NGS’ NG/LNG SNAPSHOT – February 2021, VOLUME 1

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City Gas Distribution & Auto LPG

Essar Oil despatches first ever C-CBM for city gas distribution

Essar Oil and Gas Exploration and Production (EOGEPL) has dispatched the first ever Compressed Coal Bed Methane (C-CBM) natural gas cascade truck to Bengal Gas Company’s first CNG station to provide green fuel to Kolkata. EOGEPL,

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an investee company of Essar Capital and India’s largest operator of unconventional hydrocarbon acreages, runs the Raniganj East CBM block in West Bengal with 348 wells. The company’s flagship project associated with gas gathering and compressor facilities, has about 300 km of infield and customer pipelines. EOGEPL, having a CBM and shale gas resource base of 15 TCF (Trillion Cubic Feet), has so far invested in excess of Rs 4,000 crore in exploration for commercial development of the Raniganj CBM Block. The company’s Raniganj CBM block is India’s first CBM project to cross the threshold of 1.0 MMSCMD of gas production. The GAIL Urja Ganga gas pipeline, when commissioned next month, will eventually become the energy lifeline of homes and industries in West Bengal. The 2,540-km-long pipeline from Uttar Pradesh to Odisha has already reached the adjacent disricts of Kolkata. Bengal Gas Company, a JV of GAIL and Greater Calcutta Gas Supply Corporation, is spearheading the city gas dustribution network. GAIL’s Urja Ganga pipeline project includes supply of CNG and piped natural gas to domestic and industrial consumers across Kolkata and parts of the districts of North 24 Paraganas, South 24 Paraganas, Howrah, Hooghly and Nadia.

https://www.financialexpress.com/industry/essar-oil-despatches-first-ever-c-cbm-for-city-gas-distribution/2182306/

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Soaring fuel prices to lend wheels to CNG adoption in India: CRISIL

Mumbai: The soaring prices of petrol will lead to an increase in adoption of compressed natural gas (CNG) driven vehicles in India as the price differential between the cost of running a petrol-driven car versus CNG has widened to 44%, according to a research report.

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The price of petrol has breached Rs 85 a liter in New Delhi as excise duty rose by Rs 13 to Rs 32.98 per litre in 2020. In calendar 2021, CRISIL NSE 0.93 % Research expects Brent crude to rise by about 23% year-on-year to an average $50-55 per barrel from $42.3 per barrel in 2020, as economic activity recovers globally. “Tax now accounts for over 60% of the retail selling price of petrol, compared with 47% in 2019. Given that the government has to find the money to ramp up public spending – and is also promoting usage of cleaner fuels – it is unlikely that the tax on petrol will come down to previous levels anytime soon,” said Hetal Gandhi, Director, CRISIL Research. Domestic gas prices are expected to rise similarly by over 20% to $2.5-3.5 per MMBtu in 2021 from $2.45 in 2020. However, the absolute price differential between petrol and CNG retail prices will remain wide because of higher taxes on the former. CNG was always cheaper than petrol, but the price differential between the two has widened rapidly in the past two years. Today, the cost of running a CNG car is (about) 44% less than a petrol variant, if you consider the CNG price of (approximately) Rs 42.7 per kilogram in New Delhi,” said Mayur Patil, Associate Director, CRISIL Research. The consumption of CNG in India has grown at a compounded annual rate of about 11% over the past three years and is expected to grow at a compounded annual rate of 25% between 2021 and 2923, according to the research agency. The sharp spike in the prices vehicles, especially diesel cars, in 2020 due to upgrade to BS-VI emission norms also pushed commercial car fleet operators towards CNG from diesel. The government is also ramping up city gas distribution (CGD) networks, which would further help increase CNG consumption.

https://economictimes.indiatimes.com/industry/auto/auto-news/soaring-fuel-prices-to-lend-wheels-to-cng-adoption-in-india-crisil/printarticle/80555194.cms

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GAIL sanctions Rs 21cr for replacing motorboat engines

GAIL has paved the way for the conversion of all diesel engine-operated boats in Ganga into CNG fueled ones by clearing the hurdle of funding and sanctioned Rs 21 crore for the project Divisional commissioner Deepak Agrawal told TOI on Thursday, “

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GAIL has sanctioned Rs 21 crore from its corporate social responsibility (CSR) fund for this project, which will help in replacement of all diesel engines installed in boats with CNG fueled engines. We received the letter from GAIL in this regard two days ago.” “We have roped in Metallurgical & Engineering Consultants (MECON) Limited, a public sector undertaking under the ministry of steel of the Government of India, to execute this project. It will soon start the process of floating tenders and other formalities. The deadline for this project is year-end, but we will try to ensure conversion of all boat engines before the festival of Dev Deepawali in November,” said Agrawal. The idea of replacing all diesel engines by CNG-fueled ones had been floated in 2020 as they produce a lot of noise and smoke, causing pollution and discomfort to tourists. There are around 1,500 such boats in Varanasi. A proposal of Rs 37 crore had been submitted to GAIL for the replacement of existing diesel engines of motorized boats operating in Ganga and many other components seeking allocation from its CSR funds. GAIL gave consent for providing Rs 21 crore, Agrawal said. The boatmen are being made stakeholders under this project and a token amount would be charged from them, he added. The commissioner said CNG engines will be installed in the boats and their old diesel engines would be disposed of to ensure they are not misused. GAIL is setting up a CNG station near Khidkiya Ghat for refilling of the new boats through dispensers placed on a jetty.

https://timesofindia.indiatimes.com/city/varanasi/gail-sanctions-rs-21cr-for-replacing-motorboat-engines/articleshow/80516057.cms

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GAIL Gas wins award “City Gas Distribution- Established Company of the Year”

GAIL Gas, subsidiary of GAIL (India), has been awarded the ‘City Gas Distribution – Established Company of the Year’ by Federation of Indian Petroleum Industry (FIPI). The award recognises leadership in performance by operating City Gas Distribution (CGD) 

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network for distribution of Natural Gas to consumers in the domestic, industrial, transport and commercial sectors in a Geographical Area (GA) in India during the year of award.
Source: Indian Oil & Gas

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Arun Kumar Singh takes over as Chairman of Indraprastha Gas Ltd

Arun Kumar Singh, Director (Marketing), Bharat Petroleum Corporation Ltd. (BPCL), has taken over the additional responsibility as Chairman of Indraprastha Gas Limited (IGL). He replaces P.K. Gupta, Director (Human Resources),

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GAIL (India) Ltd., who has relinquished the charge upon completion of the two-year Chairmanship tenure of IGL by GAIL (India) Ltd. Arun Kumar Singh, a Mechanical Engineer from NIT Patna (formerly BCE, Patna), is Director (Marketing), BPCL apart from holding additional charge of Director (Refineries) in the company. He is also a Director on the Board of Bharat Gas Resources Ltd, a wholly owned Subsidiary of BPCL engaged in Natural Gas business. Additionally, he is on the Board of Bharat Oman Refineries Limited, a Subsidiary of BPCL engaged in Refining business. He is also serving on the Board of Petronet LNG Ltd, a listed company on Indian bourses. He had earlier held the position of Chairman, IGL from October 2018 to January 2019. Singh has headed various Business Units and Entities in BPCL viz. Retail, LPG, Pipelines, Supply Chain Optimization, etc. and has experience of over 35 years. He has also held the position of President (Africa & Australasia) in Bharat PetroResources Ltd., a wholly owned Subsidiary of BPCL engaged in exploration of Oil & Gas, largely overseas. IGL, a joint venture of GAIL (India) Ltd. and BPCL along with the Govt. of NCT of Delhi is the largest Compressed Natural Gas (CNG) distribution company of the country, supplying CNG and Piped Natural Gas (PNG) in the National Capital Territory of Delhi alongwith Noida, Greater Noida, Ghaziabad, Muzaffarnagar & Fatehpur in Uttar Pradesh and Gurugram, Rewari, Karnal & Kaithal in Haryana.

https://www.freepressjournal.in/business/arun-kumar-singh-takes-over-as-chairman-of-indraprastha-gas-ltd

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JBM Auto to supply DTC with 700 BS-VI compliant AC low-floor CNG buses

JBM Auto Ltd on Tuesday said it has bagged an order from Delhi Transport Corporation (DTC) for supply of 700 BS-VI compliant AC low-floor CNG buses. The company will be supplying 700 ‘CITYLIFE’ BS-VI buses, equipped with modern features like smartcard ticketing system,

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real-time passenger information system (PIS), intelligent transport management system (ITMS), automatic bus vehicle location system and CCTV cameras, among others, in the coming financial year, JBM Auto said in a statement. “… these buses are expected to cater to 50 million passengers per annum, covering around 20 routes across Delhi,” it added. The buses also have features like electronic braking system, public address system and kneeling mechanism, wherein the bus kneels 60 mm towards the passengers’ door side to facilitate boarding and alighting of senior citizens, children and the specially-abled. For drivers, the ergonomically-designed dashboard provides an intuitive and user-friendly system that allows drivers to concentrate on driving without distractions which makes it a truly global product, it added. “IndianOil’s R&D Centre had developed a patented compact reforming process for H-CNG production directly from natural gas. The technology has been successfully proved for its benefits concerning emissions, mileage and durability through extensive studies at a demonstration unit installed at its Faridabad campus.” Besides, the company cited recent studies conducted by the Automotive Research Association of India (ARAI), Pune, which have confirmed that 18 per cent H-CNG as fuel ensures 70 per cent reduction in carbon monoxide and 25 per cent reduction in hydrocarbon emissions in heavy-duty BS-IV engines as compared to baseline CNG, besides increasing fuel economy by 4 to 5 per cent.

https://www.news18.com/news/auto/jbm-auto-to-supply-dtc-with-700-bs-vi-compliant-ac-low-floor-cng-buses-3315854.html

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Torrent Gas seeks nod to lay natural gas pipelines in Chennai

The private city gas distribution network company that will lay pipelines for the supply of piped natural gas has applied to the Greater Chennai Corporation for permissions to cut roads.

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The Corporation conducted a meeting with various line agencies to implement the project. The civic body will collect a track rent of ₹9,400 per km for the pipeline. A committee has been constituted with the Commissioner as the head. Another executive committee has been constituted, with the Deputy Commissioner (Works) at its head, to provide permissions for road cuts. The permissions will be issued after studying traffic congestion on each road. Sources in Torrent Gas Pvt. Ltd., said the lines would be laid at a depth of 1.2 m and inside a chamber-like structure and the gas, a non-combustible one, would be passed at a reduced pressure. “We are now seeking permissions for laying the main lines. These would initially run from nearby petrol bunks and later be be connected to the bigger network,” the official said. The company will pay the Corporation ₹20 lakh as restoration charges for every 1 km of road cut for bituminous roads and ₹21.75 lakh for restoring 1 km of cement concrete roads. The cost of shifting any utilities will be borne by the firm. The estimated cost for Chennai and Tiruvallur alone is ₹5,000 crore.

https://www.thehindu.com/news/cities/chennai/torrent-gas-seeks-nod-to-lay-natural-gas-pipelines-in-chennai/article33596422.ece

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Kotak Institutional Equities prefers Mahanagar Gas in the oil & gas space. Here’s why

Mahanagar Gas (MGL) is Kotak Institutional Equities’ top pick in the oil and gas space on the back of consistent margin expansion. In an interview with CNBC-TV18, Tarun Lakhotia, Associate Director of the broking arm of the Kotak Mahindra Group said,

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“From earnings’ standpoint MGL has been expanding their margins consistently. There were apprehensions with expected change in regulatory framework but the Petroleum and Natural Gas Regulatory Board’s (PNGRB) decision which came about a couple of months ago has eased out those concerns.” Hence, the margins that Mahanagar Gas has been able to expand is more sustainable, he added. Indraprastha Gas (IGL) and Gujarat Gas, from delivery perspective, may also show decent set of numbers but valuations already pricing in earnings expectations, Lakhotia further noted.

https://www.cnbctv18.com/videos/market/stocks/kotak-institutional-equities-prefers-mahanagar-gas-in-the-oil–gas-space-heres-why-8033751.htm

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AG&P Pratham opens Tamil Nadu’s first Natural Gas Mother Station

New facility to provide Ramanathapuram district with secure and reliable supply of clean and cost-saving fuel

