NGS’ NG/LNG SNAPSHOT – August 1-15, 2021
City Gas Distribution & Auto LPG
Gujarat: Natural gas supply goes ‘virtual’ in tribal areas
AHMEDABAD: Gujarat Gas, a government-owned entity, has begun supplying natural gas to consumers in the tribal areas of Narmada district by setting up a system where liquefied natural gas (LNG) is delivered using cryogenic trucks.
This for the first time in the country where this new system is used in a tribal belt, said a senior official working with Gujarat Gas. The system comprises LNG storage tank and re-gasification facility and is called virtual CGD network as it is not connected to the gas grid.
The total cost of the system, which includes an LNG storage tank and regasification facility and is called virtual CGD network as it is not connected to the gas grid. The total cost of the system, which includes an LNG tank of 24,000kg capacity, is under Rs 10 crore. Vavdi is about 19km away from the world’s tallest Statue of Unity at Kevadia and the system is used to supply natural gas for vehicular consumers as well as piped gas for cooking in villages and towns of the district.
At a time when Covid-19 pandemic has made setting up of physical pipeline infrastructure in the country a challenge, Gujarat government laid an interior pipeline network at Vavdi and connected to 370 households through the system. Plans are in place to connect about 2,000 households in Narmada district using the virtual network over the next few months, according to a government official. While providing reliable and consistent supply of an eco-friendly energy source, the system also saves the cost and time spent to set up pipeline infrastructure.
Gujarat Gas won CGD license for Narmada district in the ninth round of bidding that was held by PNGRB. The company was the sole bidder for the Narmada geographical area (GA).
Gas/ Pipelines/ Company News
ES Ranganathan, Director (Marketing), GAIL receives Communication Leader Award
New Delhi: E S Ranganathan, Director (Marketing), GAIL received the ‘Communication Leader Award’ at the “Governance Now 8th PSU Awards” for driving various innovative communication programmes for GAIL through digital and other mediums for external and internal stakeholders.
The award is a testimony for GAIL’s efforts under his leadership in developing effective communication for creating a positive business environment among the stakeholders and also to keep the morale of the employees high during the tough pandemic times. Shri Ranganathan was also instrumental in driving various business related communications for Natural Gas advocacy and promoting clean energy & clean environment through GAIL’s Hawa Badlo initiative.
GAIL first quarter net profit jumps 500 per cent to Rs 1,530 cr
New Delhi: GAIL India Ltd, the nation’s largest gas marketer and transporter, on Thursday reported a 500 per cent jump in its June quarter net profit on the back of higher sales and margin boost in gas as well as petrochemicals.
Net profit of Rs 1,529.92 crore in April-June was up from Rs 255.51 crore in the same period a year back, the company said in a statement. The profit was, however, lower than the Rs 1,907.67 crore earning in the preceding January-March quarter.
The April-June 2020 quarter was heavily impacted by muted economic activity and restricted mobility due to a nationwide coronavirus lockdown. This impacted gas sales and demand for petrochemicals.
Final phase of Ennore LNG pipeline to be completed by Feb 2022
Chennai: Indian Oil has said it will complete the final phase of Ennore LNG pipeline by February, 2022 which will link Ennore and Ramnad. The 1,444 km long LNG pipeline, which is being laid by the pipelines division of IndianOil Corporation, has completed about 85% of the work.
The LNG Pipeline commencing from this terminal in Ennore would run alongside the existing Chennai, Trichy, Madurai pipeline for liquid fuels and touch all these major cities. From Madurai it would be linked to the Ramnad – Tuticorin section of the pipeline which has already been commissioned and is operational from February this year.
The main Pipeline would be connected through branch lines and spur lines to all the major commercial and industrial clusters in Kanchipuram, Asanur, Puducherry, Sriperumbudur, Cuddalore, Nagapattinam. The pipeline would also have a separate loop line passing through Tiruvallur to Bengaluru. Along its route the LNG line would cover three states and 21 districts.
