NGS’ NG/LNG SNAPSHOT Apr 1-15, 2024
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
SPIC plans transition to 100% natural gas for urea production
Chennai: Agri-nutrient and fertiliser company Southern Petrochemical Industries Corporation Ltd on Friday said they would use Natural Gas as the raw material in the production of urea to reduce raw material costs and increase profitability. According to company officials, the recent completion of the cross-country pipeline by Indian Oil Corporation Ltd (IOCL) and the supply of domestic gas by Oil and Natural Gas Corporation (ONGC) through the pipeline presented an opportunity for SPIC Ltd to transition to clean fuel sources. Through the pipeline, SPIC would be able to consume domestic gas and re-gasified liquified natural gas (RLNG) in the production of urea.
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Through this initiative, SPIC has become one of the anchor customers to benefit from the cross country pipeline, a company statement here said.”We are pleased to announce the successful transition to 100 percent natural gas for urea production. This shift aligns with our commitment to environmental sustainability and underscores our responsiveness to government policies promoting cleaner fuel sources,” said SPIC Ltd Chairman Ashwin Muthiah.
“We remain committed to implementing carbon-neutral initiatives in our raw material usage and manufacturing processes, thus contributing to global climate action goals,” he said. By achieving complete reliance on Natural Gas, SPIC demonstrates its commitment to reduce the environmental impact of its operations and advancing sustainability goals, the company said.
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Natural Gas/ Pipelines/ Company News
Gas pipeline explodes in Greater Noida’s Surajpur, none injured
The gas pipeline, which was passing outside the Site-B factory, started leaking on Wednesday morning. Two workers of the gas pipeline company were fixing the fault, when the pipeline caught fire
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A gas pipeline allegedly exploded in Surajpur industrial area in Greater Noida when a team of workers were fixing a leakage in the pipe near a factory in Site-B on Wednesday morning, said a fire officer, adding that the impact of the blast was such that the adjacent factory’s guard room, located beside the gas pipeline, was completely damaged. However, no one was injured in the incident as the guard room was empty when the explosion happened.
Gautam Budh Nagar chief fire officer (CFO) Pradeep Kumar Chaubey said, “On Wednesday around 9.15am, the fire control room was alerted that a major fire broke out at a gas pipeline (IGL) in the Surajpur industrial area in Site-B, Greater Noida.”
“As soon as we received information, four fire tenders from surrounding fire stations were rushed to the spot and managed to douse the flames after an hour of continuous effort,” said Chaubey, adding that the gas pipeline distributor company was also informed to stop the flow of gas to prevent a major incident.
The CFO said, “During investigation, it came to fore that the gas pipeline, which was passing outside the Site-B factory, started leaking on Wednesday morning. When two workers of the gas pipeline company were fixing the fault, the pipeline caught fire.”
“As fire erupted, the workers ran away and the pipeline exploded. The intensity of the explosion was such that the security guard room of the adjacent factory was completely damaged and the roof came down,” said the CFO Chaubey, adding that there were also cracks on the road.
On August 3, a gas pipeline had caught fire due to alleged unauthorized excavation work underway in Site-4, Greater Noida, police said. No injury was reported in that incident either, but a nearby bike and handcart were gutted.
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Maharashtra Seamless obtains ₹674 crore order from ONGC to supply pipes
Maharashtra Seamless Ltd. announced on Thursday, April 11, that it has received an order valuing nearly ₹674 crore from. The steel pipes and tubes manufacturing company received the order for the supply of casing seamless pipes in gradual dispatches within a period of 44 weeks, the DP Jindal Group’s flagship company stated in a regulatory filing.
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Maharashtra Seamless Ltd operates through three segments: steel pipes and tubes, power electricity, and RIG.
In Q3 FY24, the company’s net revenue increased by 6.92% year over year (YoY). The company also registered a huge climb of 60.66% YoY in its profit. The operating income of the company hiked by 62.71% YoY. The market capitalisation of Maharashtra Seamless is ₹12,021.06 crore as of Thursday, April 11.
The stock of the company closed with a dip of 0.43% at ₹897.15 apiece on Wednesday on BSE.
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Policy Matters/ Gas Pricing/ Others
Centre slashes price of natural gas produced by Reliance Industries, but status quo on CNG
For the six months starting April 1, the price of gas from deepsea and high-pressure, high-temperature (HPTP) areas has been cut to $9.87 per mBtu from $9.96, oil ministry’s Petroleum Planning and Analysis Cell (PPAC) said in a notification
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The government on Sunday cut the price of natural gas produced from difficult areas such as deep sea KG-D6 block of Reliance Industries, marginally to $9.87 per million British thermal unit (mBtu) in line with the softening of benchmark international gas prices, an official notification said.
However, the price of gas that is used for making CNG for fuelling automobiles or piping to household kitchens for cooking purposes will remain unchanged due to a price cap that is set at 30 per cent less than market rates such as that paid to Reliance.
For the six months starting April 1, the price of gas from deepsea and high-pressure, high-temperature (HPTP) areas has been cut to $9.87 per mBtu from $9.96, oil ministry’s Petroleum Planning and Analysis Cell (PPAC) said in a notification.
The government bi-annually fixes prices of the locally-produced natural gas — which is converted into
CNG for use in automobiles, piped to household kitchens for cooking and used to
generate electricity and make fertilisers.
Two different formulas govern rates paid for gas produced from legacy or old fields of national oil companies such as Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and for newer fields lying in difficult-to-tap areas, such as deepsea.
Rates are fixed on April 1 and October 1 each year.
In April last year, the formula governing legacy fields was changed and indexed to 10 per cent of the prevailing Brent crude oil price. The rate was, however, capped at $6.5 per mmBtu.
Rates for legacy fields are now decided every month. For April, the price came to $8.38 per mBtu but because of the cap, the producers would get only $6.5 per mBtu, the PPAC said.
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NE Gas Grid to be expanded to other countries
NEW DELHI: As part of India’s larger energy diplomacy, the government is planning to extend the North Eastern Gas Grid (NEGG) to neighboring countries such as Bangladesh, Nepal and Bhutan after its completion in the next two months.
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According to officials of the petroleum ministry, work on the NEGG, which aims to create a natural gas pipeline network in northeastern India, is nearing completion. Once finished, it will be connected to the national grid and then to the other countries. Later, the government will also expand the pipelines to Sri Lanka and Myanmar.
“The proposal was sent to the Ministry of External Affairs, and they would further decide how to take it forward. They would talk to the concerned neighbouring countries for implementation of the project,” said an official.
The purpose of the move is to promote cross border energy trade and South Asia first policy. India planned to connect Myanmar and Bangladesh through an LNG pipeline, but later it was shelved.
The national gas grid is already operational, but interconnections at a few locations are yet to be completed. It will be connected with the northeastern gas grid in the next two months. The official also mentioned that this move will increase natural gas production in the country, as ONGC (Oil and Natural Gas Corporation) is currently unable to produce much gas due to supply issues.
India is actively expanding its national gas grid under the “One Nation, One Gas Grid” initiative. As of October 2023, over 12,206 kilometers of new pipelines are under various stages of construction. This aims to add to the existing 23,000 km operational network.
The north-east gas grid connects eight states in the region — Assam, Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Mizoram, Sikkim and Tripura. This will ensure natural gas availability across the region.This is a joint venture of five state-run oil and gas companies — GAIL, Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL), Oil and Natural Gas Corporation (ONGC) and Numaligarh Refinery Limited (NRL).
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LNG Use / LNG Development and Shipping
Energy, auto companies bet big on LNG trucks
Improved road infrastructure and attractive pricing of liquefied natural gas is catalysing energy companies and auto majors to gear up to serve the long-haul LNG trucking segment.. To cater to these medium and heavy commercial vehicles, oil marketing companies are planning to expand the compressed natural gas dispensing infrastructure in their fuel retail outlets to dispense LNG. They are planning to set up LNG retailing outlets along major national highways.
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“Setting up of an LNG station will cost anywhere up to ₹8-₹12 crore. A fuel retail outlet costs only up to ₹1.5 crore. We are evaluating options to maximise investment and expand CNG dispensing stations to include LNG,” said a senior executive from an oil marketing company.
Last month, gas marketer and transporter Gail committed an investment of ₹650 crore to set up LNG filling stations along the Golden Quadrilateral, major NHs and mining hubs. It aims to capture over 50% market share by 2030. Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are also planning to set up LNG stations.
LNG trucks are called long-haul vehicles, as they have a driving range of 600-1,000 km in a single fuel fill, giving them an edge over other fuels. By 2030, India could see 50,000 trucks serviced through 400 LNG retail stations, according to Emkay Research. India has around 4 million trucks operating, of which 1 to 1.5 million would be diesel-run trucks. Emkay Research says 3-5% of this can be converted to/replaced by LNG by CY30, which implies 50,000 trucks.
“Assuming 150 kg per day fill of LNG, this translates into a demand of 2.4 million tonnes per annum (mmtpa). In comparison, China has an LNG fleet of over 582,000 trucks with 4,800 stations, having total volumes of 18-20 million tonnes per annum,” Emkay Research added.
