NGS’ NG/LNG SNAPSHOT – Apr 16-30, 2023

National News Internatonal News


City Gas Distribution & Auto LPG

CONCOR orders 100 LNG trucks at Blue Energy Commercial Vehicles

NEW DELHI : Container Corporation of India Ltd (CONCOR) has placed an order for 100 liquefied natural gas (LNG) trucks at Pune-based Blue Energy Commercial Vehicles Pvt Ltd as the state-owned company takes first steps to cut hazardous emissions and align with the government’s larger climate change goals.

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Separately, Concor has ordered 100 trailers at Raigarh, Chhattisgarh-based Jagdamba Trailers Pvt Ltd, that will carry the steel containers on the LNG trucks, sources said. Concor declined to divulge details of the order. During the earnings call on the third quarter financial results held on 24 January, V Kalyana Rama, Chairman and Managing Director, Concor, revealed the company’s plan to introduce LNG trucks for the first and last mile movement of containers.

“We will be experimenting with LNG transfers at our major hub Kathuwas and then we will be expanding it to all the terminals,” Kalya Rama said on 24 January.

All these new things we are bringing…because the demand is there in domestic sector and also to encourage more and more domestic traffic into containers and to add value-added services and to make it a complete business solution which will increase our margins so that the overall margin pressure will not be too much,” he added.

A zero-emission truck technology start-up, Blue Energy Commercial Vehicles – known by its brand name Blue Energy Motors – is a portfolio company of Exponentia Ventures, a Dubai-based fund run by Anshuman Ruia, a second generation of the Ruia family that founded Essar Group.

FPT Industrial, the global Powertrain brand of Iveco Group, has a minority stake in Blue Energy Motors.

Globally, logistics contributes to 14-15 percent of carbon emissions and in that the contribution of heavy-duty trucking is about 90 percent.

The trucking industry is one of the most significant polluters, producing up to 450 million tonnes per annum of CO2, as well as significant noise, particulate matter, and pollutants each year.

Therefore, LNG trucks are poised to upend the sector and hasten the shift to “green transportation, Blue Energy said on its website.

Compared to diesel trucks, an LNG truck emits up to 28 percent less carbon dioxide (CO2) and up to 30 percent less noise. It can also raise an organization’s scores on the environmental social and governance (ESG) ratings.

When appropriately utilised with trained drivers, LNG trucks have the potential to reduce particulate material (PPM) by up to 91 percent.

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

LNG Trucks have seen a great deal of success in the Chinese and European markets.

India is looking to transition to a gas-based economy by 2030, increasing gas’s current share of the energy mix from 6 percent to 15 percent.

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City gas distribution networks achieve tenfold increase in districts’ coverage

New Delhi: The government on Monday said its city gas distribution (CGD) networks achieved a tenfold increase in its districts’ coverage, which grew from 66 in 2014 to 630 in 2023.With this, the number of domestic PNG connections from a merely 25.40 lakh in 2014 went up a whopping 103.93 lakh in 2023.

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The government said 78 lakh PNG connections provided in the last nine years, according to a statement from the Ministry of Information and Broadcasting.The city gas distribution (CGD) networks are an interconnected system of underground natural gas pipelines for supplying piped natural gas (PNG) and compressed natural gas (CNG).

While CNG is predominantly used as auto-fuel, PNG is used in domestic, commercial and Industrial segments. These networks are a part of the government’s efforts to promote sustainable growth and to reduce greenhouse gas emissions and pollution.According to the statement, this creation of a natural gas ecosystem is in sync with the government of India’s thrust on promoting a gas-based economy that will reduce environmental pollution and act as a catalyst for overall economic development.The central government is promoting alternative fuels which inter alia include Liquified Natural Gas (LNG), Green Hydrogen, Compressed Bio-Gas (CBG), ethanol, for the reduction in greenhouse gas emissions. City Gas Distribution Network takes massive strides to offer convenient and affordable fuel.

A strong emphasis has been laid on the expansion of city gas distribution (CGD) networks across the country, with a potential to make gas accessible to over 70 per cent of the population, according to the website of the Ministry of Petroleum and Natural Gas. The distribution networks would enable the supply of cleaner cooking fuel, like, PNG, to households, industrial and commercial units as well as transportation fuel such as CNG to vehicles.

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Assam CM Himanta Biswa Sarma opens CNG station, gas pipeline in Golaghat

GUWAHATI: Chief minister Himanta Biswa Sarma on Friday inaugurated the CNG station and gas pipeline at Hazarigaon well site at Naharbari in Golaghat district as a part of state government’s step towards popularising green energy in the state

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Sarma, in a tweet, said, “Setting up of CNG stations is a step towards popularising green energy in Assam. In the past two years, there is peace and a positive atmosphere in our state. We will be soon able set new milestones in industrialisation in Assam.”

Gas from the Hazarigaon block will be one of the prime contributors to the 100 CNG buses initiative run by the state government in Guwahati and will also support tea growers across the state.

Cairn Oil & Gas has signed a gas sales agreement with Assam Gas Company Limited (AGCL) to sell 3.5 million standard cubic feet per day (MMSCFD) of gas from the Hazarigaon field.
Cairn Oil & Gas stated that the Hazarigaon filed awarded in the DSF-II auction is the first Discovered Small Fields (DSF) block in the northeast.Commenting on the new production asset, Nick Walker, CEO of Cairn Oil & Gas, said, “We are delighted to become the first company to commence operations from a DSF block in the northeast region.”

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Karnataka struggles to meet Centre’s PNG target

With the upcoming elections, the public is anxiously seeking assurance from candidates about obtaining piped natural gas (PNG) connectivity to their apartments or houses in their respective localities.

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As PNG, which is cheaper and more convenient than LPG cylinders, gains popularity, the state government has drafted a new policy on City Gas Distribution (CGD) aimed at clearing hurdles that hinder the expansion of the gas pipeline network and increasing gas utilisation in the state.

The policy gains significance as Karnataka lags behind the Centre’s target of achieving 92 lakh PNG connections to households in the next seven years, and the Government of India (GOI) aims to increase the share of natural gas in the country’s primary energy mix from 6.2 per cent to 15 per cent by 2030.

Some key features of the policy include uniform permission charges in the state for laying gas pipeline networks, similar to the permission charges for laying optic fiber cables already fixed by the state, time-bound granting of permissions for laying gas pipelines, making available Civic Amenity (CA) land for CNG infrastructure (such as CNG dispensing stations, City Gate Stations, DRS, etc) after receiving applicable payments, banning polluting fuels in industrial areas, and promoting CNG vehicles in the state.

According to a CGD expert, “Some provisions, such as time-bound grant of permissions, are currently applicable only to GAIL Gas Ltd, which operates in districts such as Bengaluru (Urban & Rural) and Dakshina Kannada. While this has helped GAIL Gas to meet its Minimum Work Programme (MWP) in Bengaluru, the seven other entities, including BPCL, Maharashtra Natural Gas Limited (MNGL), AG&P, Mega Engineering Ltd, Indian Oil Adani Gas Ltd, Adani Total Gas Ltd, Unison, etc, whose geographical areas cover the rest of Karnataka, have not made much progress due to various hindrances faced by them in the districts.”Like water and electricity, CGD projects are categorised as public utility projects.”PNG and CNG are considered economic, eco-friendly, safe, and convenient fuels, but the general public has yet to reap these benefits due to the delay in expanding the network. We believe the new policy will address existing gaps. It will also help the state address the problem of carbon emission,” said the expert.

The CGD entities have been requesting the state government to come up with a policy by taking cues from other states that have come up with progressive policy measures to support the CGD project.

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Cairn Oil & Gas commences gas flow from Hazarigaon field in North-Eas

Cairn Oil & Gas, a unit of Vedanta Ltd, on Friday said it has commenced test production from its Hazarigaon field in Assam that it had won in a discovered small field (DSF) bid round. “The gas produced by Cairn Oil & Gas is evacuated through a main trunk pipeline, and a gas cascading system to AGCL,” the firm said in a statement.

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“The gas evacuation from the field will be used by tea growers among other industries.” Additionally, the gas cascading system will enable gas from Hazarigaon to be a prime contributor in fueling 100 CNG buses that will be plying in Guwahati as part of the clean energy initiative of the Government of Assam. Commenting on the new production asset, Nick Walker, CEO of Cairn Oil & Gas, said, “We are delighted to become the first company to commence operations from a DSF block in the North-East region. The region holds significant potential and is a key focus for us at Cairn Oil & Gas as we move towards our goal of doubling production and supporting energy security for the country.”

Assam, he said, has a significant potential for unlocking hydrocarbon reserves and with government support, infrastructure, and fast-tracked approvals to continue exploration activities, the region can support India’s vision to be self-reliant in oil and gas. The company plans to drill 5 to 10 exploration wells in the next two years across the Golaghat, Jorhat and Tinsukia districts of Assam. Cairn holds 7650 square kilometres of acreage in Assam-Arakan Basin with 12 Open Acreage Licensing Policy (OALP) and 3 Discovered Small Fields (DSF) blocks.

“The acreage has a significant resource potential of up to 1 billion barrels of oil equivalent,” the statement said. Cairn has also conducted large-scale airborne gravity magnetic and seismic survey for exploration. Cairn Oil & Gas entered into a gas sales agreement (GSA) with AGCL that laid down the infrastructure for distribution of cleaner fuel to the industry through pipelines. The company is working closely with AGCL and other infrastructure companies to make gas accessible to industries in Assam. “By the end of April, evacuation of gas in Hazarigaon is expected to ramp up as tea industry demand increases,” it added.

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Natural Gas/ Pipelines/ Company News


PM Narendra Modi hails gas pipeline under Brahmaputra

PM Narendra Modi hailed the major milestone in the Northeast Gas Grid project with the construction of a 24-inch-diameter natural gas pipeline through the HDD method under the Brahmaputra River.

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NEW DELHI: Prime Minister Narendra Modi hailed the major milestone in the Northeast Gas Grid project with the construction of a 24-inch-diameter natural gas pipeline through the HDD method under the Brahmaputra River today.

Sharing a tweet by the Ministry of Petroleum and Natural Gas about setting a record for the longest hydrocarbon pipeline river crossing in Asia and the second-longest in the world, the Prime Minister tweeted: ”Exemplary!”

According to sources, the natural gas pipeline will link Jorhat and Majuli, marking a significant milestone in constructing the Northeast Gas Grid to connect the Northeast to the national gas grid. With the completion of the Brahmaputra HDD, Indradhanush Gas Grid Ltd. has achieved more than 71 percent physical progress on the Northeast Gas Grid Project.

The length of the pipeline across the main water channel of the Brahmaputra river is 4080 metres. The total cost of the project is Rs 9265 crore.

Indradhanush Gas Grid Ltd. is a joint venture between IOCL, ONGC, GAIL, and OIL. It is implementing the North East Gas Grid Project connecting the major cities and demand centres on the Northeast with the National Gas Grid.

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MGL to expand into CBG, LNG & EV segments

In a bid to diversify its portfolio, state-run city gas distributor (CGD) Mahanagar Gas Ltd (MGL) is planning to expand into business areas other than city gas distribution (CGD), a senior executive said.

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The company is planning to enter the compressed biogas (CBG) segment, the electric vehicles market, equipment manufacturing for CGD companies and retailing LNG as fuel for long-haul transportation.

“We have some cash on our balance sheet and we would like to expand our portfolio in terms of seeing how we can make its best use,” said Ashu Shinghal, managing director, MGL. “Our net worth is around ₹4,000 crore. We are a zero-debt company, so we can also take a loan in case required,” added Shinghal.

Last month, MGL acquired 100 percent shareholding of Unison Enviro Pvt. Ltd. (UEPL) for ₹531 crore to enter new geographical areas for pursuing inorganic growth opportunities. MGL said Unison Enviro would become a subsidiary and would be rebranded.

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Reliance Industries Ltd to pump up more gas

Reliance and its partner, UK supermajor BP, are now nearing start of production from their giant MJ deep-water project

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Reliance Industries Ltd will commence natural gas production from its deepest discovery in the KG-D6 block this quarter, meeting 15 per cent of India’s gas demand.

KG-D6 off the Andhra coast is India’s only deepwater block under production.

The block averaged 20 million standard cubic meters per day (mscmd) of production in the January-March quarter, the company told investors post-presentation of the March quarter earnings.

Reliance and its partner, UK supermajor BP, are now nearing the start of production from their giant MJ deep-water project, which will significantly boost gas output from the prized east coast asset.

“MJ field is expected to commence production in 1Q FY24 (April 2023 to March 2024),” it said.

