NGS’ NG/LNG SNAPSHOT August 1-15, 2024
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NATIONAL NEWS
City Gas Distribution & Auto LPG
Adani CNG stations to come up in Shimla, Solan
To increase the distribution and sale of Compressed Natural Gas (CNG) and facilitate its easy availability, Indian Oil-Adani Gas Private Limited (IOAGPL) is planning to set up CNG stations in Shimla and Solan districts. At present, the company is looking for suitable land in these districts.
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For this, the IOAGPL has invited expression of interest from interested applicants for setting up CNG station on “Dealer Owned Dealer Operated” (DODO) basis. As per the company’s requirement, a person having a plot of approximately 1,000-1,200 sq m which is free from hindrance with clear title, having easy accessibility and good business potential may approach the company for consideration for appointment as a dealer.
The entire earmarked plot will be developed exclusively for setting up of CNG retail outlet. Large plots at vantage locations may be housed with allied commercial activities such as: cylinder testing centres, ATMs, convenience stores, automobile related essential services, etc, at the discretion of the company.
The IOAGPL, a Joint Venture of Indian Oil Corporation Ltd (IOCL) and Adani Total Gas Ltd (ATGL), is developing City Gas Distribution (CGD) network in 19 geographical areas comprising 30 districts across 10 states and three Union Territories.
https://www.tribuneindia.com/news/himachal/adani-cng-stations-to-come-up-in-shimla-solan-644965#
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City gas cos pin hopes on CNG 2-wheelers to ride over EV threat
The introduction of CNG-powered bikes and scooters by two-wheeler makers will negate the threat city gas firms had from the electrification trend in the auto sector. These companies, including Indraprastha Gas, Mahanagar Gas, Gujarat Gas, and Torrent Gas, are now gearing up to cater to the new, emerging segment of compressed natural gas (CNG) two-wheeler customers.
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Seeking to make the total cost of owning a motorcycle more affordable, Bajaj Auto launched the Freedom 125-the world’s first CNG motorcycle on July 5. TVS Motor, India’s third largest two-wheeler maker by volume, is also planning to launch its first CNG scooter in February 2025. Boosted by the fast-expanding network, CNG has already made deep inroads in other segments of the automobile market. Six out of every ten three-wheelers sold by Bajaj Auto-which commands 80% of the market, is powered by CNG. One-third of cars sold in the domestic are CNG-powered.
City gas company officials said they plan to install new dispensers at their CNG outlets and expect a handsome volume growth in the future. “We are seeing a promising development in the two-wheeler market…So with this, we expect that this trend is going to have a significant increase in the CNG sales in the future,” said Mohit Bhatia, Director, Commercial, Indraprastha Gas, adding that IGL will be putting up the infrastructure for the two-wheeler segment.
“India’s two-wheeler segment sees an addition of 17-18 million in the country. Of this, 95% is petrol variant. The cost-benefit analysis for CNG versus petrol is 50%. Two-wheeler for petrol is around Rs 2-2.25 per km and for CNG, it is around 0.80-95 paise per km. Also, Delhi has the lowest CNG rate pan India. So, we look forward to CNG two-wheelers as a good opportunity,” Bhatia said.
IGL sells CNG and piped natural gas (PNG) in Delhi, Gautam Budh Nagar, Ghaziabad, and Rewari among other geographical areas. The company generates 75% of its sales volume from CNG sales and operates 882 CNG stations across geographies. This fiscal it plans to commission around 90 CNG stations.
Mumbai-based Mahanagar Gas also expects the segment to add to its volume growth.
“It has opened up a new set of customers for CGD companies, and MGL sees it as another volume growth opportunity considering the large number of two-wheelers in the country. And we are gearing up to cater to this segment,” said Ashu Singhal, MD, Mahanagar Gas, on an investor call last week.
Currently, MGL has around 350 fuel stations and its subsidiary Unison Enviro has around 50. The company plans to add another 80 to 90 stations this fiscal. The company Singhal added is trying to work out how to address this additional business segment. “As of now, we think wherever the space is available, we can allocate one dedicated dispenser for filling up these two-wheelers.”
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India eyes major expansion in CNG infrastructure
India aims to establish 18,336 compressed natural gas (CNG) stations across the country by 2032 as part of its city gas distribution (CGD) network expansion, Suresh Gopi, Minister of State in the Ministry of Petroleum and Natural Gas announced in a written reply to the Rajya Sabha on August 1. As of May 2024, India had about 7,000 CNG stations.
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The establishment of these CNG stations is being managed by companies authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) under their minimum work programme (MWP). Following the 12/12A CGD bidding round, PNGRB has authorised companies to set up CGD networks in 307 geographical regions of India. This initiative aims to cover nearly 100% of the country’s geographical area, spanning approximately 733 districts across 34 states and union territories.
The CGD sector in India includes multiple segments: CNG used as an auto-fuel, and piped natural gas (PNG) used in homes, and commercial and industrial establishments.
The distribution of CNG stations in India is currently uneven, with the majority located in northern and western regions of the country. The western states of Gujarat and Maharashtra have the highest number of CNG refuelling stations, followed by northern states of Uttar Pradesh, Delhi National Capital Territory, and Haryana.
India also has the most cities in the top ten most polluted cities globally. To combat urban air pollution, the Indian government is actively promoting the use of natural gas, especially in high-polluting sectors like transportation.
As such, the government plans to increase the share of natural gas in the overall energy mix to 30% by 2030, up from the current 6-7%. Both intracity and long-distance transportation are expected to significantly drive the demand for natural gas.
Minister Gopi further highlighted several measures the government has undertaken to promote CNG use, including reallocating domestic gas from power and other non-priority sectors to meet the needs of CNG and PNG, prioritising these sectors for domestic gas allocation, and designating them as a priority for the supply of high-pressure, high-temperature gas in situations requiring proportionate gas distribution under the bidding process. High-pressure, high-temperature gas refers to wells operating under extreme conditions.
https://www.intellinews.com/india-eyes-major-expansion-in-cng-infrastructure-336841/
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Natural Gas/ Pipelines/ Company News
IGL Signs Strategic Agreement to enable PNG gas bill payments at CSC Centres
Indraprastha Gas Limited (IGL), the largest CNG distribution company of the country, has signed an agreement with CSC e-Governance Services Ltd. (CSC SPV), aimed at expanding and enhancing its customer service capabilities across all geographical areas (GA’s) of IGL. This partnership is a key element of IGL’s ongoing efforts to reach even the remotest corners of Haryana, Rajasthan, and Uttar Pradesh ensuring that all its customers have access to reliable and convenient payment options for paying their gas bills. The agreement was signed by Mr. Mohit Bhatia, Director (Commercial), IGL in the presence of Mr. Kamal Kishore Chatiwal, Managing Director, IGL, Mr. Sanjay Kumar Rakesh, MD & CEO, CSC, in the presence of senior officials of IGL and CSC.
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While IGL has been focussing on digital payments across various geographies, the customers in semi-urban and rural areas, where IGL is expanding, had been demanding for alternate payment options in physical form. This partnership with CSC e-Governance Services Ltd. is a strategic move to address the needs of such customers, particularly those in areas with limited access to digital payment facilities.
IGL anticipates that around 45,000 customers are likely to opt for payments through this mode every two months. This initiative is not merely about numbers; it represents IGL’s dedication to ensuring that every household, regardless of location, has the ability to manage its gas bills without the challenges posed by inaccessible technology. By enabling payments through CSC’s Village Level Entrepreneurs (VLEs), customers will be able to pay their gas bills conveniently at their nearest authorized CSC centers and receive a hard copy of the receipt immediately. This initiative is expected to greatly simplify the payment process, especially for those residing in rural and semi-urban areas. Furthermore, the integration of IGL’s payment systems with CSC’s network will ensure that payments are received securely and efficiently, with funds being remitted to IGL’s bank account.
Commenting on the agreement, Mr. Kamal Kishore Chatiwal, Managing Director, IGL said, “This strategic partnership with CSC is a testament of IGL’s unwavering commitment to enhance customer experience, as the company continues to expand its reach and improve its service delivery across IGL GA’s. We are dedicated to ensuring that every customer, regardless of their location or access to technology, can manage their gas payments with ease and confidence”.
Mr. Mohit Bhatia, Director (Commercial), IGL believed that “The tie-up with CSC not only facilitate payments, particularly those in regions with limited digital infrastructure, but also strengthen the trust and reliability that our customers have in IGL. Through CSC’s extensive network, customers will now have the convenience of paying their bills at the nearest authorized center and receiving a hard copy of the receipt immediately. This initiative is expected to simplify the payment process for customers, especially those in rural areas, ensuring a more inclusive approach to service delivery.”
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Torrent Gas CNG price cut by Rs 2.50/ kg
After city gas retailers in Mumbai and Delhi reduced CNG prices, Torrent Gas on Saturday announced a Rs 2.50 per kg reduction in compressed natural gas (CNG) prices across all its locations. “This makes CNG cheaper by up to 45 per cent vis a vis petrol and up to 37 per cent vis a vis diesel,” the company, which has a city gas license to sell CNG to automobiles and piped cooking gas to households in 34 districts, said in a statement
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Reduction in Mumbai’s CNG Prices
Mahanagar Gas Ltd, the city gas operator in Mumbai and its adjoining areas, on March 6, announced a Rs 2.5 per kg reduction in CNG price. Accordingly, the revised CNG price will be Rs 73.50 per kg.
“MGL’s CNG price now offers attractive savings of 53 per cent compared to petrol and 22 per cent compared to diesel at current price levels in Mumbai while delivering unmatched convenience, safety, reliability and environmental friendliness to consumers,” the firm had said in a statement on March 5.
Similar Reduction in Delhi’s CNG Prices
A day later, Indraprastha Gas Ltd announced a similar price reduction in Delhi and the adjoining cities. “The retail consumer price of CNG is being reduced by Rs 2.50 per kg across all geographical areas of IGL from 6 am on Thursday, 7th March 2024. The revised selling price of CNG in Delhi shall be Rs 74.09 per kg, while it shall be Rs 78.70 per kg in Noida, Greater Noida and Ghaziabad.”
Impact of Reductions
The reductions follow a softening in input gas prices.
Torrent Gas said it has 428 CNG stations and more than 1 lakh piped cooking gas customers across its areas of operation.
“This reduction in CNG price, besides leading to greater savings for CNG vehicle owners, is also expected to give an impetus to the sale of new CNG vehicles across various segments, including passenger and commercial,” it said.
CNG, which is already known as clean and green fuel, owing to its environment-friendly nature will become even more attractive for vehicle owners with this downward price revision. It will offer increased savings, along with better mileage and lower maintenance to all CNG vehicle users, it said.
Speaking about the reduction in gas prices, Torrent Gas managing director Manoj Jain said, “Torrent Gas has always been at the forefront in promoting the use of environment-friendly CNG. This reduction in CNG prices is expected to increase the offtake of new CNG vehicles and increase the consumption of natural gas in the transport segment”.
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“Torrent Gas has invested deeply into building CGD network infrastructure in its geographical areas and is continuously working towards creating awareness about CNG and piped gas and helping consumers adopt economical and environment-friendly natural gas as fuel.”
Torrent Gas hold city gas licenses for 34 districts across 7 states (Tamil Nadu, Telangana, Uttar Pradesh, Gujarat, Maharashtra, Rajasthan and Punjab) and one Union Territory (Puducherry). Torrent’s authorised areas, across the country have a population of approximately 9 crore, about 7 per cent of the total population of India.
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CIL, GAIL sign JV for setting up Coal to SNG Plant
Debasish Nanda, Director (Business Development) CIL and Shri. R K Singhal, Director (Business Development) GAIL inked the JVA on behalf of CIL and GAIL respectively. he Ministry of Coal in collaboration with the Ministry of Power & Natural Gas facilitated a landmark joint venture agreement between two leading Maharatna CPSEs, Coal India Limited (CIL) and GAIL (India) Limited (GAIL).
