NGS’ NG/LNG SNAPSHOT – Apr 1-15, 2023

National News Internatonal News


City Gas Distribution & Auto LPG

ONGC’s Coal Bed Methane block in Bokaro commissions new Gas Collecting Station

NEW DELHI- Oil and Natural Gas Corporation Limited (ONGC) has successfully commissioned a new Gas Collecting Station (GCS) in its Bokaro Coal Bed Methane block. It is the first gas collecting cum gas compression station in the Bokaro CBM (Coal Bed Methane) Block. This marks a major achievement in bringing ONGC on the CBM map of India as a bulk CBM producer.

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GCS-Bokaro is a major production installation in Patch-A of Bokaro CBM Block of ONGC-IOCL Joint Venture (Participating Interest: 80:20) with ONGC as the JV operator.

CBM Asset has executed a tie-in agreement with GAIL for pipeline connectivity with its Urja Ganga Pipeline for the sale of gas from GCS-Bokaro. In addition, the Asset has facilitated the signing of Gas Sales Agreements (GSAs) with five gas customers, realizing the highest-ever premium of USD 7.1 per MMBTU over Brent linked base crude oil price of ~USD 14 per MMBTU.

The GCS- Bokaro project, including its well site facilities and pipeline network was conceived by CBM Asset and executed by the consortium of M/s Tata Projects Limited and M/s Corrtech International Pvt. Ltd. under a contract awarded by OES, Delhi. The total cost of the project is around Rs.441 crore.

GCS-Bokaro is designed to process 1 MMSCMD of CBM gas and handle 750 m3/day of produced water. The installation is equipped with state-of-the-art technology, including gas and water-headers, gas separator, gas filters, Dresser-Rand Make Process Gas compressors, Molecular Sieve based Gas Dehydration Unit, flare system with remote ignition, produced water handling system, RO system, captive power generation system, instrument air system, cooling water and fire-fighting systems, among others.

Currently, 55 wells are connected with GCS-Bokaro and are flowing well fluids, including CBM gas and produced water, which have been used for the PGTR (Performance Guarantee Test Run) and commissioning of the installation. Unlike conventional gas wells, CBM wells require dewatering through artificial lift pumps before achieving sustained gas production.

The successful mammoth task of commissioning of GCS-Bokaro is a result of meticulous planning, round-the-clock operations, supervision, monitoring, and coordination among various teams from across diverse disciplines.

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Long-term benefits to CGDs unlikely

The Union Cabinet approved Kirit Parikh Committee’s recommendations for natural gas pricing. Going forward, natural gas produced from legacy fields will be priced at 10% of the Indian crude basket’s price, subject to dynamic floor and ceiling prices.

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The initial floor price has been set at $4/mmBtu and the initial ceiling price has been set at $6.5/mmBtu. The ceiling and floor prices are set to go up by 0.25/ mmBtu per year after two years.

In its earlier proposal, the Committee had suggested a fixed floor price of $4/mmBtu, while the initial ceiling price was proposed to be $6.5/mmBtu with an annual hike of $0.5/mmBtu. The approved pricing mechanism will have a negative impact on CGDs, as it will increase the gas cost to USD6.5/mmBtu as long as the Indian crude basket remains above USD65/mmBt.

The new mechanism is positive for ONGC/OINL as the floor price is higher than their cost of production, vis-à-vis selling gas at much lower realisation than the production cost for a long time in the older regime.

While the recommendations will help CGDs reduce their input costs in the near term, we do not expect margin accretion for CGDs as the benefit is expected to be passed on to consumers. The floor price of $4/mmBtu provides much needed respite to ONGC and OINL as they had to sell gas below the cost of production for quite a long time.

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UltraTech Cement deploys liquefied natural gas trucks at Pune cement terminal

India: UltraTech Cement says that it has made a second deployment of GreenLine liquefied natural gas (LNG)-powered cement trucks in its cement operations. Indo-Asian News Service has reported that the new trucks will operate from

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UltraTech Cement’s Pune cement terminal in Maharashtra. GreenLine says that its LNG trucks have 28% lower CO2 emissions than ordinary cement trucks, equating to reductions of 24t/yr per truck for UltraTech Cement.

The cement producer’s associate vice president Tanmay Pradhan said “We are dedicated to creating a sustainable future, and we are fully committed to collaborating with our partners and stakeholders to achieve our goal of a cleaner environment. Our association with GreenLine is a step forward in our ongoing efforts to decrease emissions, enhance energy efficiency, and promote sustainability.”

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Urja Ganga pipeline takes cheaper gas to hinterland

The ‘Urja Ganga’ pipeline has transported natural gas at lower prices to the hinterland, helping expand the adoption of the cleaner fuel, said official sources

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New Delhi: The ‘Urja Ganga’ pipeline, India’s most ambitious project taking environment-friendly gas to so-far untouched areas, has transported natural gas at lower prices to the hinterland, helping expand the adoption of the cleaner fuel, official sources said. Traditionally, natural gas was available for use as fuel to generate electricity, make fertiliser or turn into CNG and cooking gas was available only in the Western and Northern parts of the country, as pipelines taking the fuel from source to users were limited to these parts.

JHBDPL is now ready to supply gas to eastern states

The Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL), popularly called the Pradhan Mantri Urja Ganga pipeline, is now ready to supply gas to the eastern states of Bihar, Jharkhand, Odisha, and West Bengal, said official sources. This has helped pass on the benefit of reduction in CNG and piped cooking gas prices to consumers in these regions following the government’s decision to cut input natural gas prices.

GAIL was authorised to lay JHBDPL

Sources said that to carry the gas to the eastern states of India, state-owned gas utility GAIL (India) Ltd was authorised to lay JHBDPL. The government provided 40 percent viability gap funding amounting to Rs 5,176 crore for the execution of JHBDPL. Further, as a part of JHBDPL, GAIL is also laying the Barauni-Guwahati pipeline which shall act as a source for the Northeast Gas Grid pipeline being executed with 60 percent viability gap funding amounting to Rs 5,559 crore to connect all the Northeastern states to a natural gas source and supply gas to all parts of the country.

Urja Ganga pipeline leads to cheapest transportation of gas

The Pradhan Mantri Urja Ganga pipeline will connect all the geographical areas (more than 90) spread over the states of Uttar Pradesh, Bihar, Orissa, West Bengal, and further to the Northeastern Region of India.
With the completion of this project, the North Eastern/ Eastern part of India becomes an integral part of the gas-based economy with twin benefits of the cheapest transportation of gas through Urja Ganga and gas pricing reforms, they said.

Transportation tariff has been cut by about 50%

Under the unified tariff regulations recently notified by sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB), transportation tariff has been cut by about 50 percent to Rs 99.9 per million British thermal units for the eastern parts, helping make the clean fuel more affordable.

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Last week, the Cabinet Committee on Economic Affairs approved the revised domestic natural gas pricing guidelines for gas produced from nomination fields of state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd. The price of such natural gas shall be 10 percent of the monthly average of the Indian crude basket and shall be notified on a monthly basis. The price for gas produced from nomination fields of ONGC/OIL shall have a floor and a ceiling. This has resulted in a reduction in gas price from USD 8.57 per mmBtu to USD 6.5 per mmBtu.

The reforms will lead to a significant decrease in prices of piped cooking gas for households and compressed natural gas (CNG) for transport, they said adding the reduced prices shall also lower the fertiliser subsidy burden and help the domestic power sector.

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Piped gas network in India increased 10 times

Piped gas network in India increased by about 10 times during the incumbent government’s tenure, official data showed. From just 66 districts in 2013-14, coverage rose to 630 in 2022-23, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri shared on his Twitter timeline. In terms of connections,

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 it increased from 25.4 lakh to 103.93 lakh, an increase of over four times. The central government is promoting alternative fuels which inter aliainclude Liquified Natural Gas (LNG), Green Hydrogen, Compressed Bio-Gas(CBG), Ethanol, for reduction in green house gas emissions.Prime Minister Narendra Modi shared Puri’s tweet and wrote, “These are goodnumbers. I appreciate all those who worked hard over the years to make thiscoverage happen.”

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Natural Gas/ Pipelines/ Company News


GAIL India slashes fuel rates up to 12% in 16 cities

According to the latest pricing data, Bengaluru and Dakshina Kannada (a district in Karnataka) fell in the maximum price reduction bracket of ₹7 per unit for both piped natural gas (PNG) and compressed natural gas (CNG)

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India’s largest gas marking firm state-run GAIL on Sunday slashed fuel rates up to 12% across 16 locations, including poll-bound Karnataka, effecting the new gas pricing mechanism that made the bulk of domestically-produced natural gas cheaper, benefiting more than 10.50 million households and 5.30 million transport vehicles serviced through over 5,110 gas stations across the country.

