ₹2 lakh cr to meet net zero emission target

ONGC, which produces about two-thirds of India’s crude oil and about 58% of natural gas, has detailed its path to achieving net zero emissions.

State-owned Oil and Natural Gas Corporation (ONGC) will invest about ₹2 lakh crore in setting up renewable energy sites and green hydrogen plants and cutting gas flaring to zero to achieve its 2038 net-zero carbon emission goal.

SHOW MORE

The company, which produces about two-thirds of India’s crude oil and about 58% of natural gas, on July 9 released a 200-page document, detailing its path to achieving net zero emissions.

It listed clean energy projects even as it looks to boost its hydrocarbon output to meet the country’s energy needs.

ONGC will invest ₹97,000 crore by 2030 in setting up 5 gigawatts of renewable energy capacity, green hydrogen, biogas, pump storage plant and offshore wind project, according to the document.

Another ₹65,500 crore will be invested by 2035, mostly in a green hydrogen or green ammonia plant, and the remaining ₹38,000 crore by 2038, primarily in setting up 1 GW of offshore wind projects.

These projects will help the firm offset 9 million tonnes of carbon emissions it is directly (Scope-1 emissions) or indirectly (Scope-2 emissions) responsible for.

ONGC said it will invest ₹5,000 crore to cut gas flaring to zero by 2030 through technological intervention. The firm released into the atmosphere 554 million cubic metres of methane in 2021-22 (base year), mostly because it was an incidental by-product of oil or the quantity was not economical enough to pipe it to consumers.

ONGC will spend ₹30,000 crore in setting up 5 GW solar parks that will convert sunlight into electricity and turbines that will do the same with wind energy. It will add 1 GW of solar and onshore wind capacity by 2035 and 2038 at a cost of ₹5,000 crore each.

It will invest ₹40,000 crore by 2030 and a similar amount by 2035 to set up two 1,80,000 tonnes per annum green hydrogen and/or 1 million tonnes of green ammonia projects.

ONGC, which has installations in the Arabian Sea and Bay of Bengal to produce oil and gas from below the seabed, is also looking at installing offshore wind turbines to generate 0.5 GW of electricity by 2030 and double it by 2035. The first 0.5 GW offshore wind project is likely to cost ₹12,500 crore and the next about Rs 12,000 crore.

By 2038, it will add another 1 GW of offshore wind energy capacity at an investment of ₹25,000 crore, the document said.

The company is also looking at investing ₹20,000 crore for setting up 3 GW of pump storage plants to meet electricity requirements when renewable sources like sunlight and wind energy are not available.

The remaining investment will be in biogas, carbon capture and other clean energy projects. All this while it continues to hunt and produce more oil and gas.

Crude oil, which companies like ONGC pump out from below the seabed and from underground reservoirs, is a primary source of energy. It is processed in oil refineries to produce petrol, diesel and jet fuel. With the world looking to transition away from fossil fuels, companies around the globe are looking at new avenues to use crude oil.

Gas produced in a similar fashion is used to generate electricity, produce fertiliser or convert into CNG to power automobiles or into PNG to fire kitchen stoves.

Scope 1 emissions are from directly emitting sources that are owned or controlled by a company. Scope 2 emissions are from the consumption of purchased electricity, steam, or other sources of energy generated upstream from a company’s direct operations.

ONGC produced 21.14 million tonnes of oil in 2023-24 (April 2023 to March 2024) and 20.648 billion cubic metres (bcm) of gas.

https://www.thehindu.com/business/Industry/ongc-to-invest-2-lakh-cr-to-meet-net-zero-emission-target/article68386470.ece

show less

Torrent Gas commences talks with bankers for IPO, say sources

Torrent Gas, part of the $4.5-billion Ahmedabad-based Torrent Group, has started exploratory talks for an initial public offering and according to sources it could be anywhere in the region of ₹2,000-2,500 crore.

SHOW MORE

An IPO has been part of the company’s plans and in 2020 its management had said that a public listing would be done once it reached a certain scale of operations in terms of revenue. The proceeds of the IPO would be used for investing in infrastructure as well as for acquisitions. However, the public offer is not expected before next year.

There was no response to an email sent to the Torrent group seeking a comment. The two listed entities in the group are Torrent Pharmaceuticals and Torrent Power, both of which have healthy balance sheets.

In the first nine months of FY24, Torrent Gas reported revenue of ₹2,283 crore and an EBITDA of ₹252 crore. The company reported profit after tax of ₹122 crore in FY22 but it reported a loss in FY23.

City gas distribution became a focus area for the group in 2018 and Torrent Gas entered the business that year acquiring what it later named as Torrent Gas Pune and won licenses for 13 areas. Currently it has gas distribution licenses in 17 geographical areas operating through seven special purpose vehicles. The company has been receiving considerable financial and operational support from its holding company Torrent Investments, which had infused around ₹1,600 crore in the company as of March 2023, according to Crisil.

Investment

In 2021 the company had said that it would invest around ₹10,000 crore across the country on laying infrastructure for gas distribution of which about half was to be in Tamil Nadu.

While Torrent Investment is expected to continue to provide support to the company since it is strategically important to the group, sources said a public listing will also unlock value for the holding company. According to Crisil, Torrent Investment had good liquidity driven by the market value of ₹94,000 crore of investments in Torrent Power and Torrent Pharma. Torrent Gas is likely to generate ₹150-200 crore cash over the medium term.

The rating agency said it expects healthy revenue growth and robust operating profitability for Torrent Gas over the medium term, “backed by expected ramp-up in operations because of capex, controlled input cost pressures and better economies of scale reducing fixed operating cost.”

https://www.thehindubusinessline.com/companies/torrent-gas-commences-talks-with-bankers-for-ipo-say-sources/article68392441.ece

show less

IPS Anant Kumar Singh takes up additional charge as CVO, GAIL

New Delhi: In a significant move in the PSU sector, IPS Anant Kumar Singh has been given an additional charge of CVO, Gas Authority of India Limited (GAIL), Delhi for six months. He is currently serving as Chief Vigilance Officer (CVO) of Indian Oil Corporation Ltd. (IOCL). Singh is a 1994 batch IPS officer of the MP cadre

SHOW MORE

The order granting him the additional charges at GAIL was issued by the Department of Personnel and Training (DoPT). The order noted that Anant Kumar Singh will hold the additional charge for six months from the date of assuming the post’s charge. This appointment will continue until the appointment of a regular CVO for GAIL or until further orders, whichever occurs first.

In his dual role, Singh will be responsible for maintaining transparency and sustainability as key priorities for both GAIL and IOCL. He will also manage strategies to strengthen governance frameworks and boost vigilance practices within these organizations.

https://apacnewsnetwork.com/2024/07/ips-anant-kumar-singh-takes-up-additional-charge-as-cvo-gail/#:~:text=The%20order%20granting%20him%20the,of%20assuming%20the%20post’s%20charge

show less

Policy Matters/ Gas Pricing/ Others

Govt announces guidelines for funding testing facilities under National Green Hydrogen Mission

The Ministry of New & Renewable Energy (MNRE) on Thursday said that it has developed  guidelines for funding of testing facilities, infrastructure, and institutional support for the development of standards and regulatory frameworks  under the National Green Hydrogen Mission.

SHOW MORE

The scheme will support identification of gaps in the existing testing facilities for components, technologies, and processes in the value chain of Green Hydrogen and its derivatives. The scheme will support creation of new testing facilities and upgradation of existing testing facilities to ensure safe and secure operations, the Ministry added.

The scheme will be implemented with a total budgetary outlay of ₹200 crore till FY26. The National Institute of Solar Energy (NISE) will be the Scheme Implementation Agency (SIA).

The scheme encompasses developing  robust quality and performance testing facilities to ensure quality, sustainability, and safety in GH2 production and trade.

The government aims to ensure the safe and secure operation of equipment and instruments used in the Green Hydrogen value chain.

The NISE will issue the Call for Proposals (CfP) to set up the testing infrastructure under the scheme through a transparent process. The MNRE will issue administrative sanctions for the projects under the scheme based on the recommendations of Project Appraisal Committee (PAC).

The NISE will monitor, facilitate and share the knowledge gathered under the projects through project completion reports, monitoring reports, workshops, and publications to disseminate findings, best practices, and lessons learnt.

The scheme aims to leverage existing testing resources and infrastructure with different agencies. It will fund capital expenditures required for establishing new testing infrastructure and upgrading existing testing facilities.

Financial support for the establishment of testing infrastructure will be evaluated and granted on a case-to-case basis, taking into consideration the specific requirements and merits.

The National Green Hydrogen Mission was launched on January 4, 2023, with an outlay of ₹19,744 crore up to FY30. It will contribute to India’s goal to become Aatma Nirbhar (self-reliant) through clean energy and inspire  the global clean energy transition.

The mission will lead to significant decarbonization of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.

https://www.thehindubusinessline.com/economy/policy/govt-announces-guidelines-for-funding-testing-facilities-under-national-green-hydrogen-mission/article68366769.ece

show less

Govt to roll out new ship building policy soon, aims to put India in top 10 list


New Delhi, July 4 (IANS): The Government will come up with a new Ship Building and Ship Repair Policy soon under the 100-day action plan with the aim of taking India into the ranks of the top 10 countries in the sector by 2030 and the top 5 by 2047, Secretary, Ministry of Ports, Shipping, and Waterways, T.K. Ramachandran, said on Thursday.

SHOW MORE

“If the tremendous demand stemming from the needs of the Indian shipping market are adequately targeted by Indian shipyards, it may result in an opportunity to the extent of over $237 billion (Rs 20 lakh crore) by 2047,” according to an official statement.

Ramachandran chaired a workshop on Thursday that was attended by more than 100 participants from 50 organisations including various government ministries, departments, shipping operators, and public sector as well as private shipyards.

Strategies for revitalising the shipbuilding and repair ecosystem within India and aligning it with India’s ambitious Maritime India Vision 2030 (MIV 2030) and Amrit Kaal Vision 204 were discussed at the meeting. MIV 2030 has set a bold target to elevate India’s global ranking in shipbuilding and ship repair from over 20th place to the top 10 and an ambitious goal has been set for the top 5 position, as outlined in the Amrit Kaal Vision 2047.

“The inputs and insights that have been received from the distinguished voices of the Industry were noted and the Ministry hopes to address the various issues that were raised, incorporate them into their 100 days agenda, and suitably help develop and nurture the ecosystem to achieve the ambitious targets,” according to an official statement issued after the workshop.

“Through this interactive workshop, MoPSW aims to present specific policies based on stakeholder inputs and invite further valuable contributions to drive demand and capacity growth in these sectors,” Ramachandran said.

The idea of the event was to bring the demand generators and the suppliers/builders onto a collaborative common platform to formulate ideas to ensure that the large demand from the Indian shipping industry becomes an opportunity for the shipbuilding industry.

In the event, the stakeholders deliberated upon the limitations of Indian shipyards, the incentives needed, both on the supply and demand sides, and the assistance that could be provided by the MoPSW to facilitate the same.

“Notable advancements made in the development of indigenous low-emission or zero-emission ships/vessels by Indian shipbuilding companies showcase our potential to lead the world in safe sustainable and green shipbuilding,” the official statement said.

 

MoPSW is working on an integrated approach to bringing together shipbuilding stakeholders through the development of Maritime Clusters, it added.

https://in.investing.com/news/hdfc-bank-shares-in-red-on-soft-q1-business-update-but-brokerages-maintains-bullish-stance-4292739

show less

Delhi PUC certificate charges hiked after 13 years. Check latest prices

The Delhi government has raised the charges for Pollution Under Control (PUC) certificates for petrol, CNG, and diesel vehicles after a gap of about 13 years.

Delhi Transport Minister Kailash Gahlot announced this on Thursday. “The Delhi government is committed to maintaining the city’s air quality and ensuring that all vehicles meet the required pollution standards,” he added.

SHOW MORE

Delhi PUC Certificate Latest Charges

The charges for two and three wheelers have been increased from Rs 60 to Rs 80, and for four wheelers from Rs 80 to Rs 110. The charges of PUC certificates for diesel vehicles has been revised from Rs 100 to Rs 140.

All motor vehicles in India must possess a valid PUC (Pollution Under Control) certificate after one year from their registration date, according to the Central Motor Vehicles Rules, 1989. For four-wheeler BS-IV compliant vehicles, the certificate remains valid for one year, while for others, it is valid for three months.

Charges for PUC certification were last raised in Delhi in 2011. However, fines for vehicles without a PUC certificate saw significant increases over the years. Vehicle owners without a valid certificate now face imprisonment of up to six months, a fine of up to Rs 10,000, or both, as per the Motor Vehicles Act.

In Delhi, the PUC certification process is conducted in real-time and is integrated with the vehicle registration database.

More than 85% of vehicles on the streets of Delhi without PUC certificates are two-wheelers, according to a 2023 report by the Times of India which cited data from the transport department. As per Delhi Statistical Handbook 2023, the total number of vehicles registered in the capital stood at 79,45,596 including
20,71,115 cars and jeeps, 52,94,900 motor cycles and scooters, 93,654 auto rickshaws, and 83,278 taxis.

https://economictimes.indiatimes.com/news/india/after-13-years-delhi-govt-increases-puc-certificate-charges/articleshow/111660176.cms?from=mdr

show less

Mahanagar Gas hikes rates for CNG, domestic PNG in Mumbai: Check latest prices here

Mahanagar Gas (MGL) announced a hike in prices for CNG and domestic piped natural gas (PNG) in and around Mumbai from today (July 9) onwards, the state-run firm said in a statement. The price of delivered CNG will be hiked by ₹1.5 per kg while domestic PNG will see an increase of ₹1/SCM, the statement said.

