Gas extracted from below ground is used to produce electricity, make fertilizer, turned into CNG to fire automobiles, or piped to household kitchens for cooking purposes.

In the tender, Vedanta asked users to quote a variable ‘P’ that they are willing to pay over and above 14.5 per cent of Brent crude oil price.

At the current Brent price of USD 84 per barrel, the base comes at USD 12.18 (14.5 per cent of USD 84). Users have to quote a ‘P’ over and above this price.
Gas price will be calculated as lower of Platts LNG WIM (the price of liquefied natural gas delivered on India’s west coast) and 14.50 per cent of Brent Price + P, it said.

“Notwithstanding the value calculated (through the formula), the Sales gas price for any month shall not be lower than USD 9.5 per million British thermal unit,” the tender said.

The price being sought by Vedanta is almost 50 per cent premium over the ceiling price of USD 6.5 per mmBtu paid to state-owned producers like ONGC for output from legacy or old fields.

E-bidding is planned for September 8.

Block RJ-ON-90/1 Block, where a subsidiary of Vedanta holds 70 per cent stake, is predominantly an oil production block but it also has some gas resources. State-owned Oil and Natural Gas Corporation (ONGC) holds the remaining 30 per cent interest in the block.

Vedanta in the tender document said it has developed the Raageshwari gas terminal to process and deliver natural gas produced from the RJ block at Barmer. RGT is connected by the Barmer-Pali pipeline (Mehsana-Bhatinda Pipeline) of GSPL India Gasnet Limited.

“In line with the ‘Natural Gas Marketing Reforms’ notification published by the Ministry of Petroleum and Natural Gas (MoPNG) on October 15, 2020, and detailed guidelines issued on December 3, 2020, as ‘Discovery of Market Price for Domestically Produced Natural Gas through e-Bidding’ notification, Vedanta has issued a request for proposal (RFP) and invited offers from interested companies to offtake all or a portion of gas available for sale from the gas field,” the document said.

https://economictimes.indiatimes.com/industry/energy/oil-gas/vedanta-seeks-minimum-9-5-for-rajasthan-gas/articleshow/102946855.cms?from=mdr

show less

“Company is growing steadily and creating infrastructure facilities across the nation. We are targeting to incur a capex ₹30,000 crore in the next 3 years, mainly on pipelines, ongoing petrochemical projects, CGD projects, operational capex, equity contribution in group companies etc,” said Gail CMD Sandeep Kumar Gupta while addressing the shareholders at the annual general meeting (AGM).

Gupta also said that the company has been trying to secure natural gas for the country and the consumers.

“Your company has issued an EoI to explore opportunity of equity acquisition in LNG liquefaction terminal along with 1 MMTPA LNG tie-up from USA,” he said.

The CMD also said that Gail has taken steps to provide tie-in connections with its natural gas pipelines to the upcoming new gas sources and upcoming RLNG terminals to enable more and new gas injections into its pipelines.

Referring to the supply issues amid the Russia-Ukraine war, he noted that the year 2022 witnessed extreme volatility and shift in geopolitical dynamics which affected the world’s energy ecosystem, resulting in a difficult year for the global natural gas market witnessing significant ups and downs.

“Gail did not remain unaffected as we suffered supply disruptions in one of our long-term LNG sourcing contracts, coupled with reduced allocation of domestic gas for processing plants and a record spike in global LNG prices. However, our resilience and expertise helped in effectively managing this crisis,” he said.

The statement gains significance as contracted LNG volumes from a former unit of Russia’s Gazprom was not supplied to GAIL for several months as spot prices were much higher making the Gazprom unit sell its produce in spot market.

The supplies under the contract, however, have resumed this year.

The CMD further said that Gail achieved a gross turnover of ₹1.43 trillion in the last fiscal, an increase of 57% over the previous year.

“Gas transmission and gas marketing are the key drivers of GAIL’s business and during FY 23, we transmitted 107 MMSCMD of natural gas, marketed 95 MMSCMD of natural gas and sold 399 TMT of polymer.”