The company, which is the operator of the block, earlier planned to start production in the December quarter, but it was delayed by three months.

Reliance and BP are spending about $5 billion on further developing KG-D6 through three different projects, aimed at rejuvenating gas production from the offshore asset. While the first two developments — R-cluster and Satellite Cluster — have started gas production, MJ is now nearing completion.

Start of MJ will take KG-D6 gas production to 30 mscmd in FY24, Reliance said in the presentation.

“Testing and commissioning underway in the MJ field,” it said. “One well opened as part of the ongoing testing of the integrated production system.”

The company has already sold 6 mscmd of gas to companies in the city gas, power and fertiliser sectors.

The two partners plan to use a floating production system at high-sea in the Bay of Bengal to bring to production the deepest gas discovery in the KG-D6 block.

The MJ-1 gas find is located about 2,000 metres directly below the Dhirubhai-1 and 3 (D1 and D3) fields —the first and the largest fields in KG-D6 block. MJ-1 is estimated to hold a minimum of 0.988 trillion cubic feet of contingent resources.

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Urja Ganga pipeline benefits cheaper rates to consumers

The “Urja Ganga” pipeline, which is India’s largest initiative to bring environmentally friendly gas to hitherto untapped regions, has brought the advantages of cheaper natural gas costs to the hinterland, aiding in the expansion of the use of the cleaner fuel, according to official sources.

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Since only the Western and Northern regions of the country had pipelines connecting the fuel’s source to consumers, natural gas was previously only available in these regions for use as a fuel to produce electricity, fertiliser, or convert into CNG and cooking gas.A 2,655-km pipeline that would run from Jagdishpur in Uttar Pradesh to Haldia in West Bengal, Bokaro in Jharkhand, and Dhamra in Odisha began construction in October 2016.

To transport the petroleum to previously unconnected states in the East, a 726 km line from Barauni in Bihar was constructed to Guwahati in Assam.

The Pradhan Mantri Urja Ganga pipeline, also known as the Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL), is now prepared to deliver gas to the eastern states of Bihar, Jharkhand, Odisha, and West Bengal, according to official sources.

Following the government’s decision to lower the price of input natural gas, has enabled consumers in these areas to reap the benefits of lower CNG and piped cooking gas prices. Consumers in 20 hinterland towns and cities have now benefited from a rate cut of about Rs 5-7.The least expensive way to transport gas is by pipeline. According to sources, the state-owned gas utility GAIL (India) Ltd was given permission to lay JHBDPL in order to transport gas to the eastern states of India. For JHBDPL’s construction, the government paid a viability gap funding of 40 per cent, totalling Rs 51.76 billion.

Additionally, GAIL is building the Barauni-Guwahati pipeline as part of JHBDPL. This pipeline will serve as a source for the North East Gas Grid and is being built with 60 per cent viability gap funding, or Rs 55.59 billion, in order to connect all of the North Eastern states to natural gas sources and supply gas to all areas of the nation.

The Pradhan Mantri Urja Ganga pipeline will link all of the regions (more than 90) that are dispersed over the Indian states of Uttar Pradesh, Bihar, Orissa, West Bengal, and farther to the country’s north-eastern region.With the completion of this project, they claimed, the North Eastern and Eastern regions of India will become an essential element of the gas-based economy, enjoying the advantages of both the cheapest gas transportation via Urja Ganga and gas pricing reforms.

The transportation rate has been reduced by almost 50 per cent to Rs 99.90 per million British thermal units for the eastern sections under the unified pricing regulations recently announced by the industry regulator Petroleum and Natural Gas Regulatory Board (PNGRB), making the clean fuel cheaper.

The updated domestic natural gas pricing rules for gas generated from nominated fields controlled by the state-owned Oil and Natural Gas Corporation (ONGC) and Oil India were approved by the Cabinet Committee on Economic Affairs last week.

The cost of such natural gas shall be announced on a monthly basis and shall equal 10 per cent of the monthly average of the Indian crude basket. There will be a floor price and a ceiling for gas generated from ONGC/OIL’s nomination fields. As a result, petrol is now less expensive per mmBtu, at $ 6.5 instead of $ 8.57.They added that the reforms will result in a significant drop in the cost of compressed natural gas (CNG) for transportation as well as piped cooking gas for homes, as well as a reduction in the burden of fertiliser subsidies and support for the domestic energy sector.

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Policy Matters/ Gas Pricing/ Others

New pricing norms cut earnings downside for gas producers: S&P

New Delhi: India’s new gas pricing regime will offer greater downside protection for earnings of gas companies such as Oil and Natural Gas Corp (ONGC) and Oil India Ltd, S&P Ratings said on Friday. The new norms will not affect the pricing for gas produced from difficult fields that companies like Reliance Industries Ltd operate.

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Under the new guidelines announced on April 6, 2023, the government will set prices for domestically produced gas on a monthly basis; the rate will be 10 per cent of the average price of the Indian crude basket in the preceding month. The price will have a floor of USD 4 per million British thermal unit (mmbtu) and a ceiling of USD 6.5 per mmBtu.

“We expect the new gas pricing terms to result in more fluid market price revisions,” said S&P Global Ratings credit analyst Shruti Zatakia.

Under the earlier regime, prices were reset semi-annually and were linked to gas prices in key international trading hubs.

The pricing mechanism for gas production from deep water, ultra-deep water, high-temperature, and high-pressure fields is unchanged. This means companies such as ONGC and RIL that operate such fields will maintain marketing and pricing freedom, subject to a ceiling price that is revised semi-annually.”The floor price means ONGC will be able to generate a minimum of USD 4 per mmBtu on its gas production even if international natural gas prices decline to historical lows. The company’s realizations averaged USD 2 per mmBtu-USD 3 per mmBtu during low hydrocarbon prices in 2020,” S&P said in a statement.

The price ceiling will restrict earnings’ upside for ONGC, particularly amid current elevated prices. The price cap of USD 6.5 per mmBtu for the next two years is lower than the administered price of USD 8.57 for October 2022-March 2023. In contrast, the ceiling price for output from difficult fields remains unchanged at USD 12.11 per mmBtu for April 2023-September 2023.The gas pricing reforms are intended to ensure more stable and affordable gas prices, and therefore fuel demand for natural gas. They also align with India’s ambitions of increasing the share of natural gas in the energy mix to 15 per cent by 2030 from 6.5 per cent now. Gas accounts for almost 50 per cent of ONGC’s production volume.”We believe the gas price reforms and the currently favourable crude oil prices will incentivise ONGC to scale up capital investments over the coming 12-18 months,” said Zatakia.

“This will be critical given the company’s crude oil production has been hit by ageing oilfields and delays and cost escalations on new discoveries.”Geopolitical issues in international markets in fiscal 2023 (ended March 31, 2023) exacerbated the problem. The new guidelines allow ONGC and OIL to charge a premium of 20 per cent over the administered price for gas produced from new wells and from technology interventions in existing wells.

ONGC will likely maintain some cushion in its current stand-alone credit profile (SACP) assessment of ‘BBB+’.”Under our forecasts, the company’s ratio of funds from operations to debt ratio will be 45-50 per cent in fiscal 2024 and fiscal 2025 under the new price regime. This is even if international crude oil prices retreat to mid-cycle levels of about USD 55 per barrel. ONGC is also unlikely to breach our 40 per cent threshold for a lower SACP even if its annual capital expenditure is Rs 50,000-55,000 crore in such a scenario over the period,” S&P said.

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Hardeep Singh Puri confident of meeting 20 % ethanol blending target next fiscal

Oil minister Hardeep Singh Puri on Monday exuded confidence of meeting the target of supplying petrol mixed with 20 per cent ethanol by 2025, five years earlier than the previously planned roll-out in 2030. Petrol blended with 20 per cent ethanol was rolled out at select petrol pumps in 11 states and Union Territories in February as part of a programme to increase use of biofuels to cut emissions as well as dependence on foreign exchange-draining imports.

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At present, 10 per cent ethanol is blended in petrol (10 per cent ethanol, 90 per cent petrol) and the government is looking to double this quantity by 2025. “I am sure we will be able to supply 20 per cent ethanol blended petrol by next (fiscal) year,” he said.

India saved as much as Rs 41,500 crore in forex outgo from 10 per centblending besides benefiting the farmers, he said at a biofuels conference here.Puri said India achieved blending of 10 per cent ethanol in petrol in June2022, five months ahead of the schedule.”We also advanced the availability of E20 blended petrol to 2025, five yearsfrom earlier planned in 2030,” he said.Use of ethanol, extracted from sugarcane as well as broken rice and other agriproduce, will help the world’s third largest oil consumer and importingcountry cut its reliance on overseas shipments. India currently is 85 per centdependent on imports for meeting its oil needs. Also, it cuts carbon emissions.

Use of E20 leads to an estimated reduction of carbon monoxide emissions byabout 50 per cent in two-wheelers and about 30 per cent in four-wheelerscompared to E0 (neat petrol). Hydrocarbon emissions are estimated to reduceby 20 per cent in both two-wheelers and passenger cars.India spent USD 120.7 billion on import of crude oil in 2021-22 fiscal (April2021 to March 2022). During first 11 months of 2022-23 fiscal it spent USD211.6 billion on crude oil imports.As much as 440 crore litre of ethanol was blended in petrol during the supplyyear ending November 30, 2022. For the next year, 540 crore litresprocurement is being targeted with an eye to start larger volumes of blending.The target of achieving average 10 per cent blending was achieved in June,2022, much ahead of the target date of November, 2022. Encouraged by thesuccess, the government advanced the target of 20 per cent ethanol blendingin petrol from earlier 2030 to 2025.

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LNG Use / LNG Development and Shipping

Gas-based power plants ready to meet peak demand

By Manish Gupta

Gas-based power plants are ready to meet any power deficit during the peak demand period this summer, and availability of natural gas is being ensured by state-owned GAIL India and country’s top gas importer Petronet LNG Ltd

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Both GAIL and Petronet have issued several tenders to import liquefied natural gas (LNG) last week for deliveries in May and June. Sector analysts believe the underutilised gas-based power plants will be used to fill any shortage.

“Idea is to improve the energy generation so as to meet the spike in the energy demand that we are anticipating because of the heat wave… You may see some improvement in capacity utilisation of gas-based power plants.

“To meet the peak deficit, respective utilities can tap this (gas) power on high price day ahead basis from the power exchange market,” said Girishkumar Kadam, senior vice president and co-group head, ICRA.

India’s electricity demand saw an all-time of 218 GW last week on April 18, of which the power sector could meet record demand of 216 GW, leaving a deficit of 2,021 MW. Last year, the highest demand met was 212 GW on June 10.

Gas-based power plants of NTPC Ltd, India’s largest power producer, are all set to start power production when required, an official said. NTPC has 6,511 MW of gas-based power capacity and has assured gas supply from GAIL.

While NTPC is directed by the ministry of power to run 5,000 MW gas-based power stations during the crunch period, its subsidiary NTPC Vidyut Vyapar Nigam Ltd will procure 4,000 MW gas power from other state-run plants.

There are more than 60 gas-based power plants in the country with a total capacity of about 25 GW, which is slightly above 6% of India’s total installed power generation capacity. The government wants the share to rise to 15%.

However, 28 gas-based plants with about 10 GW capacity had zero generation and the overall plant load factor (PLF) of all gas-based power plants was below 15% in FY23 due to lack of domestic gas and high price of imported gas.

With barely half of the current gas consumption coming from local production, which mostly feeds the fertilizer sector and city gas distributors, dependence on gas-based power plants can only be interim and not a long term solution.

“Gas-based power plants can only provide temporary relief during the summer months. Imported gas is not favourable in terms of cost economics,” said Kadam.

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India’s Dhamra LNG Terminal Receives First Cargo

Total Energies said Monday its co-owned Dhamra LNG terminal in the Indian state of Odisha had received its first liquefied natural gas (LNG) cargo ahead of startup, a project recently overshadowed by fraud allegations against partner Adani Group.

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“This delivery enables the gradual commissioning of the terminal, which is expected to start commercial operations at the end of May 2023”, the French energy giant said in a press release.

TotalEnergies has acquired the Dhamra facility and other Adani Group assets in a partnership deal it announced 2019. Adani Total Pvt. Ltd., a 50-50 venture between TotalEnergies and Adani Group, operates the terminal on the east coast of India.

While the Dhamra project has progressed toward startup, TotalEnergies earlier said it had paused a transaction to buy an interest in Adani New Industries Limited following allegations of stock manipulation and accounting fraud against Adani Group.