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AG&P, the global downstream LNG and gas logistics company, today announced the opening of Tamil Nadu’s first-ever Natural Gas Mother Station, in Ramanathapuram under its brand AG&P Pratham. The new Mother Station, located at Valantharavi, will receive natural gas directly from the nearby GAIL gas treatment facility and will be distributed by commercial trucks to CNG stations across the district. The virtual pipeline will allow the public immediate access to natural gas, a clean and cost-effective fuel. AG&P Pratham will serve the PNGRB declared 6 districts out of the 12 districts in Tamil Nadu, namely, Kanchipuram, Changalpattu. Vellore,

Ranipet and Tirupathur. With a line booster compressor of capacity 1500 SCMH and a CNG compressor of capacity 1200 SCMH, the AG&P Pratham Mother Station in Ramanathapuram will operate 24/7. AG&P is also working closely with its partner companies, HPCL, BPCL, IOCL, and OEMs, retrofitters, among others, to ensure a reliable supply of gas to the districts. AG&P Pratham’s Mother Station will initially supply compressed natural gas to CNG stations, giving vehicles access to a superior fuel in place of costlier and heavy polluting fuels such as diesel and petrol. Speaking at the opening of AG&P Pratham’s Mother Station, Manish Goswami, AG&P’s Chief Operations Officer for Tamil Nadu, Andhra Pradesh & Rajasthan said, “We are honoured to announce the opening of Tamil Nadu’s first Natural Gas Mother Station, and thank the Tamil Nadu Government and local authorities for their invaluable support in bringing this important CNG infrastructure to this district. Our Mother Station will power AG&P Pratham’s City Gas Distribution network, as well as supply gas to other CGD gas infrastructure companies to meet the growing demand for cleaner energy in the state.”. In 2018 as part of the Government’s City Gas Distribution bidding process, the PNGRB granted AG&P the exclusive license to develop the CGD networks in Ramanathapuram, Kanchipuram and Vellore, covering ~14500 square km of Tamil Nadu. Under the licenses, AG&P will sell natural gas exclusively for eight years and operate its CGD infrastructure exclusively for 25 years. AG&P has already opened two CNG stations in Ramanathapuram district and plans to open 30 more in Tamil Nadu by the end of 2021.

https://www.manufacturingtodayindia.com/people/9546-agp-pratham-opens-tamil-nadus-first-natural-gas-mother-station

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GO TOP

Electric Mobility & Bio- Methane

Bio data of a wonder bio fuel

Petroleum and natural gas minister Dharmendra Pradhan recently announced that India will see an investment of ₹2 lakh crore in setting up 5,000 compressed biogas (CBG) plants.

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This comes at a time when the annual discussion on air quality has once again renewed the discourse on the desperate need for renewables. There are several advantages of CBG:

Social: CBG plants can revitalise rural economies. A hub-and-spoke model to service a CBG plant can create vast employment opportunities in biomass creation, agroforestry, logistics and other support functions. A 15 tons per day (TPD) CBG plant combined with a 750-acre food forest (FF) can generate sustainable employment for 400 people. This holds a real potential to reduce and reverse rural migrations.

Environmental: CBG produced and consumed locally would burn cleaner, whether in tractors, trucks, buses or motorbikes, and have a negligible carbon footprint compared to fossil fuels. Carbon credits at various levels are generated: one, significant carbon-fixing when the biomass is building; two, reduction of greenhouse gases; three, organic fertiliser replacing chemical fertilisers. Use of crop stubble and agriwaste as CBG feedstock will keep air and groundwater cleaner.

Financial: For the exchequer, significant energy security and savings can be made in foreign exchange. At 20% blending with ethanol and substitution of compressed natural gas (CNG) by CBG, ₹22,400 crore may be saved annually. The impact on the ecosystem, if quantified in terms of savings on healthcare, etc., would be staggering. The elimination of imported chemical fertilizer will lead to a host of tangible and intangible benefits.

For the farmer, agri-waste hitherto burnt or dumped in the open will be supplied to CBG plants at ₹2 a kg. This could boost farmer incomes by 25-50%. Significant savings can be made in farm input costs, as the organic fertilizer will replace all inorganic varieties. Organic agri-produce would guarantee better prices, easier access to export markets, and boost health and wealth of all constituents. For the rural economy, the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme envisages installation of 5,000 CBG plants. This, combined with FF initiatives, could well provide sustainable employment to 20 lakh people. High internal rates of return of over 20% for standalone CBG plants and 30%, when combined with FF, is possible.  A payback period of about four years makes this an attractive proposition for entrepreneurs. 5,000 15 tonne CBG plants combined with an FF at an approximate revenue of up to ₹50 crore per plant would boost the rural economy by an estimated ₹150,000 crore. GoI, on its part, has cleared roadblocks to encourage investment in this area. Environmental clearances and availability of finance are significant tailwinds. The technology is also ready for roll-out. With these factors coming together, CBG plants should start working their magic for India’s rural economy.

https://economictimes.indiatimes.com/industry/energy/oil-gas/view-bio-data-of-a-wonder-bio-fuel/articleshow/80437467.cms

E-vehicles get UP CM’s push, road tax may go

In a major push to electric vehicles and e-rickshaws, chief minister Yogi Adityanath has said that this technology needs to be given precedence over conventional fuel like petrol and diesel.

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During a review of electric vehicles by the department of infrastructure and industrial development on Thursday, the CM proposed an exemption in road tax and registration fees in order to promote electric vehicles. Assessing the proposed amendments to the Uttar Pradesh Electric Vehicle Manufacturing Policy-2019, the CM said that since electric vehicle manufacturing was an emerging sector, it was necessary to liberalise the policy and encourage mega investments. He said: “I have directed officials to make policy efforts to encourage manufacturing of electric vehicles in the state for a better future. Proposals have been received from various international automobile companies for setting up electric vehicle manufacturing units in the state. We will be providing all possible help to the companies. This will promote industrial investment in the state.” The CM said that a centre of excellence will be established at the earliest for research and development, testing and certification in the electric vehicle industry. To encourage the industry, the CM said that private electric vehicle parks should be given benefits under the state’s private industrial park scheme and other incentives which have been provided to the bulk drug parks. For charging e-vehicles, the CM said that a revenue sharing model should be used for setting up charging stations. He also said that there was a need for giving capital subsidy to industries in place of the current rules of SGST reimbursement. The CM said that e-rickshaws should be promoted over diesel tempos and autos to reduce pollution. For this, he added, drivers of diesel rickshaws should be provided loans under various schemes of the central or state government related to self-employment for purchase of e-rickshaws.

Source: ET Auto

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Homegrown EV brands rev up on green mobility, report ‘double demand’

Ather Energy, an electric two-wheeler manufacturer in Bengaluru, has expanded its presence from an initial 9 cities in 2020 to 24 cities at present. “Despite the pandemic, demand for Ather’s products has doubled. At Ather,

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we see a high demand in all the markets that we have entered as consumer sentiment around EV is very positive and demand will continue to grow in coming years,” said Tarun Mehta, CEO and co-founder Ather Energy that makes electric scooters that cost Rs 1.46 lakh, which includes the cost of a charging station. Ather Energy said growth in revenue went up four times to about Rs 49 crore in 2020-21. According to an independent study done by Council for Energy, Environment & Water and Centre for Energy Finance, by 2030 cumulative EV sales in all vehicle segments could cross over 100 million units, 200 times its current market size. The transport sector accounts for 18% of total energy consumption in India. The sector also contributes an estimated 142 million tonnes of CO2 emissions annually. Pushing for electric mobility makes sense also because of the climate change commitment made by India during COP21 Summit in Paris: to reduce carbon emission intensity by 33-35% by 2030 from 2005 levels. “In our hybrid selling model – both offline and online – we are 10x of what we were last year. Our online sales have increased exponentially,” said Naveen Munjal, managing director, Hero Electric, which has 3,50,000 EVs on road and hopes to sell more than 50,000 vehicles by the end of this financial year. After experiencing a slight dip in sales in 2020 due to Covid, Gurugram-based Okinawa Autotech is expecting a 200% growth. “With petrol prices skyrocketing, there’s going to be greater interest in electric mobility in the coming two years,” said Jeetender Sharma, managing director, Okinawa Autotech. Right now, there are 90,000 Okinawa EVs on the road and by the end of this financial year, the company expects the number to touch 1 lakh. These growth figures are encouraging, considering how nascent the EV industry is in India. According to the Bureau of Energy Efficiency, the industry contributes less than 1% of the total vehicle sales in India. But the buzz around EVs is growing. “Entry of brands like Tesla is definitely going to help create awareness around electric vehicles, which is already higher than before. The government is also pushing for electric mobility. Battery prices have declined by 85% in the past 10 years, pushing down the purchase price,” added Munjal. Ultraviolette Automotive will launch India’s first electric motorcycle F77 in mid-2021. “Since the unveiling of the prototype in 2019, we have received an overwhelming response from the market, especially from people in the age group of 22-30 years. We are targeting 10,000 units in the first 12 months,” said Ajit Nair, vice-president, marketing, Ultraviolette Automotive. Their electric bike starts at Rs 3 lakh. But challenges remain. “One of the key challenges is capacity building. We need to have a solid national supply chain as well as a strong manufacturing process for scaling up and meeting demand,” said Mehta of Ather Energy. Munjal hopes that in the coming budget the government will reduce taxes and duties for EV manufacturers.

Source: ET Auto

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Escorts to commercially launch electric tractor in India

The agriculture machinery division of Escorts Ltd on Monday (Jan 18) got certification from the Central Farm Machinery Training and Testing Institute, Budni, for its electric tractor with the description “Escorts Limited,

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Farmtrac (26E) Agriculture Tractor manufactured by Escorts Limited” that it complies with the provision of the Central Motor Vehicles Rules (CMVR), 1989. The tractor manufacturer unveiled its electric tractor in 2017. In a statement to BSE the company said, “We had showcased futuristic and eco-friendly electric tractor concept in variants of mechanical and hydrostatic power transmission platform for sustainable and green agriculture.” “We started export of these tractors in 2019 and now with this certification, we will be launching in the domestic market too. The launch and other details will be shared soon” it added. Escorts is the first and the only company to receive the CMVR certificate in India for electric tractors. Designed and developed by the in-house R&D of Escorts, the electric tractor is in the 21-30 HP segment. Recently, the Punjab-based Sonalika Tractors also launched its Tiger Electric for INR 5.99 lakh. It is powered by IP67-compliant 25.5 kW natural cooling compact battery to ensure 1/4th running costs against the traditionally used diesel.

Source: ET Auto

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Electric car manufacturer Tesla may park in Gujarat

Gujarat, which has emerged as a preferred destination for global automobile giants, has made a strong pitch to invite Tesla — a leading name in the manufacture of electric cars — to set up base in the state.

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The company, which is setting up its research and development centre in Bengaluru, is in touch with a few states, including Gujarat, to start India operations. Manoj Das, additional chief secretary (ACS), Chief Minister’s Office (CMO) and in charge ACS, industry and mines department, when contacted said the state government is in discussions with Tesla and has assured the company all possible assistance and incentives for setting up base in Gujarat. “The world’s top most automobile companies have set up manufacturing plants in the state, which has become an automobile hub with key MSME players supporting large companies. Major electric car manufacturers and vehicle battery manufacturers are setting up facilities in Gujarat. We are hopeful that like other global automakers, Tesla will prefer Gujarat,” the official said.
Tesla is set to begin its India journey with its highest-selling Model 3, before the premium Model S and Model X, which would be available later in the year and in early 2022. The India arrival dates and prices, however, have not been revealed by Tesla, which now has a registered office in Bengaluru. According to Prabhu Ram, head of the industry intelligence group (IIG), CMR, Tesla’s bold bet on India will supercharge and transform the country’s mobility future. “Over the short-term, Tesla’s entry will give a boost to the government’s policy initiatives, strengthen EV manufacturing in India, spur new mobility startups, and most importantly, hasten development of enabling EV infrastructure,” Ram said. Along with Gujarat, the company is also in talks with Maharashtra, Tamil Nadu, Andhra Pradesh and Karnataka to set up its facility. Das said with Gujarat emerging as a hub for renewable energy, the cost of power will be very competitive in the state. “Companies will be able to take advantage. Gujarat also has strategic advantages like ports and proximity to all major markets of India. In the past two months, we have had significant communication with the company and explained our new industrial policy and other advantages of being in Gujarat,” Das said. The electric vehicle (EV) market in India is expected to reach the 63 lakh unit-mark per annum by 2027, according to a recent report by the India Energy Storage Alliance (IESA). The demand for batteries is also going to rise substantially over the same period. EV sales in India stood at 3.8 lakh units in 2019-20.