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It marks a major step towards setting of a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology.
Debasish Nanda, Director (Business Development) CIL and Shri. R K Singhal, Director (Business Development) GAIL inked the JVA on behalf of CIL and GAIL respectively.
The plant to come up in Raniganjarea of Eastern Coalfields Limited, West Bengalis planned to produce 80000 Nm3 per hour of Synthetic Natural Gas (SNG), the Ministry of Coal said in a statement.
The annual production is slated at 633.6 Million Nm3 per hour which will require 1.9 million tonnes (mts) of coal. The coal will be supplied by CIL.
The synergy and partnership of the two corporate giants is a big step towards National Coal Gasification Mission which facilitates utilization of chemical properties of coal.
Synthetic Natural Gas (SNG) is a fuel gas predominantly consisting of methane, CH4 which is a feedstock for production of various chemicals and fertlizers.
The upcoming plant would help in securing the raw material and reduce import dependency of Natural gas and promoting Atmanirbharmission.
- Nagaraju, Additional Secretary, Coal, while addressing in the signing ceremony mentioned that the commitment of CIL and GAIL with this project will be a role model.
Gasification is the highest priority area for the Ministry of Coal. India has been blessed with huge reserves of coal and these reserves should be utilized gainful and in environment friendly manner.”
The Additional Secretary stressed the need of more coal gasification project to be planned to minimize the carbon emission.
He also said that all the possible support from government is in place including financial support for viable gap funding. Request for Proposals (RFPs) for inviting eligible bidders (public and private) for financial incentives of Rs. 8500 crores under three categories for Coal/lignite gasification project have been floated on 15.05.2024 for which last date of submission is 11.11.2024.
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Lower APM gas allocation could raise procurement cost: Mahanagar Gas MD
MGL is also looking for opportunities to diversify its business in the electric vehicle segment and retail LNG.
Mahanagar Gas (MGL) expects its earnings before interest, taxes, depreciation, and amortisation (Ebitda) per standard cubic metre (scm) to decline marginally to Rs 10-12 in the current fiscal from Rs 13.5 in FY24 due to higher cost of gas, managing director Ashu Shinghal told Arunima Bharadwaj in an interview. However, the company’s PNG and CNG volumes are estimated to grow at robust rates of 6% and 7%, respectively, on year. MGL is also looking for opportunities to diversify its business in the electric vehicle segment and retail LNG. Excerpts:
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What kind of profitability do you expect in FY25?
Last year, we had a Rs 13.5 Ebidta per scm. This year, we expect it to be in the range of Rs 10-Rs 12.
How do you see the growth in volumes in the CNG and PNG segments?
In the main segment of PNG, we are adding around 3,3000 connections every year. So, that is a steady segment, and may be 5-6% growth will be achieved. In the CNG segment, we are adding around 60 stations in Mahanagar gas and around 30 stations in our subsidiary Unison Enviro. So, more OEM (original equipment manufacturers) models and infrastructure are being built. We have also launched certain schemes, so CNG volumes can be slightly better than PNG, with around 7% or 7.5% growth.
Please elaborate on the company’s diversification strategy…
We have signed an MoU with Brihanmumbai Municipal Corporation for a compressed biogas plant and it will take another one-and-a-half years to get commissioned. We are in the process of finalising the land acquisition through the lease process. We have taken some equity in electric vehicles (EVs) manufacturer 3EV, and want to see how the sector behaves. We have opened a joint venture company with Baidyanath LNG for setting up retail LNG outlets for filling of energy heavy truck vehicles. We expect that it will put up around five stations this year, and going forward, we will take a call (on further investments) on the basis of potential in terms of customer base and profitability.
What are the other JV initiatives?
We have a joint venture with majority 74% equity for a compressed biogas unit (Unison Enviro). We want to get more comfortable with the execution of the project. We will first see that the projects which we have in hand are executed, and then we may also explore other projects.
What is the company’s capex target for FY25? How do you plan to fund it?
We are targeting Rs 800-crore investments for MGL and some Rs 200 crore in Unison Enviro. Mostly, the investments are in the PNG and CNG segments as well as pipeline and operation and maintenance. Last year, we had incurred a capex of around Rs 870 crore (Rs 760 crore for MGL and Rs 100 crore for UEPL).
The capex pace will continue for a few years. And funding of the capex will be through internal generation only. We have counted our balance sheet to fund through internal generation as of now.
MGL recently hiked gas prices citing higher cost of imported gas. How do you see this impacting the bottomline?
The administered pricing mechanism (APM) allocation has come down, therefore we were constrained to increase our prices. The LNG prices have also gone up. And we have raised our CNG prices by Rs 1.5, which is still the cheapest in the country. So, despite selling the cheapest CNG, our margins are in a comfortable range. That gives us some legroom to see how the market behaves, the volumes grow, and evaluate the pace of vehicles getting converted.
If APM goes further down, our procurement cost will increase. But it also has to be seen how the HPHT (high pressure high temperature) gas is priced or how the LNG is getting priced. We will make an overall portfolio of procurement of gas, and then see how much of the price rise we can absorb, or pass on. If LNG prices go down, there can be a reduction of CNG prices too. That said, this is the first price rise in the last one-and-a-half year or so. We will wait and watch how LNG prices unfold and take a call.
What is your current mix of gas procurement?
We have a mix of Henry Hub, LNG, HPHT gasses in our portfolio to see that the vagaries of the market do not impact our portfolio to a great extent. And we have consciously taken a call to keep a minimum dependence on spot gas, because spot gas keeps on fluctuating a great deal whereas Henry Hub is better in terms of stability. If we talk about the PNG and CNG segments, around 65% of gas is coming from APM, other is being met through HPHT and other places. So, APM, followed by 15-20% HPHT and 15-20%, is met through LNG imports.
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IOCL Q1 net profit plunges 81% to ₹2,643 crore
Indian Oil Corporation Ltd. (IOCL) reported first quarter standalone net profit sharply plunged 81% to ₹2,643 crore as compared with ₹13,750 crore in the year ago period. The company for the period ended June 30, 2024 reported 2.33% decline in revenue at ₹2,15,989 crore as compared with ₹2,21,145 crore in the same period last year.
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The average Gross Refining Margin (GRM) for the period April – June 2024 was $6.39 per bbl as compared with $8.34 per bbl of the same period last year.
“The core GRM or the current price GRM for the period April – June 2024 after offsetting inventory loss/ gain comes to $2.84 per bbl,” the company said.
IOCL’s board on Tuesday approval for construction of Greenfield Terminal at Bihta, Patna, at an estimated cost of ₹1,698.67 crore.
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Deye India Hits the Milestone of 2GW Shipment
World-leading inverter solutions supplier Deye announces that the company has hit 2GW cumulative shipment to India by June 2024, marking a remarkable milestone. Deye India began its journey in mid-2018 and has been actively at the center of India’s renewable energy transformation.
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With the consistent promotion of policies and incentives by the Indian government, coupled with a rapidly growing economic environment, local renewable energy is thriving. Deye deeply rooted in the Indian market, with the support of branding/distributor/channel partners, EPC & installation partners, and marketing partners, achieved this 2GW milestone.
Deye provides a wide range of 1-136kW PV solutions and 3-50kW energy storage solutions, widely applied in 1-phase/3-phase residential, C&I scenarios. Additionally, Deye is continuously investing in the new product R&D each year. In 2024, Deye has completely upgraded its string inverter and hybrid inverter product lines, unveiled its C&I energy storage solutions of 80kW 3-phase HV solution and 60/120kWh All-in-One ESS. These powerful innovations are set to enter the Indian market in the near future.
“Deye’s Affordability, Reliability and Sustainability are the key strength for the success. Quality R&D production, Sales, and Service were supportive in this achievement. Service is the critical point in PV industry, Deye planned for multiple service centers and it was a game changer for the success. With demand increase and while capturing big market share in India, very soon Deye expecting to reach another milestone in India in this year itself,” commented Bharat Singh TN, Sales Marketing & Operations Director of Deye India.
Deye is unwavering in its dedication to advancing global green energy. Moving forward, Deye aims to further strengthen strategic partnerships and drive growth and innovation in the renewable energy industry.
About Deye Inverter
Deye, established in 2007, is a wholly-owned subsidiary of the publicly traded Deye Group (stock code: 605117.SH). Deye is dedicated to delivering reliable inverter solutions for residential and commercial photovoltaic power stations and energy storage systems, encompassing 1kW-136kW string grid-tied inverters, 3kW-50kW hybrid inverters, and 300W-2.2kW microinverters. As a product-centric organization, Deye consistently strives to meet market demands, continuously iterating and enhancing existing products, while expediting the development of new offerings. Deye is committed to crafting advanced and efficient solutions for photovoltaic and energy storage systems, contributing to the achievement of global energy transformation objectives, and providing reliable, affordable, and sustainable clean energy to users across various countries and regions.
https://solarquarter.com/2024/08/09/deye-india-hits-the-milestone-of-2gw-shipment/
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Policy Matters/ Gas Pricing/ Others
PNGRB intensifying efforts to expand gas access in India
The Petroleum and Natural Gas Regulatory Board (PNGRB) is intensifying efforts to expand gas access across India, working closely with state governments to overcome regulatory hurdles in the City Gas Distribution (CGD) sector. This push comes as the country witnesses a significant expansion in gas infrastructure and consumption, with the number of Geographical Areas covered by CGD networks surging from 34 before PNGRB’s establishment to 307 currently. Gajendra Singh, Member, PNGRB, speaking at FICCI’s City Gas Distribution Summit 2024, emphasised the regulator’s primary objective:
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“Our goal is to provide access to gas for all consumers, whether for PNG (Piped Natural Gas), industrial and commercial use, or CNG (Compressed Natural Gas).” Also Read – ‘Ten foreign airlines get GST demands of `10k cr’ The CGD sector has seen remarkable growth, with gas consumption rising from 86 million metric standard cubic metres per day (MMSCMD) in 2007 to 189 MMSCMD currently. This growth is reflected in the expansion of the national gas pipeline network, which has extended from 14,000 km in 2018 to 24,000 km today. Particularly noteworthy is the surge in industrial and commercial gas consumers primarily using Regasified Liquefied Natural Gas (RLNG). The CNG infrastructure has also expanded dramatically, with stations increasing from 280 in 2006 to 7,000 in 2024. However, challenges persist, especially in the adoption of PNG for domestic use. Despite reaching 1.31 crore connections, PNG faces stiff competition from improved LPG services. “Replacing LPG with PNG is a bit of a difficult job,” Singh admitted, citing consumer hesitancy and the costs associated with connection setup. To achieve this, PNGRB is actively engaging with state authorities to address tax disparities and infrastructure challenges. “We are meeting with state government officials to discuss how we can reduce taxes,” Singh said. Also Read – ‘India stands out on growth, external fronts in South Asia’ On the supply front, Singh assured that there are no major constraints, with both domestic gas and RLNG readily available. The current mix stands at 52 per cent domestic gas and 48 per cent RLNG. The regulator remains flexible in its approach, willing to adapt regulations based on market needs and stakeholder feedback. On occasion, Deepak Mahurkar, Partner- Fuels & Resources, PwC India, emphasised that customer economics drive gas adoption, with cost being the primary factor. He added that the government’s ambition is not only to increase gas consumption but also to reduce the supply chain carbon costs significantly. During the event, the FICCI-PwC Knowledge Paper “Charting the Path Forward in CGD: Emerging Trends and Insights” was unveiled. The report offers a thorough analysis of sector-specific challenges and opportunities in the adoption of natural gas and the government’s efforts to foster usage.
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Bill in Parliament to Bring Policy Stability in Oil & Gas
Oil and gas producers will get policy stability, a scope for international arbitration in case of dispute, and the possibility of a longer lease, according to a Bill introduced in Parliament.