The PNG rate fell by 11.96% to ₹51.50 per standard cubic meter (SCM) and CNG by 7.82% to ₹82.50 per kg (PTI Photo)

According to the latest pricing data, Bengaluru and Dakshina Kannada (a district in Karnataka) fell in the maximum price reduction bracket of ₹7 per unit for both piped natural gas (PNG) and compressed natural gas (CNG).

Effectively, the PNG rate fell by 11.96% to ₹51.50 per standard cubic meter (SCM) and CNG by 7.82% to ₹82.50 per kg. While CNG is used as a transport fuel, PNG is mainly used for cooking.

Likewise, price cuts also took place in other areas where GAIL has city gas distribution networks. GAIL Gas Ltd, a wholly-owned subsidiary of GAIL India, on Sunday confirmed the reduction in its domestic PNG prices by ₹7 per SCM in Bengaluru and Dakshin Kannada and ₹6 per SCM in all its other geographical areas.

“The new effective domestic PNG Prices is ₹52.50 per SCM in Dewas, Meerut, Sonipat, Taj Trapezium Zone, Raisen, Mirzapur, Dhanbad, Adityapur and Rourkela,” it said in a statement.

Similarly, CNG prices are also reduced by ₹7 per kg in Sonipat and ₹6 per kg in the rest of the geographical areas, it said.

New CNG rates are ₹85 per kg for Meerut and Sonipat; ₹92 per Kg for Dewas, Taj Trapezium Zone and Dehradun; ₹87 per kg for Mirzapur, ₹91 per kg for Raisen, Dhanbad, Adityapur, Puri and Rourkela, it added.

Other gas utilities, serving different areas, have also slashed rates of the two fuels. Indraprastha Gas Ltd (IGL), which supplies gas in various cities, including Delhi and National Capital Region (NCR), slashed the CNG rate from ₹79.56 per kg to ₹73.59 (8.11%) in New Delhi and PNG price from ₹53.59 per SCM to ₹48.59 (9.33%) in the Capital from Sunday.

The reduction in PNG and CNG rates is because of natural gas pricing reforms announced by the central government on Thursday, which is based on recommendations of the Kirit Parikh committee, said a government official and an industry expert requesting anonymity. The panel submitted its recommendations on November 30, 2022.

“It was known well in advance that the natural gas pricing mechanism would change from April which would bring relief to gas consumers across the country. However, it also coincides with the Karnataka assembly polls and could benefit the ruling party. But, it should be seen in the larger context of stubborn inflation. Any reduction in energy price would proportionately reduce inflationary pressure on the economy,” said the expert.

Although India’s retail inflation eased marginally to 6.44% in February compared to January’s three-month high of 6.52%, it is still higher than the Reserve Bank of India’s (RBI) upper tolerance limit of 6%.

The Kirit Parikh committee was set up to contain an astronomical jump in domestically-produced natural gas prices because it was based on a formula that was linked to global benchmarks that surged because of geo-political reasons. “Had the previous pricing regime continued, prices would have likely risen,” CRISIL Ratings said in a statement after the Union cabinet tweaked the formula based on the panel’s suggestion. The formula was tweaked as gas prices had surged over 378% at $8.57 per unit in 2023 from the level of $1.79 per unit in 2021.

According to Naveen Vaidyanathan, director at CRISIL Ratings, if the government wouldn’t have changed the formula, gas prices could have risen further to $10-11 per unit for the first half of FY24, “necessitating a price increase, in turn, for city gas distributors to maintain profitability”.

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MNGL reduces PNG, CNG prices in Pune and Pimpri Chinchwad

In the wake of the Union Cabinet announcing a new price mechanism decision for the bulk of domestically-produced natural gas by state-run explorers resulting into reduction of costs of piped natural gas (PNG) and compressed natural gas (CNG) for automobiles,

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the Pune – based City Gas Distribution (CGD) Company, Maharashtra Natural Gas Limited (MNGL), has reduced the selling price of domestic Piped Natural Gas (PNG) by Rs 5.70 per SCM and the selling price of compressed natural gas (CNG) by Rs. 6.0 per Kg in Pune city including Pimpri-Chinchwad and adjoining areas of Chakan, Talegaon and Hinjewadi with effect from the midnight of 7 – 8 April, 2023.

Accordingly, MNGL has reduced retail price of PNG to Rs. 51.30/- per SCM from an earlier price of Rs 57.0/- per SCM and the retail price of CNG to Rs. 86.0 per KG from Rs 92.0 per KG in MNGL’s geographical areas.

After the above revision, MNGL’s CNG offers very attractive savings of around 50% and 29% as compared to petrol and diesel respectively at current price levels in Pune city for passenger car segment and around 29% for Autorickshaws.

MNGL is effecting this Natural Gas price reduction on account of a downward revision in the purchase cost of domestic natural gas. MNGL has decided to pass on the benefit of reduced gas costs to the customers.

MNGL’s Domestic PNG is around 17 % cheaper than domestic LPG cylinder prices after reduction of price revision.

Maharashtra Natural Gas Limited (MNGL) is a joint venture of two Maharatna PSUs; GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL) with equity participation from Government of Maharashtra through MIDC and Indraprastha Gas Limited (IGL). It is a premier City Gas Distribution Company authorised in the Geographical Areas of Pune city, Pimpri-Chinchwad including adjoining areas of Hinjewadi, Chakan & Talegaon, Valsad (except area already authorized), Dhule, Nashik District and Sindhudurg District, Buldana, Nanded and Parbhani districts in Maharashtra ,Ramanagara District in Karnataka and Nizamabad, Adilabad, Nirmal, Mancherial, Kumuram Bheem Asifabad and Kamareddy districts in Telangana.

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Torrent Gas reduces CNG, PNG prices across seven Indian states

Torrent Gas reduced CNG prices by Rs 6 per kg and PNG prices by Rs 5 per SCM in Pune and Punjab. In Uttar Pradesh and Rajasthan, the prices of CNG has been reduced between Rs 6 and Rs 8.25 per kg, while prices of domestic PNG has been reduced by Rs 4-5 per SCM.

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Torrent Gas reduced the prices of Compressed Natural Gas (CNG) by Rs 6-Rs 8.25 per kilogram and domestic Piped Natural Gas (PNG) by Rs 4-Rs 5 per Standard Cubic Meter across seven states, effective from Saturday evening.

This reduction in prices of CNG and PNG comes on the back of the Union Cabinet’s decision to revise the domestic natural gas pricing guidelines, the company stated in an official statement. Torrent Gas, sells CNG and PNG in 34 districts across seven states, including Gujarat, Tamil Nadu, Telangana, Uttar Pradesh, Maharashtra, Rajasthan and Punjab and Union Territory of Puducherry.

Torrent Gas reduced CNG prices by Rs 6 per kg and PNG prices by Rs 5 per SCM in Pune and Punjab. In Uttar Pradesh and Rajasthan, the prices of CNG has been reduced between Rs 6 and Rs 8.25 per kg, while prices of domestic PNG has been reduced by Rs 4-5 per SCM.

The company which operates 17 CNG stations in Junagadh, reduced CNG prices by Rs 6 per kg and domestic PNG prices by Rs 4 per SCM. Jinal Mehta, Director, Torrent Gas said, “The revised domestic natural gas pricing guidelines enabling us to significantly reduce the CNG and Domestic PNG prices. The revised gas pricing guidelines will help reduce the volatility in CNG and Domestic PNG prices in the country and the long-term roadmap will encourage large scale adoption of CNG and Domestic PNG across the country.”

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Policy Matters/ Gas Pricing/ Others

Unified tariffs in the natural gas sector to come into effect April 1, 2023

Prime Minister Narenda Modi today hailed the decision of implementation of levelized Unified Tariffs in the Natural Gas Sector stating it a noteworthy reform in energy and gas sector.

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On the line of One Nation, One Grid and One Tariff the levelized Unified Tariffs in the Natural Gas Sector will come into effect from tomorrow.

The Natural Gas Regulatory Board (PNGRB) has already issued the notification in this regard and it will be implemented in the entire gas network of the country which has been categorized into three tariff zones. These zones are based on their distance from the gas source.

The Regulatory Board has said that the levelized Unified tariff will be 73.93 rupees per MBTU (Metric Million British Thermal Unit).

According to PNGRB the new initiative will provide a major boost to economic development of all regions of the country.

The PNGRB remarked that the consumers located in far-flung areas will benefit.  Currently, in the country an additive tariff is applicable.