Source: ET Auto

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Electric vehicles to dominate in India by 2030, Mahindra says

Electric-vehicle sales should overtake gas guzzlers in India by the end of the decade as prices become more aligned and infrastructure and technology improves, hopefully with help from the government, according to Mahindra & Mahindra Ltd.,

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one of the country’s biggest automakers. While authorities can assist in terms of cost parity for EVs, in India it’s “difficult for the government to justify subsidizing cars for the rich,” Mahindra Deputy Managing Director Anish Shah said in an interview with Bloomberg Television broadcast Monday. “We have to find technology advances faster.” The government will have to play a significant role in developing infrastructure for EVs, he said, adding that the technology side – charging times and driving ranges – is “moving fairly rapidly already.” “In three to five years’ time, we will have modern electric platforms in India” and cars with internal combustion engines will start to be phased out, Shah said. “2030 is what we see as a tipping point where electric will overtake ICE engines in terms of sales.” India’s Hero MotoCorp Ltd., the world’s biggest maker of motorcycles and scooters by volume, also thinks electric “is the way forward,” Chairman Pawan Munjal said in a separate interview with Bloomberg TV on Monday (Jan 25). Hero’s research and development centres in Jaipur and Germany are working “very vigorously” to make electric scooters and motorcycles, while the company is also developing a three-wheeler and has invested in Bengaluru-based electric-scooter startup Ather Energy. Mahindra is still focusing on larger sports utility vehicles and pickup trucks, a “reasonably large segment to drive scale,” Shah said. The company’s new Thar SUV is proving popular, with a nine-month waiting list, according to Shah. “A changing dynamic we are seeing of consumers wanting to go out with nature a lot more and that positions our SUVs very well.”

Source: ET Auto [Edited]

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Gas/ Pipelines/ Company News

Adani Total Gas, Torrent Gas become first strategic investors in IGX

Adani Total Gas and Torrent Gas — with stakes in both upstream and downstream hydrocarbon value chain — have acquired five per cent equity stake each in Indian Gas Exchange (IGX).

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India’s first authorised gas exchange envisions to play a key role in the development of gas market which is aligned with the government’s vision to increase the share of gas in energy mix from 6 to 15 per cent by 2030, said Director Rajesh K Mediratta. “In our journey to shape the nascent gas markets, we are delighted to partner with Adani Total Gas and Torrent Gas. We look forward to working in collaboration as IGX braces to play a pioneering role in developing India’s gas markets,” he said in a statement on Friday (Jan 22). Suresh P Manglani, CEO of Adani Total Gas Ltd, said the company is committed to building gas infrastructure to increase the share of natural gas in India’s energy mix. The precedent of Indian Energy Exchange has remarkably transformed electricity trading. Likewise, the IGX is amply equipped to transform the gas sector in the coming years as it will enable efficient and competitive gas pricing and help in securing equitable distribution of natural gas in the country. “IGX is one key step towards achieving the government’s vision of a gas-based economy and will play a key role in discovering India’s own price benchmarks,” said Manglani. Jinal Mehta, Director of Torrent Gas, said India is on the course to become a formidable energy and gas hub. IGX can play a catalytic role for India’s gas market and will stimulate demand, increase availability and ensure competitive prices. “Torrent’s investment in IGX, which is India’s first delivery-based gas exchange, is in line with our strategy to enhance our footprint in India’s energy landscape,” said Mehta. IGX is also the first gas exchange in the country to have secured authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations 2020. The exchange now has 16 members and more than 500 registered clients. With three physical hubs at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh, IGX has already traded 75,000 metric million British thermal units (MMBTUs) since its launch in June 2020. It also has plans to introduce two new hubs — one at Dhabol in Maharashtra and other in West Bengal.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/adani-total-gas-torrent-gas-become-first-strategic-investors-in-igx/80403249

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Crude oil production falls 3.6 per cent, natural gas shrinks 7.1 per cent in December

Crude oil production fell 3.6% and natural gas shrank 7.1% in December from a year earlier as producers struggled with ageing fields. ONGC, the nation’s largest producer of oil and gas, registered a 2.8 per cent

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decline in oil production while Oil India’s output was down 16.2%, according to the Oil Ministry data. Fields operated by the private sector witnessed 11.6% decline in oil production. India’s oil production has been falling for almost a decade due to ageing fields and the absence of any major discovery for years. Both state and private players have been working on investment plans to raise recovery from older fields. Domestic gas output, however, is expected to rise in the coming months as new fields have begun production. Refiners processed 0.9% more crude in December from a year earlier. In November, they processed 5.1% less crude. Growing domestic fuel demand has driven up run rates at refineries. Crude oil imports increased 3.4% in December from a year earlier. The consumption of petroleum products was 1.8% lower than the previous December. The dependence on crude import for domestic consumption was 84.8% in December. The price of the Indian basket of crude averaged $49.84 per barrel in December as against $43.34 in November and $65.50 in December 2019.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/crude-oil-production-falls-3-6-per-cent-natural-gas-shrinks-7-1-per-cent-in-december/80366399

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GAIL announces Rs 1,046.35 cr share buyback

GAIL (India) Ltd, the nation’s largest gas transportation and distribution firm, on Friday ( Jan 15) announced a Rs 1,046.35 crore share buyback programme as it looked to return surplus cash to shareholders,

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the biggest being the government of India. In a stock exchange filing, the company said its board has approved the buyback of 6.97 crore shares at a price of Rs 150 per share. The shares being bought represent 1.55 per cent of the total number of fully paid-up equity shares. The company board also declared an interim dividend of 25% (Rs 2.50 per share) for financial year 2020-21. GAIL stock was down 2.2% on the BSE and was trading at Rs 140.75 at 14.15 Hrs. The government owns 51.76 per cent of GAIL and is expected to participate in the share buyback. It stands to get Rs 583.6 crore from the dividend payout and another Rs 541.5 crore if it participates in the buyback by tendering a proportionate number of shares. The buyback plan of Rs 1,046.35 crore represents “2.5% and 2.26% of the aggregate of the fully paid-up equity share capital and free reserves of the company,” GAIL said in the filing. The plan was within the statutory limits of 10%, it said. The record date for buyback of equity shares as well as payment of the interim dividend will be January 28, GAIL said. The government has asked at least eight state-run companies to consider share buybacks as it scours for ways of raising funds to rein in its fiscal deficit. A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market. Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to return surplus cash to shareholders. The government wants public sector undertakings to either meet their targets for capital expenditure or “reward the shareholder in the form of a dividend” or share buyback. The government, which holds 51.76% of GAIL, is likely to participate in the GAIL buyback just as it did in the case of NTPC, Engineers India Ltd, RITES and KIOCL. Finance Minister Nirmala Sitharaman had in her budget for 2020-21 set a target of raising Rs 2.1 lakh crore from privatisations and the sale of minority stakes in state-owned companies. The share buyback, as well as the dividend, is counted as part of this target. According to the Department of Investment and Public Asset Management (DIPAM), the government has so far raised Rs 28,298.26 crore from disinvestment proceeds.
This includes Rs 14,453.77 crore received as dividend from state-owned firms. The remaining Rs 13,844.49 crore proceeds include Rs 1,065.37 crore from selling shares in NTPC share buyback. The government is likely to miss its disinvestment target by a wide margin and the fiscal deficit is not likely to be anywhere near the target of 3.5 per cent of the GDP in 2020-21 (April 2020 to March 2021). While privatisation of firms such as Bharat Petroleum Corporation Ltd (BPCL) and Air India Ltd has been pushed into next fiscal due to COVID-19-related delays, tax collections have been hit hard as restrictions imposed to curb coronavirus dented incomes all around.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/gail-announces-rs-1046-35-cr-share-buyback/80284433

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Total to acquire 20 % stake in Adani Green Energy

The Adani Group said on Monday (Jan 18) that France-based Total will acquire 20% minority interest in Adani Green Energy Ltd (AGEL). The investment in AGEL is another step in the strategic alliance between

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Adani Group and Total across various businesses and companies of the Adani Group, covering investments in liquefied natural gas (LNG) terminals, gas utility business, and renewable assets across India. This is in line with the commitment of both Adani and Total to be leading participants in the sustainable economy of the future and help India in its quest for development of renewable energy,” the Adani Group said. In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Ltd’s city gas distribution business, associated LNG terminal business, and gas marketing business. Total acquired 37.4% stake in Adani Gas Ltd and 50% stake in Dhamra LNG project. It was agreed that Total and Adani will continue this alliance into the wider sustainable energy space. Total and Adani agreed to the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of $2.5 billion. “We are delighted to deepen our strategic alliance with Total, a global energy major, and welcome it as a significant shareholder in AGEL,” Adani Group chairman Gautam Adani said. “We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030,” he said. Total SE’s chieef execitive officer Patrick Pouyanne said the agreement is an important step in the alliance with the Adani Group in India and with regard to the common vision and goals concerning the importance of access to low carbon energy in India. Total’s entry into AGEL is a major milestone in its strategy regarding the renewable energy business in India put in place by both companies, which began with the first joint venture of 2.3 GW of renewable capacity. Adani Group and Total have joined hands to develop green power sources at affordable prices and to deliver this transformational energy solution. As on date, AGEL has more than 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025 and is committed to contributing meaningfully to India’s COP21 goals and to the wider United Nations Framework Convention on Climate Change goals of sustainability.

https://www.livemint.com/companies/news/total-to-acquire-20-stake-in-adani-green-energy-11610949134370.html

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GEECL seeks nod for shale gas exploration

Over Rs 15,000 crore investment in West Bengal by Great Eastern Energy (GEECL) is being held up following no amendment of mining lease by the state. UK-headquartered GEECL is planning to start shale gas exploration along with

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coal bed methane (CBM) it is doing in Raniganj. Sources close to the development said that GEECL has applied to the state government for amendment of existing mining lease and to include shale gas exploration in the lease along with CBM. The Centre has allowed exploration of shale gas by CBM operators in 2018. “The Centre has given deemed approval for shale for all CBM operators. But mining lease with state has to be changed accordingly,” added sources. When contacted, a GEECL spokesperson said, “We have received the environment clearance to start our Shale exploration program, and we are looking forward to receiving the pending approval to amend our current mining lease in order for us to start the program. An investment of Rs. 15,000 crore is envisaged in the entire Shale programme, which can potentially generate thousands of direct / indirect jobs and attract major investments in the downstream sector in the State of West Bengal.” GEECL has so far paid around Rs 30 crore on account of royalty and taxes (VAT/ GST) to the state for FY 2020. Combined estimated value of the CM and shale gas reserve of GEECL is around $ 14 billion. According to market reports, GAIL (India) Limited’s upcoming &Jagdishpur – Haldia and Bokaro – Dhamra pipeline —pquot; is expected to be operational by February 2021. This pipeline will provide the Company with the opportunity to expand its customer base and sales significantly by accessing the huge market of Kolkata and also to the wider state of West Bengal.

https://timesofindia.indiatimes.com/business/india-business/geecl-seeks-nod-for-shale-gas-exploration/articleshow/80438803.cms

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Policy Matters/ Gas Pricing/Others

Clean push: Why compressed biogas has an edge over CNG

CBG can replace CNG as a transport and industrial fuel, while dissuading farmers from setting fire to paddy stubble.  

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How about filling up your vehicle with straw and running it for a full year? If this sounds bizarre, then here’s more. Verbio AG, a German company, claims that you can actually do it with just two tonnes of straw. The company is now busy setting up a plant in the middle of lush paddy fields at Bhutal Kalan village in Punjab’s Sangrur district. “Our plant will procure paddy stubble from within 15 km radius of the plant and use it as raw material,” said Yuvraj Verma, a project manager. The plant should start producing compressed biogas (CBG) in June or July. CBG holds a win-win solution to the country’s air pollution problems. India mostly imports a clean fossil fuel. If all goes well, the country will have 5,000 such plants by 2023. Going by the policy initiative Sustainable Alternative Towards Affordable Transportation (SATAT), introduced in October 2018 to promote CBG, these plants will produce 15 million tonnes of gas, enough to reduce the country’s CNG bill by 40 per cent. This needs an investment of Rs 1.75 lakh crore and will help generate 75,000 jobs. By the end of 2020, more than 70 such plants were under construction across Punjab, Haryana and Uttar Pradesh — the states notorious for stubble-burning. Together, these plants will consume 1.3 million tonnes crop residues a year, mostly paddy stubble. While some like Verbio are importing technologies, others plan to use the dry-digester technology developed by Indian Institute of Technology Delhi.

