NGS’ NG/LNG SNAPSHOT – April 1-15, 2022
National News Internatonal News
NATIONAL NEWS
City Gas Distribution & Auto LPG
21 bids for city gas permits
The PNGRB had offered five geographical areas, spread over 27 districts in five states, in the 11A city gas distribution (CGD) bid round. Seven companies have put in 21 bids for licence to retail CNG to automobiles and piped cooking gas to households in five areas in states such as Uttar Pradesh and Bengal, oil regulator PNGRB said.
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The Petroleum and Natural Gas Regulatory Board (PNGRB) had offered five geographical areas, spread over 27 districts in five states, in the 11A city gas distribution (CGD) bid round. Bids for the five geographical areas were received on April 6, PNGRB said in a statement.
A sixth geographical area of Yanam in Pondicherry has been added to the bid round and bids for this area are due on May 10. In Bengal, Birbhum, Murishdabad, Malda and Dakshin Dinajpur districts have been clubbed into one geographical area. The five geographical areas offered in the 11A bid round include Lakhimpur Kheri, Sitapur, Siddharth Nagar and Maharajganj districts of Uttar Pradesh rolled into one geographical area. Banka in Bihar, and Dumka, Godda and Sahibganj districts of Jharkhand have been clubbed into one geographical area. Chhattisgarh’s Koriya, Surajpur, Balrampur and Surguja districts have been clubbed into one geographical area, while Kondagaon, Bastar, Sukma, Narayanpur, Bijapur and Dantewada are under another area.
https://www.telegraphindia.com/business/21-bids-for-city-gas-permits/cid/1859976
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10 new CNG pumps to be opened in Dehradun ahead of Yatra season
Vehicles coming to Dehradun during the Chardham season will not have to worry about getting CNG. 10 new CNG pumps are going to open in Dehradun soon. Presently 6 CNG Pumps Operated. A proposal was prepared by GAIL Gas Limited to build 16 CNG pumps in Dehradun district. At present, six CNG pumps are operating.
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Out of this, three pumps were operated last month at Haridwar Bypass, Doiwala, Rishikesh. Whereas CNG pumps at Malsi, Race Course and Sahastradhara Road have been in operation since much earlier.
90% work of these pumps completed. Out of the pumps being prepared, they are being prepared at Ring Road, Transport Nagar, ISBT MDDA, Chakrata Road, Premnagar, Vikasnagar, Rishikesh, Shimla Bypass, Saharanpur Road, Harrawala. 90 percent of these works have been completed.
Shilpi Tandon, Senior Manager, GAIL, said that the CNG pump has a capacity of 3000 kg. At present, CNG is being sold in Doon at Rs 77 per kg.
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Natural Gas/ Pipelines/ Company News
EIL, PNGRB sign MoU for capacity assessment of natural gas pipelines
Engineers India Limited (EIL) and Petroleum and Natural Gas Regulatory Board(PNGRB) have signed a Memorandum of Understanding (MoU) for carrying out Capacity Assessment of Natural Gas Pipelines. Under the MoU, EIL shall be providing niche services for assessing capacities of Natural Gas Pipelines.
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The Petroleum and Natural Gas Regulatory Board (PNGRB) has been constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006 to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets and for matters connected therewith or incidental thereto.
EIL is a premier engineering consultancy and technology licensing company in the fields of hydrocarbons, pipelines, petrochemicals, fertilizers, metallurgy, ports & Terminals, and other sectors of the industry.
https://www.psuconnect.in/news/eil-and-pngrb-sign-mou-for-capacity-assessment/32081/
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India to lead Asia’s transmission pipelines projects through 2026
India is likely to remain as one of the major countries to drive Asia’s new-build trunk/transmission pipeline additions, contributing about 37% of the region’s oil and gas pipelines projects count by 2026.
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GlobalData’s latest report, New Build Trunk-Transmission Pipelines Projects Analytics and Forecast by Project Type, Regions, Countries, Development Stage, and Cost 2022-2026, reveals that out of 57 projects to commence operations by 2026 in India, gas pipelines projects would be at 30, product pipelines would be at 23, and oil pipelines at four.
The Kandla–Gorakhpur product pipeline is one of the key projects with a length of 2,809 km and costing US$1.4bn. The LPG pipeline would run from Kandla port in Gujarat state to Gorakhpur in the Uttar Pradesh state. The pipeline project would serve LPG bottling plants in the states of Gujarat, Madhya Pradesh, and Uttar Pradesh and meets growing demand for the commodity.
The Jagdishpur–Haldia Phase II gas pipeline is also one of the key projects with a length of 1,900 km and estimated at US$1.4bn. The pipeline would be operated by GAIL covering the Indian states of Uttar Pradesh, Bihar, Jharkhand, Odisha, and West Bengal. The pipeline project aims to connect India’s eastern region with national gas network catering to the needs of domestic and industrial consumers.