Noting that the current year seems “more promising”, he said it is estimated that GAIL would achieve over 120 mmscmd of natural gas transmission, over 100 mmscmd of natural gas sales and 800 TMT of polymer sales.

https://www.livemint.com/companies/news/gail-eyes-rs-30-000-cr-capex-in-next-3-years-focus-on-pipeline-petchem-11692784212816.html

show less

The Uttar Pradesh State Bioenergy Policy 2022 outlines incentives for agriculture residue-based bio-CNG and bio-CBG units. These efforts align with the government’s push for agricultural sustainability and involve setting up these units in every district. Indian Oil is set to launch a Rs 1.6 billion plant in Gorakhpur, which will use various materials including crop residues, rice husk, and cow dung to produce compost manure. This initiative not only adds value to crop residues but also generates local employment opportunities.

Educational programs for farmers aim to raise awareness about the negative consequences of stubble burning, while research highlights the nutrient-rich potential of crop residues. Composting residues in the field enhances soil health, reduces fertiliser costs, and combats global warming effects. The Gorakhpur Environmental Action Group highlights the loss of valuable nutrients and carbon due to stubble burning.Dr. BK Singh underscores the economic value of crop residues, emphasising the need to avoid their wasteful burning. Retaining crop residues has multiple benefits, including moderating soil temperature, enhancing water retention, and conserving water resources. The alternative of deep ploughing and composting aids in decomposition and improves soil health, providing a sustainable solution to stubble burning.

https://www.constructionworld.in/energy-infrastructure/oil-and-gas/up-bioenergy-policy-promotes-bio-cng-and-cbg-units-to-curb-pollution/43669

show less

Presiding over a review meeting convened by the Department of Industries and Commerce on Monday, Chief Secretary Sanjeev Kaushal directed officials to inspect the industrial units not using approved fuel and to take strict action against the erring ones.

As many as 632 industrial units in Haryana have adopted gas as their fuel choice and 257 of them are operating within the industrial zone. Additionally, 403 units in the industrial sector are operating with approved alternative fuels.

“State-Level Apex Monitoring Committees shall be constituted to oversee the strategic implementation of CNG/PNG infrastructure projects. This committee will include representatives from the departments of industries and commerce, urban development, and local bodies. Elevating operational efficiency, officers shall launch an online service module designed for Right of Way and Right of Use processes in CNG and PNG pipeline installation within a fixed timeline. This digital innovation aims to infuse convenience into procedural intricacies,” Kaushal said in a press statement.

A draft standard operating procedure is being developed and feedback has been sought from 10 departments to ensure its refinement, the chief secretary said. “Focus of these inputs is directed towards seven specific aspects: forms, document checklist, applicable processing fees for Right of Way (RoW), applicable fee for Right of Use (RoU) – leasehold right, proposed timeline for both approval and Deemed approval, process flow diagram, certificate template for online auto-generation, and the tracking, monitoring, and MIS dashboard,” he added.

Status of work in various cities across Haryana

Faridabad: Pipeline-laying and connection provisions are underway in numerous industrial areas such as Gurukul, DLF Industrial Sectors and NIT Industrial Area, among others.
Gurugram: Actively progressing with connection provision for multiple industrial clusters including Sector 33/34, Behrampur, IMT Manesar, Udyog Vihar, and others. Hisar shows advancement in sectors including Sec 9-11 (IDC), Sec 27-28 and Delhi Road
Rohtak: Pipeline-laying and connection provision for diverse industrial clusters, including IMT Rohtak, Kheri Sadh, IDC and Kutana have been completed.
Yamunanagar: Work is ongoing across industrial areas like Sector 33/34, Behrampur, IMT Manesar and Udyog Vihar.
Sonipat: Pipeline-laying and connection provision have been completed for industrial clusters such as Rai, Kundali, Bhalgarh, Nathupur, Murthal, Piyu Maniary, Saboli and Sonipat city.
Fatehabad and Sirsa: Effectively completed pipeline-laying and connection provision for various industrial clusters.
Ambala: In the process of connection provision for crucial industrial zones including the SAHA Industrial Area and the HSIIDC Industrial Area
Kurukshetra: Connection provision for various sectors and industrial zones in progress.
Kaithal: Connection provision complete.
Karnal: Pipeline-laying and connection provision have been completed for multiple industrial clusters.
Rewari: Work is steadily progressing in industrial clusters in Rewari, Bawal and Dharuhera.

https://indianexpress.com/article/cities/chandigarh/haryana-right-of-use-right-of-way-policy-natural-gas-infrastructure-8902561/

show less

„Final checks, storing up and sea trials will then take place in Singapore ahead of her voyage to Mauritania and Senegal, expected to commence around the end of September/early October,“ Golar LNG said.

