NGS’ NG/LNG SNAPSHOT – April 2021, VOLUME 1
City Gas Distribution & Auto LPG
Now, vehicles to run on compressed biogas in city
Gas Authority of India Ltd (GAIL) and Ranchi Municipal Corporation (RMC) on Thursday inked an MoU for setting up a plant to produce compressed biogas with the garbage collected from the city. The CBG produced would be used for various purposes
including fuel for running vehicles in the city. The MoU was signed for the construction of a compressed biogas plant for garbage-to-gas production in the premises of Chief Minister Hemant Soren on the Assembly premises. GAIL India Limited will set up an organic waste processing plant of 300 MT / day in two phases in Ranchi. In the first phase, a 150 tonne capacity organic waste processing plant will be built. The plant will produce 5 tonnes of compressed biogas in a day. The age limit of the plant will be more than 20 years. The Ranchi Municipal Corporation will provide the required eight acres of land for the plant on lease rent to GAIL India Limited. The cost of construction of the plant will be around Rs 28.19 crore, which will be borne by GAIL India. Two gas filling plants will also be constructed inside the city and in the outer area of the city. After the implementation of this system, Ranchi Municipal Corporation will be able to save Rs 81 crore in 20 years from the expenditure incurred on the processing of waste. One plot of 3600 square meters for two outlets will be provided by the Municipal Corporation in the city and the other outside the city. During the MoU, apart from Chief Minister Hemant Soren, others present were: Ranchi Mayor Asha Lakra, Deputy Mayor Sanjeev Vijayvargiya, Municipal Development and Housing Department Secretary Vinay Kumar Choubey, Director of State Urban Development Agency Amit Kumar, Municipal Commissioner of Ranchi, Mukesh Kumar, Ashish Chatterjee, Joint Secretary in the Government of India, MV Iyer, Director (BD) GAIL India Ltd, KB Singh, Executive Director (Projects) GAIL and Alok Kumar, General Manager (CGD), GAIL.
After universal LPG penetration, India plans to cover 100% population under city gas network
After achieving nearly 100 percent penetration of liquefied petroleum gas (LPG), India is planning to cover its entire geographical area under the city gas distribution (CGD) coverage, up from 70 percent of the population now.
The Petroleum and Natural Gas Regulatory Board (PNGRB) is likely to come out with the eleventh round of CGD bidding within the next six months, which will cover over 300 districts and may have an estimated investment of Rs 1.2 lakh crore. “Earlier, the plan was to cover 44 geographical areas (GAs) in 120 districts in the eleventh round. However, we are now working on a fresh proposal that will cover the entire country in one go. This would mean 300 plus districts will be covered in a single round of bidding and the CGD network reach will increase to 100 per cent of the population,” said a source close to the development. After the ninth and tenth round of bidding, CGD coverage in the country was extended to 406 districts. The next round is likely to cover another 335 districts. https://www.energyinfrapost.com/after-universal-lpg-penetration-india-plans-to-cover-100-populationunder-city-gas-network/
Two Kolkata city petrol pumps to sell CNG
Car owners in Kolkata will have the option to switch to the cost competitive and greener source of fuel from next week as two petrol pumps of the city plan to start dispensing compressed natural gas (CNG) from their outlets.
A conventional retail outlet of Bharat Petroleum Corporation Ltd (BPCL) at Garia and another of Indian Oil Corporation at Rajarhat have been primed for the task, while plans are underway to add a few more in and around the city and important towns of South Bengal. Separate areas have been earmarked within the two outlets to put up a dispenser and storage tank of CNG. The price of petrol on Friday in Calcutta was Rs 91.35 a litre. Users would also gain in mileage which is said to be higher when run on CNG. Maruti and Hyundai are planning to bring their dual feed models to the city Moreover, existing cars have the option to add CNG kit at a cost of around Rs 42,000. The CNG is being sourced by Bengal Gas Company Ltd (BGCL), a joint venture between GAIL and Greater Calcutta Gas Supply Corp, from the coal bed methane field operated by Essar in Ranigunj. Since BGCL does not have a retail outlet in the city, it would piggyback on the existing oil marketing companies to penetrate the market. This arrangement would hold good till demand picks up, which will happen when consumers feel confident of the availability at their convenience. However, the real change in terms of air quality would be felt when public transport switches from diesel to gas. Even though natural gas is also a fossil fuel, emission of nitrogen oxides and soot are much less from burning of gas. Incidentally, a part of Kolkata’s transport is already using some form of gas as some auto rickshaws are using LPG.