Push for adoption of LNG vehicles becomes important as India attempts to stem greenhouse gas emissions, reduce local air pollution in cities and increase the share of natural gas in the primary energy mix from 6% to 15% by 2030, according to a Niti Aayog report.
Tata Motors, Ashok Leyland and Blue Energy are already offering LNG trucks. Tata Motors, which launched its first LNG-powered truck in December 2023, is in discussions with its anchor customers in the steel, coal, cement and container segments who are keen to move their fleet to LNG-powered trucks for mining and long-haul logistics, said Rajesh Kaul, vice-president and business head, trucks, at the firm.
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Former Gazprom unit rejects GAIL demand for compensation over non-supply of LNG
New Delhi: A former unit of Russian energy giant Gazprom has rejected state-owned GAIL (India) Ltd’s demand for compensation for non-delivery of LNG supplies in the aftermath of Russia’s invasion of Ukraine.
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In a stock exchange filing, GAIL said SEFE Marketing Trading Singapore Pte Ltd has stated that it does not owe anything other than the defaulted cargoes.
GAIL in December last year filed an arbitration claim before the London Court of International Arbitration seeking $1.8 billion for ‘non-supply of LNG cargoes under a long-term contract.
This included compensation for non-supply besides making up for the defaulted volumes.
GAIL in 2012 signed a 20-year deal to buy as much as 2.85 million tonnes per annum of liquefied natural gas (LNG) with Russian energy giant Gazprom.
The deal was signed with Gazprom Marketing and Singapore (GMTS), which at the time was a unit of Gazprom Germania, now called Sefe.
The Russian parent gave up ownership of Sefe after Western sanctions were imposed on Moscow over its invasion of Ukraine in 2022.
Sefe had stopped supplying LNG to the Indian company in June 2022 to meet its own demand. The German government acquired Sefe after the start of the Ukraine war in February 2022 and prohibited it from taking volumes from Russia.
Supplies were resumed in March last year.
GAIL in December stated that it has sued ‘SEFE Marketing & Trading Singapore Pte Ltd (erstwhile Gazprom Marketing and Trading Singapore Pte Ltd)’ and has sought ‘up to $1.817 billion and alternative relief including non-monetary reliefs.
Originally, GAIL had signed up with the German subsidiary of Gazprom, and a step-down company based in Singapore for sourcing of gas. After the invasion, the German government took over the company and the supplies were hindered as the German government debarred the company from picking up any cargo from Russia.
GAIL believes the contract was a portfolio contract and supplies cannot be stopped in any way. If there were problems in sourcing from Russia, the supplier should have arranged for the cargo from other destinations.Under the deal signed in 2012, supplies started in 2018 and the full volume was to reach in 2023.
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Electric Mobility/ Hydrogen/Bio-Methane
Adani Total Gas commissions operations at phase 1 of Barsana Biogas Project
The Barsana Biogas Project has three project phases and would attain the overall capacity of 600 tons per day (TPD) of feedstock, generating over 42 TPD of Compressed BioGas (CBG) and 217 TPD of organic fertilizer upon full commissioning.
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Adani TotalEnergies Biomass Limited (ATBL), a wholly-owned subsidiary of Adani Total Gas Limited (ATGL), on Sunday announced that it has commissioned operations at phase 1 of its Barsana Biogas Plant, located in the Mathura district of Uttar Pradesh. The plant is located in the premises of Shri Mataji Gaushala.
The Barsana Biogas Project has three project phases and would attain the overall capacity of 600 tons per day (TPD) of feedstock, generating over 42 TPD of Compressed BioGas (CBG) and 217 TPD of organic fertilizer upon full commissioning, the company said in a statement. The three project phases for the Barsana Biogas plant would cost in excess of Rs 200 crore.
Suresh P Manglani, ED & CEO, ATGL, said “We are excited to unveil our endeavor towards contributing in sustainable energy production. The Barsana Biogas Plant represents our Chairman Shri Gautam Adani’s commitment to fully leverage renewable resources to create a cleaner, more sustainable world for our future generations. In addition to producing Compressed Bio Gas (CBG), the plant yields high-quality organic fertilizer, contributing to circular economy principles and agricultural sustainability. The setting up and initiation of CBG production fully aligns with our promoters’ – Adani Group and TotalEnergies – broader sustainability goals and by investing in renewable energy like CBG. Adani Group and TotalEnergies aim to play a pivotal role in the global transition to a low-carbon economy.”
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Panasonic To Form JV With IOCL To Manufacture Cylindrical Lithium-Ion Batteries In India
The two companies are engaging in a feasibility study regarding the utilisation of battery technology to facilitate the transition to clean energy in India. Panasonic Group will form a joint venture with Indian Oil Corporation Ltd (IOCL), the nation’s biggest oil firm, to manufacture cylindrical lithium-ion batteries.
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Panasonic Energy Co Ltd, a group firm of Japan-based multinational electronics company, has signed a binding term sheet and initiated discussions with IOCL “to draw a framework for the formation of a joint venture” to manufacture cylindrical lithium-ion batteries, said a statement on Sunday.
“This initiative is driven by the anticipated expansion of demand for batteries for two- and three-wheel vehicles and energy storage systems in the Indian market,” it added.
Cylindrical lithium-ion batteries are commonly used in consumer electronics, power tools, and electric vehicles. Panasonic Energy is a maker of automotive lithium-ion batteries.
The two companies are engaging in a feasibility study regarding the utilisation of battery technology to facilitate the transition to clean energy in India, the statement said.
The companies are aiming for “finalising details of their collaboration by the summer of this year”, it added.
State-owned IOCL is aiming to achieve net-zero carbon emissions by 2046, aligning with the Indian government’s plan to achieve net-zero for the country as a whole by 2070.
“Through its partnership with IndianOil, Panasonic Energy aims to address environmental challenges, such as reducing CO2 emissions, as well as to contribute to establishing a complete supply chain ecosystem for improving India’s self-reliance and fortifying India’s position in the global energy landscape,” it said.
This will also lead to the growth of India’s battery industry by enhancing cell technology and creating domestic demand for raw materials and new entrants.
“Leveraging its expertise in battery development and manufacturing, Panasonic Energy strives to contribute to the growth of the lithium-ion battery industry and India’s energy transition, while pursuing its mission of helping to build a sustainable society,” it said.
Established in April 2022, Panasonic Energy provides battery technology-based products and solutions globally.
Through its automotive lithium-ion batteries, storage battery systems and dry batteries, the company provides solutions to a broad range of business areas, from mobility and social infrastructure to medical and consumer products.
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RIL, Tata Motors & IOCL are the primary bidders for government’s big project on Green Hydrogen
MUMBAI : Reliance Industries (RIL), Tata Motors, and Indian Oil Corporation (IOC) are likely to be the primary bidders for the use of government’s experimental project involving green/grey hydrogen (H2) in the transportation sector. This initiative aligns with the government’s goal to decarbonize the Indian economy, lessen reliance onfossil fuel imports, and position India as a leader in green hydrogen technology and market.
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The pilot projects aim to address operational challenges and identify gaps in technology readiness, regulations, implementation methods, infrastructure, and supply chains, as per the revised request for proposal (RFP) document. The hydrogen corridor project aims to facilitate the deployment of hydrogen powered vehicles like buses, trucks, and cars gradually on a pilot basis. Winners of the technical and commercial bid rounds will receive funds to bridge the viability gap due to the higher initial capital costs of hydrogenpowered vehicles.
The bidding for the Rs 496-crore project commenced in February.
It forms a part of the National Green Hydrogen Mission, launched in January 2023 with a budget of Rs 19,744 crore.
One of the key requirements for bidders is to participate as a consortium or partners to cover the complete value chain – from hydrogen production and distribution to operating vehicles fueled by hydrogen. Industry sources told the financial daily that Reliance has teamed up with Ashok Leyland and Daimler India Commercial Vehicles (DICV), while Tata Motors has partnered with IOCL in a consortium. Additionally, Ashok Leyland has collaborated with NTPC for the project. Indeed, many automakers have been conducting trials with hydrogen-fueled trucks and buses for energy companies like RIL and NTPC for some time now. Tata Motors and Ashok Leyland representatives were unavailable for comments, while a DICV spokesperson confirmed their support to RIL for the project. RIL, engaged in the production-linked incentive (PLI) scheme for electrolyzer and green H2, stands out as the sole end-to-end service provider for the pilot project, covering hydrogen manufacturing, fuel distribution, and operating hydrogen-powered vehicles. The conglomerate, focusing on the new energy sector in recent years, stands to gain significantly if successful in securing the project bid. This would pave the way for large-scale hydrogen production in line with the government’s objectives. Industry insiders suggest that starting with grey hydrogen for the project will allow companies to establish infrastructure and ensure smooth operations. Grey hydrogen, produced from natural gas or coal, serves as an interim solution for the transition towards green hydrogen.