Minister for Petroleum and Natural Gas Hardeep Singh Puri has said that the new tariff regime will facilitate the development of gas markets and vision of the government to increase gas utilization in the country.

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Cabinet approves revised domestic natural gas pricing guidelines

The new guidelines are intended to ensure stable pricing regime for domestic gas consumers while at the same time providing adequate protection to producers from adverse market fluctuation with incentives for enhancing production.

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The Cabinet Committee on Economic Affairs, chaired by  Minister Shri Narendra Modi, has approved the revised domestic natural gas pricing guidelines for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where Production Sharing Contract (PSC) provides for Government’s approval of prices. The price of such natural gas shall be 10% of the monthly average of Indian Crude Basket and shall be notified on a monthly basis. For the gas produced by ONGC & OIL from their nomination blocks, the Administered Price  Mechanism (APM) price shall be subject to a floor and a ceiling. Gas produced from new wells or well interventions in the nomination fields of ONGC & OIL, would be allowed a premium of 20% over the APM price.   A detailed notification is being separately issued.

The new guidelines are intended to ensure stable pricing regime for domestic gas consumers while at the same time providing adequate protection to producers from adverse market fluctuation with incentives for enhancing production.

Government has targeted to increase the share of natural gas in primary energy mix in India from current 6.5% to 15% by 2030. The reforms shall help expand the consumption of natural gas and will contribute to achievement of target of emission reduction and net zero.

These reforms are a continuation of the various initiatives taken by Government of India to protect the interests of consumers by reducing the impact of increase in international gas prices on gas prices in India by significantly increasing the domestic gas allocation to City Gas Distribution sector.

The reforms will lead to significant decrease in prices of Piped Natural Gas (PNG) for households and Compressed Natural Gas (CNG) for transport. The reduced prices shall also lower the fertilizer subsidy burden and help the domestic power sector. With the provision of a floor in gas prices as well as provision for 20% premium for new wells, this reform will incentivize ONGC and OIL to make additional long term investments in the upstream sector leading to greater production of natural gas and consequent reduction in import dependence of fossil fuels. The revised pricing guidelines will also promote lower carbon footprint through the growth of gas-based economy.

Currently, the domestic gas prices are determined as per the new Domestic Gas Pricing Guidelines, 2014 which were approved by Government in 2014. The 2014 pricing guidelines provided for declaration for domestic gas prices for a 6 month period based on the volume weighted prices prevailing at four gas trading hubs – Henry Hub, Albena, National Balancing Point (UK), and Russia for a period of 12 months and a time lag of a quarter.

As the earlier guidelines based on 4 gas hubs had a significant time lag and very high volatility, the need for this rationalization and reform was felt. The revised guidelines make prices linked to crude, which is a practice now followed in most industry contracts, is more relevant to our consumption basket and has deeper liquidity in global trading markets, on a real time basis. With the changes now approved, data of Indian Crude basket price from the previous month would form the basis for APM gas price determination.

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IGL reduces CNG price in Delhi-NCR

New Delhi: Indraprastha Gas Limited (IGL), which operates CNG stations across the Delhi-NCR, has decided to decrease the prices of CNG in the region from Sunday. Customers will now have to pay up to Rs 73.59 for a kg of CNG in Delhi, while it will cost around Rs 77.20 per kg in Noida, Greater Noida and Ghaziabad.

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It will be the costliest in Gurugram, with a kg of CNG priced at Rs 82.62 from Sunday. Earlier, IGL on December 17, 2022, decided to increase the prices of CNG in the region. The price of CNG in Delhi raised to Rs 79.56 per kg, while it was around Rs. 82.12 per kg in Noida, Greater Noida and Ghaziabad. Earlier in May, it was hiked by two rupees, while on October 8 it became costlier by three rupees.

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LNG Use / LNG Development and Shipping

Adani’s Rs 6,000 crore LNG terminal receives first-ever shipment at Dhamra

The new LNG import facility at Dhamra, situated on the eastern coast of India, has been launched by Adani Group and TotalEnergies. The first shipment of liquefied natural gas was received by the facility from the Qatari ship ‘Milaha Ras Laffan’ on April 1, which contained 2.6 trillion British thermal units of natural gas in its frozen form. 

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The commissioning and testing operations will take around 45 days, and commercial operations are anticipated to begin after that. The terminal will produce natural gas for various purposes, including steel making, fertilizer production, and conversion to CNG and cooking gas, and will play a crucial role in fulfilling Prime Minister Narendra Modi’s target of increasing natural gas usage in the country’s energy mix to 15 per cent by 2030 from the current 6.3 per cent.

Dhamra is India’s only LNG import terminal on the eastern coast and the second on the entire coast, with the other five terminals located on the western coast. Adani Total Pvt Ltd, which holds a 50-50 stake in the project, will use the received cargo for safety checks and system testing before starting commercial operations. The facility is expected to import around 2.2-2.3 million tonnes of LNG in the first year, followed by a gradual ramp-up to full capacity.

The Milaha Ras Laffan, loaded at Qatargas on March 21, has a capacity of 135,000 cubic meters and was provided with a test cargo by TotalEnergies from its portfolio. The terminal is a tolling facility, with state-owned GAIL (India) Ltd and Indian Oil Corporation (IOC) reserving capacity to import LNG at the terminal.

The imported LNG will be reconverted into gas before being transported to refineries and fertilizer units. The gas will also be converted into CNG for use in vehicles and piped into household kitchens for cooking purposes. The terminal has a 20-year take-or-pay agreement to provide regasification services to IOC for 3 million tonnes per annum of LNG and 1.5 million tonnes to GAIL.

The partnership between Adani and TotalEnergies, Adani Total Pvt Ltd, has built and delivered the project over the last four years. Despite several challenges, such as the pandemic, cyclones, difficult soil conditions, supply chain disruptions, and the highly volatile LNG market due to the conflict in Europe, the JV has overcome all the obstacles and delivered the project successfully. The partnership combines Adani’s world-class infrastructure and port development capabilities with TotalEnergies’ expertise as the third-largest global LNG player.

Dhamra will be the primary supply point on the recently completed Urja Ganga pipeline developed by GAIL, providing gas access to over 35 per cent of India’s population, covering about 20 per cent of the country’s land mass. Refineries, fertilizer plants, industries, and city gas networks in the hinterland will be the major consumers of gas from Dhamra LNG.

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A greener fuel alternative: LNG to transform the trucking industry in India

Governments across the world have recognised that reducing carbon emissions is essential to curtail global warming. Globally, Logistic contributes to 14%-15% of carbon emissions and in that the contribution of heavy-duty trucking is about 90%. 

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Hence, there has been the need for alternative means of green energy that will guard the future of the planet by reducing dependence on fossil fuels in transportation sector. Thus, sustainable mobility has been a buzz word for some time now. While there has been a lot of research on the best technology that can help the industry turn a greener leaf, there emerged one answer, which is Liquefied Natural Gas or LNG. 

Why LNG?

One of the main causes of hazardous emissions is heavy industrialization, which includes the logistics and transportation sector, ergo, heavy duty trucking. The trucking industry is one of the most significant polluters, producing up to 450 million TPA of CO2, as well as significant noise, particulate matter, and pollutants each year, clogging cities and endangering public health. Therefore, the whole idea of LNG trucks is poised to upend the sector and hasten the shift to “green transportation.” To put the figures in perspective, compared to diesel trucks, it emits up to 28% less carbon dioxide (CO2) and up to 30% less noise. It can also raise an organization’s scores on the environmental social governance meter.

When appropriately utilised with the trained drivers, LNG truck has the potential to reduce particulate material (PPM) by up to 91%.  It not only creates sizeable reduction in the quantities of sulphur and nitrogen oxides, and other substances that are detrimental to the earth’s atmosphere but also does not release soot, dust, or other particles. LNG has a lower carbon content than other types of fossil fuels. It is clear, odourless, and colourless. 

To combat the rapidly rising climate change, LNG is an immediate, versatile, mature, and scalable solution to make the long-haul trucking industry sustainable. It’s a cleaner fuel and greener fuel, which reduces sulphur oxide (SOX) up to 100% and nitrogen oxide (NOX) up to 59%. 

International success of LNG Trucks

LNG Trucks has seen a great deal of success in the Chinese and European markets. The EU’s alternative fuel plan is prioritised by using an established technology for each necessity. While there are other practical and established options for short-distance transportation in metropolitan areas, LNG is the only practical, mature, viable and established option for long-distance travel.

