NGS’ NG/LNG SNAPSHOT – April 15-30, 2022

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City Gas Distribution & Auto LPG

No bias against CGD players in gas allocation, says petroleum board

The CGD players have raised concerns that the reduced allocation of domestic natural gas, and a 110% hike in domestic gas price from April 1 forced them to blend RLNG with domestic gas and increase the CNG and PNG price by Rs 10 per kg/scm.

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The Petroleum and Natural Gas Regulatory Board (PNGRB) has denied allegations of discrimination against city gas distribution (CGD) companies in natural gas allocations since April 2021.

A senior PNGRB official told FE that 10% extra allocation of gas used to be made to every CGD player based on their previous six months’ allocation after a review. But the reduction in sales during the Covid period lowered the base for fresh allocations. The CGD players will get the same level of hike from the March review since the sales are back to pre-Covid levels, the official said.

However, the official accepted that the allocations have not kept pace with the increased demand in the last couple of months due to which CGD players had to blend costly regasified natural gas (R-LNG) with domestic gas to produce compressed auto fuel (CNG) and piped cooking gas (PNG). The CGD players have raised concerns that the reduced allocation of domestic natural gas, and a 110% hike in domestic gas price from April 1 forced them to blend RLNG with domestic gas and increase the CNG and PNG price by Rs 10 per kg/scm.

Companies such as Mahanagar Gas (MGL) are blending around 15-20% of R-LNG with local gas. Despite a decision of the Union Cabinet to give 100% gas supply under ‘no cut’ priority to the CGD sector, current supplies are at March 2021 demand level. The ministry is supposed to make an allocation of domestic natural gas, which costs a sixth of imported LNG, every six months in April and October every year based on verified demand in the previous six months. But no allocation has been made since March 2021, PTI report added.

https://www.financialexpress.com/industry/no-bias-against-cgd-players-in-gas-allocation-says-petroleum-board/2494473/

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GAIL to invest Rs 5k cr for gas distribution network in KMC area

The Bengal Gas Company, a joint venture of GAIL and Greater Calcutta Gas Supply Corporation, is developing a City Gas Distribution Network (CGD) in the Kolkata Municipal

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Corporation area and parts of adjoining districts to provide eco-friendly and affordable greener fuel to CNG stations, PNG (piped natural gas) connections to domestic households, commercial and industrial units. The investment for the project is Rs 5,000 crore.

GAIL’s pipeline network will facilitate the supply of natural gas to 38 lakh domestic households, and CNG to more than 600 stations and a large number of industrial and commercial establishments in major industrial cities and towns of 22 districts in the state within a few years.

Speaking at a panel discussion during the session on mining and allied industries at the Bengal Global Business Summit, M V Iyer, director (business development), GAIL (India) shared details about the company’s ongoing natural gas pipeline infrastructure projects in the state of West Bengal.

https://www.thestatesman.com/bengal/gail-invest-rs-5k-cr-gas-distribution-network-kmc-area-1503063328.html

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25k households opt for PNG connection in Patna City

More than 25,000 households in the city have so far opted for piped natural gas (PNG) connection for cooking purposes by giving up liquefied petroleum gas (LPG) cylinders. The Gas Authority of India Limited (GAIL),

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which is laying underground pipelines to supply PNG to households, has created the infrastructure to cover at least 50,000 houses and apartments in the city.
The GAIL has set the target to lay the pipeline to supply PNG to 14 lakh households with an expenditure of Rs 2,500 crore under the Pradhan Mantri Urja Ganga Yojana launched in February 2019.

A GAIL official said 7,500 households in Patna are using the environment-friendly fuel. Ghayur Alam Zahiri, chief manager GAIL-Patna, said they have received application from 25,000 households for PNG connection. “It will take 15 days to 3 months to start supply of piped cooking gas to these households. We are expanding our pipeline network and one district regulating station (DRS) has been installed at Subhash Park near Gandhi Maidan, to cover the nearby areas. At many places, we could not lay pipeline because of Patna Metro Rail work,” he added.

At least six district regulating stations have so far been installed in the city at AIIMS-Patna, BIT-Mesra, IGIMS, Danapur Railway Colony, Anisabad and near Gandhi Maidan. A K Sinha, general manager of GAIL-Patna, said the company has laid more than 400-km-long pipeline and created infrastructure for PNG supply to 50,000 houses by the end of 2021-22 fiscal year, covering areas like Jagdeopath, Jalalpur, DRM Colony, RPS Colony, Rukanpura, Gola Road, AIIMS Colony, Vijay Nagar, Ved Nagar, Raja Bazaar and Ashiana-Digha Road.

https://timesofindia.indiatimes.com/city/patna/25k-households-opt-forpng-connection-in-city/articleshow/91059266.cms

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BPCL, HPCL & GAIL walk away with city gas licenses in latest bid round

State-owned Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have bagged two licenses each for retailing CNG to automobiles and piped cooking gas to households in the latest bid round, regulator PNGRB said on Wednesday, April 27.

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Seven companies had put in 21 bids for city gas licences in five areas in states like Uttar Pradesh and West Bengal.

The Petroleum and Natural Gas Regulatory Board (PNGRB) had offered 5 Geographical Areas (GAs), spread over 27 districts in five states, in the 11A city gas distribution (CGD) bid round.

BPCL won the license for a GA comprising districts such as Lakhimpur Kheri, Sitapur and Mahrajganj in Uttar Pradesh and another for Chhattisgarh’s Koriya, Surajpur, Balrampur and Surguja districts have been clubbed into one GA, PNGRB said in a statement.

HPCL won the license for a GA made up of Banka in Bihar as well as Dumka, Godda, Jamtara and Pakur districts in Jharkhand. It also won the license for GA made up of Birbhum, Murshidabad, Malda and Dakshin Dinajpur districts of West Bengal.

GAIL Gas Ltd, a unit of state gas utility GAIL, won the license for the Kodagan, Bastar, Sukma, Bijapur and Dantewada districts in Chhattisgarh. “Letter(s) of Intent to successful bidders for the 5 GAs has been issued on April 27, 2022,” the PNGRB noted.

https://www.millenniumpost.in/business/india-to-take-a-considered-view-on-cryptocurrency-sitharaman-475804?infinitescroll=1

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New push to develop city gas distribution network

Petroleum and Natural Gas Regulatory Board (PNGRB) in its 111th board meeting held on 27 April 2022 has approved issuance of letters of intent (LoI) to the three successful entities for retailing CNG to automobiles and piped cooking gas to households in five geographical areas (GAs), spread over 27 districts in five states.

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State-owned Bharat Petroleum Corporation Limited (BPCL) won the licence for a GA comprising Lakhimpur Kheri, Sitapur, Bahraich, Shrawasti, Balrampur, Siddharth Nagar & Maharajganj districts in Uttar Pradesh and the GA comprising Koriya, Surajpur, Balrampur and Surguja districts of Chhattisgarh.

https://swarajyamag.com/economy/new-push-to-develop-city-gas-distribution-network

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Natural Gas/ Pipelines/ Company News

 

MCC’s nod for piped gas supply project 

The Mysuru City Corporation council on Friday gave its consent for piped gas supply in the city which had run into rough weather over concerns by a section of the elected representatives. But it was not a smooth affair as the council meeting was held amidst

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pandemonium and ruckus created by a section of the Congress members on the grounds that the tenure of Mayor Sunanda Palanetra of the BJP was over and any decision taken would be infructuous.

A section of the members also questioned the basis on which the Budget was presented on Thursday as the tenure of the Mayor was over. But MCC Commissioner Lakshmikanth Reddy and other officials cited various provisions of the rules under which the meeting could be held and refuted the arguments. 