The Oilfields (Regulation and Development) Amendment Bill, 2024, which was introduced in Rajya Sabha on Monday, aims to boost investor sentiment by addressing many long-held concerns.
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“The terms and conditions of a petroleum lease shall remain stable during the period of the lease… and shall not be altered to the disadvantage of the lessee during the period of the lease,” the Bill has proposed.
Indian and foreign explorers have been demanding stability in policy so that their economic returns are not affected by government actions such as windfall tax. The change in the law will permit the government to formulate rules, which will allow the making of contracts that can shield explorers.
The Bill also allows for a dispute resolution mechanism “in a place within India or outside”, which may permit the companies to go for arbitration outside India. This was another key demand by foreign explorers. The amendment is necessary to attract investments in the sector “by creating an investor-friendly environment that promotes ease of doing business…and promotes adequate opportunities for risk mitigation”, according to the Bill, which also provides for the government to decide the “terms on which petroleum leases may be merged or combined”.
The oil ministry will form rules that may combine the petroleum exploration licence and petroleum mining lease, resulting in longer lease periods and certainty for explorers, an official said.
The proposed law provides for “the unitisation of leases”, or joint development of fields, where the reservoir is connected. It also provides for “sharing of production and processing facilities and other infrastructure… by two or more lessees for more efficient development of oilfields”.
These proposed changes could help make future oilfield contracts globally competitive, said an industry executive, who didn’t want to be named.
The Bill has proposed to replace “mining leases” with “petroleum leases”. This, an official said, would help companies get faster green and other regulatory clearances. The impact on forests is much less in the case of petroleum exploration than in mining for other minerals, and the change in nomenclature will help state authorities see that distinction.
The Bill seeks to decriminalise the breach of petroleum law and introduces financial penalties instead.
file:///C:/Users/user/Downloads/Bill%20in%20Parliament%20to%20Bring%20Policy%20Stability%20in%20Oil%20&%20Gas.jpg
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In a first: CNG passenger vehicles ride past diesel in sales race
For the first time, sales of compressed natural gas (CNG) passenger vehicles in India have surpassed diesel vehicles during the first quarter of the current financial year. According to market leader Maruti Suzuki, one in every three cars it sells domestically is a CNG vehicle. It said 189,699, or 18.49 per cent, of the overall 1.03 million passenger vehicles sold in the first quarter of 2024-25 were CNG vehicles, while 188,868, or 18.41 per cent, were diesel. In June 2023, the share of CNG in the market stood at 13.63 per cent and that of diesel was 18.34 per cent.
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This quarter, several new regions, including Rajasthan, Karnataka, Tamil Nadu, Madhya Pradesh, Kerala, and Bihar, are showing healthy growth in CNG adoption. Customer acceptance of CNG vehicles is on the rise,” said Rahul Bharti, chief investor relations officer of Maruti Suzuki.
Tata Motors leads in CNG innovation with twin-cylinder technology. It also plans a turbo petrol-CNG engine. The Altroz hatch, launched last year, features a twin-cylinder CNG engine.
At the time of the launch, Shailesh Chandra, managing director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, had highlighted the growing demand of CNG as alternative fuel options. “However, opting for CNG meant compromising on aspirational features and giving up boot space significantly. In January 2022, we addressed the first compromise by launching the advanced iCNG technology in Tiago and Tigor, offering superior performance and top-end features,” Chandra had said.
For Tata Motors, CNG penetration has increased to 22 per cent in Q1FY25 from 16 per cent in FY24. In comparison, EV penetration stands at 12 per cent. “We’re quite happy with the way the CNG portfolio is performing. It’s also good from a profitability perspective as well,” P B Balaji, group CFO at Tata Motors, said in a post-results media call.
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IEX Trade Volume Rises 56%
Indian Energy Exchange (IEX) on Monday said it has achieved the highest-ever total trade volume of 13,250 million units (mu) in July 2024, registering an increase of 56% year-on-year.. The total trade volume includes renewable energy certificates and energy-saving certificates, as per an Indian Energy Exchange (IEX) statement.
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Electricity volumes reached 10,093 mu, marking an increase of 29% year-on-year. Renewable energy certificates (REC) saw a surge, with volumes hitting 3,150 mu , a rise of 405%year-on-year, the company said.
Green electricity volume grew 259% at 1 bu (billion units) during the month under review. At ₹120 per certificate, the REC market recorded an all-time low price in the trading session held on July 31, 2024. The day-ahead market volume increased to 5,056 mu in July 2024 from 3,976 mu in July 2023, registering an increase of 27% year-on-year.
The real-time electricity market volume increased to 3,334 mu in July 2024 from 2,540 mu in July 2023, registering an increase of 31% yoy. Day Ahead Contingency and Term-Ahead Market, comprising contingency, daily & weekly and monthly contracts up to 3 months, traded 712 MU. — PTI
https://epaper.indiatimes.com/timesepaper/publication-the-economic-times,city-delhi.cms
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Government moves to ready ground for 5% ethanol mix in diesel
NEW DELHI: Govt is looking at a new plan of 5% blending of ethanol in diesel (ED-5) as it moves closer to achieving the target of 20% blending in petrol in the next two years..The PMO last week held a meeting on the new proposal with all ministries concerned, sources said.
In June, ethanol blending with petrol touched 15.9%. Sources said govt wants to get the ground ready for ethanol blending in diesel. “Though ethanol blending in diesel will mean that we have to produce more of this green fuel, it will be good for the environment and cut our crude oil imports and save foreign exchange,” said an official.
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TOI has learned that Automotive Research Association of India (ARAI) had done a trial run in 2018-19. The trial was done on BS-III and BS-VI buses to assess vehicular performance, emission and durability. The test was conducted for 500 hours and no major failure was recorded. Sources said the pilot project found fuel consumption was slightly lower than normal diesel.
However, the trial of ethanol-blended diesel has so far not been done on BS-VI vehicles. One of the oil PSUs is likely to undertake a trial of the fuel on a heavy-duty vehicle for assessment.
Recently, while replying to a question in RS, petroleum minister Hardeep Singh Puri said blending of ethanol with diesel was at an experimental stage and initial tests showed the formation of deposits in fuel tanks and other implications.
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LNG Use / LNG Development and Shipping
Spacenet & Russian firm form JV for LNG project
Hyderabad: Spacenet Enterprises India Ltd, a listed Hyderabad-based player, has entered into a joint venture with Russian player Modern Fuel Technologies to set up retail liquefied natural gas (LNG) infrastructure across the country at an investment of 1,600 crore.
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Spacenet will hold a 15-25% stake in the JV. As part of the first phase, the JV will set up 20 LNG gas stations and fuel retail outlets, while in the second phase it will expand to 180 LNG gas stations and fuel retail outlets nationwide. The project will be financed by a major Russian bank, it said.
The collaboration will drive the growth of clean energy infrastructure and support India’s transition to a more sustainable energy future, the company said.
The JV will focus on promoting retrofitting of heavy commercial vehicles to boost energy efficiency and cut carbon emissions.
Spacenet Enterprises executive director Prakash Dasigi said the partnership will be a significant step towards enhancing India’s LNG infrastructure and promoting cleaner energy solutions.
We also published the following articles recently
Spacenet Enterprises in JV with Russian co to set up LNG infrastructureHyderabad-based Spacenet Enterprises India Ltd entered a joint venture with Russia’s Modern Fuel Technologies to establish retail LNG infrastructure in India, investing Rs 1,600 crore. Initially setting up 20 LNG fuel stations, they plan to expand to 180 nationwide.112203762
Spacenet Enterprises in JV with Russian co to set up LNG infrastructureHyderabad’s Spacenet Enterprises India Ltd entered a joint venture with Russia’s Modern Fuel Technologies to develop LNG infrastructure across India with an investment of Rs 1,600 crore. Spacenet will hold 15-25% stake, aiming to establish 20 gas stations initially, expanding to 180. The project will be financed by a major Russian bank, promoting cleaner energy solutions in India.112203746
Sudeeps energy on sets is extraordinary: Samyukta HornadKannada actor Samyukta Hornad, known for her role in Toby, expressed excitement about her upcoming project Max, where she stars alongside Kiccha Sudeep. Samyukta praised Sudeep’s involvement in filmmaking and shared her enthusiasm for the high-octane action scenes in the film, promising it would be a treat for his fans with stunts performed by Sudeep himself.112136282
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HPCL Seeks LNG Deals, Terminal Launch
Hindustan Petroleum Corporation Limited (HPCL) is actively seeking liquefied natural gas (LNG) deals as part of its strategy to enhance its energy portfolio. The company is also working towards launching its LNG terminal by December 2024, marking a significant milestone in its expansion into the LNG sector.
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The upcoming LNG terminal is expected to bolster HPCL’s ability to import and process LNG, aligning with its goal to secure reliable and cost-effective energy sources. This initiative is part of HPCL’s broader strategy to diversify its energy offerings and meet the growing demand for cleaner fuels in the Indian market.
HPCL’s focus on LNG is driven by the increasing importance of natural gas as a transition fuel in the move towards cleaner energy. The terminal’s launch will enable the company to better serve the domestic market, support energy security, and contribute to India’s goals of reducing carbon emissions.
The company?
s efforts in securing LNG deals and developing infrastructure reflect its commitment to expanding its operational capabilities and enhancing its competitive edge in the energy sector.
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Electric Mobility/ Hydrogen/Bio-Methane
Gruner to set up compressed biogas plant in Gujarat at Rs 220-cr investment
Gruner Renewable Energy on Monday said it will set up a compressed biogas (CBG) plant in Gujarat at an estimated cost of Rs 220 crore.
The CBG plant in Navsari is expected to produce 44 tonnes of biogas per day (TPD) using cost-effective feedstocks such as paddy, pressmud, canetrash and of municipal solid waste (MSW). This equates to an annual production of over 16,000 tonnes of biogas, Gruner Renewable Energy said in a statement.
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“Gruner Renewable Energy, in collaboration with a leading business conglomerate, is all set to establish Asia’s largest compressed biogas plant in Navsari, Gujarat. The estimated cost of this plant is approximately Rs 220 crore,” it said.
As India works towards decreasing reliance on fossil fuels, opening of plants like Navsari is going to play a critical role in meeting our goals of championing sustainable energy solutions, Gruner Renewable Energy Founder and CEO Utkarsh Gupta said.
The establishment of CBG plants will significantly reduce the country’s crude oil import bill, he added.
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Oriana to Build Electrolyser Giga Factory for Green Hydrogen, E-Fuels
Renewable energy company Oriana Power on Tuesday said it will build a gigawattscale factory for manufacturing alkaline electrolysers and balance of plant (BOP) modules. The factory will open in two phases, with the first phase of 500 mw annual capacity for electrolyser production expected to be operational in 2026. The facility is being built in partnership with Splitwaters, a US-based provider of alkaline electrolyser and BOP equipment.
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“This factory will be a critical component in the company’s efforts to develop green hydrogen and e-fuels, including green ammonia, e-methanol and green methanol,” Oriana said in a statement. It did not disclose investment details for the new venture.
The collaboration with Splitwaters will enable Oriana Power to utilise the latest electrolysis technology for ensuring hydrogen production from renewable energy sources, the company said. The BOP systems will support the electrolysers by managing critical functions such as water supply, gas separation, and purification, it said.
“The green hydrogen market faces significant challenges due to high initial capital costs and lengthy execution timelines, but Splitwaters’ one-stop-shop model and modular technology address both these issues effectively,” said Anirudh Saraswat, chief business officer at Oriana Power.
“Our partnership with Splitwaters allows us to deploy their state-of-the-art technology to produce these clean energy carriers at scale and at a significantly lower cost, up to 30% lower capex than competing methods,” he said.