Irrespective of technology, producing CBG from biomass involves a two-pronged approach. First, biogas is produced through anaerobic decomposition of biomass. Since biogas contains 55 to 60% methane, 40 to 45% carbon dioxide (CO2) and trace amounts of hydrogen sulphide, the second process involves purifying the gas to remove carbon dioxide and hydrogen sulphide gases to prepare CBG. This makes CBG a commercially viable option as it can be directly used to replace CNG in transportation fuel. Just like CNG, CBG too can be transported through cylinders or pipelines to retail outlets. “Given the abundance of biomass in the country, CBG has the potential to replace CNG in automotive, industri al and commercial uses. It can also be used directly in generator sets to produce clean power,” says Sanjeev Nagpal whose Sampurn Agri Ventures has been running a paddy straw-based CBG plant in Fazilka, Punjab, since 2006.

Win-win business 

Both Nagpal and Verma are confident about the future of CBG in the country as well as their businesses. Verma’s biggest relief is that he does not have to worry about the market for this novel fuel:

“The Indian Oil Corporation Ltd (IOCL) has identified some number of filling stations where it will develop the infrastructure for CBG. It will create awareness about the gas and market it, so that by the time our plant is operational there is demand from consumers. We have signed an agreement with IOCL, under which it will also buy our entire offtake.” To ensure a sustained interest from the industry, the government has promised to purchase gas produced by CBG manufacturers at the same rate as CNG and is offering easy loans to entrepreneurs.

“It’s a plan designed to curb burning of crop residue not by focusing on the farmer or farm-level measures, but on entrepreneurs,” says Nivit Kumar Yadav, program me director at the Centre for Science and Environment, a non-profit in Delhi. “Once the plants are set up and farmers have a market to sell crop stubble, they will stop setting fire to their farms.” Verbio has already announced to buy paddy stubble from the target farmers for Rs 600 a tonne. Its plant will use 350 tonnes of crop residues a day to produce 33 tonnes of CBG. The advantages of CBG do not end here. Its solid by-products can be used as bio-manure. Estimates under SATAT show the 5,000 planned CBG plants will generate 50 million tonnes of bio-manure a year.According to the Punjab Agricultural University, Ludhiana, bio-manure produced using paddy straw can result in a 20 per cent increase in crop yield. It is a rich source of silica that not only aids in the growth and yield of crops but also bestows immunity against many diseases and prevents toxic material uptake by plants such as arsenic, cadmium, lead and other heavy metals. It can thus help reduce the requirement of chemical fertilisers. Bio-manure produced from paddy straw also has a high water retention capacity that helps reduce irrigation requirement. The other by-product is CO2. It can be tapped while purifying the biogas and used to produce liquid or solid CO2, which have high demand for food preservation or to be used in fire extinguishers. CBG and its by-products hold the chance for a circular economic growth. Let’s make it work this time. 

https://www.downtoearth.org.in/news/energy/clean-push-why-compressed-biogas-has-an-edge-over-cng-74874

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Make in India boost, oil cess may be halved

The government may give a ‘Make in India’ push to oil and gas explorers, as it is considering a proposal to almost halve cess on domestic crude oil to encourage exploration activity and allow Covid-hit oil producers to protect their margins.

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The glut in the oil market and deep suppression of demand during the peak of pandemic in 2020 had pushed down crude oil prices to unprecedented levels. Though crude prices have recovered over the vaccination drive against Covid and a pick in demand coupled with unilateral production cut announced by Saudi Arabia, cess puts domestic crude at a disadvantage against imported oil. Cess on domestic crude is currently levied at the rate of 20 per cent of the value of oil. Official sources said the proposal by the Union Oil Ministry is to reduce it to 10 per cent. If this is accepted by the Finance Ministry, the changes may be announced as part of Budget 2021-22 proposals, sources said. Though the larger view is in favour of halving the cess, the exact quantum would be worked out later. The reduction in the levy has huge revenue implications as ONGC alone pays cess in excess of Rs 10,000 crore annually. The changes would also provide a level playing field to domestic companies as imported crude does not attract cess. “Cess is levied only on crude oil produced domestically. Thus, it places domestic crude oil production vis-a-vis imported crude oil at a significant disadvantage as imported crude does not attract such duty. This levy is against the spirit of ‘Make in India’,” industry chamber FICCI had said in a memorandum given to the Finance Ministry earlier. The government is looking to reduce the tax burden on oil companies to push up domestic production that has stagnated for past several years at around 30-35 million tonne. The reduction in oil cess would benefit upstream companies such as ONGC and Cairn India whose production is subjected to the oil industry development cess levied on an ad valorem basis. The cess was levied at Rs 60 per tonne in July 1974 and subsequently revised from time to time. In 2005-06, when the crude oil prices had increased from an average of $40 per barrel to $60, the OID cess was raised from Rs 1,800 to Rs 2,500 per tonne from March 1, 2006. Again, when the crude prices climbed to over $100, the rate of cess went up to Rs 4,500 ($12 per barrel) with effect from March 17, 2012.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/make-in-india-boost-oil-cess-may-be-halved/80477030[Edited]

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LNG Development and Shipping

Attractive LNG prices to boost India’s plan on gas-based economy

India‘s efforts to build a gas based economy is set to get a boost from the falling spot LNG prices that had skyrocketed to over $30/MMBtu (from $2 a few months ago on the back of the winter demand and supply constraints.

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According to an estimate made by Emkay Global Financial Services, Asian spot LNG prices have started cooling off now with the latest deals happening at sub-$ 10 level for March delivery. This should consolidate at $ 5-6/MMBtu due to seasonality and resolution of supply issues, offering higher volumes for the Indian LNG players, the brokerage said in its report. Indian spot LNG demand (20 per cent of consumption) is likely to be affected in January and February months but, thereafter supplies are expected to recover on the back of sub $ 10/MMBtu prices. This should also better avenues for entries such as GSPL, PLNG. Indian deals (for spot LNG) have happened at the rate of up to $ 14-15/MMBtu recently. Out of 95mmscmd of Indian RLNG demand, 50-55mmscmd is long term, 10-15mmscmd is short term and remaining 30mmscmd is spot.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/attractive-lng-prices-to-boost-indias-plan-on-gas-based-economy/80416453

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Kerala Budget: Industry hails VAT reduction on CNG/LNG

The proposed VAT reduction on CNG/LNG in the Budget to 5%, from 14.5%, is expected to usher in a new wave of industrialisation in Kerala. By reducing the rates, the government has conceded to the demand of the industry

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as the high tax rate was seen as an impediment for attracting new investments. Yogananda Reddy, Chief General Manager and Vice-President, Petronet LNG Ltd, termed the government announcement as a positive development for end-users and the company expects its volume of gas to go up. PLL operates 20% of its 5 MMTPA capacity terminal in Kochi and this is expected to go up to 30-35% in the next fiscal because of the cheaper availability of gas. Kishor Rungta, Chairman and Managing Director, FACT, said the move will boost industrial development of the State with the availability of cheap gas. For FACT, it would be more easy to chalk out future plans as the company has to depend on ammonia imports for fertiliser production. With the reduction of VAT on LNG, the company will be able to run ammonia plants. According to MP Sukumaran Nair, Director of Kochi-based Centre for Green Technology and Management, the 5 MMTPA gas terminal which started operation in 2013 did not achieve capacity utilisation all these years on account of the carrying pipeline not being in place and due to the prevailing 14.5% VAT on gas. Tamil Nadu charges only 4% tax on natural gas and Punjab 3%, he said. The current move will be a boon to PLL which will see a reasonable growth in capacity utilisation and also provide a boost for gas utilisation in the State. The city and auto gas consumers will get the benefit of reduced tax. The sale of natural gas in Kerala is also likely to increase substantially, thereby yielding increased revenue for the Government, he said.

https://www.thehindubusinessline.com/news/kerala-budget-industry-hails-vat-reduction-on-cnglng/article33582584.ece

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Shell India starts LNG truck-loading unit at Hazira

Royal Dutch Shell‘s India unit on Tuesday (Jan19) announced the start of operation of its small-scale LNG supply with a truck-loading unit being inaugurated at its LNG import terminal at Hazira in Gujarat.

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Oil Minister Dharmendra Pradhan inaugurated the LNG truck-loading unit, the company and the oil ministry said in separate statements. Speaking on the occasion, Pradhan said the unit will boost the availability of natural gas in off-grid areas where there are no gas pipelines and also promote the use of LNG in long-haul trucking. The government is promoting the use of natural gas through various policy and regulatory reforms towards making India a gas-based economy by raising the share of gas in the nation’s primary energy mix to 15% from the current 6.2%. Small-scale LNG can play an important role in realizing this target as it enhances clean energy access across the country. Gas is traditionally transported through pipelines from gas fields or liquefied natural gas (LNG) import terminals. Trucking LNG to users has lately emerged as an option to take the fuel to small and stranded users. “While gas customers in industrial clusters are expected to be the primary beneficiaries, small-scale LNG will also support the market seeding and development of the recently licensed city gas distribution (CD) geographical areas, not yet connected by pipelines,” Shell Energy India said in the statement. Apart from industrial and CGD segments, the small-scale LNG supply infrastructure will also contribute to the development of a conducive ecosystem for faster adoption of LNG as the preferred transportation fuel, especially for long-haul transport. The Hazira terminal has been in operation since 2005 and received more than 600 LNG cargoes to date. “This development extends our downstream customer offering and now, in addition to the supply of R-LNG via pipeline, we can also supply LNG by trucks to customers across India,” Nakul Raheja, who has recently taken over as Country Head, Shell Energy India, said. Speaking on the occasion, Pradhan complimented Shell for their efforts in expanding the LNG infrastructure in the country. Innovative supply solutions like LNG by trucks will play a pivotal role in the development of gas markets across the country including hinterlands. “This infrastructure will also help support in the development of LNG as a clean transportation fuel,” he said. Pradhan said increasing competition in the LNG sector will help in the emergence of new markets, create new employment opportunities, ensure cleaner fuels for industries and facilitate environment conservation. “We are committed to increasing the clean energy share in our energy mix to transform into a gas-based economy, address issues of climate change and build an Aatmanirbhar Bharat,” he said.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/shell-india-starts-lng-truck-loading-unit-at-hazira/80357304[Edited]

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Indian Oil buys LNG cargo for March delivery

Indian Oil Corp bought a liquefied natural gas (LNG) cargo for delivery in March, two industry sources said on Thursday. It bought the cargo for delivery on March 10 into Dahej at close to $8 per MMBtu

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from commodity trader Vitol, one of the sources said. Separately, India’s Gujarat State Petroleum Corp (GSPC) bought a cargo for mid-February delivery at about $8 to $8.40 per MMBtu from Qatar Petroleum Trading, a second source said.

Source: Indian Oil & Gas/Reuters

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GO TOP

INTERNATIONAL NEWS

 

Natural Gas / Transnational Pipelines/ Others

Woodside signs gas supply deal with Western Australia government

Woodside will now supply an additional 45.6 petajoules of domestic gas from its existing share of the NWS project from 2025, Australia’s top independent gas producer said. Woodside Petroleum inked a deal with the

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Western Australian government to supply gas from its Pluto field to the North West Shelf (NSW) liquefied natural gas (LNG) project through a pipeline, the state government and company said on Friday (Jan29). Woodside said it would feed gas from Pluto through the construction of an interconnector pipeline along the Dampier to Bunbury Natural Gas Pipeline corridor to the NWS project’s Karratha gas plant. “Connecting the Pluto and NWS facilities accelerates the production of offshore Pluto gas and provides flexible access to emerging LNG processing capacity,” Woodside’s outgoing Chief Executive Officer Peter Coleman said. Woodside will now supply an additional 45.6 petajoules of domestic gas from its existing share of the NWS project from 2025, Australia’s top independent gas producer said. The agreement follows a deal in December between Woodside’s Burrup Hub and the NWS Project partners to process about 3 million tonnes of LNG and 24.7 petajoules of domestic gas at the Karratha gas plant. Western Australia’s government said on Friday the new interconnector would create 320 construction jobs, adding that Woodside has agreed to make gas equivalent of 15% of its LNG exports available to the domestic market. The NWS project, operated by Woodside, counts BHP Group , BP, Chevron and Shell as part owners.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/woodside-signs-gas-supply-deal-with-western-australia-government/80562895

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EU lawmakers call for halt to Nord Stream 2 after Navalny arrest

European Union lawmakers passed a resolution on Thursday (Jan 20) calling for the bloc to stop the completion of the Nord Stream 2 gas pipeline to take Russian natural gas to Europe,