Amidst the din and the pandemonium the Mayor broached the subject of gas pipeline to the city which is a Central Government project and announced the council’s approval. A private gas distribution company has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to ensure supply to Mysuru and Mr. Simha had stated recently that it would be extended to various towns and cities in the neighbouring districts as well.

https://www.thehindu.com/news/national/karnataka/mccs-nod-for-piped-gas-supply-project/article65367594.ece

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ONGC drills three gas wells using new MPD technology in Tripura

The new technology – Managed Pressure Drilling (MPD) proved to be beneficial in the state because conventional drilling could not be used in these geographical locations, said ONGC. ONGC has successfully drilled three gas wells in Tripura by using new technology, a senior company official said on Sunday.

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The new technology Managed Pressure Drilling (MPD) proved to be beneficial in the state because conventional drilling could not be used in these geographical locations, said ONGC Tripura Asset Manager, Tarun Malik while speaking at a function.

Earlier, Oil and Natural Gas Corporation (ONGC) had trouble in undertaking drilling work in some locations because of different geographical formations. Malik said ONGC plans to undertake gas exploration in new geographical formation areas with the latest technology.

Currently, ONGC supplies around 45 lakh cubic metre of gas per day against installed capacity of producing 50 lakh cubic metre of gas per day. In Tripura, natural gas is used only for producing power generation in two mega power plants – NEEPCO’s RC Nagar plant and OPTC’s Palatana power plant. The demand for gas is less in the state due to lack of industrial consumption.

https://www.business-standard.com/article/companies/ongc-drills-three-gas-wells-using-new-mpd-technology-in-tripura-122041700456_1.html

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After Baigachi, oil & natural gas extraction starts at Doulatpur in North 24-Parganas district

 After Baigachi area of Ashokenagar, extraction of oil and natural gas has now started from Doulatpur area under the same police station of North 24-Parganas on Saturday. The Bengal government has given the Petroleum Exploration License (PEL)

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to the Oil and Natural Gas Commission (ONGC) for exploration to assess the presence of oil reserves in four different areas in Howrah, Hooghly, North and South 24-Parganas.

ONGC has identified several spots in the Ashokenagar area where reservoirs have been detected. It will carry out boring works at 14 more spots in Ashokenagar in the next two years. Local MLA, Narayan Goswami on Saturday visited Doulatpur area.

A senior official of ONGC handed over crude oil to Goswami as a token gesture. This comes when the exploration in one out of three blocks at Ashoknagar in North 24-Parganas will soon begin. It would lead to an investment of Rs 1,200 crore and the creation of massive job opportunities. The state government had given land at Ashoknagar in North 24-Parganas against payment of Re 1 to the ONGC for installation of the production system and allied infrastructure after studies revealed the presence of oil reserves in the area.

The Bengal government had given the land considering it to be a major project for development of the state.

https://www.millenniumpost.in/kolkata/biggest-ever-uk-delegation-to-attend-bengal-business-summit-474771?infinitescroll=1

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Smt. Pomila Jaspal shatters glass ceiling, becomes 1st woman director (finance) at ONGC

Smt. Pomila Jaspal has shattered the glass ceiling, becoming the first woman Director (Finance) of India’s top oil and gas producer ONGC on April 19, 22.

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ONGC now has an unprecedented two women executive directors – Smt. Alka Mittal is the acting chairperson and managing director as well as director (human resource) at the firm. The oil and gas PSUs under the Ministry of Petroleum and Natural Gas now have three women at the top – Smt. Vartika Shukla is the chairperson and managing director of Engineers India Ltd (EIL).

Prior to this, she served as Director (Finance) in Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC. She has also served as a director on the board of ONGC Mangalore Petrochemicals Limited (OMPL), Petronet Mangalore Hassan Bangalore Limited (PMHBL) and ONGC Petro additions Limited (OPaL).

Smt. Jaspal, 58, is a fellow member and gold medalist of the Institute of Cost Accountants of India. She replaces Sh. Subhash Kumar, who superannuated at the end of last year. She was picked for the job by government headhunter PESB in December last year and has now taken over after her appointment was approved by the Cabinet Committee on Appointments.

She has 36 years of experience across varied segments of the oil & gas industry, encompassing operating, regulatory and policy aspects of upstream and downstream industry. She was instrumental in the merger of OMPL with MRPL, paving the way for synergy and integration benefits for the ONGC Group.

Smt. Jaspal joined ONGC in 1985 as a finance and accounts officer and rose to the position of executive director, chief corporate finance where she handled varied assignments, including corporate finance functions such as direct tax, indirect tax, investor relations, corporate budget and project appraisal.

Besides working in ONGC Videsh Ltd where she handled finance of various assets like Sakhalin, South Sudan, Kazakhstan, and Colombia and steered the buyout of Azerbaijan Asset, she also worked at the Directorate General of Hydrocarbons (DGH) – the regulatory arm of the ministry in its formative years and was instrumental in developing the model production sharing contracts (PSC).

Mrs. Jaspal also worked in the Contract Cell of the ministry, with exposure to different areas of gas pricing, gas utilization policy, and formulation of policies for smooth implementation of PSCs and monitoring the royalty and profit petroleum.

https://www.republicworld.com/business-news/india-business/pomila-jaspal-shatters-glass-ceiling-becomes-1st-woman-director-finance-at-ongc-articleshow.html

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Natural gas production up 18.7%

India’s crude oil production fell 2.67 percent in the fiscal year ending March 31, as state-owned ONGC produced natural gas helped by KG production by Reliance-BP. Crude oil production, at 29.69 million tonnes (MT) in 2021-22 (April 2020 to March 2022),

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was 2.63 percent lower than the 30.5 million tonnes output a year back and 11.67 percent below the target of 33.61 million tonnes, according to official data released by the oil ministry.

India’s crude oil production has been on a decline during the past few years. From 35.7 million tonnes in 2017-18, it fell to 34.2 million tonnes in the following year and 32.2 MT in 2019-20 and 30.5 million tonnes in 2020-21. The primary reason for the decline is the ageing fields, where natural production decline has set in. The output is being maintained by investing in technologies to boost the recovery rate. Oil and Natural Gas Corporation (ONGC) produced 19.45 million tonnes of crude oil in fiscal FY22, which was 13.82% lower than the target and 3.62 percent less than the output in the previous fiscal year. This was due to less-than-anticipated production from the WO-16 cluster in the western offshore due to delay in mobilisation of a production unit and less oil in the NBP field due to an inspection-related shutdown, it said.

Natural gas output, however, rose 18.66% to 34 billion cubic meters in FY22. This is after Reliance Industries Ltd and its partner BP Plc started output from newer fields in the eastern offshore KG-D6 block. Five-times higher output from the eastern offshore, at 1.34 bcm, offset a 5.7 percent decline in production by ONGC. With demand returning with a rebound in economic activity, refineries processed 9 percent more crude oil at 241.7 million tonnes in the 2021-22 fiscal.

They produced 254.3 MT of petroleum products, up from 233.5 MT a year back and the target of 249.8 MT for the fiscal. Refinery run was 89 percent of the capacity in the fiscal, the data showed.

https://www.cnbctv18.com/energy/india-crude-oil-production-dipped-26-in-fy22-natural-gas-output-up-13214162.htm

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Nashik CNG supply improves, NMPML to deploy more buses in city

The supply of compressed natural gas (CNG) from Maharashtra Natural Gas Ltd (MNGL) has improved after its LNG-toCNG processing plant became operational at Pathardi. With the CNG supply improving, the Nashik Mahanagar Parivahan Mahamandal Ltd (NMPML)

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has increased the number of total buses from 148 to 190 during the last one month. In addition, 10 more buses will be deployed from Monday. An NMPML official said they are getting adequate CNG and will deploy all the remaining 60 buses by May-end.