Oriana Power said it is also working on setting up green hydrogen and e-fuel projects in the UK and Europe in partnership with Splitwaters.
“The payoffs from the green hydrogen and e-fuels business will start by next financial year and we expect this business to contribute a significant share of our revenues by FY2027,” Saraswat said.
https://epaper.indiatimes.com/timesepaper/publication-the-economic-times,city-delhi.cms
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JSW MG Motor to bring EV charging services under one app
With an aim to foster the electric vehicle (EV) ecosystem in India, JSW MG Motor India on Tuesday announced its tie up with various charging infrastructure companies which will be brought under one application. This move will cover around 8,500 charging points in India out of the total 12,000 stations.
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“This is the first time an original equipment manufacturer (OEM) has integrated all charging operators in one single app. Eighty per cent of this country’s chargers are on our app now. Through this app, you can not only see the location, but also check the availability of chargers and their rate/tariff,” said Rajeev Chaba, CEO Emeritus, JSW MG Motor India.
For the purpose of the application, called eHUB, JSW MG Motor has partnered with charging providers like Adani Total Energies Limited (ATEL), BPCL, Chargezone, Glida, HPCL, Jio-BP, Shell, Statiq and Zeon. Many others will be on-boarded soon, the company said and added that the app will be available in 11 languages. It will also be equipped with trip-planning features and can be accessed by EV owners of any brand.
The carmaker announced that its upcoming line-up, including ‘Windsor’ EV, will feature the MG-Jio innovative connectivity platform (MG-Jio ICP). This will give owners access to the MG app store for in-car gaming, entertainment and learning, superior voice capability in six Indian languages and a Home-to-Car functionality. “With initiatives such as our unified charging platform, battery second-life project, EV education and the MG-Jio ICP, we are empowering the industry as well as our customers with smarter, more sustainable choices,” said Gaurav Gupta, Chief Growth Officer, JSW MG Motor India.
The company added that the brand offers six-way charging solutions and aims to install 1,000 community charging points across India.
JSW MG Motor has engaged with over 1,500 start-ups and collaborated with more than 50 colleges to drive EV education and skill development.
Growth outlook
In terms of EV sales, Chaba highlighted that last year the company’s market share in the EV sector stood at 17 per cent and grew by 150 per cent. This year, it would grow by almost 250 per cent.
“Our EV sales are growing because they are compelling and trustworthy. We have 40 per cent of our total sales coming from EVs right now and it is only growing,” Chaba added.
https://epaper.thehindubusinessline.com/reader
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Karnal farmers to supply 1 LMT crop residue to ethanol plant in Panipat
Farmers from Karnal district will supply one lakh metric tonnes (MT) of stubble to Indian Oil Corporation Limited’s (IOCL) second generation (2G) ethanol plant in Panipat. This initiative is a part of the district administration’s efforts to manage crop residue and prevent stubble burning, which contributes to several environmental and health challenges.
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To collect the supply, the IOCL has expanded its collection yards from five to six. These yards will temporarily store the crop residue before it is transported to the Panipat plant, where it will be converted into ethanol.
Last year, farmers in the region supplied nearly 90,000 MT of stubble from these centres in the district, of which Bhamberheri depot supplied 13,608 MT, Agaund 13,844 MT, Amupur 19,602 MT, Jamalpur 16,680 MT and Bandrala in Assandh 16,190 MT, said Dr Wazir Singh, Deputy Director, Agriculture.
“Deputy Commissioner Uttam Singh has conducted a meeting in this regard of all stakeholders, focusing on farmer awareness, information, and communication activities. Subsidies on agricultural machinery were also discussed,” said the Deputy Director. Monitoring and enforcement measures, mapping of available crop residue management (CRM) machinery with harvesting schedules, and the establishment of a crop residue paddy straw supply chain under CRM for the kharif 2024 season have also been finalised, Dr Singh added.
The Deputy Director said paddy is cultivated on nearly 4.25 lakh acres — 1.70 lakh acres dedicated to basmati and 2.55 lakh acres to non-basmati. The total paddy cultivation generates around 8.50 lakh MT of straw, with basmati contributing 3.40 lakh MT and non-basmati 5.10 lakh MT. Of this, 1 lakh MT is used as fodder, 2 lakh MT managed in-situ, and 5.5 lakh MT ex-situ, he added.
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Adani Total Gas currently has 1,212 EV charging points, work is on for another 740: CEO
Ahmedabad (Gujarat) [India], July 29 (ANI): Adani Total Gas Ltd’s total EV charging points have grown to 1,212 units at the end of June 2024, and another 740 plus EV charging points are under various stages of construction at this point, said CEO Suresh Mangalani on Monday, as he presented company’s Q1 earnings.
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“We would see them coming to life and charging the public transport very soon in the near future. With these expanded networks our EV charging points presence will grow to 23 states and 217 cities,” he said.
On the biomass business, he apprised that the Adani Group company has already commissioned phase one of its prestigious Barsana project near Mathura.
“Along with the cow dung, which is the base feedstock, we have now secured the diversified feedstock of rice straw as well as press mud. This diversified feedstock availability will help us to increase the yield of compressed biogas as well as the organic fertilizer,” Mangalani said in a video presentation.
On the LNG for transport and mining front, Adani Total Gas will be very soon commissioning its first LNG station, which will cater to the heavy vehicles, heavy trucks and buses in Tirupur in Tamil Nadu.
“We also plan to open 10 LNG stations in the country to help in developing the ecosystem for LNG as the transport fuel for long haul vehicles like trucks and buses,” the CEO added.
During the quarter, he apprised that Adani Total Gas’ credit rating has been upgraded to ICRA AA stable from ICRA AA minus stable.
“This, ATGL will leverage the healthy balance sheet to fund its future capex requirement based on the drawn capital management plan,” he said.
The company’s piped natural gas to households has now increased to 858,000 homes across its all geographic areas. Similarly, for industry and commercial consumers, it has added 211 more new consumers on piped natural gas and the total tally has now increased to 8,542 industrial and commercial consumers across its geographical area.
Adani Total Gas Ltd on Monday reported that its revenue from operations during the April-June 2024 quarter rose 9 per cent year-on-year to Rs 1,237 crore. In the same quarter of 2023, the revenue stood at Rs 1,135 crore.
Adani Total Gas Ltd, a leading city gas distribution company, on Monday announced its operational and financial performance for the quarter ended June 2024.
During the quarter, the Adani Group company’s net profit or profit after tax rose 20 per cent to Rs 177 crore, as against the reported Rs 148 crore in the same quarter of 2023.
The company’s EBITDA rose 21 per cent during the quarter to Rs 308 crore, versus Rs 255 crore in the April-June 2023 quarter.
“We continue to see more traction on natural gas as we further build CGD infrastructure and penetrate deeper across multiple GAs. With newer sustainable energy in the form of E-mobility, LNG and Biomass, we remain fully committed to providing a sustainable energy platform to our consumers and playing a leading role in the country’s energy transition journey,” said Suresh P Manglani, ED and CEO of Adani Total Gas.
Adani Total Gas is authorised in 34 Geographical Areas and plays a significant role in the nation’s efforts to enhance the share of natural gas in its energy mix. Of the 53 GAs, 34 are owned by Adani Total Gas and the balance 19 GAs are owned by Indian Oil-Adani Gas Private Limited (IOAGPL) – a 50:50 joint venture between Adani Total Gas Limited and Indian Oil Corporation Limited. (ANI)
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INTERNATIONAL NEWS
Natural Gas / Transnational Pipelines/ Others
Colombia: Petrobras makes deepwater natural gas discovery offshore Colombia
(WO) – Petrobras achieved the main target of the Uchuva-2 well, confirming the extent of the natural gas discovery made in 2022 while drilling of the Uchuva-1 well. This well adds relevant information for the development of a new frontier of exploration and production in Colombia, reinforcing the volumetric potential for natural gas in the region.
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Uchuva-2 well, spudded on June 19, is located in deep water offshore Colombia, 31 km off the coast and at a water depth of 804 m.
The well is in progress, with five phases, and the gas-bearing interval was verified at phase 4 through wireline logging, which will be further characterized through laboratory analyses.
The consortium, constituted by Petrobras as operator (working interest 44.44%), in partnership with Ecopetrol (working interest 55.56%), will continue operations to complete the project to drill the well to the expected depth and characterize the conditions of the reservoirs found, with the prediction of carrying out a formation test by the end of 2024.
Petrobras’ operations in the Tayrona Block are in line with the company’s long-term strategy, aimed at replenishing oil and gas reserves through the exploration of new frontiers and acting in partnership, ensuring that global energy demand is met during the energy transition.
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Colombia: Ksi Lisims LNG files for pipeline route amendment
As the Nisga’a Nation and Western LNG prepare to begin construction on their Prince Rupert Gas Transmission pipeline on Aug. 24, the project has applied for an amendment under its environmental assessment Permit to alter the pipeline route. Under the current permit, the pipeline turns south at Nass Bay and continues south to Port Edward where it was originally going to feed a now-cancelled Petronas LNG facility.
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The amendment application shows the route now taking a 180-degree turn at the Nasoga Gulf and heading up the Portland Inlet to the north end of Pearse Island where it is intended to supply the Ksi Lisims LNG offshore liquefaction plant near the Nisga’a village of Gingolx.
Rebecca Scott, a spokesperson for the partnership between the Nisga’a Nation and Calgary-based Western LNG which owns both the pipeline project and the liquefaction facility project it will feed, said there are numerous advantages to the new route.
The partnership believes these advantages address many of the environmental concerns of coastal First Nations including the Nisga’a, Lax Kw’alaams, Metlakatla, Kitsumkalum and Kitselas.
These include reducing the duration of construction in Nass Bay, avoiding land construction in Nass Harbour and eliminating 100 kilometres of pipe with a consequent reduction of trenching, excavation and intertidal transitions.
She also noted that the number of wetlands crossings will be reduced from five to one and the number of heritage sites affected will go from 30 to one.
The public comment period on the amendment application begins Aug. 1 and closes Sept. 3.
The partnership completed the acquisition of the Prince Rupert Gas Transmission Pipeline project from TC Energy in June. To keep the current environmental permit valid, the company must achieve a status of construction being “substantially started” by Nov. 25.
Along with announcing the submission of the amendment application, the project revealed more details of its planned 2024 construction activities including a more specific location.
Scott said the construction will take place approximately between just west of Laxgalts’ap and Nass Camp. No work on or around waterways is currently planned, she said.
The work will include road and bridge construction and repair, right of way clearing and grading, and building construction management offices, worker housing and laydown yards (areas where tools, materials, equipment and vehicles are stored temporarily when they are not in use).
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Nigeria: Greenville LNG launches affordable CNG fueling for luxury buses in Nasarawa
In a significant development for energy sustainability and transportation in Nasarawa State, Greenville LNG, Nigeria’s leading domestic gas liquefaction and distribution company, has commenced the provision of compressed natural gas (CNG) to the state’s new fleet of luxury buses. This milestone, achieved at Greenville LNG’s pioneering gas station in Lafia, marks a crucial step toward more secure, eco-friendly, and cost-effective energy solutions.
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The launch has sparked considerable enthusiasm among state officials, commuters, and transport operators in Lafia. Greenville LNG is now fueling the Nasarawa State-owned luxury ride buses, operated by Nasarawa Luxury Ride, with its CNG offering. This transition aligns with the state government’s commitment to environmental sustainability and economic development through the adoption of cleaner energy alternatives.
The Nasarawa State Government, in its push for industrial modernization and adherence to global carbon emission standards, recently acquired CNG-powered buses from JAC Motors. These buses will serve both intra- and interstate routes, including routes from Lafia to Abuja and Lafia to Jos. The adoption of CNG is driven by the state’s focus on improving human health, safety, and environmental protection by moving away from heavy, carbon-emitting fossil fuels.