The statements, opinions and data contained in the content published in Global Gas Perspectives are solely those of the individual authors and contributors and not of the publisher and the editor(s) of Natural Gas World.
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Let TSO manage entire capacity of natural gas pipelines: Shell
Shell India wants the proposed Transport System Operator (TSO) to manage the entire capacity of all the natural gas pipelines in the country, and not just the common carrier capacity, to help ensure non-discriminatory third-party access to pipelines.
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The government had proposed setting up a TSO last year to manage the common carrier capacity of natural gas pipelines. The oil ministry and the Petroleum and Natural Gas Regulatory Board are working out the structure of TSO and the rules to guide its functioning.
The TSO may not entirely take away the advantage enjoyed by pipeline operators, which also market gas. But if the TSO manages the entire capacity, it brings a little more transparency to the system as the pipeline owners will also be subject to disciplinary charges for creating gas imbalances in the system. Pureplay gas marketers face ship-or-pay charges, which don’t affect those who own the pipeline.
Shell, which marketed about 0.75 million tonnes of LNG to a variety of customers in 2020 in India, has witnessed nearly a 40% decline in volumes due to a global spike in prices that has made the commodity less acceptable to consumers.
Shell is, however, upbeat about the long-term prospects of LNG in the country. It is also planning to open its first LNG fuelling station in the country, contributing to the government’s larger plan to introduce LNG to long-haul trucks to displace diesel.
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Policy Matters/ Gas Pricing/ Others
India doubles domestic natural gas prices in sync with global surge
The government on Thursday, March 31, more than doubled the price of natural gas that is used to produce electricity, make fertilisers, turned into CNG and piped to household kitchens for cooking, on the back of a spike in global energy prices.
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The price of gas produced from old regulated fields, such as the nation’s largest gas field of Bassein of ONGC, rise to a record high of USD 6.10 per million British thermal unit (mmBtu) from the current USD 2.90 per mmBtu, according to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC).
The new price, result in a hike in CNG and piped cooking gas rates, which will be for six months beginning April 1. The rate applicable to newer and difficult fields such as ones of Reliance Industries Ltd in the deepsea KG-D6 block will get USD 9.92 per mmBtu for April-September as compared to the current USD 6.13 per mmBtu, the PPAC notification said.
These are the highest prices ever paid to Indian gas producers. The government sets the price of gas every six months on April 1 and October 1 each year based on rates prevalent in gas surplus nations such as the US, Canada and Russia. The new rates reflect the spike in prices at the global benchmarks – US-based Henry Hub, Canada-based Alberta gas, UK-based NBP and Russia gas as well as in rates of liquefied natural gas (LNG) in 2021 following a supply crunch with the return of demand after devastation by the pandemic.
Domestic rates are fixed based on volume-weighted average price in a year in these global benchmarks with a lag of one quarter. So, the price for April 1 to September 30 is based on the average price from January 2021 to December 2021. This is the period when global rates shot through the roofs.
For difficult fields like discoveries in deepwater, ultra-deepwater and high pressure-high temperature areas, a slightly modified formula is used by incorporating the price of LNG, which too had shot through the roof in 2021. Reliance-bp operated KG fields are classified as difficult fields. Such field operators are allowed to discover market price but this is subject to cap fixed for the difficult fields twice every year.
For producers, this will be the first time in six years that they will get a remunerative price.
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Mahanagar Gas hikes CNG, PNG prices again in Mumbai
Mahanagar Gas Limited (MGL), which supplies Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) in and around Mumbai, has hiked the prices with effect from the midnight of April 12.
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While the CNG price has increased by Rs 5/kg, PNG price has been hiked by 4.50/Standard Cubic Metre (SCM). CNG will now cost Rs 72/kg and domestic PNG is priced at Rs 45.50/SCM.
This is the second increase in the prices of CNG and PNG in the month of April. On April 5, MGL increased the prices of CNG and PNG by Rs 7 and Rs 5 respectively.
The company said the selling price of domestically-produced natural gas had been increased by 110 percent by the Government of India with effect from April 1, 2022. It has further said the cost of regasified LNG, being blended to offset the shortfall in availability of domestic gas for CNG and domestic PNG segments, were at historically-high levels.
MGL cut the retail price of CNG by Rs 6 and PNG by Rs 3.50/scm in and around Mumbai effective from April 1 due to the reduction in VAT on natural gas from 13.5 percent to 3 percent by the state government.
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CNG, PNG prices hiked in Delhi, and other areas
For the second time in April, the natural gas distribution company, the Indraprastha Gas Limited (IGL) has increased the price of piped natural gas (PNG) in Delhi and nearby areas from Wednesday night. The prices of CNG (compressed natural gas) have also increased.
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The move comes in order to partially cover the hike in input gas cost.