The MNGL started the operations at its LNG-CNG conversion plant from the first week of March. The LNG is being brought to Nashik through tankers and converted to CNG for vehicles. The NMPML, which is the transport wing of the Nashik Municipal Corporation (NMC), took over the city bus service from the ailing Maharashtra State Road Transport Corporation (MSRTC) and started operations with 27 buses on 11 routes across the city. The transport utility has hired two contractors on procure, operate, maintain and manage the city bus service. Both the contractors had altogether procured 250 city buses — 200 CNG and 50 diesel. The NMC, however, could deploy only 148 buses, including 98 CNG operated, between July and February that too in phases owing to inadequate supply of CNG.

https://timesofindia.indiatimes.com/city/nashik/nashik-cng-supply-improves-nmpml-to-deploy-more-buses/articleshow/91059128.cms

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People opt for clean, green CNG for domestic, commercial uses in Varanasi

Varanasi is fast becoming a CNG city, with 371 diesel engine boats (DEBs) converted to CNG, and over 12,000 vehicles using CNG as fuel. Varanasi is fast becoming a CNG city, with 371 diesel engine boats (DEBs) converted to CNG, and over 12,000 vehicles using CNG as fuel.

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Besides, piped CNG is being delivered to some 12,500 houses.

There are around 900 motor boats which run on the River Ganga in Varanasi. Of these, around 371 boats, which used to operate with a diesel engine, have been converted to CNG boats in order to check pollution caused by diesel engine boats, and diesel or mobile oil leaking from engines in the river. So far, ₹15 crore (50% of the CSR agreement) has been released to get the diesel engine boats converted to CNG. While 371 diesel engine boats have been converted, 300 more are almost converted. A CNG-filling station has been set up at Khidkiya Ghat so that CNG boats may get CNG easily.

With these steps being taken, officials say that Varanasi is on the way to becoming a CNG City. Converting diesel engine boats to CNG is a dream project of Prime Minister Narendra Modi. https://www.hindustantimes.com/cities/others/varanasi-cng-city-people-opt-for-clean-green-cng-for-domestic-commercial-uses-101650739839385.html

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Vedanta invites bids for natural gas from Barmer field

Vedanta has invited bids for natural gas from its Barmer field in Rajas floor price of $7.1 per mmBtu, according to the e-auction document. Vedanta plans to auction 0.10 million metric standard cubic meters a natural gas on May 12.

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The supplies will start no later than June 1 and 31, 2023. Vedanta has the pricing and marketing freedom for the gas it produce Barmer field. The floor rate has been fixed as one dollar above the dom formula price that the government publishes every April and October formula price is $6.1 per mmBtu.

The sale price is to be calculated as the lower of Platts West India Marker p dollar or 16.67% of the average Brent price plus a premium that bidders would quote. Platts West India Marker is the liquefied natural gas (LNG) price assessment for spot physical cargoes of deli into ports in India and the Middle East region.

Vedanta has developed Raageshwari Gas Terminal to process and evacuate natural gas produced from its Ba The terminal is connected by the Barmer-Pali pipeline of GSPL India Gasnet Limited to GSPL’s high-pressur grid, which is further well connected to the national gas grid, as per the auction document.

https://economictimes.indiatimes.com/industry/energy/oil-gas/vedanta-invites-bids-for-natural-gas-from-barmer-field/articleshow/91083211.cms

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NITI Aayog bats for pricing freedom on natural gas in India

NITI Aayog favours selling all natural gas through the Indian Gas Exchange. In a step towards India’s goal of achieving a gas-based economy, the NITI Aayog has lined up a proposal to give complete marketing and pricing freedom to all natural gas produced in the country, including nominated gas fields.

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The planning body is batting for selling all natural gas through the Indian Gas Exchange (IGX), the country’s first natural gas exchange, where the buyer and seller can decide on prices in a transparent manner, said sources aware of the development.

The move, if it gets cleared by the government, will be advantageous to companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), sitting on a majority of nominated fields. At present, the notified gas price of $6.1 per metric million British thermal unit (mmBtu) is up from $2.9 per mmBtu during the October-March period.

Based on estimates, the break-even price for the ongoing and planned projects of ONGC are in the range of $5-9 per mmBtu. Based on estimates, the break-even price for the ongoing and planned projects of ONGC are in the range of $5-9 per mmBtu. IGX was set up by the Indian Energy Exchange two years ago. There are concerns, however, around the free pricing plans.

https://www.business-standard.com/article/economy-policy/niti-aayog-bats-for-pricing-freedom-on-natural-gas-in-india-122042700031_1.html#:~:text=NITI%20Aayog%20favours%20selling%20all%20natural%20gas%20through%20the%20Indian%20Gas%20Exchange&text=In%20a%20step%20towards%20India’s,country%2C%20including%20nominated%20gas%20fields

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Gas pipeline through Dahanu ESZ gets green nod

A proposed 45-km long compressed natural gas (CNG) pipeline passing through the Dahanu eco-sensitive zone (ESZ) has received environmental clearance (EC) and coastal regulatory zone (CRZ) clearance from the union environment ministry earlier this month.

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The Maharashtra Pollution Control Board (MPCB) conducted a public hearing for the same on January 27.

The project is being executed by Gujarat Gas Limited and will supply piped natural gas to homes in the Thane district. It will start from Umargam Road at Zai Village in Dahanu taluka, running parallel to existing roads under the custodianship of the public works department and the taluka municipality. The pipeline will end at Dahanu’s Kolavali village.

As per the minutes of the MPCB’s public hearing, which was attended by 35 citizens from Dahanu and nearby talukas, the main concerns raised by them were related to the destruction of mangroves and the usage of gram panchayat land in villages that fall under the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996, or PESA.

The minutes of the public hearing show that several attendees were in favour of cancelling the public hearing as prior permission from various PESA villages in the vicinity of the project has not yet been obtained. Stage-1 forest clearance and CRZ clearance from the Maharashtra Coastal Zone Management Authority (MCZMA) were granted in 2019.

In addition to EC and CRZ clearances from the Centre, however, the project also requires clearance from the Dahanu Taluka Environment Protection Authority, which is yet to consider the proposal.

https://www.hindustantimes.com/cities/mumbai-news/gas-pipeline-through-dahanu-esz-gets-green-nod-101651068246383.html

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Policy Matters/ Gas Pricing/ Others

CNG sales increase by over 9% in Patna

With the state government banning diesel-run autorickshaws and old buses in the city, sales of compressed natural gas (CNG) have increased by 9.1%. Many vehicle owners have also shifted to CNG due to the rise in prices of petrol and

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diesel. According to the data available with Gas Authority of India Limited (GAIL), the sole supplier of CNG in Patna, the sales of cleaner fuel in the city have increased from 50,000-55,000kg per day in March to 60,000kg per day now.

The CNG is being sold at Rs 72.96 per kg in Patna, after a hike of Rs 3 on April 1. The GAIL is hopeful that the daily consumption of cleaner fuel will further go up as more CNG buses and autorickshaws will hit the roads in coming days. Besides, the private operators are also replacing diesel-run minibuses with CNG buses. Six companies in Patna are currently allowed to retrofit petrol and diesel cars with CNG kits. Altogether 19 CNG stations have been functional in Patna district and one more will come up at Anisabad within a month.

https://timesofindia.indiatimes.com/city/patna/cng-sales-increaseby-over-9-in-city/articleshow/90870126.cms

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Centre considers delinking oil, gas extraction from mining tag

The MoPNG is seeking a separate category of clearance for oil and gas because if it is considered a mining activity, the environmental norms may prove to be more stringent.

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The Union environment ministry is considering a proposal to delink oil and gas extraction from mining projects, as far as environmental appraisal is concerned. If approved, oil and gas extraction will not be considered a mining activity anymore.

According to the people cited above, the ministry of petroleum and natural gas (MoPNG) has requested the environment ministry to create a separate category for appraisal of oil and gas projects on their Parivesh portal, where various environmental clearances are processed.