According to data from the European Alternative Fuels Observatory, it is estimated that the LNG-compatible fleet would increase at least by 3% annually. The International Energy Agency predicts that China would lead the world in the adoption of zero- and low-emission trucks, including LNG vehicles. According to sources, new regulations are also anticipated to aid in the replacement of up to 1 million heavy-duty trucks there. 

Policy push

India is upbeat when it comes to LNG’s potential to lessen the consequences of climate change as it adheres to the Paris Agreement. India wants to transition to a gas-based economy by 2030, increasing gas’s current share of the energy mix from 6% to 15%. LNG is a vital cog to fulfil the plan. 

Additionally, there are existing LNG terminal infrastructure in place to handle import demands. India intends to establish 1,000 LNG retail outlets over the next five years, which would cost US$1.3 billion. It demonstrates how the country is placing more of an emphasis on alternative fuels, which is promoting the development of LNG models. 

The question of the gas economy

Heavy trucking is unquestionably a crucial pillar of growth, linking many infrastructure sectors together. As climate change is a significant concern, adopting LNG will significantly lessen the sector’s negative consequences.

The government needs to take a number of initiatives as competitive pricing to increase LNG consumption as a transportation fuel and in the mining industry in order to develop a gas-based economy. 

Currently, India is pushing to include more of this energy source in its energy mix, which will cause a change in the gas markets. GOI should also consider taking steps to curtail sharp movement in prices that have been witnessed due to geopolitical developments. This coupled with fast tracking of LNG infrastructure, stable LNG prices and incentives & subsidies for quick adoption of technology will also increase economic competitiveness. All in one, India is well-placed to pioneer the green-trucking revolution.

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Electric Mobility/ Hydrogen/ Bio- Methane

Govt sanctions Rs 800 cr for installing 7,432 EV fast charging stations

The minister further said the move will create a robust charging infrastructure network in India that is more accessible to the public The Ministry of Heavy Industries on Tuesday said Rs 800 crore under FAME India Scheme Phase II has been sanctioned to three PSU oil marketing companies (OMC) for setting up 7,432 public fast charging EV stations across the country.

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The amount has been sanctioned under FAME Scheme Phase II.

The ministry has released Rs 560 crore or 70 per cent of the total amount to three OMCs — Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) — as the first installment for the installation and commissioning of upstream infrastructure and charging equipment of EV public charging stations at respective retail outlets in the country.

The installation is expected to be completed by March 2024, the ministry said in a statement.

At present, there are 6,586 charging stations across the country.

“The addition of the new 7,432 public charging stations will be a significant push to EV charging ecosystem,” the release said, and added the charging capacity would be used for charging electric 2-wheelers, 4-wheelers, light commercial vehicles, and mini-buses.

Mahendra Nath Pandey, Minister of Heavy Industries said the move will give a boost to the electric vehicle ecosystem in India and encourage more people to switch to cleaner modes of transportation.

He also added that the government is committed to promoting sustainable green mobility solutions and reducing the country’s carbon emissions, working towards Prime Minister Narendra Modi’s Net Zero mission.

The minister further said the move will create a robust charging infrastructure network in India that is more accessible to the public.,under%20FAME%20Scheme%20Phase%20II.

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Natural Gas / Transnational Pipelines/ Others

U.S. natural gas production to hit record high in 2023: EIA

HOUSTON, April 11 (Xinhua) — U.S. natural gas production is forecast to hit a record high in 2023, according to a report issued by the U.S. Energy Information Administration (EIA) on Tuesday.

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The country’s dry gas production will increase to 100.87 billion cubic feet per day (bcfd) in 2023 and 101.58 bcfd in 2024 from a record 98.11 bcfd in 2022, said the EIA’s April Short Term Energy Outlook.

The report also forecast that with inventories remaining above the five-year average in 2023, natural gas prices will average less than 3.00 U.S. dollars per million British thermal units (MMBtu) for 2023, a more than 50 percent drop from last year.

The natural gas spot price at Henry Hub averaged 5.45 dollars per MMBtu in November 2022, and declined to average 2.31 dollars per MMBtu in March, said the report.

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Indonesia Energy Sees Natural Gas Potential in ‘World Class’ Sumatra Block

 Jakarta-based exploration and production company Indonesia Energy Corp. Ltd. (IEC) sees potential gas production starting next year from its Kruh-28 well on the island of Sumatra.

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“We believe that the Kruh Block is a world class asset and, in order to maximize future production capability, we have commenced on our program of conducting seismic operations across the entire Kruh Block so that we can positively leverage what we have learned from our recent discoveries, including our gas discovery, and look to determine the best locations to start our continuous drilling campaign,” President Frank Ingriselli said.

The onshore block spans some 63,000 acres on Indonesia’s Sumatra, the country’s most prolific oil and gas region. The company is also exploring on the island of Java, in the Citarum Block. 

Oil production from the Kruh-21 and Kruh-28 wells is expected in the third quarter of 2023. If a commercial amount of gas is tested in the Kruh-28 well, a development plan would be submitted to the government of Indonesia.

Fracture stimulation of the oil-producing Kruh-27 well has been completed, with 80,000 pounds of proppants having been injected into the sand producing reservoir with the goal of increasing production productivity.

IEC sees seismic exploratory and interpretive work concluding by the end of this year. IEC plans on drilling a total of 18 new wells at Kruh Block, four of which have already been completed, by the end of 2026. 

The company is also in the process of negotiating a five-year extension of the contract covering the Kruh Block with the government which would extend the term of IEC’s operatorship until 2035.

Indonesia is known as an LNG exporting nation. Its liquefied natural gas exports account for about 4% of world LNG trade, according to the U.S. Energy Information Administration (EIA). Indonesia’s proved natural gas reserves totaled 49.7 TCF in 2021, according to the EIA. These reserves are the third largest in the Asia-Pacific region, after China and Australia.

Last year, BP plc extended its production contract in Indonesia’s Tangguh block to 2050, as the firm works to boost its LNG production from the region. The expansion of Tangguh LNG and ramp-up of Eni SpA’s Coral-Sul Floating LNG project in Mozambique are the only two anticipated additions to global LNG volumes outside of the United States by early 2024.

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Qatar receives ratings boost as it makes the most of surging gas demand

Fitch Ratings has revised its outlook on Qatar’s AA- credit rating from stable to positive, citing the expected strong growth in the country’s gas exports in the coming years.

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Qatar is currently investing heavily in a massive expansion of production capacity at its giant North Field, just as demand for natural gas is surging in key markets around the world.

The ratings agency said on March 28 that it expected the first phase of this expansion to start making a full impact on revenues from 2026, with a second phase kicking in the following year. The higher volumes from the North Field should help to bring down the hydrocarbon price the government needs to balance its budget – known as the fiscal breakeven point – to less than $50 a barrel, from $57-58 a barrel at the moment.

That should leave the government in a very comfortable position, even if oil prices do fall as expected in the coming years.

The decision by Fitch echoes one by Moody’s Investors Service in November, just before the country was about to host the football World Cup.

That tournament brought some unwanted attention to the country’s human rights record. A group of union federations recently said that what progress was made before and during the World Cup is now being diluted.

From the perspective of the Qatari exchequer, the end of the World Cup has meant there is no longer the same pressure to invest heavily in transport, hotels, sports stadiums and other related infrastructure. And while Fitch said the government was “likely to find new spending outlays aimed at diversifying the economy”, it still expects Qatar to run a budget surpluses under its long-term oil price forecast of $53 a barrel.

The expansion of output at the North Field will boost Qatar Energy’s liquefied natural gas (LNG) production capacity from 77 million tonnes a year at the moment to 110 million tonnes by 2025 and 126 million tonnes by 2027. The project is expected to cost some $12.5 billion, which will be paid for, in part at least, by bond issuances.

Nonetheless, Fitch points out that Qatar’s overall debt to GDP ratio continues to fall, having dropped from a peak of 85% in 2020 to around 45% this year and an anticipated 42% next year. With a strong flow of revenues, the government is opting to repay debts as they mature, rather than roll them over. Some $7.5 billion is due for repayment this year and a further $4.8 billion in 2024.

The end of the World Cup has contributed to a slowdown in the local economy – Fitch reckons Qatar’s gross domestic product (GDP) will expand by just 0.7% this year, compared to 4.8% in 2022, the year the tournament was held.

However, it points to the positive impact of a lessening of geopolitical tensions in the region, following the end of the 2017-21 boycott of the country by its neighbours Bahrain, Saudi Arabia and the UAE. Fitch also notes that “Qatar’s importance in global energy markets is being magnified by Europe’s push to reduce its dependence on Russian gas” and that Doha has also successfully positioned itself as a mediator between Western powers and the regimes in Iran and Afghanistan.