Contractual Dispute

Golar LNG also said that a contract interpretation dispute between Golar and BP regarding parts of the pre-commissioning contractual cash flows remains, and arbitration proceedings have been initiated.

“This does not impact the wider execution of the 20-year project that is expected to unlock around $3 billion of Adjusted EBITDA Backlog to Golar, equivalent to Annual Adjusted EBITDA of around $151 million,” Golar LNG said.

Golar and BP in February 2019 signed a 20-year deal for the charter of a floating liquefied natural gas (FLNG) unit, Gimi, and Golar then tasked Keppel with the conversion of the LNG carrier Gimi into an FLNG unit. Golar at the time said that the construction of FLNG Gimi was expected to cost approximately $1.3 billion.

Once delivered, the Gimi FLNG will be used for the development of the Mauritania and Senegal cross-border offshore gas development Tortue/Ahmeyim, one of Africa’s deepest offshore projects at 2,000 meters below the sea’s surface.

The project will produce gas from an ultra-deepwater subsea system and mid-water floating production, storage, and offloading (FPSO) vessel, which will process the gas, removing heavier hydrocarbon components.

Gas will then be transferred to the GIMI FLNG at a nearshore hub located on the Mauritania and Senegal maritime border. The FLNG facility is designed to provide circa 2.5 million metric tons of LNG per annum on average. Total gas resources in the field are estimated to be around 15 trillion cubic feet.

Kosmos Energy discovered the Greater Tortue Ahmeyim field in 2015, and BP signed onto the project through an agreement with Kosmos in 2016.

BP is the project operator. The partners sanctioned the first phase of the project development in December 2018. The vessel had been scheduled for delivery in 2022, but an agreement was reached in October 2020 to delay the delivery due to the coronavirus outbreak.

https://www.marinelink.com/news/flng-unit-bps-tortue-ahmeyim-project-507188

show less

This is Oman LNG’s first deal with a German firm and the contract is for a period of four years.

SEFE boosting LNG volumes

SEFE said in a statement later on Monday that the signing of the four-year deal for 0.58 bcm of LNG per year marks a “remarkable milestone” as SEFE becomes the first German firm to receive Omani LNG in the ever-growing partnership between Oman LNG and international energy firms.

“The partnership with Oman LNG diversifies SEFE’s portfolio and reinforces our efforts to continue to reliably provide Europe with energy,” SEFE’s CEO Egbert Laege, said.

Earlier this year, SEFE signed a 20-year deal to buy 2.25 million tonnes per annum of LNG from US exporter Venture Global LNG.

State-owned SEFE previously booked long-term capacity at Hanseatic Energy Hub’s planned Stade LNG import terminal in Germany.

Starting in 2027, SEFE, previously known as Gazprom Germania, plans to import at least 4 bcm per year of LNG via the terminal.

SEFE booked the capacity for 20 years and with future flexibility to switch to ammonia.

The firm also reportedly booked 3.5 bcm of regasification capacity at the Dunkirk LNG terminal in France.

In addition, commodity trader Trafigura said in December it would supply US LNG to SEFE.

9th supply deal for Oman LNG

This deal with SEFE is the 9th contract Oman LNG signed since December last year and follows the deal with China’s Unipec, a unit of state-owned energy giant Sinopec.

Oman LNG, in which the government of Oman holds 51 percent, also signed term sheets with Turkey’s Botas and its shareholders TotalEnergies, PTT, and Shell.

Also, Oman LNG signed key term sheets in December to supply LNG to Japan’s Jera, Mitsui, and Itochu.

The firm operates three LNG trains in Qalhat with a nameplate capacity of 10.4 mtpa sourcing gas from the central Oman gas field complex.