The IGL hiked the price of CNG in Delhi by ₹2.5 per kg to ₹71.61 per kg. Accordingly, the CNG price for Noida, Greater Noida, and Ghaziabad has been hiked to ₹74.14 per kg. In Gurugram, the CNG will cost ₹79.94 per kg.
In Uttar Pradesh’s Muzaffarnagar, Meerut, and Shamli, the CNG will cost ₹78.84 per kg, while in Haryana’s Rewari it will cost ₹82.07 per kg. In Karnal and Kaithal areas of Haryana, the cost has been hiked to ₹80.27 per kg, according to a notification shared by the ANI.
The CNG cost in Kanpur, Hamirpur, and Fatehpur in UP has been increased to ₹83.40 per kg, while in Ajmer, Pali, and Rajsamand of Rajasthan, the cost of CNG stands at ₹81.88 per kg.
Meanwhile, the IGL has hiked the PNG prices as well by ₹4.25 per standard cubic meter. The PNG will cost ₹45.86 per unit in Delhi and ₹45.96 per unit in Noida, Greater Noida and Ghaziabad. While people in Gurugram will have to pay ₹44.06.
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Gujarat Gas hikes CNG, PNG prices in Gujarat
The Gujarat Gas hiked the price of compressed natural gas (CNG) in the state by Rs 2.58/kg to Rs 79.56/kg with effect from Thursday, April 14.
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The rate of the piped natural gas (PNG) was hiked by Rs 2.64 per standard cubic metre to Rs 50.76/scm.
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LNG Use / LNG Development and Shipping
Shell to set up LNG stations in India
Global energy giant Shell will foray into retailing LNG for long-haul transportation in India with its first filling station coming up in Gujarat this year as it bets big on the South Asian country’s gas market.
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Shell operates a 5 million tonnes a year liquefied natural gas (LNG) import facility at Hazira in Gujarat and has a small network of petrol pumps; it is now looking at the LNG for trucks/buses market as a growth avenue. While the first site is likely to be an exclusive LNG retail outlet, the company may in the future look to co-locate the LNG refuelling facility within petrol pumps.
The Indian government is pushing the use of LNG as fuel for long-haul transportation. It is targeting 50 stations in Gujarat, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Rajasthan in next three years and ultimately 1,000 outlets. LNG, which is natural gas super-cooled to liquid form, has much less carbon footprint than diesel. Besides environmental benefits, it is also cheaper on long-haul routes.
https://www.tbsnews.net/world/south-asia/shell-set-lng-stations-india-401922
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OILEX restarts gas production at India’s cambay field
The company last week received the consent to operate from the Gujarat Pollution Control Board. Sydney-listed Oilex has restarted production and gas sales at the Cambay field in the Indian state of Gujarat, the company stated on April 11.
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The government of India has approved the transfer of assignment of the 55% participating interest in the Cambay field held by state-run Gujarat State Petroleum Corporation (GSPC) to Oilex.
Oilex had been in dispute with GSPC over ownership. In April last year, the two parties settled the matter and in June Oilex executed a binding agreement to acquire GSPC’s 55% interest in the Cambay field, providing the company with a 100% working interest in the Cambay concession. The company in December received the final court order regarding the dispute.
https://www.naturalgasworld.com/oilex-restarts-gas-production-at-indias-cambay-field-97512
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Petronet may look at building 4th LNG import terminal to meet energy demand
Petronet operates a 17.5 million tonnes a year LNG import facility at Dahej in Gujarat and another 5 million tonnes facility at Kochi in Kerala.
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Petronet LNG Ltd, the operator of the world’s largest liquefied natural gas (LNG) import terminal, may look at setting up a fourth facility in the country to meet the rising energy demand in Asia’s third-largest economy, its CEO A K Singh said.
Petronet operates a 17.5 million tonnes a year LNG import facility at Dahej in Gujarat and another 5 million tonnes facility at Kochi in Kerala. It is looking to set up a floating LNG import terminal at Gopalpur in Odisha in the next 3 years at a cost of Rs 1,600 crore.
With limited domestic production, gas demand will have to be met through imports.Natural gas consumption will have to rise to over 500 million standard cubic meters per day from the current 165 mmscmd to achieve the government’s goal of raising the share of natural gas in the country’s primary energy basket to 15 per cent by 2030 from the current 6.7 per cent.
With domestic production of gas barely meeting half of the current consumption, import of gas in the form of LNG will have to grow. According to Shell, India would need 35 to 40 million tonnes of additional LNG imports between 2020 to 2040. (1 million tonnes of LNG is equal to 3.60 mmscmd).
Besides Petronet’s terminals, India currently has an operational import facility at Hazira and Mundra in Gujarat, Dabhol in Maharashtra and Ennore in Tamil Nadu (all 5 million tonnes per annum capacity each).