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Gas found in Black Sea worth over $500 bln: Minister

Natural gas Türkiye discovered in the Black Sea is worth more than $500 billion and is large enough to supply all homes in the country with gas for 35 years, Energy and Natural Resources Minister Fatih Dönmez has said.

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The total gas reserves found in the Black Sea is 710 billion cubic meters, Dönmez told private broadcaster CNN Türk, adding that this is the one of largest gas found in the sea ever.

When the industry is added, this gas find will meet the country’s need for 15 to 20 years, according to the minister.

The natural gas from the Sakarya Field will arrive at the Filyos Natural Gas Processing Facility on April 20 with a ceremony to be attended by President Recep Tayyip Erdoğan, Dönmez said. The gas then will start to be pumped to the national grid in the following one to two weeks. “The gas [found in the Black Sea] will be put in use in May. [Pipeline company] Botaş will be in charge of distributing the gas.”

The minister also said that Erdoğan will make an important announcement on April 20 but declined to provide further details.

The production cost of the Black Sea natural gas will be more favorable than importing gas, he noted, adding that the total cost of the project will be unveiled when it is finalized.

 Production at the gas field will be around 10 million cubic meters per day initially, and the output will reach its peak within two to three years and climb to 40 million cubic meters per day in 2025, Dönmez said.

Türkiye imports 99 percent of the natural gas it consumes, and the country’s total imports amounted to around $350 billion last year, with energy’s share in total imports standing at 30 percent, according to the minister.

Türkiye is signing necessary deals for gas supplies from other countries, Dönmez said. “With the local gas production, we will be in a better position.”

He recalled that Türkiye gets 30 percent of natural gas from Russia, noting that during the government of Turgut Özal, this was 100 percent.

“In the 2000s, Türkiye added Azerbaijan and Iran to its list of natural gas suppliers.”

Botaş founded a company jointly with Azeri Socar, and the new entity will sell natural gas to Europe, Dönmez said.

“We already said we wanted to become an energy hub. The Balkan nations and Europe demand gas both from us and Azerbaijan.”

The minister also said that the work to complete Türkiye’s first nuclear power plant, Akkuyu, is on track. The delivery of the first fresh nuclear fuel will take place on April 27, according to the minister.

“Electricity generation at the power plant will commence one year after the arrival of the fuel. When construction of four units is completed, Akkuyu will meet 10 percent of Türkiye’s energy needs,” Dönmez said.

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Natural Gas / LNG Utilization

Anglo American Deploys New Dual-Fueled LNG Fleet To Cut Shipping Emissions

Anglo American, a global mining company headquartered in London, has received five dual-fueled liquefied natural gas (LNG) vessels, with the remaining five scheduled to be delivered between May 2023 and the first half of 2024.

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The company expects these vessels to reduce carbon emissions by 35% compared to similar-sized ships using traditional marine fuels for the same voyage. The dual-fueled vessels were developed to operate low-carbon ocean freight that can carry metal and mineral products from Anglo American’s mines to customers in an environmentally friendly way.

The company’s Singapore-flagged vessel Ubuntu Harmony, equipped to run on LNG and marine fuel oil, completed its first full voyage in March from South Africa to China.

By 2030, the company aims to cut carbon emissions for its shipping activities by 30% and to become carbon neutral for its controlled ocean freight by 2040.

Furthermore, bio-LNG, a biofuel that has the same chemical composition as conventional LNG but is produced from biogas rather than natural gas, presents deployment opportunities during the transition to LNG, according to Peter Lye, global head of shipping at Anglo American.

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Turkey : Turkey pledges to supply natural gas to Hungary

Ankara, March 30 (IANS) Turkey is ready to supply natural gas to Hungary through the Trans-Anatolian Natural Gas Pipeline Project (TANAP), Turkish President Recep Tayyip Erdogan said.

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“As of now, we are ready to provide all kinds of support with Azerbaijan regarding the delivery of natural gas to Hungary through TANAP,” Erdogan said at a joint press conference with visiting Hungarian President Katalin Novak, Xinhua news agency reported.

TANAP was commissioned in 2018 as the central part of the Europe-proposed Southern Gas Corridor that connects a major gas field in Azerbaijan with European markets.

The trade volume between Turkey and Hungary hit $3.5 billion in 2022, with the goal of reaching $6 billion in the future, according to Erdogan.

For her part, Novak said energy was one of the topics of her meeting with Erdogan in the Turkish capital of Ankara.

Turkiye has “vital importance” in Hungary’s energy security, she said, stressing that her country attaches importance to the Turkish Stream, a natural gas pipeline running from Russia to Turkey via the Black seabed.

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LNG tankers heading to Britain, Belgium, the Netherlands and Germany

The following liquefied natural gas (LNG) tankers are expected to arrive in Britain, Belgium, the Netherlands and Germany in the coming weeks. Estimated arrival dates, often revised by port authorities and AIS Live ship-tracking data on Refinitiv Eikon, are updated below. Some tankers heading for Belgium and

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Britain may be loading at the terminal. Those expected to load are indicated with an (L). Those likely to perform ship-to-ship transfers are indicated with (STS). Tankers that have docked are indicated with (A). Floating storage and regasification unit (FSRU) terminals are added to the table when they near deployment. As of Dec. 27 2022, this includes the Eemshaven terminal in the Netherlands, the Wilhelmshaven, Brunsbuettel and Lubmin terminals in Germany.

For the Reuters LNG guide, click here: LNG TANKER CAPACITY in EXPECTED ARRIVAL FROM PORT cubic metres BRITAIN Alicante Knutsen 170,000 March 27 (A) United States Dragon Rasheeda 261,000 March 28 (A) Qatar South Hook Gaslog Windsor 176,000 March 29 (A) United States Isle of Grain Flex Artemis 173,000 March 30 United States South Hook LNG Abalamabie 172,000 March 31 United States Dragon Arctic Lady 145,000 April 1 Norway Isle of Grain Tenergy 179,000 April 2 United States Dragon Orion Sun April 3 United 171,000 States South Hook Al Dafna 262,000 April 7 Qatar Isle of Grain BELGIUM LNG Dubhe 174,000 March 30 (L) (A) Egypt Zeebrugge Boris Vilitsky 170,000 March 31 Russia Zeebrugge Asia Integrity 155,000 March 31 N/A Zeebrugge Clean Horizon 160,000 March 31 (L) N/A Zeebrugge Vladimir Vize 172,000 April 1 Russia Zeebrugge Yari April 1 N/A 156,000 (L) Zeebrugge Al Bahiya 206,000 April 2 Qatar Zeebrugge SK Audace 180,000 April 4 Nigeria Zeebrugge Al Huwaila 213,000 April 9 Qatar Zeebrugge NETHERLANDS Grace Freesia 171,000 March 29 (A) United States Gate LNG Endeavour 174,000 March 31 United States Gate Barcelona Knutsen 170,000 April 1 United States Eemshaven Global Star 170,000 April 2 United States Gate Attalos 174,000 April 3 United States Gate Hoegh Galleon 170,000 April 11 United States Eemshaven GERMANY BW Tulip 171,000 March 28 (A) United States Lubmin Isabella 170,000 March 29 (A) United States Wilhelmshaven Sources: Ports, AIS Live ship tracking, Refinitiv Eikon data. (^) Partial unload (*) Arrival date estimated based on flows data.

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Global LNG Development

Hungarian Envoy Seals Energy Deals in Moscow

Hungary’s top diplomat secured a deal to expand gas flows from Russia and renewed a financing agreement on its nuclear power plant, underscoring Budapest’s schism with the rest of the European Union over Russia’s invasion of Ukraine.

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Foreign Minister Peter Szijjarto sealed the deals as Prime Minister Viktor Orban moves to boost his country’s dependence on Russian oil, gas and nuclear supplies, while fellow EU members strive to break free.

Hungary will now have the option to receive more natural gas from Russia on top of an existing long-term agreement ahead of the winter storage season. Szijjarto also agreed to further secure crude supplies through the Druzba pipeline via Ukraine.

“Russia has always been a reliable energy supplier, in the future we are also ready to ensure reliable supplies to Hungary,” Putin’s deputy Prime Minister for Energy, Alexander Novak, said in a statement after the two met on Tuesday. He thanked Szijjarto and Orban for “constructive cooperation.”

Hungary has taken steps to diversify its energy sources, accessing liquefied natural gas from sea terminals in Croatia and Poland. Budapest has also been in talks with Azerbaijan for electricity and gas exports.