Due to debottlenecking, the company’s complex now has a production capacity of around 11.4 mtpa.

https://lngprime.com/contracts-and-tenders/oman-lng-seals-supply-deal-with-germanys-sefe/88911/

show less

A part of Golar LNG’s statement read thus: 

“Strong progress with the potential deployment of Golar’s FLNG vessels to various gas fields in Nigeria has been made since signing the MOU with NNPC in April. Under a further head of terms signed with NNPC on August 1, 2023, Golar and NNPC have agreed on an integrated contractual framework for the joint development of specific gas fields toward potential FLNG projects.”  

The Backstory 

In April 2023, Nairametrics reported that NNPC Limited signed an MoU with Golar LNG to build a floating liquefied natural gas plant in Nigeria to increase the country’s domestic gas utilization and enhance gas export.

Before the signing, the NNPC Limited said it is committed to improving Nigeria’s energy security through the enhancement of the country’s natural gas resources. 

At the time, the NNPCL statement on the signing read thus; 

“In furtherance of its efforts to deepen Nigeria’s domestic gas utilization and enhance gas export, Nigerian National Petroleum Company Limited has signed a Memorandum of Understanding (MoU) with a Norwegian company, Golar LNG (GLNG), to build a Floating Liquified Natural Gas (LNG) plant in Nigeria.

“Group CEO, of NNPCL and CEO of Golar LNG, Mr. Karl Fredrik Staubo, signed the agreement on behalf of their respective companies during a brief ceremony held at the NNPC Towers in Abuja. 

“Golar LNG is one of the world’s largest independent owners and operators of marine-based LNG midstream infrastructure active in the liquefaction, transportation, and regasification of natural gas.”

Golar LNG is a reputable company with over 50 years of experience in developing marine LNG infrastructure and has a strong balance sheet position, low leverage, and strong cash flow from operations to expand the FLNG business. 

What you should know:

According to Golar LNG, material-technical and commercial progress has been made on the deal with NNPCL. Note that the memorandum has a 5-year duration.  

In its results statement, Golar LNG said that as of March 31, 2023, its total cash was $1 billion, comprising $889 million of cash and cash equivalents and $113 million of restricted cash. 

https://nairametrics.com/2023/08/15/golar-lng-and-nnpcl-agree-on-joint-gas-development-for-flng-project/

show less

The Pleasants Power Plant near St. Marys is being converted from a coal-fired plant to run on hydrogen. A new project near Point Pleasant wants to produce hydrogen from natural gas and pump the greenhouse gas emissions underground. And politicians still talk about a possible regional hydrogen hub, one of which must be built somewhere in Appalachia.

There is nothing new about hydrogen in and of itself. It’s one of the most comment elements in the universe. Two hydrogen atoms combine with one oxygen atom to create water. On the flipside, hydrogen is highly flammable. Ignition of hydrogen gas is what brought down the infamous Hindenburg airship in 1937.

But hydrogen is back in the news, seen as a possible clean-burning fuel for manufacturing and vehicles. Hydrogen burns clean with no greenhouse gas emissions and only water as its byproduct. But producing hydrogen gas in large-scale quantities is expensive, and the ways of producing hydrogen to scale still involve the use of fossil fuels, such as natural gas.

LIGHT IT UP

President Joe Biden set a goal at the beginning of his term in 2021 of cutting greenhouse emissions in the U.S. in half by the end of the decade. Biden wants to cut U.S. greenhouse gas emissions by between 50% and 52% of 2005 levels by 2030, a carbon-neutral electric grid by 2035, and zero-emissions by 2050.

One way the Biden administration hopes to meet those goals is with hydrogen, with the U.S. Department of Energy leading the way on research. This includes work by the National Energy Technology Laboratory, with one facility in Morgantown.

“Ensuring America is the global leader in the next generation of clean energy technologies requires all of us – government and industry — coming together to confront shared challenges, particularly lack of market certainty for clean hydrogen that too often delays progress,” said U.S. Secretary of Energy Jennifer M. Granholm in a July press release.

The $1.2 trillion Infrastructure investment and Jobs Act — negotiated in 2021 by U.S. Senators Joe Manchin, D-W.Va., and Shelley Moore Capito, R-W.Va., — included $9.5 billion in funding for hydrogen research. One program included $1.5 billion to support hydrogen electrolysis, using electricity to separate the hydrogen gas from water molecules. Another $8 billion was set aside to fund a broad Regional Clean Hydrogen Hubs program.