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RIL to lead massive Rs 1 lakh crore investment in green hydrogen, ammonia units at Kandla
Mumbai: Reliance Industries Ltd (RIL) and Larsen and Toubro (L&T) as well as energy companies Greenko Group and Welspun New Energy will be setting up green hydrogen and green ammonia units at Gujarat’s Deendayal Port Authority (DPA) in Kandla, said people with knowledge of the matter. The project could see a cumulative investment of up to Rs 1 lakh crore, according to three industry executives aware of the development. This will be among the largest such investments in the sector and the energy infrastructure space in India.
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The port authority had received expressions of interest for 14 land parcels of 300 acres each in October last year. Each parcel was earmarked for 1 million tonnes per annum (MTPA) of green ammonia. Last month, DPA allotted the plots to the four companies, said the people cited above.
“DPA offered 14 plots with around 4,000 acres of land in total. Of this, RIL has been allotted six plots, L&T has been allotted five, Greenko Group has bagged two and Welspun New Energy has been allotted one plot. These four companies had bid the highest in the auction,” said one of them.
The information hasn’t been made public because the Model Code of Conduct is in place ahead of the general elections. A formal announcement will be made in June after the polls, said the people cited above.
Kandla port is targeting green ammonia production of 7 MTPA and 1.4 MTPA of green hydrogen. Located in the Gulf of Kutch, DPA is one of the major ports on the country’s western coast. Green hydrogen (GH2) is made by electrolysing water using power from renewable energy sources, without the emission of any greenhouse gases. This is part of a global effort to make green hydrogen the fuel that can help countries attain their net-zero emission targets, since water is the only byproduct. Ammonia is the largest end-user segment for green hydrogen and plays a pivotal role in producing GH2 at scale.
As part of the National Green Hydrogen Mission, the ministry of ports, shipping & waterways (MoPSW) had identified and nominated DPA, Paradip Port in Odisha and VO Chidambaranar Port in Tamil Nadu for development as hydrogen hubs, capable of handling, storage and generation of green hydrogen by 2030. DPA had last year signed 13 memoranda of understanding (MoUs) with energy companies including ReNew EFuels, Statkraft India, Welspun New Energy, Sembcorp Green Hydrogen India, Torrent Power Ltd, NTPC Green Energy and Greenko Group among others.
RIL, Greenko, Welspun and DPA didn’t respond to queries. L&T declined comment.
The ports and shipping ministry has also drawn up a National Action Plan for Green Shipping. This involves the increased use of renewable energy (solar, wind) and clean fuels (electric, liquefied natural gas, compressed natural gas) to reduce vehicle emissions at ports. It also aims to introduce ammonia and hydrogen as a fuel for future use at ports.
India’s National Green Hydrogen Mission envisages making the country a global hub for green hydrogen production, utilisation and export to reduce its trillion-dollar energy imports and helping to decarbonise hard-to-abate sectors. The mission targets a green hydrogen production capacity of 5 MTPA by 2030 with an associated renewable energy capacity addition of about 125 GW at an investment of over Rs 8 lakh crore and a cumulative reduction in fossil fuel imports by over Rs 1 lakh crore. It will also help abate nearly 50 MT of annual greenhouse gas emissions.
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Centre’s new EV policy permits states to offer incentives to bag investments
The Union government has already announced a liberal EV policy for all aspiring investors and it is unlikely to give any company-specific concession, but states may offer incentives such as land at a concessional rate to attract foreign investments during Tesla CEO Elon Musk’s India visit later this month, two officials said.
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Competition among states to attract foreign investments is a healthy trend, which helps in enhancing ease of doing business and two industrial states in western India and two in the South are competing to host Tesla’s proposed manufacturing unit, they said.
Last week, a person familiar with Tesla’s India plans told HT it is considering Gujarat, Maharashtra or Tamil Nadu as the site for its plant, primarily because these are coastal states with ports.
Tesla, the world’s leading Indian EV manufacturer, has begun the process of producing right-hand drive cars for the Indian market in its Berlin factory and hopes to have them on Indian roads later this year, one of these people said, asking not to be named.
The company is sending a team in the third week of April to India to scout for locations to firm up its mega manufacturing plans to make vehicles in India for the wider developing world, this person said.
A week later, it emerged that Musk would be heading the team.
In a twitter post, Musk on Wednesday said, “Looking forward to meeting with Prime Minister @NarendraModi in India! “
The visit may help in resolving issues such as site for the facility and regulatory approvals, the two officials cited in the first instance added.
“Proactive approach of states will help the company in taking a decision. However, a final call will be taken by it based on various factors such as cost of production, law and order situation and infrastructure facilities,” one of the two added, saying that Gujarat, Maharashtra, Telangana and Tamil Nadu could be competing for the investment. “Tesla may initially invest $2-3 billion in setting up a plant in India to cater to the demand of the region. It wanted concessional duty on EV imports during the gestation period, which has been addressed by the EV policy released last month,” the official said.
Besides Tesla, several other foreign car manufacturers want to invest in India, provided they would also be allowed to import EVs by reducing customs duty. The new EV policy announced on March 15 addressed their demand while protecting the national interest, the second official said.
“Multiple firms have expressed interest in setting up manufacturing plant in India because it offers a cost-effective manufacturing base, a large market, a rule-based stable political regime and a favourable policy framework,” he said.
The central government on March 15 approved an e-vehicles policy allowing limited imports of cars by global EV giants at a concessional duty of 15%, provided they invest a minimum of $500 million for setting up a manufacturing plant in India. Otherwise, cars imported as completely built units (CBUs) attract customs duty ranging from 60% to 100%, depending on engine size and cost, insurance and freight (CIF) value.
According to the policy, a maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is of $800 million or more. The carry-over of unutilised annual import limits would be permitted.
“This will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment,” the commerce ministry said in a statement while announcing the policy that day.
The policy said the investment commitment made by a company will have to be backed up by a bank guarantee in lieu of the custom duty forgone and the bank guarantee will be invoked in case of non-achievement of domestic value addition (DVA) and minimum investment criteria defined under the scheme.
The policy gives a three-year timeframe to global investors for setting up a manufacturing facility and start commercial production of e- vehicles in India. According to the policy, the company is required to reach 50% DVA within five years or earlier while 25% localisation is envisaged in the third year.
The policy has provisions to protect domestic industry as the customs duty of 15% would be applicable on vehicle of minimum value of $35,000 (about ₹29 lakh) and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within a three-year period.
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Deadline extended for green hydrogen R&D proposals submission
The extension comes in response to requests from various stakeholders for more time to develop their proposals, ensuring that high-quality, innovative projects can be thoroughly prepared and submitted. This initiative is part of the government’s broader strategy to promote the use of green hydrogen, a clean energy source that plays a crucial role in India’s commitment to achieving energy self-reliance and reducing carbon emissions.
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New Delhi April 9 (IANS) The Ministry of New & Renewable Energy announced on Tuesday that the deadline for submission of R&D proposals under the National Green Hydrogen Mission has been extended to 27th April 2024.New Delhi: In a significant move to bolster innovation in the renewable energy sector, the ministry of new & renewable energy announced an extension for the submission of research and development (R&D) proposals under the National Green Hydrogen Mission. Originally set for an earlier closure, the deadline has now been shifted to April 27, 2024, offering additional preparation time for researchers and institutions aiming to contribute to India‘s green hydrogen development.
The extension comes in response to requests from various stakeholders for more time to develop their proposals, ensuring that high-quality, innovative projects can be thoroughly prepared and submitted. This initiative is part of the government’s broader strategy to promote the use of green hydrogen, a clean energy source that plays a crucial role in India’s commitment to achieving energy self-reliance and reducing carbon emissions.
Launched with a total outlay of Rs 19,744 crore until the financial year 2029-30, the National Green Hydrogen Mission aims to make India a global hub for the production, utilization, and export of green hydrogen and its derivatives. The mission encompasses a wide range of activities, from the development of production technologies to the establishment of an ecosystem that supports large-scale, cost-effective green hydrogen use.
The R&D scheme under this mission, detailed in guidelines issued on March 15, 2024, and with a budget of Rs 400 crore up to the financial year 2025-26, focuses on enhancing the affordability, efficiency, safety, and reliability of green hydrogen technologies. It covers the entire value chain, including production, storage, transportation, and utilization, encouraging collaborations between industry, academia, and government to foster an innovation-driven environment.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
US: BP in talks with Venezuela and Trinidad governments to develop gas field
HOUSTON (Reuters) -BP PLC and Venezuela confirmed on Thursday they are in talks with Trinidad and Tobago government to develop a shared offshore gas field in the Caribbean. BP has been seeking to increase its natural gas production in Trinidad to feed into the local Atlantic LNG’s liquefied natural gas export facility
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BP’s gas output has fallen in the last five years by almost 1 billion cubic feet per day (BCF/D) from over 2.2 bcf/d down to 1.2 bcf/d.
“BP can confirm that it is in discussions with the government of Trinidad and Tobago and the Bolivarian Republic of Venezuela on the potential development of gas resources in the Manakin-Cocuina field,” said BP in a statement on Thursday.
Venezuela’s state-run oil company PDVSA said on social media it is considering issuing a license for exploring and developing non-associated gas on its side of the shared field.