Governor Abdullahi A. Sule emphasized this shift during the Nasarawa State Investment Summit held in May. He advocated for the transition from traditional fossil fuels to cleaner, more affordable energy sources like CNG and LNG.
Governor Sule advised energy investors to focus on establishing LNG-CNG daughter stations rather than conventional petrol stations, citing the new Greenville LNG hub in Lafia as a model for future investments.
The Greenville LNG CNG hub in Lafia, now operational, is set for an official commissioning ceremony by Governor Sule in August. This hub represents a critical infrastructure development that supports Nasarawa State’s goal of energy transition and economic transformation.
Greenville LNG, a leader in Nigeria’s private sector gas industry, operates a comprehensive virtual pipeline with over 600 specialized LNG delivery trucks. These trucks, capable of traveling 1,200 to 1,800 kilometers without refueling, ensure the consistent and reliable distribution of LNG and CNG across Nigeria. With existing hubs in Rumuji, Benin, Shagamu, Koton-Karfe, Kaduna, and Lafia, the company plans to expand its network to 25 hubs nationwide. This expansion aims to deliver cleaner, more affordable energy to homes, the automotive sector, and industrial operations, enhancing Nigeria’s energy landscape.
https://thesun.ng/greenville-lng-launches-affordable-cng-fueling-for-luxury-buses-in-nasarawa/
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Nigeria: Dana Motors set for mass distribution of CNG conversion kits
Dana Motors, one of the approved autogas conversion centres, has announced its participation in the mass distribution of Compressed Natural Gas (CNG) conversion kits as part of the Presidential Compressed Natural Gas (CNG) Initiative. This development marks a significant milestone in Nigeria’s journey towards cleaner and more Efficient energy use for commercial transportation.
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Michael Oluwagbemi, Chief Executive Officer and Programme Director of the Presidential CNG Initiative revealed that 30,000 CNG conversion kits have been procured and are set to be distributed to commercial drivers within the next 90 days.
He made the announcement during the Park-to-Park CNG Conversion Mobilisation event held recently in Lagos.
Oluwagbemi underscored the nationwide scope of the initiative, stating, “We have been across over 14 states, including Ilorin, Ekiti, Lokoja, Aba, and Port Harcourt; we have visited the South-East and even the North. We are confident we have built a national movement for this conversion.”
He further highlighted the environmental and economic benefits of CNG, noting its cost-effectiveness, cleaner emissions, and overall reliability. “CNG is cheaper, cleaner, safer, and more reliable, with 40% less steel emissions and 90% fewer pollutants in the air. Instead of flaring gas, we use it for the growth of the economy,” said Oluwagbemi.
Dana Motors, located on Oshodi-Apapa Expressway,118, Isolo, Lagos, Nigeria, was among the 14 conversion centers represented at the event.
At the event, former Commissioner for Transportation in Lagos State, Dr. Kayode Opeifa, reiterated the Federal Government’s commitment to easing the impact of fuel price increases on Transporters through the provision of conversion kits.
“150 beneficiaries will collect vouchers for conversion, which they will take to an installation center. This initiative will increase pocket savings, reduce transport fares, and lower commodity prices,” he stated.
Najeem Yasin, former National President of the Nigerian Union of Road Transport Workers (NURTW), praised the initiative, saying, “With CNG, prices of commercial vehicles should come down, positively affecting all sectors of the economy. The entire 36 states will receive these free conversion kits, ensuring nationwide coverage.”The initiative underscores the Federal Government’s dedication to sustainable energy solutions and economic growth through innovative measures. Dana Motors is honored to be part of this groundbreaking effort to enhance Nigeria’s transportation sector and environmental health.
https://thesun.ng/dana-motors-set-for-mass-distribution-of-cng-conversion-kits/
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Natural Gas / LNG Utilization
Netherlands: Uniper targets shipping fuel as it begins producing bio-LNG in Rotterdam
German energy company converts liquefies biomethane at Dutch hub. Uniper has begun using bio-LNG production capacity at Rotterdam’s Gate terminal to produce the fuel for shipping and road transport. The German energy company said the move makes it the first shipper at the Dutch LNG hub to begin liquefying biomethane. Bio-LNG or liquefied biomethane is produced from biological waste and can help reduce the greenhouse gas footprint of LNG-fuelled vessels Uniper chief commercial officer Carsten Poppinga described the move as a step forward for the company’s decarbonisation efforts. “The decarbonisation of the market for marine and truck fuels will require the use of several low to zero-carbon fuels,” he said. “Bio-LNG is among the most important ones.”
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Poppinga said the fuel will help shipping, including Uniper’s own fleet, meet the goals of the International Maritime Organization’s decarbonisation targets.
“It is great that once again we are able to generate incremental value out of our Gate terminal asset.”
Uniper has 1bn cubic metres per year of capacity rights at Gate, an LNG import facility controlled by Vopak and Gasunie. The German company’s rises to 4 bcm per year in October.
The company said its bio-LNG at the terminal is certified under the International Sustainability and Carbon Certification scheme.
It is made from biogas produced in the European Union and then upgraded to biomethane, which involves removing CO2 and hydrogen sulphide. It is then fed into the Dutch natural gas grid.
The Gate liquefied can convert 100,000 tonnes per year of that gas into bio-LNG.
“This is another step in developing a fully integrated biomethane-BioLNG supply chain within Uniper to increase the value of our Gate asset and further reduce the emissions of our portfolio,” Uniper said.
Uniper’s bio-LNG move comes weeks after Titan Clean fuels and United European Car Carriers announced that they had teamed up to carry out a series of vessel bunkering operations at the nearby Dutch port of Zeebrugge using liquified biomethane.(Copyright)
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Canada: ‘Beyond Methane Pledge’ launched as liner giants eye more LNG-fuelled ships
The newly launched ‘Beyond Methane Pledge’ calls for an end to LNG and other methane-based fuels, as major shipping companies ready to order new LNG-powered containerships.A coalition of seven civil society organisations has launched the ‘Beyond Methane Pledge’ to drive a global shift away from liquefied natural gas (LNG) and other methane-based fuels.
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The initiative, announced on July 31, 2024, aims to phase out these fuels across all sectors and calls on industry leaders—including ship owners, ports, policymakers, and financial institutions—to commit to a sustainable, zero-emission future.
The pledge is supported by organisations such as Pacific Environment, Clean Arctic Alliance, Transport & Environment, Clean Shipping Coalition, Stand.earth, Opportunity Green, and NABU.
LNG is primarily composed of methane, a potent greenhouse gas, with a global warming potential that is 80 times greater than carbon dioxide in the short term.
The pledge calls for an immediate halt to the expansion of LNG infrastructure and a complete phase-out of LNG and methane-based fuels by 2030. It also urges transparency in reporting methane’s climate impact and the full lifecycle emissions of these fuels.
Curtis Martin, Canada Shipping Campaigner for the Say No to LNG Campaign, said, “LNG is not a bridge fuel; it’s a bridge to climate disaster. The Beyond Methane Pledge represents a crucial step towards a sustainable future by moving away from methane-based solutions and investing in truly zero-emission technologies.”
“Switching from oil to gas now will simply lock the shipping industry into a future of fossil fuels. Luckily there are truly green solutions available. Ships can become more efficient by using wind power technology, while e-fuels made from green hydrogen would allow giant cargo ships to cross the oceans without damaging the planet. It is not a lack of technology but a lack of will. Thanks to economies of scale, it costs major shipping companies like Maersk and MSC just peanuts to switch to green technologies. It’s time we stopped letting them off the hook,” said Constance Dijkstra, IMO Policy Manager, Transport & Environment.
Build-up of LNG-powered fleet
This initiative is timely, as major shipping companies are reportedly planning to order dozens of new LNG-fuelled container ships. Maersk, which has been a vocal critic of LNG due to its methane emissions, is rumoured to be considering up to 22 LNG-fuelled containerships, although these reports remain unconfirmed.
Meanwhile, CMA CGM confirmed an order for twelve 15,000 TEU LNG-fuelled vessels from Hyundai Heavy Industries. CMA CGM has invested US$15 billion in 119 new vessels, which the company anticipates will be capable of using biogas, biomethanol and e-fuels. According to the latest market reports, Hapag-Lloyd is said to be exploring the construction of up to 30 new LNG-powered vessels, potentially worth US$5.4 billion, with plans for both large and medium-sized ships.
LNG is viewed as a transitional fuel as the industry looks towards more sustainable options, which are not yet widely available due to immature combustion and propulsion technology or a lack of bunkering infrastructure and supply.
A key concern with LNG as a marine fuel is methane slip, where unburnt methane escapes during the combustion process. Engine manufacturers are developing technologies to eliminate this issue, but a significant gap exists in accurate data on the scale, volume, and impact of methane slip on LNG-powered ships.
Concerns have been raised that investing in LNG-powered ships could result in stranded assets as the maritime industry moves towards more sustainable solutions. However, SEA-LNG, an industry coalition supporting LNG as maritime fuel, suggests that bioLNG and e-LNG could eventually offer a net-zero option for shipping and owners who have invested in LNG-powered fleet, with increased production expected in Europe.
Data from DNV indicates that there are 103 LNG-powered container ships in operation, with 171 more on order.
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Argentina: Río Negro prevails over Buenos Aires for construction of new LNG plant
The Patagonian province’s adherence to a new national investment regime was a crucial factor in the decision. A liquefied natural gas (LNG) plant set to be a joint investment by oil and gas giant YPF and Malaysian state-owned company Petronas will be built in Río Negro, according to exclusive information obtained by Herald sister publication Ámbito. YPF sources said that although there is still no official confirmation, there will be news soon.
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The plant will be located in the area of Punta Colorada, in the Patagonian town of Sierra Grande, Río Negro province. An old, unused port with an outlet to the Atlantic Ocean will also be developed and modernized.
The port located in Golfo San Matías offers special advantages for the access of large vessels, with a 40-meter depth seven kilometers from the coast, which allows free access without interference. Accessibility to national route number 3 and the San Antonio Oeste Airport is an additional bonus.
The decision to install the plant in Río Negro over the initial proposal to build it in Bahía Blanca, Buenos Aires province, was made after an in-depth study commissioned to an international consulting firm. The Patagonia province became the first to officially adhere to the Large Investment Incentive Regime (RIGI) last July 12. This step was a crucial advantage over Buenos Aires.
The relationship between YPF and Petronas
Petronas is the second most important partner for YPF in terms of investment volume. The relationship started at the end of 2014 when they signed a partnership for the development of unconventional oil field La Amarga Chica in Vaca Muerta, Neuquén, where the Malaysian state-owned company has invested U$S1,5 billion.
The YPF and Petronas project is part of the so-called 4×4 plan of the state-owned oil company, a 10-year action plan that contemplates an investment of US$10 billion.
“Today could be a great day for the people of Patagonia. The port in Río Negro will be a great opportunity for the region,” Neuquén Governor Rolando Figueroa said Tuesday in a sector-related meeting before the news was known.
Río Negro want to solidify itself as a mining and energy hub
In its presentation, the Río Negro government highlighted the presence of 670 mining quarries in its territory where silica sands, as well as raw materials for concrete and synthetic products, can be extracted. The province currently has 3 treatment plants and 5 producing companies that develop 2.5 million tons per year.
The proposal would revalue the energy development of the province as it contemplates the construction of a new route to Vaca Muerta, which implies the development of a 24.2 kilometer-long stretch from the intersection with provincial route 17 and provincial route 8. It would connect with the Oldelval oil pipeline, the crossing with the Cañadón El Nene pipe, and the Shell plant pipeline.
From there, a new 95 kilometer section would be built from the outskirts of General Roca to the intersection with provincial Route 8, running parallel to the Oldeval-Gasoducto NEUBA pipeline.