But relations with Moscow remain paramount in the energy sphere. After visiting Belarus in February — another rare trip to a Moscow ally under western sanctions — Szijjarto twinned his meeting with Novak by also speaking with Alexey Likhachev, the chief executive officer of state nuclear corporation Rosatom.

Novak and Likhachev are both under sanctions from Ukraine and some of its allies, although not by the EU. Orban has criticized EU sanctions against Russia, saying they don’t work, despite economic data showing they have dented the ability of President Vladimir Putin’s government to build weapons and intensify his war in Ukraine.

Novak is crucial to Hungary’s continued efforts to import gas and oil from Russia after Orban clinched an exemption from an EU ban on most crude imports by threatening to block it.

“As long as energy supply is a physical issue and not a matter of political or ideological like or dislike, Russia and cooperation with Russia will remain crucial for Hungary’s energy security,” Szijjarto said in a statement.

Rosatom is overseeing the expansion of Hungary’s Paks nuclear power plant, a deal that has drawn criticism for giving Putin influence over an EU country’s energy supply.

The deal Szijjarto clinched on Tuesday includes financing for the project that will “guarantee its implementation,” he said, adding that the agreement would need approval from the EU Commission.

The “preparatory works are underway to construct auxiliary buildings” at Paks 2, Rosatom said in a Telegram post after the meeting. Rosatom is continuing the process of obtaining licenses for certain types of works, it added.

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ZIM and Shell complete the first LNG bunkering under 10-year LNG supply agreement

ZIM Integrated Shipping Services Ltd. and Shell International Petroleum Company Limited (Shell), have announced the successful bunkering of the ZIM SAMMY OFER container vessel with liquefied natural gas (LNG). This vessel was bunkered at Kingston Freeport Terminal Limited (KFTL) on March 26, 2023.

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This was a milestone operation for a number of reasons:

It is the first LNG bunkering operation in Jamaican waters

The ZIM SAMMY OFER is the first in a series of ten 15,000 TEU LNG dual-fuel containerships which ZIM plans to deploy on their ZCP trade line.

For these vessels, ZIM recently signed a ten-year marine LNG sales and purchase agreement with Shell.

The Maritime Authority of Jamaica has supported Shell and ZIM in enabling LNG bunkering in Jamaica. “We are proud to be able offer and promote LNG bunkering in Jamaica” said Rear Admiral Peter Brady, Director-General at Maritime Authority of Jamaica. “Decarbonization of the shipping industry is critical and, being readily available today, LNG is a key part of the transition to cleaner marine fuels. This offering will not only grow local businesses but also encourage companies to embrace sustainable solutions”.

David Arbel, ZIM EVP COO, stated, “The safe and efficient LNG bunkering of the ZIM SAMMY OFER is a great achievement for all parties involved. This is the first vessel in our growing LNG-powered fleet that will enable ZIM to be more carbon and cost efficient, thereby improving our competitive position, particularly on the strategic Asia to USEC trade, and allowing customers to reduce their carbon footprint.

Equipped with ME-GI (M-type, Electronically Controlled Gas Injection) two-stroke engines, ZIM’s LNG dual-fueled vessels have negligible methane slip of around 0.2%, a testament of ZIM’s commitment to decarbonize its fleet.

Tahir Faruqui, General Manager, Head of Downstream LNG at Shell said: “This landmark bunking safely completed in collaboration with ZIM and the Maritime Authority of Jamaica expands our LNG bunkering network to the Caribbeans. With every new bunkering location added to our footprint, we are demonstrating LNG as the lowest-carbon fuel available at scale today, enabling the shipping sector to start decarbonizing. Kingston, Jamaica is a new LNG bunkering location for Shell, expanding its global LNG bunkering network to 16 locations, across 11 countries. To date, Shell has already achieved over 1,000 safe ship-to-ship bunkering operations to its customers”.

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LNG Dual-fuel Chemical Tanker Launched for Fairfield

Japan’s Fukuoka Shipbuilding has launched a new chemical tanker for U.S. based shipping company Fairfield Chemical Carriers (FCC).

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The newly built Fairchem Pioneer is FCC’s first liquefied natural gas (LNG) dual-fuel stainless steel chemical tanker. According to FCC, the vessel’s LNG propulsion technology reduces carbon dioxide emissions by up to 25% compared to traditional marine fuels.

The ship is the first of two 26,300-dwt chemical tankers FCC ordered from Fukuoka Shipbuilding, with options for four additional vessels.

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Baker Hughes Wins Contract To Supply LNG Trains for Sempra’s Port Arthur LNG Project

 Energy technology company Baker Hughes won the contract to supply key liquefaction equipment for Sempra Infrastructure’s Port Arthur LNG project in Jefferson County, Texas.

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The Houston-based company said that Bechtel, the primary contractor on the recently sanctioned liquefied natural gas (LNG) project, awarded it the contract to supply two main refrigerant compressors.

The contract includes the supply of four Frame 7 turbines paired with eight centrifugal compressors across 2 LNG trains—for a nameplate capacity of 13 mtpa—as well as two electric-motor-driven compressors for the plant’s boosting services.

“We are delighted to be working with Bechtel and Sempra Infrastructure to supply critical equipment for this innovative LNG project,” said Baker Hughes chairman and CEO Lorenzo Simonelli.

“Baker Hughes has been committed to LNG for over 30 years, and today’s announcement builds on our track record of delivering high-availability and reliable LNG technology, with low total cost of operations, further enabling increased exports of LNG from the US Gulf Coast to meet global energy needs,” he added.

Baker Hughes said that the manufacturing of the compressors, as well as the testing of the trains, and the packaging of the turbine/compressor train will take place at its facilities in Italy.

The expected commercial operation dates for Port Arthur LNG Phase 1 Train 1 and Train 2 are 2027 and 2028, respectively.

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Shell Eastern Trading and Mexico Pacific Limited (MPL) said March 27 they had signed a second sales and purchase agreement (SPA) covering an additional 1.1mn metric tons/year of offtake from MPL’s Saguaro Energia LNG export facility, planned for Puerto Libertad, Sonora.

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Under the SPA, Shell will purchase LNG on a free-on-board basis for 20 years from the third train of the three train, 14.1mn mt/yr first phase of Saguaro Energia. In July 2022, Shell signed its first SPA with MPL, covering 2.6mn mt/yr from the first two trains.

“We are delighted Shell has chosen to grow with us, building upon their initial 2.6mn mt/yr commitment from train 1 and train 2, to also underpin more than 20% of train 3 capacity,” MPL CEO Ivan Van der Walt said. “Our project will provide Asia with low-cost Permian gas, avoiding the Panama Canal to ensure a shorter shipping distance to Asia, to achieve lower transportation emissions and landed pricing versus the US Gulf Coast.”

He said MPL is working toward delivering a final investment decision on the first two trains at Saguaro Energia while closing out contracting across the “significant commercial momentum” already in place for the third train.

“LNG is an increasingly important pillar of global energy security,” said Steve Hill, Shell’s executive vice president of energy marketing. “Investment in liquefaction projects is needed to avoid a supply-demand gap that is expected to emerge in the late 2020s.”

In February, MPL signed two SPAs with US major ExxonMobil covering 2mn mt/yr of offtake from the first two trains, with an option to purchase an additional 1mn mt/yr from the third train.

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First LNG dual-fuel chemical carrier nears completion in Japan

Fairfield Chemical Carriers and Fukuoka Shipbuilding have extended their partnership with what is believed to be the first LNG dual-fuel chemical carrier built in Japan

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Fukuoka Shipbuilding has built six 19,000-dwt to 25,000-dwt chemical carriers for Fairfield Japan, and is now constructing its first LNG dual-fuel chemical carrier for the operator.

The vessel is part of a project conceived by the Development Bank of Japan Inc (DBJ) and ClassNK under the ‘Zero-Emission Accelerating Ship Finance Program’, which aims to evaluate and finance ships based on their decarbonisation, environmentally friendly performance, and general innovation.

Under the programme, ClassNK has evaluated the LNG dual-fuel chemical tanker Fairchem Pioneer, currently being constructed by Fukuoka Shipbuilding for Fairfield Japan, with financing provided by DBJ.

Fukuoka Shipbuilding has shipbuilding yards in Fukuoka City and Nagasaki City and specialises in building chemical tankers.

Fairfield Japan is a Japanese subsidiary of Fairfield Chemical Carriers, a US operator that focuses on chemical tankers and has been working on decarbonisation initiatives.

The LNG dual-fuel engine of Fairchem Pioneer is expected to significantly reduce carbon dioxide emissions, and the ship is expected to meet the Energy Efficiency Design Index (EEDI) Phase 3 requirements.