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Electric Mobility/ Hydrogen/ Bio- Methane
NTPC, Gujarat Gas Limited partner to blend green hydrogen in Piped Natural Gas
Green hydrogen will be produced by using electricity from the existing 1 MW floating solar project of NTPC Kawas. With the continued focus on a clean environment, NTPC has taken up the initiative of blending green hydrogen in Piped Natural Gas (PNG) network of GGL (Gujarat Gas Limited) at NTPC Kawas.
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A formal agreement between the two companies has been signed today in the presence of Shri. Mohit Bhargava, CEO, NTPC REL & ED RE, NTPC, and Shri. Sanjeev Kumar, MD-GGL & GSPL.
Green hydrogen will be produced by using electricity from the existing 1 MW floating solar project of NTPC Kawas. This will be blended with PNG in a predetermined proportion and will be used for cooking applications in NTPC Kawas Township. Initially, the percentage of hydrogen blending in the PNG shall be around 5% and after successful completion, it shall be further increased.
NTPC is the premier energy utility in the country with an installed capacity of 69 GW, with a diversified fuel mix. The NTPC group plans to achieve 60 GW of RE in a decade and is executing several pilot projects in the green hydrogen space.
GGL is India’s largest City Gas Distribution (CGD) Company and has a presence across 43 districts in 6 states and 1 Union territory
This hydrogen blending project at NTPC Kawas is a pioneering effort and the first of its kind in the country. This is a step toward the decarbonization of the cooking sector and self-sufficiency for the energy requirements of the nation.
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
New CEO at LNG Canada
The joint-venture building a major liquefied natural gas terminal at Kitimat, B.C. has named Jason Klein as its new chief executive officer. LNG Canada says Klein was previously a vice-president at Shell Canada, which owns a 40 per cent stake in the joint venture.
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He was in charge of developing Shell’s Integrated Gas business, including oversight of the LNG Canada project. Klein is taking over from interim CEO Steve Corbin, who will return to his previous role of vice-president and executive project director. Corbin stepped into the role after Peter Zebedee, LNG Canada’s chief executive since 2019, left the company in March. Construction on the terminal is now more than 60 per cent complete. The project is expected to be up and running by the middle of the decade.
https://www.castanet.net/edition/news-story-365899-6-.ht
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China: Gas output in waters off Hainan hits high of 20m cubic meters/day
China National Offshore Oil Corp (CNOOC) has been stepping up oil and natural gas exploration to ensure domestic energy security, with the gas output of the energy station in the waters off South China’s Hainan Province hitting a record high of 20 million cubic meters a day.
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Liu Shujie, deputy manager of the Hainan branch of CNOOC, said that the group has built the largest offshore natural gas production facility in the Lingshui, Dongfang, Ledong, Yacheng and Wenchang waters off Hainan. The facility has 16 offshore platforms, three land processing terminals and numerous pieces of subsea production equipment, the Xinhua News Agency reported.
Deep Sea No.1, the country’s first self-operated 1,500-meter deep-water gas field, located 150 kilometers off the city of Sanya in Hainan, started production in June 2021. It has been playing a positive role in driving up the province’s economic growth. The gas field is able to supply 10 million cubic meters a day, which means it has the capacity to provide 3 billion cubic meters of deep-water natural gas annually. In the first two months of 2022, the added value of Hainan’s petroleum and natural gas exploration industry skyrocketed 1,264.2 percent year-on-year, according to the Hainan statistics bureau.
Over the period, China’s output of natural gas increased 6.7 percent year-on-year to 37.2 billion cubic meters, data from the National Bureau of Statistics (NBS). With the growth of domestically produced gas, China’s imports have fallen. In the first two months of 2022, gas imports slid 3.8 percent year-on-year to 19.86 million tons, according to the NBS.
https://www.globaltimes.cn/page/202204/1258942.shtml
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Starving for Natural Gas, Argentina gets relief from Bolivia
Argentina is getting help from neighbouring Bolivia in its bid to muddle through the upcoming southern hemisphere winter without rationing natural gas supplies. Bolivia agreed to send extra fuel in the cold, high-demand months of May to September, according to Argentine government statements.
The Andean nation is currently shipping roughly 7.5 million cubic meters a day to Argentina by pipeline, but talks to ramp up provisions in winter were at an impasse because Bolivia’s production has been declining and it’s been prioritizing sales to Brazil, a larger economy.
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Bolivia finally agreed to send Argentina at least 14 million cubic meters a day in the winter — and Argentina has first dibs on up to 18 million cubic meters at an average price of about $12 per million British thermal units. The Bolivian provisions would substitute 14 cargoes of LNG that’s trading at more than $35, saving cash-strapped Argentina $770 million.
The 14 million cubic meters is the same volume that Bolivia signed up to last year but less than the 20 million it sent at the height of winter in 2020, according to state news agency Telam. Despite owning shale deposits that give it huge export potential, Argentina’s natural gas production can’t even meet domestic demand because a bad business climate has constrained investments, especially in pipelines.