Venezuela’s government on Thursday posted a photograph of oil minister Pedro Tellechea meeting with BP’s Trinidad President David Campbell and Trinidad’s Energy Minister Stuart Young in Caracas.
The Manakin-Cocuina field straddles both sides of the countries’ borders and BP said the development talks are in keeping with an easing of U.S. sanctions against Venezuela
The fields were unitized in 2015 but talks on the development were stalled upon imposition of U.S. sanctions in 2019 against Venezuela, said BP.
The field is estimated to contain just over 1 trillion cubic feet of natural gas.
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Argentina : Argentina builds case for exporting Natgas to Brazil through Bolivia
HOUSTON/BUENOS AIRES, April 1 (Reuters) – Energy companies from Argentina and Brazil have begun talks on reversing the southerly flow of a Bolivian natural gas pipeline network that connects the three countries as a regional gas deficit could force Brazil to pay up for alternative supplies of the fuel.
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A preliminary proposal on the pipeline shift has failed to gain traction with Bolivia, according to executives and sources, leaving Brazil increasingly exposed to volatile prices of liquefied natural gas (LNG) Brazil has made clear in recent months that gas from Argentina, which has the world’s second largest shale gas reserves, will be needed to balance supplies. Exports from Bolivia, which once was a prominent producer in the region, have declined rapidly and may not be available after 2029, say experts.
The fastest and cheapest option to address the regional shortfall may be to export gas from Argentina’s Vaca Muerta shale formation by reversing a network of Bolivian pipelines that has brought gas south.
But Argentina’s government under new President Javier Milei must first complete key transport projects to bring its gas to the border with Bolivia and build the commercial framework needed for negotiating tariffs, according to executives and experts involved in the talks.
Bolivia’s government and state company YPFB in recent months rejected an initial proposal by Argentina and Brazil to pay a tolling fee for the passage of Argentina’s gas across its territory, three executives from the companies involved said.
The Andean nation has proposed that it import Argentine gas and resell it to companies in Brazil, they added. That plan was rejected by the counterparties as it would lead to significantly higher import costs for Brazil.
“It’s a commercial problem,” said Mauricio Tolmasquim, chief energy transition officer at Brazil’s state-controlled oil company Petrobras PETR4.SA, one of the largest receivers of Bolivia’s gas.
“We have to find some common ground,” he said last month on the sidelines of the CERAWeek conference in Houston.
Argentina wants to solve domestic transportation bottlenecks this year to balance its gas distribution and begin planning exports. For its part, Bolivia must agree to negotiate terms to provide gas passage.
If both happen, Argentine gas could begin flowing to Brazil next year during the low-demand season in Argentina, said Alvaro Rios, director of consultancy Gas Energy Latin America.
Bolivia’s and Argentina’s governments and YPFB did not reply to requests for comment.
LNG prices hit a record high in 2022, sparked by Moscow’s invasion of Ukraine, but have slumped to their lowest level in nearly three years after weaker-than-expected demand due to a mild winter and high stockpiles in the U.S., Europe and Japan.
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Petrobras would prefer to receive more gas to fill its pipeline from Bolivia, which is currently running at about 60% of capacity, Tolmasquim said.
“If Bolivia can increase (supply) for Brazil, that would be perfect because then we can find another way to bring the gas from Argentina, (such as) building another pipeline to the south of Brazil or we can resort to LNG,” he added.
However, the Andean nation until last year was unable to fulfill volumes negotiated with Brazil. Petrobras in December agreed to amend its Bolivian gas contract to keep imports at up to 20 million cubic meters per day. The deal also allowed seasonal flexibility and extended the timeframe to achieve the total supplies, the company said.
Argentina, the second largest receiver of Bolivian gas, plans to cease imports in October if it completes an expansion of its own gas network to bring more gas from the Vaca Muerta fields to its northern provinces, gas providers have said.
The country also is trying to advance two large LNG projects, one by Malaysia’s Petronas PETRA.UL and state-owned company YPF YPFD.BA, and another by oil and gas producer Tecpetrol.
“The current bottleneck is at Argentina’s pipelines. They want to negotiate with Bolivia, but they must first reverse their own gaslines’ flow and secure gas to the border. They also must work on tariffs and regulations,” said Rios.
Bolivia’s supply to Argentina has declined to as low as 2 million cubic meters per day (mcm/d), a fraction of Argentina’s 130-mcm/d consumption, said Ricardo Markous, CEO of Tecpetrol, which produces gas in Argentina and Bolivia.
A gas export increase from Bolivia, whose production has fallen about 45% in the last eight years to some 34 mcm/d, is unlikely in coming years, Rios said.
“Bolivia by 2029 will no longer have gas to export because domestic demand will match production capacity. The production decline has been accelerating every year,” he added.
Its decline is expected to increase the pressure for alternative supplies, experts and sources said, especially if prices for LNG, which has been the alternative for Brazil and Argentina in recent years, climb again.
(Reporting by Marianna Parraga in Houston and Eliana Raszewski in Buenos Aires, additional reporting by Danny Ramos in La Paz and Fabio Teixeira in Rio de JaneiroEditing by Marguerita Choy)
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US: City of Clemson approves application for 6 new CATbuses powered by natural gas
CAT Interim General Manager Jerry Kerns presented the Clemson Area Transit appeal for two grant funding opportunities at a Clemson City Council meeting on March 18. The Federal Transit Administration offers both the Low or No Emissions Grant and the Buses and Bus Facilities Program. The FTA will only award the application for one of the two grants.
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Kerns brought up that the FTA holds a minimum of 25% of the total grant amount of $1.1 billion. With the Low or No Emissions Grant program, this would award $276 million to projects other than zero-emission buses.
Kerns added that CNG buses take less time to fuel than charging electric buses, which take “about 20 to 25 minutes,” he said.
Kerns also noted that the local match percentages between the University and the city are different from past percentages due to the change in bus type from electric to CNG.
The influx of information on CNG buses is part of the reason that CAT is applying to add CNG buses instead of more electric buses. There are 27 total CAT buses in Clemson; 14 of the buses are electric-powered, while the other 13 are diesel-powered.
“There is a lot more information on CNG buses than there was with electrics when we started,” Kerns noted.
During the meeting, council member Catherine Watt raised concern regarding increased traffic with the addition of six new CATbuses.
“All I can picture is the traffic jam,” Watt told Kerns.
Kerns responded that it would take 24 months for all six buses to arrive in Clemson.
The project’s total cost is $5,560,000. This includes $735,000 for each bus, an additional $900,000 for installation equipment and a $1 million fueling station at the CATbus headquarters, according to the item request form presented to the city council.
The total local match of $784,000 would be split evenly between the city and Clemson University, each providing $392,000 for the project.
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US: Natural gas and the move toward energy self-sufficiency
The major move toward energy self-sufficiency in the United States and in Europe in recent years has been the development of the U.S. natural gas industry and the export of liquefied natural gas (LNG) to our allies. Natural gas accounts for roughly 30% of the energy used domestically, and the U.S. is now the largest global exporter of LNG.
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Similar growth has taken place in crude oil, where the U.S. has become the world’s leading producer and exporter. Ten years ago, exports of crude oil were banned.
But it is the shift to natural gas, a cleaner-burning fossil fuel, that has had the biggest impact as nations transition from carbon-intensive fuels like coal to renewable sources.
When wind and solar power are factored in, the result has been an economy, both in the U.S. and in Western Europe, less dependent on traditional fossil fuels. This change can be seen in the loosening of the direct relationship between economic growth and carbon emissions among the developed economies.
While gross domestic product in the United States has doubled since 1990, carbon dioxide emissions have returned to 1990 levels. And while the European Union economy is 66% larger now, its carbon emissions are 30% lower than in 1990.
There is still a long way to go before we can expect anything close to zero emissions. But for the next few years, the energy outlook in the U.S. is bullish with respect to both natural gas supplies and the economy.
In addition, as the diversification of supply and demand increases, risks to economic growth—linked to a volatile external sector—should diminish on the margin.
For our allies in Europe, exports of LNG have been a lifeline as Russian energy supplies have been cut off. For the U.S., natural gas has become the cleanest available fuel, providing an alternative fuel until cheap supplies of renewable energy are fully attainable.
The ideal transition fuel
Natural gas is the ideal energy source that aids energy self-sufficiency. First, it is “cleaner,” generating lower carbon emissions than oil and coal, although it is not as low-carbon as renewables. The switch from coal and oil to natural gas use will help curb carbon emissions while allowing time for renewables capacity to grow.
Second, while natural gas markets are localized, LNG can be transported all over the world, helping to smooth out the wrinkles in global supply and demand.
Wind, solar and hydro energy all have distribution challenges that require generation centers to be relatively close to where the energy is consumed. Natural gas, while not as easily transported as oil and coal, is the hybrid fuel that helps fulfill energy demand where shortages arise.
In addition, natural gas generation is reliable where there is supply. In an era in which energy security is a top priority, moving to natural gas as a transition fuel is a natural step. It also means that for many European countries that depend on imports of gas and oil, energy security still depends on relationships with top producers like the U.S., Canada and Russia.
