NGS’ NG/LNG SNAPSHOT – August 16-31, 2021
City Gas Distribution & Auto LPG
CGD cos stick with expansion projects
Mumbai-based Mahanagar Gas Ltd (MGL) is planning to spend ₹800 crores this financial year, Gujarat-based Torrent Gas over ₹3,500 crore and Delhi-based Indraprastha Gas Ltd (IGL) will spend ₹1,200 crores on expanding their capacities.
The Petroleum and Natural Gas Regulatory Board has authorized Torrent to set up and operate CGD networks and provide CNG and piped natural gas (PNG) in 33 districts across seven states and a Union territory. Mahanagar Gas said a large majority of demand in Mumbai for CNG comes from taxis, private cars and the 350,000 autorickshaws that ply on city roads. The company said space to set up electric charging infrastructure is inadequate in Mumbai to support large-scale EV adoption at least for the next three years.
Kerala switching to CityGas; Kottayam, Pathanamthitta, Idukki join CGD network
Kottayam: The Petroleum and Natural Gas Regulatory Board (PNGRB) has decided to integrate 200 more cities across the country into CityGas Distribution (CGD) networks. This includes Kottayam, Pathanamthitta and Idukki districts. Previously,
11 districts of Kerala were included. With this, all districts in Kerala will be incorporated into this scheme. The advantage of CityGas (PNG-Piped Natural Gas) is that it provides feasible and safe fuel. This scheme has been implemented in 470 districts in the country so far. CityGas is permitted by marking a land territory for each district. One land territory includes up to three districts and has been allowed in 228 land territories at present. It was aimed to extend the benefits of the scheme to 53 percent of the country’s population. The distribution in the districts recently integrated into the scheme is being done through tender procedures.
MNGL to extend piped gas to 15 areas in Pune, Pimpri Chinchwad
Pune: The Maharashtra Natural Gas Limited (MNGL), which supplies piped natural gas (PNG) to households, has identified more than 15 areas in Pune and Pimpri Chinchwad, where it plans to extend its PNG services in the next few months.
The MNGL has so far provided over 3.5 lakh connections of piped gas in the Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) limits. The new areas on the radar include Dhayri, Jambhulwadi, Ambegaon and older parts like Dhanori, Vishrantwadi etc. In the PCMC limits, piped gas will be made available in Ravet, parts of Chinchwad, Moshi, Chikhli and Vishalnagar.
PNGRB plans to offer 65 city gas distribution licenses in the 11th bidding round
The Petroleum and Natural Gas Regulatory Board (PNGRB) plans to offer 65 city gas distribution licenses in the next bidding round. Bids will soon be invited for the 65 Geographical Areas (GA) identified for the eleventh bidding round, the downstream regulator said in a public notice.
The exact dates for the bidding will be announced shortly. These GA are spread over 20 states and union territories. Tamil Nadu will have nine geographical areas on offer, the highest of any state in the eleventh round. Eight GA will be offered in each Maharashtra and Chhattisgarh. In the tenth round, PNGRB had given away city gas distribution licenses for 50 Geographical Areas. At present, there are 228 Geographical Areas authorized by PNGRB in 27 States and union territories covering about 53% of the country’s geography and 70% of the population.
PNGRB plans to offer 65 city gas distribution licenses in the 11th bidding round
The Petroleum and Natural Gas Regulatory Board (PNGRB) plans to offer 65 city gas distribution licenses in the next bidding round. Bids will soon be invited for the 65 Geographical Areas (GA) identified for the eleventh bidding round,
the downstream regulator said in a public notice. The exact dates for the bidding will be announced shortly. These GA are spread over 20 states and union territories. Tamil Nadu will have nine geographical areas on offer, the highest of any state in the eleventh round. Eight GA will be offered in each Maharashtra and Chhattisgarh. In the tenth round, PNGRB had given away city gas distribution licenses for 50 Geographical Areas. At present, there are 228 Geographical Areas authorized by PNGRB in 27 States and union territories covering about 53% of the country’s geography and 70% of the population.
Gas/ Pipelines/ Company News
Air quality commission asks U.P., Haryana, Rajasthan to shift NCR industries to piped natural gas
The Commission for Air Quality Management on Thursday, August 12, directed Uttar Pradesh, Haryana and Rajasthan to prepare a time-bound action plan to shift all identified industries units in the National Capital Region (NCR) to piped natural gas (PNG).
The commission has asked these States to audit and inspect the industries, which are already connected to PNG supply, and ensure that these units are not using any other polluting fuels like coal etc.
It has also asked the three States to develop an action plan to supply PNG in the industrial areas in the NCR where infrastructure and gas supply are not available. In the NCR districts of Haryana, 408 of the 1,469 identified industrial units have already shifted to PNG, whereas in U.P., 1,161 of the 2,273 such units switched over to PNG. However, only 124 of the 436 such units in Rajasthan have made the shift so far. The States have also been directed to maintain strict vigil to prevent the use of unapproved fuels in the NCR, and take stringent action against defaulting units. The three States have been given time till August 31 to submit a compliance report to the commission.