“With regasification capacity of 5 million metric tons of LNG per year, the Dhamra LNG terminal adds more than 10% to India’s regasification capacity, strengthening the country’s position as the world’s fifth largest LNG importer and allowing it to increase the share of natural gas in its energy mix from 8% to 15% by 2030 to reduce its carbon intensity”, said Monday’s announcement of the consignment from Qatar.

Thomas Maurisse, TotalEnergies senior vice-president for LNG, commented, “India wants to develop the use of natural gas to reduce the carbon intensity of its energy mix by replacing coal, and LNG can therefore meet growing domestic demand”.

The partnership with Adani Group that TotalEnergies unveiled 2019 involves two LNG depots and Adani Gas Ltd., “one of the 4 main distributors of city gas in India of which Adani holds 74.8% and of which Total will acquire 37.4%”, the Paris-based company said in a news release October 14, 2019. TotalEnergies will supply LNG to Adani Gas, now Adani Total Gas, as part of the deal. A joint venture with Adani Group is also planned to market LNG in India and Bangladesh.

The acquisitions amounted to a net cost for TotalEnergies of around $600 million over 2019 and 2020, TotalEnergies said in the partnership announcement.

Adani Troubles

TotalEnergies and Adani Group broadened their relationship in 2020 with the former acquiring a 20 percent minority interest in Adani Green Energy Ltd. (AGEL23) and a 50 percent stake in AGEL’S solar assets.

But TotalEnergies said it was delaying its purchase of a 25 percent interest in Adani New Industries Ltd., after India’s Supreme Court ordered an investigation into Adani Group over revelations by Hindenburg Research.

USA-based Hindenburg Research, which describes its work as “forensic financial research”, published January 24 what it said were the results of a two-year probe in which it found Adani Group “has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.

Adani Group said the report by Hindenburg Research was “unsubstantiated”. It said in a January 26 statement it was examining remedial and punitive options under Indian and USA laws.

An article by French newspaper Le Monde published March 23 stated that Hindenburg Research founder Nathan Anderson “believes TotalEnergies has ‘at best turned a blind eye, and at worst, been complicit’ to the ‘issues’ of Adani Group in connection with the manipulation of the share price of two of its subsidiaries”.

TotalEnergies dismissed the French report. It said in a statement the same day, “TotalEnergies invested in Adani Gas to develop our LNG sales in India, not to generate stock market gains. The share price trend was therefore never a consideration for TotalEnergies, and it had no impact on the strategy or financial performance of Adani Gas, since the company did not issue any new shares” when TotalEnergies bought a 37.4 percent interest in Adani Gas in 2019.

TotalEnergies earlier said in a statement February 3 its assets in Adani Group businesses represented only $3.1 billion or 2.4 percent of the French company’s employed capital as of year-end 2022.

TotalEnergies said Adani Group’s difficulties posted no reason for the former to “halt assets in production or projects under construction” in India.

“Our investment in India is industrial, not financial”, it insisted in its reply to Le Monde.

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GAIL(India) seeks LNG cargo for May delivery to Dhamra terminal

NEW DELHI : GAIL (India) has issued a swap tender offering one liquefied natural gas (LNG) cargo for loading in the United States in exchange for another cargo for delivery to India, according to sources.

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India’s largest gas distributor is seeking the cargo for delivery on a delivery ex-ship (DES) basis at the Dhamra terminal between May 16-25.

It is offering the cargo for May loading from the Sabine Pass terminal, also on a DES basis, the sources said, adding that the tender will close on April 13.

Adani Total, in which French oil and gas major TotalEnergies has a 50 per cent stake, has a 20-year take-or-pay contract to provide regasification services to state-run Indian Oil Corp (IOC) for 3 million tonnes of LNG per year at the Dhamra terminal. GAIL has a similar deal for 1.5 million tonnes per year.

The terminal received its first LNG cargo on April 1, Karan Adani, Chief Executive of Dhamra Port owner Adani Ports and Special Economic Zones, said in a LinkedIn post.

In March IOC issued a tender seeking eight LNG cargoes to be delivered to the Dhamra terminal between June 2023 and May 2024.

GAIL has 20-year deals to buy 5.8 million tonnes a year of US LNG split between Dominion Energy‘s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana

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India looks to procure more LNG as heat wave boosts power demand

India is looking to procure more natural gas from abroad as a heat wave pushes the nation’s power demand to record levels.

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Companies including GAIL India Ltd. and Petronet LNG Ltd. released several tenders this week to buy liquefied natural gas shipments for delivery from early May to June, according to traders with knowledge of the matter. Some of that gas will go to power generation, they said.

The move is abnormal, since gas makes up a small portion of India’s coal-dominated power mix, and indicates the nation is working to ensure electricity keeps flowing to customers. Peak demand hit an all-time high earlier this week as blazing summer temperatures forced citizens to crank up their air conditioning.

Heat wave warnings are in place for parts of the nation’s east including Odisha, according to a bulletin from the India Meteorological Department. Maximum temperatures were in a range of 40C-44C (104F-111F) over many parts of the eastern region on Thursday, the bureau said.

NTPC Ltd., India’s largest electricity producer, was asked by the government to increase gas-fired power generation to meet peak demand during April and May. Gail is being tapped to help secure the fuel, Bloomberg reported last month. The company already purchased an LNG shipment for early May this week.

India started to buy more LNG from the spot market this year due in part to a slump in prices. With assistance from Ben Sharples/Bloomberg

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Electric Mobility/ Hydrogen/ Bio- Methane

IGGL completes Asia’s largest underwater hydrocarbon pipeline across Brahmaputra: CEO

Guwahati: Asia’s largest underwater hydro-carbon pipeline, below the river Brahmaputra connecting Jorhat and Majuli in Assam has been completed by the Indradhanush Gas Grid Limited (IGGL), the company’s CEO Ajit Kumar Thakur said on Saturday.

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The challenging task of laying a 24-inch diameter hydrocarbon pipeline beneath the mighty Brahmaputra river by Horizontal Directional Drilling (HDD) method was completed on Friday, marking the completion of a major milestone in the construction of the North East Gas Grid (NEGG) connecting North East India to the National Gas Grid.

The total length of the pipeline in this single HDD crossing is 4,080 metre across the main water channel of Brahmaputra river.

This is the longest river crossing by any hydrocarbon pipeline of size 24-inch diameter and above in Asia and the second longest in the world, he claimed.This one of a kind HDD river crossing was executed by intersection method, where two HDD rigs simultaneously started drilling from the two sides of Brahmaputra with intersection of the two drilling heads in the middle at 30 metre beneath the river bed.

The laying of 4,080 metre pipeline section was completed by overcoming numerous hurdles faced mainly due to monsoon rains and flood, he said.

The total length of HDD crossing across the Brahmaputra river considering all major and minor water channels is 5,780 metre.

The pipeline was laid in three separate HDD sections of length 1000 M, 4080 M and 700 M with the first and the third sections completed earlier.

The next step will be tie-in of the three sections at two points, which will be located at 15 M and 8 M below Natural Ground Level (NGL).

“With the completion of the Brahmaputra HDD, IGGL has achieved more than 71 per cent physical progress of the NEGG Project and will be able to complete the Guwahati-Numaligarh section of the project by February 2024”, Thakur said.

He thanked the Assam government for being extremely supportive in implementing the project.

Indradhanush Gas Grid Limited, is a joint venture company of five major Oil PSUs – IOCLONGCGAIL, OIL and NRL. It is implementing the North East Gas Grid Project connecting the major cities and demand centres of North East India with the National Gas Grid.

The 1656 km long natural gas pipeline is constructed at a project cost of Rs 9,265 crore.

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All-electric MG Comet EV launched in India

The much-awaited MG Comet electric car is now officially on sale in India at Rs 7.98 lakh ex-showroom. The MG Comet EV is the carmaker’s second all-electric offering after the MG ZS EV, which was first launched in 2020. With the Comet, MG is targeting the mass market.

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The MG Comet features a quirky design, with a boxy overall look, small wheels, a large windscreen, rectangular windows, and vertically stacked headlights. The Comet is sure to stand out compared to any other car in the Indian market today.

Bookings for the MG Comet will commence from May 15 and deliveries will begin the same month itself, however, in select cities.

Targeted to be an urban commuter, the MG Comet EV gets a 17kWh battery pack that offers a range of 230km. The car is powered by an electric motor on the rear axle and takes around 8.5 hours to charge fully with an AC charger.

The MG Comet’s primary rival in the Indian market will be the Tata Tiago EV, which is powered by a 19.2kWh battery pack, or a larger 24kWh pack, which offers a range of over 300km. However, unlike the Comet, the Tiago EV features fast charging, which can juice up the battery to 80 percent in 57 minutes.

However, MG is clear that the Comet is targeted at customers in the city and is not for those who travel more than 100km every day and for those who go on long trips.

Inside, the MG Comet EV gets two 10.25-inch displays, one being the infotainment system and the other an instrument cluster. The Comet offers wireless smartphone connectivity, connected car tech, over 100 voice commands, and the ability to use your smartphone as the key.

The carmaker also offers several personalisation kits in the form of bodywork and decals to make the Comet stand out from not just any other car, but other Comets as well.

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Natural Gas / Transnational Pipelines/ Others

US: Biden administration OKs Alaska natural gas exports, drawing progressive ire

The Biden administration on Thursday greenlit natural gas exports from a facility in Alaska, drawing ire from progressives who were already frustrated over the administration’s prior approval of a major oil drilling project in the state.

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The Energy Department reaffirmed a Trump-era decision to allow a company called Alaska LNG to export liquified natural gas (LNG) produced in the state to countries with which the U.S. doesn’t have a free trade agreement.

The department had previously agreed to a request from the Sierra Club to conduct further study of the project’s environmental impacts, saying that it would either reaffirm, alter or “set-aside” the Trump-era order.

It ultimately found, however, that the environmental impacts it identified “are not sufficient” to change the past determination approving the exports.

But it does add an environmental stipulation: Alaska LNG will have to certify every month that it did not use a practice called venting in which excess gas is released into the air and contributes to climate change.

In a statement, the department characterized its move as “amending a 2020 decision to impose new environmental requirements.”

But the reaffirmation still rankled both environmental advocates and congressional progressives.

“Allowing LNG exports is yet another way @POTUS is putting our kids’ futures in jeopardy,” tweeted Rep. Jamaal Bowman (D-N.Y.)

“The recent choices of this administration have been reckless, irresponsible, and uninformed. Our kids deserve a livable future and you are throwing it away.”

It comes after the Biden administration last month approved the Willow Project – which will allow ConocoPhillips to drill for 576 million barrels of oil in Alaska over a 30-year period.

“This is not the climate presidency that Joe Biden promised,” said Lukas Ross, program manager at Friends of the Earth. “Does the administration intend to rubber stamp a carbon bomb every month?”

Last year, the Biden administration also expanded LNG exports to Europe as part of an effort to counter Russia, the world’s second largest producer of natural gas.

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Finland: Eesti Gaas signs agreement to buy Latvian gas network

Eesti Gaas will acquire the Latvian gas distribution network owned by Gaso, a subsidiary of Latvijas Gaze, for €120 million.

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Eesti Gaas, the largest privately owned energy company in the Baltic and Finnish region, signed an agreement on Friday.

The transaction is subject to approval from the Latvian Competition Authority and permission from the Latvian government, as Gaso is considered a strategic asset.

The Latvian gas network is almost four times larger than Estonia’s, serving about 400,000 consumers, Ain Hanschmidt, chairman of the board of Eesti Gaas, said in a statement.

“We see a future in gas and know how to do this business and grow it. We hope that we can share our experience as a gas network operator and that the change of ownership will help the company continue to grow and provide the best service to Latvian gas consumers,” he said.

“Like the rest of Europe, we see gas playing an important role as a transition fuel and a supporter of renewable energy. The prospect of gas use encourages us to invest in gas networks – we have signed the agreement and are waiting for the decision of the Latvian government,” Hanschmidt added.

Eesti Gaas operates in Finland, Latvia, Lithuania and Poland under the Elenger brand.

Eesti Gaas provides natural gas to customers in the form of pipeline gas, compressed natural gas (CNG) and liquefied natural gas (LNG) and manages the largest gas network in Estonia.

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Australia plans to extend natural gas price cap to 2025

Major LNG exporter Australia plans to extend the cap on domestic natural gas prices until July 2025 in a bid to ensure Australian gas supply at “reasonable prices,” the government said on Wednesday. 

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Energy companies operating in Australia are rattled by last year’s cap on domestic gas prices, which has already led to at least one investment project being put on hold. The cap, introduced in December, was initially intended to last until the end of 2023 as a measure to curb spiking gas prices.   