Argentina signed a 20-year gas deal with Bolivia back in 2006 before any wells had been drilled in vast shale formation Vaca Muerta. Volumes and pricing are regularly renegotiated.
https://www.bloombergquint.com/onweb/starving-for-natural-gas-argentina-gets-relief-from-bolivia
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Natural Gas / LNG Utilization
US consumption of natural gas to increase
The US Energy Information Administration (EIA) forecast in a report that the consumption of natural gas in the country will average 84.1 billion cubic feet per day (Bcf/d) in 2022, up 1 per cent from 2021.
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In its April’s Short-Term Energy Outlook (STEO), EIA said the increase is a result of colder forecast temperatures in 2022 compared with 2021, which results in more consumption in the residential and commercial sectors. The US natural gas consumption will average 84.7 Bcf/d in 2023, the report forecast.
US LNG exports averaged 11.9 Bcf/d last month, an increase of 0.7 Bcf/d from February, said the report, expecting high levels of US LNG exports to continue in 2022, averaging 12.2 Bcf/d for the year, a 25% increase from 2021. US dry natural gas production will average 97.4 Bcf/d, 3.8 Bcf/d more than in 2021, said the report, forecasting an average of 100.9 Bcf/d in 2023.
Increasing renewable generation will also lead to the decline of coal’s share of generation from 23 per cent in both 2021 and 2022 to 21 per cent by 2023. US energy-related carbon dioxide (CO2) emissions increased by more than 6 per cent in 2021 as economic activity increased and contributed to rising energy use.
EIA is a statistical and analytical agency within the US Department of Energy.
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Global LNG Development
ENI signs deal with Egypt to boost LNG exports to Italy
Agreement with state-owned EGAS will boost use of Damietta LNG plant on country’s north coast. Italian major Eni and the Egyptian authorities have struck a deal that aims to maximise gas production and liquefied natural gas exports from the North African nation.
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The move comes at a time when Europe, and Italy in particular, are scouring the world to secure gas supplies that can replace piped imports from Russia, and just days after Algeria agreed to boost gas exports to Italy. An agreement signed in Cairo by Magdy Galal, chairman of Egypt’s state gas company Egas and Guido Brusco, Eni’s recently appointed chief operating officer of natural resources, aims to “promote Egyptian gas export to Europe, and specifically to Italy, in the context of the transition to a low carbon economy.”
The parties agreed to commercialise Egyptian gas reserves by increasing jointly operated gas activities and identifying opportunities to maximise short-term gas production. This agreement, said Eni, together with a deal signed last year for the restart of Damietta liquefaction plant, will generate up to 3 billion cubic metres of LNG cargoes in 2022 for the Italian major.
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Hyundai Glovis secures long-term LNG transport contract from Australia’s Woodside
Hyundai Glovis, the logistics wing of South Korea’s Hyundai auto group, has secured a long-term contract from Woodside, an Australian petroleum exploration and production company, to transport liquefied natural gas by expanding its shipping portfolio from automobiles to gas transportation.
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It has signed a 10-year LNG transport contract with Woodside, with an option to extend it for five years. LNG produced in Australia will be delivered to demand sources such as Northeast Asia. For its contract with Woodside, the South Korean company has ordered LNG carriers that would be delivered in the second half of 2024.
Hyundai Glovis aims to combine its maritime transportation capabilities with Woodside’s resource development capabilities to establish a global LNG supply chain. Woodside is involved in Australia’s Pluto LNG project.
South Korea’s Hyundai shipbuilding group has unveiled a business roadmap to establish a hydrogen value chain by 2030 and develop hydrogen transport ships and create vessels with hydrogen fuel propulsion systems. A joint project led by the state-funded Korea Research Institute of Ships and Ocean Engineering (KRISO) was launched in September 2021 to develop a maritime liquefied hydrogen fuel tank.
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USA: Launch of Cameron LNG expansion to increase LNG production
TotalEnergies has signed a Heads of Agreement (HOA) with Sempra Infrastructure, Mitsui & Co., Ltd. and Japan LNG Investment – a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) – for the expansion of Cameron LNG, a liquefied natural gas (LNG) production and export facility located in Louisiana, U.S.
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Cameron LNG advances the development of this project with the selection of two contractors to conduct a competitive Front End Engineering Design (FEED) in view of the selection of the Engineering, Procurement and Construction (EPC) contractor. Development of the Cameron LNG expansion project remains subject to definitive agreements, obtaining the necessary permits, and all partners reaching a final investment decision planned for 2023. Cameron LNG is jointly owned by Sempra Infrastructure (50.2%), TotalEnergies (16.6%), Mitsui & Co., Ltd. (16.6%) and Japan LNG Investment (16.6%).
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Italy to increase Algerian natural gas imports by nearly 50%
Italy will increase Algerian natural gas imports by nearly 50% after Prime Minister Mario Draghi signed an agreement with Algerian President Abdelmadjid Tebboune. The agreement comes as Italy tries to compensate for a possible decrease in supplies of Russian gas amid the Ukraine conflict.