Firm offers free piped natural gas to housing societies for 3 months
In order to encourage the adoption of domestic piped natural gas, Goa Natural Gas (P) Ltd (GNGPL) has offered three months of free gas supply to housing societies that register for installation of domestic gas pipelines.
Chief executive officer of GNGPL M Z Khan said that the free gas will be supplied from November to January 2022. Khan also said that GNGPL is in the process of expanding the natural gas pipeline network in Goa with the aim to supply piped natural gas (PNG) to many more manufacturing units and homes in North Goa and Ponda by the end of 2021.
LNG Development and Shipping
Gail India issues swap tender for 12 LNG cargoes for 2021-2022
GAIL (India) Ltd has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India in 2021 and 2022. The natural gas firm is seeking 12 cargoes for delivery into India from Nov. 19 until Oct. 10, 2022,
and has offered 12 cargoes for loading from the United States from Nov. 26 until Oct. 10, 2022. The tender closes on Aug. 17.
The Indian importer has 20-year deals to buy 5.8 million tonnes a year of U.S. LNG split between Dominion Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana.
Natural Gas / Transnational Pipelines/ Others
USA: Natural gas production and exports show growth
Natural gas prices broke through the $4 per thousand cubic feet (Mcf) level this week as production levels across the U.S. continued to set records as did exports of liquefied natural gas (LNG). Natural gas prices on the New York Mercantile Exchange languished
around $1.70 Mcf range in 2020 until crossing the $2 barrier in August and crossed into the $3 range in June of this year and up to $4 in mid-July.
Demand and consumption of natural gas continues to grow. The Energy Information Administration reports the nation consumed 11.2 billion cubic feet during the first four months of 2021, which equals the amounts consumed in 2020 and it is on pace to set a record this year as the economy continues to expand. U.S. production so far this year is off 4% from the record set last year. Natural gas production during the first four months of 2021was 10,904 billion cubic feet compared to 11,414 billion cubic feet in 2020.
AUSTRALIA: Oil Search and Santos to Merge into LNG Powerhouse
Australia’s second- and third-biggest oil and gas companies are set to merge to become one of the largest in the region and in the top 20 globally.
Oil Search Ltd. on Monday, August 2, 2021 said it agreed to an improved all-share offer from Santos Ltd. that would give its equity holders 0.6275 new Santos shares for each one held, giving them about 38.5% of the merged group. The combined entity would have a market capitalization of about $16 billion, vying with Woodside Petroleum Ltd. to be Australia’s biggest independent liquefied natural gas producer.
BOLIVIA: more than 1,500 vehicles converted to CNG in just two weeks
Last month the Executing Entity for Conversion to Natural Gas Vehicles (EEC-GNV) reactivated the Program for the Conversion of Vehicles to CNG, which during the last administration was paralyzed. In this short time, more than 2,000 applications were received and
more than 1,500 conversions from gasoline to CNG were made in the national vehicle fleet.
The CNG Conversion Program was launched on July 8 with the announcement of the acquisition of more than 32,000 cylinders of different capacities, which have already been distributed throughout the country for the benefit of the transportation sector. Bolivia currently has 25% of the vehicle fleet converted to natural gas.
Azerbaijan’s largest public transport operator adds 50 Otokar CNG buses
Turkish bus manufacturer Otokar has received an order to supply 50 natural gas vehicles to Azerbaijan to serve in Baku’s public transportation. The order was placed by Xaliq Faiqoglu, a leading public transit operator in Azerbaijan,
and includes 48 12-meter KENT CNG buses and two 18.75-meters KENT articulated CNG buses. Otokar plans to start delivering the order this year and complete it in the first quarter of 2022.
BANGLADESH: Energy-starved Bangladesh discovers new gas field worth over $148 mn
Dhaka: Bangladesh has announced to have discovered a new gas field containing a probable reserve of about 68 billion cubic feet worth over USD 148 million.