The minutes of a Forest Advisory Committee (FAC) meeting on March 31 said while the panel has deferred its decision on the matter, it maintained that extraction of natural gas and petroleum is not mining as per interpretation of a 2006 Supreme Court order. The MoPNG is seeking a separate category of clearance for oil and gas because if it is considered a mining activity, the environmental norms may prove to be more stringent, an official in the ministry said.

The issue of delinking hydrocarbons from mining projects was first considered by a standing committee of NBWL in 2018 while dealing with a proposal related to Tripura, where it was decided that the Tripura government should obtain the opinion of its advocate general (A-G) in the matter.

https://www.hindustantimes.com/india-news/centre-considers-delinking-oil-gas-extraction-from-mining-tag-101650047571998-amp.html

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VGL hikes domestic PNG rates again

Vadodara Gas Ltd (VGL) has decided to hike rates of piped natural gas (PNG) supplied to domestic consumers in the city by Rs 8.05. This is the second hike slapped by the city gas distribution company within a month. VGL has decided to raise domestic PNG tariff from the existing Rs 35.65 per cubic metre to Rs 43.70 per cubic metre.

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The tariff will be effective from April 1. Earlier, on March 25, VGL had hiked the rates of domestic PNG from Rs 29.61 per cubic metre to Rs 35.65 per cubic metre. VGL is a joint venture city gas distribution company floated by Gail Gas Ltd and the Vadodara Municipal Corporation. Its decision to hike the tariff will affect around two lakh consumers in the city. According to VGL, the prices of gas made available to it under the administrative price mechanism (APM) have been hiked by the government. Also, the quantity of gas available under APM was lower forcing the company to hike gas prices.

https://timesofindia.indiatimes.com/city/vadodara/vgl-hikes-domestic-png-rates-again/articleshow/91016476.cms

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LNG Use / LNG Development and Shipping

Petronet considering fourth Indian LNG facility

Indian giant already has two onshore terminals and an FSRU on the drawing board Petronet LNG may look at constructing a fourth liquefied natural gas import facility in its native India as gas demand in the country continues to grow, according to chief executive AK Singh.

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The company currently operates the 17.5 million tonnes per annum Dahej receiving and regasification terminal, currently undergoing expansion to a capacity of 22.5 million tonnes per annum, and the 5 million tpa Kochi import facility – both of which are land-based terminals.

Adding the planned 5 million tpa of additional capacity at Dahej – already the world’s largest import facility – involves construction of new jetty able to also handle propane and ethane shipments, plus an additional LNG storage tanks and bays for the truck-loading of LNG.

The company’s third LNG import terminal is a planned floating storage and regasification unit-based facility at Gopalpur in the state of Odisha, expected to enter operation within three years.

India’s demand will have to increase to more than 500 million cubic metres per day from the current 165 MMcmd if the government is to meet its goal of boosting the share of natural gasi in the primary energy mix to 15% by 2030. Domestic production today accounts for around half of current consumption, pointing to higher LNG imports. The nation already has other LNG import facilities not operated by Petronet LNG at Hazira, Dabhol, Mundra and Ennore.

https://www.upstreamonline.com/lng/petronet-considering-fourth-indian-lng-facility/2-1-1202508

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Indian LNG imports down 8% in march

India’s LNG imports in March came in at 2.61bn m3 (about 1.89mn metric tons), down 7.8% year/year, the country’s oil and gas ministry’s Petroleum Planning and Analysis Cell (PPAC) website showed on April 23. The imports were up 4.4% month/month, however.

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The cumulative imports of 31.9bn m3 (about 23mn mt) for the 12 months to March 31, 2022 (FY22) were lower by 3.4% compared with the corresponding period of the previous year.

Meanwhile, LNG imports in March cost $1bn, up from $800mn in the same month last year. In FY22, the import bill was $11.9bn, up from $7.9bn in the same period last year, the PPAC data showed.

https://www.naturalgasworld.com/indian-lng-imports-down-8-in-march-97798

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Mormugao port to explore liquefied gas handling

Continuing to explore new avenues of growth, Mormugao Ports Authority (MPA) is toying with the idea of setting up a liquefied natural gas (LNG) or liquefied petroleum gas (LPG) bunker station on 20,500sqm of land in the vicinity of the Goa International Airport,

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Dabolim. MPA has not finalised the plans and “is merely exploring the possibility and feasibility of such project” sources said. Port officials said that they are trying to supply the LPG or LNG to industries if possible. “Mormugao Port intends to establish a port-based LNG or LPG bunkering station at Dabolim on a plot owned by the port. We hope that this will create integrated infrastructure facilities and strengthen the traffic through the port,” said an official.

MPA will not operate the bunkering station and is exploring the public private partnership (PPP) route. The port will decide on the infrastructure, cost and operations at a later stage. As per MPA’s plans, ships will bring in the LPG or LNG and the gas will be transported by road to Dabolim and subsequently sold to institutional buyers, industries and retail buyers. MPA is one of the country’s major ports but has been struggling for the past decade due to the closure of mining and lack of industrial output. The port is incurring steady losses with officials saying that in order to turn profitable, the port needs to handle between 24-25 million metric tonne cargo annually. In the last financial year the port was just about able to handle 18 million metric tonnes of cargo. With iron ore mining stopped, the port has turned to other cargo particularly sugar exports to try and stay afloat. The port has not floated a tender for the gas project as yet but it may pursue the auction route if the response from the private sector is encouraging.

https://timesofindia.indiatimes.com/city/goa/mormugao-port-to-explore-liquefied-gas-handling/articleshow/91038805.cms

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LNG is the future fuel of India, Nitin Gadkari says

Union Minister Sh. Nitin Gadkari said the future fuel of the country is Liquefied natural gas (LNG). Along with this, he also informed in an interview on Tuesday, April 26, that the Ministry of Road Transport and Highways (MoRTH) will encourage flex engines for the future, which can run 100% on bio-ethanol.

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Sh. Gadkari’s comments come amid a steep rise in fuel prices across the country. The oil ministry has reportedly not made any fresh allocation of natural gas from domestic fields to the city gas sector, sending CNG and piped cooking gas prices to record highs. He also spoke about the measures taken by the Centre in the wake of recent electric vehicle (EV) accidents resulting in deaths and severe injuries to people.

During an interactive session, Sh. Gadkari reiterated that companies may take advance action to recall all defective batches of vehicles immediately. He urged companies to take advance action to recall all defective vehicles, even as he said there is some problem with EV batteries when the temperature rises in the months of March, April and May and according to him, he feels that it (electric two-wheelers catching fire) is a problem of (high) temperature.

The road transport and highways minister noted that the government wants to make EVs popular. Later he asserted that the EV industry has just started and emphasized that the government does not want to put up a hurdle. But safety is the highest priority for the government and there can be no compromise with human lives.

Last week, Sh. Gadkari, who is known for his frank views, had said that the companies found negligent will be penalised and a recall of all defective vehicles will be ordered after receiving the report of an expert panel that has been formed to enquire into the matter. The government had ordered a probe last month after an e-scooter launched by ride-hailing operator Ola’s electric mobility arm caught fire in Pune.

https://www.livemint.com/news/india/lng-is-the-future-fuel-of-india-nitin-gadkari-says-11650966546077.html

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Electric Mobility/ Hydrogen/ Bio- Methane

India’s first pure green hydrogen plant was commissioned in Jorhat

Oil India Limited (OIL) has taken the first significant step toward the Green Hydrogen Economy in India with the commissioning of India’s First 99.999% pure Green Hydrogen pilot plant, with an installed capacity of 10 kg per day at its Jorhat Pump Station in Assam on April 20. The plant was commissioned in a record time of 3 months.