The West Virginia Hydrogen Hub Working Group — made up of state and federal elected leaders — applied to the Department of Energy last year to land a regional hydrogen hub. Each hub is required to demonstrate the production of clean hydrogen and demonstrate the use of clean hydrogen.

As many as 10 regional hubs could be built, but Manchin and Capito inserted specific language in the law requiring a hub in Appalachia. The DOE is expected to announce the locations for regional hydrogen hubs by the end of the year.

In July, the Biden administration launched the Demand-Side Initiative to invest more than $1 billion towards supporting the regional hydrogen hubs and helping provide market certainty for both producers of hydrogen and potential industrial and commercial end-users.

“… DOE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments – helping industry unlock the full potential of this incredibly versatile energy resource and supporting the long-term success of the H2hubs,” Granholm said.

The DOE set a goal – called the Hydrogen Shot – of being able to produce hydrogen at $1 per one kilogram by the end of 2032. If the Hydrogen Shot objectives can be achieved, the DOE believes greenhouse gas emissions can be reduced by 16% by 2050, create $140 million in revenues, and create more than 700,000 new jobs by 2030.

The $737 billion Inflation Reduction Act passed last summer after negotiations between Democratic leaders and Manchin, also includes several tax credits to incentivize the production and commercial use of hydrogen. This includes the 45V hydrogen tax credit, with provides up to $3 per kilogram of hydrogen produced for projects that begin prior to 2033.

BLINDED BY SCIENCE

The National Energy Technology Laboratory (NETL) is conducting wide-ranging research into hydrogen storage – from fuel cells for vehicles and industry, to large-scale storage. In Morgantown and other facilities, NETL engineers are working on developing new kinds of turbine engines that can use hydrogen for fuel, using microwaves to extract hydrogen and other petrochemical feedstocks, and storing large quantities of hydrogen underground.

“As we work to mitigate the impact of climate change, it’s crucial that we identify how we can best interact to unlock the potential of hydrogen by developing carbon-negative hydrogen technologies and systems,” said NETL researcher Jonathan Lekse in a statement following a July conference in Colorado.

“These and other projects are especially important to establish a hydrogen economy and reap the many benefits it will provide,” said Nathan Weiland, a senior fellow at NETL.

But others doubt the ability of hydrogen to vitalize the regional economy. The Ohio River Valley Institute, a left-of-center public policy advocacy organization, released a report last week, titled “Frackalachia Update: Peak Natural Gas and the Economic Implications for Appalachia.”

In that report, senior researcher Sean O’Leary argued that much like the boom predicted for natural gas in the last decade – such as the building of cracker plants to extract petrochemical feedstocks from natural gas or underground natural gas storage hubs – that promises of hydrogen production are overhyped.

“This report, its predecessors, and struggling downtowns in communities throughout Frackalachia provide overwhelming evidence that the predictions weren’t only wrong, they were the products of deeply flawed and biased analyses … Sadly, the same is likely to be true of the most recent shiny object being dangled in front of the region’s policymakers — the promised creation of an Appalachian hydrogen hub,” O’Leary wrote.

O’Leary said that any hydrogen hub is likely to be smaller than what supporters say it would be, that the potential market for hydrogen will grow but still be far smaller to support the projected jobs the DOE expects to create, that private markets may never be able to support a hub, and that hydrogen manufacturing plants could still be too expensive and capital-intensive to build and still be highly polluting.

“That isn’t to say that the region doesn’t need new industry, including some that might be part of a hydrogen hub,” O’Leary wrote. “It’s to say that policymakers should be realistic about what these industries do and do not offer in the way of economic development as well as the costs they may inflict and the quality of life trade-offs they may require.”

“If policymakers are realistic about these things, they will recognize the need for a more effective and sustainable approach to economic development regardless of whether or not the natural gas industry stagnates or continues to grow, regardless of whether the hydrogen hub is realized, and regardless of whether some small amount of petrochemical development manages to find a foothold,” O’Leary continued.

BENEATH THE SURFACE

One way to extract hydrogen is by using natural gas – a process called blue hydrogen. Houston-based Fidelis New Energy was approved for up to $62.5 million in forgivable loans from the state Economic Development Authority last week for a hydrogen production project and biomass power plant in north Point Pleasant.