The state-run Bangladesh Petroleum Exploration Company (BAPEX) made the discovery in Sylhet region,
some 240 kms northeast of Dhaka, state minister for Power, Energy and Mineral Resources Nasrul Hamid said on Monday, august 10, 2021. BAPEX officials said that they plan to launch a 3D survey soon to assess the real position as they expect to extract up to 13 years at 10 million cubic feet per day from the virgin field.
The field was primarily discovered in June but preferred to make the announcement public after assessing its probable reserve and extraction prospects, the officials said.
CNG Fuels opens first biomethane station in UK North East region
CNG Fuels opened a new natural gas refueling station for heavy trucks in Newark, Nottinghamshire, United Kingdom.
The new station is the first to serve the North East region and is capable of refueling up to 500 vehicles per day, making it one of the biggest stations in the UK, according to the company.
Most of the UK is already within a 300-mile round trip of a CNG Fuels renewable biomethane station, and the new site will put Lincoln and Sheffield within its range and serve local and passing fleets using the A1 north and south. The Newark station is the latest in CNG Fuels’ network of refueling stations covering the UK. The company already operates six stations across the country and plans to open a further 12-14 stations by the end of 2022. The network will support the burgeoning sector as the number of trucks running on bio-CNG increases five-fold within the next five years, says CNG Fuels.
USA: Biogas storage & automation project successfully completed in Colorado
The City of Grand Junction announced the completion of the Bio-CNG Storage and Automation Project. Six years ago, the city embarked on a renewable/clean energy project to capture biogas generated at the Persigo Wastewater Treatment Plant and convert it to renewable CNG.
This biofuel is used to fuel several city’s and Grand Valley Transit’s vehicles.
Recently, city staff and project partners embarked on a project to optimize and capture the remaining 21% of biogas flare. With the support of Mesa County and with co-funding from the Colorado Department of Local Affairs (DOLA), the Bio-CNG Storage and Automation Project will provide significant benefits to the community that align with the City of Grand Junction’s sustainability efforts and the One Grand Junction Comprehensive Plan.
The project will; Minimize flaring of biogas at the Persigo Wastewater Treatment Plant, Improve air quality by reducing 500,000 pounds of carbon dioxide emissions per year – the equivalent of taking 50 cars off the road, Maximize beneficial use of a renewable energy source, Reduce reliance on fossil fuel-derived CNG, Pave the way for increasing the number of Grand Valley Transit buses and city vehicles that can be fueled with renewable natural gas.
Paris public transit operator orders clean energy buses for Île-de-France
The RATP Group (Régie Autonome des Transports Parisiens) announced a second large-scale order from the Bus2025 program, which aims to renew Île-de-France Mobilités’ (organization authority that coordinates transit companies operating in the
Paris-area public transport network and rest of Île-de-France region) bus fleet towards biomethane and electricity. This goal also fits Île-de-France Mobilités’ desire to remove diesel buses from its network and to make the region into a global reference for very low carbon urban mobility.
Natural Gas / LNG Utilization
USA: Renewables overtake coal, but natural gas still dominates as the nation’s power generator
Renewable energy has inched above both coal and nuclear power for the first time, to become the second-highest source of electricity in the United States behind natural gas. Figures released this week by the federal Energy Information Administration show wind,
hydroelectric, solar, biomass and geothermal combined accounted for 834 billion kilowatt-hours, or about 21% of all generation in 2020. Natural gas still leads as the nation’s top source of electricity, generating 1,617 kWh last year, or about 40% of U.S. power generation.
Texas, USA: $30B LNG project in Lake Charles inks deal with Shell
Houston-based Tellurian Inc. signed a deal with Royal Dutch Shell for a subsidiary to purchase some liquefied natural gas exported from Louisiana. Shell NA LNG inked a purchase agreement with Tellurian for 3 million tons each year for 10 years.
The company plans to build Driftwood LNG on a 1,000-acre site to export 27.6 million tons of LNG by 2023. It would receive natural gas from more than 10,000 acres in the Haynesville Shale play in northwest Louisiana and assets in the Permian Basin in Texas. Tellurian itself holds about 9,700 net acres in the Haynesville Shale as of March. The company previously indicated it wants to build a new pipeline to bring the natural gas to Calcasieu Parish.