Now the government plans to extend the cap through the middle of 2025, exempting small producers from the price cap if they supply gas only to the domestic market. Larger producers can also be exempted from the price cap if they make supply commitments to provide enough natural gas for the domestic market.   

The government’s draft proposal, the so-called Gas Code, is now open for consultation until May 12, 2023.  

“The Gas Code will ensure sufficient supply of Australian gas for Australian users at reasonable prices, give producers the certainty they need to invest in supply, and  LNG producers to meet their export commitments,” the government said. 

Still, Australia’s main energy trade partners and allies are increasingly concerned about the latest proposals for energy market interventions in Australia, which could also undermine new investment plans in Australian natural gas and other energy resources. Earlier this year, the Australian government proposed reforms to the Australian Domestic Gas Security Mechanism (ADGSM), “to ensure that there is a sufficient supply of natural gas to meet the forecast needs of Australian gas consumers by controlling, if necessary, LNG exports.”   

The imposition of a gas price cap and the proposal that the government has a say in LNG export volumes could be challenged by foreign investors, global law firm White & Case warned in February.

“The imposition of such measures is not without risk for Australia, which is a signatory to several investment treaties where key LNG companies are incorporated,” White & Case says.

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Mexico seeks to rehabilitate 36 gas pipelines

Mexico’s gas network operator Cenagas will carry out more than 20 pre-investment studies to determine the feasibility of a rehabilitation program for 36 gas pipelines in the northeast, southeast and center.

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Rehabilitating the 9,000km network is crucial because it is outdated and at risk of creaking, Cenagas said in funding requests to the finance ministry, which approved 52.4mn pesos (US$2.9mn) to start the studies.

The program will also help meet the demand forecast for 2030. According to Cenagas, demand will jump from 1.9Bf3/d (billion cubic feet per day) to 2.9Bf3/d. 

Structural failures at the “high-risk critical sections” may also cause “a reduction of the current existing supply of natural gas that is currently available, reflecting a social, ecological and economic impact,” it said.

Most of the high-risk stretches are in Veracruz state, but also in Tamaulipas, Coahuila, Mexico state, Nuevo León and Tlaxcala. 

Part of the pre-investment studies are engineering studies, designs and work calendars. 

Cenagas also said the studies are related to the plan to build a 3.6bn-peso gas pipeline to replace the one that crosses Tamaulipas state capital Reynosa.

On April 13, Cenagas awarded a 3.8mn-peso feasibility study, including for a new 56km line bypassing the urban area amid safety concerns, to BH&A, Proyectos, Consultoría y Supervisión de Infraestructura. Contract signing is planned for April 28, after which the company has 112 days to complete the study.

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Nigeria completes gas pipeline without chinese funds

The Nigerian National Petroleum Corporation (NNPC) has used around $1.1 billion of its own funds so far and has completed work on 70% of a large natural gas pipeline in Nigeria even after a Chinese loan for the project failed to materialize.

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Nigeria’s federal government announced in July 2020 that the Bank of China and Sinosure had agreed to finance part of the costs for constructing the Ajaokuta-Kaduna-Kano (AKK) gas pipeline to the economic hub in the north, Kano. In the summer of 2021, reports started swirling that Chinese lenders were reluctant to increase their exposure and finance part of the gas pipeline project estimated to cost $2.8 billion.

Nigeria has started to look for alternative funding for at least US$1 billion of the pipeline’s cost and has started to approach other lenders, including export-import credit institutions, sources told Reuters two years ago.

This week, NNPC Group chief executive, Mele Kyari, said on a site inspection that the AKK Gas Pipeline project was nearly 70% completed, and more than $1.1 billion has been released so far to finance the project. The pipeline is planned to run for 614 kilometers (382 miles) and is currently being financed by NNPC.

The AKK Gas Pipeline line will flow 2 Bscf/d and will power industries and power plants and create gas-based industries, Kyari said. By the third quarter of this year, NNPC will complete the entire welding job on this line, he said while visiting a construction site along the pipeline’s route. 

“We have so far spent over $1.1 billion on this project from our cashflow,” NNPC’s Kyari said.

“We are a commercial company today. We have inter-company loans within our company now. This company can fund this project, so we do not need any support to deliver this project now.”

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Turkey: $1 billion worth of gas found in Turkish gabar: Erdogan

(MENAFN- Trend News Agency) Türkiye discovered natural gas reserves valued at $1 billion in the southeastern Gabar mountain, President Recep Tayyip Erdogan said on April 23, trend reports citing hurriyet daily news .

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“We discovered $1 billion of natural gas in Gabar, and we will extract it as well,” he said at the opening ceremony of Akyazı Recep Tayyip Erdogan Sports Complex.

He recalled that Türkiye commissioned its first multi-purpose Amphibious Assault Ship TCG Anadolu recently, and subsequently launched the country’s first delivery from a Black Sea gas reserve.

Türkiye will build an aircraft carrier twice the size of TCG Anadolu he stated, adding that they would display the vessel in Izmir in the coming days.“Hopefully, if you give us this task on May 14, we held preliminary talks with certain countries for the ship, which is twice the size of this vessel,” he said.

“It would be beneficial for it to stay in İzmir for the last one week-10 days. Hopefully, we will send different messages from there with TCG Anadolu. Seventy to 80 thousand people, who visited our ship, gave the good answer to the table of seven,” he said referring to the opposition parties.

“I wish that all natural gas consumption in the houses for one month and the consumption of kitchen and hot water for one year free of charge will be beneficial for our nation once again. My Lord has blessed us, and we are placing the Black Sea gas at the disposal of our nation,” he said.

The government is establishing the mothers, young people, family and youth bank, he said and added,“With this bank, which will take its source from the natural riches of our country such as the Black Sea, we will provide the financing of many studies from here.”

He reminded that Norway uses a certain proportion of its own natural gas and oil and dedicates it to its youth.

“We will do the same in our country. We will support the retirement of our housewives. We will expand scholarship opportunities at all levels of education. We will facilitate the employment of our youth by ensuring that at least one person from each household is employed,” he stated.

Citing the period before the rule of his Justice and Development Party (AKP), Erdogan said Türkiye has developed far beyond 1999 and is now“healing” the wounds of the Feb. 6 earthquakes faster.

“We will completely revive our earthquake cities by building 650,000 new houses. We are carrying out comprehensive urban transformation projects to prepare our whole country for earthquakes,” he explained.

Criticizing the Nation Alliance presidential candidate Kemal Kılıçdaroglu, Erdogan said the opposition Republican People’s Party (CHP) leader pledged to“release” the former co-chair of Peoples’ Democratic Party (HDP) Selahattin Demirtaş and leader of illegal PKK group Abdullah Öcalan from prison.

“He was going to take out Selo, who killed 51 of our citizens in Diyarbakır, and he would take out the terrorist leader Öcalan. This country is not a terrorist state,” Erdoğan said.

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Natural Gas / LNG Utilization

Qatar embarking on significant wave of LNG fleet expansion

Qatar is embarking on another significant wave of fleet expansion, to underpin its domestic expansion of the North Field project, as well as investments in the Golden Pass LNG terminal in the US Gulf Coast region according to Gas Exporting Countries Forum (GECF) annual gas market report 2023.

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To accomplish this, it has been reported that Qatar has secured booking slots at all of the major South Korean shipbuilding yards over the next five years, for orders of around 100 new carriers.

The cost of newbuild LNG carriers has increased in excess of $250m, which is around $20m more than the average price during 2021. This increasing cost in recent years has been attributed to rising expenses related to construction materials, mainly steel, as well as shortages in the number of available shipyards, the report further said.

It added, concerning this point, it has led to vessel owners exploring other options outside the traditional world-leading shipyards for newbuild orders. In particular, with the Hyundai, Daewoo, and Samsung shipyards of South Korea becoming fully booked until after 2025, manufacturers in China are growing in importance, already securing at least 36 of the vessels on the orderbook for orders, which the ownership details are already known.

In 2022, the number of LNG cargoes traded globally reached 6,210, increasing 2 percent over the total number of shipments in 2021. This continued the trend of more cargoes being traded annually in each of the past five years, except during the initial breakout of the pandemic in 2020. Compared with 2021, the number of LNG shipments per month was greater for most of 2022; over the year, the monthly average number of cargoes was 518 compared with 506 in 2021.

For the fourth consecutive year, Australia delivered the highest number of LNG cargoes. In 2022, just as in 2021, the US, Qatar, Russia, and Malaysia completed the top five exporters by number of shipments. The US also had the highest increase in number of cargoes, recording an additional 81 more shipments in 2022 than in 2021.

The second highest increase was attributed to Norway, which loaded 49 cargoes from the restarted Hammerfest LNG terminal since June 2022. GECF Countries Equatorial Guinea and Peru registered the largest percentage increases in cargo exports in 2022, with 32% and 21%, respectively. In addition, another GECF Country, Mozambique, joined the league of LNG exporters with three loadings from the Coral South FLNG terminal at the end of 2022.

The increasing trend in global LNG shipments is expected to continue in 2023 as per the overall growth in LNG demand. Furthermore, LNG shipping would be boosted by the restart of the Freeport LNG plant in the US, and increased cargo imports in Europe and Asia Pacific. However, the LNG shipping market may experience tightness due to new IMO regulations in 2023 and further ahead.

At the end of 2022, the global LNG carrier fleet stood at 677 vessels. Although the total has gradually increased, only 28 new vessels were commissioned in 2022. This represented growth of 4 percent, which was the lowest increase since 2013. As observed in the recent historical trend since 2010, the years in which there is a sharp increase in the fleet growth rate are typically followed by a drop in the subsequent year, the annual report noted.

Accordingly, this was repeated in 2022, with just over 4,600,000 cubic metres of LNG carrier capacity entering into service, merely half of the capacity commissioned in 2021.

© Dar Al Sharq Press, Printing & Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (

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U.S. stresses importance of LNG for Europe

Russian President Vladimir Putin belied that his invasion of Ukraine in 2022 would go largely unopposed by the U.S. and its allies for the same reason that he was able to invade the country in 2014 and annex Crimea.

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That is, that the non-U.S. part of the North Atlantic Treaty Organization (NATO) – Europe – would not to risk being cut off from the cheap and plentiful supplies of Russian gas that they had been using for decades to power their economies. He was wrong this time, for a variety of reasons analysed in my new book on the new global oil market order. Not only were the NATO allies not prepared to roll over this time in favour solely of their own interests but Putin’s actions in Ukraine have re-energised the U.S.-led security, economic, and energy alliance comprising most European countries and many Asian ones as well. To safeguard these gains, the U.S. last week stressed the necessity for the allies to ramp up investments in gas to ensure that never again would the alliance be hostage to the weaponised energy supplies of Russia.

Speaking at a G7 ministers’ meeting on climate, energy and environment in Japan, U.S. Assistant Energy Secretary, Andrew Light, highlighted the need for continued investments by the allies in new gas supplies. He also stressed that U.S. liquefied natural gas (LNG) supplies remain critical to European energy security as it continues to reduce its reliance on Russian gas. He added that the U.S. is not concerned about Russia still being able to sell its oil and gas, despite sanctions, as it is allowing countries to buy energy at lower prices. This feeds into the idea that the price cap on Russian energy sales is also part of the U.S.’s broader policy of keeping oil and gas prices down, and with the ‘Trump Oil Price Range’, as also analysed in my new book on the new global oil market order. This is not only for the U.S.-centric economic and political reasons examined in the book, but also because rising energy prices drive inflation higher, in turn pushing fuelling the interest rates used to combat it, and increasing the prospect of recession in many of the U.S.’s allies. Interestingly as well, and in keeping with the geopolitical realignment evident since Russia’s invasion of Ukraine, Light also underlined that the U.S. and its allies are also looking to diversify the supply chains of materials that have long been dominated by China. “We don’t want to be at the mercy of China and put them in the same position vis a vis the rest of the world as Russia has been with Europe,” Light concluded.

Prior to Russia’s invasion of Ukraine, the only real flurry of activity in terms of a concerted effort by any group within the European Union (EU) was aimed at ensuring that Russia did not stop supplying its member states with either oil or gas, due to their not being able to pay in the way Moscow preferred. This followed the 31 March 2022 decree signed by President Vladimir Putin that required EU buyers to pay in roubles for Russian gas via a new currency conversion mechanism or risk having supplies suspended. According to an official guidance document sent out to all 27 EU member states on 21 April by its executive branch, the European Commission (EC): “It appears possible [to pay for Russian gas after the adoption of the new decree without being in conflict with EU law],… EU companies can ask their Russian counterparts to fulfil their contractual obligations in the same manner as before the adoption of the decree, i.e. by depositing the due amount in euros or dollars.’” The EC added that existing EU sanctions against Russia also did not prohibit engagement with Russia’s Gazprom or Gazprombank beyond the refinancing prohibitions relating to the bank. Several EU member states made it plain that they would veto any EU proposal to ban Russian gas (or oil) imports – and all 27 EU member states must vote in favour of such a ban for it to come into effect. 