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in response to the arrest of Kremlin critic Alexei Navalny. Navalny, Russian President Vladimir Putin’s most prominent critic, was detained at the weekend and later jailed for alleged parole violations after flying back to Russia for the first time since being poisoned by a military grade nerve agent. German Chancellor Angela Merkel, who has continued to back the pipeline between Germany and Russia despite criticism elsewhere in the EU, said on Thursday her view of the project had not changed despite the Navalny case. Lawmakers in the European Parliament voted overwhelmingly to block the pipeline construction work, with 581 votes in favour, 50 against and 44 abstentions, calling on the EU to review relations with Russia in light of Navalny’s arrest. “The European Parliament … calls on the EU and its member states to critically review cooperation with Russia in various foreign policy platforms and on projects such as Nord Stream 2, the completion of which the EU must stop immediately,” the resolution said. Separately, Germany’s regulator said on Thursday it is awaiting details for complaints against Nord Stream 2 after environmental groups filed a challenge to construction. Nord Stream 2 is designed to double capacity of the existing undersea Nord Stream gas pipeline from Russia to Germany to 110 billion cubic metres per year, more than half of Russia’s overall pipeline gas exports to Europe. Led by Russia’s Gazprom with Western partners, the pipeline is more than 90% complete and scheduled to operate from this year. The United States is fiercely against Nord Stream 2, imposing sanctions on a ship involved in construction work. The project has split the EU, with some members saying it will undermine traditional gas transit state Ukraine and increase the bloc’s energy reliance on Russia. The EU should “devise a new strategy for the EU’s relations with Russia, centred around support for civil society, which promotes democratic values, the rule of law, fundamental freedoms and human rights,” the resolution said. (Reporting by Robin Emmott and Kate Abnett; Editing by David Evans and Steve Orlofsky)

https://energy.economictimes.indiatimes.com/news/oil-and-gas/eu-lawmakers-call-for-halt-to-nord-stream-2-after-navalny-arrest/80397477

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Germany approves resuming Russia gas pipeline work

German authorities on Friday (Jan 15) gave immediate permission for work to resume on a subsea pipeline bringing natural gas from Russia. The decision by the Federal Maritime and Hydrographic Agency can be appealed,

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meaning there could be another halt to the construction on the Nord Stream 2 project, which has drawn major criticism from the United States, some other European countries and environmental groups. The US government has argued that the Baltic Sea pipeline would make Europe more dependent on Russian gas and hurt European energy security. The Kremlin has responded by accusing Washington of trying to promote its own liquefied natural gas sales. The Russian state-controlled natural gas company, Gazprom, has positioned a ship to resume work on the multibillion pipeline, which was suspended after a Swiss firm pulled its vessels out of the project amid threats of U.S. sanctions. Because the Russian ship is of a different type than the Swiss vessels, Germany had to issue fresh authorization. Gazprom says 6 per cent of the pipeline, or about 150 kilometers (93 miles), still needs to be completed.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/germany-approves-resuming-russia-gas-pipeline-work/80285234

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Investors buy $2 bln in Gazprom Eurobond, shrugging off Nord Stream 2 sanctions

Russian gas giant Gazprom is placing 8-year Eurobond worth $2 billion, Interfax news agency said on Wednesday, amid strong demand, an indicator that investors saw limited risk from sanctions pressure on the Nord Stream 2 project.

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Gazprom, which is leading the $11-billion gas pipeline project from Russia to Germany, has been out on the market for a U.S. dollar Eurobond issue of a benchmark size, or no less than $500 million. According to the source, the yield is set at 2.95%. Its initial yield guidance for the issue had been seen at 3.25-3.375%, according to IFR, the financial markets analytical service run by Refinitiv. The yield guidance was later narrowed to around 3.125% and further to 2.9%-2.95% as demand for the upcoming issue exceeded $3.75 billion during the book building, a financial market source told Reuters. In the Eurobond prospectus seen by Reuters on Tuesday, Gazprom has warned of the risks that the Nord Stream 2 gas pipeline project may be suspended or scrapped amid political pressure. The United States this week sanctioned one of the Russian vessels destined to finish the pipe-laying works under the sea, earlier having warned of more sanctions to come. “The imposition of any additional sanctions is negative for company sentiment at this stage, but in our baseline scenario we anticipate that the project will be completed,” Aton brokerage said in a note on Wednesday (Jan 20). Overall, external markets are favoring Russian assets amid rising oil prices, on Tuesday allowing Sovcombank, one of the country’s top private banks, to raise $300 million at a 3.4 per cent yield via the 4-year Eurobond and demand at over $700 million. Moscow’s Domodedovo, which owns and runs the second largest airport in Eastern Europe by traffic, is also out to the market this week with 7-year U.S. dollar Eurobond, with funds to be used to buy some of its outstanding notes due in 2021 and 2023. Gazprom last tapped the market in October, raising $1.4 billion in perpetual bonds at a yield of 4.6 per cent and another 1 billion euros at 3.9 per cent. It plans to raise a total of 512 billion roubles ($7 billion) both in Russia and abroad this year.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/investors-buy-2-bln-in-gazprom-eurobond-shrugging-off-nord-stream-2-sanctions/80378044

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Energean approves Israel gas field development

Energean announced on Thursday (Jan 14) it will develop a new natural gas field off the coast of Israel at an initial cost of $150 million. Energean also said it had signed an 18-month, $700 million loan facility

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with J.P. Morgan and Morgan Stanley to help fund the development and pay for the acquisition of a minority stake in Energean Israel from private equity firm Kerogen. The Karish North field, which was discovered less than two years ago, is expected to start production in the second half of 2023, the company said in a statement. The final investment decision had been expected by the end of 2020. The field will be connected via a 5.4 kilometre (3.36 miles) pipeline to Energean’s 8 billion cubic metre-per-year floating production storage and offloading (FPSO) unit where the main Karish field is being developed and is expected to start production by year-end. The first well at Karish North is expected to produce up to 300 million standard cubic feet per day (3 billion cubic metres per year).

https://energy.economictimes.indiatimes.com/news/oil-and-gas/energean-approves-israel-gas-field-development/80282072

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Egypt – Cabinet denies news of natural gas shortage

The Cabinet’s media center has denied news pertaining to a reported shortage in natural gas at filling stations across Egypt. The center, in a statement Sunday, said it had contacted the Petroleum Ministry to verify the news,

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adding that the Ministry dismissed all reports of a fuel crisis as baseless. All petroleum products, including natural gas, are available in all governorates and all filling stations are working at full capacity, the Petroleum Ministry told the center.  In fact, the government is acting to build more natural gas stations in light of a national project meant for vehicles to operate with natural gas, the Ministry said.  The Ministry put the number of natural gas stations across Egypt at 210 serving about 330,000 vehicles. About 80 centers have also been established to turn vehicles to operate with natural gas, the Ministry stressed.

 It urged all media outlets to verify news before publishing so as not to confuse public opinion.

https://www.egypttoday.com/Article/3/96532/Cabinet-denies-news-of-natural-gas-shortage

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Norway awards oil and gas exploration rights to 30 firms

Norway awarded 61 offshore exploration blocks to 30 oil firms in its latest pre-defined areas (APA) licensing round as it seeks to find more resources close to existing fields, Energy Minister Tina Bru said on Tuesday (Jan 19).

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Norway, which began to extract oil and gas from its offshore continental shelf 50 years ago, believes it has still only pumped about half of its available resources. Firms that won stakes in the licences included Equinor , Shell, Aker BP, ConocoPhillips , Total, Lundin Energy and Eni’s Vaar Energi. “These companies have shown great interest in gaining access to new exploration acreage, illustrating the industry’s confidence in continued profitability from exploration on the Norwegian continental shelf,” Bru said. APA rounds cover areas with known geology or near existing infrastructure. “The broad interest shows that companies still believe in the Norwegian continental shelf and in the future profitability of exploration,” said Anniken Hauglie, who heads the Norwegian Oil and Gas Association, an industry group. Sweden’s Lundin received stakes in 19 licences, followed by Equinor with stakes in 17 licences, while Aker BP and DNO each got 10. ConocoPhillips received stakes in four licences, Total in three and Shell in one. Vaar Energi will operate all three licences awarded in the Arctic Barents Sea. Three companies on the original list of applicants did not win any acreage, including RN Nordic Oil, which is a unit of Russia’s Rosneft, and Horisont Energi, a firm dedicated to hydrogen, ammonia and carbon storage solutions. The third company left off the list of awards, Japan’s Idemitsu, recently sold much of its oil and gas business in Norway to Lundin Energy. Norway has also invited oil firms to submit applications by Feb. 23 for 136 exploration blocks in frontier areas in the Barents Sea and the Norwegian Sea. Last December, the country’s top court dismissed a lawsuit by environmental groups against oil exploration in Arctic waters. Norway is western Europe’s largest oil and gas producer, with a daily output of around 4 million barrels of oil equivalent.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/norway-awards-oil-and-gas-exploration-rights-to-30-firms/80357335

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Global LNG Development

Global LNG-Asian prices fall to near two-month low as demand slows

Asian spot prices of LNG fell for a second straight week to their lowest in nearly two months amid warmer weather forecasts and higher supplies. The average LNG price for March delivery into

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Northeast Asia LNG-AS was estimated at about $8.40 per MMBtu, down 50 cents from the previous week, sources said. This is the lowest that spot prices have hit since early-December, Reuters data showed. On Thursday (Jan28), oil major BP bought a cargo for delivery into Northeast Asia over March 16 to March 18 from Diamond Gas International, a subsidiary of Mitsubishi Corp, at $8.40 per MMBtu, data from price agency S&P Global Platts showed. This follows cargo sales from Woodside Energy and Chevron from LNG tankers for delivery in February, highlighting the availability of supply that has become available, traders said. “Production (from Australia) was unstable. So, some of the suppliers had kept buffer cargoes on tankers as insurance, but production turned out ok, so they didn’t need the buffer cargoes,” a Singapore-based trader said. Offers were also seen from Russia’s Sakhalin Energy, Papua New Guinea LNG plant and Oman LNG, they said. tanker rates also dropped, which also weighed on cargo prices, traders said. The lower spot prices attracted some pent-up buying demand from South Asian customers who had stayed away when prices surged to a record $32.50 per MMBtu earlier this month. Indian Oil Corp bought a cargo for delivery on March 10 into Dahej from Vitol at close to $8 per MMBtu after earlier buying a cargo for delivery over Feb. 20 to March 5 from Ras Laffan Liquefied Natural Gas Company at $8.70 per MMBtu, traders said. Gujarat State Petroleum Corp (GSPC) also bought a cargo for mid-February delivery at about $8 to $8.40 per MMBtu from Qatar Petroleum Trading, a source said. Pakistan LNG bought three cargoes for delivery in March through an emergency tender it issued last week, sources added.

Source: LNG Global/Reuters

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Global LNG-Asian spot LNG prices fall as peak winter demand fades

Asian spot liquefied natural gas (LNG) prices fell this week as traders started to book cargoes for a warmer season, after a period of peak heating demand which sent prices rocketing.

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The average LNG price for March delivery into Northeast Asia LNG-AS was estimated at around $8.90 per MMBtu, at the lower range of the $8.00-$14.00/MMBtu estimated the previous week, traders said. March prices are more than three times lower than those for February. Last week, traders estimated cargoes for February at $29.00/MMBtu, after a record high of $32.50/MMBtu on Jan. 13, according to the Japan-Korea-Marker (JKM), which is assessed by pricing agency S&P Global Platts and used as a reference for spot markets in Asia. Individual companies paid nearly $40.00/MMBtu during the peak demand, according to consultancy firms Energy Aspects and Timera Energy. Now, the latter sees April prices retreating to less than $7.00/MMBtu by April.The market experienced supply disruptions in Asia and an acute shortage of cargoes in the region, which made spot charter rates surge six-fold to $350,000 per day within months, Timera Energy said.