Tellurian signed a deal with Gunvor Singapore Pte Ltd. for the reseller to buy 3 million tons of LNG each year up to 10 years, which is $12 billion in revenue. Another 3 million tons of LNG each year was sold to Swiss energy commodity trader Vitol for 10 years, also worth $12 billion. Tellurian expects these deals to collectively move the project forward enough to finalize financing.
Summit and Commonwealth LNG sign MoU for LNG in Bangladesh
Summit Oil and Shipping Co. Ltd (SOSCL), the first and largest private sec-tor importer and supplier of fuel oil to Bangladesh, announced today that it has signed a Memorandum of Understanding (MoU) with Commonwealth LNG to collaborate in the supply of LNG to Asia,
including Bangladesh. SOSCL is part of the Summit Group, Bangladesh’s largest infrastructure conglomerate.
The scope of the MoU includes SOSCL potentially contracting for 1 million tpy of LNG offtake, for a term of up to 20 years, from Commonwealth’s 8.4 million tpy facility currently under development in Cameron, Louisiana, US.
US LNG deliveries increased week-over-week
The US Energy Department said on august 5, 2021 that exports of gas in liquefied form increased week-over-week. The US Energy Information Administration (EIA) reported that 21 vessels left LNG export terminals between July 29 and August 4.
Carrying a combined 77bn ft3 of gas as LNG (against 70bn ft3 in 19 vessels the previous week), seven of those vessels left the Sabine Pass terminal and four left from Cameron, both in Louisiana. From Texas, five left Freeport and four departed from Corpus Christi, while one vessel left from the Cove Point terminal off Maryland. Cheniere owns the five-train Sabine Pass terminal, among the most active US LNG export facilities. Imports from Canada decreased 5.5% and exports to Mexico declined 7.5% from last week.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
California, USA: Bloom Energy receives DNV AiP for initial design for SOFC-powered LNG carrier; ABS verification as alternative power source
Bloom Energy has hit two key milestones on its path to decarbonize shipping. In conjunction with Samsung Heavy Industries (SHI), the companies’ initial design for an engineless, fuel-cell-powered liquefied natural gas (LNG) carrier has received Approval in Principle (AiP)
from DNV, a premier international maritime classification society. Bloom Energy also received verification as an alternative power source for vessels as part of the American Bureau of Shipping’s (ABS) New Technology Qualification (NTQ) service.
New technologies and power sources for shipping, such as fuel cells, are recognized as viable carbon-reducing solutions to achieving the IMO’s environmental goals. DNV Approval in Principle. SHI and Bloom Energy first announced plans in 2019 to design and develop fuel cell-powered ships. This fuel-cell-propelled LNG carrier eliminates the need for internal combustion engines by replacing the ship’s propulsion and auxiliary engines with fuel cells running on non-combusted natural gas.
USA: Biogas project in Indiana to produce net zero emission fuel for truck fleets
OPAL Fuels LLC announced an investment in Bio Town Biogas, one of the most environmentally-friendly renewable natural gas production facilities in the United States. The centerpiece of the project will be a large-scale dairy digester that will produce about 1,000 MMBTUs of biofuel per day. Critically,
this fuel will be cheaper than diesel and have one of the lowest carbon intensity scores in the industry. The project will provide the equivalent of 28.5 million gallons of fuel per year with net zero emissions to OPAL Fuels fleet customers – enough fuel to allow roughly 2,400 heavy-duty trucks to achieve carbon neutral emissions in their operations. All told, this project will keep over 43,000 tons of CO2e emissions out of the atmosphere each year, while helping trucking companies save about $5.8 million per year in fuel costs compared to diesel.
The scale of this project empowers the biomethane it produces to achieve an ultra-low carbon intensity score. The project achieves such scale by not only converting biogas to electricity from cattle manure at the project’s host site, but by also trucking in manure from local dairy farms to convert to renewable natural gas. OPAL Fuels then distributes the fuel through its network of over 140 service stations, which together operate as TruStar Energy.