However, under considerable ‘encouragement’ from the U.S., Germany – the de facto leader of the EU – performed a 180-degree turnaround in its previously fiercely pro-Russian energy stance, bolstered in the first instance by a U.S.-led deal for LNG supplies from Qatar. LNG remains the most flexible form of gas for buyers, being readily available in the spot markets and able to be moved very quickly to anywhere required, unlike gas sent through pipelines. Unlike pipelined gas as well, the movement of LNG does not require the time- and money-intensive build-out of vast acreage of pipelines across varied terrains and the associated heavy infrastructure that supports it. In essence, LNG supplies are the ‘swing gas supply’ in any global gas supply emergency, as was the case back then in the first half of 2022. May of that year, then, saw Qatar sign a declaration of intent on energy cooperation with Germany aimed at becoming its key supplier of LNG. These new supplies of LNG from Qatar would come into Germany through existing importation routes augmented by new infrastructure approved by the German Bundestag on 19 May. This would include the deployment of four floating LNG import facilities on its northern coast, and two permanent onshore terminals, which were under development. 

These plans would run in parallel with, but were likely to be finished significantly sooner than, the plans for Qatar to also make available to Germany sizeable supplies of LNG from the Golden Pass terminal on the Gulf Coast of Texas. QatarEnergy holds a 70 per cent stake in the project, with the U.S.’s ExxonMobil holding the remainder. The Golden Pass terminal’s estimated send-out capacity is projected to be around 18 million metric tonnes per annum (mtpa) of LNG and the facility is expected to be operational in 2024. Also heavily linked in with the U.S. was a very similar announcement in December 2022 of two sales and purchase agreements between QatarEnergy and the U.S.’s ConocoPhillips to export LNG to Germany for at least 15 years from 2026. These two deals between Berlin and Doha will provide Germany with 2 million mtpa of LNG, sent from Ras Laffan in Qatar to Germany’s northern LNG terminal of Brunsbuettel. Crucially as well to the solidarity of the NATO alliance, QatarEnergy’s chief executive officer (also Qatar’s Energy Minister), Saad al-Kaabi, stressed the long-term nature of this new energy arrangement. He said: “[The two sales and repurchase agreements] mark the first ever long-term LNG supply agreements to Germany, with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security.” 

Around one month after the declaration of intent on energy cooperation with Germany was signed by Qatar, other major new gas deals started being signed by flagship energy companies from Europe, as also analysed in my new book on the new global oil market order. Qatar, in the first instance, signed new partnership deals with France’s TotalEnergies and Italy’s Eni for the US$30 billion North Field Expansion project. TotalEnergies also signed a partnership agreement with the Abu Dhabi National Oil Co. (ADNOC) that included cooperation in trading, product supply, and carbon capture, utilisation and storage. It then signed a massive four-pronged US$27 billion energy deal with Iraq. In the meantime, it was announced that Eni was to sign an agreement with Libya’s state-owned National Oil Corporation (NOC) that would see it invest around US$8 billion to produce about 850 million cubic feet per day (mmcf/d) from two offshore gas fields in the Mediterranean Sea. Eni had another huge success around the same time – in conjunction with U.S. hydrocarbons giant, Chevron – with a major new gas discovery in the 1,800 square kilometre Nargis offshore area concession in Egypt. The broader importance of these deals between European companies and previously largely overlooked gas suppliers was subtly acknowledged in TotalEnergies’ official comments on the UAE deal. ‘[The agreement includes] the development of oil and gas projects in the UAE to ensure sustainable energy supply to the markets and contribute to global energy security,’ it said.

For the U.S., the onus – aside from facilitating more deals between Europe and Middle East and North Africa suppliers – remains on ensuring plentiful and reasonably priced supplies of its LNG,. The omens for this are extremely encouraging, with the Energy Information Administration (EIA) in March forecasting that U.S. LNG exports will average 12.1 billion cubic feet per day (Bcf/d) in 2023, a 14 per cent (1.5 Bcf/d) increase compared with last year. The agency also expects LNG exports to increase by an additional 5 per cent (0.7 Bcf/d) next year. These forecasts are based almost exclusively on continued high global demand for LNG to displace pipeline natural gas exports from Russia to Europe.

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LNG-powered MSC Euribia completes deep-water trials, prepares for inaugural season

MSC Cruises’ liquefied natural gas (LNG)-powered ship MSC Euribia has completed deep-water intensive systems tests during a four-day trial in the Atlantic Ocean, and will next receive her finishing touches at the Chantiers de l’Atlantique shipyard in Saint Nazaire, France, before being officially delivered to MSC Cruises on 31 May 2023.

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According to MSC Cruises, MSC Euribia will be the 22 ship to join its fleet and it will be able to accommodate up to 6,327 passengers.

The ship will be officially named on 8 June in Copenhagen, Denmark, before sailing a maiden inaugural season in Northern Europe from her homeport in Kiel, Germany.

MSC Cruises said the vessel will feature innovative and advanced marine technology, as well as LNG fuel to minimise its environmental footprint, adding it will also strike a new silhouette with a customised fresco painted on her exterior that celebrates MSC Cruises’ commitment to protect and preserve the marine environment.

The ship will also feature shore power plug-in connectivity to reduce carbon emissions in port, the most advanced wastewater treatment systems designed in line with the United Nations’ shipping body the International Maritime Organisation, comprehensive waste recycling, underwater radiated noise management system to help limit disturbance to marine life, and a comprehensive range of onboard energy efficient equipment to optimise engine use and hotel energy needs to further reduce emissions, MSC Cruises further informed.

German graphic artist Alex Flämig, the vessel’s hull artwork designer, commented: “To witness my design finally come to life across MSC Euribia’s hull is an incredibly proud moment and even more so, to soon have my artwork sailing the world’s oceans. I hope it can serve not only as a testament to MSC Cruises’ commitment to protecting the important marine ecosystem but also as an inspiration for those working on finding innovative solutions to safeguard the future of the ocean.”

To remind, for delivery between 2022 and 2025, MSC Cruises ordered three LNG-powered vessels, including MSC Euribia. The first vessel MSC World Europa was christened in 2022, and the construction of the third ship is to start in 2023.


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Global LNG Development

Canada: Kitimat LNG project hits another milestone

The LNG Canada project in Kitimat has reached a new milestone with the installation of its first bridge module.

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The module’s primary function is to connect utilities to LNG processing train 1, and it also supports the transportation of LNG from train 1 to the storage tank.

JGC Fluor Joint Venture (JFJV), the prime contractor of the LNG Canada project, said the installation is significant, describing the project as “a culmination of many years of planning and collaboration between JGC and Fluor engineering teams, bringing together elements from separate fabrication yards using single weld hook-ups in a dramatically different environment from where they were built.”

To remind, in 2018, the JV partners in LNG Canada took a final investment decision (FID) and said the development of the project will cost about $14 billion.

When completed, the facility is expected to consist of a natural gas receiving and LNG production unit, a marine terminal with the capacity to accommodate two LNG carriers, a tugboat dock, and LNG loading lines. It will also include LNG processing units, storage tanks, a rail yard, a water treatment facility, and flare stacks.

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China: PetroChina signs LNG deal with Malaysia’s Petronas

PetroChina International Co Ltd said it has signed a sales and purchase agreement with Malaysia’s Petronas to buy liquefied natural gas (LNG).

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The deal, signed on April 17, is the pair’s first medium-to-long-term LNG sales and purchase agreement, PetroChina said in a statement on Tuesday without providing further deal details.

Petronas did not immediately respond to a request for comment.

China was the world’s top LNG importer in 2021, shipping in 78.8 million tonnes of the super-chilled fuel. It was overtaken by Japan last year amid high spot prices and after stringent COVID-19 containment measures curbed economic activity and energy demand, with imports slipping to 63.4 million tonnes.

An executive at PetroChina Co Ltd 601857.SS, 0857.HK, the listed arm of state-run China National Petroleum Corp and China’s biggest gas importer, in March said China’s natural gas demand is likely to grow this year as the economy recovers, but that any import rebound would be dependent on spot prices.

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Congo: ENI inaugurates Congo LNG project in the Republic of the Congo

The President of the Republic of the Congo, Denis Sassou Nguesso, and the Chief Executive Officer of ENI, Claudio Descalzi, today laid the foundation stone of Congo LNG, the country’s first natural gas liquefaction project and one of Eni’s core supply diversification initiatives.

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The project is expected to reach an overall liquefied natural gas (LNG) production capacity of 3 million tons per year (approximately 4.5 billion cubic meters/year) from 2025.

Congo LNG will exploit the huge gas resources of Marine XII, fulfilling the country’s power generation needs while also fuelling LNG exports, supplying new volumes of gas to international markets focusing on Europe.

The project, made though an accelerated development schedule and a zero-flaring approach, will see the installation of two floating natural gas liquefaction plants (FLNG) at the Nenè and Litchendjili fields – already in production – and at the fields yet to be developed. The first FLNG plant, currently under conversion and with a capacity of 0.6 million tonnes per year (MTPA), will begin production in 2023. The second FLNG plant – already under construction – will become operative in 2025 with a capacity of 2.4 MTPA.

Claudio Descalzi, Eni’s Chief Executive Officer, commented: “Today we celebrate the launch of one of Eni’s main projects, made possible by the collaboration with the Republic of the Congo and destined to significantly contribute to both Italy and Europe’s energy security and industrial competitiveness. This outcome speaks to the importance of long-term collaboration with our African partners at a time when important strategic choices need to be made in regards to future diversification of supply routes and European energy mixes, in the direction of energy accessibility and availability and progressive decarbonisation.”

Eni has been operating in Congo for over 50 years and – to date – is the only company active in the development of its gas resources, guaranteeing 70% of national electricity production through the Centrale Electrique du Congo (CEC).

Eni is strongly committed to promoting energy transition in the country. Recently, the Oyo Center of Excellence for Renewable Energy and Energy Efficiency was handed over to the Ministry of Higher Education, Scientific Research and Technological Innovation of the Republic of the Congo, which will manage it together with UNIDO (United Nations Industrial Development Organization). Furthermore, the company is developing agri-feedstock production initiatives destined for biorefining and not in competition with the food supply chain.

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Azerbaijan agrees to boost gas transfers via four EU countries

Four European Union nations signed a deal with Azerbaijan Monday for broader gas distribution to the bloc, with the Eurasian partner targeting to raise gas supply to Europe to 423.78 billion cubic feet (12 billion cubic meters) this year.

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The memorandum of understanding (MOU) for the so-called Solidarity Ring initiative paves the way for gas transfers from the State Oil Company of the Azerbaijan Republic (SOCAR) via existing infrastructure, separate press releases from parties to the agreement said. Supplies would be delivered by pipeline networks of Bulgaria’s state-owned Bulgartransgaz EAD, Hungary’s FGSZ Ltd., Romania’s state-owned Transgaz SA and Slovakia’s Eustream, also government-controlled.

The agreement inked during a meeting between Azerbaijan President Ilham Aliyev and his Bulgarian counterpart Rumen Radev follows a 2022 pact between the 27-member bloc and Baku for increased oil and gas shipments to the EU. The Memorandum of Understanding on a Strategic Partnership in the Field of Energy passed July 18, 2022 includes a commitment to double the capacity of the Southern Gas Corridor to at least 706.29 billion cubic feet (20 billion cubic meters) in yearly transfers to the EU by 2027, according to a European Commission announcement of the deal.

“The MoU signed today, when implemented, will definitely strengthen energy security in Europe, and allow Azerbaijan to export more gas to many more European countries”, Aliyev told the signing ceremony in Bulgaria, according to a transcript on the Azerbaijan presidential website.

“In 2021, we delivered 8 billion cubic meters to Europe. And this year, our target is 12”, he added. “So, that will be almost half of our total export, which we plan for this year at the level of 24.5 billion cubic meters”.

Azerbaijan plans to deliver its first gas exports to Hungary and Slovakia this year “if all necessary interconnectors are in place”, the president said, noting in Europe his country already supplies Bulgaria, Georgia, Greece, Italy and Türkiye.