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Shri Sushil Chandra Mishra, Chairman & Managing Director, inaugurated the plant in the presence of Shri Harish Madhav, Director (Finance) and Shri Prasanta Borkakoty, Resident Chief Executive of the company. The plant produces Green Hydrogen from the electricity generated by the existing 500kW Solar plant using a 100 kW Anion Exchange Membrane (AEM) Electrolyser array. The use of AEM technology is being used for the first time in India.

Speaking on the occasion, Shri Mishra said that the company has taken an important step towards fulfilling the vision of our Prime Minister for an atmanirbhar India. This plant is expected to increase its production of green hydrogen from 10 kg per day to 30 kg per day in the future. The company has initiated a detailed study in collaboration with IIT Guwahati on blending of Green Hydrogen with Natural Gas and its effect on the existing infrastructure of OIL. The company also plans to study use cases for commercial applications of the blended fuel.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1818482

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No problem in Tesla producing EVs in India but must not import vehicles from China: Gadkari

Union minister Sh. Nitin Gadkari on Tuesday, April 26, said if the US-based Tesla is ready to manufacture its electric vehicles in India then there is ‘no problem’ but the company must not import cars from China. In an interactive session at the Raisina Dialogue, Sh. Gadkari further said India is a large market and there is a huge potential for all electric vehicles.

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“If Elon Musk (Tesla CEO) is ready to manufacture in India then there is no problem … Come to India, start manufacturing, India is a large market they can export from India, but if he wants to manufacture in China and sell in India, then it cannot be a good proposition for India,” Sh. Gadkari said. The road transport and highways minister said his request to Musk is to come and manufacture in India.

At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60-100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000.

https://economictimes.indiatimes.com/industry/renewables/india-says-tesla-should-not-import-cars-from-china-for-domestic-sale/articleshow/91093918.cms

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INTERNATIONAL NEWS

Natural Gas / Transnational Pipelines/ Others

New gas pipeline boosts Europe’s bid to ease Russian supply

Mountainous and remote, the Greek-Bulgaria border once formed the southern corner of the Iron Curtain. Today, it’s where the European Union is redrawing the region’s energy map to ease its heavy reliance on Russian natural gas.

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A new pipeline built during the COVID-19 pandemic, tested and due to start commercial operation in June would ensure that large volumes of gas flow between the two countries in both directions to generate electricity, fuel industry and heat homes.

In the short term, it’s Bulgaria’s backup. The new pipeline connection, called the Gas Interconnector Greece-Bulgaria, will give the country access to ports in neighbouring Greece that are importing liquefied natural gas, or LNG, and also will bring gas from Azerbaijan through a new pipeline system that ends in Italy.

It’s one of many efforts as EU members scramble to edit their energy mixes, with some reverting back to emissions-heavy coal while also planning expanded output from renewables. The European Union wants to reduce its dependence on Russian oil and gas by two-thirds this year and to eliminate it completely over five years through alternative sources, the use of wind and solar power, and conservation.

Russia’s invasion of Ukraine is likely to accelerate changes in the EU’s long-term strategy as the bloc adapts to energy that is more expensive but also more integrated among member nations, said Simone Tagliapietra, an energy expert at the Brussels-based think tank Bruegel.

On the ground, the project faced multiple holdups because of supply chain snags during the COVID-19 pandemic. Receiving specialized parts and moving personnel after construction got underway in early 2020 soon became increasingly difficult, said Antonis Mitzalis, executive director of Greek contractor AVAX, which oversaw the project.

Construction of the pipeline finished in early April, he said, while work and testing at two metering stations and software installation are in the final stages.

https://www.newindianexpress.com/world/2022/apr/29/new-gas-pipeline-boosts-europes-bid-to-ease-russian-supply-2447958.html

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Russia’s oil giant confirms pumping natural gas to Europe via Ukraine as requested

Russian energy giant Gazprom says it is meeting supply requests for natural gas from European importers, pumping over 57 million cubic meters (2 billion cubic feet) through Ukraine on Sunday, April 17.

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Gazprom’s transit contract with Ukraine caps the daily volume of gas at around 109.6 million cubic meters, or 40 billion cubic meters until the end of 2022. Despite Russia’s military operation in Ukraine, the levels of gas transit were quite steady from February 24 until mid-March, when slight drops were registered for a couple of days. Since April 8, gas transit has been lower than expected again, which may be put down to warmer temperatures in Europe.

https://www.devdiscourse.com/article/international/2006330-russias-oil-giant-confirms-pumping-natural-gas-to-europe-via-ukraine-as-requested

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Natural Gas / LNG Utilization

Myanmar(Burma) vows to accelerate energy projects

The Government is seeking to increase use of natural gas for local power generation. The Myanmar Government will accelerate development of hydrocarbon and renewable energy even as it repairs power lines damaged by terrorists

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while seeking to increase foreign investments despite the threat of fresh economic sanctions, the Ministry of Information (MOI) and Ministry of Investment and Foreign Economic Relations (MIFER) announced today.

Addressing Energy Shortages in Myanmar. The recent temporary shortage of power was caused by a surge of global liquefied natural gas (LNG) prices, exacerbated by the Russia-Ukraine conflict, a weaker kyat currency as well as terrorist actions linked to the People’s Defensive Force (PDF). Apart from advocating a boycott of utility payments since 2021, PDF terrorists blew up power lines from the Lawpita hydroelectric plant in Kayah State. These actions contributed to outages which caused hardship to ordinary citizens and small businesses in particular.

However, despite earlier civil unrest, the country has largely achieved national stability since the second half of 2021. Myanmar Government, under the direction of the State Administration Council (SAC) that was formed on 2 February 2021, is focusing efforts on various mitigating actions regarding the country’s energy situation.

https://www.upstreamonline.com/production/myanmar-vows-to-accelerate-energy-projects/2-1-1206018

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China increased both natural gas imports and domestic production in 2021

In 2021, an average 35.5 billion ft3/d of natural gas was consumed in China, more natural gas than in any previous year. More than half of the natural gas consumed in China in 2021 came from domestic production, but China also imported record amounts of natural gas by pipeline and

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as LNG, based on data from Global Trade Tracker and China’s General Administration of Customs.

Government policies promoting coal-to-natural gas switching to reduce air pollution and meet emissions targets have been a major factor in the rapid growth of both domestic natural gas production and natural gas imports in China. In March 2022, China’s government released its 14th Five-Year Plan (2021 – 2025), which sets the domestic natural gas production target at 22.3 billion ft3/d by 2025, or 3.0 billion ft3/d more than domestic production in 2021.

In 2021, 56% of domestic natural gas production in China was natural gas produced from discrete gas reservoirs and associated natural gas from oil production. Production of natural gas from tight gas, shale gas, and coalbed methane collectively accounted for 44% of domestic natural gas production in China during 2021. Various government subsidy programs supported these projects. China’s development of natural gas from sources that use hydraulic fracturing is a key part of the government’s strategy to secure domestic natural gas supply.

Tight gas production in China has grown since 2010, when companies initiated an active drilling program that lowered the drilling cost per vertical well and improved well productivity. In 2021, China produced 4.6 ft3/d from tight gas formations, compared with 1.6 ft3/d of tight gas produced in 2010.

Shale gas development in China has increased steadily in the past few years, growing 21% annually since 2017. In 2021, shale gas production totaled 2.2 ft3/d, which was below the government target of 2.9 ft3/d by 2020.

Coalbed methane development in China faces significant challenges, including relatively low well productivity and relatively high production costs. In 2021, coalbed methane production reached 1.0 ft3/d, or 5% of China’s total natural gas production.

In China, production of synthetic natural gas from coal, which involves gasifying coal into methane at five available plants, totaled 3% of domestic production in 2021.

https://www.hydrocarbonengineering.com/gas-processing/22042022/eia-china-increased-both-natural-gas-imports-and-domestic-production-in-2021/

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Global LNG Development

Germany: World’s second largest bio-LNG plant for vehicles under construction

Wärtsilä will supply equipment for the world’s second largest plant capable of liquefying biomethane and synthetic methane from renewable energy sources to produce carbon-neutral transportation fuel. When operational it will have a capacity of approximately 63,000 tons bio-LNG per year.