SHOW MORE

https://www.msn.com/en-in/news/other/mahanagar-gas-hikes-rates-for-cng-domestic-png-in-mumbai-check-latest-prices-here/ar-BB1pDydO?ocid=BingNewsVerp

show less

GO TOP

LNG Use / LNG Development and Shipping

India’s LNG imports at 44-month high in June as gas-based power output jumps amid severe heatwave

Provisional LNG vessel tracking data from commodity market analytics firm Kpler shows that India imported 2.60 million tonnes (mt) of LNG in June, the highest in as many as 44 months.

India’s liquefied natural gas (LNG) imports touched a near four-year high in June as gas-based power plants operated at notably higher run rates than their usually subdued capacity utilisation levels amid a surge in electricity demand due to the severe heatwave. Reasonable prices and ample availability of LNG, or super-chilled gas, in the international spot market and the government’s thrust on raising power production to meet high summer demand evidently led to higher-than-usual electricity generation by gas-based units, thereby pushing LNG purchases higher.

SHOW MORE

Provisional LNG vessel tracking data from commodity market analytics firm Kpler shows that India imported 2.60 million tonnes (mt) of LNG in June, the highest in as many as 44 months. As per data from the Central Electricity Authority (CEA), power generation from gas-based units in June was 4.60 billion units (1 unit is 1 kilowatt hour), nearly 52 per cent higher than 3.03 billion units in the corresponding month of last year. In June 2023, LNG volumes delivered to India stood at 1.77 mt.

For the April-June quarter (Q1)—the peak summer quarter in most parts of India—power generation by gas-based plants jumped 62.5 per cent year-on-year to 13.49 billion units. The overall plant load factor (PLF)—capacity utilisation of power generation units—for gas-based plants in Q1 this year was almost 25 per cent, up from 15.3 per cent in the year-ago quarter. PLF for gas-based power plants in June this year was 25.8 per cent, up from 17 per cent in June 2023.

To be sure, gas-based power plants use domestic natural gas as well as imported LNG as feedstock. The CEA’s provisional data for June did not mention the total natural gas volumes consumed by the power sector as well as the split between domestic natural gas and LNG. In June of last year, over 53 per cent of natural gas consumed by gas-based power plants was imported LNG. In April 2024—the last month for which detailed fuel consumption data for gas-based units is available—imported LNG accounted for nearly 56 per cent of the total natural gas consumed by power plants.

As domestic natural gas production is able to meet just around half of India’s total gas consumption, the cheaper local gas is allocated as per a priority list in which city gas distribution and fertiliser sectors have a higher priority than the power sector. As imported LNG is usually costlier than domestic gas, gas-based power plants have been operating at very low capacity use levels mainly due to unfavourable economics.


In anticipation of a severe summer, the Power Ministry had invoked the Section 11 of the Electricity Act, 2003, on April 12, issuing a set of instructions to the power generation companies to ensure that electricity demand is met. As part of the instructions, idling gas-based power plants were asked to operate from May till the end of June. At almost 25 gigawatts, India’s gas-based power generation capacity accounts for 5.6 per cent of the country’s overall installed generation capacity, as per Power Ministry data.

In May, S&P Global Commodity Insights had said that with subdued prices of LNG in the spot market and growing demand for the fuel in India, there was a ramp-up in India’s spot LNG purchases, with deliveries for a number of cargoes scheduled in June.

“India has already set several all-time highs this year when it comes to power generation as coal-based energy alone cannot meet the country’s rising needs. It is a combination of more coal, more gas, more renewables, anything that is handy to avoid shortages,” said Viktor Katona, head of crude analysis at Kpler.

Going forward, however, LNG deliveries to India are expected to be lower than volumes seen in June due to relatively higher spot prices of the fuel as well as expectations that power demand in the country will cool off slightly in the main monsoon months.

“LNG prices across Asia have edged higher in June amid widespread heatwaves and consequently higher power generation needs…maximizing LNG imports is no longer that attractive commercially. Current outflows en route to India suggest both July and August would be lower than June (in terms of LNG import volumes),” Katona said.

https://indianexpress.com/article/business/commodities/indias-lng-imports-at-44-month-high-in-june-as-gas-based-power-output-jumps-amid-severe-heatwave-9433701/

show less

Electric Mobility/ Hydrogen/Bio-Methane

BII bullish on Indian EV ecosystem, expects to invest $300 mn in 3 yrs: MD

British International Investment, UK’s development finance institution, is betting big on the Indian electric vehicles ecosystem and expects to invest another $ 300 million in the next three years, according to its MD and Head of Technology & Telecoms, Abhinav Sinha.

SHOW MORE

The company, which has backed Mahindra group’s electric vehicles (EV) arm besides other startups like Euler Motors, Turno and Battery Smart, has already invested around $ 300 million in the Indian EV sector and sees further investment opportunities in EV manufacturing, components and financing segments in the country.

“India has quite an evolved auto market… On the EV side, the penetration right now lags the rest of the world… The (overall) penetration of EVs in India is something like 6 per cent and we see it quite easily expand, double and more than double quite quickly,” Sinha told PTI in an interview.

He further said, “the leader today is China, but for India to be significantly ahead of where it is today… we think it’s a very achievable sort of an objective… So we’re quite bullish.”
Sinha was responding to a query on how British International Investment (BII) sees the EV ecosystem in India compared to the other markets in the world and investment opportunities in the country.

By 2030, he said there will be a “massive level” of EV penetration in public transportation in India and there will be “quite a bit of traction on the passenger (electric) cars, as more and more people adopt it”.

“I would imagine even if it’s not as much as China, it’ll be ahead of Europe and the US in the way it’s going and all the push coming from the government as well as the logic of total cost of ownership,” Sinha said.

On BII’s investments in India, he said, “We have invested ($) 300 million so far in this whole EV space… we’ve backed Mahindra in India, on their EV platform and that’s a very significant investment for us, almost $ 250-million.”
Moreover, it has also made investments in Euler Motors, a startup commercial EV manufacturer, Turno, an EV distribution and financing for small businesses and individuals and Battery Smart, a battery-swapping network for electric two- and three-wheelers.

When asked about BII’s further investment plans in the Indian EV ecosystem, Sinha said, “It’s hard to say an exact number but we have invested $ 300 million over the last three years and I would expect a similar sort of pace going forward.”

On the strategy for future investments, he said, “What we realised is that a lot of focus has to go on earlier stage investments and these tend to be smaller, even though the number of our typical sizes in these spaces are like $ 5 million to $ 10 million investments. Maybe the numbers may not stack up quite a bit initially but as these companies become bigger we then follow with another investment.”
For BII in India, he said climate in general has the highest attention and within that “EV is probably going to be the largest area for us to invest.”

“So, we will continue investing in the manufacturing side and we will extend that in the components and the financing side. It is a space which will take a lot of investment. We will invest across the entire value chain,” Sinha said.

https://www.business-standard.com/industry/auto/bii-bullish-on-indian-ev-ecosystem-expects-to-invest-300-mn-in-3-yrs-md-124062300139_1.html

show less

The complexity of green transition

As climate change plays out and India prepares to transition towards lower carbon emissions and a greener economy, a range of challenges needs to be addressed. One such area is the impact on government revenues. An inordinately high proportion of state and central government revenues, which according to one estimate, account for above 3 per cent of India’s gross domestic product (GDP), emanate from fossil fuels. To illustrate, tax and non-tax revenues from fossil fuels are greater than India’s entire defence Budget and also exceed what the central government spends on education and health. 

SHOW MORE

But it is not just the quantum but the complexity of change that will be India’s biggest challenge.  Multiple sources of funds will dry up as we consume less fossil fuel, revenues from public sector enterprises (PSEs) involved in fossil fuels will fall, and those requiring subsidies, such as for renewable energy, will require more. The dependence on revenues also differs from state to state.  Some states, such as Odisha, have higher royalty revenues due to coal mining, while others such as Maharashtra rely more on tax revenues. 

The problem, therefore, is not merely of generating additional government revenues from non-fossil sources, but also about sharing these revenues in a manner that is satisfactory for the many stakeholders. Take, for instance, the issue of state autonomy over tax generation. One of the key reasons why petroleum products could not be included in the goods and services tax (GST) was that the current value added tax (VAT) regime enables state governments to decide on the level of taxation autonomously. GST, for all its benefits, does not score high on state autonomy considerations. Any movement away from VAT will rightly be a cause for concern to states interested in maintaining some autonomy over their revenues.

There is another challenge related to the high levels of subsidies being given to the electric vehicle (EV) sector. Policy rightly focuses on steadily reducing the share of petroleum-driven vehicles and increasing that of EVs. However, the challenge is that the EV solution requires significant subsidies, whereas fossil fuel vehicles are revenue generators for the government. Reducing EV subsidies will slow down the transition, but maintaining high subsidy levels will impose a growing burden on government revenues. What makes this challenge more complex is that the EV rollout and fossil fuel reduction have different stakeholders within the government.

Yet another class of issues are related to reducing the damage that transition will cause. Take, for instance, the coal mining jobs that will be eliminated over the next few decades as dependence on coal reduces. There are two categories of jobs that will be lost. The first category includes those who are directly employed in coal mining. These are easier to deal with for two reasons. First, those directly employed in coal mining are fewer in number, and second, their numbers will fall over the next few years due to technological changes in the mining sector and natural attrition. But the key challenge is for those who are indirectly employed due to coal mining — these are the many providers who are servicing mines and miners.  They are far greater in number and typically there are few economic alternatives in the vicinity of coal mines. Another example is related to stranded assets in the thermal power sector, or the capital that will become redundant as India shifts away from thermal power towards renewable energy.

In other words, we can broadly classify the revenue needs of the transition to include those required to (a) cover falling revenues, (b) enable rapid transition, (c) correct the economic destruction that will accompany the transition, and (d) identify appropriate allocation principles that will not disempower the states. Taken individually, each of these is a tough challenge to address, but taken together, they seem insurmountable.

The rational approach in such circumstances may appear to be delaying efforts at finding the right solutions. The 2070 Net Zero target is some decades away, new technologies are emerging rapidly, and the Indian economy is undergoing a deep structural change. It might, therefore, seem that a wait-and-watch approach is the right path ahead.

And that is precisely what India cannot afford.  The transition process has already started and is irreversible. Renewable energy capacity and generation are growing rapidly, and so are EVs. The latter are also part of a (silent) strategy to use the depth of domestic markets to leverage scale economies for tapping into global markets. At the same time, the costs of transition will rise going forward, and the bulk of these will need to be borne by the government.  Therefore, doing nothing on the revenue front will lead to a situation where growth in government revenues is steadily curtailed, which will impact the fiscal situation quite significantly over the next decade or two, with obvious adverse implications for growth.

There are some solutions to the problem, but each has different characteristics and India will need to identify what works best for it. Increasing direct tax rates, for instance, is unlikely to work given experience with implementation and leakages. Carbon taxes will hasten the transition and may reduce the immediate revenue challenge but will not solve the long-term fiscal problem. Rationalising GST may work but will require significant negotiation between the Centre and the states. New forms of taxes, such as distance or road use taxes, may be easier to implement but may not address the state autonomy objective. Reducing non-productive expenditure or welfare expenditure is always easier to call for than to implement.  Moreover, it would be difficult to reduce welfare expenses in an era where trickle-down effects are operating slowly.   Some solutions, such as carbon taxes, may even require constitutional amendments, which are possible but will take time and much coordination.

An important feature of this problem is that most key stakeholders are a part of the government, namely, Central and state governments and PSEs. And here, actions within the government have already shown the path ahead. By allowing fossil fuel PSEs to enter the renewable energy space, the government has to some extent aligned the interests of the fossil fuel PSEs with that of the transition. 

An alignment between the central and state governments on transition and associated action on revenue generation may be a more difficult exercise, but it is critical. Many of the costs, whether changing expenditure profiles, stranded assets, or employment impacts, will be borne by the states, which are not ready for them. India, therefore, requires the creation of a formal mechanism that maps state-level transition requirements against revenues, identifies emerging gaps, and explores various alternatives ahead. Most importantly, it will need to identify possible revenue sources where state governments have some autonomy.

https://www.business-standard.com/opinion/columns/the-complexity-of-green-transition-124070101201_1.html

show less

PM orders steps to enhance port facilities

During daylong Karachi visit, Shehbaz receives briefing on working of KPT, PQA, PNSC. KARACHI: Prime Minister Shehbaz Sharif has directed the enhancement of port facilities in Karachi to increase cargo handling capacity, aiming to cater to the needs of Central Asian states and potentially generate billions of dollars for Pakistan.

SHOW MORE

During a daylong visit to Karachi, the prime minister chaired a meeting concerning the Karachi Port Trust (KPT), the Port Qasim Authority (PQA), and the Pakistan National Shipping Corporation (PNSC).

At the KPT, PM Shehbaz received a briefing on the operations of KPT, PQA, and the national flag carrier PNSC, the PM Office Media Wing said in a press release.

Highlighting Pakistan’s strategic regional location, Shehbaz discussed his interactions with Russian President Vladimir Putin and Central Asian leaders during his recent visit to Kazakhstan.