Azerbaijan’s gas export to Romania has also started this year, he said. SOCAR and state-owned Romgaz SA finalized February an agreement proposed last year for the transport of up to 35.31 billion cubic feet (one billion cubic meters) of natural gas to Romania. 

Aliyev also said: “We are in the process of negotiations with Albania to build a local gas distribution system, because the Southern Gas Corridor crosses Albania’s territory”.

Tuesday’s deal comes as the EU looks to wean itself off reliance on Russian energy in response to its invasion of Ukraine. Russia was the EU’s top source of natural gas and petroleum from 2010 to 2020. It comprised 38.2 percent of the bloc’s imports of natural and liquefied natural gas and 25.7 percent of the EU’s imports of crude oil in 2020, according to the latest energy imports percentage statistics by EU agency Eurostat published April 13.

The EU’s natural gas production has also continued dropping, by 7.6 % to 1,755,874 terajoules in 2021 against 2020, according to the latest Eurostat update. Meanwhile inland demand rose 4.3 percent the same period to reach 15,834,900 terajoules, the EU statistics agency reported April 13.

“Especially at a time when our partners need a reliable gas supply, solidarity and cooperation are fundamental”, Radev told the ceremony, according to a transcript. “The war in Ukraine has made us look for new dimensions of the concepts of good neighborliness, solidarity and cooperation. This basically requires us to look for new solutions, new routes and supplies to be able to make changes to the international logistics map”.

Romania Energy Minister Virgil-Daniel Popescu called for the agreement to expand to include Moldova, Türkiye and Ukraine, according to Azerbaijan’s Trend News Agency. “It is necessary to start work immediately after signing the memorandum. The door should be open for Türkiye, Moldova, and Ukraine”, he was quoted as saying.

Tuesday’s deal, which “sets out directions of cooperation” between SOCAR and the four gas distributors, was signed by Azerbaijan’s energy minister and cabinet representatives of the four EU states, the Azerbaijan presidential office said announcing the signing.

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Finland’s Inkoo FSRU gets new LNG cargo

Finland’s first FSRU-based facility in the port of Inkoo has received a new cargo of liquefied natural gas (LNG), according to Gasgrid.

The 155,000-cbm LNG carrier Solaris delivered a full LNG cargo to Excelerate Energy’s 150,900-cbm FSRU Exemplar, which serves Gasgrid’s import facility in Inkoo under a charter deal, Gasgrid said in a statement on April 21.

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Gasgrid said the loading went as planned and the gas supplies were fed into the gas network for use by industry, energy production, as well as households.

The state-owned natural gas transmission system operator did not provide any additional details regarding the shipment.

According to its AIS data provided by VesselsValue, the 2014-built Solaris, owned by GasLog Partners, delivered the shipment to Inkoo from Cheniere’s Corpus Christi LNG terminal in the US.

This delivery follows the first commercial LNG shipment for the new FSRU-based facility in Finland.

Eesti Gas, a unit of Estonian investment firm Infortar, recently received the first LNG cargo from the US via Finland’s FSRU-based LNG terminal.

Also, the Tallinn-based firm, which is branded internationally as Elenger, purchased the cargo from energy trader Vitol.

It will bring in total seven shipments via the Inkoo FSRU in spring and summer this year.

1-2 vessels per month

Gasgrid said in the statement it expects 1-2 vessels per month to arrive at the FSRU-based facility in Inkoo.

So far, the facility, operated by its unit Floating LNG Terminal Finland, has already delivered the equivalent of an entire LNG ship (1,000 GWh) of gas to the transmission network, it said.

Satu Mattila, CEO of FLTF, said in the statement that almost the entire capacity of the current gas year has been booked.

“All the spring and summer slots in the terminal have been reserved, and one slot in August and one in September can still be booked,” she said.

Gasgrid recently received approval to start offering reloading services at the FSRU-based facility in the port of Inkoo to boost the terminal’s utilization rate.

FLTF is offering in total 35 terminal slots of 1,000 GWh each for the period from October 1, 2023 to September 30, 2024.

Excelerate Energy’s FSRU Exemplar has a regasification capacity of more than 5 billion cubic meters per year and started supplying regasified LNG to the grid on December 29 as part of the commissioning phase.

After that, Gasgrid said in January that that the FSRU-based facility, which connects to a 2.2 km long gas transmission pipeline, was ready to start commercial operations.

Last month, the state-owned firm reduced the number of planned LNG import slots for the April-September period due to “limitation of transmission capacity in Balticconnector and expected market demand.”

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Qatar records 22 more LNG cargoes in first quarter than Q1, 2022: GECF

Qatar delivered 22 more cargoes in the first quarter of this year compared to the same period last year, the Gas Exporting Countries Forum (GECF) said in its April report.

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In March, the total number of global LNG export cargoes increased by 8% m-o-m to 551. The total number of LNG shipments for the first three months of 2023 reached 1598, which is 3% (or 50 more cargoes) than during the same period in 2022.

The US, Australia, and Qatar lead the number of LNG shipments in 2023 thus far, Doha-headquartered GECF noted.

In March 2023, the LNG spot charter rate for steam turbine carriers averaged $38,800 per day, which was 12% higher month-on-month (m-o-m) and 50% higher year-on-year (y-o-y).

The spot charter rate in 2023 has generally been following the seasonal trend, hovering around the five-year average.

During the majority of March, charter rates held steady at the same levels as the end of February, until they declined during the final third of the month.

This, GECF noted that although the average monthly rate increased m-o-m, March concluded with the daily rate actually reaching the lowest level recorded since August 2022.

Charter rates softened at the end of the month as a result of reduced tightness in the market, attributed to increased Atlantic Basin deliveries, rather than intra-basin flows.

The average price of the leading shipping fuels in March 2023 was $560 per tonne, which was 8% lower than the previous month, and 37% lower y-o-y.

In March 2023, the impact of the rise in LNG spot charter rates was offset by decreases in the cost of LNG shipping fuels and the delivered spot LNG prices, resulting in a net decrease in the

LNG shipping cost, by up to $0.12/mmBtu compared with the previous month, GECF said.

Compared with the same month one year ago, charter rates were higher in March 2023, but fuel prices and delivered spot LNG prices were significantly lower than in 2022, resulting in LNG shipping costs up to $1.32/mmBtu lower.

Maintenance activity at LNG liquefaction facilities: In March, both planned and unplanned outages affected 0.80 mtpy of global liquefaction capacity. This represents a significant decrease from 2.07mn tonnes per year (mtpy) in March 2022.

The APLNG facility in Australia and Qatar’s LNG facility underwent planned maintenance activity during the month, while the Soyo LNG facility in Angola, QCLNG facility in Australia and Freeport LNG facility in the US encountered unplanned outages, GECF said.

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Hongkong: CLP Power and HK Electric to develop offshore LNG terminal

An offshore LNG terminal is being jointly developed by CLP Power Hong Kong Limited and The Hongkong Electric Co., Ltd (HK Electric) to support Hong Kong’s energy transition. A FSRU vessel, which will be used to receive, store, and regasify LNG, arrived in Hong Kong 13 April 2023 and is staying at the South Cheung Chau Anchorage.

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When checks and port clearance procedures are completed, the FSRU vessel will sail to the offshore LNG terminal east of the Soko Islands next week for the final commissioning of the project.

The offshore LNG terminal, constructed by CLP Power and HK Electric, is the first of its kind in Hong Kong and will be operated by the Hong Kong LNG Terminal Limited, a joint venture between the two power companies. Construction of a marine jetty and two subsea gas pipelines of the terminal has been completed. Commissioning of equipment is under way and the terminal is scheduled for operation in mid-2023.

The FSRU vessel, which will be named Bauhinia Spirit, is the world’s largest with an overall length of 345 m and a storage capacity of 263 000 m3 of LNG. It will be moored at the jetty of the offshore LNG terminal and be used to receive, store, and regasify LNG.

When it goes into operation, the LNG terminal will further improve the stability of Hong Kong’s natural gas supply by diversifying supply sources, allowing Hong Kong to procure natural gas at competitive prices from the global market.

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LNG as a Marine Fuel/Shipping

France: TotalEnergies and MSC complete first LNG bunkering operation

TotalEnergies Marine Fuels and MSC Cruises announced the successful completion of the first liquefied natural gas (LNG) bunkering operation at the Port of Marseille Fos for the MSC World Europa.

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Patrick Pourbaix, Managing Director of MSC Cruises in France, said: “This first LNG bunkering operation in Marseille is an important milestone for our company as we welcome MSC World Europa for her first summer season in the Mediterranean. Featuring a range of unprecedented innovations in terms of environmental and marine technologies MSC World Europa represents a major step forward on our journey towards meeting our target of net-zero emissions by 2050. LNG is not only the cleanest marine fuel currently available at scale, but also a transitional fuel as we look ahead to source and use synthetic LNG or other alternative non-carbon fuels as soon as they become available at scale.”

TotalEnergies’ chartered LNG bunker barge, the Gas Vitality, refueled the MSC World Europa with 2 500 m3 of LNG on April 22. This operation marks the beginning of an LNG bunker supply contract between TotalEnergies and the Cruise Division of MSC Group previously announced in March 2021. According to the agreement, TotalEnergies Marine Fuels will supply about 45,000 tons per year of LNG to MSC Cruises’ ships in Marseille.

“We are excited to support the Cruise Division of MSC Group in their decarbonization journey and to help the Port of Marseille Fos become an LNG bunker hub for the Mediterranean region,” said Philippe Charleux, senior vice president of lubricants and specialties, TotalEnergies.

“This operation also expands our LNG bunkering capabilities to the cruise ship segment, demonstrating our ability to serve a broader range of shipping clients, as the industry strives to reduce emissions. In line with TotalEnergies’ Climate ambition, we will continue to work hand-in-hand with our industry partners to develop and scale up new, lower-carbon and ultimately, zero-carbon fuel solutions for shipping.”

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Singapore: Maran Dry takes delivery of LNG-fuelled bulk carriers with DNV class from SWS

Maran Dry Management Inc. (MDM), the dry bulk shipping arm of the Angelicoussis Group, recently took delivery of two Newcastlemax bulk carriers, Ubuntu Unity and Ubuntu Community from Shanghai Waigaoqiao Ship Building Co., Ltd. (SWS), according to classification society DNV on Monday (24 April).  

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The two DNV-classed vessels are the first LNG-fuelled bulk carriers to join the MDM fleet.

The 190,000-dwt vessels, registered with the Greek flag, are the first dual-fuelled bulk carriers in the Greek market, and will sail using LNG. The use of LNG will lead to significant reductions in CO2 and NOx, while almost eliminating SOx and particulate matter emissions. With a combination of dual-fuel, hull optimisations and energy efficiency measures, the vessels have a very advantageous and low EEDI rating, much lower than the baseline. 

“Maran Dry Management, as part of the Angelicoussis Group, is committed to decarbonisation and embraces sustainability initiatives to optimise its fleet environmental performance”, said Captain Babis Kouvakas, Managing Director at Maran Dry Management Inc. (MDM). 

“We are delighted to have collaborated with DNV and SWS on the design and development of these modern and environmentally friendly ships. Both vessels incorporate the latest technology, aiming to reduce carbon emissions.”

“We are very pleased to have been involved with the charterer, owner, yard and designers from the outset of this project,” said Morten Løvstad, Vice President and Global Business Director for Bulk Carriers, DNV Maritime. 

“These highly efficient and innovative vessels, with dual-fuel engines, and an optimised hull design, show MDM’s commitment to meeting environmental regulations not just today but over the long term.”  

The vessels are 299.80 metres long, 47.5 metres wide and 24.70 metres deep, with a design draft of 18.25 metres and a design draft speed of 14 knots. They can use both LNG and conventional fuel and are equipped with two type-C LNG fuel tanks. 

The capacity of the LNG tanks means that the vessels could operate for 20,000 nautical miles powered by gas, allowing the vessels to complete two round-trip routes from China to Australia or one round-trip route from China to Brazil. 

“The delivery of these vessels is another milestone in the close cooperation being forged between the Angelicoussis Group and DNV,” said Ioannis Chiotopoulos, Senior Vice President, and Regional Manager South East Europe, Middle East and Africa, DNV Maritime. 

“These new vessels clearly show the Group`s commitment to driving sustainability in the bulk segment, and are great examples of how the maritime community is taking up the challenge of reducing our environmental footprint through innovation. We thank MDM for their trust and welcome Ubuntu Unity and Ubuntu Community to DNV class. May they enjoy smooth sailing for many years to come.” 

The Ubuntu vessels are on charter to global mining company Anglo American.