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South Korea: MOL designing LNG carrier fitted with hard sails
MITSUI O.S.K. Lines has been granted an approval in principle by ClassNK for the design of an LNG-fuelled carrier that is also fitted with a wind-assisted propulsion system.The design, which has been jointly developed by MOL and Hanwha Ocean Co., a South Korean shipbuilding company, will see a vessel fuelled with liquefied natural gas and fitted with two Wind Challenger hard sails.
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In an announcement made on Friday (2 August), the approval in principle is claimed by MOL as the worlds’ first approval for an LNG carrier with a wind propulsion system.
MOL said the LNG carrier that obtained the AiP is capable of entering LNG terminals worldwide, and features a cargo tank capacity of 174 000 cubic metres.
The design work is currently underway for the new carrier ordered by MOL from Hanwha, aiming for actual installation.
A risk assessment was conducted by MOL, Hanwha, and ClassNK that comprehensively evaluated factors such as the placement of the sails, their impact on visibility, emergency operation procedures, and other safety measures, leading to the obtaining the AiP.
The French company that designed the vessel’s cargo tank, Gaztransport & Technigaz, conducted an evaluation of the impact on the cargo tank due to installation of the two hard sails, which contributed to obtaining the AiP, said MOL.
Gaztransport subsequently confirmed that the structural safety of the tank is sufficiently ensured, even when considering the stresses imposed by the sails.
The new carrier design is in line with MOL’s goal to achieve net-zero greenhouse gas emissions by 2050, and part of their plan to achieve this includes “introduction of clean energy, further energy-saving technologies”.
The group plans to launch 25 vessels equipped with the Wind Challenger by 2030 and 80 vessels by 2035.
https://www.thedcn.com.au/region/australia/mol-designing-lng-carrier-fitted-with-hard-sails/
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Denmark: Maersk to add up to 60 dual-fuel ships, announces turn to bio-LNG
Maersk has announced a massive fleet renewal plan, including a turn to bio-LNG as it hedges its bets on multiple fuel options. Liner major Maersk is returning to shipyards with plans to sign newbuilding orders and time-charter contracts, aiming to secure a total dual-fuel capacity of 800,000 TEU, with deliveries expected between 2026 and 2030.
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The move continues the 2021 fleet renewal plan, with the company targeting a renewal pace of about 160,000 TEU per year.
Maersk said that the orders will reach a total of 50-60 combining both owned and chartered dual-fuel vessels of different sizes “offering great network optionality”. Under the plan, approximately 300,000 TEU will be owned capacity while the remaining 500,000 TEU is planned through time-charter agreements.
Speaking on the fleet renewal during today’s conference call on Q2 and H1 results, Vincent Clerc, CEO of Maersk, said the ordering has been batched due to clogged-up delivery times at yards, therefore the company needs to place multiple years of orders at once. However, the delivery is expected to be spread out evenly across the upcoming period.
“Most of these ships are already ordered, or will be in the coming weeks,” Clerc said.
Maersk hedges its bets with bio-LNG addition
Maersk revealed that the dual-fuel ships will be a mix of methanol and liquified gas dual-fuel propulsion systems, with an intention to run the gas-powered ships on liquified bio-methane (bio-LNG). In addition, Maersk said it was working to secure offtake agreements for bio-LNG to ensure that the new dual-fuel gas vessels provide greenhouse gas emissions reductions in this decade.
Once the vessels have been delivered, around 25% of the Maersk fleet will be equipped with dual-fuel engines.
The announcement comes on the back of recent market reports that linked Maersk to an order of up to 22 LNG-fuelled containerships. Maersk has been a vocal opponent of LNG as a marine fuel due to its methane emissions and has vowed to order only dual-fuel vessels, predominantly opting for methanol as its fuel of choice. This decision has practically kick-started a trend in container shipping, with numerous liner majors, including ONE, COSCO, and CMA CGM, following suit with methanol-fuelled orders. Maersk has 25 owned dual-fuel methanol vessels; 5 in service and 20 on order providing around 350,000 TEU of dual-fuel capacity.
Commenting on the bio-LNG move, which surprised the market, Clerc explained that the decision was made to mitigate risks due to the uncertainty surrounding the availability and prices of green fuels, as well as the evolving regulatory landscape.
“Therefore, to reach our decarbonisation agenda in an economically competitive way, there was a necessity for us to hedge some of the bets that we are making on technology and not to take only one way and depend on assumptions that we have very little influence on. This was an opportunity for us to balance the bets,” he added.
“These orders will not add to the overall capacity and over time every vessel coming in will be replacing a scrapped vessel having reached end of life, ensuring that we maintain our fleet size at around 4.3 million TEU. By diversifying our fleet and fuel options, we gain the flexibility, knowledge, and experience to cater to a future with multiple fuel paths. We thank our partners for working with us to move the industry further towards enabling a future with decarbonised ocean transport,” said Ahmed Hassan, Head of Asset Strategy & Strategic Partnerships at Maersk.
Maersk expects its CAPEX to be between US$ 10-11b for 2024-2025 (previously US$ 9- 10b) due to continuous fleet renewal. At the end of Q2, Maersk’s fleet comprised 707 container vessels, including 304 owned and 403 chartered ships, totalling 4.3 million TEU.
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Oman: Oman to Construct New LNG Train at Qalhat Industrial Complex, Wilayat of Sur
The Government of the Sultanate of Oman has announced plans to develop an Additional Liquefied Natural Gas (LNG) train with a capacity of 3.8 million metric tonnes per annum (MTPA) at the Qalhat Industrial Complex in the Wilayat of Sur, South A’Sharqiyah Governorate. This new development is part of Oman’s broader strategy to enhance its LNG production capabilities and infrastructure, positioning itself to meet the growing global demand for energy. The expansion at Qalhat Industrial Complex will significantly bolster Oman’s LNG output, reinforcing its role in the global energy market.
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This decision underscores Oman’s commitment to contributing to energy security while responding to the rising demand for sustainable and green energy solutions. By increasing its LNG production capacity, Oman aims to support global energy needs more effectively and sustainably. This development aligns with the country’s strategic focus on advancing its energy sector and promoting environmentally responsible practices in line with global trends towards cleaner energy sources.
The new LNG train project is anticipated to be completed and operational by 2029, aligning with the growing global demand for liquefied natural gas. This expansion will significantly enhance Oman’s LNG production capacity, positioning the country to better serve international energy markets and contribute to global energy security.
Eng. Salem Al Aufi, Minister of Energy and Minerals highlighted the strategic significance of adding a new LNG train to Oman’s energy infrastructure. He noted that this expansion is crucial for reinforcing Oman’s role as a major player in the global liquefied natural gas (LNG) market. The new LNG train is a pivotal element in the country’s broader strategy to enhance its production capabilities and strengthen its position as a leading exporter of LNG, thereby contributing to its long-term energy objectives and global market presence.
The Minister emphasized that the new LNG train represents a strategic effort to leverage Oman’s existing infrastructure and resources. This initiative is designed to capitalize on the increasing global demand for clean energy sources, thereby supporting the diversification and long-term sustainability of Oman’s economy. By enhancing its LNG production capabilities, Oman aims to not only strengthen its position in the global energy market but also contribute to the broader goals of economic resilience and environmental sustainability.
LNG is a crucial component of the local economy, with Oman LNG and Qalhat LNG already holding esteemed reputations in global markets. The development of this additional train will further bolster Oman’s status as a reliable LNG supplier, reinforcing its economic strength and its role in meeting global energy needs sustainably.
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Global LNG Development
Argentina: YPF and Petronas announce joint LNG partnership in Argentine Patagonia
Argentina’s state-run oil company YPF and its Malaysian version Petronas will invest over US$ 30 billion to build a Liquefied Natural Gas (LNG) plant in the Patagonian province of Río Negro, it was announced, thus ending speculations according to which such a facility was to be or should have been settled in the Bahía Blanca area in the province of Buenos Aires.
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With the plant in Sierra Grande, Río Negro, the consortium would become the fifth global LNG producer, it was explained. YPF’s board of directors unanimously chose Sierra Grande after a thorough technical and economic evaluation process which found that the Rio Negro location offered significant advantages over the initial Bahia Blanca proposal.
One of these factors is that shorter pipelines are needed to transport the natural gas from Vaca Muerta, which represents lower costs and greater efficiency. In addition, the sea depth in the Sierra Grande area is greater, minimizing the need for dredging to achieve an adequate draft.
The experts also considered the availability of larger portions of land and lower interference with other social and economic activities in the area. Furthermore, the province of Río Negro offered optimal conditions for the development of the project seeking to boost the Patagonian economy.
Both companies highlighted in a statement that Río Negro has “better economic aspects for the project, even if Buenos Aires were to match the tax benefits,” according to a report from the international consulting firm Arthur D. Little. Río Negro can develop a deep water port where large “supertanker” ships can enter and lower transportation costs, it was also explained. In short, the Sierra Grande area “appears as the best option,” the document went on.
YPF and Petronas will be seeking to lure the other oil companies in the country involved in natural gas production (PAE, Total Austral, Tecpetrol, Pampa Energía, CGC, and Wintershall Dea, among others) to join a partnership for large-scale exports. Meetings with potential buyers have already been scheduled, it was reported.
Ties between YPF and Petronas date back to 2014 with the La Amarga Chica Unconventional Block development in Vaca Muerta. With a joint investment worth US$ 1.5 billion, this alliance is part of YPF’s ambitious plan, which foresees an investment of US$ 10 billion over the next ten years.
The Sierra Grande LNG plant is expected to generate numerous direct and indirect jobs with the reactivation of the Punta Colorada port, which could in turn attract other industries to settle in the area.
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US: Cheniere, Galp sign 20-year LNG agreement
Cheniere Energy Inc. subsidiary Cheniere Marketing LLC agreed to provide LNG to Galp Trading SA, a subsidiary of Galp Energia SGPS SA. Under the agreement, Galp will purchase about 500,000 tonnes/year (tpy) of LNG for 20 years on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries are expected to begin in the early 2030s and are subject to, among other things, a positive final investment decision on the second train (Train 8) of the Sabine Pass Liquefaction Expansion Project. The agreement includes a limited number of early cargoes to be purchased by Galp prior to the start of Train 8.
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The SPL Expansion Project is being developed for up to 20 million tpy of LNG capacity, inclusive of estimated debottlenecking opportunities.
In February 2024, Cheniere Energy subsidiaries applied to the Federal Energy Regulatory Commission for authorization to site, construct, and operate the project, as well as an application to the Department of Energy requesting authorization to export LNG to Free-Trade Agreement and non-FTA countries.
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Greece: CPLP cleared to shift focus to LNG carriers and energy transition business
Greek owner of ocean-going vessels Capital Product Partners (CPLP) has secured approval of corporate conversion and name change as it plans strategic pivot to the LNG and energy transition business.
On August 2, CPLP announced the approval by a majority of the company’s shareholders, the conflicts committee of its Board of Directors, full Board of Directors, and its general partner Capital GP, of the conversion of CPLP from a Marshall Islands limited partnership to a Marshall Islands corporation and the renaming of CPLP to Capital Clean Energy Carriers Corp.
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The conversion and the name change are expected to be completed by August 26, 2024.
According to the company, the conversion and the name change are key milestones in its strategic pivot towards the transportation of various forms of natural gas to industrial customers, including LNG and new commodities emerging as a result of the energy transition, as initially revealed in 2023.
With this goal in mind, CPLP entered into the umbrella agreement with Capital Maritime & Trading Corp. for the acquisition of 11 newbuild LNG carriers. Five vessels are already on the water and the remaining six vessels are expected to be delivered between the first quarter of 2026 and the first quarter of 2027.
In June 2024, the company also ordered 10 state-of-the-art, high-specification gas carriers, including four unique handy multi gas carriers that can carry liquid CO2. These, along with the newbuild LNG carriers, collectively form the “Energy Transition Vessels”.