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The contract was placed in March 2022 by the German energy company REEFUELERY GmbH a joint venture of Erdgas Südwest GmbH and avanca, a company focused on sustainable energy and logistics solutions.

The facility, expected to become fully operational during the first quarter of 2024, will be located in Burghaun near Fulda, Germany. Burghaun was chosen as the preferred location for this project due to its direct access to the MIDAL, one of the most powerful gas pipelines in Germany. The central location enables optimum supply to the Alternoil filling stations – owned by the avanca group.

The plant will utilize biomethane from communal and agricultural waste materials as feedstock. The biomethane is subsequently liquefied and delivered to the Alternoil filling station network as the climate-neutral fuel REEFUEL (bio-LNG).

https://www.ngvjournal.com/s1-news/c4-stations/germany-worlds-second-largest-bio-lng-plant-for-vehicles-under-construction/

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South Korea: KOGAS Signs Long-term LNG Import Contract with BP

Korea Gas Corp. (KOGAS) has signed a long-term U.S. LNG sale and purchase agreement (LNG SPA) with BP p.l.c, a comprehensive energy company. KOGAS will import 1.58 million tons of Henry Hub-linked LNG per year for up to 18 years from 2025.

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A signing ceremony was held at BP headquarters in London on April 21 (local time), with the attendance of representatives of the two companies including Chae Hee-bong, president of KOGAS and Ms. Carol Howle, executive vice president of trading & shipping at BP.

KOGAS sealed the deal with BP Singapore Pte., a BP subsidiary in Singapore. BP was selected through an international tender organized by KOGAS in 2018 to secure a stable LNG supply. The two sides signed a head of agreement (HoA) in Sept. 2019.

Experts call this contract very advantageous for KOGAS in light of the recent rise in oil and international LNG market prices. They predicted that the contract will make a significant contribution to stabilizing natural gas prices in Korea in the future.

https://www.businesskorea.co.kr/news/articleView.html?idxno=91455

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Gasum puts into operation first LNG station in Southeast Finland

Gasum has opened a new LNG station in Jylpyntie 38, Kotka. This is first service station offering LNG and bio-LNG in Southeast Finland and the second in Kotka providing bio-CNG. The facility is in the proximity of the busy highway 7,

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a prime location at the entrance to the port, and serves both passenger car drivers and logistics and haulage companies’ trucks. The Port of Kotka is Finland’s largest export port, which means the area has an important role in logistics.

Demand for bio-LNG has been growing sharply across Europe. In 2020, there were already more than 15,000 bio-LNG vehicles on the roads and this number is expected to show further strong growth. Gasum promotes the transition to a low-emission society by providing logistics companies and consumers with possibilities to switch from traditional fossil fuels to greener alternatives. Renewable biogas accounts for more than 90% of the road fuel gas sold by Gasum. The EU’s Connecting Europe Facility supported the construction of the LNG station in Kotka.

https://www.ngvjournal.com/s1-news/c4-stations/gasum-puts-into-operation-first-lng-station-in-southeast-finland/

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China signed record high 22.7 mil mt of LNG term contracts in 2021: CNPC ETRI

China signed a record high 22.7 million mt of LNG term contracts in 2021, up 516% year on year, with some contracts starting delivery in 2022, which will boost LNG imports in coming years, state-owned oil and gas company CNPC’s Economics & Technology Research Institute, or ETRI.

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ETRI said China’s natural gas imports in 2022 are forecast to reach a total of 185 Bcm, up 10.1% year on year, supported by incremental volumes through the Russia-China natural gas pipeline’s eastern route and the commissioning of new LNG terminals such as Zhangzhou and Binhai LNG terminals.

China has increased its pipeline gas imports from Russia to 43 million cu m/day or around 15 Bcm/year since December 2021, and the volume is expected to further increase with more pipeline facilities completing constructions, ETRI said, noting that the total length of China’s long-distance natural gas pipeline has reached nearly 84,000 km as of 2021.

China overtook Japan to become the world’s biggest LNG importer in 2021, and its total LNG receiving capacity has reached 91.3 million mt/year by the end of the year, according to ETRI. China’s natural gas production is expected to reach 221.6 Bcm in 2022, up 6.2% on the year, slightly higher than the target of 214 Bcm for 2022 set by the National Energy Administration in its work guidelines released on March 29.

China’s natural gas production was 208.6 Bcm in 2021, including 23 Bcm of shale gas, 10.5 Bcm of coal-bed methane and 4.6 Bcm of coal gas, up 16 Bcm or 8.3% year on year, according to ETRI. Domestically produced natural gas is expected to account for 55% of the country’s total natural gas supply, while imported LNG and pipeline gas are estimated to account for 30% and 15% of the total supply in 2022, respectively.

China’s natural gas demand is also expected to grow by 8.2% in 2022, slowing from 12% in 2021, with the largest growth coming from the power generation and industrial sectors, as the country adds around 10 GW of new installed gas power generation capacity this year, ETRI said. China has relaxed the coal-to-gas switching policy in rural areas, while natural gas demand growth is expected to be dampened by tighter COVID-19 restrictions this year.

https://www.hellenicshippingnews.com/china-signed-record-high-22-7-mil-mt-of-lng-term-contracts-in-2021-cnpc-etri/

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Antigua: INOXCVA scores Caribbean LNG terminal contract

Indian cryogenic equipment company INOXCVA has won a design and engineering contract by Caribbean LNG for a mini-LNG receiving and regasification terminal in Antigua.

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Caribbean LNG is a joint venture between Eagle LNG Partners and Antigua Power Company (APC). The parties formed the JV specifically for the development of the Antigua LNG receiving terminal to deliver low-carbon fuel to the Eastern Caribbean.

The terminal will provide LNG for APC’s on-island 40-megawatt power plant. The terminal is to be a future template and anchor plant to service power and other energy requirements in the Eastern Caribbean Islands.

This project comes soon after the commissioning and operations of a similar multifunctional mini-LNG terminal set up by INOXCVA in Scotland.

https://www.offshore-energy.biz/inoxcva-scores-caribbean-lng-terminal-contract/

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Turkey to extend incentives for $10B Black Sea gas field development

Turkey will be extending government support for the massive project to develop the natural gas field it discovered in the Black Sea, according to a presidential decree Wednesday.

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The state energy company Turkish Petroleum Corporation (TPAO) project will be provided tax cuts, the country’s Official Gazette said. The project’s total fixed investment stands at around TL 145.1 billion ($9.9 billion) and will last for 11 years.

Turkey is building an industrial complex that will process the gas the country discovered in the Sakarya gas field, located some 150 kilometers (93 miles) off the coast of Turkey in the Black Sea. The facility is expected to be operational in the first quarter of 2023. The country’s first drilling vessel, Fatih, has discovered 540 billion cubic meters (bcm) of gas in the Sakarya gas field since August 2020.

Turkey is fully dependent on gas imports, mainly from Russia, but the Sakarya field is expected to reduce those imports by about a quarter once it reaches peak production. Ankara plans to begin pumping gas from the southwest Black Sea field in 2023 but must first build an offshore pipeline network and processing facilities. The first phase of construction of the Western Black Sea Natural Gas Pipeline section will be carried out in two stages.

https://www.dailysabah.com/business/energy/turkey-to-extend-incentives-for-10b-black-sea-gas-field-development

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Malaysia: MoU signed on RM8.8b floating LNG facility

Petroliam Nasional Berhad (Petronas) and Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) signed a Memorandum of Understanding (MoU) to build Sabah’s first and largest near-shore floating liquefied natural gas (LNG) facility known as ZLNG project at Sipitang Oil and Gas Industrial Park. 