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Last year Italy received around 21 billion cubic meters of gas from Algeria, compared to around 29 billion from Russia, which currently supplies nearly 40 percent of Italy’s needs. Italy imports about 95 percent of the gas it consumes, and is one of the European countries most dependent on Russian gas. Italy has said it would support a ban on Russian gas over the Ukraine conflict if the EU is receptive to the idea.
https://www.arabnews.com/node/2061186/middle-east
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NextDecade to supply LNG to China’s ENN
U.S. liquefied natural gas (LNG) developer NextDecade Corp said on Wednesday, April 06, it had agreed to supply 1.5 million metric tonnes per annum of LNG to a unit of China’s ENN Natural Gas Co Ltd.
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Shares of NextDecade rose 2.5per cent to $6.13. Gas companies have rushed to cash in on higher natural gas prices as sanctions on Russian fuel have shocked an already tight supply.
The agreement is for a term of 20 years and supply will be from the first two trains at NextDecade’s Rio Grande LNG export project in Brownsville, Texas, with the first train expected to start commercial operations as early as 2026. NextDecade said it expects to make a final investment decision (FID) on a minimum of two trains of the Rio Grande in the second half of 2022, with FIDs of its remaining three trains to follow thereafter.
Last week, Energy Transfer LP had entered agreements to supply a total of 2.7 million tonnes of LNG to ENN Natural.
https://www.channelnewsasia.com/business/nextdecade-supply-lng-chinas-enn-2612456
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Saudi, Kuwait to develop gas field despite Iran condemnation
Tehran in late March said the deal contravened ‘previously held negotiations’, adding it ‘reserves its right to exploit’ the field. Saudi Arabia and Kuwait will develop a disputed gas field despite Iranian objections while urging Tehran to engage in negotiations.
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The Gulf allies will honour their deal branded “illegal” by Iran to develop the Arash/Dorra maritime gas field, the Saudi foreign ministry said in a statement on Wednesday, April 08.
But the two countries also issued a new invitation for Iran to negotiate over the boundary of the gas field, the subject of a dispute that goes back decades. The two concessions overlapped in the northern part of the field, whose recoverable reserves are estimated at some 220 billion cubic metres (seven trillion cubic feet). Iran and Kuwait have held unsuccessful talks for many years over their disputed maritime border area, which is rich in natural gas.
The two countries also stand on opposite sides in the war in Yemen, where a Saudi-led coalition has been fighting against the Iran-aligned Houthi movement since 2014. The first round of secret talks, which was held in Iraq’s capital in April 2020, had signalled a potential thaw between Iran and Saudi Arabia.
https://www.aljazeera.com/news/2022/4/13/saudi-kuwait-to-develop-gas-field-despite-iran-condemnation
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USA: Sempra wins FERC extension for LNG project; NextDecade also seeks more time
The Federal Energy Regulatory Commission said on Thursday, April 07, it granted an extension to Sempra Energy in building two pipelines in Texas and Louisiana to connect to its Port Arthur, Texas, liquefied natural gas plant, according to Reuters. FERC granted Sempra’s request for an extension until March 2023, for the two pipelines.
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NextDecade also is seeking an extension, to November 2028, for its proposed Rio Grande LNG project in Brownsville, Texas. NextDecade said on Wednesday that it reached a 20-year deal to supply 1.5M tons/year of LNG from Rio Grande to a unit of China’s ENN.
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Slovenia plans to start LNG imports via Croatia’s Krk terminal in October 22
Slovenia hopes to start natural gas imports through the Krk liquefied natural gas (LNG) terminal in Croatia in October, Slovenian infrastructure minister Jernej Vrtovec said. As much as one-third of Slovenia’s gas demand could be covered through imports from the Krk LNG terminal.
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Through the compressor station in Rogatec, 700,000 cubic metres of gas a day can be delivered to Slovenia (from the Krk LNG terminal), Vrtovec said during a meeting with Croatian economy minister Zdravko Coric in Krk.
Croatia has increased the capacity of the Krk terminal to 2.9 billion cubic metres per year from 2.6 billion cubic metres and would be happy to supply up to 300 million cubic metres a year to Slovenian wholesale natural gas supplier Geoplin, Coric said in the video file.
https://seenews.com/news/slovenia-plans-to-start-lng-imports-via-croatias-krk-terminal-in-oct-779742
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Bangladesh: Spot-market LNG imports rise on gas shortage
The Bangladesh government increases the import of liquefied natural gas (LNG) from the volatile spot market to overcome the countrywide gas crisis. The rise in LNG import is because of last week’s abrupt fall in gas supply from the country’s largest Bibiyana gas field, causing this crisis.