Adani Welspun strikes gas in Mumbai offshore
New Delhi: A joint venture of Adani Group and Welspun Enterprises Ltd has discovered natural gas reserves in an area off the Mumbai coast, the two firms said in a statement Monday. The first-ever gas discovery was made in the NELP-VII block MB-OSN-2005/2,
Adani Welspun Exploration Ltd (AWEL) said. Spread across 714.6 square kilometers, the block is located in the prolific gas-prone Tapti-Daman sector of the Mumbai Offshore basin where production is already underway by other operators. “The pay zones and flow rates encountered have exceeded the company’s initial estimates,” the statement said without giving details. AWEL was awarded the block under the New Exploration Licensing Policy’s (NELP) seventh bid round. “Early indications pointed to the occurrence of gas-bearing reservoirs within the sandstone reservoirs of the Mahuva and Daman formations,” the firm said. The drilling of the current well in March 2021 has confirmed the presence of substantial quantities of gas and condensate in the block. While the first object yielded a flow of 9.7 million standard cubic feet per day (mmscfd) of gas along with 378 barrels a day of condensate, the second object also yielded a similar flow 9.1 mmscfd of gas along with 443 barrels a day of condensate.
ONGC’s share in India’s oil, gas production rises to 70% from 53%
State-owned ONGC, which is often perceived as a drag on the crude oil and natural gas produced in the country, has actually seen its contribution to the national production jump to over 70 per cent from under 53 per cent a decade back, petroleum ministry data showed.
While Oil and Natural Gas Corporation (ONGC) maintained production levels, output by other operators has dropped, leading to an overall fall in India’s output and a sharp rise in import dependency. Its standalone production at 47.51 million tonnes of oil and oil equivalent gas in 2010-11 was 52.8 per cent of a total of 89.91 million tonnes of oil and gas produced in the country that year, the data showed. ONGC is focused on finding oil and gas reserves in Category II and III Basins, which do not have established hydrocarbon proficiency. This helped accrete inplace reserves of 2,246 million tonnes of oil between 2002 and 2015 and ultimate accretion of 1,014 million tonnes, the data presented at the review showed. Of this, ONGC realised 830 million tonnes of oil and oil equivalent gas as production. It has approved 14 schemes for developing 135 million tonnes of reserves. ONGC’s share in national production rose from 52.8 per cent in 2010-11 to 54.9 per cent in the following year and to 58.7 per cent in 2012-13, 62.2 per cent in 2013-14, 62.3 per cent in 2014-15, 62.9 per cent in 2015-16 and 65.3 per cent in 2016-17. In subsequent years it was 67 per cent, 68.4 per cent and 70.3 per cent in 2019-20 — the latest year for which data was presented at the review. During this 10-year period, India’s dependence on imported crude oil to meet its demand rose from about two-third to 85 per cent.
GAIL set to kick off asset monetisation in oil sector by end of 2021-22
InvIT to be floated by the end of next fiscal year. An InvIT is like a mutual fund that allows multiple small and large investors to invest in a project and get proportional returns from the profits the asset makes.
The first oil-sector infrastructure investment trust (InvIT) is expected to be floated by GAIL (India) by the end of 2021-22. According to a top petroleum ministry official, Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation (HPCL),
and GAIL (India) will be going for three separate InvITs as part of the central government’s asset monetisation plan. “GAIL (India) will be the first to float the InvIT. In all, Rs 15,000-20,000 crore is expected to be raked in via this route. The money will be utilised by the companies for capital expenditure,” said the official. This is expected to augur well for the companies since any extra money in their kitty is usually given to the Centre in the form of dividend. HPCL and GAIL (India) will be floating InvITs for their pipelines, while IOCL will be hiving off its hydrogen-producing units and pipelines into an InvIT. Sitharaman further said a national asset monetisation pipeline of potential brownfield infrastructure assets would be launched. An asset monetisation dashboard would also be created for tracking the progress and provide visibility to investors. Assets of the National Highways Authority of India, Power Grid Corporation of India, Airports Authority of India, freight corridors of Indian Railways, warehousing assets of central public sector enterprises, and sports stadia, among others, were also mentioned by Sitharaman for asset monetisation.