Expanding supplies
Production of natural gas in the U.S. has been increasing since 2006, with the rate of increase accelerating since 2017. We would surmise this has to do with meeting the demand of U.S. public utilities as coal and oil generation is phased out, and with the rapid increase in demand by foreign buyers.
https://rsmus.com/insights/economics/natural-gas-and-the-move-toward-energy-self-sufficiency.html
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AbuDhabi : ADNOC Gas to invest over $13 billion in domestic, international oil and gas industry by 2029
(WO) – ADNOC Gas plc and its subsidiaries held its first Annual General Meeting (AGM) since its landmark initial public offering (IPO) in March 2023. During the AGM, Chaired by His Excellency Sultan Ahmed Al Jaber said, “Between 2024 and 2029, we plan to invest over $13 billion in domestic and international growth opportunities, with our predictable margin business expected to increase our EBITDA by up to 40% by 2029.
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“In addition, we are looking to increase our LNG export volumes in a growing global market. Our aim is to acquire the new Ruwais LNG plant and more than double our LNG production capacity by 2028.”
Dr. Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented, “Our strong financial performance in 2023 underpins our confidence to expand our global footprint and explore new revenue streams that hold the potential to unlock additional value for shareholders.”
“We are planning to more than double our LNG production capacity by strategically acquiring the new Ruwais LNG plant. We aim to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia if they add value to our business.”
ADNOC Gas is well-positioned to benefit from ADNOC’s planned expansion of oil production capacity to 5 MMbpd by 2027. In addition, ADNOC has announced its intention to take a final investment decision (FID) on the Ruwais LNG project in 2024, which ADNOC Gas plans to acquire.
In 2024, the company will focus on processing and delivering increased volumes of gas to its customers and enhancing its product mix to meet the growing global demand for lower-carbon solutions.
Through two of its ongoing strategic projects, the company will continue to expand its natural gas pipeline network and develop infrastructure to boost gas supply for its petrochemicals growth in Ruwais. All these projects will make a significant contribution to the UAE economy and expand ADNOC Gas’ capacity to meet increasing global gas demand.
In 2024, ADNOC Gas will continue enhancing operational efficiency and driving accelerated growth with a focus on decarbonization, digital transformation, and artificial intelligence (AI)-led technology innovation. The company’s achievements in 2023 included the deployment of AI technologies such as machine learning, computer vision, and hybrid modelling, aimed at enhancing cost efficiency and employee safety.
Notably, in September 2023, ADNOC Gas successfully completed a “proof of concept” pilot using advanced robotics for continuous monitoring and inspection of large facilities, resulting in improved equipment availability and enhanced employee safety.
These solutions have significantly boosted the company’s plant availability and output gains, resulting in the creation of up to $1 billion in value since 2016. ADNOC Gas aims to further leverage AI and other new technologies for improved cost efficiencies and reliability. Over the next five years, it expects to save up to $400 million annually and reap significant benefits.
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Canada: Enbridge wins approval to commence service on Louisiana Venice natgas pipe project
Canadian energy company Enbridge’s Texas Eastern Transmission subsidiary received approval on Thursday from U.S. energy regulators to commence service of a natural gas pipeline associated with its Venice extension project in Louisiana.
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The Venice extension was designed to supply gas to Venture Global LNG’s Plaquemines liquefied natural gas (LNG) export plant in Louisiana, which is under construction and expected to enter service between 2024 and 2026.
The U.S. Federal Energy Regulatory Commission (FERC) said it granted Texas Eastern’s March 26 request to commence service of the 3-mile (4.8-kilometer), 36-inch (91.4-centimer) Venice extension pipeline.29dk2902l
The U.S. Energy Information Administration (EIA) has said the Venice extension would have a capacity of around 1.3 billion cubic feet per day (bcfd) and cost about $500 million.
Plaquemines is designed to turn about 2.6 bcfd of gas into LNG.
Other pipes under construction that will also provide gas to Plaquemines include Texas Eastern’s Gator Express and U.S. energy company Kinder Morgan’s Tennessee Gas Evangeline projects.
One billion cubic feet of gas is enough to supply about 5 million U.S. homes for a day.
(Reporting by Scott DiSavino in New York Editing by Matthew Lewis)
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Natural Gas / LNG Utilization
Indonesia: Pertamina’s Jawa-1 LNG-to-power project ready to run at full capacity
Indonesia’s national energy company Pertamina has announced its PLTGU Jawa-1 power station is ready to run at full capacity after passing pre-commissioning tests in late March.
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The 1,760 MW plant, consisting of two equally-sized units, is equipped with a regasification system which allows it to handle LNG mostly sourced from BP’s Tangguh field in West Papua.
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Global LNG Development
Japan: Seibu Gas to increase capacity of Hibiki LNG terminal
Seibu Gas Co., Ltd has decided to issue a bid to increase the capacity of the Hibiki LNG terminal by increasing the number of LNG tanks. Based on the results of the auction, the copmany will decide whether or not to proceed with this investment by the end of this year.
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Increasing the capacity of the Hibiki LNG Terminal will make it possible to contribute to a low-carbon society by meeting domestic natural gas demand against the backdrop of carbon neutrality, promote global business that utilises the Hibiki LNG Terminal, and ensure stable supply. This enables further improvement.
The group will continue to contribute to the realisation of further low carbonisation and decarbonisation in the Kyushu region, with a view to achieving carbon neutrality in 2050.
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Egypt: EGAS in talks to rent gasification ship to meet domestic need for electricity
EGAS seeks to sign a renewable five-year contract to rent a gasification ship as a harbor for imported LNG shipments
The Egyptian Natural Gas Holding Company (EGAS) is currently in negotiation to rent a gasification ship, which converts liquefied natural gas (LNG) into synthetic gas, two government sources told Asharq Business.
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EGAS seeks to sign a renewable five-year contract to rent a gasification ship as a harbor for imported LNG shipments, one source highlighted.
The other source said that Egypt would start importing LNG via an existing floating facility in Aqaba city, Jordan, of which tenancy will terminate by end-2025.
The sources pointed out that the country aims to increase natural gas supplies within the second half (H2) of the current year to meet the domestic need for electricity in summer.
It is worth noting that the Ministry of Petroleum and Mineral Resources is currently supplying power plants with up to 16,000 tons of fuel oil daily and from 85 to 88 million cubic meters of natural gas daily, one source noted.
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Moldova : Moldova receives first batch of LNG from US
The Moldovan government is stepping up procurement of liquefied natural gas (LNG) to reduce dependence on Russian supplies, Minister of Energy of Moldova Victor Parlicov said, Report informs.
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According to him, Moldova has already received a 2.6 million cubic meter batch of LNG from the US producer.
The gas was delivered by ship to the Alexandroupolis terminal in Greece, and then transported to Moldova via gas pipelines.
Victor Binzari, interim director of JSC Energocom, noted that it is a trial purchase from the Greek DEPA. The price of this LNG is competitive.
https://www.azerbaycan24.com/en/moldova-receives-first-batch-of-lng-from-us/
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US: US was world’s largest liquified natural gas exporter last year
The U.S. was the world’s largest exporter of liquified natural gas (LNG) in 2023, according to federal data released Monday. U.S. exports of the fossil fuel last year surpassed those of major exporters Qatar and Australia, and it amounted to 12 percent more American gas shipped than in 2022, the independent Energy Information Administration said.
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The increase comes as Europe, the primary customer for U.S. gas exports, is looking to move away from another major supplier, Russia, in the wake of Russia’s 2022 invasion of Ukraine.
It also comes as the Biden administration is facing increasing political pressure — particularly from climate activists — over its natural gas exports.
In response to objections to the nation’s growing gas exports, the administration paused approvals for some new natural gas export projects earlier this year — though that pause does not impact existing exports or projects that are already under construction.
Experts have also debated the environmental impacts of U.S. natural gas exports, given that the fuel does contribute to climate change, but displaces even-dirtier coal in some nations.
High oil and gas production numbers have presented a political tightrope for the administration — as it seeks to show progressive and mainstream Democrats that it is taking climate action, while also combatting right-wing attacks over not being friendly-enough to fossil fuels.
The U.S. energy statistics agency said that the increase in U.S. exports came in response to strong European demand and high international prices. The return of Texas’s Freeport LNG plant in 2023 after a 2022 fire also bolstered the nation’s export numbers.
U.S. LNG export levels set records in November and December.
https://au.news.yahoo.com/us-world-largest-liquified-natural-205250988.html
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Egypt: Egypt To Lease Natural Gas Terminal
State-run Egyptian Natural Gas Holding Co is planning to lease a natural gas import terminal from providers of FLNG units, anonymous sources told Reuters this week. EGAS is hoping to find a willing participant for a five-year contract with the option of extending it, the source suggested.
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So far, Egypt has already purchased one LNG shipment scheduled to deliver sometime in May, but it has plans to purchase more in an attempt to get ahead of the scorching summer season that routinely triggers power blackouts due to the heavier load.
This batch of LNG will be imported through the Aqaba terminal in Jordan after its previous agreement to lease the BW Singapore floating storage and regasification unit ended in 2023.