“Pakistan provides the most suitable sea trade route for the Central Asian states. The Central Asian states have expressed deep interest in using Pakistan’s ports for trade,” the prime minister stated.

He stressed the financial benefits of upgrading port systems and improving access, saying, “Pakistan can earn billions of dollars in foreign exchange by modernising the systems at the ports and by further improving their access. Development of existing ports in Karachi will increase our exports.”

The prime minister instructed authorities to reduce customs clearance time by installing modern equipment and scanning machinery at both ports.

He stressed the need for priority measures to fully utilise the ports’ capacities and ordered that the Lyari Expressway should remain open 24 hours to ensure uninterrupted goods delivery to and from the Karachi port.

Additionally, he directed for connecting the Malir Expressway to the port to further enhance goods delivery and called for increased rail capacity for cargo transport.

Addressing the PQA, Shehbaz stated, “Fees for the LNG [liquefied natural gas] ships at the Port Qasim should be reduced to the prevailing rates at the international level,” and sought a comprehensive action plan for shipping law regulation.

To improve the PNSC, the prime minister ordered the formulation of a comprehensive action plan to reduce costs and enhance operational efficiency.

The PM reaffirmed the government’s commitment to private sector development, ease of doing business, and investor convenience, stating, “Pakistan’s economy is stable and on the path to development. We are providing all kinds of facilities to the exporters for the development of Pakistan’s export industry.”

The meeting was attended by federal ministers Muhammad Aurangzeb, Jam Kamal Khan, Ahad Cheema, Attaullah Tarar, Qaiser Sheikh, Sindh Governor Kamran Tessori, Chief Minister Syed Murad  Ali Shah, and other high-ranking officials.

 Regional corridor

 Meanwhile, speaking during a visit to the Hutchison Port, South Asian Pakistan Terminal where he was given a briefing, the prime minister said the government was taking steps for the development of the seaports for the provision of the shortest corridor to the regional countries, especially to the Central Asian states.

He said with a spur in sea trade by the Central Asian states, China and other countries of the region via Pakistani ports, the country could earn billions of dollars as foreign revenue every year. On the occasion, he directed the Federal Board of Revenue (FBR) chairman to prioritise the installation of the latest scanners at the Pakistani ports.

The prime minister said that the customs authorities in collaboration with the ports authorities should ensure immediate steps for the complete utilisation of the seaports in Pakistan.

The prime minister was briefed that the process for the installation of the latest scanners by the FBR was in the final stages, which would enable rapid scanning of containers in the shortest time with the assistance of the latest gadgets and artificial intelligence. 

For the progress of the country, the prime minister said, the ports needed to be also developed. He added that in order to increase the country’s exports, the government was taking measures on a priority basis.

The prime minister was apprised that Hutchison Port, South Asian Pakistan Terminal was amongst the few global terminals located in deep sea, which was being automatically operated upon. The terminal had been equipped with the latest technology and scanners and its operations were of international standards.

The prime minister was further informed that the port could handle the shipment of 35,00,000 containers annually. He appreciated the latest operations of the port.

https://tribune.com.pk/story/2477573/pm-orders-steps-to-enhance-port-facilities

show less

Adani plans $9 bn capex to kickstart green hydrogen biz

The Adani group will spend $9 billion to build manufacturing and transportation infrastructure for the first phase of its ambitious green hydrogen venture, pivotal to the conglomerate’s business aspirations and crucial to the world’s third most polluted country’s net-zero transition.

SHOW MORE

Once production gets under way, Adani group will hire specialized ships to export what will be the world’s cheapest green hydrogen and its derivatives to Europe and some Asian countries, three people directly aware of the conglomerate’s plans said on condition of anonymity.

“This is the most decisive entry into green hydrogen being planned by any group in the country,” one of the three people said. In the first phase, Adani plans to achieve a capacity of 1 million tonnes per annum (mtpa) of green hydrogen, which is produced by breaking down water in an electrolyzer using renewable power.

Adani Group, through Adani New Industries Ltd., is working on one of the most ambitious green hydrogen projects in India from the Rann of Kutch in Gujarat.

“The group is in the first stage. Around $4 billion will be invested for setting up the manufacturing components and equipment needed to operate the plants, stacks and balance of plant (BoP) in the production cycle. This is the most critical part of the cycle. Once it is ready, it can support the next two phases too with some degree of expansion,” the person added.

Adani’s potential rivals in green hydrogen include Larsen and Toubro Ltd, Indian Oil Corp. Ltd, Acme group and Oil India Ltd.

Green hydrogen has become the chosen route for many countries’ climate roadmaps and net-zero pledges, as they look to eventually stop burning fossil fuels to generate energy or produce other chemicals.

A “stack” is an assembly of electrolyser-based fuel cells, which acts as a unit that produces electricity. It is the core working element in an electrolyzer-based power plant. A single stack consists of hundreds of fuel cells. The company aims to minimize the cost of green hydrogen equipment by making them in-house as much as possible, the three people said.

 

The $9 billion green hydrogen plan includes a $5 billion investment in manufacturing and operating electrolyzers.

“There will be 4-5 different stages. The plan is to quickly develop ½ mtpa in the next 2-3 years and take it up from there to 1 mtpa. During this phase, the full chain for a 5GW electrolyzer manufacturing capacity planned may need an investment of $4.5 – 5 billion,” the second person said.

An email sent to Adani group remained unanswered till press time.

The first phase will be based on alkaline electrolyzers, composed of electrodes with a porous separator and an alkaline electrolyte. Alkaline electrolysrers typically have a maximum power input of 30 kW. To produce one kg of hydrogen, at least nine kg of water is required with a total of 50-55 kWH of electrical unit.

At a later stage, Adani plans to manufacture electrolyzers based on anion exchange membrane as well, which has higher operational flexibility and better efficiency as compared to alkaline.

Eventually, Adani group aims to manufacture over 17.5GW of electrolysers, according to the three persons.

Adani New Industries, which contributed 9% of the group’s total income in FY24, has established 4GW capacity of solar cell and module manufacturing, 2GW of ingot-wafer manufacturing and 1.5GW capacity of wind manufacturing.

The capex also include building a Balance of Plant (BoP), an auxiliary set-up of machinery and components within a power plant, which is required to keep energy generation stable and safe. This becomes critical since hydrogen is far more explosive than other fuels.

The Adani group, plans to use its own ports on the west coast of India to transport green hydrogen and its derivatives and off-takes to other countries in Europe and Asia by ships that will be specially designed, said the third person. Adani operates the country’s largest private port in Gujarat.

“Transportation of green hydrogen is an elaborate task that needs a separate focus,” said the third person, adding the special ships which are being designed may cost $300-400 million each.

He said green hydrogen needs to be liquefied and cooled below -240 degree Celsius to transport it in bulk. “Adani won’t build or operate those ships at this stage,” said the third person.

“There are specialized ship-makers for this, which will be used by Adani as well. The number of ships will depend specifically on the amount of orders for green hydrogen or its off-takes or derivatives that Adani receives from offshore markets post production. Currently, very few companies are designing such ships. Such type of cargo is currently not readily available in the market,” said the third person.

In September, Adani formed a joint venture with Japan’s Kowa Group to sell its green hydrogen and other derivatives in Japan, Taiwan and Hawaii. “The group is in discussions with several other key players in Japan, Korea, Singapore and Europe for selling products that comes as off-takes from green hydrogen,” said the second person.

“The end users of green hydrogen will mostly be government and municipal entities. It can be used for operating city buses, trains, metro and so on,” added the third person.

Adani’s green hydrogen business is expected to create 7,500-10,00 new jobs, according to the first two persons. “Alongside, it may create further employment externally, especially in the logistics sector,” said the first person.

“At Adani, the port infrastructure for loading and discharging terminals meant for green hydrogen and its off-takes are being made ready. These are like Petronet’s LNG terminals. We have to use cryogenic liquid carrier tanks for transporting green hydrogen. The off-takes can be carried by conventional ships. This space itself will create many new jobs externally,” said the third person.

Adani is expecting to do significant business making and selling green hydrogen and its derivatives and off-takes including ammonia and urea. The group wants to attain a 5.6 mtpa target in producing green ammonia and other such derivatives by 2030, which could be further used to produce fertilizers and methanol.

The group’s Mundra port will export the off-take products to Europe, Singapore, Japan and Korea.

The green hydrogen plan being critical to their future plans, according to the two persons, in the next two years the group looks to increase its ingot, wafer, solar modules and cells manufacturing capacities to 10 GW each, which will be crucial in the production of green hydrogen.

The two persons said the group will manufacture electrolyzers based on both alkaline and anion exchange membrane technologies.

As per International Energy Agency, by 2030, the total hydrogen demand globally is estimated to increase by 1.5 times to reach more than 150 mtpa, with nearly 30% of it from new applications.

Currently, the country depends on grey hydrogen, with over 6.5 mtpa in annual consumption. Most of this is used by the country’s fertilizer and refining companies.

By planning to invest $5 billion in electrolyzer manufacturing, Adani group aims to capture this market by 2030, by when the country’s hydrogen demand may nearly double to around 11 mtpa due to rising demand from existing firms and across emerging sectors.

To be sure, to boost its electrolyzer production capacity based on alkaline technology, Adani has forged multiple tie-ups with technology providers such as Australia’s Cavendish Renewable Technology and Italy’s HyDep (Hydrogen for Development of Environmental Projects s.r.l.) Adani has completed its design for prototype for alkaline electrolyzers.

In its latest presentation a fortnight ago, Adani group said it plans to commission the first complete electrolyzer manufacturing facility by 2025.

Besides, the group is developing a supply chain for achieving 90% indigenization of electrolyzers, which will be key to the group’s commitment to keep green hydrogen cost less than $1 per kg as compared to $4-5 per kg globally now.

Emphasizing on his $50 billion green hydrogen investment plan, Gautam Adani, in his address to the shareholders in the latest annual report said the group has identified the components of its six types of capital, within which the financial capital component included a strong balance sheet, funds allocation and capital management approach.

While saying this, Adani mentioned this financial capital as the main driver of the group’s incubation strategy, green hydrogen journey, and efficient project execution.

Adani group has earmarked $100 billion in investments to transition to green energy-related capabilities by 2030. This includes building an integrated green hydrogen ecosystem, encompassing three giga factories to develop 10 GW solar panels, 5 GW wind turbines and 5 GW hydrogen electrolysers and expanding the overall portfolio of Adani renewables to 50 GW.

At present, the total electrolyser manufacturing capacity is estimated to be barely 2GW-4GW per annum globally, while India alone will require over 30GW electrolyser installation capacity and over 100 GW renewable capacity by 2030 for production of its planned 5MTPA of green hydrogen, according to the two persons.

The government has earlier said that by 2030, at least 40% of hydrogen consumption in the country should be met by green hydrogen, while India becomes the global hub for production, usage and export of green hydrogen and its derivatives.

Adani is also competing with other industrial powerhouses to capitalize on this domestic demand. Rival Larsen and Toubro Ltd in August 2022 commissioned a 380kW alkaline electrolyser-based (45kg/day) green hydrogen plant at its engineering complex in Hazira.

State-run GAIL is in the process of implementing a 4.3 tonnes per day green hydrogen plant in Madhya Pradesh, which is expected to be commissioned shortly.

Indian Oil Corp. Ltd is about to implement a 5KTPA and 2KTPA green hydrogen plants at its Mathura and Panipat refineries, respectively.

ACME Group has already set up an integrated pilot project for green hydrogen and green ammonia plant at Bikaner in Rajasthan, which can save about 4,400 tonnes per annum of carbon dioxide emissions.

State-owned crude oil and natural gas production firm Oil India Ltd has commissioned a 99.999% pure green hydrogen pilot plant with an installed capacity of 10kg per day at its Jorhat Pump Station in Assam in April 2022.

https://www.livemint.com/companies/adani-plans-9-bn-capex-to-kickstart-green-hydrogen-biz-11720358251426.html#:~:text=The%20Adani%20group%20will%20spend,polluted%20country’s%20net%2Dzero%20transition.

 

show less

Hydrogen harvest. Fraunhofer’s semiconducting glass generates hydrogen from sunlight

While the concept of using sunlight to split water to produce hydrogen (and oxygen) without the interface of electricity (called photoelectrochemical process) is not entirely new, the German Fraunhofer Institute has come up with its own design, which uses semiconductors. Researchers from the institute have collaborated to create a modular solution that enables highly flexible hydrogen generation and supply solar energy for it.

SHOW MORE

At the heart of this technology is a tandem PEC module. It’s similar to its traditional photovoltaic counterpart, but with one crucial difference: the electricity is not generated for purposes of later electrolysis elsewhere. The entire process takes place in one unit. Caution is needed throughout — since the process results in hydrogen and oxygen, the structure must be designed to maintain a strict separation between the two elements during generation and after.

“To produce the tandem cell, experts coated standard commercially available float or plate glass with semiconducting materials on both sides,” notes a press release from the institute. When the sunlight hits the glass, one side of the module absorbs the short-wavelength light. Meanwhile, the long-wavelength light passes through the upper layer of glass and is absorbed on the reverse side. The module releases hydrogen on the reverse or cathode side and oxygen on the upper/anode side.

Over the project’s three-year term, the Fraunhofer scientists researched and developed high-purity semiconductor materials, which they apply using ultra-gentle coating methods. This allows them to increase the method’s hydrogen yield.