“Market participants have always priced in a steep backwardation into the March period, due to expected warmer spring temperatures and lower subsequent demand,” Des Wong, head of EMEA LNG pricing for Platts, said in a note. Temperatures in Tokyo and Shanghai, in two of the world’s top LNG consuming countries, are expected to rise slightly above the historical average over the next two weeks, weather data from Refinitiv Eikon showed. Congestion delaying LNG shipments via the Panama Canal which have been driving up costs is also expected to ease after March, traders added. Buyers from the United States are expected to cancel up to five LNG cargoes for loading in March, half the volumes that were canceled in February amid a shortage of ships, trade sources said on Thursday. (Reporting by Sabrina Valle; editing by Nina Chestney)

Source: LNG Global/Reuters

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LNG production at Shell’s Prelude gas processing plant in Western Australia restarts following 11-month closure

Liquified natural gas (LNG) production has restarted this month on the world’s largest floating object, Shell’s half-kilometre long Prelude gas processing facility. The restart is much-needed good news

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after an 11-month shutdown following a technical issue only described as an “electrical trip” by Shell, and three incidents that the offshore energy regulator NOPSEMA described as “dangerous occurrences”. Two of those incidents involved “loss of hydrocarbon containment”. The facility has been moored 400 kilometres north of Broome in north-west Australia since November 2017. It is intended to process 3.6 MMT of LNG each year from undersea gas fields which is then offloaded to LNG ships for export. Curtin University energy economist Roberto F Aguilera is optimistic about Prelude’s future but said being shutdown for almost a third of the first three years had been a difficult beginning for the $12–$17 billion facility. “It’s not good, I’m sure they had not anticipated that kind of a shut down,” Dr Aguilera said. “They would be hoping that this is a problem with the start of the process, and going forward is something that won’t be repeated.” Resource Industry Analyst Tim Treadgold who writes for US business magazine Forbes remains unimpressed by Preludes’ production restart, a facility he has previously described as a “big embarrassment”. “As for making money from this project, that’s extremely unlikely because the cost overruns and completion delays are in the horrendous category,” Mr Treadgold said.

“They say it’s a multi-decade project and it looks like they’re going to take many decades to prove it.”

Source: LNG Global [Edited]

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Chinese buyers back in talks for $16b Woodside LNG project

Woodside chief executive Peter Coleman has declared momentum is returning for plans to green-light the $16 billion Scarborough gas field project in Western Australia as Chinese buyers resume talks,

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commodity prices recover and rival projects are shelved or abandoned. After the COVID-driven oil and gas crash forced Woodside and joint-venture partner BHP to delay giving the go-ahead to the massive Scarborough project, a freezing cold snap across the northern hemisphere has helped drive a stunning rally in prices for one-off cargoes of liquefied natural gas (LNG) this month prompting producers to increase their forecasts.

Mr Coleman on Thursday (Jan 21) said Woodside was seeing “a lot of positive signs” that LNG demand was strengthening across Asia and globally. “Chinese buyers are now coming back into the market, they’ve approached us again recently to re-engage on negotiations,” Mr Coleman told The Age and The Sydney Morning Herald. “We think everything is starting to line up and gather momentum again.” However, Chinese companies including PetroChina that were in talks with Woodside to potentially acquire stakes in Scarborough walked away last year amid worsening diplomatic tensions between Beijing and Canberra and have not returned to the table. Woodside revealed this week Germany’s Uniper had agreed to double the amount of LNG it would purchase from Scarborough, now locking in 40% of Woodside’s expected share of the field’s gas. But the company is looking for more buyers ahead of a final investment decision targeted for the second half of the year. Mr Coleman, who plans to retire from Woodside in the second half of the year, said Scarborough’s prospects had improved after Woodside and BHP utilised last year’s delays to lift the project’s capacity by 20 per cent. Scarborough would also be coming into a “tighter market” when it begins production in 2025, he added, after last year’s pullback across the industry forced companies to shelve new project plans.

“We thought there would be a raft of new projects coming into the market, but it looks like it won’t occur,” he said. “Now we will be streaming into what we would now predict will be a period of strengthening prices rather than weakening prices.”

Source: LNG Global [Edited]

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Oil-linked LNG may be here to stay after spot market skyrockets

A blistering 1,000% rally in Asian spot liquefied natural gas (LNG) prices since July has undermined buyers’ enthusiasm for relying solely on the spot market, and means archaic oil-linked contracts are

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here to stay, industry sources told Reuters. Asian spot LNG prices LNG-AS dropped to as low as around $1.85 per MMBtu in May last year as coronavirus-induced lockdowns hammered gas demand, but shot up to a record $32.50 per MMBtu this week after an Asia-wide cold snap pumped up gas demand and drained stocks. “The recent volatility in LNG spot prices will increase the appeal of more stable oil-linked contract prices,” said Robert Sim, research director at Wood Mackenzie. Oil-linked term cargoes make up around two-thirds of supply in Asia, the world’s top LNG-consuming region. Long-term LNG contracts are typically linked to Brent crude prices as there are no uniform global gas prices for users to hedge against, though buyers and sellers had in recent years been exploring a hybrid mix of European, U.S. and Asian gas prices in contracts. The allure of hybrid contracts tied to spot gas prices has diminished, however, following the recent volatility. “Six months ago, buyers were asking for hybrid options in contracts but the recent enquiries (for long-term cargoes) we have been getting are all oil-linked,” a source with a major LNG supplier told Reuters. Between 2016 and 2020, Asia spot LNG prices averaged 27.2% less than Brent-linked prices, according to Refinitiv data, causing frustration among buyers tied to Brent-based contracts. However, the volatility of Asian spot prices – as measured by the standard deviation of month-end prices – was 51% higher over that same period, averaging $1.64 per MMBtu compared to $1.09 for Brent-linked values, a Reuters analysis showed. The standard deviation between December 2020 and the recent January 2021 high was $14.85 per MMBtu, as spot prices exploded above $30 while Brent-tied prices remained around $7. “The recent volatility may give buyers some added incentive to look more closely at long-term contracts, which they have been resisting in recent times in favour of mid-term deals and reliance on the spot market,” said Anthony Patten, a partner at law firm King & Spalding. “Maybe oil-linked pricing will become more appealing again, or if JKM is used, price ceilings might be included to protect buyers who have entered into term commitments from these types of spikes,” he said, referring to the Japan-Korea-Marker (JKM) published by price agency S&P Global Platts and which is used as a reference point in spot markets. Oil contracts are typically easier to hedge against Asian gas price risk as the oil derivatives market is more liquid and easier to access than the nascent and thinly-traded Asian LNG derivatives market. A lack of spare capacity and limited storage options in Asia also makes the LNG market susceptible to sudden jolts in demand and supply, industry sources said. Still, with temperatures in North Asia expected to rise soon, and more supply anticipated, spot prices will likely ease and narrow the gap with oil-linked prices, sources added.

“A JKM-indexed contract, which is still quite rare, would certainly now appear less attractive compared to an oil-index, but JKM prices are still expected to settle considerably this summer,” said Ross Wyeno, lead analyst of Americas LNG Analytics at Platts.

Source: LNG Global/Reuters

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Record LNG prices push South Asian countries, including Pakistan, to ration gas

Pakistan, as well as Bangladesh, is rationing gas and buyers across South Asia are seeking alternative fuels after spot liquefied natural gas (LNG) prices surged to record highs, government and industry officials told Reuters.

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Spot LNG prices have nearly tripled since early November as freezing temperatures across North Asia boosted demand and depleted inventories. Since July, prices are up a dizzying 1,000 per cent. Gas-fired power plants and industries across the region are scrimping on gas, with the scramble for other fuels driving up demand for liquefied petroleum gas (LPG) and residue oil. Pakistan, which is more reliant on spot LNG imports for its winter needs, is limiting gas use for industry to certain hours and industry executives have warned the situation has become critical. The recent power blackout, which plunged the entire country into darkness, was partly caused by a gas shortage after buyers who snapped up record-cheap LNG earlier in the year balked at paying up during the recent price surge.

Meanwhile in Bangladesh, the government has cut gas supplies to power plants due to lower electricity demand during winter, while maintaining steady gas flows to industries, a senior official at the state-run Petrobangla said. Soaring prices have led to cancelled orders from state-owned buyers Indian Oil Corp, Pakistan LNG and Bangladesh’s Rupantarita Prakritik Gas Co. “LNG prices have gone crazy […] For the last few tenders, we didn’t get any response from suppliers,” said Rafiqul Islam, general manager at Rupantarita Prakritik. Reliance Industries, operator of the biggest refining complex in western India, has almost halted LNG imports and switched to cheaper alternatives, industry sources said. Reliance did not respond to a Reuters request for comment. South Asia has been a critical growth market for LNG, with imports by India, Pakistan and Bangladesh climbing 8pc in 2020 to a record 50.48 billion cubic metres (BCM) despite the coronavirus pandemic’s hammering of the region’s economies, according to Refinitiv ship-tracking data. That growth rate was second only to China’s 11.5pc expansion in LNG imports in 2020. India could see two or three cargoes less in February and March than it normally would, said E.S. Ranganathan, head of marketing at India’s largest gas transmitter GAIL (India) Ltd. He however expects the impact on supplies to customers to be minimal. GAIL is due to receive 32 cargoes this year under its long-term deal with Gazprom compared to 24 last year, he added.

https://www.dawn.com/news/1601661[Edited]

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LNG sales take $12.6b hit despite record exports – Australia

Australia’s liquefied natural gas revenues slumped by an estimated $12.6 billion last year despite exports reaching a record as prices had a roller-coaster year that has become even more dramatic in early 2021.

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LNG export revenues in 2020 were probably about $36.1 billion, down more than a third from $48.7 billion in 2019, according to the latest calculations from consultancy EnergyQuest. Shipments reached a record high of 78 million tonnes, up by half a million tonnes from 2019, and could rise again this year with the restart of Shell’s floating Prelude plant and once repairs are completed at Chevron’s Gorgon in Western Australia, the firm said.

The figures suggest Australia was again the world’s biggest exporter of LNG in 2020, given rival Qatar has a nameplate capacity of 77 million tonnes but does not disclose actual export volumes. It described the action in global gas prices as “chaos” after crude oil slumped last March, bringing contract LNG prices down in its wake. Spot LNG prices fell to a record low of $US1.83 per MMBtu on oversupply and soft demand, but had surged more than eightfold by late December to a six-year high of $US15.10/MMBtu.

This month, Asian spot prices continued to rocket, touching a record high of $US32.49/MMBtu last week, amid a brutally cold winter in north Asia, production outages and bottlenecks in the Panama Canal. One cargo for immediate delivery was reportedly sold at $US37 as some importers were badly caught out by the squeeze.

‘False sense of security’ “The last few winters have been warmer than expected and with spot prices low buyers were probably lulled into a false sense of security,” EnergyQuest said. It noted that prices now appeared to have peaked, dropping last Friday to $US26.99/MMBtu for LNG to be delivered in February and late March cargoes were down at $US7.50/MMBtu. EnergyQuest said the wild price swings showed spot LNG prices were not suitable as a pricing comparison for east coast domestic gas prices. LNG “netback” prices – the domestic equivalent of the price after subtracting liquefaction and shipping costs – have swung between $2.29 a gigajoule in July and $8.73/GJ in January. The national competition regulator is citing a potential February netback price of $15.52/GJ, and the number could be even higher when updated later on Monday. Gas use in electricity generation dropped by 39 petajoules in 2020 from 2019. Replacing east coast gas with renewables to free up gas to export to China to replace coal is a win-win both environmentally and economically,” the firm said. Forty-four Australian LNG cargoes were delivered to China in December, up by six compared with the preceding month as well as December 2019, signalling no impact on LNG trade from the chilly economics relations between the countries. China remained by far the biggest buyer of Queensland LNG in December, at 1.4 million tonnes of its total Australian imports of 3 million tonnes, making it the biggest importer of Australian gas that month, overtaking Japan. China’s demand for LNG has been supported by its coldest winter in decades and a faster than expected recovery from the COVID-19 pandemic.

https://www.afr.com/companies/energy/lng-sales-take-12-6b-hit-despite-record-exports-20210118-p56uum [Edited]

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Italy’s ENI, trader Vitol place lowest offers for Pakistan LNG March tender

Italy‘s ENI and commodity trader Vitol Bahrain have offered the lowest prices to supply three liquefied natural gas (LNG) cargoes to Pakistan LNG Limited (PLL) for delivery in March,

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according to a document posted on the company website. ENI offered a cargo for delivery over March 9 to 10 at a percentage of the Brent crude oil futures price, known as a slope rate, of 22.2421%, according to the document. Vitol offered a slope rate of 17.8131% for a cargo for March 16 to 17 delivery and a slope rate of 17.1917% for a cargo for March 22 to 23 delivery. PLL is a government subsidiary that procures LNG from the international market. Other companies which had placed offers into the tender include PetroChina International, Qatar Petroleum Trading, POSCO International and BB Energy, the document stated.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/italys-eni-trader-vitol-place-lowest-offers-for-pakistan-lng-march-tender/80322887

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Egypt to reopen LNG plant in push to be major European supplier

Egypt is set to boost exports of liquefied natural gas by restarting one of its two production plants. The Damietta facility, which has been idled for eight years, will reopen by the end of February,

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Oil Minister Tarek El-Molla said in an interview Wednesday (Jan 27) with Dubai-based consultancy Gulf Intelligence. It will process about 4.5 MMT of LNG a year and raise the nation’s capacity to 12.5 MMT, he said. The return of Damietta and the country’s other plant — Idku, whose exports have picked up after dropping last year amid the coronavirus pandemic — will mark a revival of Egypt’s LNG push. While the Arab nation is a relative minnow — accounting for about 1% of global LNG supplies in 2019 — it will become one of the top 10 exporters if it reaches full capacity, according to data compiled by Bloomberg. Bookings Up “In 2020, the prices were very low and we were not able to export except for a few cargoes,” El-Molla said. “But starting from October 2020 until now, we have already booked all our volumes to be exported from the Idku plant up till the end of March.” Egypt plans to use its position on Europe’s doorstep to become a major supplier to the continent, which is transitioning away from dirtier fossil fuels such as oil and coal. Egypt will ship gas from its own giant field of Zohr, as well as some imported from Israel. LNG prices have recovered since late last year, thanks in part to the development and roll-out of virus vaccines. Prices spiked in Asia this month because of a severe winter. Damietta was idled in November 2012 amid a dispute over gas supplies between the government and Union Fenosa Gas, a joint venture between Spain’s Naturgy Energy Group SA and Italy’s Eni SpA. In the next two weeks, Egyptian Egyptian state firms EGPC and EGAS will offer onshore and offshore exploration blocks for bids from energy companies, El-Molla said.