Egypt had largely moved away from heavy natural gas imports several years ago after its giant Zohr gas field increased its domestic production. But, Egypt’s domestic production has since declined, reaching the lowest level in years due to a natural decline in the fields.
Late last year, Chevron shut down its production from the Tamar gasfield offshore Israel per the Israeli energy ministry due to the Hamas-Israel war. It had been a major source of natural gas to Egypt through the EMG pipeline, but the production outage suspended the flow of gas to Egypt.
Some gas exports from Tamar were then rerouted through Jordan, but not enough to allow for exports from Egypt. As a result, Egypt had to supend its LNG exports that had been heading into Europe, thwarting its plans—at least temporarily—to become a regional gas hub. Last summer, Egypt didn’t export any LNG in June, July, or September due to its own high demand for power during the hot months.
Egypt was struggling with its own domestic gas production even before the Israeli/Hamas conflict.
Egypt, Israel, and the EU signed an MOU in June of 2022 to deliver a higher gas supply to the EU—a deal that is now impossible.
https://oilprice.com/Latest-Energy-News/World-News/Egypt-To-Lease-Natural-Gas-Terminal.html
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US: Origin Energy suitor EIG nabs stakes in three major LNG projects
EIG, the private equity group which partnered with Brookfield for a failed $20 billion takeover of Origin Energy, has secured a foothold in Australia’s gas sector, taking a minority stake in three large projects across Queensland and Western Australia.
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The Washington-based group said it would also open an office in Perth to oversee its investments in Woodside Energy’s Pluto LNG, Chevron’s monster Gorgon venture and Shell’s Queensland Curtis project.
The deal also gives Saudi Aramco an interest in Australian LNG for the first time through the Saudi giant’s $US500 million ($770.4 million) investment in EIG’s MidOcean Energy arm announced last year. It also increases the investment here by Japanese trading house Mitsubishi Corporation, which has also made a “strategic investment” in MidOcean under a deal announced on Tuesday morning Australian time.
“[Mitsubishi’s] investment is a testament to the strong fundamentals of the LNG market and MidOcean’s strategy to create a competitive long-term growth platform in LNG for its investors,” MidOcean chief executive De la Rey Venter said in a statement.
The firm has been clear it regards LNG as an important strategic fuel for the transition to low-carbon energy and that the fuel has a strong future over 30 or 40 years. In contrast, Tokyo Gas signalled in 2022 that decarbonisation was a drive for its move to sell most of its LNG interests in Australia, saying it wanted to direct resources to “growth areas”.
EIG acquired the interests in the Australian ventures from Tokyo Gas under a $US2.15 billion transaction announced in October 2022 and which was originally intended to also include the Japanese player’s stake in Ichthys LNG in Darwin before it was pre-empted by the operator of that venture, Inpex Corporation.
EIG’s MidOcean Energy arm had intended to make a bigger splash in the Australian LNG sector by buying Origin’s 27.5 per cent stake in APLNG but that arrangement collapsed when Origin shareholders rejected the takeover bid from Brookfield and EIG in December, A much earlier attempt to carve out a position in Australian LNG, through a controversial $14.4 billion bid for Santos in 2018, was also unsuccessful.
Bid appetite
“This is finally EIG’s big LNG entrance to establish the beginning of a new global LNG platform, after a couple of false starts with its failed recent Origin bid and its Santos bid years ago,” MST Marquee energy analyst Saul Kavonic said.
“Breaking into the LNG game isn’t easy. EIG has found this out the hard way, notwithstanding their experienced team.”
Mr Kavonic said he expected EIG will still look to expand to a much greater scale in LNG and become a pre-eminent vehicle for diversified LNG exposure, foreshadowing further moves in the sector in Australia, one of the world’s top three exporters of the fuel.
“Australia will likely feature heavily in future ambitions, with EIG willing to bid for assets at more robust valuations than many others, driven by a more constructive price outlook,” he said.
“I expect EIG is still very interested in pursuing a stake in APLNG, and other long-life Australian LNG assets that may become available.”
Origin, whose portfolio includes a major domestic power and gas supply business as well as the interest in LNG exporter APLNG, has been coming under pressure from some investors to consider a demerger or restructuring that could result in the spin-off of its LNG interests after the scrapping of the takeover.
The biggest holding EIG has acquired in Australia involves 5 per cent of Pluto in WA, where Woodside has 90 per cent and Kansai Electric, the other 5 per cent. It now also owns 2.5 per cent of the second LNG train at QCLNG on Curtis Island in Gladstone and 1 per cent of the 15.6 million tonnes-a-year Gorgon plant on WA’s Barrow Island.
Woodside, which had been expected by some to pre-empt EIG’s purchase of the Pluto stake, said it would continue to consider its rights under the Pluto joint venture arrangements.
“Tokyo Gas was a founding participant in the Pluto joint venture and its support as an initial long-term customer of Pluto LNG was crucial to the project proceeding,” a Woodside spokeswoman said, adding thanks to the company for its “valued contribution” to the project.
Tokyo Gas retained its stake of almost 3 per cent in Santos’ Darwin LNG venture, which one source said aligned better with its renewed focus on methane production and lower-carbon fuels. Pre-emption rights held by the other partners in Pluto, Gorgon and QCLNG are thought to have expired late last year, while approval from the Foreign Investment Review Board is understood to have been secured more recently.
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Canada: Pembina Pipeline enters LNG offtake agreement with ARC Resources
(Reuters) – Pembina Pipeline said on Thursday it has entered into an agreement with Canadian firm ARC Resources, which will deliver about 200 million cubic feet (mmcf) per day of natural gas for liquefication to the Cedar LNG project.
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Under the agreement, ARC Resources will supply natural gas through the Coastal GasLink from its production base in Montney, British Columbia, for a term of 20 years commencing in 2028
Pembina, which runs the project jointly with Haisla Nation, said the total estimated cost of Cedar LNG, including interest and transaction costs, is about $4 billion. The partners are yet to make a final investment decision (FID), which is expected by mid-2024.
Cedar LNG is pursuing asset-level debt financing for about 60% of the total project cost, the company said.
Subject to a positive FID, the project is expected to generate annual run-rate adjusted core profit of $200 million to $260 million.
Canada-based Pembina also entered a bridging agreement with Cedar LNG for 1.5 million tonnes per annum of LNG capacity.
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Egypt: Eni signs Egyptian gas deal to unlock LNG supplies for Europe this year
CAIRO/MILAN (Reuters) -Eni has signed a deal to boost gas production in Egypt and boost liquefied natural gas supplies to Europe, the Italian energy group said on Wednesday. The move comes as Italy and Europe step up efforts to find alternative gas imports to cut their reliance on Russian gas as the war in Ukraine escalates.
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On Monday, Italian Prime Minister Mario Draghi clinched a deal to ramp up gas imports from Algeria to help replace some of the 29 billion cubic metres Italy receives from Russia.
Eni, which in 2015 discovered the super giant Zohr gas field in Egypt, said it had agreed with the Egyptian Natural Gas Holding Company (EGAS) to boost gas production and step up exploration at existing and new fields.
Eni said the agreement could result in shipping up to 3 billion cubic meters of LNG to Europe this year.
Eni, whose biggest shareholder is the state, holds a stake in Egypt’s Damietta LNG plant which has a capacity of more than 7.5 billion cubic meters per year.
https://ca.movies.yahoo.com/movies/eni-signs-agreement-egyptian-lng-132025273.html
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Malaysia: Petronas Starts Construction of Malaysia’s First Nearshore FLNG Facility
Malaysia’s state-owned energy company Petronas has started the construction of its nearshore floating liquefied natural gas (FLNG) unit, set to become Malaysia’s first such facility once in operation. A steel cutting ceremony for the nearshore FLNG facility was held at the Samsung Heavy Industries (SHI) Shipyard in Geoje Island, South Korea.
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This third FLNG facility by Petronas is designed to produce up to 2.0 million tonnes per annum (MTPA) of LNG and is targeted to start commercial operations by the second half of 2027.
Focusing on sustainability and innovation, the upcoming nearshore FLNG facility incorporates technologies such as energy-efficient power generation systems and aero-derivative gas turbines to reduce its carbon footprint.
Upon completion, the nearshore FLNG facility will be moored at the Sipitang Oil and Gas Industrial Park (SOGIP) and is expected to attract new investments to the area.
“Together with our partners in Sabah, we look forward to unlocking Sabah’s gas reserves in an optimized and environmentally sustainable manner, aligned with our efforts to provide energy security and position Malaysia as a key global hub for lower-carbon energy.
“The nearshore FLNG facility is our latest advancement in Floating LNG technology and the culmination of expertise that we have gained from PFLNG Satu and PFLNG Dua,” said Adnan Zainal Abidin, Petronas’ Chief Operating Officer and Executive Vice President & Chief Executive Officer of Gas Business.
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China: CHINA POWER FIRM GCL REVIVES LNG AMBITION AFTER SOLAR SPIN-OFF
SINGAPORE, April 1 (Reuters) – Privately-run Chinese power company GCL Holdings is rebuilding a natural gas business after offloading hundreds of solar installations to set up gas import capacity and a trading operation, company executives told Reuters.