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With an estimated investment value of RM8.8 billion, the signing strengthened the existing close collaboration between Petronas and SOGDC towards materialising the project which is currently under the Front-End Engineering and Design (FEED) stage and targeted to complete Final Investment Decision (FID) at end of this year. 

Deputy Chief Minister cum Industrial Development Minister Datuk Dr Joachim Gunsalam witnessed the signing ceremony held at Le Meridien Kota Kinabalu subsequent to the adjournment of the 4th Joint Technical Meeting of the ZLNG project.

LNG Assets, Gas Business Vice-President Abang Yusuf Abang Puteh signed on behalf of Petronas, while the Permanent Secretary of the Industrial Development Ministry cum Director of SOGDC, Thomas Logijin, signed on behalf of SOGDC, witnessed by SOGDC Managing Director cum Chief Executive Officer Abdul Kadir Abdullah.

Petronas and SOGDC will collaborate and cooperate in realisation of the project that includes SOGDC’s support and commitment to assist Petronas in securing all necessary approvals, permits and/or utilities as Sogip developer.

The floating LNG facility will create multiple spin-offs for the State. It will unlock potential future businesses such as tank regional distribution and bunkering and potentially provide return to participating parties and expand LNG Virtual Pipeline System (VPS) in Sabah. LNG VPS, which leverages the LNG plant, will enable Sabah to extend gas use within the State, especially in the East Coast region.

https://www.dailyexpress.com.my/news/191252/signed-memorandum-of-understanding-on-rm8-8b-floating-liquefied-natural-gas-facility/

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Italy’s Eni have signed LNG deal with the Republic of Congo

The deal allows Eni to increase gas production, primarily through the development of an LNG project, in Congo. Italian oil and gas company Eni has agreed to increase gas production and exports from the Republic of Congo by more than 4.5 billion cubic metres (bcm) a year.

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The deal is part of the Italian firm’s plan to reduce dependence on Russian gas in the wake of Moscow’s military action against Ukraine. Eni currently supplies gas to the Congo Power Plant (CEC), which accounts for 70% of the electricity produced in the country.

Earlier this month, Eni signed a deal with the Egyptian Natural Gas Holding Company (EGAS) to increase the gas production and supply to Europe. The framework agreement aims to promote gas export from Egypt to Europe, and specifically to Italy, to help transition to a low-carbon economy. The deal comes as European nations search for alternative gas supplies to cut their dependence on Russian gas, following the invasion of Ukraine.

https://www.offshore-technology.com/news/eni-lng-congo/

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LNG as a Marine Fuel/Shipping

Japan: MOL books two more LNG newbuilds at DSME

Japan’s Mitsui OSK Lines (MOL) has signed up for two newbuild 174,000 cu m liquefied natural gas (LNG) carriers at South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME).

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The dual-fuel ships come with a price tag of around $213m each and are set for delivery in the second and third quarter of 2026. Multiple shipbrokers reported the newbuilds are an option that MOL held at Korean shipbuilder from a last-year order.

Last September, MOL booked four 174,000 cu m vessels at DSME fixed to Novatek Gas & Power Asia, a subsidiary of Russia’s PAO Novatek. The quartet is slated for delivery in 2024. In January, the shipowner was also widely tipped to be behind a single LNG carrier order at DSME for its charter with compatriot trading house Mitsui & Co.

Earlier this month, MOL also announced that it had signed a long-term charter contract for four LNG carrier newbuildings with QatarEnergy. These ships will be built by CSSC-affiliated Hudong-Zhonghua Shipbuilding and are part of Qatar’s first batch of charter deals awarded under its massive shipbuilding program.

https://splash247.com/mol-books-two-more-lng-newbuilds-at-dsme/

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South Korea: HJ Shipbuilding develops dual-fuel LNG containership

The 7,700 TEU boxship design was recently approved by the British classification society Lloyd’s Register (LR), according to the shipbuilder. In November 2021, LR and HJSC signed a memorandum of understanding for the new type of boxship.

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Under the MOU, the shipbuilder was in charge of designing the LNG-fueled containership, while the classification society reviewed and approved the design.

The ship design features a length of 272 meters and boasts a speed of 22 knots. It complies with the latest environmental regulations set by the International Maritime Organization (IMO). HJSC said that it focuses on 7,000 TEU class containerships due to the increasing demand for such vessels since last year.

It added that HJSC’s current focus is on the research and development of eco-friendly ships, responding to demand surges for environmentally friendly vessels.

Two weeks ago, the shipbuilder secured its first order in 2022. On 31 March, it won a contract to build two 5,500 TEU boxships by receiving a $150 million contract from an unnamed European shipowner.

With the latest order, HJSC has six vessels in its orderbook, in addition to two options. A year ago, a consortium led by Dongbu Corp. took over a majority stake in Hanjin Heavy from creditors led by the Korea Development Bank (KDB). Hanjin Heavy was subsequently renamed HJ Shipbuilding & Construction.

https://www.offshore-energy.biz/hj-shipbuilding-develops-dual-fuel-lng-containership-gets-lr-aip/

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Taiwan, China: Yang Ming to order five new LNG-driven vessels

The new vessels will feature dual-fuel LNG marine engines. Taiwanese container shipping company Yang Ming has unveiled plans to order five new liquefied natural gas (LNG) powered containerships. The new twenty-foot equivalent unit (TEU) vessels will feature dual-fuel LNG marine engines.

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According to Yang Ming, LNG fuel, which serves as a “mature” low-carbon alternative, can cut down vessels’ greenhouse gas emissions (GHG) by around 20% compared with conventional fuel’

In January this year, the company’s board approved building of five new LNG-driven containerships. The company is also planning to add new containers to expand its presence in the feeder ship segment. It intends to add ships with a capacity between 1,200TEU and 1,800 TEU.

https://www.ship-technology.com/news/yang-ming-lng-driven-vessels/

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Norway: PGNiG signs charter contract for four LNG carriers

PGNiG Supply & Trading (PST), part of the PGNiG Group, has signed charters for four more LNG carriers. Two will be delivered by companies of the Norwegian Knutsen Group and the other two by affiliates of Maran Gas Maritime, the LNG arm of Angelicoussis Group.

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Similarly, to the LNG carriers previously ordered by PGNiG, each of the new vessels will have tanks with a capacity of approximately 174 000 m3, which means they will be able to carry cargoes equivalent to approximately 100 million m3 of regasified LNG. PST will use them for a period of 10 years on an exclusive basis, with an extension option. As under the previous charter contracts, the shipowner will be responsible for delivering, manning, and keeping the vessels in good technical condition, whereas commercial control will lie with PST. Adding the previously chartered carriers, the PGNiG Group’s new LNG fleet will consist of eight vessels. The first two LNG carriers will start to operate next year.

The making of individual parts of the hull of the Gražyna Gesicka has also begun. The outfitting of individual blocks, which will later be assembled in a dry dock, is underway. As regards the vessel’s components, the main and auxiliary engines have been tested in the manufacturers’ workshops.

PGNiG has also chartered three already-built LNG carriers, each with a capacity of approximately 160 000 m3, equivalent to approximately 80 – 90 million m3 of regasified LNG. Two of these vessels will be delivered to the company by the end of 1H22, while the third one is to be made available in 2H22. This means that PGNiG will be able to purchase LNG under FOB contracts in 2022.

https://www.lngindustry.com/liquid-natural-gas/19042022/pgnig-signs-charter-contract-for-four-lng-carriers/

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China: Hudong-zhonghua takes on LNG carriers from GTT

GTT said on April 21 it will deliver tank designs for four new LNG carriers on behalf of Chinese shipyard Hudong-Zhonghua Shipbuilding. Hudong will use the tank designs to build carriers for two LNG ship owners, though neither client was disclosed.