“We use the vapour phase to form layers that are just a few nanometres thick on the glass. The structures created in the process have a huge impact on reactor activity, in addition to the actual material properties, which we have also optimised,” explains Dr Arno Görne, group manager of Functional Materials for Hybrid Microsystems at the Fraunhofer Institute for Ceramic Technologies and Systems IKTS. The photovoltaic elements linked in the module supply the system with additional voltage — that accelerates activity and boosts efficiency.

The result is a reactor with an active surface area of half a square metre. Separated from the oxygen, it generates hydrogen, which can be captured and quantified. Right now, a single module exposed to sunlight under European conditions can generate over 30 kilograms of hydrogen per year over 100 square metres.

 

 

 

“In terms of the dimensions of the tandem cell, we are limited by the fact that our module splits water directly. But it is also necessary for electricity to get from one side to the other to achieve this. As the module area increases, the rising resistance has an unfavourable effect on the system. Currently, the existing format has proven to be optimal. It is stable, robust and significantly larger than any comparable solution,” Görne notes. The compact elements can be connected as needed without any negative side effects, from a single module to large areas – a significant advantage, the release says.

https://www.thehindubusinessline.com/business-tech/fraunhofers-semiconducting-glass-generates-hydrogen-from-sunlight/article68378345.ece

show less

 

 


GO TOP

INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

US: BGE pipeline at Key Bridge site should be closed | READER COMMENTARY

I was surprised to learn that Baltimore Gas and Electric Co. operates a natural gas pipeline at the Francis Scott Key Bridge site (“BGE pipeline at Key Bridge site ‘fully operational’ after shipping channel cleanup,” ).

SHOW MORE

Pipelines pose serious environmental risks even under the best of circumstances. Operating a pipeline in a shipping channel adds significantly to that risk. And given the risk underwater pipelines pose to mariners, it’s clear that BGE’s pipeline is too dangerous to operate and should be shut down permanently.

As BGE admits, shutting down the pipeline temporarily had no “significant impact on customers,” so there’s no reason to believe a permanent shutdown would affect customers either. And while we’re waiting for BGE to shut down the pipeline (and clean up and restore the vicinity around it), the state should hire an independent inspector to ensure that the pipeline doesn’t pose an imminent danger.

https://www.baltimoresun.com/2024/07/01/no-bge-pi

 

show less

Saudi Arabia: Saudi Aramco awards $25bn in contracts for gas expansion

The development of the Jafurah field is expected to cost $100bn and boost the state energy firm’s gas production by more than 60 per cent by 2030

Saudi Aramco, the world’s biggest oil producer, has awarded contracts worth more than $25bn for the second phase of the expansion of its Jafurah gas field and the third phase of expanding its main gas network.

SHOW MORE

The development of the Jafurah field, which is estimated to hold 200 trillion cubic feet of gas, is expected to cost $100bn and boost the state energy firm’s gas production by more than 60 per cent by 2030.

“These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries,” said Amin H. Nasser, Aramco president & CEO.

“The scale of our ongoing investment at Jafurah and the expansion of our master gas system underscores our intention to further integrate and grow our gas business to meet anticipated rising demand.”

Aramco awarded 16 contracts, worth a combined total of around $12.4bn, for phase two development at Jafurah. This phase will include the construction of gas compression facilities, pipelines, the expansion of the Jafurah gas plant, gas processing trains, utilities, sulfur, and export facilities.

The expansion includes the construction of new riyas natural gas liquids (NGL) fractionation facilities in Jubail, including NGL fractionation trains, utilities, storage, and export facilities.

The state-energy giant also awarded 15 lump sum turnkey contracts worth approximately $8.8bn to kick off the phase three expansion of the master gas system. The expansion will increase the size of the network and raise its total capacity by an additional 3.15 billion standard cubic feet per day (bscfd) by 2028 through the installation of around 4,000km of pipelines and 17 new gas compression trains.

Furthermore, Aramco awarded an additional 23 gas rig contracts worth $2.4bn, two-directional drilling contracts worth $612m, and 13 well tie-in contracts at Jafurah, for a total of $1.63bn.

Aramco’s LNG ambitions

Saudi Arabia is working on developing its unconventional gas reserves, which require advanced extraction methods such as those used in the shale gas industry.

Aramco signed 40 corporate procurement agreements worth $6bn with local suppliers in February as the state-owned energy giant seeks to develop the country’s energy services sector while boosting its localisation programme.

The agreements cover the supply of a range of products comprising strategic commodities, such as instrumentation, electrical, and drilling equipment.

Meanwhile, an additional 15 trillion standard cubic feet of gas (scfd) were proven at Aramco’s Jafurah field in February, adding significant volumes to the kingdom’s proven gas and condensate reserves.

The company estimates that Jafurah’s reserves have reached 229 trillion cubic feet of gas and 75 billion barrels of condensates. Jafurah is the country’s largest unconventional non-oil-associated gas field and reportedly the biggest shale gas development outside of the US.

Aramco is expanding its portfolio into LNG at a time when global demand for the fuel has surged, particularly in Europe, which is replacing reduced pipeline supplies from Russia. It forayed into the global LNG market last September by acquiring a minority stake in EIG Partners’ MidOcean Energy in a deal valued at $500m.

The state-energy giant signed non-binding agreements with two US energy firms Sempra and NextDecade, for the supply of 5 million tonnes per annum (mtpa) and 1.2 of mtpa LNG, respectively, for 20 years.

 

https://gulfbusiness.com/aramco-signs-25bn-in-contracts-for-gas-expansion/

show less

Nigeria: CNG Initiative: Conversion Of Vehicles, Free For Commercial Operators

The Nigerian Government says the conversion of vehicles to Compressed Natural Gas is free for commercial operators, with a 50% subsidy on the cost of conversion kits.

The Operations Manager of the Presidential Compressed Natural Gas Initiative (PCNGI), Omo Imokwede disclosed this to Journalists during an inspection of ongoing vehicle conversions in Abuja, the nation’s capital.

SHOW MORE

According to Imokwede, the PCNGI initiative aims to convert one million commercial vehicles from petrol to CNG by 2027, in alignment with President Bola Ahmed Tinubu’s mandate

He explained that installation is also free for commercial operators.

 

“There’s hope in sight. We’re rolling out various conversion centres across the nation. Right now, we’ve kicked off in Abuja. We’re moving towards Lagos and other regions across Nigeria. One thing is clear: PCNGI is pushing this initiative to ensure that conversion centres are accessible to all. The key words are awareness and adoption. Once that is set in motion, especially in the mindset of Nigerians, we’re ensuring that kits are available across the board. The end result is bright. Nigerians should be happy and rejoice that we have enough gas to sustain us. Why can’t we convert that to energy to power our transport system? This is a testament to Mr. President’s direction and vision, pushing through the initiative so that each and every one of us can benefit. There’s hope for us.”

Imokwede also noted that a reasonable number of the centres visited can convert between three to five vehicles per day on average.

“At different centres, we have sensors that can handle between 15 to 20 conversions per day. Imagine if we have those conversion centres across Nigeria; you’re looking at a significant turnaround time. When you multiply that by the number of conversion centres we have, within the next year, a considerable number of cars—both small vehicles and buses alike—can be converted.”

He further explained that, “The plan with the initiative is to ensure the availability of kits is 100 percent in place. We have kits in port that are being rolled out. The specific strategy is to ensure that once these kits become available, execution will be instant, which is paramount for us. The turnaround time is very important. We are definitely going to ease the stress on every Nigerian with this initiative. For commercial vehicle owners, the conversion is free, and the kits are 50 percent subsidized. The initiative and incentive program are pushing through free conversion for commercial vehicles that kick off in Abuja. We are working with transport associations. Nigerians will start feeling the impact of these initiatives. In the vision of Mr. President, our mandate is clear, and we have partners across the value chain.”

The Business Development and Strategy Manager, Omolara Obileye, while explaining the specifics of the conversion scheme during the inspection at the NASENI Portland conversion centre, outlined the varying costs for private individuals, which depend on the size of the CNG cylinder, ranging from 700,000 to 1.8 million naira.

She added that the initiative has started conversion for commercial vehicles.

“We are starting with Abuja today and Lagos, and we will keep rolling out. Announcements will be made regularly as we go to each of the states. Private cars are supposed to pay a fraction of the cost of the conversion, while the transport associations have 100 percent free conversion. However, the cost depends on the vehicle size, as different types of vehicles require different configurations. We have over 12 conversion centres in the Federal Capital Territory, and we will continue to increase the numbers and update the public.”

At Mijo Gas Auto, the Head of the Centre, Mr. Gaurav Goyal, described CNG as very safe and clean.

 “What we want from every Nigerian is to go green. It will be a very good initiative for bringing down the price of items, including the cost of PMS. CNG is not only pocket-friendly, it will reduce food product pricing because transportation will be more cost-effective.”

One of the CNG Engineers, Mr. Joseph Smith, said the price of a litre of CNG is N230 at NIPCO Oil and Gas station.

“With this, a driver can use CNG worth N3000 to travel from Abuja to Kaduna.”

Smith further explained that there is an automatic switch button that can alternate between CNG and fuel in the car without causing any issues.

Car owners were seen at the centres, trying to convert their cars to CNG, and others who have already converted theirs were buying CNG at N230 per litre.

The CNG Conversion Centres visited in Abuja include NIPCO oil and gas station at Airport Road, Kia Motors at Utako, Mijo Gas Auto in Jahi, and ABG CNG in Kubwa.

https://von.gov.ng/cng-initiative-conversion-of-vehicles-free-for-commercial-operators/

 

show less

Turkmenistan: Turkmenistan, Iran sign deal to supply gas to Iraq, Tehran to build delivery pipeline

Turkmenistan and Iran on Wednesday signed a contract for the delivery of 10 billion cubic meters a year of Turkmen gas that Iran will then ship on to Iraq.

The deal was announced by Turkmenistan’s foreign ministry, which did not state the monetary worth of the contract.

SHOW MORE

The ministry’s statement said Iranian companies will construct a new 125-kilometer (77-mile) pipeline to Iran to expand Turkmenistan’s delivery capacity.

The ministry said Turkmenistan plans to increase its gas supplies to Iran to 40 billion cubic meters a year.

Iraq last year faced disruptions in the supply of Iranian gas, which accounted for about 40 percent of its imports.

Turkmenistan is heavily reliant on revenue from sales of the gas in its vast reserves.

And the government was instructed to find alternative options to ensure the operation of power plants in the central and southern provinces of the country.

The former Soviet republic of Turkmenistan relies heavily on the export of its vast natural gas reserves.

China is the country’s main customer for gas and Turkmenistan also is working on a pipeline to supply gas to Afghanistan, Pakistan and India.

https://english.alarabiya.net/News/middle-east/2024/07/04/turkmenistan-iran-sign-deal-to-supply-gas-to-iraq-tehran-to-build-delivery-pipeline

show less

US: New hybrid, compressed natural gas buses coming to Springfield area thanks to $17.8M grant

The Sangamon Mass Transit District is receiving $17.8 million in federal funding to replace a fleet of older buses with new diesel-hybrid and compressed natural gas buses.

Funding for the buses, which are seen as a cleaner alternative, comes after U.S. Rep. Nikki Budzinski, D-Springfield, submitted a letter to the U.S. Department of Transportation supporting SMTD’s application for grant funding earlier this year.

SHOW MORE

“This grant will help the Sangamon Mass Transit District modernize its bus fleet and lower fuel costs, as well as reduce harmful air pollution and help build a healthier future for our community,” she said in a news release. “I’m glad to see the Bipartisan Infrastructure Law continuing to deliver for Central and Southern Illinois with yet another transformational investment.”

 

Last month, SMTD unveiled the first of eight new hybrid buses — the $7.2 million price tag being covered by a mix of state and federal funding according to the transit district. The new funding announced on July 9, SMTD managing director Steve Schoeffel said, will add 19 buses with 12 new hybrid buses and seven compressed natural gas buses replacing older models.

 

Schoeffel told The State Journal-Register the transit district is transitioning its current fleet of 56 buses to zero-emission vehicles. Right now, its focus is on replacing diesel vehicles with diesel-electric hybrids which he projects will take place over the next six to seven years.

“With these new buses that this grant will provide, those will probably be purchased and hopefully in service by spring of 2026,” he said. “When that happens, we’ll be at over 82% low-emission so this gets us well on our way to a 100% low-emission fleet.”

The funding comes as state lawmakers begin to review potential changes to public transit as the Chicagoland’s Regional Transportation Authority could be facing a $730 million budget deficit beginning in 2026, according to the Chicago Metropolitan Agency for Planning.

https://www.sj-r.com/story/news/local/2024/07/11/new-hybrid-compressed-natural-gas-buses-coming-to-springfield-sangamon-mass-transit-district/74340614007/

show less

GO TOP

Natural Gas / LNG Utilization

Bio-LNG: A Pillar of Europe’s Energy Transition to Net-Zero

Bio-LNG (biological liquefied natural gas) is gradually emerging as a promising solution for Europe’s energy transition. Usable with existing LNG infrastructures, this biofuel plays a crucial role in reducing carbon emissions, particularly in the transport and marine sectors. With theEuropean Union aiming for carbon neutrality by 2050, companies are actively exploring the potential of Bio-LNG to achieve these ambitious European energy transition targets.