Source: LNG Global

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Bulgaria takes 20% stake in Greek LNG terminal

Bulgaria’s state gas company Bulgartransgaz has finalised a deal to take 20% of Greek company Gastrade, which is developing a floating LNG facility off the city of Alexandroupolis, Gastrade said on Thursday (Jan 28).

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The deal is part of Bulgaria’s strategy to diversify and to decrease its dependence on Russian gas. The deal has been approved by Bulgaria’s competition regulator. The LNG terminal, which will have an estimated annual capacity of about 5.5 billion cubic metres (bcm), will aim to supply gas to southeastern Europe via the Interconnector Greece-Bulgaria (IGB) pipeline. Greek gas utility DEPA and GasLog also hold 20% stakes in the LNG facility which is expected to begin operating in 2023. (Reporting by Tsvetelia Tsolova; editing by Jason Neely)

Source: LNG Global

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Natural Gas / LNG Utilization

Spanish fleet achieves 30,000 NGVs

The natural gas vehicle fleet in Spain reached 30,000 units. The wide range of models available, the cost of fuel, the range of the vehicles and the refueling times similar to those of conventional fuels, are factors that drive

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natural gas to consolidate itself as the most chosen clean technology for professional transport of goods and passengers. Despite the pandemic, the fleet of LNG trucks grew by 27%, while the CNG buses increased by 17% in 2020: one in four buses registered last year uses natural gas as vehicle fuel. The development of natural gas in the transport of goods is expected to increase even more in 2021 thanks to the recent approval of the rule that allows driving with a class B license, with an antiquity of more than two years, natural gas vehicles destined for the transport of goods with a maximum mass authorized between 3,500 kg and 4,250 kg. The NGV refueling network also experienced significant growth, increasing its capillarity throughout the Spanish geography. The opening of 39 public access stations last year brings the country to a total of 163 refueling points. In 2020, the penetration of renewable gases (biomethane and hydrogen) in transport also continued. An important milestone was the launch of the first bus that runs on biomethane, created at pig farm in the city of Zaragoza. The use of this renewable fuel is a widespread practice in Europe, where 25% of natural gas stations already supply it. However, the development of this technology in Spain was hampered by the lack of a system of guarantees of origin. “It is urgent to start up a system of guarantees of origin in Spain this year, which allows the immediate decarbonization of a fleet of 30,000 vehicles that currently use natural gas, including long-distance heavy transport that, today, it does not have a real commercial offer of other eco-friendly alternatives,” said the Secretary General of Gasnam Eugenia Sillero. On the other hand, 2020 marks the beginning of the development of hydrogen as a fuel for road transport, with the registration of hydrogen-powered vehicles (12 cars), the construction of the first refueling station in Madrid and the tender for the first station in Barcelona that will supply the municipal buses.

http://www.ngvjournal.com/s1-news/c1-markets/spanish-fleet-achieves-30000-ngvs/

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CNG IVECO Daily performs urban cleaning service in Buenos Aires

More and more business are betting on vehicles powered by alternative fuels in Argentina. One of these cases is the company AMYM (ASHIRA S.A. and MARTIN Y MARTIN S.A) that recently acquired an IVECO Daily from the “Natural Power” 

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range for its daily operations. The company, which since 2014 provides the public urban cleaning service in some areas of the Autonomous City of Buenos Aires, incorporated this vehicle into its fleet with the aim of equipping it to store and transport 4,000 liters of rainwater that is collected through a modern system located in the company’s operating base. “At AMYM we work for a sustainable future and we take into account the importance of protecting the environment, saving and rationalizing resources, as well as preventing and correcting environmental risks. We know that this new CNG Daily and our collection system will allow us to meet our sustainability goals,” the company said. The new CNG IVECO Daily delivered to AMYM is prepared to carry out different washing services on public roads. Currently, it provides comprehensive on-site container washing and disinfection with a water-based solution and sodium hypochlorite. The “Natural Power” range vehicle offers reductions of: 50% in fuel costs, 90% of nitrogen dioxide, 99% of particulate matter, and up to 95% of carbon dioxide when using biomethane as fuel.

http://www.ngvjournal.com/s1-news/c3-vehicles/cng-powered-iveco-daily-performs-urban-cleaning-service-in-buenos-aires/

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Peru surpassed BonoGas program’s vehicle conversion goal in 2020

The BonoGas Vehicular program, which provides financing so that car owners can pay for the conversion to natural gas, has served 8,529 users as of December 2020, greatly exceeding the goal originally set by

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the Ministry of Energy and Mines (Minem). The initiative, financed with resources from the Social Energy Inclusion Fund (FISE), has been under implementation since September 2018 and, at the end of 2019, had reached a coverage of 5,477 users. Minem had foreseen that by the end of 2020, at least 7,256 vehicles should be converted to CNG. However, the program positively exceeded the established goal and, with the figure reached in 2020, it has obtained a growth of over 50% compared to the previous year, consolidating the program as a fundamental tool in the process of promoting the widespread use of natural gas in the country. The BonoGas program is implemented in seven regions: Piura, Lambayeque, La Libertad, Junín, Ica, Lima and Callao, and provides accessible credit, with an interest rate of less than 3% per year, so that owners of light vehicles (Category M1) can use CNG, achieving significant savings through a clean and economical fuel. This initiative is aimed at all vehicle owners and, as of 2020, a pilot program was started to extend its coverage to public transport, providing financing to transport companies to help them convert their vehicles to run on natural gas, replacing diesel. Conversions are carried out in conversion workshops authorized by the Ministry of Transportation and Communications (MTC), with a guarantee, fifth-generation CNG conversion equipment, all of which will result in improving vehicle performance. In 2021, the Minem aims to intensify the adoption of natural gas, and therefore BonoGas will continue to grow, in order to benefit a greater number of private users and entrepreneurs who carry out work by taxi or mobility services.

http://www.ngvjournal.com/s1-news/c1-markets/peru-surpassed-the-goal-of-vehicle-conversions-of-bonogas-program-in-2020/

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U.S. EPA approves Agility’s natural gas system for GM 6.0L V8 engine

Agility® Fuel Solutions (Agility) announced that it has received 2021 California Air Resources Board (CARB) and U.S. Environmental Protection Agency (EPA) certification for its low NOx

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CNG fuel system when installed on the General Motors 6.0L V8 engine. “These 2021 CARB and EPA certifications demonstrate our continued commitment to driving product development and staying at the forefront in the medium-duty vehicle segment,” said Seung Baik, President of Agility. “With the Agility 6.0L engine fuel system, customers have an attractive option to control fuel costs and meet fleet sustainability goals through the expansion of clean fuel vehicles in their fleet.” This new product from Agility enables vehicles such as the Freightliner Custom Chassis MT45 and MT55 walk-in vans, which are built to handle payloads of up to 23,000lbs., to be upfitted with Agility’s proprietary natural gas controls and fuel system to conform with the proposed 2024-2027 new CARB NOx emission regulations, as well as EPA’s standards issued under the Clean Air Act. Agility designed this 6.0L engine fuel system to simplify vehicle integration and significantly lower the upfront cost. When combined with Agility’s on-board CNG storage system, fleets are able to take advantage of low total cost of ownership (TCO) through fuel cost savings and reduced maintenance. When coupled with renewable natural gas, fleets can now achieve steep emissions reductions of up to 70% or more compared to conventional diesel – the equivalent of taking more than 66,000 passenger cars off the road.

http://www.ngvjournal.com/s1-news/c5-products/u-s-epa-approves-agilitys-natural-gas-fuel-system-for-gm-6-0l-v8-engine/

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Mexican industry expects to double number of natural gas stations in 2021

The Mexican Association of Natural Gas for Vehicles, CNG, LNG and Biogas (AMGNV) reported that the Energy Regulatory Commission (CRE) authorized new permits for NGV projects in the country, for

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which they estimate that in December 2021 the country will reach 107 public natural gas stations. 2020 had closed with 57 stations in operation and 50 new projects, of which 21 are in steps prior to the start of service, others that are in process, construction or permits before the authorities, to start commercial activities this year. The AMGNV also reported that there are currently more than 52,000 natural gas vehicles in Mexico. According to the president of the entity Andrés Bayona, the growth in the service offer will require an effort to multiply current CNG consumption in proportion. “In November 2020 we decided to develop a national plan to reactivate the sector including all players. We are in the analysis and prospecting stage before launching this ambitious project that seeks to double the NGV vehicle fleet in just two years,” added Bayona. On the other hand, the production and export of heavy natural gas vehicles also advanced in Mexico, despite the implications of COVID-19 and the growth rate of the heavy vehicle industry in the country. According to data from the National Institute of Statistics and Geography (Inegi), from January to December 2020, 619 cargo and passenger vehicles powered by natural gas were produced, while exports reached 608 units. According to the National Association of Bus, Truck and Tractor Producers (ANPACT), the export of heavy vehicles running on gas had a significant growth in December 2020, since 78 units were sent abroad in that month, while in December 2019, 55 were exported, which meant a growth of 41.8%. In this regard, Miguel Elizalde, executive president of ANPACT, commented that December is a month in which the industry usually presents declines in production. However, he highlighted the growth of the export of “green” vehicles throughout last year, despite the effects of the health crisis in the industry.

http://www.ngvjournal.com/s1-news/c1-markets/mexican-industry-expects-to-double-the-number-of-natural-gas-stations-in-2021/

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IP and Snam4Mobility open in Lazio the first of 26 planned NGV stations

The first of the 26 new natural gas refueling stations that Snam4Mobility will build within the network of IP distributors was opened in Rieti (in via Oreste di Fazio), Lazio under the framework agreement signed in 2018 by the two companies.

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To celebrate the occasion, the first refueling was carried out on a premium-level CNG car: an Audi A5 G-tron, combining performance and efficiency with environmental benefits. In addition to opening, another five facilities will be launched in Lazio by 2022, three of which are located in motorway refueling stations on the A1 (Mascherone East-Rome, Mascherone West-Rome, A1 Casilina Est Frosinone). This marks a significant implementation for NGV drivers in Rieti, since there was only one natural gas station in the region so far. The new opening also represents an important milestone for the growth of a natural gas distribution infrastructure for transport throughout Italy, and the two companies plan to promote increasingly sustainable mobility. IP’s strategy is to evolve and innovate the role of the fuel distribution network which, by ensuring a multi-energy and multi-service offer, has turned into a strategic asset in the transition towards sustainable mobility. Snam4Mobility, a company wholly owned by Snam, provides integrated services for sustainable “smart green” mobility using natural gas and biomethane. To strengthen the distribution network, Snam4Mobility operates stations offering CNG and bio-CNG for cars and LNG and bio-LNG for heavy transport. Snam’s 2020-2024 strategy plan envisages the construction of 150 new natural gas and biomethane refueling stations and of the first five hydrogen stations. In addition to the Rieti location and the others that will be opened in Lazio, the construction of new natural gas stations is planned in collaboration between Snam4Mobility and IP in Lombardy, Tuscany, Emilia-Romagna, Veneto, Abruzzo, Calabria, Marche, Piedmont, Puglia and Umbria.

http://www.ngvjournal.com/s1-news/c4-stations/ip-snam4mobility-open-in-lazio-the-first-of-26-cng-stations-under-agreement/[Edited]

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LNG as a Marine Fuel/Shipping

Four times more LNG bunkering operations in Spain during 2020

Despite the pandemic, the development of LNG bunkering in Spain grew exponentially in 2020: a total of 741 operations were carried out to supply LNG as marine fuel, in which a total of 122,058 m3 of natural gas were delivered.