Gas pipeline project set to create investment opportunities in Rajasthan
The Mehsana-Bathinda natural gas pipeline project passing through Rajasthan is set to create new investment opportunities in the State and make existing industries competitive.
The work has been initiated for developing new industrial areas to promote sector-specific clusters near the gas pipeline route.
Rajasthan State Industrial Development and Investment Corporation (RIICO) Managing Director Ashutosh A.T. Pednekar said here on Saturday that the pipeline infrastructure would create tremendous investment opportunities in the ceramic and glass, food processing, mineral, textile and pharmaceutical sectors.
Of the 1,381 km-long gas pipeline, 873 km pass through 11 districts of the State, which are rich in various raw materials and agricultural products.
LNG Development and Shipping
Gail India issues tender to buy and sell LNG for September and March
Gail (India) has issued a tender seeking to buy a liquefied natural gas (LNG) cargo for delivery into India and offering a cargo for loading from the United States, two industry sources said on Wednesday, August 18, 2021.
It is seeking the cargo for September delivery into Dahej, India and has offered a cargo for loading from the Cove Point plant in the United States during March 4-6. The Indian importer has 20-year deals to buy 5.8 million tonnes a year of U.S. LNG, split between Dominion Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana.
India’s surging domestic gas output to dent LNG, import but not for long: Wood Mackenzie
New Delhi: Helped by new output from KG-D6 fields of Reliance-BP, India’s domestic gas production, which had been falling for more than a decade because of declining output from legacy fields, now looks in rude health, according to energy consultancy Wood Mackenzie.
Reliance Industries Ltd and its partner BP Plc of UK in December last year started putting the second wave of gas discoveries in eastern offshore KG-D6 block to production with R-Series started flowing gas. In April they started output from the Satellite Cluster fields. This helped raise India’s gas production by almost 20 per cent, oil ministry data showed.
This proved to be good news for LNG. As domestic production has stalled, LNG imports have filled the gap. In 2020, LNG demand increased by around 14 per cent to reach 25.7 million tonnes, with India climbing the ranks of the world’s most important LNG markets.
Natural Gas / Transnational Pipelines/ Others
Workforce grows on the Canadian pipeline project
The workforce on the Coastal GasLink project in BC, the 670-km pipeline that will deliver natural gas to the Anglo-Dutch Shell-led LNG Canada terminal at Kitimat, grew to more than 4,500 at the end of July, CGL said in an August 20, 2021 construction update.
With its workforce peaking, CGL has opened the last of its 12 accommodation centres and is ramping up its community workforce advisor programme, which is designed to ensure smooth relations between pipeline workers and the local communities near where they work. Construction is nearly a third complete and all stages of construction are now underway, CGL said. Overall progress – including engineering, procurement and construction activities – is nearly 48% complete.
AUSTRALIA: New Guinea resumes talks with Exxon on gas field agreement
The government of Papua New Guinea and US oil giant Exxon Mobil Corp plan to resume talks on the P’nyang natural gas project, nearly two years after negotiations broke down, Oil Search Ltd, a partner on the project, said on monday, August 23, 2021.
In November 2019, talks linked to a $ 13 billion expansion of the country’s liquefied natural gas (LNG) exports fell apart with the government saying Exxon was unwilling to negotiate on the country’s terms.
The government has lobbied for better returns for the impoverished country than those achieved in the original PNG LNG deal in 2008. Its stake in PNG LNG is considered to be the flagship of Oil Search, which has accepted an offer to acquire all shares from Santos Ltd worth approximately A $ 8 billion (US $ 6 billion) in a deal that would create a top -20 global oil and gas company. to know more.
USA: BP and Chevron buy into renewable natural gas
UK supermajor BP has announced a 15-year agreement with Maryland-based CleanBay Renewables to purchase renewable natural gas (RNG) for the US transportation sector, specifically the California market.
While several RNG ventures using agricultural feedstocks use cow manure from dairy farms, CleanBay’s RNG is processed from poultry litter, including manure, feathers, and bedding.
The poultry litter is mixed with water in an anaerobic digester, which uses micro-organisms to break down the matter and produce biogas. The biogas includes methane and can be processed into RNG to fuel vehicles. Renewable natural gas is a growing energy source in the energy transition — Chevron also extended an RNG partnership on Tuesday — since the feedstock, often cow manure, would have released significant greenhouse gas emissions into the atmosphere if it was not used in the anaerobic process.
In this agreement, BP will buy the RNG from CleanBay and sell the fuel to its customers, initially in California. Chevron is also working with California BioEnergy to produce RNG from dairy farms, announcing its first production last year.
JERA starting H2 demonstration program at LNG power plant in Japan
JERA has gained the funding to start a hydrogen demonstration project at a liquefied natural gas (LNG) thermal power plant beginning this year. JERA’s grant application was accepted under the nation’s New Energy and
Industrial Technology Development Organization’s Green Innovation Fund program. Hydrogen does not emit carbon when burned, so is being considered as a next-generation fuel for thermal power stations. Many plant equipment firms are exploring the hybrid and potential 100-percent use of H2 in natural gas turbines.