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It purchased the latest LNG cargo from the spot market aThree LNG cargoes would now be imported from the spot market in April instead of two to ramp up gas supply, said a senior Petrobangla official on Saturday. t around $35 per metric million British thermal unit (mmBtu) for April delivery. Qatargas also increased supply of LNG under a term contract through rescheduling its previous LNG cargo delivery plan for Bangladesh.
Gas production at the sixth well is uncertain as the facility got damaged when sand came out through it while producing gas. Supply from Bibiyana dropped as low as 800 mmcfd on April 03 when all six gas wells of the field were shut.
Consumers thus suffered for low gas pressure and power outage. Industrial output got affected due to lower-than-expected gas pressure and home cooking suffered. Bangladesh is struggling to cope with the mounting natural gas demand due to dwindling natural gas production from local gas fields and higher price of LNG in the international market.
Its current buying price of LNG from term suppliers hovers around $13 per mmBtu, considering the Brent crude price at an estimated $100 per barrel. Currently, the country imports five to six LNG cargoes from its two long-term suppliers. Petrobangla started importing LNG in September 2018. It has sales and purchase agreement (SPA) with Qatar’s RasGas to buy up to 2.5-million tonne per year (MTPA) of lean LNG for over 15 years. During the initial five years of the deal, RasGas will supply around 1.8 MTPA, which will increase up to 2.5 MTPA in the next 10 years. The purchase price has been set at around 12.65 per cent of the three-month average price of Brent crude oil plus $0.50 constant per mmBtu. If Petrobangla has more demand in the first five years, it can increase the import volume annually to 2.5 MTPA. For the next 10 years, it has the option to reduce the amount by 10 per cent every year.
https://www.hellenicshippingnews.com/spot-market-lng-imports-rise-on-gas-shortage/
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Shell resumes shipping LNG from Prelude off Australia
Shell Plc announced on Monday, April 11, it has resumed shipping liquefied natural gas (LNG) from its Prelude floating LNG facility off northwest Australia after a four-month shutdown due to a major power failure. A cargo completed loading and left the site on Sunday night, a Shell spokesperson said, declining to disclose the destination.
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The 3.6 million-tonnes-a-year Prelude FLNG facility lost power on Dec. 2, and Shell was unable to restore reliable power supply after trying for three days.
Shell was permitted to resume operations last month after convincing the National Offshore Petroleum Safety and Environmental Management Authority that problems had been fixed and the company could run the facility safely in the event of a power loss.
The four-month shutdown was just the latest setback that Prelude FLNG has faced since its delayed start-up in 2019. The outage at Prelude was one factor that drove up LNG prices last December. Prices have since rocketed to record highs as Europe has scrambled for gas to replace Russian exports hit by sanctions.
https://www.hellenicshippingnews.com/shell-resumes-shipping-lng-from-prelude-off-australia/
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China: Sinopec’s Qingdao LNG terminal receives its first Qatari gas
A liquefied natural gas (LNG) terminal based in eastern China and operated by state oil and gas major Sinopec Corp 0386.HK has received its first shipment from Qatar, the state-backed Shanghai Petroleum and Natural Gas Exchange said on Tuesday, April 05.
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The shipment, with a volume of 205,000 cubic metres, began offloading at Qingdao terminal in Shandong province on April 3, marking the first Qatari gas supply for the eastern Chinese province.
This gas is part of the 10-year supply deal Sinopec reached with Qatar Petroleum in March last year for annual supplies of 2 million tonnes, or roughly 2.8 billion cubic metres, starting this year.
Sinopec is expanding the Qingdao terminal in an effort to double annual capacity to 14 million tonnes by the end of 2023. The company’s LNG terminal in Tianjin, near Beijing, received first Qatari cargo under the same contract in January.
https://www.hellenicshippingnews.com/sinopecs-qingdao-lng-terminal-receives-its-first-qatari-gas/
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LNG as a Marine Fuel/Shipping
Ship-to-ship bunkering of ‘world’s 1st LNG-fueled VLCC’ done
Dutch marine fuel supplier Titan LNG has teamed up with Petronas Marine, Petronas’ marine solutions unit, to deliver liquefied natural gas (LNG) under a term supply agreement to the “world’s first LNG-fueled very large crude carrier (VLCC)”.
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The ship-to-ship bunkering of the Yuan Rui Yang VLCC, chartered by Koch Industries and owned by Cosco, took place in the port of Pasir Gudang, Malaysia using the Avenir Advantage, Petronas’ long-term chartered barge.
It is designed with the C-type LNG storage tanks, which are two 3,500 cbm LNG low-temperature storage tanks with completely independent intellectual property rights obtained for the vessel.
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USA: LNG marine fuel usage for ships is growing
One way to reduce carbon emissions is to simply burn less fuel by increasing efficiency and reducing speed, but those strategies are limited and sometimes impractical. Another method is to operate on alternative fuels, such as LNG, hydrogen, methanol, ammonia, or electricity. Of these, LNG has been adopted at the largest scale, so far.