SHOW MORE

Advantages and challenges of Bio-LNG

The appeal of Bio-LNG lies in its ability to significantly reduce greenhouse gas (GHG) emissions. Under the EU’s Renewable Energy Directive (RED 3), biofuels must account for 42.5% of the energy market, with a sub-target of 29% for transport. GHG savings for Bio-LNG range from 89% to 200%, making its adoption economically viable compared with traditional fossil fuels.

Nevertheless, Bio-LNG production is still under development. The sector faces significant challenges, including the cost of production and the adaptation of existing bio-methane infrastructures. Producers also need to balance subsidies and incentives to switch from grid-injected bio-methane to Bio-LNG.

Growth in the Transportation Market

The European transport sector is preparing for a significant increase in demand for Bio-LNG. The Natural Gas Vehicle Association (NGVA Europe) predicts that 400,000 trucks could be powered by LNG by 2030, compared with just 2,000 today. This expansion is essential to reduce carbon emissions in a sector where low-emission alternatives are limited.

The European Commission is stepping up its energy targets for 2030, requiring hard-to-decarbonize sectors such as shipping and heavy road transport to switch to cleaner fuels. Bio-LNG offers an immediate and practical solution for reducing CO2 emissions, especially as the cost of emissions rises under the EU Emissions Trading Scheme (ETS).

Production prospects and future developments

The number of Bio-LNG production plants in Europe is growing rapidly. At the end of 2022, there were 27 active plants, a figure set to rise to 42 by 2024 and over 109 by 2025. Combined generation capacity is expected to reach 15.4 TWh/year by the end of 2025.

At the same time, the fleet of LNG/Bio-LNG trucks and refueling stations is growing. Italy, the European leader in this field, uses all the biomethane it produces as transport fuel, backed by a favorable legislative framework and a robust support scheme. Shell, for example, plans to add 2,000 LNG-fueled trucks in Europe and offer a Bio-LNG blend to its customers in the Netherlands and Germany by the first quarter of 2024.

Bio-LNG represents a significant step towards a low-carbon Europe. With growing production and adoption, this biofuel actively supports the EU’s ambitious environmental objectives. As environmental regulations tighten, the use of Bio-LNG will become not only a viable option, but also a necessary one for companies seeking to reduce their emissions costs and remain competitive.

https://energynews.pro/en/bio-lng-a-pillar-of-europes-energy-transition-to-net-zero/

show less

Indonesia: Pertamina and NYK to form JV focused on CO2 and LNG transportation

PT Pertamina International Shipping (PIS), a subsidiary of state-owned oil and gas firm Pertamina, has partnered with Nippon Yushen Kabushiki Kaisha (NYK) Group to focus on carbon dioxide (CO2) and liquefied natural gas (LNG) transportation, as well as ship management.

SHOW MORE

Under a signed Memorandum of Understanding (MoU), the duo has agreed to set up a jointly owned ship management company to meet increased demands in Indonesia.

In turn, this will focus on CO2 and LNG movements. As part of this focus, the companies have said they hope to offer liquid CO2 (LCO2) transportation services for storage operators and CO2 emitters.

Playing its role, PIS will focus on the transportation part of the CCS project, which requires ships to move the product [CO2] to carbon storage facilities, such as underground wells.

Yoki Firnandi, CEO of PIS, noted the importance of collaboration for CCS transportation.


He said, “This MoU with NYK drives PIS’ initiative to unlock value and grow beyond Indonesia through long-term partnerships and close relationships with our shareholders. The MoU also symbolises PIS’ readiness to become a leading aggregator of CCS transportation and logistics in the region.”

In addition to supporting Indonesia’s country-wide goals, the collaboration also aligns with Pertamina’s commitment to achieve Net Zero emissions by 2050 through CCS technology and other emission reduction initiatives.

The MoU was signed at Pertamina’s headquarters and attended by the President Director of PT Pertamina, Nicke Widyawati, CEO of PIS, Yoki Firnandi, and Managing Executive Officer of NYK Hironobu Watanabe.

https://www.gasworld.com/story/pertamina-and-nyk-to-form-jv-focused-on-co2-and-lng-transportation/2140796.article/

show less

Nigeria: NNPC Ltd. Plans 3 LNG Stations, 100 CNG Sites Nationwide

The Nigerian National Petroleum Company (NNPC Ltd.), says the drive to bring Compressed Natural Gas (CNG) closer to Nigerians has commenced and is irreversible. Malam…

SHOW MORE

The Nigerian National Petroleum Company (NNPC Ltd.), says the drive to bring Compressed Natural Gas (CNG) closer to Nigerians has commenced and is irreversible.

Malam Mele Kyari, Group Chief Executive Officer, NNPC Ltd, said in addition to the massive deployment of CNG stations nationwide, the company and its partners would also build three Liquefied Natural Gas (LNG) stations in Ajaokuta.

Stunned by thousands of storks flying over the sky in Gia Viễn dike, Ninh Bình – Nếm TV

Kyari said this on Thursday during the simultaneous commissioning of 12 CNG stations in Abuja and Lagos by Mr Ekperikpe Ekpo, Minister of State Petroleum Resources (Gas).

“There is simply no way to turn back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress.

“We will cover the gap in order to ensure that the volatility we see with Premium Motor Spirit (petrol) does not apply to gas,” Kyari said.

He commended President Bola Tinubu for providing the needed support to drive domestic gas utilisation aimed at delivering cleaner and cheaper sources of energy to Nigerians.

In his remarks, the Managing Director, NNPC Retail Limited, Mr Huub Stokman, said the NNPC Retail planned to set up over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites in the next year.

“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria and with continued investments, it will become a significant part of our energy mix,” Stokman added.

Learn more

The Chairman of the NNPC Board of Directors, Chief Pius Akinyelure, said increased CNG adoption would foster economic benefits by reducing fuel costs for consumers and businesses alike.

The NNPC Ltd. has taken the lead in the deployment of Auto-CNG Stations across Nigeria sequel to the removal of fuel subsidy and the declaration of the Presidential Compressed Natural Gas (CNG) initiatives.

 

Already, NNPC Gas Marketing Limited, a subsidiary of NNPC Limited, in partnership with NIPCO Gas Limited has developed an Auto-CNG rollout plan for the construction of 35 CNG stations across the country. (NAN)

https://dailytrust.com/nnpc-ltd-plans-3-lng-stations-100-cng-sites-nationwide/

show less

Germany: Construction starts on Germany’s first land-based LNG terminal

Germany’s first land-based terminal for liquefied gases is set to go into operation in 2027 and will make a significant contribution to the security of supply of affordable energy in Europe. More than 1100 people will be working on the construction site at peak times so that the two largest LNG tanks in Europe – each of which will be ammonia-ready and have a capacity of 240 000 m3 – can be connected to the grid in three years’ time. Around 200 partners and backers attended the kick-off of the future project today at a joint ground-breaking ceremony on the site of the future terminal in Stade.

SHOW MORE

Stefan Weil, the Minister President of Lower Saxony, said: “Following the first floating LNG terminal, Germany’s first land-based LNG terminal is now also being built in Lower Saxony. My sincere thanks go out to all involved. Our federal state is playing a key role in the expansion of infrastructure to import energy. It is also at the centre of the planned Germany-wide hydrogen core network, which will link all the main production sites, storage locations and industrial consumers. In conjunction with the further expansion of wind energy, we are strongly pursuing the goal of a green hydrogen economy and strengthening Lower Saxony’s position as Germany’s energy hub.”

Besides the two German energy suppliers EnBW and SEFE, which have respectively booked annual capacities of 6 billion m3 and 4 billion m3 at the terminal, also the Czech energy company CEZ has secured long-term import rights for 2 billion m3/y. All customers have the option to switch their contracts to hydrogen-based energy sources, such as ammonia, as part of the energy transition in their home countries.

Jozef Síkela, the Czech Minister of Industry and Trade, added: “We are constantly working to ensure the best possible future for our energy industry in the Czech Republic. Capacities for importing LNG from overseas are also an essential part of all this. After securing capacity in the floating LNG terminal in the Netherlands, we also managed last autumn in cooperation with CEZ to secure capacity in the first German land-based terminal, Stade. In three years, it will contribute to covering up to a third of today’s Czech consumption. Thanks to the convenient location, the terminal can also contribute to the reduction of fees for transporting gas to the Czech Republic.”

Jan Themlitz, CEO of the Hanseatic Energy Hub, emphasised: “After six years of planning and permitting, the construction phase now begins. We are proud that Germany’s first land-based terminal is taking shape in Stade – this being not only a major German but also a major European project. Privately initiated and funded we are benefiting from the vast experience of our shareholders. Partners Group is one of the largest private investors in the infrastructure sector. And Enagás, Europe’s leading LNG-terminal operator, will be assuming operational responsibility and is teaming up with Dow, the ideal industrial partner on the site in Stade. As an initiator, the Buss Group has played a key role in driving the project forward and bringing the shareholder-team together.”

Técnicas Reunidas – the global specialist for planning, procurement and construction – and its partners FCC and Enka will be responsible for the construction. To make the central Hanseatic Energy Hub a reality by 2027:

  • Workers will have to drive around 4600 piles into the ground. The foundation is already statically designed to allow a subsequent conversion to ammonia.
  • In addition, for the terminal, more than 60 000 m3 of concrete will be poured, the equivalent of around 20 Olympic swimming pools.
  • Almost 11 000 t of structural steelwork will be erected, weighing 1.5 times as much as the Eiffel Tower.

https://www.lngindustry.com/liquid-natural-gas/01072024/construction-starts-on-germanys-first-land-based-lng-terminal/

show less

US: Environmental impact of liquefied natural gas as U.S. is top supplier

The United States is now the world’s leading exporter of Liquified Natural Gas, or LNG, after the country tripled its output in the past six years, according to the U.S. Energy Information Administration.

SHOW MORE

Environmentalists say this is defeating the Biden administration’s goals of weaning the U.S. off of fossil fuels to avert climate change-driven catastrophes in the future

LNG is natural gas that is supercooled into a liquid so it can be loaded onto tankers and shipped overseas. Natural gas, while considered cleaner than coal, produces both carbon dioxide and methane emissions which are rapidly warming the planet. John Allaire’s Louisiana property is just a mile from a liquefied natural gas export terminal called Calcasieu Pass. Allaire is a former oil industry engineer and is documenting what’s known as “flaring” – when the plant burns off excess gas. He’s not only worried about breathing potentially toxic air but also about America’s natural resources being sent to Europe and Asia. “It makes no sense,” he said. “It’s all about let’s monetize it, you know make as much money as we can.”

He said he would feel differently if it was staying domestic.

The plant near Allaire is owned by Venture Global. It denied CBS News’ request for an interview, but said in a statement that it has made “dramatic progress in minimizing flaring” and that “the world needs more energy, specifically natural gas.”

It is one of eight operating LNG export terminals in the U.S. Seven more are under construction. U.S. capacity has more than tripled since 2018 and is expected to double again by 2030, according to the U.S. Energy Information Administration.

The unprecedented boom worries climate activists who call the new LNG plants “carbon bombs.” 

CBS News spoke with Energy Secretary Jennifer Granhom earlier this year after the White House paused approving any new LNG exports. She said the administration is looking at the impacts on the environment, rising domestic prices for natural gas and America’s energy security.

“Are we gonna continue to just authorize and authorize? Or should we take a beat and say ‘What is all of this doing?” Granhom previously said.

Louisiana Attorney General Liz Murrill is one of 16 state attorneys generals suing the Biden administration over the pause. She thinks President Biden is trying to appeal to climate voters, saying there is no legal basis for the pause. She added she isn’t worried about the potential climate impacts.

“Because that’s not my job. My job is to hold them accountable under the law,” she said.

Allair is also fighting another LNG plant that would be built right next to his property. He said the companies making billions selling gas overseas should think about more than just money.

https://www.msn.com/en-us/money/markets/environmental-impact-of-liquefied-natural-gas-as-u-s-is-top-supplier/ar-BB1pe3dL?item=flightsprg-tipsubsc-v1a?season=2024/

show less

Canada: FortisBC Gets OK to Build LNG Refueling Dock in Vancouver Region

FortisBC Holdings Inc has received approval from the Canadian government for a project to supply liquefied natural gas (LNG) bunkering vessels with refueling services in the Vancouver region.

SHOW MORE

The company said that Tilbury Jetty Limited Partnership’s Tilbury Marine Jetty (TMJ) project will now proceed with securing the necessary remaining approvals and permits and will work towards making a final investment decision.

The TMJ project involves the construction of a jetty, or dock, on the south arm of the Fraser River, FortisBC said in a news release. Strategically located adjacent to its existing Tilbury LNG facility, the jetty will leverage the facility’s production of LNG, which is less carbon-intensive compared to the global average due to its use of hydroelectric power, the company noted.

LNG reduces local air pollutants, which is especially important for ports and populated coastal areas, FortisBC said. With about 3,100 ships calling on the Port of Vancouver each year, switching from conventional marine fuel to LNG marine fuel could remove 90 percent of the particulate matter associated with marine shipping from the local airshed, the company said, citing a third-party study.

FortisBC President and CEO Roger Dall’Antonia said, “We are excited to announce that the Government of Canada has approved the Tilbury Marine Jetty (TMJ) project. This significant milestone allows the project to move forward in its goal of reducing emissions in the marine industry and provide benefits to our local economy, including through our agreement with Musqueam”.