JERA plans to reduce CO2 emissions in its operations by gradually increasing the utilization rates for hydrogen and ammonia. Based on the results of a feasibility study to be conducted early in the Project period, JERA aims to construct hydrogen supply facilities and other related facilities at its LNG thermal power plant, to install combustors capable of co-firing hydrogen and LNG in its gas turbines, and to switch approximately 30% of the LNG used for electricity generation (by volume, equivalent to approximately 10% of heating value) to hydrogen by fiscal 2025.
Natural Gas / LNG Utilization
LNG exports to China reach record
Australian exports of liquefied natural gas to China defied trade tensions between the two nations to reach a record in 2020-21, with China for the first time overtaking LNG as Australia’s largest customer. Shipments to China jumped 7.3% to 30.7 million tonnes
in the year to June 30, despite strong competition, according to a monthly report from consultancy EnergyQuest, citing import statistics from major buyers.
The trade with China contributed to a record 72.4 million tonnes of LNG exports by Australia to North Asia in 2020-21. It was worth about $15.6 billion, out of a total $38.9 billion trade with the region. The regional total was down from $49.9 billion in 2019-20 due to a drop in oil prices, which most of the sales are priced against, the firm noted.
Out of the four Australian LNG ventures that have long-term sales contracts with China, three – North West Shelf venture, Shell’s QCLNG and Origin Energy’s Australia Pacific LNG – supplied more than the contracted volume. Also, every other Australian LNG project shipped cargoes to Chinese buyers, even those without specific Chinese contracts.
Technological Development for Cleaner and Greener Environment Hydrogen & Bio-Methane
U.K. Launches Ambitious Hydrogen Strategy
The United Kingdom has launched its much-anticipated hydrogen strategy, a comprehensive national plan designed to unlock $5.5 billion in investment by 2030. After setting the pace in offshore wind, the U.K. has turned its focus on low carbon hydrogen with an ambition to install
five gigawatts of production capacity over the next decade – including at least 1.8 gigawatts of blue hydrogen, produced by capturing and storing the CO2 from conventional natural gas-to-H2 production. The new capacity will power transport and businesses, particularly heavy industry, and will be blended with natural gas to provide heating energy to households.
Along with kicking off public consultation on the ideal hydrogen business model, the U.K. government is consulting on the design of a $330 million net-zero hydrogen fund that aims at supporting the commercial deployment of new low carbon hydrogen production plants across the country. The initial response from the UK’s renewables industry was mixed, especially given the plan’s inclusion of controversial blue hydrogen.
DENMARK: Maersk makes $1.4 billion green bet on methanol fueled ships
The world’s largest container-shipping line is making a $1.4 billion investment in a greener fleet. A.P. Moller – Maersk A/S has ordered eight new vessels, each costing $175 million, that can be propelled by cleanly made methanol instead of an oil-based fuel.
They’re set for delivery from 2024. Shipping, the backbone of global trade, accounts for almost 3% of man-made carbon dioxide emissions. The level has been rising in recent years, according to data from the International Maritime Organization.
Last year, IMO rules designed to curb air pollution by limiting the sulfur content of marine fuel came into force. Maersk isn’t the only shipper starting to make the transition. Oil tanker owner Euronav NV has ordered new ships capable of one day running on ammonia or liquefied natural gas.
They’ll replace older ships in the company’s fleet, saving about one million tons of carbon dioxide a year. Maersk has the option for four more of the ships to be delivered in 2025. The GMF is a founding partner of the Getting to Zero Coalition — a group of more than 150 companies within the maritime, energy, infrastructure and finance sectors that includes Maersk
Retrofit fuel cell bus demonstrator for UK’s first hydrogen transport hub
As part of its mission to support the decarbonization of the global transport and energy sectors, the British company Ricardo has announced that it has received Government funding to create a retrofit hydrogen fuel cell bus demonstrator for the UK’s first hydrogen transport hub in the north-east of England.
The UK Government launched the Tees Valley Hydrogen Hub, and initiated the Hydrogen Transport Hub Demonstration competition to showcase real-world hydrogen transport technology solutions. Ricardo submitted a bid with Stagecoach, one of the UK’s main public transport operators, to demonstrate a retrofit hydrogen fuel cell bus. The Department for Transport named the Ricardo and Stagecoach bid as one of the competition winners and has awarded funding to build a one-off vehicle which will be available for demonstration in the Tees Valley Hydrogen Hub from February 2022.
Ricardo will develop a scalable, modular solution, enabling it to be installed, with minimal adaption, to multiple single and double decker platforms. The modular concept may also be saleable as a ‘new fuel cell’ module to coach builders across the European Union enabling them to develop new fuel cell buses by taking a rolling chassis and applying their coach build body alongside the fuel cell module solution.