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If successful, GCL would join so-called tier-two liquefied natural gas (LNG) players in China such as city-gas companies ENN and Beijing Gas Group that aim to ramp upimports of the super-chilled fuel alongside state majors to meet growing demand from the world’s top energy user
GCL’s return to gas after several years comes as global spot LNG prices LNG-AS have fallen to near three-year lows on growing supply, and as demand is set to expand in China, which reclaimed its title as the world’s top LNG buyer last year.
The group’s Hong Kong-listed unit GCL New Energy Holdings 0451.HK last month hired Xiong Xin, former vice president of ENN Natural Gas, as head of gas trading to lead a team based in Beijing that will expand to about 20 by year-end, company executives told Reuters.
Xiong, who began his LNG career at state major CNOOC, will also head a new gas trading arm in Singapore that will have about five staff in the coming months, said Xu Huilin, GCL New Energy’s executive president.
Details of GCL’s renewed push into the gas business have not previously been reported.
Once China’s largest privately-controlled solar power producer, GCL entered the gas business about a decade ago and had rights to explore for hydrocarbons in Ethiopia. By 2018 it had plans to invest billions of dollars to build five LNG receiving terminals along China’s coast.
But deep debt at its solar power generating unit, hurt by industry-wide overcapacity and Beijing’s phase-out of subsidies, hobbled its gas ambitions, Xu said.
China, the world’s largest solar power operator and manufacturer, faces a massive capacity overhang that has hit global solar material and equipment prices and sparked international dumping concerns.
GCL sold all 220 of its solar stations totalling 7.15 gigawatts, mostly to state utilities, raising around 23.5 billion yuan ($3.25 billion) by the end of 2023, a company media official said.
The group still provides management and maintenance for solar farms and has a profitable silicon manufacturing business, Xu said.
“The spin-off of the heavy solar downstream assets has enabled the group’s strategic shift back to the gas business,” said Xu, previously a vice president at state-run Sinochem Oil, who joined GCL last June.
LNG TERMINALS, GAS-FIRED PLANTS
That shift includes building two receiving terminals, marketing and international trading of gas, as well as producing and exporting gas from Ethiopia, Xu said.
GCL is building an import terminal, estimated to cost 5 billion yuan, in Rudong in Jiangsu province that can handle 3 million metric tons of LNG a year. The project, held 51% by GCL and 49% by independent oil and gas firm Pacific Energy, is slated for start-up in late 2025, said Xu and Xiong.
Pacific Energy did not immediately respond to a request for comment on the project.
A similar-sized terminal planned for Maoming in Guangdong province in which GCL will likely own a 43% stake, is pending state approval, they added.
GCL has stakes in 10 gas-fired power plants in Guangdong and Jiangsu, giving it over 2 billion cubic metres of gas demand for its trading business. It also intends to sell gas to third-party customers such as city-gas companies and ceramics makers, Xu said.
GCL is considering resuming activity in Ethiopia’s gas-rich Ogaden region, where it halted investment around 2018 after drilling 40 wells, company officials said.
One proposal is to build a 600,000 ton-per year liquefaction facility there, the officials said, with an eye to marketing fuel shipped in ISO tanks to South Asia or Europe.
“The idea is to develop the gas resource step by step, potentially bringing in strategic partners in the future to make it a sizeable LNG export project,” Xu said.
https://www.naturalgasworld.com/china-power-firm-gcl-revives-lng-ambition-post-solar-spin-off-110436
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Italy: Italy’s Piombino FSRU gets first cargo from Eni’s Congo LNG project
Snam’s Piombino FSRU-based terminal in Italy has received the first liquefied natural gas cargo produced at Eni’s Tango floating LNG facility in Congo, according to shipping data. The 2010-built 155,000-cbm LNG carrier, GasLog Savannah, was on Tuesday morning local time located at the 170,000-cbm Golar Tundra in the port of Piombino, its AIS data provided by VesselsValue shows.
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Eni said on February 27 that it was loading the first LNG cargo in the Republic of Congo, also known as Congo-Brazzaville, and that it will deliver the shipment to the Piombino FSRU-based terminal.
LNG Prime reported on March 13 that GasLog Savannah was located in the Alboran Sea off Spain and heading towards Italy.
However, the LNG carrier changed course and was anchored offshore Gibraltar the day after.
Since then, GasLog Savannah has been circling in the Mediterranean Sea and it finally arrived in Piombino on Monday, the data shows.
LNG Prime previously contacted Eni to comment on the arrival of the LNG carrier in Piombino but we did not receive a reply.
Tango FLNG
Eni introduced the first gas in December 2023 into its Tango FLNG facility. Prior to that, the unit arrived in Congo from Dubai.
The Italian firm purchased the 144 meters long Tango FLNG from Belgium’s Exmar and it also chartered the 2002-built 138,000-cbm steam turbine LNG carrier, Excalibur, to serve as an FSU for the project.
Moreover, the floating LNG producer, delivered in 2017 by China’s Wison, has a liquefaction capacity of about 1 billion cubic meters per year of gas, or 0.6 mtpa, and a storage capacity of 16,100 cbm.
Eni said the FLNG project, situated within the Marine XII permit, will achieve a plateau gas liquefaction capacity of about 4.5 billion cubic meters per annum and will mark zero flaring from operated activities in country.
Also, a second FLNG vessel with a capacity of about 3.5 bcm per year of gas, or 2.4 mtpa, is under construction in China and is expected to begin production in 2025.
Wison Offshore & Marine won a contract from Eni in December 2022 to build the 380 meters long FLNG. The unit will be able to store over 180,000 cubic meters of LNG.
The volumes produced from the FLNG project will be marketed by Eni, strengthening and expanding the company’s LNG portfolio.
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LNG as a Marine Fuel/Shipping
Qatar: QatarEnergy pens charter deals for 19 LNG carriers
LNG giant QatarEnergy said on Sunday it has signed four long-term deals with Asian shipowners to charter 19 LNG carriers as part of the second phase of its massive shipbuilding program. Qatar’s energy minister and chief executive of QatarEnergy, Saad Sherida Al-Kaabi, signed the deals during a ceremony held at QatarEnergy’s headquarters in Doha, and attended by senior executives from QatarEnergy, QatarEnergy LNG, and the four shipowner companies.
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Under the deals, state-owned QatarEnergy will charter six 174,000-cbm vessels from China’s CMES LNG Carrier Investment, six vessels from a unit of China’s Shandong Marine, Shandong Marine Energy (Singapore), three vessels from Malaysia’s MISC, and four vessels from a joint venture of Japan’s K Line and South Korea’s Hyundai Glovis.
QatarEnergy said in a statement later on Sunday that these 15 LNG carriers are being built at South Korea’s Samsung Heavy Industries.
LNG Prime reported on March 28 citing shipbuilding sources, that QatarEnergy had selected shipowners to own and operate 18 Q-Max LNG carriers and 15 174,000-cbm LNG carriers as part of the giant program.
QatarEnergy booked 15 vessels at South Korea’s Samsung Heavy Industries in February this year and Shandong Marine and CMES will each own six of these ships, while MISC will own three ships.
K Line and Hyundai Glovis
As per the four vessels QatarEnergy chartered from K Line and Hyundai Glovis, these vessels are being built at Hanwha Ocean, previously known as DSME, QatarEnergy said.
Hanwha Ocean recently signed a memorandum for 12 LNG carriers tied to QatarEnergy’s shipbuilding program and after that it secured an LNG carrier order worth about $1.84 billion for 8 carriers.
Eight of these vessels will be owned by Qatari LNG shipping giant Nakilat.
QatarEnergy signed time charter agreements on March 24 with Nakilat for 25 conventional-size LNG carriers as part of the second phase of its shipbuilding program.
Each of the 25 vessels will have a capacity of 174,000 ccbm and will be chartered out by Nakilat to affiliates of QatarEnergy under the 15-year TCP agreements.
Seventeen of the 25 LNG vessels are being constructed at the Hyundai Heavy Industries (HHI) shipyards in South Korea, while the remaining eight are being constructed at Hanwha Ocean.
Last year, QatarEnergy signed a deal for 17 LNG carriers worth about $3.9 billion with HD Hyundai Heavy, kicking off the second phase of the shipbuilding program.
104 vessels
QatarEnergy previously entered into deals with Hudong-Zhonghua and South Korea’s three shipbuilders to reserve LNG shipbuilding slots for its giant shipbuilding program.
The firm signed in 2022 a series of time charter deals for the long-term charter and operation of 60 conventional-size LNG ships, concluding the first phase of its program.
QatarEnergy now confirmed orders for 44 vessels for the second phase boosting the total to 104 ships.
According to QatarEnergy, 43 ships out of the 104 will be chartered by its affiliate QatarEnergy Trading.
Including the mentioned Q-Max LNG carriers, the number of vessels would reach 122 ships.
“Today’s signings form a significant milestone in QatarEnergy’s LNG fleet expansion program, as it marks the conclusion of the conventional sizes vessels portion of program, bringing the total number of ships for which we have signed TCPs to 104 vessels, a massive undertaking that is the largest shipbuilding and leasing program ever in the history of the industry,” Al-Kaabi said during the ceremony.