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Internationally, LNG marine fuel is being adopted quickly by the shipping and cruise industries, which appreciate its soot-free exhaust. According to SEA-LNG, an international multi-sector industry coalition created to accelerate the adoption of LNG as a marine fuel, 2021 marked exponential growth in LNG-fueled deep-sea vessel orders, with more than a dozen operators announcing multivessel orders. These include containerships, tankers, cruise ships, bulk carriers, car carriers, and ferries.
The rapidly growing order book for LNG-fueled vessels demonstrates that increasing numbers of ship owners and operators understand that the LNG pathway is clear and well defined, according to SEA-LNG. The pathway leads to decarbonization.
https://www.workboat.com/lng-marine-fuel-usage-for-ships-is-growing
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
Canada: Waste Connections of Canada plans biogas plant, will help power fleet
Waste Connections, one of Canada’s largest providers of solid waste collection, will build a $50-million renewable natural gas facility at its Ridge Landfill in the Municipality of Chatham-Kent, Ontario.
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The biomethane will then flow through new and existing Enbridge Gas infrastructure to transport the gas to market. If approved by the Ontario Energy Board (OEB), construction could begin in the spring of 2023 and be complete by the end of 2023.
The proposed Ridge facility will capture landfill gas generated by decomposing waste and transform it into carbon neutral renewable natural gas, which will be injected into the local natural gas distribution system that supplies gas to homes and businesses. The high-quality biomethane produced there will be used as a low-carbon energy source to heat homes, power businesses and fuel vehicle fleets.
Landfill Project Manager Cathy Smith said the new plant will help Waste Connections lower its carbon footprint and fuel its fleet of nearly 300 trucks nationwide.
In helping to unlock the potential for local clean energy production, Enbridge Gas’ experienced pipeline contractors will use numerous local resources to build the facility and related pipeline. The Ridge facility could create close to 50 development and construction jobs, as well as several highly skilled permanent operational jobs.
The project is expected to reduce 110,000 tons of GHG emissions per year, and represents another step in helping Ontario reach its 2030 climate change goals. “Ontario is proud to be one of the world’s leading clean energy hubs thanks to innovative solutions, such as this one from Waste Connections and Enbridge Gas,” said Todd Smith, Ontario’s Minister of Energy.
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USA: Kenworth offers new natural gas engine in its medium duty trucks
Kenworth now offers the Cummins B6.7N natural gas engine for new Kenworth T180, T280 and T380 trucks designated for operation in the United States. The Cummins B6.7N is a 100 percent natural gas engine featuring spark-ignited combustion with cooled EGR and a maintenance-free three-way catalyst. It features a closed crankcase ventilation system and on-board diagnostics for optimal emissions performance.
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The near zero-emissions engine is certified to the California Air Resources Board’s optional low NOx standard (0.02 g/bhp-hr), which is 90% lower than the current U.S. EPA standard. Rated up to 240 hp and 560 lb-ft of torque, the Cummins B6.7N may be used with either a CNG or LNG fuel system.
The Kenworth T180 (Class 5), T280 (Class 6) and T380 (Class 7) possess excellent versatility and maneuverability, spacious 2.1-meter wide cab, exceptional visibility and driver-focused ergonomics. The Cummins B6.7N engine is available when these select medium duty trucks are also specified with an aero hood and Allison automatic transmission.
Recently, Peterbilt Motors Company also announced the availability of the Cummins B6.7N natural gas engine in its new medium duty Models 536 and 537.
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Ebro Hydrogen Corridor announced in Spain, 100 stations planned by 2030
The Ebro Hydrogen Corridor was presented this week, a project that seeks to promote interterritorial connection and serve as a link between the large regional initiatives around renewable hydrogen that are already underway in the northeast of Spain.
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The Basque Country, Navarra, Aragon and Catalonia will be the four autonomous communities that will be in charge of promoting these initiatives. This new ecosystem is called to play a leading role in the decarbonization of the surrounding industry while improving its competitiveness and attracting new investment.
Its creation, motivated by the desire to share information, analyze and study complementary actions that establish synergies between the different regional initiatives, was promoted by SHYNE (Spanish Hydrogen Network), Spain’s largest renewable hydrogen multi-sector consortium, launched in January, which plays a fundamental role as a country project due to its integrating effect. Led by Repsol, SHYNE will also provide support to the projects developed in this initiative, capacity for knowledge management and will promote research into pioneering technologies with the aim of positioning Spain at the forefront of this energy vector.
The Ebro Hydrogen Corridor will promote actions in all areas, including production, transport, uses and storage. As for the final uses of renewable hydrogen, it will be stimulated in the transport sector: the project will encourage the creation of a network with 20 hydrogen stations in 2025, an infrastructure that will have up to 100 facilities in 2030, allowing the deployment of hydrogen in land, sea and rail transport.
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