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Italy: MSC LNG “World Europa” starts sailing the Mediterranean 

MSC Cruises’ first vessel powered by liquefied natural gas (LNG) – MSC World Europa – has arrived in Europe after spending her maiden season in the Arabian Gulf. As the highest performing large cruise ship operating in the world regarding CO2eq emissions per passenger, MSC World Europa represents a major step forward on MSC Cruises’ journey toward achieving net-zero emissions by 2050.

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MSC World Europa is also among the first contemporary cruise ships to incorporate fuel cell technology, with tests showing very promising results. MSC World Europa offers 7-night cruises calling the Italian ports of Genoa, Naples and Messina, Valletta in Malta, Barcelona in Spain, and Marseille in France.

MSC Cruises’ innovative new ship—MSC World Europa—is starting her first summer season in the Mediterranean after arriving from the Arabian Gulf this week. The ship became MSC Cruises’ largest and the company’s first powered by liquefied natural gas (LNG), when French shipbuilder Chantiers de l’Atlantique delivered her in October 2022. MSC World Europa is the world’s highest-performing large cruise ship regarding CO2eq emissions per passenger.

Rubén A. Rodríguez, President of MSC Cruises USA, said: “Our guests from the U.S. have been thrilled to cruise on board MSC World Europa during her inaugural season in the Arabian Gulf, and many more of them are flocking to Europe as she starts her first summer season in the Mediterranean. This groundbreaking ship exemplifies our unwavering commitment to sustainable cruising. MSC World Europa’s innovative environmental and marine technologies represent a major step forward on our journey towards meeting our net-zero emissions target by 2050, and it offers a glimpse at our future in the U.S. as we move toward bringing MSC World America into service in 2025.”  

MSC World Europa will be powered by LNG throughout the summer, with her first bunkering in Marseille scheduled on April 15, 2023. LNG is the cleanest marine fuel currently available at scale. Compared to standard marine fuels, LNG eliminates local air pollutant emissions—including sulfur oxides and fine particles—and reduces nitrogen oxides by up to 85 percent.

LNG also plays a key role in climate change mitigation as it offers up to a 20 percent reduction in greenhouse gas emissions and paves the way for the uptake of sustainable non-fossil fuels such as bio and synthetic LNG.

Unique fuel cell technology showing promising results

MSC World Europa is the world’s first contemporary cruise ship to feature solid oxide fuel cell (SOFC) technology powered by LNG. The ship includes a 150-kilowatt SOFC demonstrator that uses LNG to efficiently produce electricity and heat on board using an electrochemical reaction, which could be a key to unlocking significant environmental sustainability gains in the future. Thanks to this increased efficiency, SOFC has the potential to substantially reduce greenhouse gas emissions compared with a conventional LNG engine without producing nitrogen oxide, sulphur oxide or fine particle emissions.  In addition to being compatible with LNG, the cell is compatible with potential low carbon fuels like green methanol, ammonia, liquid hydrogen and bio or synthetic LNG.  

Linden Coppell, Vice President of Sustainability & ESG at MSC Cruises, said: “Nearly six months into testing, the fuel cell performance has been excellent, and we haven’t seen any signs of safety or maintenance issues. The efficiency to date—measured in terms of the energy we can generate from the same unit of fuel – is well above that of an internal combustion engine and has exceeded our expectations. We have operated the system continually and it has delivered a steady output even better than our forecast 150-kilowatt return. Obviously, this is a small fraction of the energy we need but we are confident that the system can be scaled up on future newbuilds. We recognize that this will requires close collaboration with partners across and outside of our industry, which is why MSC Cruises is actively involved in several different research initiatives and partnerships that all share the common objective of accelerating the transition toward a net-zero future.”

A range of other environmental features

MSC World Europa is equipped with shore power plug-in connectivity to reduce carbon emissions in port, as well as an advanced wastewater treatment system (AWTS) that meets the world’s highest regulatory requirements, including the so-called Baltic standard. It treats all wastewater produced onboard to near tap water standards. The ship also includes a ballast water treatment system that prevents introducing invasive species in the marine environment through ballast water discharges, in full compliance with IMO’s Ballast Water Management Convention.

The vessel has an entire team dedicated to implementing strict waste management protocols which separate all wastes into seven distinct types (i.e. glass, aluminum and paper) with specialized equipment to crush or bundle each type in the ship’s waste management facility.

MSC World Europa also features an underwater radiated noise management system to minimize disturbance to marine life, along with a comprehensive range of energy efficient equipment onboard to optimize engine use and hotel energy needs and further reduce emissions. It is fitted with enhanced automatic data collection systems for remote energy monitoring and analysis, allowing real-time shoreside support to optimize operational efficiency onboard.

Next-generation cruise experience

During this first summer season in the Mediterranean, guests on MSC World Europa will be able to experience the trailblazing ship’s extraordinary features and impressive spaces, including the spectacular World Promenade, immersive restaurants, next-level entertainment options and MSC Cruises’ largest, most action-packed kids’ area. 


The nearly 350-foot-long outdoor World Promenade is one of the ship’s most impressive spaces. Day or night, this is the place to be for entertainment, stunning sea views and The Venom Drop @ The Spiral, a striking architectural masterpiece and the longest dry slide at sea with its 11-deck drop. The World Promenade is connected to the World Galleria, which spans nearly 24,000 square feet and is crowned by an awe-inspiring LED and kinetic dome ceiling. The World Promenade is the perfect place to shop, dine and relax with a drink.


MSC World Europa takes guests on a gastronomic journey around the world with a choice of 20 bars and lounges, and 13 dining venues—each with its own distinct style and ambiance. This includes six specialty restaurants and seven brand new bar and café concepts.

Chef’s Garden Kitchen is a first-of-its-kind collaboration between MSC Cruises and Michelin-starred chef, TV personality and author Niklas Ekstedt, focusing on natural ingredients and a farm-to-ocean ethos. This new restaurant features the first-at-sea hydroponic garden where guests will be treated to a uniquely immersive experience, with the master chef preparing Ekstedt’s extraordinary creations in an open kitchen against a backdrop of panoramic sea views.

MSC World Europa also features the line’s first onboard microbrewery in partnership with Teo Musso, the founder and brewmaster of Italian craft and farm brewery Birra Baladin.


Guests of all ages will be able to enjoy awe-inspiring entertainment from morning to night, including three new concert-style shows in the multipurpose Luna Park Arena, five new full-scale theatre productions in the World Theatre, four themed experiences in the Panorama Lounge, and pop-up live shows throughout the ship.


MSC World Europa’s children’s area is the largest in the fleet, with more than 8,000 square feet of interior space and seven rooms dedicated to various age groups from 0 to 17 years old, developed in collaboration with LEGO® and Chicco®. Entertainment for children and teenagers includes new and original game and talent show formats across high-tech venues.


With seven swimming pools and 13 hot tubs spread throughout the ship, there is one to suit every type of traveler, whether the aim is to relax and unwind or enjoy thrills and adventure.


MSC World Europa features the most luxurious MSC Yacht Club yet, offering unparalleled levels of comfort with more public space, expanded outdoor areas, and stylish new suites. The enhanced public spaces include a totally reimagined sundeck set over two decks for the first time, while two brand-new ultra-spacious Owner-Suites join the ‘ship within a ship’ concept with its key-card access exclusivity.


MSC World Europa is as different on the inside as she is on the outside, with all-new cabin designs and the most balcony cabins on any ship in the fleet. Stylish suites in the MSC Yacht Club, new cabins overlooking the outdoor promenade, and Infinite Ocean View staterooms with panoramic sliding windows that open to form a glass balustrade are some of the high-quality, comfortable accommodations available.

MSC World Europa will welcome guests for the summer season in the Mediterranean Sea, giving guests the ultimate Mediterranean cruise experience on 7-night itineraries calling at the Italian ports of Genoa, Naples and Messina, as well as Valletta in Malta, Barcelona in Spain, and Marseille in France.

For more information about MSC World Europa 

Key figures:

Gross Tonnage – 215,863
Length – 1,094 feet
Width – 154 feet
Height – 223 feet
Passenger cabins – 2,626
Passenger Capacity – 6,762
Engines and fuels:

5 Wärtsilä 14V 46DF engines dual-fuel engines, that can run on liquefied natural gas (LNG) and on low-sulphur marine gasoil (MGO)
150-kW solid oxide fuel cell demonstrator
Air Emissions:

Selective catalytic reduction system that reduces NOx emissions by 90% when the ship runs on MGO (LNG offers a similar NOx reduction); MSC World Europa is capable of meeting IMO’s Tier III standards regardless of the fuel it uses. Shore-to-ship power connectivity, allowing the ship to switch off engines at ports where shore-to-ship power infrastructure is available
Wastewater treatment:

Advanced wastewater treatment system complying with the most stringent standards on IMO’s MEPC 227(64) Resolution (the so-called Baltic Standard) Ballast water treatment system with UV treatment to prevent the introduction of invasive species in the marine environment through ballast water discharges, in compliance with IMO’s Ballast Water Management Convention Underwater radiated noise management system with hull and engine room designs that minimize acoustic sound impact, reducing their potential effects on marine fauna, most particularly on marine mammals in the surrounding waters.

Energy Efficiency: All MSC Cruises’ newbuilds incorporate a wide range of energy efficient equipment that help reduce and optimize engine use. These include smart ventilation and advanced air conditioning systems with automated energy recovery loops that redistribute heat and cold to reduce demand. The ships use LED lighting throughout the ship controlled by smart management systems to further enhance the energy saving profile. In partnership with the shipyard, MSC World Europa has been designed with an innovative hull shape to minimize resistance through the water and it will be fitted with automatic data collection systems for remote energy monitoring and advanced analysis, allowing real-time shoreside support to optimize operational efficiency onboard.

The Cruise Division of MSC Group, the leading privately held Swiss-based shipping and logistics conglomerate with over 300 years of maritime heritage, is headquartered in Geneva, Switzerland, and has two distinct brands within its structure—the contemporary and luxury brands.

MSC Cruises, the contemporary brand, is the world’s third-largest cruise brand and the market leader in Europe, South America, the Middle East, and Southern Africa. It is also the fastest-growing global cruise brand with a strong presence in the Caribbean, North America, and the Far East markets.

Its fleet includes 21 modern ships, combined with a sizeable future global investment portfolio of new vessels, and is projected to grow to 23 cruise ships by 2025.

MSC Cruises offers its guests an enriching, immersive and safe cruise experience inspired by the Company’s European heritage, where they can enjoy international dining, world-class entertainment, award-winning family programs and the very latest user-friendly technology on board. To learn more about contemporary brand’s itineraries and experience on board its ships, click here.

Meanwhile, the luxury brand, Explora Journeys, is set to start operating in 2023 with a fleet featuring the latest and most advanced environmental and maritime technologies available. The brand’s first ship will have a gross tonnage of 63,900 GT and feature 461 of the largest suites at sea, all with oceanfront terraces. These ships will introduce a broad range of new guest experiences and other activities to the luxury segment, along with generous public spaces ratios and highly innovative designs. For further information about Explora Journeys, click here.

MSC has long been committed to environmental stewardship with a long-term goal of achieving net zero emissions for its operations by 2050. The Company is also a significant investor in next-generation environmental marine technologies, to support their accelerated development and availability industry-wide. To learn more about the Company’s environmental commitment, click here. 

Finally, to learn more about the MSC Foundation, MSC Group’s vehicle to lead, focus and advance its conservation, humanitarian, and cultural commitments, click here.

[1] Based on the EEDI index in grams of CO2 per nautical mile and gross tonnage.

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US: Puerto Cortés handles its first LNG-powered ship

Operadora Portuaria Centroamericana (OPC), International Container Terminal Services, Inc.’s (ICTSI) Honduran business unit that operates in Puerto Cortés, recently welcomed the inaugural call of Seaboard Blue – 

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the first container vessel in the world to be converted from conventional diesel to liquified natural gas propulsion. Seaboard Blue docked at Honduras under the North and Central America service of Seaboard Marine, a premiere ocean transport company providing direct, regular service between North America, the Caribbean Basin, Central, and South America. The vessel was refitted in 2017 to run on LNG. Photo shows OPC personnel presenting a token to the Seaboard Blue vessel master.

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Japan: NYK welcomes 2nd LNG-powered RoRo into the fleet

Japanese shipping major NYK Line has taken delivery of the second of four LNG-fuelled pure car truck carriers (PCTC), named Wild Rose Leader.

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The 7,000-CEU car carrier was built by Chinese shipbuilder China Merchants Jinling Shipyard (Nanjing) Co.