“The careful shipowner selection process followed a detailed and rigorous global tender, signifying QatarEnergy’s commitment to expanding its fleet of modern LNG carriers in collaboration with world-class shipowners and in an open and transparent manner,” he said.
North Field expansions
The shipbuilding program aims to support and meet future requirements of QatarEnergy’s North Field East and North Field South expansion projects, as well as the Golden Pass LNG project in the US.
In addition, part of the program is intended to cater for replacement requirements of the existing Qatar LNG fleet.
The first phase of the North Field expansion project will increase Qatar’s LNG production capacity from 77 to 110 Mtpa, while the second phase will further boost capacity to 126 Mtpa.
Besides these projects, the company also recently announced the third North Field expansion phase to boost Qatar’s capacity to 142 mtpa.
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Singapore: KPI OceanConnect, Pavilion Energy collaborate on first SIMOPS LNG bunkering in Singapore
Singapore-built “Brassavola” was deployed to deliver LNG bunker fuel to MSC’s container ship Monica Cristina at Tuas Container Terminal along with loading and unloading procedures.
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Global marine energy solutions provider KPI OceanConnect on Monday (8 April) said it successfully completed its first Simultaneous Operation (SIMOPS) of Liquefied Natural Gas (LNG) bunkering with Pavilion Energy in Singapore.
The LNG bunker fuel was delivered to Mediterranean Shipping Company’s (MSC) container ship Monica Cristina through bunker vessel Brassavola at an operation that took place at Tuas Container Terminal along with loading and unloading procedures.
Pavilion Energy, in a separate social media post, said the operation also marked Singapore-built Brassavola’s first SIMOPS LNG bunkering.
“Pavilion Energy is delighted to collaborate with KPI OceanConnect to complete another successful delivery of LNG to MSC Mediterranean Shipping Company’s Monica Cristina,” the firm said.
In January, Singapore-headquartered marine engineering firm Seatrium, formed by the merger of Sembcorp Marine and Keppel Offshore and Marine (KOM), announced the successful delivery of Brassavola, Singapore’s first membrane LNG bunker vessel built locally by the Group, to owner Indah Singa Maritime Pte. Ltd, a wholly-owned subsidiary of Mitsui O.S.K Lines (MOL).
Following delivery, Brassavola was chartered by Pavilion Energy to supply LNG bunker in the Port of Singapore.
The vessel will also be deployed by TotalEnergies Marine Fuels to serve its customers under a long-term agreement with Pavilion Energy.
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Japan: Japan’s first dual-fuel LNG bunkering vessel delivered to NYK and partners
KEYS Bunkering West Japan Corporation (KEYS), a joint venture established by Kyushu Electric Power, NYK Line, Itochu Enex, and Saibu Gas, has taken delivery of a newbuild LNG bunkering vessel, KEYS Azalea. The vessel is said to be Japan’s first LNG bunkering ship equipped with dual-fuel engines.
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The vessel was delivered to the joint venture partners on March 28 at the Shimonoseki Shipyard & Machinery Works’ Enoura Plant owned by Mitsubishi Heavy Industries.
The shipbuilding order for the 82.4-meter-long KEYS Azaela was placed in March 2022 and the vessel was launched in July 2023.
The LNG bunkering ship will now begin operation in the LNG coastal transportation business, in addition to LNG bunkering for oceangoing vessels calling at ports in the Kyushu-Setouchi area.
According to shipowners, this is Japan’s first initiative to supply LNG fuel to ships over a wide area from Kyushu to Setouchi.
KEYS Azalea is also the first domestic LNG bunkering vessel equipped with a dual-fuel engine that can run on both LNG and heavy oil as fuel.
The partners expect that LNG will be a bridge solution for decarbonization, virtually eliminating sulfur oxide (SOx) emissions and reducing approximately 80% of nitrogen oxide (NOx) emissions, as well as 30% of carbon dioxide (CO2) emissions.
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China: HMM Plans Methanol and LNG Fuel Distribution at Shanghai Port
HMM and Shanghai International Port Group (SIPG) have entered into a Memorandum of Understanding (MoU) to collaborate on the supply of Clean Marine fuel. This agreement focuses on facilitating the bunkering of methanol and LNG at Shanghai Port, aligning with efforts to support carbon reduction objectives, foster global cooperation in new energy for shipping, and contribute to the transformation of shipping energy towards sustainability.
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As part of its commitment to achieving a Net-Zero emissions target for its entire business by 2050, HMM recognizes the pivotal role of establishing port bunkering infrastructure for clean marine fuel. To this end, HMM is actively expanding efforts to develop sustainable eco-supply chain networks not only at Shanghai Port but also at other strategic ports such as Singapore and Busan. Moreover, HMM has recently inked new building contracts for nine 9,000TEU vessels powered by methanol, and it intends to put two 7,700TEU LNG-powered vessels into operation by the end of the current year.
SIPG, on the other hand, has been leading the charge in promoting the advancement of green and ecological ports. Since 2022, SIPG has been providing bonded LNG bunkering services to numerous shipping companies globally. Presently, all necessary preparations for green methanol bunkering at Shanghai Port have been finalized. An HMM official expressed their perspective on this collaboration with SIPG, highlighting the expansion of their green fuel supply chain in China, following similar initiatives in Korea and Singapore. They emphasized HMM’s ongoing commitment to exploring diverse avenues to adopt environmentally friendly practices.
HMM stands as a globally integrated logistics and shipping entity dedicated to delivering customer value. The company offers tailored services catering to diverse cargo types, encompassing container cargo (including dry, reefer, and special cargo) as well as bulk cargo comprising raw materials, oil, and plants. With a fleet comprising over a hundred vessels of various types, ranging from small ships to mega containerships and VLCCs*, complemented by extensive global maritime networks connecting logistics facilities worldwide, HMM possesses the infrastructure necessary to provide reliable shipping services across different locations and at any time. Moreover, our team of shipping and logistics professionals leverage their extensive experience in maritime transportation and conduct meticulous market analysis to offer optimized solutions tailored to our clients’ specific needs.
Shanghai International Port (Group) Co., Ltd. (SIPG), which manages public terminals within the Port of Shanghai, emerged as a significant specialized conglomerate following its establishment in January 2003 through the restructuring of the Shanghai Port Authority. Transitioning into a shareholding company in June 2005, SIPG subsequently made history by becoming the first of its kind to go public in China when it was listed on the Shanghai Stock Exchange on October 26, 2006. Presently, SIPG stands as the largest listed company in port operations within mainland China and ranks among the largest globally. The primary operations of SIPG revolve around port handling activities, integrated logistics services, port-related services, and investments in port infrastructure.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
China: The EV landscape in China see sales surge amid battery innovation & women in leadership roles, who restructure supply chains & navigate geopolitics
Sales of EVs in China increased by 10.5% in March this year, from March 2023, which has been attributed to discounts from BYD and initiatives such as overruling the minimum down payments for new-car purchases.
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Throughout the first three months of 2024 1.03m electric vehicles were sold, a rise of 14.7% which is the slowest quarterly growth since the second quarter of 2023, according to the China Passenger Car Association.
However, growth in China’s battery storage is expected to slow down this year, due to the low profit of energy storage.
China’s battery innovations keep EVs on the road
China is expected to add 30.1GW of new energy storage, including that for lithium ion batteries, in 2024. This is down from 34.5GW in 2023 – but it is also said that China’s new energy storage capacity installations will rise 19% year-on-year to 41.2GW, according to the China Energy Storage Alliance.
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In addition to this, fellow Chinese electric vehicle manufacturer NIO has just opened its Smart Driving Technology Center in Schönefeld, Germany. This is the first of its kind outside of China. NIO is known for developing battery swapping technology, which earned the company a spot in our Top 10: EV Tech Companies.
Battery swapping allows a driver to exchange their empty battery, with a fully charged one, to get them back on the road. China’s automotive technology leader Zhejiang Geely Holding Group has signed a strategic partnership agreement with NIO regarding battery standards, battery swapping technology, battery swapping network expansion, swappable model development and also battery asset management.
In China, women lead in the electric vehicle sector
In the modern age, the world is reorganising its supply chains, while geopolitics bring new challenges. Across the electric vehicle sector, women are ensuring operations run smoothly.
In our Women in EV in APAC, we celebrated two women who are leading the way in China’s EV sector:
Li Hong Shuan, Great Wall Motors
In 2022, Li Hong Shuan joined the company as the Chief Financial Officer and Director. Before this, she worked at Baoding Great Wall Holdings, as the Assistant to the Head of Finance and Chief Financial Controller.
Wei Mei, Geely
Wei Mei is the Senior Vice President and COO of Geely Holding Group, as well as an Executive Director of Geely, which she joined in 2009. In her role, leads group operation management, digitalisation and IT-related business. Wei studied Master of Management in 1999 at Ocean University and received a Doctorate in Management from Northwest A&F University in 20
https://evmagazine.com/charging-and-infrastructure/battery-innovation-female-leadership-in-chinas-ev-sector
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