According to Fukuoka Shipbuilding of Japan, the use of LNG fuel will also reduce nitrogen oxide (NOx), sulphur oxide (SOx), and particulate matter emissions, meeting NOx Tier III and SOx regulations.

The ship’s operator also plans to address environmental soundness during its recycling by developing and maintaining an Inventory of Hazardous Materials required by the Ship Recycling Convention.

The ship was given an A rating by ClassNK, recognising its high level of decarbonisation compared with similar vessels. This rating indicates that adequate environment-related investments have been made.

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World’s first GHG certification programme for LNG launched

In late March, MiQ announced its new certification to cover all GHGs (Greenhouse Gases) from LNG supply chain including methane, carbon dioxide and nitrous oxide. LNG buyers will be able to compare exporters and choose lower emissions cargoes.

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MiQ launched the world’s first certification program that enables a complete assessment of all greenhouse gas (GHG) emissions from the liquified natural gas (LNG) supply chain. As the company points out, importers haven’t had a transparent or credible way to quantify the level of emissions from purchases, despite rocketing global demand for LNG.

MiQ claims that its new framework tracks 100% of methane, carbon dioxide and nitrous oxide emissions from every segment of the LNG supply chain – including production, gathering and boosting, processing, pipeline, liquefaction, shipping, and regasification.

In addition, the GHG Standard gives importers the power to compare exporters using one common framework. Ultimately, the company claims that buyers can reduce their Scope 3 emissions while driving pricing signals needed to incentivize investments from producers and exporters

We are witnessing a significant spike in demand for LNG, especially in Europe and Asia, elevating concerns about the lack of transparency on emissions. Our comprehensive GHG framework signifies significant progress toward reducing unnecessary upstream and Scope 1 and 2 LNG emissions to near zero, as we transition to a renewable energy future.

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Bangladesh Plans 3 More LNG Terminals To Meet Growing Gas Demand

DHAKA, (UrduPoint / Pakistan Point News – 27th Mar, 2023 ) –:State-owned Petrobangla (Bangladesh OilGas & Mineral Corporation) has moved to set up three more liquefied natural gas (LNG) terminals in addition to the existing two currently being operated to regasify imported gas.

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The proposed three new LNG terminals, which will be set up in Payra in the south-western corner of Bangladesh and Moheshkhali and Matarbari in the southeastern region of the country, would have about 3,000 million cubic feet of gas per day (MMcf/d) regasification capacity, Petrobangla Chairman Zanendra Nath Sarker was quoted by Bangladeshi leading private news agency UNB as saying in a report on Monday.

Sarker said that of the three LNG terminals to be set up, two will be floating while the other will be a land-based terminal.

According to official sources, all three LNG terminals will be set up on the basis of unsolicited offers received from local and foreign companies.

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JFE engineering wins EPCC contract for Taiwan LNG import terminal

Tokyo-based JFE Engineering Corporation has won a $230mn engineering, procurement, construction, and commissioning (EPCC) contract for an LNG receiving terminal being developed by Taiwan state-owned utility CPC, the Japanese company said on March 28.

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The project involves the construction of an LNG receiving facility 1.2 km offshore at the LNG import terminal currently under construction by CPC in Kwun Tong Industrial Zone, Taoyuan City. 

JFE said that the work is expected to be completed by May 2025. According to CPC’s website, the terminal is expected to be commissioned by December 2025.

The 3mn metric tons/year capacity terminal will be CPC’s third LNG import terminal. The company at present operates the Taichung and Yongan LNG terminals.

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LNG as a Marine Fuel/Shipping

Hudong-Zhonghua hands over 3rd LNG carrier to COSCO and CNPC

Chinese shipbuilder Hudong-Zhonghua Shipbuilding has delivered the third liquefied natural gas (LNG) carrier to compatriot COSCO Shipping Lines and energy firm China National Petroleum Corporation (CNPC).

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As informed, the delivery ceremony took place at CSSC Changxing Shipbuilding yard on 24 March. The firm held a naming ceremony for the ship at the same time, and the 174,000-cbm vessel was named Kun Lun.

The company noted that this is the first large-scale LNG carrier delivered in China this year.

During the construction of “Kunlun”, the company used digitalisation, promoting new processes and new construction methods, which significantly shortened the construction period. The LNG carrier was delivered one month ahead of schedule.

The ship was independently developed and designed by the company. It has a total length of 295 meters, a molded width of 45 meters, a molded depth of 26.25 meters, and a speed of 19.5 knots. It is classed by Lloyd’s Register (LR) and China Classification Society (CCS).

The LNG carrier is equipped with advanced environmental protection devices to meet the International Maritime Organisation (IMO) requirements.

As its sister vessels, Shaolin and Wudang, the unit features WinGD X-DF dual-fuel engines.

To remind, the first LNG carrier Shaolin was delivered in October, and the second unit Wudang in December last year.

To remind, COSCO and CNPC placed an initial order for three LNG carriers at Hudong–Zhonghua back in 2020. In June 2021, CNPC ordered three more 174,000 cbm carriers at the same shipyard.

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5 vessels to depart Nigeria for Kuwait, Europe with 344,316t

Five vessels from Onne Port have secured berthing space in four ports to deliver 344,316 tonnes of gas fuel in United Kingdom, Belgium, Spain and Kuwait. The cargoes will be delivered between the third week of April and May, 2023 amid high storage and low price of liquefied natural gas which have cripple smooth delivery. Findings revealed that the export is just 28.8 per cent of the average monthly cargoes delivery by

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Nigeria in the global market. According to data from Gas Infrastructure in Europe, more than 41 liquefied natural gas terminals in Portugal, Spain, France and other countries had been stored up to 80 per cent to avert shortage this winter. It is feared that this may hamper Nigeria’s plans to achieve 16.2 million tonnes of gas export this year.

Before now, Nigeria has 10 per cent share of the global LNG export market, however, by 2021, the country’s market share had fallen to six per cent. Data by the Nigerian Ports Authority (NPA)’s shipping position revealed that the vessels which left Onne Port in the February and March, 2023 are expected to deliver their cargoes in ports of Huelva, Mina Saud, GBIOG and Zeebrugge. The shipping data listed the vessels to include: SK Audace with 68,914 tonnes; LNG Ondo, 66,234 tonnes; LNG Adamawa, 63,168 tonnes; 66,000 tonnes; Seri Balqis, 80,000 tonnes and LNG Cross River.

It was further revealed that LNG Ondo is expected to deliver its cargoes in May 2923 at Huelva Port in Spain, while the current position of LNG Adamawa is at South Africa en route to the port of Mina Saud, Kuwait, its new date of arrival on April, 21 2023. Also, LNG Cross River has left Onne Port to the port of Huelva, Spain as SK Audace’s Port of Destination is GBIOG in United Kingdom, while Seri Balqis is expected in the third week of April in the port of Zeebrugge, Belgium. In 2022, data from the National Bureau of Statistics (NBS), revealed that the country earnings from natural gas on a quarterly basis was N655.94 billion in first quarter; N735.59 billion in second quarter; N757.36 billion in third quarter and N704.87 billion in fourth quarter, making the total earnings from natural gas exports to N2.85 trillion as against the N1.95 trillion earnings in 2021 when the country generated N455.66 billion in Q1 2021; N431.53 billion in Q2 2021, N487.47 billion in Q3 2021 and N573.84 billion in Q4 2021. Giving a breakdown of gas exports, NBS noted that in the first quarter of 2022, the country earned N655.9 billion and N93.7 billion from the export of natural gas and other petroleum gases, respectively. It would be recalled that in 2022, the Group General Manager, National Petroleum Investment Management Services, Bala Wunti, rallied investors at the Global Energy Transition Summit for the development of Nigeria’s gas sector. He explained that the country had abundant gas resources that could attract significant investors. The general manager stressed that with Nigeria, having six quadrillion BTU of energy production annually, making it the second highest in Africa, noting that the country’s energy resources can power the city of New York for the next 120 years. Wunti told the investors that Nigeria has a geographical vintage posi-tion with easy access to the Atlantic, Pacific and Indian Ocean giving it unhindered access to the most critical global trade routes and markets. He said: “If we must get into that energy transition, then it means every source of energy matters and in the context of what we are doing, hydro carbon plays a major role and so it is important that we try to connect the market which provides the platform to unlock the energy source.” In his presentation titled, “What does the future hold for Natural Gas?” Wunti noted that with attention shifting from fossil fuel to more cleaner energy sources, time has come to begin to increase investments that would unlock these energy sources. The energy industry is currently facing increasing demands to reducing greenhouse gas emissions so as to achieve the goals and commitments of Paris Accord and COP 26. Nigeria is pursuing energy transition in order to promote economic growth and is gradually investing in gas so as to reduce carbon emissions whilst continuing to exploit hydrocarbon resources.