BPCL to merge Bharat Gas with itself
The board of privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Monday approved the merger of its gas subsidiary, BGRL with itself in a bid to streamline corporate structure.
BGRL is a 100 per cent subsidiary of BPCL and its main business is gas sourcing and retailing.
The merger will streamline the corporate structure and consolidate the assets and liabilities of BGRL within BPCL. Also, it will help in “availing easier financial support for the business” of BGRL and “more efficient utilisation of capital for enhanced development and growth of the consolidated business in one entity,” BPCL said.
It will also improve management oversight and bring in operational efficiencies, cost savings and reduction of administrative responsibilities.
India’s GSPC seeks LNG cargoes for March to November delivery
SINGAPORE: India’s GSPC is seeking 6 liquefied natural gas (LNG) cargoes for delivery over March to November through two separate tenders, two industry sources said.
It is seeking one cargo for delivery over March 23 to 31 on a delivered ex-ship (DES) basis, in a tender that closed on March 3 and valid until March 4, they said. It is also seeking five cargoes for delivery over April to November, also on a DES basis, in a separate tender that closes on March 4 and valid until March 5, they added.
Natural Gas / Transnational Pipelines/ Others
Qatar tightens global gas market grip with bold expansion moves
Qatar Petroleum, the world’s top liquefied natural gas (LNG) producer, is cranking up the pressure on high-cost rivals with bold expansion plans that will boost supplies over the coming decade and potentially push prices down further.
As competitors struggle to break even due to lower prices, the Qatari firm last month announced it will boost LNG output by about 40 per cent to 110 million tonnes per annum (mtpa) by 2026 in phase one of its expansion of North Field LNG, the largest single LNG project ever sanctioned.
The company is expected to announce second phase expansion plans this year which will lift LNG capacity by 2027 to 126 mtpa, enough to meet the total import needs of both Japan and South Korea – the world’s top and third largest LNG importers respectively.
Italy: Snam’s new partnership will promote LNG and bio-LNG mobility
Snam and SIAD, chemical group in the production and supply of industrial gases, have signed a framework agreement to start a technological collaboration to develop small-scale and mid-scale plants for the liquefaction of natural gas and biomethane,
on behalf of third-party customers. The aim of the agreement is to foster the use of LNG and bio-LNG as alternative fuels for sustainable mobility and other end uses. The facilities proposed by Snam and SIAD will be modular and standardized, with capacities ranging from 50 ktpa (kilo-tons per year) to 100 ktpa in the case of small-scale plants and from 200 ktpa upwards for mid-scale plants. They will use Italian technology, based on an energy-optimized cryogenic nitrogen cycle through the use of two machines (expanders/compressors). The savings compared to a traditional solution can be as much as 30% of the cost of the plant. As part of the collaboration between Snam and SIAD, a project will be launched in Campania in 2021, with a capacity of 50 ktpa (small-scale), which has already obtained European funding. The plants, which will be operated by Snam, will also ensure the security of LNG and bio-LNG supply to other regions of Southern Italy, shortening the chain between supply and end users and serving a rapidly growing market. LNG trucks have registered quite an increase in Italy in the last five years from fewer than 100 to about 3,000 units and there are now around 90 filling stations.
The 3 Nations Vying For Global LNG Dominance
Last year was an unprecedented year for natural gas and liquefied-natural-gas (LNG) markets. Whereas natural gas demand declined by 3%, LNG demand proved to be more resilient and managed to grow 1%. Nevertheless, the LNG market was extremely volatile,
with periods of extreme oversupply alternating with periods of extreme tightness during the year. According to global management consulting firm McKinsey, natural gas is set to become the strongest-growing fossil fuel, with demand expanding 0.9% per annum from 2020 to 2035. While that kind of growth is nothing to write home about, natural gas will be the only fossil fuel expected to grow beyond 2030, peaking in 2037 thanks to the strong clean energy momentum. From 2035 to 2050, demand is expected to decline modestly by 0.4% per annum due to hard-to-replace gas use in the chemical and industrial sectors as natural gas continues to replace coal in power generation. Meanwhile, LNG is set for much stronger growth, with McKinsey predicting that domestic supply in key gas markets will be unable to keep up with demand growth. Global LNG demand is expected to grow 3.4% per annum to 2035, calling for some 100 million metric tons of additional capacity to meet both demand growth and replace decline from existing projects. LNG demand growth will slow markedly from 2035 to 2050 to just 0.5% per annum but still call for more than 200 million metric tons of new capacity by 2050. The U.S. also scored a crucial win after Turkey ditched Russia in favor of the United States as its primary LNG supplier, with experts pointing fingers at the political tussle between Ankara and the Kremlin in Syria and Libya as being to blame for the growing bad blood between Turkey and Russia.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
World’s First Zero-Emission Wind and Hydrogen Power Cargo Ship
A Norwegian partnership is moving forward with the development of what they are calling the world’s first zero-emission cargo ship. After a six-month competition, with more than 31 ship owners bidding on the project, the contract for the construction has been awarded.