The Mountaineer GigaSystem project will produce hydrogen for use in powering data centers and other potential projects by using natural gas. The greenhouse gas emission produced by the hydrogen manufacturing process would be captured, transported by pipeline, and pumped underground in pore spaces underground state-owned wildlife lands nearby.

Legislation passed during the 2023 session earlier this year allows the state Division of Natural Resources to sell, lease, or dispose of property under its control, including leasing state-owned pore spaces beneath state forests, wildlife management areas, and other lands under DNR’s jurisdiction for use in carbon capture and sequestration.

Environmental advocates are not pleased with the Fidelis project, both for its use of natural gas and its plans for pumping carbon emissions underground. Morgan King, a climate campaign coordinator for the West Virginia Rivers Coalition, accused Fidelis and the state of “experimenting” on nearby communities

“We’ve not been able to see projects achieve the 95% capture rate that is established by the Department of Energy as the recommended standard for capturing pollution,” King said. “On top of that, there are life cycle concerns. Even imagining a perfect world where we can produce blue hydrogen in an economic and safe way and we can capture the carbon at 95% or more, there is still concerns of storage.

“When we look at taking our protected state forests and our protected wildlife areas and injecting carbon into those pore spaces, that’s extremely experimental and dangerous,” King continued. “This hasn’t happened here before, and I don’t think West Virginia communities and West Virginia public lands should be the experiment to figure out if it works safely.”

King raised concerns about the potential for earthquake activities in the areas where the greenhouse gas emissions would be stored and the possibility of groundwater contamination. She also raised issues about lack of community engagement, the economic viability of hydrogen, and the continued use of fossil fuels to produce it.

“If we’re continuing to frack and extract gas, there’s going to be environmental and public health impacts for that,” King said. “If we really want to store carbon and protect our communities, we would just leave that gas in the ground.”

Jessica Pierson Moore is director and state geologist for the West Virginia Geological and Economic Survey, a division of the state Department of Commerce. Speaking by phone, Moore said GES has conducted several studies of underground geology in the state. The areas being looked at for underground storage of carbon emissions are thousands of feet below groundwater and in much harder geologic formations, mitigating the risks of earthquake activities.

“We have a long track record of storing gases in the Appalachian Basin, most notably natural gas and methane storage which has been done here safely for probably about 80 years,” Moore said. “We know that we can do that kind of gas storage. We also know we can dispose of waste directly in the basin.”

Moore explained that Ohio has dealt with earthquake activities due to the underground storage of fracking wastewater, but those quakes are caused by the combination of its sedimentary rocks and older crystalline basin rocks.

“When you move into West Virginia, the section of sedimentary rock is thicker,” Moore said. “The section we’re looking at in West Virginia is not in proximity to that crystalline basin interface … it’s that history of development in the basin that has enabled us to understand the deep subsurface. It is really deep.”

The deepness is what will protect the state’s groundwater, Moore said. Projects like Fidelis are required to apply for a class six carbon dioxide injection well permit. Underground saltwater reservoirs in the area being considered sit at around 1,500 feet below the surface. The geologic pore spaces for greenhouse gas storage will have to be deeper than 2,500 feet to be viable.

“The target that we are looking at for this project is several thousand feet even deeper than that,” Moore said. It’s 7,000-feet-to-8,000-feet in the subsurface … for this project, we’re not really looking at the shallowest reservoirs that have been targets of oil and natural has exploration for 150 years.”

Moore said there has been exploration of this deeper reservoir target since the 1940s, but since most natural gas and oil reservoirs are far shallower, it was overlooked for drilling. With the opening up of the Marcellus and Utica shale deposits, state researchers have worked to map out these larger, deeper pore spaces.

Despite complaints from environmental groups about lack of community engagement, Moore said none of the groups that have lodged complaints have reached out to GES. She encouraged anyone with questions to contact her office.

“I can tell you from meeting the folks at Fidelis that they are engaged in the community. They really see something special in West Virginia,” Moore said. “As far as the technical information, my office is here for the people of West Virginia. We’re taxpayer supported. We pride ourselves in meeting you with your questions.”

https://www.newsandsentinel.com/news/business/2023/08/hydrogen-brings-both-opportunities-and-challenges-to-west-virginia/

show less