The four units were ordered by NYK at the yard back in 2020.

The vessel measures a total length of 199 meters and a molded width of 38 meters, making it one of the largest ships in its class. One of the key features of this ship is its 12 car decks, 4 movable decks, 1 tailgate and 1 side door, which offer ample space for cargo and passengers.

To facilitate movement within the ship, the decks are connected by movable ramps, ensuring seamless connectivity and ease of access for passengers and crew.

The ship, like its sister vessels, is equipped with battery hybrid technology, aimed at improving fuel efficiency by mitigating main engine and electrical generator load fluctuations through the support of batteries.

The vessel is fitted with Winterthur Gas & Diesel (WinGD) 7X62DF2.1 low-pressure dual-fuel engines by CSSC-MES Diesel (CMD). The engine includes iCER (Intelligent Control by Exhaust Recycling). This means that the engine consumes less gas and reduces GHG by cutting methane emissions from the exhaust gas by approximately 50%.

The use of LNG fuel combined with other energy-efficiency solutions such as hull modification is expected to contribute to a reduction of sulfur oxide (SOx) emissions by 99% compared to ships fueled by heavy fuel oil. Likewise, nitrogen oxide (NOx) emissions are set to be cut by 96%, and CO2 emissions by approximately 40% or more (per unit of transportation), according to NYK Line.

The first vessel from the series, Jasmine Leader was delivered in February 2023.

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South Korea: Alpha Gas welcomes newbuild 174,000 cbm LNG carrier

Greek ship management company Alpha Gas has taken delivery of its new LNG carrier from South Korean shipyard Hyundai Samho Heavy Industries (HSHI).

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With a cargo capacity of 174,000 cbm, the LNG carrier Energy Fidelity is the newest addition to Alpha Gas’ in-house commercial and technical management.

According to the company, Energy Fidelity is the first LNG carrier propelled with XDF engines to join its fleet from a series of three to be delivered by HSHI within 2023-2024.

The vessel is also equipped with a high capacity and highly efficient reliquefaction plant, air lubrication system (ALS), two shaft generators (PTO) and air resistance shield.

Based on Alpha Gas’ social media update, the LNG carrier was delivered from the yard straight into her first employment – a medium-term charter with “a world-class Far East-based charterer”.

The Greek company now operates a fleet of six LNG carriers with diverse main engine technologies, including TFDE, MEGI and XDF.

Its fifth unit, the 173,400 cbm Energy Intelligence, was delivered in 2021.


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

Keppel plans to ship hydrogen from Australia to run a floating data center park in Singapore

Hundreds of tons of liquid hydrogen could be shipped each day from Woodside’s giant H2Perth facility

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Keppel Corporation is planning to ship massive amounts of liquid hydrogen from Australia to power its data centers in Singapore.

The data center operator has signed an agreement with Australia’s Woodside Energy which could result in up to 1,000 tonnes (1,100 tons) of liquid hydrogen being shipped in tankers to Singapore, from Woodside’s facilities, which include a giant hydrogen plant known as H2Perth.

The hydrogen would be used to power a proposed floating data center campus known as Datapark+, which has just received regulatory approval.

There is a huge demand for data centers in Singapore, as it functions as a hub for Southeast Asia, but development has been severely restricted by the government since the sector has massive demands for energy and land. Data centers are already using around seven percent of Singapore’s electricity supply, and a major expansion would jeopardize any plans to decarbonize, since the island city-state’s grid is almost entirely reliant on fossil fuel as an energy source.

Singapore imposed a moratorium on new data center projects in 2019, which was officially lifted at the beginning of 2022. Since then, the government has invited new applications to build data centers, within a strict total limit to the capacity available. Operators including SGTech have criticized the cap on new data center builds.

In response, Keppel took part in a study with Woodside, beginning in December 2022, exploring the possibility of a hydrogen supply chain from Australia to Singapore. Osaka Gas also joined the study to investigate the possibility of extending the hydrogen shipping route to Japan, which also has a high demand for data centers and a very limited green energy capacity.

Australia, with its large land mass, has great potential to produce renewable energy from solar and wind, and Woodside proposes to convert this energy into hydrogen which can be shipped in liquid form to other parts of the world.

The government of Western Australia is supporting Woodside’s proposal for H2Perth, a hydrogen electrolysis plant to be built on 130 hectares of vacant industrial in the Kwinana Strategic Industrial Area and Rockingham Industry Zone, in south metropolitan Perth. The site aims to provide low-cost green hydrogen to local consumers and boost renewable power generation by providing a stable demand.

H2Perth also hopes to export around 1,500 tonnes per day of hydrogen – with Keppel potentially taking the lion’s share.

The biggest potential issue raised over the plan has been the high demand for water, which is electrolyzed to produce hydrogen and oxygen. Electrolysis needs clean water, which will also be in demand owing to climate change. Seawater can be desalinated, although this is an energy-intensive process.

In the non-binding “heads of agreement”, Woodside agrees to potentially supply around 1000 tonnes per day of liquid hydrogen to Keppel by 2030, the year in which the two parties expect the technologies to be in place for the supply chain

Keppel says the hydrogen would be used for Datapark+, the new name for the floating data center campus it has been developing for more than three years.

The Datapark+ name was revealed in a briefing released for Keppel’s annual general meeting, in which Keppel said: “We have received approval from the regulatory authorities to proceed, and are currently in negotiations with the site owner for project deployment.”

The company added: “We are also exploring the development of Datapark+, a nearshore data center campus project envisioned to be scalable, state-of-the-art, and low-carbon, bringing together the Group’s diverse expertise in developing and operating data centers as well as clean energy and infrastructure solutions.”

Previously, Keppel signed an agreement with Toll Group, an Australian subsidiary of Japan Post Holdings, to build the proposed floating data center park, and announced a location for it – Toll Group’s Loyang Offshore Supply Base.

The company has also signed an agreement with Royal Lopaz for liquid natural gas, as well as a separate agreement with City Gas and City-OG Gas Energy Services to potentially supply LNG and hydrogen power for the floating campus.

Woodside Executive Vice President of New Energy Shaun Gregory said: “Liquefying hydrogen provides the opportunity to export energy that can contribute to the decarbonization goals of customers and provide an economic and trade opportunity that supports the Singapore-Australia Green Economy Agreement.”

Keppel Data Centres CEO Wong Wai Meng CEO said: “We are investing to create a sustainable future for data centers through innovative lower-carbon solutions. Access to a stable supply of hydrogen to power our data centers in Singapore will accelerate our decarbonization efforts as we transition towards net zero emissions.”

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Ohmium to provide 52 tonnes of green hydrogen for Spanish LNG terminal project, secures $250m in fundraising round

Ohmium International has announced plans to supply its electrolysers to a Spanish LNG terminal to cut emissions and secured $250m in a fundraising round.

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The US electrolyser manufacturer has said it will supply its PEM technology to Efficiency for LNG Applications (E4Efficiency) for its project to decarbonise its terminal in southern Spain.

Dubbed the Huelva project, it will see up to 52 tonnes of green hydrogen annually to replace methane used in a gas flare pilot flame at the Huelva Liquefied Natural Gas (LNG) regasification terminal in Andalusia.

Hoped to mitigate up to 343 tonnes of annual carbon dioxide emissions, the project has received backing from the European Regional Development Fund (ERDF) and Spain’s Institute for Energy Diversification and Saving (IDAE).

“E4Efficiency is an innovator when it comes to the deployment of clean technology so we’re thrilled that Ohmium’s cutting-edge PEM electrolysers have been chosen to produce green hydrogen that will directly replace natural gas use on-site at the LNG terminal,” said Arne Ballantine, CEO of Ohmium International.

The Ohmium CEO continued to say that the company is helping to accelerate the deployment of green hydrogen across the EU, supporting its goals of reducing carbon emissions by at least 55% by 2030, adding, “We are looking forward to collaborating with companies across the EU and beyond to realise the potential of green hydrogen.”

Just last month (March 22), the company announced two new European hires in the form of Igor Nus, Vice President of Sales and Business Development; and Melchor Gamarro, General Manger, Spain and Business Director Southern Europe, to help accelerate business growth across Europe

In November last year (2022), Ohmium revealed it would supply 120MW of its PEM electrolysers to NovoHydrogen to see hydrogen used as a zero-carbon fuel replacement for a portion of gas usage at a peaking power plant in New Jersey, US. Ohmium has announced the close of a $250m Series C growth equity financing, which was led by TPG Rise Climate, the climate investing strategy of TPG’s global impact investing platform TPG Rise, and also included participation from Hanover Technology Investment Management and existing investors Energy Transition Ventures and Fenice Investment Group.

The funding will be used to support Ohmium’s expansion to 2GW in annual manufacturing capacity and the deployment of projects for the company’s growing global customer pipeline in key regions including the US, Europe, India and the Middle East. The investment will also provide significant capital to scale Ohmium’s business, including accelerating its pioneering research and development programs to reduce the cost of green hydrogen production.

Ahmad Chatila, Chairman and founding investor of Ohmium and Managing Partner of Fenice Investment Group, said, “Green hydrogen is critical to the rapid decarbonisation of hard-to-abate sectors. Ohmium is uniquely positioned to be a leading provider of emissions-free hydrogen technology given its customer-focused, modular solution that enables businesses to achieve an extremely competitive levelised cost of hydrogen (LCOH).”

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Hydrogen, the ultimate clean energy: from demonstration projects to networked station development

According to the International Energy Agency, the transport sector accounts for approximately 23% of global CO2 emissions, a figure likely to grow 20% by 2050. To achieve the objectives of the Paris Agreement and limit global warming to a 2°C increase, the sector’s CO2 emissions must fall by 90% by 2050.

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Hydrogen is a low-carbon alternative energy that can significantly reduce transport-related air pollution. Its sole byproduct is water. It limits pollutants and CO2 emissions, and allows for silent, rapid refuelling, making it suitable for long-distance trips. Hydrogen powers fuel-cell vehicles, now in use in a growing number of sectors. It also has advantages for heavy and light mobility, captive fleets such as taxis, maritime transport and railways.

In 2022, as geopolitical events triggered a steep rise in energy prices, particularly natural gas, hydrogen demonstration projects proliferated. The number of countries working on hydrogen-refuelling stations continues to grow. By 2030, the European Union aims to have one station every 200 kilometres along its entire road network. Hydrogen power has the potential to address environmental concerns and provide clean energy into the future.

Hydrogen: the alternative energy for the transport sector

The ‘chicken-and-egg’ paradox has long constrained the development of the European hydrogen sector. With few hydrogen-powered vehicles on the market, few refuelling stations are needed. Yet precisely this lack of stations forms an obstacle for the development of hydrogen-powered fleets.

That situation is now changing – for the better. France, for example, was home to 400 hydrogen-powered vehicles and 29 hydrogen stations in 2022. By 2030 the country is expected to have 450,000 vehicles and 1,000 to 1,700 hydrogen stations. The recent launch of the European Hydrogen Bank (EHB) to boost development in the sector may put an end to the chicken-and-egg situation once and for all.

With the costs of hydrogen production measuring up well against traditional fuel-production costs, more and more companies are turning to this environmentally friendly solution to decrease their CO2 emissions. As costs shrink further still thanks to production through wind and solar power, hydrogen is becoming an increasingly attractive option, especially for heavy and long-range transport.

Hydrogen subsidies and investments for the future

The energy crisis has accelerated the search for alternative and renewable energies. In September 2022, the European Union unveiled REPowerEU: a €3 billion investment plan to finance and scale up hydrogen projects in the bloc. The new European Hydrogen Bank will roll out an initial investment of over €800 million in renewable hydrogen production, with plans to increase this amount in the near future. In March 2023, the EU identified 26 alternative energy projects to receive in excess of €188 million in development funding. Of these projects, 10 will establish hydrogen-refuelling stations in countries such as France, Spain and Sweden. By 2050, hydrogen-related investments are set to surpass a dozen trillion euros. This will demand a great deal of cooperation between the many players involved in R&D, projects and agreements.

The year 2050 may feel distant. These initiatives show, however, that many different players are committed to developing this alternative energy with an eye to the future.

The potential of hydrogen: cross-energy applications

Hydrogen is a viable source of energy for heavy-duty vehicles, especially over long distances. The production process results in zero CO2 emissions, unlike that for petrol and diesel vehicles. Refuelling times are almost equivalent, however, and hydrogen-powered vehicles can drive thousands of kilometres before requiring refilling, giving them an edge over electric trucks. Moreover, electric vehicles need to account for the size and weight of their batteries, while hydrogen-powered lorries can carry the same load as traditional fuel trucks.

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