This $3.9 billion investment, notable both in asset value and scope, demonstrates our commitment to becoming a leading provider of transportation for LNG and other clean fuels, the company said.
“We have already made significant progress on our refocus of the business with 12 latest generation LNG/C vessels currently on the water plus the disposal of seven legacy container vessels during the first half of 2024. Upon delivery of our remaining Energy Transition Vessels between the first quarter of 2026 and the third quarter of 2027, we expect to become the largest U.S.-listed LNG shipping company and will offer our industrial customers a full range of transportation solutions”, CPLP stated.
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Mexico: GFI LNG and Pilot LNG form joint venture to develop Salina Cruz LNG
2024 August 8 15:25
GFI LNG LP (GFI), a diversified energy solutions company, and Pilot LNG LLC (Pilot), a Houston-based clean energy infrastructure developer, have formed a partnership to develop, construct, and operate a small-scale LNG terminal in Salina Cruz, Mexico, according to Pilot’s release.
At full build-out, the facility is anticipated to produce 600,000 gallons of liquified natural gas(LNG) per day, or roughly 0.34 million metric tonnes per annum (MTPA). The partners anticipate operations to commence in mid-to-late 2027. With speed-to-market in mind, the project is being designed to include modular, land-based liquefaction equipment and an optimized storage solution. The project will deploy a floating storage unit (FSU) with an estimated capacity ranging from 50,000 – 140,000 m3 to be moored inside the newly expanded breakwater in the Port of Salina Cruz.
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Salina Cruz will use domestic Mexican gas supply from the Veracruz gulf region to access new high-value markets along the Pacific Coast. These premium markets include: LNG marine fuel deliveries at the Pacific entry of the Panama Canal and into Southern California(the Ports of Long Beach & Los Angeles), sales into Central American power markets, and trucked volumes in the local region of southwestern Mexico. Salina Cruz customers can expect to benefit from competitively priced, Henry Hub-linked LNG sales.
GFI, a Houston-based energy company, has over 20 years of continuous commodity sales of natural gas, refined products, and electricity into Mexico.
Led by LNG veterans with extensive experience in project development, Pilot aims to deliver LNG to new and existing markets across the world and develop a global portfolio of projects.
GFI and Pilot plan to commence front-end engineering and design development for the project this quarter. The partners anticipate a 12-18 month development and permitting timeline and anticipate announcing a Final Investment Decision (FID) in the second half of 2025.
Headquartered in Houston TX, GFI manages a portfolio of businesses focused on energy activities. GFI is forward-thinking in evaluating innovative and emerging technologies to capitalize on market opportunities. GFI’s team is led by an experienced group with over 40years of collective experience across the energy value chain.
Pilot LNG is a clean energy solutions company focused on delivering liquefied natural gas (LNG) to new and existing markets by developing and operating LNG import and LNG fuel/bunkering terminals and related infrastructure. The company aims to establish LNG terminal and logistics opportunities worldwide to meet growing natural gas demand by supplying clean-burning LNG to the rapidly expanding fleet of LNG-fuel vessels.
https://en.portnews.ru/news/366360/
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Norway: Gasum powers Equinor’s platform supply vessel with bio-LNG
Gasum is collaborating with Equinor on a series of liquefied biomethane (bio-LNG) bunkering operations in the Port of Dusavik, Stavanger. Gasum is bunkering ISCC-EU certified mass balanced bio-LNG to Equinor’s chartered platform supply vessel Island Crusader, according to the company’s release.
The first bio-LNG delivery was successfully carried out mid-July. Gasum will continue to supply Island Crusader with 2–3 truckloads of bio-LNG approximately every other week. Each truckload contains about 22 tons of bio-LNG.
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The Island Crusader also features battery hybrid technology, which further improves its environmental performance.
Gasum’s goal is to offer 7 TWh of renewable gas to its customers yearly by 2027, including biomethane and e-methane. A large portion of this volume relies on establishing long-term partnerships with trusted and certified biogas producers throughout Europe.
Achieving this goal would mean combined carbon dioxide reduction of 1.8 million tons per year for Gasum’s customers.
Gasum is able provide bio-LNG bunkering services to all shipping companies that have vessels running on liquefied natural gas as LNG and bio-LNG are fully interchangeable. They can also be mixed at any ratio.
The energy company Gasum is a Nordic gas sector and energy market expert. Gasum offers cleaner energy and energy market expert services for industry and for combined heat and power production as well as cleaner fuel solutions for road and maritime transport. The company helps its customers to reduce their own carbon footprint as well as that of their customers. Together with its partners, Gasum promotes development towards a carbon-neutral future on land and at sea. The Gasum Group has around 340 employees in Finland, Norway, Sweden and Germany. The company’s revenue totaled €1,457 million in 2023.
https://en.portnews.ru/news/366357/
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Japan: ADNOC signs LNG supply agreement with Osaka Gas for Ruwais LNG Project
ADNOC announced the signing of a long-term Heads of Agreement (LNG agreement) with Osaka Gas, one of the largest utility companies in Japan, for the delivery of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028.
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Under the agreement, LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST).Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, said: “This landmark LNG agreement, our first long-term LNG deal with Osaka Gas, underscores the strong, long-standing energy partnership between the UAE and Japan. This agreement further enhances ADNOC’s position as a reliable and responsible global energy provider and reflects our commitment to help meet Japan’s energy needs with secure and sustainable energy solutions. The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition.
”The agreement with Osaka Gas is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG, which take the long-term sales commitments to 70% of the project’s total production capacity.Keiji Takemori, Osaka Gas Executive Vice President, said: “Osaka Gas is delighted to secure LNG from ADNOC, a reliable and responsible global energy supplier. This agreement will significantly enhance the stability of Osaka Gas’ LNG procurement. It will also strengthen the foundation of our stable energy supply to customers, transition to lower carbon energy, and acceleration towards our net zero target. We will continue working on the stable procurement, development and supply of natural gas as a key transition fuel.
”The agreement, ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s, demonstrates the company’s renewed commitment to the Japanese market. ADNOC and Osaka Gas will work together to conclude a detailed Sale and Purchase Agreement in the coming months based on the terms of the LNG agreement.
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Vietnam: US player signs up for LNG terminal project in Vietnam
U.S.-based liquefied natural gas (LNG) importer Excelerate Energy has inked a term sheet with ITECO Joint Stock Company, a Vietnamese private development company, to co-develop a greenfield LNG import terminal in Haiphong, Vietnam.
The Northern Vietnam LNG terminal (NVLT), anticipated to have a total import capacity of 1.2 million tonnes per annum (mtpa), will be constructed in two phases. The first, with an estimated capacity of 0.7 mtpa, is expected to start operations in 2027. The project development is subject to the execution of definitive agreements, regulatory approvals, and the satisfaction of other conditions.
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The future terminal aims to enhance energy infrastructure in northern Vietnam and cater to the energy needs of the region. ITECO signed a share purchase agreement with JAPEX to promote the project in late 2021 when the partners hoped to reach a final investment decision (FID) in the second half of 2022.
The initial development plan included the construction of a 50,000 cubic meters (cbm) LNG storage tank, capable of handling up to 650,000 metric tonnes of LNG annually, and associated jetty facilities. An additional 30,000-cbm storage tank was planned for the latter half of the 2020s.
Excelerate’s floating storage regasification unit (FSRU) Excelsior is set to service Germany’s Wilhelmshaven 2 LNG terminal. The 138,000-cbm FSRU is expected to be moored at a new island jetty in northwestern’ Germany’s Jade Bay in late 2024. Natural gas vaporized at the unit will be sent to shore via ECOnnect Energy’s IQuay F-Class System and fed into the Open Grid Europe (OGE) gas grid.
https://www.offshore-energy.biz/us-player-signs-up-for-lng-terminal-project-in-vietnam/
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South Korea: GasLog names new liquefied natural gas carrier in South Korea
Greece’s GasLog has named a new liquefied natural gas (LNG) carrier at Hanwha Ocean’s yard in Geoje, South Korea. The naming ceremony for the 174,000cbm Gaslog Italy took place on 10 July 2024.The 294.9m by 46.4m vessel will be delivered on 23 August 23. Following delivery, it will serve a charter deal with the Italian energy company Eni.
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Hanwha Ocean, previously known as DSME, launched this vessel and its sister ship Marvel Phoenix in February this year. GasLog ordered these vessels and two other 174,000cbm LNG carriers frin Hanwha Ocean in December 2021. Hanwha Ocean vegan construction on the first LNG carrier in this batch, GasLog Italy, in March last year and laid the keel in September.
GasLog previously said this vessel will go on charter to a “multinational oil and gas company” for a period of seven years and starting from the vessel’s delivery.
Work on the second vessel at Hanwha Ocean, Marvel Phoenix, started in April last year and this vessel is scheduled for delivery in September. GasLog chartered this LNG carrier to Japan’s Mitsui for nine years.
The last two LNG carriers in this batch, scheduled for delivery in the second half of 2025, will serve Australia’s Woodside under charter deals.
All of the LNG carriers have ME-GI propulsion. ME-GI is short for M-type, electronically controlled, gas-injection propulsion. In addition, the vessels also feature a carbon capture and storage system.
https://shipsmonthly.com/news/gaslog-names-new-liquefied-natural-gas-carrier-in-south-korea/
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China: Wison New Energies inks LNG co-operation deal with CIMC
Chinese offshore contractor Wison New Energies has signed a three-year strategic agreement with Zhoushan CIMC Changhong Shipyard Co Ltd (CIMC Changhong) to provide engineering, procurement, construction, installation, and commissioning (EPCIC) services for floating natural gas facilities
Wison New Energies has leased a facility in eastern China’s Zhejiang province for three years following its decision to sell its Zhoushan yard. It will subcontract some of the modules fabrication work to CIMC Changhong, ensuring continuity for its EPCIC projects, specifically floating liquefied natural gas vessels.
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The deal has a strategic basis. Wison is looking to consolidate its presence in the LNG market and insulate itself from possible Western sanctions around Novatek’s Arctic LNG 2 project, where it served as a key manufacturer of liquefaction modules. In June, the company announced it would discontinue working on Russian projects with immediate effect.
That decision followed US sanctions on China’s Penglai Jutal Offshore Engineering Heavy Industries for its continued deliveries of modules to Russia.
CIMC Changhong, a unit of Zhoushan Changhong International Ship Repair, is a large-scale shipbuilding and offshore engineering company with six drydocks varying in dimensions from 240-510 m long and 40-120 m wide.
Wison New Energies said these facilities will further expand its production and construction scale, ensuring the company can fulfil forthcoming contracts.
“This enhancement will specifically boost Wison’s proficiency in fabricating large and mega-scale FLNG, FPSO, FSRUs, and other floating facilities,” it said.
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LNG as a Marine Fuel/Shipping
US: Crowley Accepts Delivery of Largest U.S.-Flagged Bunker Barge
JACKSONVILLE, Fla., July 31, 2024 /PRNewswire/ — Crowley has accepted delivery of the LNG bunker barge Progress, the largest U.S. Jones Act-compliant vessel of its kind, after construction was completed at Fincantieri Bay Shipbuilding in Sturgeon Bay, Wisconsin.
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The Progress will expand access to cleaner energy for ship operators at the Port of Savannah, Georgia. Shell NA LNG, LLC, (Shell) signed a long-term agreement with Crowley to operate the barge, providing another fueling location to ships using liquefied natural gas.
“The Progress LNG bunker barge sets a new standard for quality and capability to serve the energy needs of the shipping industry,” said James C. Fowler, senior vice president and general manager, Crowley Shipping. “LNG offers a safe and reliable solution for ocean carriers that advances the transition to lower emissions. We congratulate the people whose dedication and hard work in designing and building this world-class vessel allowed us to reach this milestone for the U.S. industry and our customers.”