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This means that the number of operations completed in 2019 (when there were 199 operations) was multiplied by four. 68.5% of the fuel bunkered was supplied to ferries, 31.1% to cruise ships and 0.4% to other types of vessels. In addition, operations gained greater flexibility and efficiency during 2020, more than 75% of the supplies made from tanker trucks were carried out simultaneously from several trucks, known as “multitruck to ship” operations, which allows to increase the flow of transfer and reduce refueling time. The number of Spanish ports that supply LNG to ships on a regular basis also increased from six to nine: operations were carried out in the ports of Algeciras, Almería, Barcelona, ​​Bilbao, Denia, Huelva, Malaga, Tenerife and Valencia. On the other hand, there were important regulatory changes last year which, added to Europe’s support for infrastructure development, will be determining factors to accelerate the incorporation of this sustainable maritime fuel. In October 2020, the new LNG bunkering tolls applicable to the national territory came into force and are the most competitive in Europe. The European Commission’s support for the LNGhive2 strategy was also announced for the construction of two new LNG bunker ships that will operate in the ports of Barcelona and Algeciras. Both milestones will allow Spain to continue consolidating its position as a benchmark for LNG bunkering in Europe.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/four-times-more-lng-bunkering-operations-performed-last-year-in-spain/

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World’s first LNG-hybrid tugboat equipped with Rolls-Royce engines

Rolls-Royce is supplying two mtu 16V 4000 M55RN gas engines to Sembcorp Marine Integrated Yard for the construction of the world’s first LNG-powered tug with hybrid system.

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The harbor tug will be operated in Singapore by Jurong Marine Services, a wholly owned subsidiary of Sembcorp Marine. It is the first of 12 tugs that Sembcorp Marine plans to design and build to replace the existing diesel-powered ones between now and 2025. “We are very happy to be part of Sembcorp Marine’s efforts in environmental protection and adopting new green technologies in their operations. The mtu marine gas engines are part of Rolls-Royce’s Green and High-Tech program. Without exhaust gas after-treatment, they emit no sulfur oxides only very small quantities of nitrogen oxide, and particulate mass is below the verification limit”, said Chew Xiang Yu, Head of Rolls-Royce Power Systems’ commercial marine business in Asia. This is the first LNG-hybrid tug to be powered by mtu gas engines worldwide. Designed by LMG Marin (Norway), part of the Sembcorp Marine group, to deliver 65T Bollard Pull (BP) with ABS Class, the tug is estimated to be completed in the later part of 2021. The main propulsion system of the tug comprises twin 16-cyclinder mtu Series 4000 gas units, which will provide a combined total power of 2,984 kilowatts at 1,600 RPM (revolutions per minute). The new gas engines are able to deliver performance comparable to a high-speed diesel engine. Equipped with multipoint fuel injection, dynamic engine control and enhanced turbocharging, the engines cater for dynamic acceleration capabilities, high power output and reduced emissions considerably below the current IMO III limits without the need for exhaust after-treatment. The LNG-hybrid propulsion system will be able to provide flexibility to cater for various operational modes and is able to switch between low emission LNG engines and zero-emission battery power.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/singapore-worlds-first-lng-hybrid-tugboat-equipped-with-rolls-royce-engines/

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Siem Aristotle: new LNG-fueled ship joins fleet for VW logistics missions

The Siem Aristotle, which has joined her sister ship as the world’s two largest Super-Eco, LNG-powered pure car truck carriers (PCTC), is on her maiden voyage from Emden, Germany to North America.

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The ship’s first bunkering commenced, taking on over 800MT of LNG. Nearly 4,800 cars were loaded, bound for Canada, the United States, and Mexico. Operating exclusively for Volkswagen Group, the Aristotle is the second installment in Siem Car Carriers’ (SCC) fleet that is revolutionizing how long-distance shipping is conducted. The vessel is 200 meters long, 38 meters wide with a maximum draft of 10 meters and her sailing speed of up to 19 nautical miles per hour. The Aristotle recently made port calls in Halifax, NS, Baltimore MD, and Vera Cruz, MX. It will be managed by SCC’s sister company – Siem Ship Management based in Gdynia, Poland. While in Emden, the experienced management and crew took all precautions necessary to ensure safe bunkering of LNG for the vessel. Fueled by LNG, it reduces CO2 emissions by up to 25%, NOx emissions by up to 30%, particulate matter by up to 60% and SOx emissions by up to 100%. Looking to the future, these vessels have sparked the necessary change toward climate-neutral shipping in the maritime industry.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/siem-aristotle-new-lng-fueled-pctc-joins-fleet-supporting-vw-logistics-missions/

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

Iberdrola builds Spain’s first public hydrogen filling station in Barcelona

Transports Metropolitans de Barcelona (TMB) chose Iberdrola to supply renewable hydrogen to its fleet of urban buses in 2021, with the aim of moving towards zero-emission mobility.

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To do this, the company will build and operate a hydrogen plant on a 5,000 m2 plot of land in Zona Franca industrial estate, leased to Zona Franca Consortium, which will be used by TMB buses and, potentially, by other fleets and industries in the area that adopt green hydrogen as fuel. The contract for this service will last 10 years. The new hydrogen service station will be the first of a public nature in Spain and will supply renewable fuel, produced by electrolysis. In this way, the creation of a green hydrogen hub in one of the main industrial areas of Catalonia and Spain will be promoted. In parallel, TMB bought eight state-of-the-art fuel cell buses, which will arrive in Barcelona in November 2021 and are expected to come into service in early 2022. The vehicles will be assigned to the Operational Business Center of Zona Franca and will refuel hydrogen at Iberdrola’s facility, with an estimated consumption of 160 kg per day. Consumption will increase in successive years as more buses of this technology join the fleet, 60 are expected. The adoption of hydrogen by TMB is supported by the European program JIVE 2 for the promotion of fuel cell and zero-emission vehicles, co-financed by the European Union. The project is being supported with the collaboration of the Barcelona Metropolitan Transport Authority (ATM).

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/iberdrola-will-build-spains-first-public-hydrogen-refueling-station-in-barcelona/

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Swedish largest logistics group successfully trials biomethane trucks

Low-emission fuels are becoming increasingly popular in the Nordic transport sector. Six Swedish logistic companies that are part of MaserFrakt (the biggest transportation company in

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Sweden) recently tested trucks that used bio-LNG as fuel as a way to reduce their emissions. The companies’ expectations of significantly lower emissions and a better operating environment were exceeded.

“According to the drivers, there was little difference between driving a diesel truck and a bio-LNG truck, which is very positive. The quieter engine sound is great as well because it means a better working environment for our drivers,” said Frida Jahncke, fuel manager, MaserFrakt. The companies also noted that as bio-LNG is a cost-effective fuel, its impact on overall costs can easily be enhanced by a sensible way of driving and the commitment of drivers to the change. After the tests, MaserFrakt said that they are looking forward to new investments in the NGV sector, so LNG trucks can show their potential in a wider operating environment.

The potential of natural gas in decreasing road transportation emissions has been noted by multiple logistic companies in the Nordics. For example, already more than 1,000 natural gas-fueled trucks have been approved for subsidies under the Klimatklivet and Drive bio-LNG climate investment programs in Sweden. LNG is recognized as a low-emission alternative fuel and trucks running on LNG and bio-LNG are considered environmentally friendly trucks under the new incentive program Klimatpremien. These incentive programs are rapidly increasing the number of LNG trucks on the road and boosting market conditions. Gasum aims to support the climate efforts of the Nordic countries by expanding the natural gas station network in Sweden, Finland and Norway. “We need to work together to reduce the climate impact of road transport and reach the ambitious goals set by the EU and the Swedish government. We’re glad that companies such as MaserFrakt are looking into low-emission fuel solutions and testing them so thoroughly,” added Mikael Antonsson, Director Traffic, Gasum Sweden.

http://www.ngvjournal.com/s1-news/c3-vehicles/swedish-largest-logistics-group-successfully-trials-biomethane-trucks/

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US EPA to release update on biofuel blending waivers

The U.S. Environmental Protection Agency was expected to release an update late on Tuesday (Jan 19) on pending waivers for oil refiners that would exempt them from U.S. biofuel blending obligations, EPA said in a notice.

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It was not immediately clear whether EPA would grant the pending waivers or reject them. The waivers have been a point of controversy, as ethanol producers say they hurt demand for their products, while oil refiners reject that claim and say they are necessary to keep small refiners afloat. The Trump administration recently announced a series of moves regarding U.S. biofuel blending laws. The agency earlier said it was requesting comment on a potential general waiver for refiners for the 2019 and 2020 compliance years and also was proposing a new rule that would remove or alter the labeling for retail gasoline that contains higher ethanol blends. The agency also said it was proposing to further extend the deadlines for oil refiners to prove compliance with blending requirements for both the 2019 and 2020 years. Last week EPA signaled it would not act on a slew of pending individual waiver requests submitted by refining facilities because of pending litigation. Under the U.S. Renewable Fuel Standard, refiners are required to blend billions of gallons of biofuels into their fuel mix, or buy credits from those that do. Refiners can apply for an exemption if they can prove the requirements would do them financial harm. (Reporting by Stephanie Kelly; editing by Richard Pullin)

https://energy.economictimes.indiatimes.com/news/oil-and-gas/us-epa-to-release-update-on-biofuel-blending-waivers/8036660

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First ‘Hydrogen Valley’ in Italy is underway, will boost green mobility

FNM, A2A and Snam have signed a memorandum of understanding to provide a further boost to the development of green hydrogen mobility in Lombardy. The agreement, signed by the Chairman of FNM Andrea Gibelli,

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the CEO of A2A Renato Mazzoncini and the CEO of Snam Marco Alverà, is aimed at examining a system for supplying and refueling hydrogen from renewable sources and the recovery of material to power the new trains of the Brescia-Iseo-Edolo line announced by FNM and Trenord in November. The plan, called H2iseO, will make it possible to create the first Italian “Hydrogen Valley” in Lombardy, particularly in Sebino and Valcamonica, equipping it with a fleet of hydrogen trains and related infrastructure, starting from 2023. FNM, A2A and Snam will collaborate in the creation of a production and refueling system for the new trains, which will be purchased by FNM and entrusted to Trenord and which will replace the current diesel-powered trains on the railway line managed by FERROVIENORD (a 100% FNM company). Subsequently, by 2025, the hydrogen solution will also be extended to local public transport, which counts about 40 vehicles managed in Valcamonica by FNMAutoservizi (a 100% FNM company), with the possibility of also opening up to freight logistics. The conversion of the railway section to hydrogen represents a first step towards the decarbonization of the entire local public transport system in the valley, offering opportunities also for private mobility, thanks to the versatility of the filling stations.

Renato Mazzoncini, CEO of A2A, commented: “Innovation and sustainability are the two keywords of this initiative and represent the values at the base of this important collaboration. Hydrogen will certainly play a fundamental role in promoting the energy transition to contribute to achieving the European target of zero CO2 emissions by 2050. The multi-business nature of our Group puts us in the position of being able to provide various solutions for the production of green hydrogen in the area related to the project, from hydroelectric plants to our assets related to the circular economy. This agreement is a further step in the path undertaken by A2A to develop the potential of this important resource”. Snam CEO, Marco Alverà, added: “With this agreement, we strengthen our commitment to invest in the decarbonization of the Italian rail transport through hydrogen. Trains represent the first application in which green hydrogen will become competitive. For this reason, in addition to preparing our network to transport growing quantities of hydrogen, in Snam’s 2020-2024 plan we have foreseen investments of approximately 150 million euros for the development of refueling systems dedicated to sustainable railway mobility, which will allow to convert the numerous sections of the Italian network which are not electrified. The trains will be one of the first steps in the creation of a national hydrogen value chain, which will also provide new opportunities for development and employment”.

http://www.ngvjournal.com/s1-news/c7-lng-h2-blends/first-italian-hydrogen-valley-under-development-to-boost-a-greener-transport/

 

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