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

Portugal to launch Europe’s first auction for piped hydrogen

LISBON, March 27 (Reuters) – Portugal will launch a pioneering auction in the second half of this year for rights to sell hydrogen for injection into the national gas grid, which some see as a key step in kickstarting Europe’s fledgling hydrogen market.

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Under the terms of the auction, energy group Galp Energia will contract to buy hydrogen mixed with natural gas from producers and resell it to meet demand, a system designed to boost investment in production by giving suppliers a guaranteed buyer.

That would remove the need for dozens of bilateral contracts between suppliers and consumers.

The first auction for transporting hydrogen to consumers in Europe via pipeline is being watched to see if it can resolve one of the sector’s stickiest conundrums – balancing producers’ need for a demand pickup with clients’ desire for supply and price guarantees before making costly technology switches.

Investors have pledged about $76 billion to build green hydrogen plants, according to the Hydrogen Council and McKinsey & Company, but just $6 billion had reached the final investment decision stage as of May 2022.

The auction is designed to foster the development of hydrogen technology in Portugal, “ensuring that there is a firm offtaker at a time when private demand is still at an early stage”, Environment Minister Duarte Cordeiro’s office said in written responses to Reuters.

The Portugal solution could be an effective way of resolving the “chicken and egg” situation of waiting for demand to justify investment, said Dilara Caglayan, senior research associate for hydrogen at Aurora Energy Research.

Blending hydrogen into the existing gas network could help generate demand to get the market up and running, she said.

Hydrogen auctions in other countries are targeting heavy industry. Germany is planning a “double auction” in which hydrogen or its derivatives are bought cheaply on the world market and sold to the EU’s highest bidder.

Portugal’s largest gas distributor Floene has since October been testing whether its polyethylene pipelines for gas can also carry hydrogen, providing 80 industrial and residential customers in Seixal, near Lisbon, with gas blended with 2% of hydrogen. Portugal eventually plans to lift that share to 20%.

Floene CEO Gabriel Sousa said the tests prove polyethylene is suitable to receive “100% hydrogen without any gas leaks”.

($1 = 0.9290 euros) (Reporting by Sergio Goncalves and Charlie Devereux)

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Wärtsilä will adapt Engine to tri-fuel methanol for Celebrity Cruises

Wärtsilä has agreed to adapt its engines to make Celebrity Cruises’ future newbuild cruise ship one of the first cruise ships to be delivered methanol-ready in anticipation of later adoption of the emerging alternative fuel. Wartsila reports it will be the company’s second project to adapt one of its existing engine designs for methanol-fueled operation. With this step, Royal Caribbean Group’s Celebrity Cruises continues the company’s efforts to evolve its operations toward the long-term goal of net zero emissions by 2050.

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Wärtsilä has invested heavily into researching viable future carbon-neutral fuels for the marine industry, and methanol has emerged as one of the most promising candidates. This will be the second methanol-fueled engine conversion that we have undertaken, and the first with the Wärtsilä 46F engine. We share a commitment to decarbonize shipping, and the transparent partnership between our three companies for this newbuild project represents an important milestone along the path to achieving this goal,” commented Håkan Agnevall, President and CEO of Wärtsilä.

According to today’s announcement, Wärtsilä is working in close collaboration with Royal Caribbean Group owners of Celebrity Cruises and the Chantiers de l’Atlantique shipyard which is building the Edge class cruise ships operated by Celebrity. The first of the ships, Celebrity Edge, was introduced in 2018 and followed by an identical sister ship Celebrity Apex delivered in 2020. The first two ships of the class are 1,004 feet long and 129,500 gross tons. Two additional ships, Celebrity Beyond introduced in 2022 and Celebrity Ascent due to enter service late in 2023 are enlarged versions at 1,073 feet in length and 140,600 gross tons. Royal Caribbean Group has an agreement with the shipyard to build an additional Edge class ship for delivery in 2025, which according to the company’s annual report is contingent upon the completion of conditions precedent and financing.

“With the launch of our Edge Series of ships in 2018, we set ambitious sustainability goals to make these ships the most energy efficient large vessels at sea,” said Celebrity Cruises President and CEO Lisa Lutoff-Perlo. “Working collaboratively with our expert partners, we have continued to develop new technologies and achieve breakthroughs with each subsequent ship.”

Wärtsilä reports it received the order in January 2023 and will convert two Wärtsilä 46F engines to allow tri-fuel flexibility using either conventional heavy fuel or marine gas as well as the ability to convert to methanol. The engine manufacturer says the project will give the new ship unmatched fuel flexibility and has the potential to advance the use of alternative fuels in the cruise sector. 

It will be the first time that the 46F engine has been adapted for methanol. Wärtsilä will convert the engines at the yard, prior to commissioning. The full scope of the order includes two 8-cylinder Wärtsilä 46F engines capable of operating with methanol fuel, two 12-cylinder Wärtsilä 46F engines, and one Wärtsilä 32 engine.

“As we innovate our ship design and offerings, we’re also focused on equally evolving the fuel and technology landscape that powers them,” said Jason Liberty, president and CEO of Royal Caribbean Group. “By incorporating tri-fueled engines, we are ensuring that as alternative, low-carbon-based solutions become more viable, our ships will be ready to adapt and drive the industry forward to a more sustainable and net zero emissions future.”

The addition of methanol marks the next step for Royal Caribbean Group. In August 2023, they will introduce the Silver Nova which is being built by Meyer Werft in Germany as the group’s first LNG-fueled cruise ship. In addition to dual-fuel engines, the 54,700 gross ton ship and a sistership will feature fuel cells and batteries designed to support hotel operations while in port. Royal Caribbean International will take delivery on its first LNG-fueled cruise ship, which will also be the world’s largest and the first of three ships, the Icon of the Seas, late in 2023. The company is also building an LNG-fueled version of its Oasis Class, Utopia of the Seas, due for delivery in the second quarter of 2024.

Royal Caribbean follows its joint venture company TUI Cruises which is building the first methanol-ready cruise ship at Meyer Turku. The first block of the ship due to launch in 2024 was recently placed into the drydock to begin assembly. Norwegian Cruise Line also reported that two of its cruise ships to be introduced in 2027 and 2028 will be adapted for methanol while the company is also working with MAN on projects to explore retrofitting existing engines for methanol operations. Disney Cruise Line also plans to introduce a methanol-fueled cruise ship in 2025.

Adapting the ships for methanol is not without its complications. Maersk commented when it started its methanol dual-fueled containerships that the engines were costing about 15 percent more. Meyer Werft which is converting the Global Dream cruise ship for methanol for Disney said it is an involved project including converting the engines, introducing additional fuel tanks, new piping and controls, and additional safety elements. The expectation is that green methanol will become readily available giving the ships a means to operate climate neutral in the future.


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Azerbaijan can become regional leader in terms of supplying low-carbon hydrogen

BAKU, Azerbaijan, April 9. Owning a combination of factors necessary for the development of the green hydrogen industry, Azerbaijan is set to become a regional leader and a reliable supplier to the EU, Vladimir Rogov, Managing Director and Partner of the Boston Consulting Group (BCG), told Trend.

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He pointed out that support of the green energy projects under the REPowerEU plan and the growing interest of investors create favorable conditions for the rapid development of the renewable energy sector (RES) and the hydrogen sector of the country’s economy.

“To reach net zero by 2050, low-carbon hydrogen is a novel option to decarbonize industries with hard-to-abate emissions, such as basic chemicals, aviation, steel production, shipping, and long-haul road transportation. While gray hydrogen is generated from natural gas or methane, low-carbon hydrogen is produced through electrolysis powered by renewable energy sources such as wind or solar, or fossil fuels paired with carbon capture and storage,” added Rogov.

The expert noted that in 2021, demand for hydrogen was around 94 million tons, most of it in the form of gray hydrogen, which is produced from methane or natural gas and therefore isn’t environmentally friendly.

“But by 2050, demand for low-carbon hydrogen will approach 350 million tons per annum (mtpa) under a 2°C global warming scenario or 530 mtpa under a 1.5°C scenario. Governments and companies will have to invest approximately $6 trillion to $12 trillion between 2025 and 2050 to produce and transport enough low-carbon hydrogen to meet demand, according to BCG’s calculations. Although investment opportunities will extend across the hydrogen value chain—from feedstock development and generation to hydrogen transportation and storage—$300 billion to $700 billion of that amount must be deployed soon, from 2025 to 2030,” said Rogov.

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