Designed by Crowley’s engineering services group, the 416-foot-long barge has a capacity of 12,000 m3 (3.17 million gallons) and features a transformative design, enabling efficient and dependable supply of LNG to fuel ships. Progress‘ technologies include capability developed by Shell and Crowley’s engineering services group to flexibly deliver LNG to various types of LNG containment systems.
“Fincantieri Bay Shipbuilding continues to be an industry leader in building LNG bunkering barges. We take tremendous pride in seeing another FBS-built vessel leave Sturgeon Bay to its new operational home port. I am proud of the work of our entire Fincantieri Bay Shipbuilding team,” said Jan Allman, vice president and general manager of Fincantieri Bay Shipbuilding.
LNG is the lowest carbon fuel currently available to shipping at scale, emitting up to 23% less greenhouse gas (GHG) emissions (well-to-wake) compared to very/ultra low sulfur fuel oil.
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Italy: Edison completes first Adriatic Sea ship-to-ship LNG bunkering operation
Edison announces that it has completed the liquefied natural gas (LNG) refuelling in the port of Trieste. The ship-to-ship bunkering operation is the first to take place in the Adriatic Sea and the first to be carried out by Edison through the use of the LNG carrier Ravenna Knutsen.
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Ravenna Knutsen has been supplying the Ravenna LNG coastal depot (DIG) – forming part of the Group’s integrated logistics chain and contributing to the decarbonisation of road and maritime transport – since 2021. The operation, that has just concluded, marks the start of more ship-to-ship bunkering operations in the port of Trieste.
After the commissioning of the coastal depot in Ravenna, which has become the reference in Italy for LNG supply in road transport, thanks to today’s operation Edison is the first in the LNG supply market for the maritime segment.
As explained, the Ravenna Knutsen is a unique small LNG carrier with extreme operational flexibility, available to Edison under a contract with Norwegian shipowner Knutsen OAS Shipping. It was built by Hyundai Heavy Industries at the Mipo shipyard in South Korea. The LNG carrier can transport up to 30,000 cubic meters of LNG via three high-nickel steel tanks that are suitably insulated to withstand cryogenic temperatures. The ship has a double set of cargo manifolds (both low and high), which grant it utmost operational versatility, making it capable of operating with storage facilities and vessels of different sizes.
LNG is considered an alternative fuel, in line with European and international energy transition commitments, enabling the achievement of significant reductions in several emission factors by eliminating sulphur oxides and particulate matter (PM) and reducing nitrogen and carbon dioxide emissions. It ensures compliance with the limits imposed by the International Maritime Organization for the transit of vessels in sulphur emission control areas (SECA areas), which the Mediterranean is set to join on 1 May 2025.
Similarly, SQE Marine consulting firm issued a new circular to inform about the latest requirements of ship-to-ship transfer operations for dry bulk carriers, following the latest edition of RightShip RiSQ 3.1. Ship-to-ship (STS) transfer is the term primarily applied to the transfer of dry bulk cargo between sea-going Bulk Carriers.
https://safety4sea.com/edison-completes-first-adriatic-sea-ship-to-ship-lng-bunkering-operation/
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Hong Kong: Anglo-Eastern hits a milestone for LNG bunkering of dual-fuel ships
Hong Kong-based ship manager Anglo-Eastern has reached a milestone of bunkering 100,000 cbm of liquefied natural gas (LNG) across its fleet of LNG dual-fuel vessels. As disclosed, this achievement was made possible through 35 successful LNG bunkering operations. Anglo-Eastern worked with partners in the maritime industry, including Anglo American, BOCOM Leasing, and MOL Chemical Tankers.
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LNG dual-fuel vessels use a cleaner-burning alternative to traditional marine fuels, to reduce greenhouse gas emissions and help the maritime industry transition towards a more sustainable future.
In pursuit of providing properly trained crew on board and shore managers, Anglo-Eastern initiated in-house LNG dual-fuel courses in 2021 with training solutions involving simulators and VR training.
Last year, Anglo-Eastern partnered with Finnish technology company Wärtsilä and DNV’s industry cloud platform Veracity to work on vessel compliance reporting.
Meanwhile, the ship management company also joined forces with German engine manufacturer MAN Energy Solutions (MAN ES) to work on the development of digital products and testing of engine performance.
https://www.offshore-energy.biz/anglo-eastern-hits-a-milestone-for-lng-bunkering-of-dual-fuel-ships/
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South Korea: Capital Gas Ship Management takes delivery of three newbuilding LNG carriers
Capital Gas Ship Management Corp. has taken delivery of the newbuilding LNG carriers Assos, Apostolos, and Aktoras from Hyundai Heavy Industries, South Korea.
The sister vessels with a cargo capacity of 174 000 m3 are highly efficient, propelled with MAN MEGA engines, and equipped with the latest technologies, including an air lubrication system, shaft generators, and increased filling limits (above 99%). The vessels represent the vanguard of the new generation of LNG carriers, setting an industry benchmark with their exceptionally low environmental impact. They achieve this by employing cutting-edge technologies designed to minimise methane slip and substantially reduce carbon dioxide emissions, making them the most eco-efficient additions to the global fleet
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They are three of 18 LNG vessels delivered to Capital Gas between 2020 – 2027.
Delivery festivities were well attended by high-ranking officials from Capital Gas, HHI, and other organisations and companies.
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Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
US: World’s first hydrogen-powered commercial ferry to run on San Francisco Bay, and it’s free to ride
SAN FRANCISCO (AP) — The world’s first hydrogen-powered commercial passenger ferry will start operating on San Francisco Bay as part of plans to phase out diesel-powered vessels and reduce planet-warming carbon emissions, California officials said Friday, demonstrating the ship
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The 70-foot (21-meter) catamaran called the MV Sea Change will transport up to 75 passengers along the waterfront between Pier 41 and the downtown San Francisco ferry terminal starting July 19, officials said. The service will be free for six months while it’s being run as part of a pilot program.
“The implications for this are huge because this isn’t its last stop,” said Jim Wunderman, chair of the San Francisco Bay Area Water Emergency Transportation Authority, which runs commuter ferries across the bay. “If we can operate this successfully, there are going to be more of these vessels in our fleet and in other folks’ fleets in the United States and we think in the world.”
Sea Change can travel about 300 nautical miles and operate for 16 hours before it needs to refuel. The fuel cells produce electricity by combining oxygen and hydrogen in an electrochemical reaction that emits water as a byproduct.
The technology could help clean up the shipping industry, which produces nearly 3% of the world’s total greenhouse gas emissions, officials said. That’s less than from cars, trucks, rail or aviation but still a lot — and it’s rising
Frank Wolak, president and CEO of the Fuel Cell & Hydrogen Energy Association, said the ferry is meaningful because it’s hard to reduce greenhouse gas emissions from vessels.
“The real value of this is when you multiply out by the number of ferries operating around the world,” he said. “There’s great potential here. This is how you can start chipping away at the carbon intensity of your ports.”
Backers also hope hydrogen fuel cells could eventually power container ships.
The International Maritime Organization, which regulates commercial shipping, wants to halve its greenhouse gas releases by midcentury.
As fossil fuel emissions continue warming Earth’s atmosphere, the Biden administration is turning to hydrogen as an energy source for vehicles, manufacturing and generating electricity. It has been offering $8 billion to entice the nation’s industries, engineers and planners to figure out how to produce and deliver clean hydrogen.
Environmental groups say hydrogen presents its own pollution and climate risks.
For now, the hydrogen that is produced globally each year, mainly for refineries and fertilizer manufacturing, is made using natural gas. That process warms the planet rather than saving it. Indeed, a new study by researchers from Cornell and Stanford universities found that most hydrogen production emits carbon dioxide, which means that hydrogen-fueled transportation cannot yet be considered clean energy
Yet proponents of hydrogen-powered transportation say that in the long run, hydrogen production is destined to become more environmentally safe. They envision a growing use of electricity from wind and solar energy, which can separate hydrogen and oxygen in water. As such renewable forms of energy gain broader use, hydrogen production should become a cleaner and less expensive process.
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Hyundai Ioniq 9: Everything We Know
Following the success of the similar Kia EV9, Hyundai’s electric Ioniq 9 will be a large, three-row SUV.
Hyundai won consecutive World Car of the Year awards with its Ioniq 5 and Ioniq 6 EVs. The third Ioniq vehicle, previewed by the Ioniq Seven concept, will be a large, family-hauling electric crossover. Call it Hyundai’s version of the Kia EV9 or the electric version of the Hyundai Palisade.
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The Korean brand has not confirmed a name for this new SUV yet. It simply refers to it as the 2025 Hyundai Ioniq 3-row SUV (EV). However, the Ioniq Seven concept naturally led everyone to believe this SUV would be called the Ioniq 7. Later on, Automotive News reported that Hyundai was changing the name of the production vehicle to the Ioniq 9. That name would fit the SUV’s flagship status and provide space in the nomenclature for smaller Ioniq 7 and Ioniq 8 vehicles.
What will the Hyundai Ioniq 9 look like?
The Ioniq 9 will be a large, three-row SUV. The Ioniq Seven concept had a 126-inch wheelbase that was four inches longer than the production Kia EV9. However, the production of Ioniq 9 may be less differentiated from its Kia counterpart. Like the Palisade, the Ioniq 9 should skew toward a sleek, upscale look compared to the Kia EV9, which is more adventurous and boxy. The long wheelbase and flat floor should allow for a spacious interior.
Hyundai’s Ioniq Seven concept exhibited radical features like rear-hinged coach doors, a lounge-like interior with an L-shaped sofa and a full-glass tailgate. However, Ioniq 9 spy shots show a far more conventional SUV with none of those features. Some elements from the concept, like Hyundai’s parametric pixel lighting and an emphasis on sustainable materials, should make it to production.
What will power the Hyundai Ioniq 9?
Like its fellow Ioniq vehicles, the Ioniq 9 should use Hyundai’s E-GMP architecture. Hyundai still needs to confirm the powertrain details for the Ioniq 9. The path of least resistance would be for Hyundai to use the same electric motors that Kia used for the EV9.
The EV9 has a base RWD version with 215 horsepower and a 76.1 kWh battery pack, a longer-range RWD version with 201 hp and a 99.8 kWh pack, and an AWD model with 379 hp, 443 lb-ft of torque and a 99.8 kWh pack. The Ioniq 9 could bring over that exact lineup.
Kia estimates a top range of 304 miles for the EV9, which is a good bet for where the Ioniq 9 will end up. As in Hyundai’s other EVs, the E-GMP platform’s 800V architecture should provide some of the fastest charging tech on the road. Expect the Ioniq 9 to deliver a 10-80% charging time similar to the EV9’s 24 minutes.
How much will the Hyundai Ioniq 9 cost?
Hyundai has yet to reveal pricing for the Ioniq 9. It should be dramatically more expensive than the combustion Palisade, which ranges from about $36,000 to $54,000. Pricing may be similar to the Kia EV9, which starts at $54,900 and tops out at $73,900. In top spec, the Ioniq 9 should beat the Ioniq 5 N to be Hyundai’s most expensive vehicle.
When will the Hyundai Ioniq 9 arrive?
Hyundai has not yet confirmed an exact launch date for the Ioniq 9, but the automaker does suggest it will have a world premiere later in 2024. This is later than initially expected.
Korean publication Newsis, citing industry sources, is reporting that the production version of the Ioniq 9 may debut at the Los Angeles Auto Show (Nov 22-Dec 1) later this year.
There may be a lag before the vehicle hits U.S. dealers. Hyundai’s new EV Metaplant in Georgia (where the Ioniq 9 is likely to be built) breaks ground in late 2024. Automotive News projects that the Ioniq 9 will arrive in mid-2025, probably for the 2026 model year.
https://insideevs.com/reviews/720330/hyundai-ioniq-7-9-specs-range-price/
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