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GTT will deliver tank designs for four vessels each containing 174,000 m3 of LNG storage capacity. The first vessels are scheduled to be delivered in mid-to-late 2024, and the orders should be completed by early 2025.

https://www.naturalgasworld.com/hudong-zhonghua-takes-on-lng-carriers-from-gtt-97771

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China: CNOOC builds four LNG tanks in Jiangsu

Chinese state-run CNOOC has completed the construction of four LNG storage tanks in Yancheng in Jiangsu province, State Assets Supervision and Administration Commission of the State Council (SASAC), which supervises and administers state-owned assets and investments, said on April 18.

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Each of the four tanks of 220,000 m3 capacity has a height of 59.6 m and a diameter of 89.6 m. The tanks can keep an internal temperature of minus 196 degrees Celsius.

The four storage tanks independently designed and built by the company are a key part of the green power port project in Jiangsu province, SASAC said.

https://www.naturalgasworld.com/cnooc-builds-four-lng-tanks-in-jiangsu-97779

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Argentina to receive 2 rare LNG cargoes from Egypt

Argentina is set to receive tworare shipments of liquified natural gas (LNG) from Egypt. Two tankers, namely the BW Brussels and the Stena Clear Sky, are on their way to the Escobar Port in Argentina after getting the LNG shipments from Egypt at the ports of Damietta and Idku, according to data from Fefinitiv Eikon.

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This marks the first LNG cargoes to be imported from the North African country since 2013.
The South American country has been looking to secure winter gas supply in a new tender to purchase 12 cargoes, with a target price of $30 to $34 per million Birtish thermal units (MBtu), head of the state energy firm IEASA Agustín Gerez in charge of the process told Reuters.

It is worth mentioning that the Executive Vice-President for the European Green Deal, European Commission Frans Timmermans previously said that Europe is seeking more liquified natural gas (LNG) supplies from Egypt through regional partnerships.

https://www.hellenicshippingnews.com/argentina-to-receive-2-rare-lng-cargoes-from-egypt/

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

Greece to upgrade only LNG terminal in preparation for energy supply disruptions

Greece’s only liquefied natural gas (LNG) terminal on the islet of Revithoussa near Athens will be upgraded as the country is preparing its energy system for the worst-case scenario, such as a complete cessation of natural gas supplies from Russia, Greek Prime Minister Kyriakos Mitsotakis said on Tuesday, April 19.

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Managed by the Hellenic Gas Transmission System Operator (DESFA), the Revithoussa terminal is currently the only one in Greece that receives, temporarily stores and regasifies LNG and supplies the country’s National Natural Gas Transmission System. Its LNG storage capacity is currently 225,000 cubic meters and can regasify 1,250 cubic meters per hour, according to the DESFA.

In the coming months, the DESFA is planning to add a floating storage unit to the existing facilities, which will increase storage capacity to 380,000 cubic meters, and the regasification capacity will be increased by 12%, among other investment plans, company officials said.

In 2021, 31.8% of Greece’s total natural gas imports entered the country through this facility. In the first three months of this year, the respective figure was 43.23%. LNG cargoes arrived from six countries (the United States, Algeria, Nigeria, Egypt, Oman and Indonesia), according to DESFA data.

For years, approximately 40% of Greece’s annual energy needs have been covered by imported Russian natural gas, according to the Ministry of Environment and Energy. 

https://english.news.cn/20220420/2db729b188704ba398fd85198d637e5a/c.html

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U.S. biomethane vehicle projects grow 85% in two years

Made from organic waste, renewable natural gas is rapidly gaining ground as an alternative fuel source with the potential to significantly reduce greenhouse gas (GHG) emissions. Public and private interest in this low-carbon fuel has grown dramatically in recent years, said

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Marianne Mintz, principal transportation systems analyst at the U.S. Department of Energy’s Argonne National Laboratory.

Argonne maintains a database that provides a comprehensive list of projects, currently in operation or under construction, which upgrade biogas for pipeline injection or on-site dispensing as vehicle fuel. Along with the nonprofit Energy Vision, Argonne has tracked these projects for the past five years, recording sustained, rapid growth. Data shows that between 2019 and 2021, the number of projects that are operational, under construction or planned for transportation increased from 219 to 402 total projects, which is an 85% increase.

Biomethane aids the environment in two ways. Along with cutting GHG emissions from methane that would otherwise have been emitted, it can be used to fuel trucks that would normally burn fossil fuels. Vehicles are the largest source of the GHG emissions that trap heat in the atmosphere and warm the planet.

Argonne data shows that in 2021, the 230 operational biomethane facilities alone produced over 59 million MMBtus, the equivalent of over 459 million gallons of diesel, which is enough to fuel 50,000 refuse trucks. That growth represents a 30% increase in production capacity since 2020.

Growth in production and use of renewable natural gas is closely tied to federal and state incentives, which are expanding. For example, California awards credits through its Low Carbon Fuel Standard (LCFS), which focuses on reducing the carbon content of fuels used within the state. The Argonne database tracks biomethane projects by feedstock: food waste, landfills, livestock/agriculture and municipal wastewater. Most projects involve landfills, but all feedstock categories are growing. The potential for domestic production is estimated to be 10 to 20 times greater than current production.

Renewable natural gas is just one piece of the overall decarbonization strategy not the entire solution.

Currently, renewable natural gas is primarily used as a substitute for conventional natural gas which itself is a substitute for diesel in heavy-duty vehicles. While electric cars are now a viable, clean-energy solution, heavy-duty trucks will take longer to successfully electrify, making biomethane a good fuel for near-term decarbonization in large vehicles.

https://www.ngvjournal.com/s1-news/c1-markets/u-s-biomethane-vehicle-projects-increase-85-in-two-years-says-argonne/

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Spain: Madrid expands PTV biogas plant, will be able to supply 500 EMT buses

At the Valdemingómez Technology Park (PTV), the Mayor of Madrid José Luis Martínez-Almeida launched the expansion of the facility where biogas from organic matter is transformed into biomethane, “a good example of proper waste management”.

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The reform of this infrastructure began in July 2021 and has now been completed after nine months of works. Until now, the plant injected up to 100 GWh/year of thermal energy. The increase in its capacity will make it possible to inject 80% more of this renewable gas into the gas network, that is, it will increase the energy injected to 180 GWht, which also means the reduction of more than 43,500 equivalent tons of CO2 per year.

The work, carried out and financed by PREZERO (the plant’s operating company), had a total budget of €6.9 million, of which €656,000 were subsidized by the European Union within the framework of the first call for aid to investment in thermal energy production facilities from renewable energy sources that are financed by the European Regional Development Fund (ERDF).

The project contributes to the achievement of the objectives set in the National Integrated Energy and Climate Plan 2021-2030 (PNIEC) on the participation of renewable energies in the final use of energy, which is established at 42% by 2030. Likewise, The Madrid 360 Environmental Sustainability Strategy is based on measures that promote the circular economy to contribute to the fight against climate change.

The PTV biomethane complex consists of two anaerobic digestion plants, Las Dehesas and La Paloma, which produce two materials from the organic matter of the waste: biogas and digestate.

The biogas is purified at the now expanded biogas treatment plant, which transforms it into biomethane and injects it into the gas network, and can be used for the same uses as natural gas (boilers, refueling of buses, trucks, cars, industrial use), but with a renewable or green origin. The digestate is subjected to a composting process to obtain organic amendments or fertilizers for the soil (compost). This treatment is carried out at the La Paloma Plant.

In May, the Madrid City Council will start work on a new plant to expand the organic treatment capacity with a budget of €42 million.

https://www.ngvjournal.com/s1-news/c4-stations/madrid-expands-valdemingomez-biogas-plant-will-be-able-to-supply-500-buses/

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