The team expected to complete the design this year so that the vessel can enter service by 2024.
The ship concept has the project name “With Orca” – Powered by Nature, as a significant part of the energy required to operate the vessel will be harvested directly from nature through two large rotor sails. The plan calls for the vessel to sail mostly in open waters in the North Sea, where wind conditions are optimal for wind-assisted propulsion.
The wind energy will be in addition to a hydrogen-fueled internal combustion engine. The design concepts, which will be further developed in 2021, call for the hydrogen to be stored aboard the vessel in compressed form.
Egil Ulvan Rederi and Norwegian Ship Design are working jointly to present technical solutions with a focus on energy efficiency and reduced fuel costs. They have also been meeting with DNV to develop the designs for the ship. The current designs for the self-loading bulker call for a length of 289 feet with a deadweight of approximately 5,500 tons.
Saudi Arabia offers Europe ‘green’ hydrogen by pipeline
DUBAI: Saudi Arabia is offering to transport “green” hydrogen by pipeline to Europe in the next stage of the Kingdom’s strategy to combat climate change.
“If Europe would like to buy more hydrogen, Saudi green hydrogen, we would be more than happy, and even, if the economics allow for it, even piping it all the way to somewhere in Europe,” Saudi Energy Minister Prince Abdul Aziz bin Salman said.
He also hinted at major developments to come in solar energy production. “I believe in the next month or so we’ll dazzle the world with how cheaply we can get our solar electricity,” he said.
Prince Abdul Aziz was speaking at a virtual meeting of the International Energy Forum and the European Union hosted in Riyadh, at which he added detail to the Kingdom’s strategy to control harmful greenhouse gas emissions.
Is The World’s Most Controversial Pipeline About To Pivot To Hydrogen?
Keeping the position of key energy supplier to the Old Continent comes at a price. And it looks like it’s a price Russia is ready to pay it. Moscow is silently investing in the production of hydrogen, potentially aiming to make it flow
through its new NordStream 2 pipeline. While the future of the controversial project still fuels debates and uncertainties, Russia decided to adapt to its neighbor’s needs for cleaner energy sources, and in particular for hydrogen, which the European Commission put at the forefront of its recovery agenda.
A dialog between Berlin and Moscow is currently underway to produce green hydrogen on a large scale. That information was revealed during a conference held at the German-Russian Chamber of Commerce on February 16th. But as surprising as it may appear, this narrative is not new. Firstly, mentioned in 2018, the hydrogen option for Nord Stream 2 was then put on the table by Uniper who, in March 2020, envisioned the ability of the pipeline to transport up to 80% hydrogen.
“One of the key arguments against NordStream 2 is that adding natural gas contradicts the decarbonization objectives of Europe. Here, Russia’s counter-argument is that NordStream 2 also has a hydrogen potential, and can fulfill those decarbonization objectives”, according to Luca Franza, a researcher on EU-Russia gas relations.
However, nothing is less certain than the fact that Russia will be Europe’s most competitive supplier. Moscow does not yet possess sufficient hydrogen production capacity to become price-competitive. Thus, it will not be likely to meet European demand, estimated to reach 700TWh in the “business-as-usual” scenario (or 8% of total energy demand) by 2050 according to the EU Hydrogen Roadmap.
Projections are even more difficult to make in a market that does not yet exist and will be created only based on political will. “We tend to live in the future concerning hydrogen: Europe has ambitious projections concerning hydrogen demand, but we act like we are already there”, says Luca Franza.