In 2022, FortisBC and Musqueam Indian Band signed an agreement to work together in close collaboration as the Tilbury projects are developed. A shared goal of the agreement is to develop a world-leading LNG facility that provides mutual benefits for Musqueam and the region, according to the release. The TMJ will help create economic and employment opportunities for Delta, neighboring communities and Indigenous communities, the company noted.

FortisBC Holdings Inc. is a subsidiary of Fortis Inc., which describes itself as a leader in the North American regulated electric and gas utility industry. FortisBC Holdings Inc. is also the direct parent company of FortisBC Energy Inc., a regulated utility operating in British Columbia.

Earlier in the week, EverGen Infrastructure Corp. finalized an agreement to supply Canadian renewable natural gas (RNG) to FortisBC Energy Inc. for 20 years. The RNG will come from Fraser Valley Biogas Ltd., which Vancouver, British Columbia-based EverGen acquired in 2021. EverGen completed the expansion of Fraser Valley Biogas last December, raising its RNG nameplate capacity to 160,000 gigajoules annually.

FortisBC will inject the RNG from Fraser Valley Biogas into its natural gas system, EverGen said in a separate statement. FortisBC operates the interconnection facility at the RNG production facility.

https://www.rigzone.com/news/fortisbc_gets_ok_to_build_lng_refueling_dock_in_vancouver_region-05-jul-2024-177322-article/

show less

Global LNG Development

South Korea: Samsung Heavy wins $1 billion order for 4 LNG carriers

Seoul, Jul 1 (IANS): South Korean shipbuilder Samsung Heavy Industries said on Monday it has won a 1.4 trillion-won ($1 billion) order to build four liquefied natural gas (LNG) carriers for a Middle Eastern shipper.

SHOW MORE

The vessels will be delivered to the undisclosed shipping company by August 2028, Samsung Heavy Industries said in a regulatory filing.

So far this year, the shipbuilder has clinched orders worth $4.9 billion to build 22 ships, or 51 percent of its 2024 target of $9.7 billion, reports Yonhap news agency.

The ships include 19 LNG carriers, two very large ammonia carriers and one shuttle tanker.

Samsung Heavy Industries is the shipbuilding arm of South Korea’s top family-controlled conglomerate, Samsung Group, whose marquee unit is Samsung Electronics Co.

https://daijiworld.com/news/newsDisplay?newsID=1203920

show less

China: Vitol secures LNG bunker vessel trio with time charter deal and newbuilding order

Vessels were secured via a seven to ten year time charter agreement with Avenir and an order for two vessels at CIMC Sinopacific Offshore & Engineering shipyard in Nantong, China.

SHOW MORE

Energy trader Vitol on Wednesday (3 July) said it has secured three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

LNG enables shipowners to reduce their environmental footprint at competitive price levels. When combined with bio-LNG blending, it also offers shipowners a long-term solution for compliance with increasingly stringent emission regulations.

The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total. 

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Mr. Pablo Galante Escobar, head of LNG, EMEA gas & power, Vitol, said: “Shipowners worldwide are looking to reduce their emissions. We are delighted to strengthen our offering to them by investing in LNG/bioLNG bunkering, thereby increasing their options.” 

Vitol has traded LNG for 20 years. It is expanding its presence globally and, last year, traded over 17 million tonnes of LNG worldwide. Vitol has been investing in bio-LNG infrastructure through its subsidiary ViGo bioenergy. 

It is also a provider of bunker fuels, through its subsidiary Vitol Bunkers, covering the full spectrum of conventional marine fuels, biofuels, LNG & bio-LNG and also methanol.

https://www.manifoldtimes.com/news/vitol-secures-lng-bunker-vessel-trio-with-time-charter-deal-and-newbuilding-order/

show less

China: China’s largest LNG reserve base completed in east China

The Green Energy Port, China’s largest liquefied natural gas (LNG) reserve base, was completed on Sunday in Yancheng City of east China’s Jiangsu Province.

SHOW MORE

Independently designed and constructed by China, the mega project was constructed by the China National Offshore Oil Corporation (CNOOC). It is crucial to improving energy security in the Yangtze River Delta region in east China so as to support the country’s overall green development, Li Feng, deputy general manager of CNOOC Gas Power, told China Media Group

Boasting six 270,000-cubic-meter LNG storage tanks, and four 220,000-cubic-meter storage tanks, the mega project has a total storage capacity of 2.5 million cubic meters.

It is designed to handle 6 million tonnes of LNG per year, equivalent to 8.5 billion cubic meters of traditional forms of natural gas.

“As a key project in the country’s natural gas production, supply, storage and sales system, the Green Energy Port connects major natural gas transportation networks, including those of natural gas transportation from western to eastern regions and the China-Russia eastern natural gas pipeline,” Li said.

“Meanwhile, it also supplies natural gas through tank trucks to provinces such as Jiangsu, Henan, Anhui and Shandong, maintaining energy security in the Yangtze River Delta region,” Li added.

https://news.cgtn.com/news/2024-07-01/China-s-largest-LNG-reserve-base-completed-in-east-China-1uSm5qurZ8k/p.html

show less

South Korea: ADNOC L&S orders eight LNG carriers from South Korean shipyards

ADNOC Logistics & Services (ADNOC L&S) has awarded construction contracts for at least eight LNG carriers to Samsung Heavy Industries and Hanwha Ocean.

SHOW MORE

The shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC) said that each of Samsung Heavy Industries and Hanwha Ocean were awarded shipbuilding contracts for the construction of four firm vessels with the option for an additional one. The deals are worth $2.5bn in total.

The vessels are expected to be delivered at the beginning of 2028 and will be time chartered to ADNOC subsidiaries for 20 years to support the growing export volumes of natural gas. These vessels will increase the company’s fleet of LNG carriers from 14 to at least 22 vessels.

The LNG carriers will each have a capacity of 174,000 cu m and feature MEGA and XDF2.2 engines as well as a cargo conditioning system designed to reduce LNG cargo evaporation while in transit. Systems will also be in place for direct cargo boil-off of gasses to the engines which will increase fuel efficiency and decrease fuel consumption.

ADNOC L&S already has six 175,000 cu m units under construction at China’s Jiangnan Shipyard due for delivery across 2025 and 2026.

These contracts were awarded following letters of intent awarded to the two companies earlier this year. At the time, the agreement was to build three ships each, valued in total at about $1.5bn with options for four additional newbuilds.

The company added that it has now committed to over 50% of its medium-term strategic investment target one year post its IPO in 2023. Following its strong first quarter of the year, ADNOC L&S has revised its growth guidance upwards and now intends to invest over $5bn in energy-related maritime logistics over the medium term.

https://splash247.com/adnoc-ls-orders-eight-lng-carriers-from-south-korean-shipyards/

show less

Singapore: FueLNG achieves 200th successful STS LNG bunkering operation

FueLNG announced that it has successfully completed its 200th ship-to-ship (STS) liquefied natural gas (LNG) bunkering operation.

As informed, the milestone operation was conducted by FueLNG Venosa, delivering 9,000 cubic metres (cbm) of LNG fuel to CMA CGM Bahia on 29th June at the Raffles Reserve Anchorage in Singapore. This vessel is part of a new generation of six CMA CGM containerships featuring “biomethane and e-methane ready” engines and an enhanced aerodynamic design.

SHOW MORE

Saunak Rai, FueLNG’s General Manager said: “This achievement would not have been possible without the unwavering support of our stakeholders – Seatrium, Shell, our esteemed customer CMA CGM, and the authorities at the Maritime and Port Authority of Singapore (MPA). Their collaboration and commitment have been instrumental in helping us reach this significant milestone.”

 This milestone is a testament to their efficiency, reliability, and commitment to growing the Singapore LNG bunkering market through the decarbonisation of shipping. 

 Hwee Lan Khoo, Chairman of FueLNG and Strategic Account Manager in Shell Marine, said: “Celebrating this bunkering milestone is not just a significant
achievement for FueLNG, but a proud moment for Singapore as it strengthens its position as a key LNG bunkering hub in Asia. We anticipate further growth in this strategic location aligned with the increase in the LNG-fuelled fleet.”

In related news, in May, Eastern Pacific Shipping (EPS) reported the successful accomplishment of its 200th ship-to-ship (STS) LNG bunkering operation for its entire fleet of dual-fuel vessels.

https://safety4sea.com/fuelng-achieves-200th-successful-sts-lng-bunkering-operation/

show less

Kuwait : Kuwait signs $2.9 bn gas facility deal with Korean firms

Kuwait on Wednesday inked a $2.93 billion contract with three South Korean firms for the construction of the largest Liquefied Natural Gas (LNG) import facility in the oil-rich country. The project, to be built at the Al-Zour refinery near the border with Saudi Arabia, was awarded to Hyundai Engineering Co., Hyundai Engineering & Construction Co. and Korea Gas Corporation. CEO of national refiner Kuwait National Petroleum Co. Mohammad al-Mutairi,

SHOW MORE

who signed the contract, said the project is slated to be completed in the first quarter of 2021. OPEC member Kuwait is rich with crude oil but its natural gas production is too small to meet its needs. Every year it imports large LNG quantities to supply power plants, especially during the summer, and for use in the petrochemicals industry. The facility will be part of a huge complex being built in Al-Zour, south of Kuwait City, which will also house a state-of-the-art 615,000 barrel-per-day refinery and a petrochemicals plant. Mutairi said the cost of the complex is expected to reach $30 billion. In October, Kuwait awarded contracts worth $13.2 billion to 10 international firms to build the refinery, which is set to come on stream in late 2019. In 2014, the emirate gave out contracts for a $12 billion project to upgrade two of its three existing refineries. Kuwait sits on 101.5 billion barrels of crude reserves — equivalent to around 7.0 percent of the world’s proven reserves, according to the latest OPEC figures — and pumps around 3.0 million barrels per day.

https://sg.news.yahoo.com/kuwait-signs-2-9-bn-gas-facility-deal-145813676.html

show less

Australia: Baker Hughes secures deal with Woodside to support Australian LNG operations

Energy technology company Baker Hughes has signed a 10-year service frame agreement with Woodside Energy to supply equipment for its liquefied natural gas (LNG) operations in Australia.

SHOW MORE

The signed multi-year service frame agreement will see Baker Hughes provide spare parts and field service resources for onsite turbomachinery equipment maintenance and upgrades, equipment refurbishment, and advanced digital asset performance services.

Tiffany Pitts, Vice-President of Gas Technology Services within Baker Hughes’ Industrial & Energy Technology (IET) business, said the company is proud to support Woodside.

She continued, “The stability of LNG must be met with a commitment to proactively advance safety and efficiency, while investing in asset health management to drive intelligent operations.”

“Given the essential role of LNG in supporting global energy security with affordable and reliable natural gas supplies, we recognise the criticality of providing ongoing innovations and enhancements to LNG technology solutions for Woodside.”

The agreement builds on a partnership between the two businesses that has been active since 1989 and has seen collaboration across several projects.

Most recently, in 2022, the two companies signed a Memorandum of Understanding (MoU) to collaborate on possible decarbonising solutions with Baker Hughes’ portfolio of carbon management and climate technology solutions. Focused on LNG, in December 2021, Baker Hughes was awarded a contract by Bechtel to provide its turbine and compressor technology for Woodside’s Pluto Train 2 LNG train project in Australia.

https://www.gasworld.com/story/baker-hughes-secures-deal-with-woodside-to-support-australian-lng-operations/2140793.article/

show less

UK: Marathon Oil signs five-year LNG sales deal with Glencore

Marathon Oil (NYSE:MRO) said Monday it agreed to sell a portion of the liquid natural gas it produces from its Alba Field in Equatorial Guinea to Glencore’s U.K. subsidiary in a five-year deal; financial terms were not disclosed.

SHOW MORE

Marathon Oil (MRO) said the agreement, which takes effect January 1, will have a pricing structure linked to the benchmark Dutch TTF index, providing significant incremental exposure to the European LNG market

“At recent forward curve pricing, we expect to realize an approximate year-on-year EBITDA increase of over $300M next year across our [Equatorial Guinea] integrated gas business, reflecting our differentiated and increasing exposure to the global LNG market, [which] positions us strongly for the next phase of opportunities to advance the [Equatorial Gas] Gas Mega Hub,” Marathon Oil (MRO) Chairman, President and CEO Lee Tillman said.

Marathon (MRO) has a 64% working interest in the Alba field.

https://www.msn.com/en-us/money/markets/marathon-oil-signs-five-year-lng-sales-deal-with-glencore/ar-AA1ijAfw?apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&batchservertelemetry=1&noservertelemetry=1

show less

Argentina: Golar seals 20-year deal to deploy FLNG in Argentina

Floating LNG player Golar LNG has entered into definitive agreements with Argentina’s Pan American Energy for a 20-year deployment of Golar’s FLNG Hilli in Argentina.

SHOW MORE

According to a statement by Golar, fhe FLNG project will monetize Argentine gas, tapping into the vast resources from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest shale gas resources.

Golar expects the project to start LNG exports within 2027, establishing Argentina as an LNG exporter.

The company said this strategic venture is built on a “robust commercial foundation”, featuring a gas sales agreement from PAE for the supply of gas, and an FLNG charter agreement with Golar which includes a base tariff and commodity exposure to LNG sales prices.

The project aims to utilize Golar’s FLNG Hilli, with a nameplate capacity of 2.45 million tons per annum (mtpa), providing an equivalent net tariff of $2.6/mmBtu (based on 90 percent capacity utilization) with an additional commodity-linked pricing element, the company said.

Golar has flexibility to consider a swap alternative for another suitable Golar FLNG unit, it said.

As part of the agreements, Golar will hold a 10 percent stake in Southern Energy, a dedicated joint venture with PAE, responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina.

“This initiative is envisaged to be the first phase of a potential multi-vessel project and it is anticipated that other large natural gas producers in Argentina will join,” Golar said.

Argentina’s state-owned oil and gas company YPF and Malaysia’s Petronas are also planning to install floating LNG units as part of their Argentina LNG export project.

Golar said the agreements with PAE remain subject to sign-off of customary conditions.

PAE’s website shows that its shareholders are BC Energy Investments (50 percent) and BP (50 percent). CNOOC and Bridas each own a 50 percent stake in BC Energy Investments.

Hilli and MKII 3.5 mtpa FLNG

In May, the LNG firm led by Tor Olav Trøim said it was working to sign definitive agreements for an up to 20-year FLNG deployment, but Golar did not reveal the location or the name of the client.

The company’s CEO Karl Staubo said during the first quarter earnings call that the development could include more than one FLNG over time.

Staubo said that Golar was working with the client whether Hilli or the MKII 3.5 mtpa FLNG should be the first one.

Golar said its focus is on redeployment of its FLNG Hilli following the end of the FLNG’s current charter in July 2026, and thereafter ordering and securing commercial terms for a contemplated MKII FLNG.

Last year, FLNG Hilli, located offshore Cameroon’s Kribi, offloaded its 100th cargo of liquefied natural gas since it started operations in 2018.

Hilli produced 1.46 million tonnes in 2023.

Golar said in the first quarter presentation that the FLNG has offloaded 112 cargoes up to date and produced more than 7 million tonnes of LNG.

As per the MKII 3.5 mtpa FLNG project, Golar exercised its option last year to acquire the 148,000-cbm Moss-type carrier, Fuji LNG, which it aims to convert to a floating LNG producer.

Golar said in the results report the MKII FLNG project development continues, with previously ordered long lead items now 58 percent complete.

The company took delivery of Fuji LNG on March 4, 2024.

According to Golar, Fuji LNG will trade on a multi-month charter ahead of its expected transfer to a yard for FLNG conversion.

Nigerian project and Gimi

Besides this project, state-run Nigerian National Petroleum Corp and Golar plan to take a final investment decision on a floating LNG project offshore Nigeria’s Niger Delta by the end of this year.

NNPC recently said it has executed a project development agreement (PDA) with Golar for the deployment of an FLNG offshore the Niger Delta.

The Nigerian company said the PDA also outlines the monetization plan that will utilize about 400-500mmscf/d and produce LNG, LPG, and condensate.

Golar’s converted floating LNG producer, Gimi, should also start operations later this year at the site of BP’s Greater Tortue Ahmeyim project offshore Mauritania and Senegal.

BP announced the arrival of the unit at the GTA hub in February.

Golar said in the quarterly report that the FLNG is “ready to commence operations”, while the project’s FPSO has also arrived at the project site.

“Hookup and commissioning of the FPSO are on the critical path to first gas and are expected to complete in the third quarter of 2024,” Golar said.

Commissioning of FLNG Gimi can start thereafter. Golar expects FLNG Gimi’s commissioning period to take about six months, concluding with the commercial operations date (COD).

https://lngprime.com/americas/golar-seals-20-year-deal-to-deploy-flng-in-argentina/116490/

show less

GO TOP

LNG as a Marine Fuel/Shipping

CMA CGM takes delivery of 13K TEU LNG dual-fuel CMA CGM Belem

French shipping major CMA CGM has taken delivery of new 13,000 TEU liquefied natural gas (LNG) dual-fuel containership CMA CGM Belem. As informed, the takeover ceremony for the new vessel took place on June 28, 2024, at Hudong-Zhonghua Shipyard.

SHOW MORE

The ship is the fifth out of six new 13,000 TEU dual-fuel boxships Hudong-Zhonghua is building for the French shipping giant.

CMA CGM Belem is 336 meters long, 51 meters wide, and 26.8 meters deep, with a designed service speed of 21 knots and a maximum cargo capacity of 13,200 TEUs.

The ship comes equipped with an LNG dual-fuel power system and has a 14,000 cbm Mark III LNG cargo containment system.

Furthermore, the unit features the CMD-WinGD9X9DF-2.0 main engine, which was developed by China Shipbuilding Industry Corporation.

A next-generation intelligent control by exhaust recycling (iCER) system installed onboard the vessel is expected to reduce greenhouse gas (GHG) emissions by 28% and methane slip by 50%, according to the Chinese shipbuilder.

Additionally, the containership comes with a huge wind deflector at the bow, which could save 2% to 4% of fuel consumption during actual operation.

Furthermore, an energy-saving deflector is installed at the stern, which can improve the propeller propulsion efficiency, reduce energy consumption by about 1.5%, and reduce carbon dioxide gas emissions.

To remind, CMA CGM welcomed the fourth ship CMA CGM Sao Paulo in May this year.

CMA CGM Paraty was handed over in April this year, while CMA CGM Bahia joined the shipowner’s fleet last December.

https://www.offshore-energy.biz/cma-cgm-takes-delivery-of-13k-teu-lng-dual-fuel-cma-cgm-belem/

show less

Norway: UECC and Titan partner on bio-LNG bunkering operations

Norwegian roll-on/roll-off shipping line United European Car Carriers (UECC) and Dutch supplier of fuels Titan Clean Fuels (Titan) have decided to collaborate on a series of major liquefied biomethane (LBM) bunkering operations in the Port of Zeebrugge.

SHOW MORE

As informed, Titan plans to bunker ISCC-EU certified mass-balanced LBM, also known as bio-LNG, to all of UECC’s liquefied natural gas (LNG) dual fuel car carriers this month.

These pure car and truck carriers (PCTCs) will use 100% LBM as part of UECC’s ‘Green Gas Month’, an initiative that supports its wider ‘Sail for Change’ sustainability program.

Three of the ships also feature battery hybrid technology to further enhance their environmental performance.
 
Due to the biomethane waste feedstock, the greenhouse gas (GHG) emissions reduction potential from this clean fuel use is significant, according to UECC.

In ‘Green Gas Month’, the company calculates that well-to-wake emissions reductions will exceed 8,000 metric tons of CO2 emissions.
 
The GHG emissions reductions generated from these LBM bunkering operations will be available to UECC customers through a CO2 registry that was opened in January 2024.

This registry allows UECC to transfer the environmental benefits of clean fuel use to charterers in a transparent, traceable and independently verified manner across its entire supply chain, the company emphasized.

“Through the use of biomethane, ‘Green Gas Month’, and ‘Sail for Change’ more broadly, we are providing our customers with a great springboard to further their own decarbonisation strategies. With progressive automakers focusing on cleaner cars, we expect them to want to reduce their scope three emissions and ship those cars sustainably – which is what we can deliver in collaboration with Titan right now,” Daniel Gent, Energy & Sustainability Manager at UECC, commented.

“Tightening environmental regulations and emissions levies like the EU Emissions Trading System are also increasingly boosting the commercial rationale for using clean shipping services. The use of LBM as a marine fuel reduces UECC’s, and our customer’s exposure to the costs of emitting within the EU ETS, which will continue to ramp up quickly over the coming years.”

“We are pleased to be working with UECC on these major LBM bunkerings and hope these are the first of many more clean fuel operations with them. The mass balanced LBM via Fluxys’ LNG Terminal in Zeebrugge is a practical, realistic and cost-competitive way to use clean marine fuels today. And the UECC team has valued the flexibility that our fleet of strategically located LNG bunker vessels can offer,” Flip Dankelman, Trader at Titan, added.

Unlike other fuel pathways, LBM is frequently being introduced at scale today. Depending on the feedstock, LBM can achieve net-zero GHG emissions or even net-negative if the avoided emissions of waste are taken into account.

The next phase is the introduction of e-methane produced using renewable electricity and electrolysis. All of these molecules can be blended at any ratio and used in existing LNG infrastructure without adaptation.

“This clean fuel supply agreement and milestone on the LNG pathway is timely as activation of the European Union’s FuelEU Maritime regulation is imminent. The regulation, which will especially incentivise the use of renewable fuels of non-biological origin such as e-methane, will come into force on January 1st, 2025. It will be applicable to vessels over 5000 GT, 100% of emissions will be considered within the EU and 50% of them if one port in the voyage is outside the EU,” UECC concluded.

Recently, UECC revealed it is on track to exceed its goal of a 45% emissions reduction by 2030 after more than doubling biofuel usage across its fleet last year.

UECC boosted the use of ISCC-certified sustainable biofuel B100 on both owned and time-chartered ships to 14,000 metric tons last year, up from 6500 metric tons in 2022. The company achieved a total tank-to-wake emissions reduction of over 60,000 tons across its 14-vessel fleet in 2023, of which it is estimated that increased biofuel use accounted for 40,000 tons, with the remainder coming from LNG.

This was a near-250% increase on the emissions cut of 24,200 tons achieved in 2022.

https://www.offshore-energy.biz/uecc-and-titan-partner-on-bio-lng-bunkering-operations/

show less

Spain: Second LNG-powered fast ferry joins Balearia’s fleet

Spanish shipping firm Balearia has taken delivery of its second LNG dual-fuel fast ferry, Margarita Salas, from compatriot shipbuilder Armon Gijon. Balearia announced this in a statement on Friday saying that the LNG-powered ferry will start operating in Spain’s Balearic Islands next week.

SHOW MORE

The vessel will connect Mallorca, Menorca, and Barcelona throughout the year.

Balearia ordered the new LNG-powered fast ferry at Armon Gijon in October 2022.

This order followed the delivery of its 123 meters long sister vessel, Eleanor Roosevelt, in April 2021.

While the dimensions of the two ships are the same, the new vessel’s four Wartsila dual-fuel engines of 9,600kW each have ten percent greater power and increased efficiency.

Armon Gijon launched the 123 meters long Margarita Salas in December last year and the vessel completed its first sea trials in early June.

According to the statement, Margarita Salas is the 1000th vessel Armon Gijon built up to date.

Balearia has invested 126 million euros ($136.4 million) in the construction of the LNG-powered ferry.

The vessel has two LNG tanks, which provide a range of about 400 miles on gas, and a total range of 1,000 miles, Balearia said.

It also has a second passenger deck and a capacity to transport 1,200 passengers and 450 vehicles.

Balaria now owns 11 LNG-powered ferries, including converted vessels.

In December 2023, the firm purchased the LNG dual-fuel ferry, Rusadir.

https://lngprime.com/lng-as-fuel/second-lng-powered-fast-ferry-joins-balearias-fleet/116455/

show less

US: Seaspan launches third LNG bunkering vessel

Seaspan Energy launched the third of its three 7600m3 LNG bunkering vessels, the Seaspan Baker, named after Mount Baker, also known as Koma Kulshan, in Washington State.

SHOW MORE

This series of vessels is named after iconic West Coast mountains and the first two vessels, the Seaspan Garibaldi (Nch’ḵay̓) and the Seaspan Lions (Ch’ich’iyúy Elxwíkn), will be delivered later this year, while Seaspan Baker will arrive in 2025.

The Seaspan Baker is currently targeted to service the Long Beach container ship market and will join the Seaspan Lions in providing Liquified Natural Gas (LNG) fueling services for vessels on the West Coast of North America. While the Seaspan Garibaldi is set to deliver low-carbon solutions to the global market and will be based in the Panama region.

This series of vessels are each 112.8 meters in length, 18.6 meters in width, 5 meters in draft, with a design speed of 13 knots. The LNG bunkering vessels are being built by CIMC Sinopacific Offshore & Engineering (CIMC SOE), one of the most experienced small-scale gas carrier shipyards in the world, having delivered more than 30 LNG gas carriers.

According to the company, for the design of the LNG Bunker Vessels, Seaspan worked closely with the Canadian-based team at VARD Marine Inc. to incorporate emerging technologies resulting in a decrease in emissions and underwater noise. The design is focused on safe, efficient, and economical refueling of multiple ship types with an ability to transfer to and from a wide range of terminals. The design will allow the vessel to engage in ship-to-ship LNG transfer along with coastal and short-sea shipping cargo operations.

To remind, in May 2023, CIMC SOE entered into an agreement with Seaspan to build two LNG bunkering vessels of 7,600 cubic meters each, with an option for a third vessel.

https://safety4sea.com/seaspan-launches-the-third-lng-bunkering-vessel/

show less

Nigeria: Meet Julius Rone, the gas kingpin pioneering Nigeria’s first floating LNG

Julius Rone stands at the forefront of Nigeria’s energy sector as the CEO of UTM Offshore, a company spearheading the development of the country’s inaugural floating liquefied natural gas (LNG) facility.

SHOW MORE

BusinessDay’s findings showed UTM Offshore’s FLNG project will unlock a new era of LNG industry growth in Nigeria and across the region as energy demand continues to increase.

This ambitious project marks a significant milestone in Nigeria’s quest to enhance energy infrastructure and solidify its position as a key player in the global LNG market.

Profile of Rone

Rone is a seasoned administrator and industrialist with vast experience spanning over a decade in both the public and private sectors of the Nigerian economy, as a major player in the oil and gas space.

He worked as a protocol assistant at the Oil Mineral Producing Areas Development Commission (OMPADEC) from 1995 to 2000, and from 2000 to 2008, he worked with the Niger Delta Development Commission (NDDC) as the protocol assistant to the Chairman.

Since 2008, he has been the group managing director of the UTM Group of Companies. Rone came on board as Charge De’ Affairs of the UTM Group of companies, viz., UTM Offshore Limited, UTM FLNG Limited, and UTM Energy Limited.

Also, he worked with UTM Dredging Limited, UTM Engineering and Construction Limited, UTM Properties Limited, UTM Logistics and Marine Services Limited, MWS Allied Services Limited, Water Petroleum Limited, SBM Limited, UTM Ghana Limited, and UTM-CTK Ghana Limited.

In 1986, Rone received his first school leaving certificate from Mowoe Primary School, Warri, Delta State. He then proceeded to Uwangue College, Warri, Delta State, where he obtained his senior school leaving certificate in 1992.

He is an alumnus of Obafemi Awolowo University, Ile-Ife, and the University of Calabar, where he attained his advanced diploma and postgraduate diploma in business administration, respectively.

Rone holds membership portfolios in the Institute of Directors (IoD), American Society of Administrative Professionals (ASAP), American Management Association (AMA), International Association of Administrative Professionals (IAAP), USA, and Association of Associate Executives (AAE), among others.

The business mogul was born on June 25, 1968, into the family of Chief S. S. Rone, the Obazuaye of Warri Kingdom, in Delta State, Nigeria.

UTM Offshore

State-owned oil company Nigerian National Petroleum (NNPC) entered into an agreement with UTM Offshore to purchase a 20 percent equity stake in the project in July 2023.

In December 2023, UTM Offshore, the Delta State Government, and NNPCL signed a shareholder agreement to jointly develop the project.

The project will be owned by UTM FLNG (72 percent), a special-purpose vehicle formed for the development of the project by UTM Offshore, NNPC (20 percent), and Delta State Government (8 percent).

The project is expected to produce 1.5 million metric tonnes per year of liquified natural gas (LNG) for export markets, 300,000 metric tonnes of LPG a year for domestic consumption, and some quantities of condensate.

Location details

The UTM FLNG facility is being developed at the Yoho field at a water depth of 64 m.

The Yoho field is situated within oil mining lease (OML) 104, approximately 60 km from shore. It is owned by ExxonMobil (40 percent, operator) and NNPC (60 percent) and commenced production in 2003.

The project will have access to 2.2 trillion cubic feet of proven gas reserves from OML 104 for 20 years.

UTM FLNG development details

UTM Offshore obtained the licence to establish the FLNG project from the Department of Petroleum Resources in February 2021. The project is planned to be developed in two phases.

The FLNG facility will include a turret and mooring system, gas pretreatment modules, LNG production modules, an accommodation facility, self-contained power generation, and utilities, as well as provision for LNG storage and offloading.

The LPG produced from the FLNG will be supplied to the domestic market, and the LNG produced will be offloaded into LNG carriers for further transportation.

Vitol Gas, an energy and commodities company, is a potential LNG buyer for the project.

Financing

UTM Offshore entered into a memorandum of understanding with African Export-Import Bank (Afreximbank), a pan-African multilateral financial institution, to serve as the lead financier of the project in December 2021.

Subsequently, Afreximbank raised $2bn for the first phase of development, with a commitment of $3bn for phase two.

Contractors involved

JGC Holdings, an engineering design, procurement, and construction company, along with Technip Energies, an energy technology company, and Kellogg Brown and Root (KBR), a technology company, were contracted to provide the front-end engineering and design (FEED) services for the project in November 2022.

JGC will oversee the topside LNG production facility design, while Technip Energies will be responsible for the hull and the mooring system design.

JGC was previously contracted to perform the pre-FEED design for the FLNG facility in May 2021. KBR served as the owner’s engineer and conducted a due diligence review of the pre-FEED design. Yahaska Energy, a consulting company, provided overall project development management services.

Richflood International was chosen to perform an environmental and social impact assessment for the project in July 2022.

Templars, a law company, acted as a project counsellor in securing the licence for the development of the project.

Project benefits

The UTM FLNG project is in line with the Nigerian government’s vision of promoting the utilisation of domestic gas resources. The country has more than 200 trillion cubic feet of proven gas reserves.

The FLNG will supply 25 percent of Nigeria’s domestic LPG demand. It will provide LPG at lower costs and increase access to the fuel, thereby providing clean cooking solutions in the country.

The project is expected to generate 3,000 direct and 4,000 indirect employment opportunities in Nigeria.

https://businessday.ng/energy/article/meet-julius-rone-the-gas-kingpin-pioneering-nigerias-first-floating-lng-2/

show less

 

 

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

Life cycle analysis reveals mixed CO₂ benefits from green hydrogen

Green hydrogen often, but certainly not always, leads to CO2 gains. This claim is based on research published in Nature Energy by Kiane de Kleijne from Radboud University and Eindhoven University of Technology.

SHOW MORE

“If you calculate the entire life cycle of green hydrogen production and transport, CO2 gains may be disappointing. However, if green hydrogen is produced from very clean electricity and locally, it can really help reduce emissions It is thought that green hydrogen can make a major contribution to reducing greenhouse gas emissions. Dutch companies are currently investing in developing green hydrogen in countries where green power, needed to produce green hydrogen, can be easily generated, such as Namibia and Brazil.

The EU is also aiming to produce 10 million metric tons of green hydrogen and importing another 10 million metric tons by 2030. “Green hydrogen has great potential as a technology due to its versatility and many applications. But unfortunately, I still foresee some bumps in the road,” says environmental scientist De Kleijne.

Entire life cycle

For over a thousand planned green hydrogen projects, De Kleijne calculated the greenhouse gas emissions associated with producing green hydrogen, including the production of, for example, solar panels, wind turbines and batteries to provide power, and the transport by pipeline or ship.

“Green hydrogen is produced by splitting water into oxygen and hydrogen in an electrolyzer using green electricity. You can then use that hydrogen as a raw material or fuel. Hydrogen made from natural gas is already widely used as a raw material, for example, in the chemical industry to produce methanol and ammonia for fertilizer.”

The advantage of green hydrogen is that when splitting water, besides hydrogen, only oxygen is released and no CO2. “However, that does require large amounts of green power,” says the researcher.

“You can only reduce emissions if you use green energy, such as wind or solar power. But even then, the emissions from manufacturing wind turbines and solar panels alone add up considerably. If you look at the entire life cycle in this way, green hydrogen often, but certainly not always, leads to CO2 gains. CO2 gains are usually higher when using wind power rather than solar power

“This will improve further in the future as more renewable energy will be used to manufacture the wind turbines, solar panels and steel for the electrolyzer, for example.”

Hydrogen transport

Hydrogen production results in the lowest emissions in places where there is a lot of sun or wind, like Brazil or Africa. The downside is that this hydrogen must then be transported to Europe. That is technologically challenging and can create a lot of extra emissions.

“Transporting green hydrogen over long distances contributes so much to the total emissions that much of the CO2 gains from production in distant, favorable locations is negated,” says De Kleijne. For short distances, transport emissions appear to be lowest for pipelines, while shipping liquid hydrogen is best for long distances.

Zero emissions

The key message, according to the scientist, is that we should not claim that technologies such as green hydrogen are completely emission-free. Current calculation methods that form the basis for regulations do not usually consider emissions from what needs to be manufactured to produce hydrogen, such as solar panels and electrolyzers, or hydrogen leakage during transportation

In those cases, it might seem that green hydrogen does not produce many emissions, but that is far from the case.

“By looking at emissions over the entire life cycle, we can make a better trade-off between technologies, and identify where improvements can be made in the chain. Furthermore, we can ask ourselves: what is important to produce in the Netherlands and Europe? And when might it be better to move an industry to somewhere else in the world?”

https://www.msn.com/en-us/money/other/life-cycle-analysis-reveals-mixed-co-benefits-from-green-hydrogen/ar-BB1oEjhW?item=flightsprg-tipsubsc-v1a?season/

show less

Höegh LNG and Deutsche ReGas join forces for world’s first floating hydrogen import terminal

Germany’s Deutsche ReGas and Norway’s Höegh LNG have entered into an agreement to develop what is said to be the world’s first floating import terminal for the industrial-scale conversion of green ammonia to green hydrogen.

SHOW MORE

The H2-Import-Terminal Lubmin is planned to become operational from early 2026. It is designed to be the world’s first floating green ammonia cracker, producing around 30,000 tons of hydrogen per year.

The hydrogen will be fed into the hydrogen core network via the existing feed-in-point at the Deutsche ReGas Terminal in the port of Lubmin.

Höegh LNG developed the green ammonia cracker technology embedded into the barge solution that will serve as an industrial pilot for the conversion and decarbonization of floating storage and regasification units (FSRUs) in Germany.

For this project, Deutsche ReGas will provide the on-shore terminal infrastructure, the overall coordination, including permitting, and the marketing of the import capacities at the terminal.

Ingo Wagner, Managing Director of Deutsche ReGas, said: “Our agreement with Höegh LNG initiates a significant new chapter in both Germany’s energy transition strategy and our company’s development. Thus, our H2-Import-Terminal Lubmin is a key building block for decarbonization of the industrial regions of eastern and southern Germany. The H2-Import-Terminal Lubmin strengthens Mecklenburg-Western Pomerania’s position as a green energy powerhouse. We are excited about this next step in our cooperation with Höegh LNG”.

Deutsche ReGas is the operator of the only privately financed LNG terminals in Germany in Mukran and prior to that in Lubmin.

Erik Nyheim, CEO of Höegh LNG, commented: “Importing hydrogen from global producers overseas is key to achieving industrial decarbonization. By adapting existing marine infrastructure elements with our innovative cracking solution, we can provide access to cost-competitive hydrogen within the next few years. The expertise, technology and infrastructure elements are already existing, and we are excited to partner with Deutsche ReGas to realize this project and accelerate the energy transition in Germany.”

https://www.offshore-energy.biz/hoegh-lng-and-deutsche-regas-join-forces-for-worlds-first-floating-hydrogen-import-terminal/

show less

US: World’s first hydrogen-powered commuter ferry to begin plying soon

This innovative catamaran, named MV Sea Change, can accommodate up to 75 passengers and promises to significantly reduce carbon emissions and dependence on diesel-powered vessels.

SHOW MORE

The world’s first hydrogen-powered commercial passenger ferry will run on San Francisco Bay.

It will run as a part of a sustainability initiative, thereby reducing dependence on diesel-powered vessels and carbon emissions, as per California officials.

Investment firm SWITCH Maritime financed and managed the project. It was constructed at Bay Ship and Yacht in Alameda, California, and All-American Marine in Bellingham, Washington.

Free rides on the MV Sea Change hydrogen-powered ferry

Called MV Sea Change – the catamaran is 70-feet long and will carry up to 75 passengers along the waterfront between Pier 41 and the downtown San Francisco ferry terminal.

The services are likely to commence on July 19 and will be free of cost for the first six months as it’s a part of the pilot program.

Jim Wunderman, chair of the San Francisco Bay Area Water Emergency Transportation Authority, revealed that it has huge implications since it probably wouldn’t be the last such project.

“If we can operate this successfully, there are going to be more of these vessels in our fleet and in other folks’ fleets in the United States and we think in the world,” he added.

The vessel is capable of traveling about 300 nautical miles, operating for around 16 hours post which it needs refueling.

The technology that works behind this vessel is pretty interesting. The fuel cells combine hydrogen and oxygen in an electrochemical reaction, emitting water as a by-product.

One of the major benefits of hydrogen-powered commercial ferries is that they massively help in reducing greenhouse gas emissions and air pollutants when compared to their diesel-powered counterparts.

Apart from this, hydrogen-powered vehicles are cheap, providing green energy and leading to more job creation in the space.

Advancing hydrogen-powered ferries: Potential benefits and environmental challenges

Using this technology there can be a significant reduction of greenhouse gas emissions. The shipping industry generates nearly 3% of the world’s total greenhouse gas emissions, believe the officials.

Frank Wolak, president and CEO of the Fuel Cell & Hydrogen Energy Association, stressed the importance of the ferry and said that it’s pretty hard to reduce greenhouse gas emissions from vessels.

According to him, “The real value of this is when you multiply out by the number of ferries operating around the world. There’s great potential here. This is how you can start chipping away at the carbon intensity of your ports.”

Even though all these initiatives seem lucrative, are there any pollution and climate-related risks associated with hydrogen-based vessels? Environmental activists say yes.

To begin with, the production method of hydrogen is pretty hazardous since it contains methane which involves natural gas, releasing carbon dioxide in the air.

Apart from this, the production and transportation of hydrogen could be really energy-intensive, thus negating all the climate benefits. Lastly, handling hydrogen requires proper expertise. Any kind of leak during production, storage and transport could affect the climate in a derogatory manner.

Additionally, the flammability and low energy density in hydrogen can be challenging both to humans and the environment.

Equipped with advanced technology and capable expertise, the Sea Change project is likely to overlook existing challenges and promote sustainability in a better way. The future will say whether or not it can do that efficiently.

https://interestingengineering.com/transportation/us-worlds-first-hydrogen-ferry-sail-san-francisco-bay

show less

 

Share Button